This year payments normally scheduled for Oct. 3 will be issued on Sept. 30. Payments normally scheduled for Jan. 3, 2012 will be issued on Dec. 30, 2011.
Military retirees will now receive 13 rather than the normal 12 payments in calendar year 2011, DFAS said.
The 2011 National Defense Authorization Act requires military retiree pay to be processed on the first of every month. When that day falls on a weekend or national holiday, the pay date is moved to the previous business day.
The 13th payday on Dec. 30 falls within the 2011 tax year, which could affect the tax liability of some retirees and those who receive portions of their retired pay.
DFAS said customers should consult a tax advisor, the Internal Revenue Service or their state tax agency to determine if their tax withholding will satisfy federal and state income taxes when they file returns next year.
For tax year 2012 and beyond, retirees will receive their normal 12 payments.
DFAS recommends retirees use the myPay system if they need to change their federal or state tax withholding.