Recent Military Retirees May Receive Retroactive Payment

19 March 2008
DFAS

Service members with retirement dates on or after January 1, 2008, may receive a retroactive payment based on the 2008 National Defense Authorization Act (NDAA).

The annual NDAA contains authorities that impact various aspects of military active and retired pay, including any pay increases. The 2008 NDAA was not enacted before January 1, 2008, preventing DFAS from computing the final active duty pay rates for members retiring in January or February. Members who retired during this period had their new retiree pay accounts computed with a 3 percent pay increase effective January 1, 2008, pending final action on the act. With the enactment of the 2008 National Defense Authorization Act on January 28, 2008, the active duty basic pay rates were authorized a 3.5 percent increase, retroactive to January 1, 2008.

As a result, the Defense Finance and Accounting Service will re-compute the 0.5 percent increase on accounts impacted by this legislation. A Retiree Account Statement detailing the increase will be mailed to the effected retiree's address of record and will also be available for viewing online at www.mypay.gov.

No action is required by the retiree to receive the retroactive payment. Retroactive payments should be received by eligible retirees within 30 days.

All payments on or after March 1, 2008 have been updated to reflect the 3.5 percent increase.