DFAS Speaks on Pay Issues

The Defense Finance and Accounting Service (DFAS) has finally issued some guidance on how the federal government’s budget situation could affect military pay issues.  The main page has a bit of information, but the really good stuff becomes available once you click through to the Frequently Asked Questions page.  Tidbits that jumped out as particularly important include:

Active and Reserve military members will be paid on time for pay earned prior to the expiration of the CRA (midnight April 8) — approximately half of their normal mid-month payment. Active duty military and on-duty reservists cannot be paid for duty performed after the CRA expired, until additional legislation is enacted. Once another CRA or an appropriations act is signed into law, normal disbursement of pay will resume for pay earned after employees return to work. Military members who perform duty during the shutdown will be entitled to retroactive payments.

For any time up to when the Continuing Resolution Act (CRA) expires, active duty and reservists completing duty will be paid. The current CRA expires at midnight on April 8. Active and Reserve military members will be paid on time for pay earned prior to the expiration of the CRA — approximately half of their normal mid-month payment .

There are several key components to this answer. First, our military men and women will be paid on time for duty performed prior to the expiration of the most recent CRA. Second, at this time, active duty military and on-duty reservists cannot be paid for duty performed after the CRA expires until additional appropriations legislation is enacted. Finally, once another CRA or an appropriations act is signed into law, normal disbursement of pay will resume for pay. Military members will be paid for duty performed during the shutdown.

Regarding allotments, DFAS has this very useful information:

Q1. Will DFAS still make scheduled allotment payments during the shutdown? Will DFAS notify recipients that no payments are being made because of the shutdown?

Military allotments and garnishment are released as part of the End of Month pay process. If a shutdown goes beyond End of Month processing, allotments and pay would be impacted by the lack of appropriations. Once a CRA or appropriations act is enacted, pay would be generated and allotments will be paid.

I am glad that DFAS has finally decided to release information to the military members it serves.  I think it is absolutely appalling that it has taken this long to get official notification of things that we have known for weeks.  I hope that this has answered some of your questions.

Looking for a more “If this, then that” type of coverage?  Check out But What About Pay at SpouseBUZZ

 

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.

9 Comments on "DFAS Speaks on Pay Issues"

  1. david shrom | April 7, 2011 at 6:51 pm |

    if the government shuts down will the members of th house and senate be payed . I feel that that they shuld not be payed if they shut the government

  2. during mid month pay….our allotments go into a "hold" account until the end of month pay where it is dispersed. if we are to "shutdown", does this mean that our allotted money will stay in that hold account? which means that most of our mortgages, car loans, personal loans will go unpaid because we'll only receive that 8 day payment without the allotment money being released…..curious.

  3. If legislation is not able to make a decision on how the budget will be spent, they too should not receive any type of pay. Why should the soldiers, airman, seamen, and marines be paid for a job that is they are not getting paid for? So, in all actuality, the government should be sure to pay their military because I know some of the military will not accept the excuse of, "We haven't decided on a budget". I know that they are trained to not make excuses for themselves for things that went wrong. So if their military doesn't make any excuses for themselves, why should their government?

  4. NavyWife98366 | April 8, 2011 at 2:23 am |

    Can we make the retroactive pay with interest??

  5. Airmanferret | April 8, 2011 at 5:07 am |

    What about PCS? I'm actually moving on base from off base on April 26. I wonder if the military move will be funded.

  6. Retirees do not call under the CRA funds so you will get your paycheck

  7. I just PCS and im in temporary housing. they want me out soon so how can I take care of my family with limited money and no home . Working is not a question all true soliders will drive on with or without pay. Dont worry about us soliders help our families that depend on us while we protect you too.

  8. Care Bear | April 8, 2011 at 4:27 pm |

    Navy Federal is helping out with paying us for the other 1/2 to any service members who have them as their bank. This is a stressful time for all!

  9. i am a widow of a retired air force will still get my military pay?

Comments are closed.