Military Advantage

Fed to Stop Issuing Paper Pay Checks


Source: Defense Accounting and Finance Service - Military members, military retirees and annuitants, and federal civilian employees receiving paper checks from the Defense Finance and Accounting Service will soon get their pay electronically to comply with new mandates from the U.S. Department of the Treasury. The Treasury Department has set March 1, 2013, as the date all federal government payments should be delivered by electronic funds transfer methods such as direct deposit. “The Treasury has estimated that the U.S. government spends about $130 million each year to print and mail paper checks,” said David McDermott, DFAS deputy director of operations. “DFAS alone spends $2 million that would otherwise be used by the military services and DoD agencies in support of our warfighters.” Among DFAS customers, that $2 million a year tab supports only one percent of everyone DFAS pays. “While we’ve always encouraged our customers to use direct deposit or some other form of EFT, federal law and the resulting Treasury rules are taking away the option to receive checks in the mail,” McDermott said. “Fortunately, setting up direct deposit is a very easy thing to do.” Customers with a myPay account can go to and enter their bank routing and account numbers. These direct deposit changes will be reflected in their pay records in about a week. Military retirees and annuitants without a myPay account can complete the Fast Start Direct Deposit form available at and send it to DFAS, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130. Former spouses of military retirees should complete a Direct Deposit Authorization (Form 1059) available at and mail it to DFAS, Garnishment Operations, P.O. Box 998002, Cleveland, OH 44199-8002 if they do not have a myPay account. Military members or civilian employees paid by DFAS should contact their servicing finance office, civilian pay Customer Service Representative (payroll liaison) or human resources office to start direct deposit if they’re unable to access myPay. Those needing additional assistance can call DFAS customer service at 1-800-321-1080 (for retirees and annuitants) or 1-888-332-7411 (for military and civilian employees). DFAS officials urge their military, retired, annuitant and civilian customers to take advantage of the benefits offered by direct deposit now before the March 1 deadline. These benefits include added security, quicker access to funds and the ability to spend time previously used to deposit paper checks for other home or leisure activities. The DFAS website has information on the agency’s efforts to comply with the Treasury’s mandate at This information will be updated as new details are available.

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