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The index used for active duty pay raises are based upon average civilian wage increases.

Thus, retirement pay COLAs and annual active duty pay raises will differ.

Also note; the annual COLA for the REDUX retirement method is reduced by one percentage point below the increase in the CPI.

Customers who cannot access my Pay can change federal withholding amounts by completing a new IRS Form W-4 or W-4P, or change state withholding amounts using a DD 2866. The Defense Finance and Accounting Service provides responsive, professional finance and accounting services to the men and women who defend America.

The 2011 NDAA requires military retiree pay to be processed on the first day of the month. The new rule also applies to retiree allotments, garnishments and court-ordered former spouse and child support payments. If retirees need to make changes to their federal or state tax withholding, the quickest and most secure way to do so is through my Pay.

When that day falls on a weekend or national holiday, the pay date is moved to the previous business day. Available 24 hours-a-day, seven days-a-week, my Pay enables eligible users around the world to make routine changes to their pay information, including tax withholding, that become effective within days. Box 7130 London, KY 40742-7130 Fax: 800-469-6559 It may take up to 30 days for changes to be made when mailing in a paper form.

The method used depends upon when the member first entered military service.

To decide which method applies to you, you must determine the date that you FIRST entered the military.

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