Military retirees can automatically send some of their retired pay to another institution through an allotment (payroll deduction) just as they did while on active duty.
Please note that any allotments that were established for less than 30 days prior to the time of your retirement will have to be re-established. Since your retirement pay will be less than your active duty pay, it's vitally important to ensure that you have enough in your account to cover these allotments. If not, some allotment(s) might be unpaid, which could make you subject to penalties and/or a loss of some benefits.
Retired Guard/Reserve
Those who have retired from the Guard/Reserve prior to the age they can collect their retirement pension (gray-area) will not have access to their DFAS account. It will remain dormant until such time as your retirement application is processed. At that time, your account will be reopened and you may establish new allotments.
Medicare Part B
Military retirees who are using Medicare as their primary health insurance and TRICARE for Life (TFL) as their secondary will need to purchase Medicare Part B to use TFL. If you are collecting Social Security, your Medicare Part B costs will be automatically deducted from your monthly Social Security payments. However, if you are NOT collecting SS benefits yet, you will be billed directly. Due to certain rules, military retirees may not pay Medicare Part B costs by allotment through DFAS or the Coast Guard Retiree & Annuitant Services (RAS).