Fiscal Service April 2010 – Federal Register Recent Federal Regulation Documents

This is Supplement No. 12 to the Treasury Department Circular 570, 2009 Revision, published July 1, 2009, at 74 FR 31536.

This is Supplement No. 10 to the Treasury Department Circular 570, 2009 Revision, published July 1, 2009, at 74 FR 31536.

Treasury, SSA, VA, RRB and OPM (Agencies) are publishing for comment a proposed rule to implement statutory restrictions on the garnishment of Federal benefit payments. The Agencies are taking this action in response to recent developments in technology and debt collection practices that have led to an increase in the freezing of accounts containing Federal benefit payments. The proposed rule would establish procedures that financial institutions must follow when a garnishment order is received for an account into which Federal benefit payments have been directly deposited. The proposed rule would require financial institutions that receive a garnishment order for an account to determine whether any Federal benefit payments were deposited to the account within 60 calendar days prior to receipt of the order and, if so, would require the financial institution to ensure that the account holder has access to an amount equal to the sum of such payments in the account or to the current balance of the account, whichever is lower.