Allotments Overview

Introduction

The allotment system is a convenience provided to active duty members (or reservists on active duty with 140 days or more ADT or 181 days or more ADOT remaining) for deductions from their monthly pay. These deductions can be used for savings, loans, insurance, U.S. Savings Bonds (through a savings allotment to TreasuryDirect), charities, support of dependents, education, CG associated dues, and any other legal purpose. There are times when you need to stop, start, or change an allotment or a bond and this job aid explains the process.

Cutoff Dates:

Changes, starts and stops to allotments are processed according to this schedule:

Reminder:  Allotments are deducted from the mid-month and end-month paydays (50% each payday) and the funds are transferred/deposited on the 1st of the following month.

Another way of looking at Allotment Stop Cutoffs:

*Funds will be deducted from mid-month pay if the transaction to stop the allotment is not input on or prior to the date shown in the Last Date to Start Allotment column. However, the system will refund the amount withheld from the mid-month pay on the end-month payday.  The Year/Month is the last deduction month.  This means the allotment/bond will be deducted and paid that month and will not be deducted or paid the following month.

• Example 1:   You choose 2012/04 for the last deduction, the allotment/bond will be deducted from your (or the member's if not using self-service) pay on 13April (mid month payday) and 01 May (end month payday) and the funds will be transferred on 1 May.

• Example 2:  You do not want the allotment to be paid on 1 September 2012 you must enter 2012/07 (July) in the Stop Year/Mo field. The allotment will be paid on 1 August (using funds deducted from your (or the member's --  for SPO users) mid-month and end-month July paydays.  If the transaction is input after 6 August 2012 but on or before 21 August 2012, 50% of the allotment will be deducted from the mid-month August payday. This amount will be refunded in the end-month August pay day (31 August 2012).

Allotment Rules

Keep the following rules in mind when processing allotments:

• A member may not allot more than the amount of pay he or she is entitled to. The system does not edit allotments against the member's available pay, it is up the user to determine if there is sufficient net pay available to start or change an allotment amount.  Available pay is determined by the pay system (JUMPS), not PeopleSoft. You may be able to start or increase an allotment, which exceeds your available pay, in the system but the allotment transaction will not process through the pay system.

• All allotment payments must be made by electronic funds transfer (EFT).

• The annual limitation on purchases of United States Savings Bonds is $5,000 per Social Security Number. The limit applies separately to Series EE and Series I savings bonds, and separately to bonds issued in paper or electronic form. An individual can buy a maximum of $5,000 worth of electronic and paper bonds of each series in a single calendar year, or a total of $20,000, in single ownership form. If paper bonds are issued in co-ownership form, the limit applies to the first-named co-owner. All limits are based on the issue price of the securities. Member's must be aware of these limits, the pay/allotment system does not track stop bond allotments. It is up to the member to adjust his or her payroll deductions for the purchase of U. S. Savings Bonds in accordance with Treasury Department regulations.

• A member is only permitted to have only one current allotment of the following types:  
  
  Combined Federal Campaign Fund
  One education allotment (either Veteran's Education Assistance or Montgomery GI Bill)
  MGIB Additional Amount
  Loan Repay-CG Mutual Assist.
  Navy Mutual Aid Insurance

• Except for loans, only one allotment of any type to the same payee is authorized. Multiple loan allotments to same payee must have unique account numbers.

A summary of allotment rules is shown in the tables below. Refer to Coast Guard Pay Manual, COMDTINST M7220.29(series)., Chapter 7, for more information about allotments and bonds.

Self-Service Allotments (can be entered by SPO/PPC also)

Non Self-Service Allotments (SPO/PPC only)

Differences Between Self-Service and Non Self-Service

Members are authorized to have the following type of allotments:

(1) Voluntary payment to a dependent and relatives.

(2) Payment of home loan, mortgage or rent.

(3) Payment of premium for commercial insurance such as life, dental, health, vehicle, etc.

(4) Repayment to a financial institution for car loan, home improvement loan, etc.

(5) Navy Mutual Aid Insurance.

(6) United States Government Life Insurance.

(7) Deposits to a financial institution, mutual fund company, or investment firm, for the personal or joint account of the member.

(8) Payment of dues to a Coast Guard association.

(9) Contributions to CG Mutual Assistance or Combined Federal Campaign programs.

The member will be able to start, change, and stop the following allotments in self service:

(1) CG Association Dues

(2) Support of Dependents

(3) Insurance Premiums, including Navy Mutual Aid Insurance

(4) Loan repayment to financial institution (other than, CG Mutual Assistance, American Red Cross, Armed Forces Relief, and government debts)

(5) Personal savings/checking accounts

(6) Treasury Direct Savings

The member will not be able to start, change, or stop the following allotments in self service.  These allotments will have to be done by authorizing officials.

(1) Thrift Savings Plan (TSP).  TSP base pay contributions may be adjusted using the Thrift Savings Plan self-service page. Other changes must be submitted to PPC (MAS) using the appropriate TSP form. See http://www.uscg.mil/tsp.asp for more information.

(2) CG Mutual Assistance Loans and contributions.  Allotments for CGMA contributions are entered by the member's Serving Personnel Office.  A CGMA  pledge card may be submitted to start allotments for contributions to CGMA. .The unit CGMA officer enters allotments for loan repayment in the CGMA computer system.

(3) American Red Cross Loans.  Allotments for repayment of Red Cross loans  are entered by the member's Serving Personnel Office.  Complete an Allotment Worksheet (CG-2040) from the CG Forms web site (http://www.uscg.mil/forms/cg/cg_2040.pdf) and forward it to the SPO to start, stop or change

(4) Armed Forces Relief Loans.  Allotments for repayment of AFRS loans  are entered by the member's Serving Personnel Office.  Complete an Allotment Worksheet (CG-2040) and forward it to the SPO to start, stop or change

(5) Voluntary Payment of Government Debt. Allotments for government debt are entered by PPC (MAS)

(6) Combined Federal Campaign (CFC) donations.  Allotments for CFC donations are entered by the member's Serving Personnel Office.  A CFC pledge card may be submitted to start allotments for contributions to CFC.

(7) Montgomery GI Bill (MGIB). MGIB pay reductions are handled are started upon the member's election to participate in the MGIB and stop automatically when the maximum amount has been deducted.  PPC (MAS) should be contacted if changes are necessary.

(8) MGIB Additional Amount.  Allotments for MGIB "Kicker" are entered by the member's Serving Personnel Office.

(9) Veterans Educational Assistance Program (VEAP). PPC (DC) starts and stops VEAP contributions for eligible members.

(10) Tricare Dental Program (TDP) premiums (Not displayed or updated in PeopleSoft, contact the contractor, United Concordia at 1-888-622-2256 to start/stop/change TDP deductions).