Garnishments Of Federal Benefits Flashcards
Applicability - Garnishments of Federal Benefits
Applies only to Federal benefits paid electronically via ACH
- don’t have to examine accounts to identify Federal benefits paid by treasury check (they are coded in ACH file, so they’re searchable)
Covered Transaction Types - Garnishments of Federal Benefits
1) social security
2) supplemental security income
3) veterans benefits
4) railroad retirement benefits
5) civil service retirement, etc.
Requirements - Garnishments of Federal Benefits
1) Determine the sum of protected Federal benefits deposited into account during 2 month period
2) Ensure the account holder has access to an amount equal to that sum or the current balance of the account, whichever is lower
Exemptions from coverage - Garnishments of Federal Benefits
IRS payments and child support get paid 1st and are not subject to these rules