The allotment of pay is provided to help Service members adjust their personal and family finances to military service.  
  
Allotments are a definite portion of a member's pay and allowances, and are authorized to be made payable to a qualified person or institution. Some Allotments can have an indefinite time-frame, while others can have a specified time-frame; also see Restrictions.
  
Discretionary and Non-Discretionary are two types of allotments. Members are required to complete a written request DD Form 2558 to establish, discontinue or make changes to existing allotments. 

Who is Eligible for Allotments?

• Active Duty Enlisted Members
• Active Duty Officers
• Reserve Component members on extended active duty

Maximum amount allotted = Total of all pay and allowances – standard withholdings (for example, federal and state taxes) 

Discretionary: 

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: 

• 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
• Voluntary payments to dependents or other relatives
  • Military members may authorize allotments to dependents, relatives, or a divorced spouse.
• 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.
• Mortgage or Rent
  • Members may authorize allotments of pay for mortgage or rent payment to a financial institution, mortgage company, Realtor, or landlord.
• Car loan payments
  • Officers and enlisted members may authorize an allotment for payment of car or personal loans. 
• Payments to repay a loan from a loan or finance company
  • All enlisted members are authorized to make these types of allotments.
• Deposits to the DoD 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: 

• 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. 
• Relief Repayments
  • Repayment of loans to the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, and American Red Cross. 
• 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. 
• 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. 
• 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. 
• 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. 
• 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.

Updated March 24, 2011