Retiree AOP

DFAS describes retiree Arrears of Pay as a one-time payment—often less than one month’s pay—covering the prorated final month of retired pay and other amounts actually owed at death. It is not SBP or another continuing death benefit.

1. Report the retiree’s death so DFAS can stop and audit retired pay.
2. Expect DFAS to reclaim payments issued for periods after death before computing AOP.
3. Identify the designated AOP beneficiary; if none exists, federal order-of-precedence rules apply.
4. Submit SF 1174 with the required death certificate and supporting information.
5. Preserve the audit, claim, payment and tax records.

Keep AOP separate from SBP

A surviving spouse or child may need to submit both an AOP claim and a separate SBP annuity packet. One does not initiate the other.

Official sources

• DFAS — Claim a Retiree’s Arrears of Pay
• DFAS — AOP Beneficiary

Source status: SRC-142; SRC-143 verified October 4, 2026. Survivor eligibility depends on the deceased person’s status, elections, relationship records, dates, and the particular benefit program.