Here are some informative FAQs and links on the Deferred Social Security Repayment for 2021.
MILITARY –
Q. On the Deferred Social Security repayment being extended to 12 months, will DFAS auto set up the collection rate?
A: DFAS will establish the collection rate for the 12 month collection period. There will be a difference between DJMS-AC and DJMS-RC collections. Given that members paid out of DJMS-RC have intermittent duty schedules, it was not feasible to split the deferred amount by equal dollar amounts, as some members will not be on consistent duty through the collection period. Debts will be set up in both DJMS-AC and DJMS-RC to collect the deferred OASDI, with LES remarks updating the debt balance through the collection period. DJMS-AC debts created will divide the deferred collections evenly among the 24 pay periods. DJMS-RC debts created will collect at a rate of 2% of net pay (vs the 6% originally planned when the collection period was 4 months).
Q. Does the minimum $50 per month repayment in the DoD FMR factor into the repayments?
A: No, does not apply to collection of taxes. We are using debt FIDs and TINs in the pay system as a mechanism to collect the deferred tax amounts. It was the most feasible way that we could accomplish within the pay system to allow for tracking and reporting.
Q. Will a member have the option to accelerate repayment if they choose?
A: No, with the volume of members with taxes deferred, adding this option would present too much risk.
Q. If a member is due to separate or retire prior to 31 Dec 2021 will they have the balance due collected prior to separation?
A: For members separating in 2020 (during the deferral period), the debts will be established as Out of Service debts and collected through our Debt & Claims Management Office. For members separating in 2021, the remainder of the uncollected deferred amount will be collected from final pay. Any residual amount will be set up as an Out of Service debt.
CIVILIAN –
Q. On the Deferred Social Security repayment being extended to 12 months, will DFAS auto set up the collection rate?
A: DFAS will establish collections at the 1/24th rate of the total deferral amount in DCPS.
Q. Does the minimum $50 per month repayment in the DoD FMR factor into the repayments?
A : No the debt collection does not apply to those that remain employees; these are not actually debt repayments, but collection of deferred taxes. We are using the debt module in DCPS, because that is the best means of tracking, but they are not actually debts until the employee separates.
Q. Will an employee have the option to accelerate repayment if they choose?
A: No, employees will not have an option for repayment if they remain employees paid by DFAS. With over a million employees with taxes deferred, adding in additional options presents too great a risk.
Q. If an employee is due to separate or retire prior to 31 Dec 2021 will they have the balance due collected prior to separation?
A: If the employee separates for whatever reason prior to full collection PPE 12/4/21, DCPS will attempt to collect the remainder from the employee’s final pay. If unable to collect the full amount, a debt will be established.
Also, DFAS will be sending out an updated SMARTDOC to employees and will be updating the DFAS.mil Tax Deferral page with the new collection timeframe.
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