We also suggest you limit the number of your AOP beneficiaries to avoid delays in payment. That's why having a current, correct and complete beneficiary designation on file is important to prevent delays or errors in your arrears payment.
It can take many months to locate your survivors, identify who comes highest in the Order of Precedence, and then make the payment. When no beneficiary is named, the payment is made to the highest person in what is known as the " Order of Precedence." The Order of Precedence is the federally mandated order of inheritance that applies to legacies without a designated beneficiary. Unless otherwise noted, your AOP beneficiary will also be the person we contact for assistance in closing your account, so it is important to designate a person you trust to handle your affairs.įailing to designate an AOP beneficiary and keep their contact information current could cause stress and financial hardship for your survivors during an already difficult time, because the final payment could be delayed. It’s very important that you designate a beneficiary or beneficiaries in your retired pay account for your Arrears of Pay, and that you keep that information current. The importance of designating your AOP beneficiary When we receive word of your death, this claim form will be sent in a condolence package to the AOP beneficiary you designated for your account. To receive this payment, your AOP beneficiary will need to send us a claim form. The amount of the payment owed to you will then be computed (based on the number of days in the month you were alive) and paid to your AOP beneficiary, along with any other money owed to you at the time of your death. When your death is reported, DFAS will reclaim your final month's pay and audit your account. This is because your entitlement to retirement pay ends on the date of your death. In most cases, the Arrears of Pay will be only the pro-rated amount of your final month’s retirement pay. This is called your Arrears of Pay (AOP).
Make the Payment of Your Final Paycheck Easier for Your Loved OnesĪfter you pass away, a one-time payment of your final paycheck is made to a beneficiary.
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