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Treasury Mandate: Electronic Pay http://www.dfas.mil/retiredmilitary/newsevents/newsletter/treasurymandateeft.html[12/25/2013 5:19:40 AM] Customer Service 800-321-1080 M-F, 8 a.m. to 5 p.m. ET AskDFAS Forms Frequently Asked Questions News and Events About R&A Pay Plan for Retirement Apply for Retirement Manage Your Retirement Disability Entitlements Provide for Loved Ones Survivors and Beneficiaries DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Treasury Mandate: Electronic Pay Print Paper checks to end The Department of the Treasury has announced that all payments from the federal government must be made electronically and not by paper check beginning March 1, 2013. This means most military retirees and annuitants receiving paper checks will be required to sign up for direct deposit. With direct deposit, DFAS sends your payment straight to your bank account. Direct deposit gives you immediate access to your money on pay day, and it eliminates the risk of lost or stolen checks, forged signatures and identity theft. Over 99 percent of military retirees and over 96 percent of annuitants already receive their payments through direct deposit. If you’re one of the few still receiving a check in the mail, we’ll send you a notice in the coming months. But you can get ahead of the rush by setting up direct deposit now. How to enroll There are three ways to start direct deposit. Before you enroll, you’ll need to gather information including your financial institution’s routing transit number and account number. Then do one of the following: Send a signed Fast Start Direct Deposit Form to Defense Finance and Accounting Service, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130; Use your myPay account to set up a direct deposit to your checking or savings account; Or call the DFAS Retired and Annuitant Pay Customer Care Center at 800-321-1080. It can take 30 to 60 days from the day we receive your enrollment for direct deposit to start. If after enrolling you receive a paper check, please cash or deposit it as you normally would. We’ll send you a notification when we process your enrollment. There are many advantages to eliminating paper checks. No more trips to the bank to deposit your check, no risk of lost or stolen mail, no waiting for misrouted or delayed mail, and your money is available to you the day it is due. It also will save the American taxpayers about $120 million every year. More Information . Back to the December Newsletter Page updated September 12, 2012 FOIA and Privacy Act Legislative Affairs Site Map Blue Book Web Policies USA.gov Defense Sector CIP EEO/No Fear Act Accessibility/Section 508 About DFAS Careers Customer Service askDFAS DFAS Home Military Members Retired Military & Annuitants Civilian Employees Contractors & Vendors

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Page 1: Treasury Mandate: Electronic Paymilitary-veteran.com/articles/june-2013.pdf · 2013-12-25 · Use your myPay account to set up a direct deposit to your checking or savings account;

Treasury Mandate: Electronic Pay

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/treasurymandateeft.html[12/25/2013 5:19:40 AM]

Customer Service

800-321-1080 M-F, 8 a.m. to 5 p.m. ET

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Treasury Mandate: Electronic Pay Print

Paper checks to end

The Department of the Treasury has announced that all payments from the federal government must be made electronically and not by paper check beginning March 1, 2013. This means most military retirees and annuitants receiving paper checks will be required to sign up for direct deposit.

With direct deposit, DFAS sends your payment straight to your bank account. Direct deposit gives you immediate access to your money on pay day, and it eliminates the risk of lost or stolen checks, forged signatures and identity theft.

Over 99 percent of military retirees and over 96 percent of annuitants already receive their payments through direct deposit. If you’re one of the few still receiving a check in the mail, we’ll send you a notice in the coming months. But you can get ahead of the rush by setting up direct deposit now.

How to enroll

There are three ways to start direct deposit. Before you enroll, you’ll need to gather information including your financial institution’s routing transit number and account number. Then do one of the following:

Send a signed Fast Start Direct Deposit Form to Defense Finance and Accounting Service, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130;Use your myPay account to set up a direct deposit to your checking or savings account; Or call the DFAS Retired and Annuitant Pay Customer Care Center at 800-321-1080.

It can take 30 to 60 days from the day we receive your enrollment for direct deposit to start. If after enrolling you receive a paper check, please cash or deposit it as you normally would. We’ll send you a notification when we process your enrollment.

There are many advantages to eliminating paper checks. No more trips to the bank to deposit your check, no risk of lost or stolen mail, no waiting for misrouted or delayed mail, and your money is available to you the day it is due. It also will save the American taxpayers about $120 million every year.

More Information.

Back to the December Newsletter

Page updated September 12, 2012

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Page 2: Treasury Mandate: Electronic Paymilitary-veteran.com/articles/june-2013.pdf · 2013-12-25 · Use your myPay account to set up a direct deposit to your checking or savings account;

myPay Update more sec

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/mypayupdate.html[12/25/2013 5:21:11 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter myPay Update more sec

myPay Update: More Security, More Features

The key to effective day-to-day management of your retirement pay is creating and maintaining a myPay account. myPay is your most important tool for managing your pay. The email address you enter into myPay will also become our primary way of staying in touch with you and keeping you current. For retirees and annuitants, there is nothing more important than creating, using and maintaining the security of your myPay account. On May 11, myPay updated many of its features. The release both greatly enhanced the overall security of the system and made more self-serve options available to retired members. You are now able to access a wider range of historical information, designate and manage your AOP beneficiaries, and stop or change non-EFT allotments directly on myPay. However, this update will offer us all some challenges. As part of the effort to enhance security levels and meet DoD cyber security rules, requirements for a valid password became more demanding. You will have to create longer passwords that use a wider variety of characters and change your passwords more frequently.

Updated June 24, 2013

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Mng Passw on myPay

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/mngyrpassw.html[12/25/2013 5:21:29 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Mng Passw on myPay

Managing Your Passwords on myPay

New and more stringent password requirements may seem bothersome to you, but in a world of identity theft and online criminal threats, it is the password that safeguards your money, your identity and your well-being. With the Spring 2013 release, myPay will be updating its system password requirements to come in line with DoD security rules. This means all users who access myPay with their login ID and password must create a new password that is at least 15 characters long, and contains a mixture of UPPER CASE letters, lower case letters, numerals and special characters. Consult our myPay minisite for up-to-date information on exact password requirements. http://www.dfas.mil/mypayinfo.html

All myPay users have been placed in groups. When your group is due to upgrade passwords, you will be guided through the process before you can access your pay account. It will take four months before all users have created their initial upgraded passwords. Once your password is upgraded, it will be good for 60 days, at which time you will be required to change it.When you update your password after 60 days you must change at least four characters from your previous password. Your updated password cannot be one of your last 10 passwords. About 10 days before your password expires, you will receive an email alert advising you to update your password. Please make sure your email address recorded on your myPay profile is current to ensure you receive these notices. Make sure you’re ready to create your new password! Check out this video on creating strong passwords! http://www.youtube.com/watch?v=lTvElkejKTs&list=UU3Q9o-0i6vculmTHZggyVPg&index=5

Updated June 24, 2013

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Upd Passw on myPay

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/updtyrpassw.html[12/25/2013 5:21:47 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Upd Passw on myPay

Updating Your Password on myPay

Choosing to use the on-screen keyboard can make it easier to create your new password. The on-screen keyboard presents the only characters that can be used in creating a password. It also displays for you which letter case you are using and you can change from upper to lower case easily by selecting the green button.

Click here to see the screen shot of the myPay password screen and the on-screen keyboard. Some members provide authorization for a trusted family member, friend or associate to access their pay information without the ability to make changes. Individuals who have been given such limited access rights are called “Limited Access Users.” Limited Access Users will be required to change their password every 60 days also. The same rules apply to the limited access password as to a member’s primary access password. Like everyone else, Limited Access Users will be prompted by screen displays when the password change is necessary. Check out the myPay Spring Release mini site to learn more. http://www.dfas.mil/mypayinfo.html

Updated June 24, 2013

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Annual Audit Ret Acct

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/performannualaudret.html[12/25/2013 5:21:58 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Annual Audit Ret Acct

Play it Safe: Perform an Annual Audit of Your Retirement Account

You’d notice if your banking information was wrong, wouldn’t you? Probably, but there’s a lot of other important information to keep updated to make sure you’re getting all the retired pay you deserve, so we can get in touch with you if there’s a problem on your account. Don’t let anything slip through the cracks! Here’s a list of things to check at least once a year. 1. Update your address You might be surprised to learn that we get a lot of returned mail. If you’ve moved and haven’t told us, we won’t know how to reach you. From an audit of your account to a returned payment, lots of things come up that we need to contact our members about. Make sure we have a way of reaching you that is current and correct! Log in to your myPay account and view your correspondence address as part of your annual account check-up. For more ways to update your contact information, consult our website at http://www.dfas.mil/retiredmilitary/manage/changeofaddress.html 2. Update your email address Make sure we have an email address on file for you and that it is current. Email is our easiest and fastest way to communicate with our members. If we have your email address on file, you will hear news faster and get more details when it arrives. So, go paperless, and stay in the know! Take a minute right now and check to make sure your addresses are current. At the bottom of your myPay account menu, select “Email Address” to view the email addresses you have on file with us. Make sure you indicate the primary email address you want us to use, and check the box to indicate if the address is still valid. Delete any old email addresses you no longer use. 3. Check your state and federal income tax withholding If your income changes or if you move to another state, you might want to look at any federal or state income tax withholding information we have in your account. Don’t wait until April 15 to discover we’ve been deducting taxes for a state you no longer have to file in!

Note: Any deductions of state income tax will have to be refunded by that state tax agency. DFAS is unable to refund state taxes already paid. You can can verify and update your tax withholding information yourself in myPay. Click on your Federal Withholding to see if your marital status and number of exemptions are correct. You can use the withholding calculator to help you determine what number of exemptions to choose. Then click on your State Withholding to make sure both the state and the amount are what you want. Want to check your withholding, but don’t have a myPay account? Check out our instructions on how to create your account now! http://www.dfas.mil/retiredmilitary.html 4. Review your allotments Review your allotments at least once a year. Check each allotment and your allotment amounts. Make sure each allotment is current and the amount is correct. If you need to stop, start, or change an allotment, see our instructions in this issue on how to update allotments using myPay. http://www.dfas.mil/retiredmilitary/manage/allotments.html Plus, if you are stopping or changing an allotment, check out our article on timing for EFT changes in this issue. http://www.dfas.mil/retiredmilitary/manage/changeofaddress/whentoupdateyouraccount.html

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Annual Audit Ret Acct

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/performannualaudret.html[12/25/2013 5:21:58 AM]

Finally, please keep in mind that not all allotments are listed in myPay. Some common allotments that are not shown on myPay include Delta Dental, Tricare and NSGLI, all of which are listed in your latest eRAS. As part of your yearly audit you should review your monthly eRAS and verify any allotments that you can’t change on myPay by contacting that company or organization directly. 5. Have there been changes in your family? When you get married, lose a spouse or have children, the change can affect a lot on your account. From federal income tax withholding to Survivor Benefit Plan costs, the amount of retired pay you receive each month can change. If there have been any changes in your family, please send us a copy of the official documentation (marriage license, divorce decree, death certificate or birth certificate), as well as a request for how you want us to update your account and we’ll get things the way they need to be. Always notify DFAS as soon as possible about a major life change. You can fax your documents to 1-800-469-6559 or mail them to DFAS, PO Box 7130, London, KY 40742-7130. Always make sure your Social Security Number is clearly visible on the document so we will know whose account to update. 6. Check your beneficiary designations Lastly, who have you chosen as a beneficiary for any arrears of retired pay when you die? Make sure you’re still satisfied with your designation and break out your address book to check that their addresses are all up to date, too. You can check this information by clicking on the Beneficiary for Arrears link in myPay. Now you can even make changes to your designations and update their address information through myPay. If you want specific instructions, click here: for an article in this issue. So pick a date! It doesn’t matter if it’s your retirement date, birthday or the first of the year. Set a yearly reminder to look over your account to make sure you’re playing it safe!

Updated June 24, 2013

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Mng Allot in myPay

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/mngallot.html[12/25/2013 5:22:10 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Mng Allot in myPay

Managing Your Allotments Using myPay, Stop or Change Non-EFT Allotments

Retirees have always been able to manage allotments that can be paid through electronic fund transfer (EFT) on myPay. The myPay Spring 2013Release allows retirees to view most of their allotments, including those for mortgage payments, insurance, and charitable contributions that are not paid through EFT.

There are still a few types of insurance allotments you cannot see, stop, start or change on myPay. For information on these allotments, please refer to our webpabe at http://www.dfas.mil/retiredmilitary/manage/allotments/exceptions.html For all other allotments, when you view your allotments on myPay, only the allotments you can make changes to will feature Stop or Change buttons. Finished paying your mortgage? Stop it. Did your insurance premiums change? Update the allotment with the new amount.

Access your myPay account and select “Allotments.” The myPay allotment screen will guide you through the process.

For Home Loan and Navy Mutual Aid Service allotments, you can STOP OR CHANGE money amounts. You can STOP OR CHANGE money amounts for certain Charity and Insurance Allotments. For those, a Stop button and a Change button will be displayed. To start Home Loan, Navy Mutual Aid Service, Charity or Insurance Allotments, please see the charity or institution where you desire to start an allotment.

For EFT Allotments, you may START, CHANGE an allotment amount or STOP an existing allotment. Check out the myPay Spring Release mini site to learn more

http://www.dfas.mil/mypayinfo.html

Updated June 24, 2013

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Mng AOP Beneficiary

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/mngaopbenfy.html[12/25/2013 5:22:29 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Mng AOP Beneficiary

Managing Your AOP Beneficiary Using myPay

When a retiree dies, we send any unpaid retired pay to the beneficiaries on record. Retirees frequently forget who their beneficiaries of record are, and occasionally need to update or change a beneficiary. Doing this used to require sending forms via mail, then waiting for the account to be updated.

Now myPay offers retirees the option to designate Arrears of Pay beneficiaries online. Beneficiary designations can be updated without the hassle of forms, envelopes, or waiting. And members can change beneficiaries whenever they like.

Members can still submit a DD Form 2894, but will have to allow for mailing and processing time to elapse before their changes can take effect. The DD Form 2894 must be used to designate more than five beneficiaries.

Here are the directions for a retiree to update an arrears of pay beneficiary on myPay.After logging into myPay:

Select ”Beneficiary for Arrears”The current beneficiary designation will displayClick on “Designate Beneficiaries”

Warning: Any transaction created will overwrite your existing elections

Enter beneficiary informationClick “Continue” after address fields are populatedClick on “Designate More Beneficiaries” to add up to five beneficiariesKeep in mind, however, that designating multiple beneficiaries may delay payment of the benefit if all beneficiary information is not current at the time of your deathWhen you have completed the designation of your beneficiaries click on “Confirm Beneficiaries”Review your changes, if correct select “Yes” Warning: Any transaction created will overwrite you existing electionsSave or Print your new beneficiary designations

Update an arrears of pay beneficiary the screenshot instructions.

To learn more, check out the myPay Spring Release mini site.http://www.dfas.mil/mypayinfo.html

Updated June 24, 2013

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Tax Info on myPay

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/articletaxinfo.html[12/25/2013 5:22:38 AM]

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Article: Tax Information and myPay

Before, retirees could get their 1099R from myPay for only the latest tax year. They could also contact DFAS or work through their RSO for a previous year’s 1099R. Now retirees have the ability to get tax information from previous years on their own.Here are the directions for a retiree to access their 1099Rs. After logging into myPay:

Go to the Taxes sectionClick on Tax Statement 1099RThe current year’s 1099R will be displayedTo view a prior year, click the down arrow next to “View other 1099R”Highlight the desired year and click “Go”.

The screen shot instructions of how to get tax information from previous years. To learn more, check out the myPay Spring Release mini site.http://www.dfas.mil/mypayinfo.html

Updated June 24, 2013

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Benfy Should Know

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/benfyshknow.html[12/25/2013 5:22:48 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Benfy Should Know

Prepare Your Loved Ones: What a Beneficiary Should Know In Advance of Your Passing

Sometimes the most difficult conversations to have are the most important, like helping your loved ones be prepared for when you die. Talking to your family about this topic beforehand is a way to show that you care, and it will help to ease the financial burdens they may face.

Military retirees can have beneficiaries for their arrears of pay (AOP). This article is intended to help you prepare your AOP beneficiary to file a claim when the time comes. First, make sure you understand what an Arrears of Pay beneficiary is and the nature of the benefit to which they are entitled. Find more information on this benefit here. http://www.dfas.mil/retiredmilitary/provide/aop.html Second, tell your beneficiaries who they are! Hopefully, you’ve designated your beneficiaries for any arrears of pay that may be due. When no beneficiary is named, the payment is made to the highest person in what is known as the "Order of Precedence." The Order or Precedence is the federally mandated order of inheritance that applies to legacies without a designated beneficiary. Find more information on “Order of Precedence” here.http://www.dfas.mil/retiredmilitary/provide/aop/aop-order.html Please keep in mind that it can take many months to locate your survivors, identify who comes highest in the Order of Precedence and then make the payment. That's why having a current, correct and complete beneficiary designation on file is important to prevent delays or errors in your arrears payments. Designating a sole beneficiary in your will does not automatically make that person your AOP beneficiary. AOP determination is based exclusively on the AOP beneficiary election in your retired pay account. To review your current arrears of pay beneficiaries and to make changes, visit the Beneficiaries for Arrears link once you’ve signed in to your myPay account. For more detailed instructions on designating an Arrears of Pay beneficiary on myPay, review our article in this issue on this subject. Third, let your beneficiary know that sometimes money that has already been deposited into your checking account needs to be returned to us. Military retired pay is only payable for as long as you are alive. Entitlement to your military retirement ends when you die. Most banks will automatically deduct any overpaid funds without warning, which can be troublesome especially if you share a joint account. Fourth, tell your beneficiaries what documents they will need to send in to make their claim. One copy of the death certificate that includes the manner of death needs to be sent to us. Also, each beneficiary should complete a Claim for Unpaid Compensation (SF 1174). It’s a great idea to go over this claim form with them to make sure they will have all of the information they need to fill it out. If you want a more detailed explanation of this process, check out the instructions on our website http://www.dfas.mil/retiredmilitary/survivors/Retiree-death.html Fifth, let your beneficiaries know that sometimes there is no money due. Each situation is different. It just depends how up to date the account was kept. You can make sure your account is in good standing by performing a yearly audit. Sixth, when an arrears payment is made, there is a statement on the check that reads, “Retired Pay Payable only during life of Payee.” Please do not let this statement alarm your beneficiaries. As long as the beneficiary’s name is accurate on the check, the check can be cashed. We want to take the best care of your loved ones when you die, you can help us by having a conversation with them to prepare them so they can know what to expect. We know talking about it might be difficult, but hopefully this checklist gives you an idea of the things to say. Don’t put it off. Have a conversation about it with your loved ones today. Look for an article in our next issue giving you tips for preparing your SBP beneficiary to file a claim.

Updated June 24, 2013

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Benfy Should Know

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/benfyshknow.html[12/25/2013 5:22:48 AM]

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Annuity Changes

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/annchanges.html[12/25/2013 5:22:57 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Annuity Changes

Annuity Changes

If you have elected to cover your spouse or loved ones under the Survivor Benefit Plan (SBP), you should be aware of recent change to the process for application for benefits. Effective April 1, 2013, all applications for annuities under the SBP plan will require a photocopy submission of the annuitant’s Social Security Card. If your designated beneficiary does not submit a Social Security card photocopy with the application, the annuity will still be established and the annuitant will be allotted 90 days to submit the photocopy to DFAS. If it is not received after 90 days, the account will be suspended and no further payments will be made until their card’s photocopy is received. It will apply to all annuities established after April 1, 2013, but will have no effect on annuitants in receipt of SBP payments prior to April 1, 2013. Military retirees should make the necessary preparations for their beneficiaries. See our article in this issue for more guidelines for preparing your beneficiaries for your death. Keep your files up to date so both you and your beneficiary can be prepared for unexpected events.

Updated June 24, 2013

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EFT Requirement

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/eftreq.html[12/25/2013 5:23:08 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter EFT Requirement

EFT Requirement

The Department of the Treasury announced all payments from the federal government are to be made electronically and not by paper check as of March 1, 2013.

More than 99 percent of military retirees and more than 96 percent of annuitants already receive payments through direct deposit.

There are three ways to start direct deposit. Before enrolling, the retiree or annuitant will need to gather information including their financial institution’s routing transit number and account number. Then do one of the following:

Send a signed Fast Start Direct Deposit Form to Defense Finance and Accounting Service, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130Use their myPay account to set up a direct deposit to their checking or savings accountOr call the DFAS Retired and Annuitant Pay Customer Care Center at 800-321-1080 (option 1)

If they choose to call or mail an enrollment form, members should keep in mind that it can take 30 to 60 days from the day we receive an enrollment form for direct deposit to start. If the retiree or annuitant receives a paper check after enrolling, they should cash or deposit it as they normally would.

We are also working to provide a debit card option for retirees and annuitants that may not be able to open bank accounts and still need paper checks. This is similar to the one the Department of Treasury is offering for the Department of Veterans Affairs and Social Security recipients.

Payment by EFT may be waived in rare instances for members who have a mental impairment, or who live in a remote location with no access to direct deposit, ATMs or stores that accept a debit or prepaid card. Members and annuitants may apply for a waiver once we have established procedures with the Treasury Department.

Details about the debit card option will be updated regularly on the DFAS website (http://www.dfas.mil/mandatoryeft.html).

Updated June 24, 2013

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SOS Service

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/sosservice.html[12/25/2013 5:23:17 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter SOS Service

SOS Service

The Survivor Outreach Services (SOS) is a “One Army” program that provides support to surviving family members of Soldiers who died on active duty, regardless of component or manner of death. SOS serves surviving family members of the Army, Army Reserve, Army National Guard, Army National Guard M-Day Soldiers, Troop Patrol Unit Army Reserve, Prisoners of War and Missing in Action (POW/MIA). Retiree survivors are welcome and can be connected to their local Retirement Services Officer (RSO) when appropriate. No one is turned away from SOS. Family members of other branches of service may use SOS to receive assistance in connecting to their service’s casualty assistance offices. The SOS has benefit coordinators, support coordinators and financial counselors. To find out more about Survivor Outreach Services:

www.sos.army.mil 1-855-707-2769

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Updated June 24, 2013

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Tips DD Changes

http://www.dfas.mil/retiredmilitary/newsevents/newsletter/tipsddchanges.html[12/25/2013 5:23:27 AM]

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DFAS Home Retired Military & Annuitants News and Events Retiree Newsletter Tips DD Changes

Tips for Direct Deposit Account Changes

To avoid a disruption of pay that might affect your quality of life, please follow the simple steps below when changing your direct deposit. The easiest and fastest way to change your direct is myPay. http://www.dfas.mil/retiredmilitary/newsevents/news/bankchanges.html

Please follow these two tips to avoid disruption of pay:

Please allow 5-7 days for your EFT information to update after you make your change via the myPay website.Do not close your old bank account until you’ve received funds in your new account.

Updated June 24, 2013

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