Arrears-of-Pay Update

When a military retiree dies, the government owes the retiree’s beneficiary the retired pay for the part of the month in which the retiree was alive. This arrears of pay (AOP) is a one-time payment which is not part of the Survivor Benefit Plan. Since retired pay stops with the death of the retiree, all retired pay received after the retiree’s death must first be returned to the Defense Finance and Accounting Service’s (DFAS). Then the beneficiary should apply for AOP using a Standard Form 1174, Claim for Unpaid Compensation of Deceased Member of the Uniformed Services. This form is available at www.dtic.mil/whs/directives/infomgt/forms/eforms/sf1174.pdf or from a Retired Activities Office or Retirement Services Office. The DFAS number to report the death of a retiree is (800) 321-1080, the same number used for other questions about retired pay.