Understanding the retirement pay process for Reserve Component Retirees

By Maj. Alisia Mahatoo, Army Retirement Services, U.S. Army Reserve      August 2025

Whether you are newly retired or already enjoying retirement (regular, non-regular, or disability), it is important to stay informed about updates that streamline and enhance the retirement pay process. In 2023, Defense Finance and Accounting Services (DFAS) launched the Automated Army Establishment (AAE) SmartDocs system. This initiative introduced two key email notifications to improve communication and reduce confusion during the transition to retirement. 

The first email notification informs Retired Soldiers that the Army has transmitted your retired pay data to DFAS.

The second email notification informs Retired Soldiers that DFAS processed the retired pay package and scheduled your initial pay. You will also receive a welcome letter by mail that provides a detailed breakdown of your retired pay.

Specifically for our Gray Area Retirees (GARs), here is what to expect at the beginning of the month of your 59th birthday. First, you will receive a DFAS SmartDoc email that informs you to apply for your retired pay through your Branch of Service. This message will direct you to the DFAS GARs webpage which outlines the application process for retired pay and important timelines.

Additionally, because Gray Area Retirees are not in immediate receipt of retired pay, DFAS created a special “Future Retiree” myPay account. This account must be

activated with a current email address to receive critical messages.

Keeping your email current is vital, whether you are retiring soon or guiding a fellow Soldier. Remember, to receive AAE SmartDocs, including retirement pay status, every Retired Soldier must maintain a valid email address in myPay. For Gray Area Retirees especially, activating your “Future Retiree” account and keeping your contact information current is essential.

These initiatives were launched in late 2023 to close the information gaps and ensure a smooth transition into retired pay. Sharing this knowledge with your lifelong Army Battle Buddies is one way to serve those who served.