The Defense Finance and Accounting Service provides retired military personnel with retirement pay, disability entitlements and survivor benefits. The DFAS also helps retirees plan for and manage their benefits.
Retirement and annuitant pay is determined by the retiree’s salary, length of service and whether or not a disability is involved. A combat related disability may increase the R&A the retiree would normally collect. FAS helps retirees plan for these payments, understand what they qualify for and coordinate them with VA coverage. It can also help set up direct deposit and survivor annuities.
Disability entitlements may include Disability Retirement pay if R & A does not otherwise apply or may include Combat-Related Special Compensation, or CRSC, and Concurrent Retirement Disability Pay, or CRDP, that allow eligible retirees to receive monthly entitlements in addition to retired pay. DFAS helps retirees use these amounts to offset income waived for VA disability payment and apply for CRSC payments. Although CRDP is automatically paid, DFAS help retirees deal with the resulting tax implications of this income. DFAS can coordinate these payments with R & A and include them in direct deposit requests.
Survivor benefits may include the final month’s pay and any other money owed at a retiree’s death, or an ongoing monthly annuity paid to the beneficiaries of the deceased. DFAS assists beneficiaries when they become eligible to receive payments.