DFAS to process retroactive civilian-pay increase Published March 8, 2004 ARLINGTON, Va. (AFPN) -- Defense Finance and Accounting Service officials will soon begin processing the 2.1-percent retroactive pay increase for the federal civilian employees they serve. President George W. Bush signed an executive order March 3 identifying the new pay-increase percentages. The updates will be processed into the DFAS pay system as soon as they are received from personnel offices, officials said. Because of the number of general-schedule employees involved, DFAS officials said they will process the retroactive portion of the increase for prior paydays during at least two pay periods. The increase is retroactive to Jan. 11 for general-schedule employees.To maintain quality control in processing the hundreds of thousands of pay actions related to this retroactive increase, agencies and major commands will be designated to a specific pay period for processing. Because of the relatively small size of some activity types, some processing will be completed during the first pay period. The large sizes of some agencies and major commands require their pay actions be processed during two pay periods. DFAS officials will publish a timetable for the payroll changes once processing is initiated.For federal wage-system employees, DFAS said they anticipate completing all of the retroactive increases during the pay period in which the personnel action is received and processed by the pay system.