Credit Union News

Government Payrolls

This year, some federal government payees may see an additional payday. The Defense Finance and Accounting Service has announced a change in federal regulations that may affect your benefits.

Because of new guidelines in the National Defense Authorization Act, the DFAS is now required to process pay on the first day on the month. If the regularly scheduled payday falls on a weekend or federal holiday, then the payday will be moved to the previous business day.

Who will this affect? This change will apply to retired pay, concurrent retirement and disability pay, and combat related special compensation, as well as allotments, garnishments and court-ordered support payments.

How will this affect me? If you fall under any of these categories, from now on, you will receive your January paycheck in December each year, because January 1 will always be a federal holiday.

2011 will be the only year when you receive a 13th paycheck (because you'll receive a Dec. 1, 2011 check and a Dec. 30, 2011 check). If you are concerned about the effect this change may have on your tax status, consider meeting with a tax advisor to discuss how to handle the additional pay period for 2011. In 2012 and beyond, you will receive the normal 12 pay checks.