Serving in the military gives a Servicemember an opportunity to receive a variety of benefits and pay. In addition to the regular duty pay that an enlisted person receives they also receive a variety of benefits and funds that are intended to compensate the Servicemember for their service to their country. Some of these benefits include basic allowance for quarters, also sometimes called basic allowance for housing. There is also basic allowance for rations, also referred to as food allowance, in addition to other types of military benefits. When a Servicemember receives their allowances they can direct that the payment for these allowances be directed using the allotment system.
Allotments- The allotment system is where an amount is taken from the paycheck of the military Servicemember and is directed to a specific purpose. Each of these payments is known as an allotment, and a military Servicemember can set up as many of these allotments as their pay can support. Allotments are designed to be a convenience to the military enlisted person, and they are set up to pay either organizations or individuals. The allotments are structured to deposit the money electronically where possible, or they can be designed to render a regular paper check. There are a variety of different types of allotments:
Group Financial-This is the type of allotment that can be used to pay a specific type of bill, such as a credit account, or a mortgage, or other regularly scheduled money payment. These payments can be sent to a bank, saving and loan, or other financial institution of the Servicememberâ€™s choosing. Dependent And Relative Allotments- This type of allotment is sent to relatives, your spouse or other dependents. It can even be directed to a divorced spouse. This type of allotment can also be at times involuntary, where it is the result of a court order such as in a divorce, or when a Servicemember has their wages garnisheed.
Insurance- This type of allotment is used to pay the premium on an insurance policy of some type; it can be a policy covering the Servicemember or members of the Servicemembers immediate family. All types of allotments can be started or stopped at any time within reason, and can be set up through the Service memberâ€™s command or payment disbursing office located on base.