Retired service members of the U.S. Armed Forces will be happy to know that their retiree pay cannot be garnished to satisfy credit card debts, according to the Defense Finance and Accounting Service. However, federal law does allow military retiree pay to be garnished in order to satisfy child and/or spousal support obligations.
What is a Garnishment?
A court must order a garnishment in which a portion of an individual's salary is used to pay a creditor, according to the Department of Labor.
Defense Finance and Accounting Service
The Defense Finance and Accounting Service (DFAS), headquartered in Cleveland, Ohio, is the agency responsible for implementing all court-ordered child support, alimony and commercial debt garnishments for all active duty service members and civilian employees of the federal government that the agency pays.
The DFAS also processes court-ordered garnishments of the pay of retired service members under provisions of the Uniformed Services Former Spouses' Protection Act. The DFAS garnishment operations center can be reached by calling (888) 332-7411 between the hours of 7:30 a.m. to 6:00 p.m. Eastern Standard Time.
Uniformed Services Former Spouse Protection Act
Under provisions of the Uniformed Services Former Spouse Protection Act, the former spouse of a retired military service member may receive up to half of the service member's disposable retiree pay, according to the DFAS. The Uniformed Services Former Spouse Act was enacted on September 28, 1982. The legislation allows state courts to consider the pay of military retirees as divisible property in divorce settlements occurring after June 25, 1981.
Military Pay Allowable Garnishments
According to the DFAS, retired military pay can also be garnished to satisfy IRS tax levies and other debts like student loans, post exchange/base exchange deferred payment obligations and noncommissioned officer and officer club.
Starting a Garnishment
The DFAS must receive a court order that directs the federal government to withhold money from the active duty or retired service member's pay and send it to the creditor to satisfy the service member's debt. Court orders directing the garnishment of a service member's pay should be sent to
Defense Finance and Service
Cleveland DFAS-DGG/CL
P.O. Box 99802
Cleveland, OH 44199-8002
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