For
discretionary allotments, members specify the individual,
institution or business to receive the allotment. No more
than six discretionary allotments are allowed. Examples of
discretionary allotments include:
1.
Payments of premiums for commercial life insurance on the
member or the member's spouse or children
Allotments
are authorized for all military service members to pay
insurance premium.
Eligible
allotter's are:
- U.S. Government Life Insurance and National Service Life
Insurance
- Commercial insurers
- The Navy Mutual Aid
2.
Voluntary payments to dependents or other relatives
Military
members may authorize allotments to dependents, relatives, or
a divorced spouse.
3.
Deposits to financial institutions, mutual fund companies,
or investments
Members
may authorize allotments of pay to financial organizations for
credit to the account of the member.
4.
Mortgage or Rent
Members
may authorize allotments of pay for mortgage or rent payment
to a financial institution, mortgage company, Realtor, or
landlord.
5. Car
loan payments
Officers
and enlisted members may authorize an allotment for payment of
car or personal loans.
6.
Payments to repay a loan from a loan or finance company
All
enlisted members are authorized to make these types of
allotments.
7.
Deposits into the savings deposit program
Active
duty officers and enlisted members may authorize an allotment
into the Saving Deposit Program and are processed in
accordance with the procedural instructions of the military
service concerned.
Non-Discretionary
Non-Discretionary allotments are made to a specifically
designated agency or purpose. There is no limit to the
number of non-discretionary allotments a member can have at
any given time. Non-discretionary allotments are limited to
the following:
1.
Purchase of U.S. savings bonds
DLT
41-1 specifies who can purchase bonds by allotment. The
purchase of U.S. savings bonds is by Class B allotment. One
year bond purchases cannot exceed $15,000. Series EE and I
bonds are available.
2. Relief
Repayments
Repayment
of loans to the Army Emergency Relief, Navy and Marine Corps
Relief Society, Air Force Aid Society, and American Red Cross.
3.
Government Indebtedness
Voluntary
liquidation of indebtedness to the U.S. including those
incurred due to defaulted notes insured by the FHA or
guaranteed by the VA or payment of amounts due under the
Retired Serviceman's Family Protection Plan.
Any
other indebtedness to any department or agency of the U.S.
Government (except to the military departments that pays the
member).
Any
repayment of debts owed to an organization for funds
administered on behalf of the U.S. Government and any such
debts assigned to a collection agency.
4.
Charity
Members
are authorized to make charitable contributions by allotment
to the Army Emergency Relief, Navy and Marine Corps Relief
Society, or affiliates of the Air Force Assistance Fund.
5. Child
and Spousal Support
When
the member on extended active duty has failed to make support
payments, a cognizant DFAS site with proper notification will
start a statutorily-required child or child and spousal
support allotment from the members pay and allowance.
6.
Assistance Funds
The
Post-Vietnam Era Veteran's Educational Assistance Program
provides education assistance on a contributory basis to those
eligible members entering the Armed Forces on or after January
1, 1977, and before July 1, 1985, who might otherwise be
unable to obtain a higher education.
7. Debts
for Non-Discretionary Allotments
Payment
of delinquent federal, state or local income or employment
taxes.
Commercial
Debt- When a member fails to pay debts owed to a commercial
creditor, the creditor can make application for recovery of
this debt.
Delinquent
Travel Charge Card Debt - When a member fails to pay debts due
on their charge card, the heads of agencies have authority,
upon written request of a federal contractor, to collect the
debt.
Restrictions
1. Minors - Allotments (except bonds) are not made payable
to children under 16.
2. Mentally Incompetent Persons - Appointed guardians or the
institution can receive an allotment where the mentally
incompetent person is confined.
3. Power of Attorney - A general power of attorney is not
allowed to establish, change or stop an allotment. A member
must specifically designate a special power of attorney to
make changes to allotments.
4. Member Awaiting Trial by Court-Martial - Members cannot
register allotments between the date that a court-martial is
ordered and the date of the approval or disapproval of the
sentence. Standing allotments are discontinued when it is
necessary to permit the collection of the forfeiture in the
monthly amount specified and the time limitation stated by
the court-martial, or if the member is sentenced to forfeit
all pay and allowances. Prisoners are able to register
allotments if the amount of the pay and allowances not
forfeited is sufficient to cover the deductions.
5. Returned Absentee, Deserter, and Prisoner - Allotments
are not registered for a returned absentee or deserter
unless DFAS has verified the member's pay status.
6. Fraudulent Enlistment - Pay and allowances are not
allotted when pay is suspended pending final action on
determination of fraudulent enlistment.
7. Reduced Pay of Allotter - Allotments are discontinued
when a reduction in grade or stoppage of pay does not leave
sufficient funds for allotments in force.
(Source:
US Defense Finance and Accounting Service - DFAS)
