KAISERSLAUTERN, Germany — The Defense Department will soon no longer issue paper paychecks, a change aimed at saving millions of dollars in printing and mailing costs, according to a Ramstein Air Base news release.
The U.S. Department of Treasury mandate kicks in March 1 when electronic funds transfer for military pay will be mandatory for all servicemembers, retirees and DOD civilians, according to the Defense Finance and Accounting Service.
“The Treasury has estimated that the U.S. Government spends about $130 million each year to print and mail paper checks,” David McDermott, DFAS deputy director of operations, is quoted in the Air Force release. “DFAS alone spends $2 million that would otherwise be used by the military services and DOD agencies in support of our warfighters.”
DFAS is encouraging personnel to set up a direct deposit checking or savings account ahead of the Spring deadline.
About 99 percent of DFAS customers already receive their pay by direct deposit, according to DFAS’ Web site.
In the Kaiserslautern area, the KMC Retiree Activities Office has offered to help retirees with the transition, according to the news release. Retired Chief Master Sgt. James Barrante, the office’s director, said the organization recently helped a retired chief who didn’t own a computer, according the release.