11. Personal Financial Management

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11. Personal Financial Management
2012-07-08 14:52:16
Navy Personal Financial Management

a. What is Goal setting? b. What is My Pay? c. What is an LES? d. What is DDS and what is required before leaving for Basic Training? e. Why is maintaining good credit important?
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  1. MyPay
    MyPay is an automated system that puts you in control od your pay account. It allows you to make certain changes to your account 24/7 to change or review your current information or to check your recent pay statements. Service members are provided an initial PIN for their first visit; you must then change to a private PIN for continued access. MyPay is available online at https://mypay.dfas.mil or via DFAS site www.dfas.mil or by phone at 877-363-3677. If you are not able to access MyPay, contact your local Disbursing Office immediately.
  2. What is an LES?
    The LES is a monthly statement showing all pay changes and information for the month including entitlements (pay and allowances), deductions and allotments, and pay-related remarks. The LES contains the following summary:

    Section A - (Personal Information): Contains information that specifically identifies you, such as you full name, Secial Security Number (SSN), pay grade, pay base date, years of service, and ETS.

    Section B,C,D,E - (Entitlements/Deductions/Allotments/Summary): Lists the compensation that makes up your monthly pay, such a pay, allowances, taxes, deductions, garnishments (if any), and allotments. This section allows you to see exactly how your take home pay is calculated. Date of initial entry into military service (DIEMS) is the date you signed your contract committing to the military. The type of military retirement plan for which you are eligible is shown in "RETPLAN".

    Section F - (Leave Summary): This is your beginning leave balance, the leave you have earned from the beginning of the fiscal year (1 Oct), and the leave you have used, cashed in or lost as a result of exceeding the maximum balance. Be certain to check "leave used" to make sure it is correct. Also check the "use/lose" block so you do not exceed the maximum allowable accrued leave.

    Section G,H,I - (Tax Summary): This is the tax paid for the period and for the year. It shows the number of exemptions you claim for tax withholding. It is important to keep you December LES as a backup for other IRS documents (like a W-2) to use when doing your income tax preparation. Also, check the M/S and EX block listed in section G and I. This shows the marital status and number of exemptions you are surrently claiming. Most military members enter the service "S 00" (single claiming 0), and many forget to change this once they marry or have children. Changing this to the correct status can have a big effect on the amount of pay you receive. Many members find a significant increase in their monthly check when these items are correctly adjusted.

    Section J - (Pay Data Summary): The specific information used to determine the allowances you are entitled to receive. The data includes dependent information, the zip code of your duty statiom, the amount you pay in rent if living "out-in-town" and unit identification numbers. Verify the zip code information to ensure that you are receiving the proper BAH for the area in which you are living.

    Section K - (Thrift Savings Plan Summary): Information on TSP contributions. The rate boxes show percentage of pay specified for contribution. The current boxes show percentage of pay specified for contributed this pay period while the YTD shows the amount for the year. You can also view your TSP account at www.TSP.gov.

    Section L - (Remarks): Notes from DFAS regarding your mmonthly statement or other information, such as the starting or stopping of allotments.
  3. What is DDS and what is required before leaving for Basic Training?
    All members of the Navy are required to participate in DDS and be briefed on the contents of SECNAVINST 7200.17. You must understand that failure to perform the duty of establishing and maintaining a DDS account, in the absence of a specific exemption, may subject you to administrative and/or disciplinary action under the Uniform Code of Military Justice. You are highly encouraged to open an account with a loacal financial institution prior to departing for RTC. All financial institutions have the Standard Form 1199A Direct Deposit Sign-up Form and will assist you in completing the form properly. This form is the accompany you to RTC. If you will have the opportunity to open an account at various financial institutions once you arrive.