Fed to Stop Issuing Paper Pay Checks

October 19, 2012 | Terry Howell

Source: Defense Accounting and Finance Service –

Military members, military retirees and annuitants, and federal civilian employees receiving paper checks from the Defense Finance and Accounting Service will soon get their pay electronically to comply with new mandates from the U.S. Department of the Treasury.

The Treasury Department has set March 1, 2013, as the date all federal government payments should be delivered by electronic funds transfer methods such as direct deposit.

“The Treasury has estimated that the U.S. government spends about $130 million each year to print and mail paper checks,” said David McDermott, DFAS deputy director of operations. “DFAS alone spends $2 million that would otherwise be used by the military services and DoD agencies in support of our warfighters.”

Among DFAS customers, that $2 million a year tab supports only one percent of everyone DFAS pays.

“While we’ve always encouraged our customers to use direct deposit or some other form of EFT, federal law and the resulting Treasury rules are taking away the option to receive checks in the mail,” McDermott said. “Fortunately, setting up direct deposit is a very easy thing to do.”

Customers with a myPay account can go to https://mypay.dfas.mil/mypay.aspx and enter their bank routing and account numbers. These direct deposit changes will be reflected in their pay records in about a week.

Military retirees and annuitants without a myPay account can complete the Fast Start Direct Deposit form available at http://www.fms.treas.gov/eft/2231.pdf and send it to DFAS, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130.

Former spouses of military retirees should complete a Direct Deposit Authorization (Form 1059) available at http://www.dfas.mil/dms/dfas/rapay/pdf/1059.pdf and mail it to DFAS, Garnishment Operations, P.O. Box 998002, Cleveland, OH 44199-8002 if they do not have a myPay account.

Military members or civilian employees paid by DFAS should contact their servicing finance office, civilian pay Customer Service Representative (payroll liaison) or human resources office to start direct deposit if they’re unable to access myPay.

Those needing additional assistance can call DFAS customer service at 1-800-321-1080 (for retirees and annuitants) or 1-888-332-7411 (for military and civilian employees).

DFAS officials urge their military, retired, annuitant and civilian customers to take advantage of the benefits offered by direct deposit now before the March 1 deadline. These benefits include added security, quicker access to funds and the ability to spend time previously used to deposit paper checks for other home or leisure activities.

The DFAS website has information on the agency’s efforts to comply with the Treasury’s mandate at http://www.dfas.mil/mandatoryeft.html. This information will be updated as new details are available.

About Terry Howell

Before becoming the Managing Editor for Military.com, Terry served 20 years in the U.S. Coast Guard as an Aviation Electrician’s Mate and aircrewman. In his final role in the Coast Guard, Terry served as a Career Development Advisor, where he provided career, finance, education, and benefits counseling to servicemembers and their families. Since retiring from the Coast Guard, Terry has authored the book, The Military Advantage, managed the content for TurboTap, the DoD's online transition program and VAforVets, the VA's transition assistance website. Terry earned both his Bachelor's and MBA at Corban University using Military Tuition Assistance and his GI Bill benefits to help cover the cost.

Comments

  1. It's about damn time. This has been talked about for more years than I can remember.

    • DADDY WARBUCKS says:

      YOU MAY LOVE IT BUT NOT ALL OF US ARE GOING TO LINE UP BEHIND YOUR WAY OF THINKING.

      • DADDY WARBUCKS,

        You don't have to line up behind me for anything. Experiment yourself by not getting a Bank Account, and see where your train of thought gets you.

        LMAO

  2. Ronald Fitzke says:

    Just wait until the result of this action becomes completely known. Unless we get a new president they areplanning on stealing 1% of each bank transaction
    If you think it is to benefit you forget it folks.

    • Ronald Fitzke,

      LMAO, no one is stealing my money nor are they taking any percent in transaction fees.

    • Ronald

      That piece of Urban legend (well a bill *was* introduced, but died in committee) has been around for longer than Obama has been present.

      • A "legend" is a myth, or made up story about something that never occurred. It's not an "urban legend" if it actually was something that was introduced in the congress. The so-call "urban legend" was actually H.R. 4646, which was actually introduced in 2010 by Rep. Chaka Fattah, (D-PA), but went no where because no other fool in the place dared sign his name to this political suicide note as a cosponsor. Therefore, since it happened it can't be a "legend".

  3. Lawrence O Wilson says:

    Why is it that the US GOV can force people to PAY money to an organization in order to get their pay from the Government? In order to get paid, from the Government, one has to open an account with some bank so that the bank gets the pay not the person working for the government. Yes, the account will be in their name, but the account is not free. There is a charge for the account and the person will have to pay that charge in order to have the account.
    Personally I do not believe in Credit cards. The US Gov. prints dollars, not plastic credit cards. I do not believe that one should have to pay some one else in order to get their pay. If you paint my house, is it right for me to require you to take on the cost of having a bank account in order for you to get the money I owe you for the paint job?
    No matter how you look at it, no one should have to pay a third party in order to get their pay from their employer!

  4. What about Vets that are in prison and cannot open a checking account?

  5. The president has nothing to do with this. Getting a new president will not change anything. Learn your facts.

  6. Get a checking & savings account at a Credit Union. Normally most of them don't chage fees for checking accounts or for transfers, mine doesn't, but if they do it's minimal. Banks these days are so greedy they'll "fee" you right out of an account. It's just not wise to use banks any more if you don't have to.

  7. Government checks provided much needed financial support for the postal service. Forcing direct teposit and eliminating mailed checks is another nail in the coffin for the USPS.

  8. Edward Colbert says:

    Direct deposit system is very reliable. This action should reduce mail fraud. theft

    • DADDY WARBUCKS says:

      YEA AND GOODBYE TO SOME MORE JOBS. MOST LIKELY A MAKE MONEY PLAN BY THE GOVERNMENT IS BEHIND IT.

  9. Maybe they ought to have payday actvities again….everyone has to come down and sign for their cash!

  10. I DONT SEE HOW YOU CAN FORCE SOMEONE TO HAVE DIRECT DEPOSIT OR SOME OTHER TYPE OF ELECTRONIC TRANSACTION IF YOU DONT WANT A BANK ACCOUNT THAT IS YOUR BUSINESS AND YOU SHOULD NOT BE FORCED KEY WORD FORCED THOUGHT THIS WAS A FREE COUNTRY JUST MORE BS THEY WANT TO FEED US

    • russellsvocation says:

      YEAH, and… and…
      No one should force you to have a driver's license.
      No one should force you to be 21 to buy booze.
      No one should force you to educate your kids.

      It's for your own good you jackass. Your money gets to you safely and people like you become less of a target carrying money around after cashing a check.
      I bet you already have an account and direct deposit, you just needed an outlet to bitch about something.

      • DADDY WARBUCKS says:

        YEA AND WHEN YOU START PAYING THAT ONE PERCENT EACH MONTH THEN YOU WILL KNOW WHY THEY WENT PAPERLESS BUT OF COURSE YOU ARE ONE OF THE NON-BELIEVERS.

    • you do not need a bank account, you can use Direct Express, it is a debit card and I have not had a problem with it since I received it.

  11. Yes they’re forcing you. If you want the money you earned you now must have a bank account or not received the money. They claim it will save money but I doubt that’s the real reason. They also do this for VA disability. One thing I know for sure is you can’t trust the government…. just ask the American Indians….

  12. USAF4everblue says:

    I think it's interesting that all the previous commenters had no issue setting up an internet account to post their comments but have issues setting up a bank account which has more protections if your money/identity is stolen versus the internet. Just a thought.

  13. @Ronald – you are completely wrong – try this link http://www.snopes.com/politics/taxes/debtfree.asp to see that the 1% thing is not going to happen no matter who is in the White House.

    @Rolland – sort of correct but not quite. VA Disability Benefits are reduced but not eliminated as the incarcerated vet has all his medical provided at no cost to him/her while incarcerated. VA Disability Pension payments are suspended on the 61st day of incarceration. VA Pension payments also stop on the 61st day. All can be resumed upon release from incarceration. The rest of your statement about felons being exempted from payments for violating the UCMJ makes no sense on the face of it. Once released from Active Duty or Active Reserve status, or retired a veteran is no longer subject to the UCMJ. Check this reference re: compensation for incarcerated vets –> http://www.vba.va.gov/bln/21/Benefits/Incarcerate

    jdg

  14. DADDY WARBUCKS says:

    THE REASON FOR DIRECT DEPOSIT BY THE GOVERNMENT IS SO THAT THEY WILL BE ABLE TO GET THAT ONE PERCENT OR IS IT TEN PERCENT OF YOUR CHECK WHEN DIRECT DEPOSITED. THIS IS IN THE MILL BY DEMOCRATS TO GET THE FEE ON DIRECT DEPOSIT AND ALSO IN THE MILL TO GET A FEE EVERY TIME YOU DEPOSIT MONEY IN YOUR ACCOUNT AT THE BANK. HOPE SOMEONE STOPS THIS BEFORE IT GOES INTO EFFECT. IF DEMOCRATS CONTROL WHITE HOUSE AFTER ELECTION IT IS GOOD BET IT WILL BE LAW.

    • DADDY WARBUCKS,

      LMAO.

      • DADDY WARBUCKS says:

        MY FRIEND THIS WILL BE INTRODUCED AFTER ELECTION THAT IS IF DEMOCRATS STAY IN OFFICE. THERE WAS A PLAN BEHIND GOING PAPERLESS AND IT WAS NOT FOR YOUR BENEFIT.

        • DADDY WARBUCKS,

          Please, show me the BEEF. Why are you "Conspiracy Theorist" never able to show us the same information that you've seen?????

          I mean come on now, and read what you are posting. You are saying that a secret bill has been passed that won't take effect unless the Democrats get elected. I guess the Republicans weren't invited to the vote or many be they are just keeping this secret!

          LMMFAO

          • DADDY WARBUCKS says:

            THE BILL WAS BROUGHT UP SEVERAL YEARS AGO BUT COULD NOT GET ENOUGH SIGNATURES ON IT FOR THEM TO GO FOR IT. NEWS ON THE INTERNET AND I WILL HAVE TO LOOK IT BACK UP TO SEE WHICH ONES SENT IT BUT PLANS ARE IN PLACE TO TRY TO INTRODUCE IT AGAIN AFTER ELECTION IF THINGS GO THEIR WAY.

    • Urban Legend DW, Urban Legend

      • DADDY WARBUCKS says:

        NO URBAN LEGEND ABOUT IT. YOU DON'T THINK THEY JUST CAME UP WITH THIS IDEA OF GOING PAPERLESS OVERNIGHT DO YOU. IF DEMOCRATS WIN ELECTION THEN JUST SIT BACK AND WAIT FOR IT TO HAPPEN. GOT TO PAY FOR OBAMA CARE SOMEHOW.

        • DADDY WARBUCKS,

          They, all agencies have been trying to go paperless for years. Guess you haven't noticed, but the rest of the world already offers this for most all accounts that I know of. Sears, Kohl's, JC Pennies, USAA Accounts, Belk's, etc. NONE, NONE of those or any organization that I know of charge you to go paperless.

          My guess is that after the election and this hasn't happened, you will have some outrageous excuss for this not happening.

          So DADDY, why don't you give us a hint as to why this hasn't or isn't really going to happen!

          • DADDY WARBUCKS says:

            C.B. GOING PAPERLESS AND JOBS LOST DO YOU NOT THINK THAT THEY ARE GOING TO TRY AGAIN ON THE PLAN THEY HAD A FEW YEARS AGO BUT COULD NOT GET THE HELP FOR IT. I FOR ONE HOPE THAT THERE IS NOT A ULTERIOR MOTIVE FOR GOING DIRECT DEPOSIT. JUST HAVE TO WAIT AND SEE DEPENDING ON HOW ELECTION GOES.

          • DADDY WARBUCKS,

            Still waiting for that link to where you are getting your information from?????

    • russellsvocation says:

      That is the stupidest thing I've heard of in a long while.
      What part of your anal cavity did you pull that from?

      • DADDY WARBUCKS says:

        YOU HAVE NOT KEPT UP WITH ANYTHING EVIDENTLY AS THIS IS IN THE WORKS BUT WILL NOT BE IMPLEMENTED UNTIL AFTER ELECTION IS OVER AND IF DEMOCRATS WIN YOU BETTER BELIEVE IT WILL HAPPEN. WHY DO YOU THINK THEY WANT EVERYTHING DIRECT DEPOSITED.

        • russellsvocation says:

          Oh give it a rest. The government has been trying to get people to use direct deposit for years. It is easier, cheaper and safer than paper checks.
          So, what are you saying if republicans win neither the "forcing" of direct deposit of the 1% will go into effect?
          It's time for you to take off your aluminum hat and join the rest of the real world.

          • DADDY WARBUCKS says:

            DID YOU NOT NOTICE THAT IT HAS ALREADY COME UP BUT SENATOR OR CONGRESSMAN COULD NOT GET ENOUGH SIGNATURES. WHAT MAKES YOU THINK IT WON'T COME UP AGAIN.

          • russellsvocation says:

            You, sir, are obviously insane and not worth carrying a discussion with. Paper checks are going away, no one is taking a percentage and you need to check your meds.

          • DADDY WARBUCKS,

            Have you noticed that you are the only one that believes yourself.

        • DADDY WARBUCKS,

          During my message board/blog posting career, I've seen all sorts of posts like what you are claiming, none ever coming to fruition. People always making these wild claims but never, evey able to post the link to the information so the rest of the world can see and read about it also. You guys always cloak this insome sort of mystery.

          So DADDY WARBUCKS, are going to post the link to this information so we too can read the facts of your post?????

  15. HOW VET IN CANADA

  16. Floyd Lewellen says:

    Since the FED is going to stop paper checks maybe they should stop printing paper money also. If they don't paper checks or money won't be worth anything.
    Then what will our retirement be worth then…

  17. Well, what will happen to the payment of soldiers, social security or any state or government paperless checks when we have storm blackouts and it is payday? Right, electrical is out – so is your payments!

    • KimAgnew,

      What would you do if you had a paper check and the power was out downtown at your bank and they couldn't cash it?????

      What would you do if you had cashed your check but the your car wouldn't start and you couldn't go anywhere to spend that money?????

      What would you do if today is "check in the mail day", and the mail persons vehicle breaks down and they can't deliver your mail today?????

      I've had auto deposit since I can remember while on active and now retired. Matter of fact, I can't remember anyone when I was on active duty that didn't have auto deposit.

      There are alot of what if's.

      One good thing about auto deposit, is if the 1st falls on Monday, my money electronically got to my bank the Friday before.

  18. All,

    For those that have never had a bank account for the purpose of having your military pay electronically deposited into said account, do not worry, I've had an account with USAA.com which services military and their families since 1969 and as I remember, they nor any other Bank that I know of charge you fees for this service. Please note, it is only a myth that the Government is going to charge you to do this, in that prior to my retirement and after my retirement I've had my monies electronically deposited this way forever.

    • I second that. USAA is a very solid bank, with customer service equal to none. If you have no other option, please, choose USAA. A very happy customer.

      • Joe,

        And I failed to mention, is they also pay out dividends on their USAA Property and Casualty Insurance Group. in 2010 they gave back to US $594 Million and in 2009 $490 million. I mean chit, how many banks do this!

    • Charles??? Please tell us about your career on blogs and message boards. It certainly makes sense now with your disdain for veterans groups and arguments "for" congressional benefits and lack of fortitude "for" veterans benefits. But of course that's just my opinion….lmao

  19. I guess this means the end to check pools. I remember when I was in supply school, one of our classmates was always winning the pool. We then included the other classes in the school and he still won. We learned, after we got to Vietnam, that he had a friend in the Navy Finance Center in San Diego. Checks for sailors who were on temporary duty were issued manual pay checks instead of being part of the computer check run. His friend would rearrange the checks before printing so that the winning check number would be issued to our classmate.

  20. Blackouts? Wouldn't that mean that the registers in the stores aren't working either? How many people really use cash these days? I even use a credit card at McDonalds because many of the uneducated cashiers cannot count change back!
    I have been using direct deposit along with checks and debit cards as long as it has been available. The only time I ever had trouble was when they MAILED my reenlistment bonus to the wrong person. Also, has anyone been out of town, in the hospital, or otherwise unavailable when your paper check came in the mail. The money is always in my account no matter where I am on the first of the month. You people seem to just want something to complain about!.