Most enlisted Servicemembers use different allotments to utilize their benefits and pay. There are a number of different benefits for the modern United States Military Armed Forces Servicemember. You have a basic allowance for meals or subsistence, a basic allowance for living or housing, and a basic allowance for pay. It is intended that you can choose where your BAQ and BAS allowances are paid, and to whom they are paid for. An allotment is basically any payment or a specific amount of money that you designate to be paid for a specific purpose. You can have an allotment that you set up for a specific reason to be paid at a certain time for a certain purpose. An allotment is made so it is a single payment per allotment, you cannot pay two or more people with the same allotment, each will need their own. Allotments come in two varieties, discretionary or by voluntary, or non discretionary or involuntary.
The military calls payments from a Servicemembers account allotments, and while it sounds complicated, it really is not. You can set up allotments to pay individuals or to pay organizations such a bills, banks, finances companies or other groups. This is a method of paying bills and debts and using allotments can be a real convenience to the Servicemember. There are a number of different types of allotments and each of them are a little bit different and have to be set up a little bit differently. An allotment can be set up to pay an individual, and ones that are set up that way involve using either direct deposit, or through the use of a regular paper physical check. Other types of allotments are designed to pay for organizations but these types of allotments have to be set up using direct deposit or through some sort of electronic transfer. This is simply to make sure that money is headed to where it is supposed to go. Most often a military Servicemember simply has a specific amount or sum of money deducted from their monthly paycheck. The different types of allotments include:
Dependent Allotments- These are allotments that you specify for relatives or dependents. These can be to a spouse, dependent, or a relative. It can also sometimes be involuntary such as a court order for support after a divorce or child support reasons.
Financial Allotments- These are allotments designed to send specific sums of money to banks, credit companies, and other types of financial institutions for the benefit of Servicemembers. These can be utilized for a variety of different reasons.
Rent Allotments- This is a simply self evident, it pays for your mortgage or rent. You can set this up to pay for your own home or for the home dwelling for relatives and dependants.