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Treasury mandates electronic pay by March 1, 2013
Posted 9/25/2012 Updated 9/25/2012
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9/25/2012 - CLEVELAND (AFRNS) -- 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, the Defense Finance and Accounting Service sends pay straight to a bank account. Direct deposit gives people immediate access to their money on pay day, and it eliminates the risk of lost or stolen checks, forged signatures and identity theft, said DFAS officials.
More than 99 percent of military retirees and 96 percent of annuitants already receive their payments through direct deposit. The few people still receiving a check in the mail, will receive a notice from DFAS in the coming months, but they can get ahead of the rush by setting up direct deposit now.
There are three ways to start direct deposit. Before enrolling, people 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 (http://www.fms.treas.gov/eft/2231.pdf) to Defense Finance and Accounting Service, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130; or Defense Finance and Accounting Service, U.S. Military Annuitant Pay, P.O. Box 7131, London, KY 40742-7131. Retirees and annuitants can fax forms to 800-469-6559 or 800-982-8459, respectively.
-- Use their myPay account to set up a direct deposit to a checking or savings account;
-- Call the DFAS Retired and Annuitant Pay Customer Care Center at 800-321-1080.
It can take 30 to 60 days from the day DFAS receives an enrollment request for direct deposit to start. If a paper check is received after enrolling, DFAS officials advises cashing or depositing the check as normal. DFAS will send a notification when it processes an enrollment.
DFAS officials believe there are many advantages to eliminating paper checks: No more trips to the bank to deposit a check; no risk of lost or stolen mail; no waiting for misrouted or delayed mail; and money is available the day it is paid. Using direct deposit also saves the American taxpayers about $120 million every year.
More information is available at www.dfas.mil/mandatoryeft.html. (Courtesy of DFAS) |
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