Mandated direct deposit for Federal Employees?greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread |
I just heard from a secondary source that all Federal Employees are required to use direct deposit starting 01/01/1999. This info came from a postal employee through someone I know. Any confirmation out there?MoVe Immediate
-- MVI (vtoc@aol.com), January 03, 1999
$ $ $ 19990103 MVI: Does this item respond to your query? Regards, Bob Mangus $ $ $ Direct Deposit of Payroll Payments to Banks and Other Financial Institutions - Approved March 8, 1996{!}
31.01.07.M1
Direct Deposit of Payroll Payments to Banks and Other Financial Institutions
Approved March 8, 1996
Supplements System Regulation 31.01.07
1. MANDATORY PARTICIPATION
1.1. Participation in the Federal Reserve's Automated Clearing House System for direct deposit of paychecks is mandatory for all full-time and part-time budgeted employees (including graduate assistants), unless a Direct Deposit Authorization Form is submitted to claim exemption under provisions contained in state law and this Texas A&M University rule. Wage employees (including student workers) are eligible and must complete a Direct Deposit Authorization Form if they elect to participate in direct deposit. Wage employees, including student workers, may also participate in direct deposit.
1.2 Participation in direct deposit will not affect the regular payroll schedule.
1.3 Direct Deposit Authorization Forms are available from the University Budget and Payroll Services Office.
2. EXEMPTION FROM PARTICIPATION
2.1 There are two conditions under which an employee can request exemption from participation in the direct deposit process:
(1) inability to establish a qualifying account at a financial institution, or
(2) payment by direct deposit would be impractical and/or more costly than payment by check.
2.2 To claim an exemption from or to discontinue participation in the direct deposit process, employees must submit a Direct Deposit Authorization Form to the B&PSO. The request must be based on either of the two authorized reasons for exemption as stated on the Form.
3. ALTERATIONS
Alteration of authorization statements on the direct deposit form is prohibited. The B&PSO will not process enrollment forms that are submitted with alteration. The employee will be asked to complete new form.
4. WITHHOLDING DIRECT DEPOSIT PAYMENTS
Texas A&M University has the authority to stop electronic transfers to an employee's account without advance notice. Application of this authority may include, but is not limited to, the following:
(1) withholding payment until final approval has been obtained for corresponding Form 500.
(2) to comply with Federal tax levies and to insure that correct amounts relating to the tax levies are paid to the Internal Revenue Service and the employee.
(3) to comply with court-ordered deductions and insure the correct amounts relating to the court ordered deduction are paid to the legally designated payee and the employee.
5. DEPOSIT TO ONE INSTITUTION
Employee participation is limited to deposit of all of net pay in one account in one financial institution. Employees may have their paychecks deposited in any financial institution within the United States which uses the Federal Reserve's Automated Clearing House System.
6. NEW EMPLOYEE PROCESSING
New employees who enroll in the direct deposit process should be aware that it may be at least forty-five days before their first electronic payment is processed. This time will be required for completing the pre-noting process to test proper routing through the Automated Clearing House System. Paychecks will be delivered through the appropriate ADLOC during the interim.
7. TRANSFERRING EMPLOYEES
Employees transferring from a non-Texas A&M University System state agency will be required to complete a new Direct Deposit Authorization form.
OFFICE OF RESPONSIBILITY:
Budget and Payroll Services Office
This University Rule replaces PPM 3.3.9.
$ $ $ RMangus $ $ $
-- Robert Mangus (rmangus@mail.netquest.com), January 03, 1999.
Robert, does this mean that only faculty, staff, and students of Texas A&M are affected? It appears to be a university rule.MoVe Immediate
-- MVI (vtoc@aol.com), January 03, 1999.
# # # 19990103This looks like some sort of Federal Reserve "is mandatory."
"1. MANDATORY PARTICIPATION 1.1. Participation in the Federal Reserve's Automated Clearing House System for direct deposit of paychecks is mandatory for all full-time and part-time budgeted employees (including graduate assistants), unless ..."
I'm still looking/searching for the original Fed directive.
Regards, Bob Mangus # # #
-- Robert Mangus (rmangus@mail.netquest.com), January 03, 1999.
What I think it is saying is that the direct deposit for aggies must go into a bank or institution that USES the Federal Reserve's ACH system.MoVe Immediate.
-- MVI (vtoc@aol.com), January 03, 1999.
$ $ $ 19990103 Oops ... that link should've been ...Federal Payments Go Electronic in 1999 ( eff. January 2, 1999 )
Regards, Bob Mangus $ $ $
-- Robert Mangus (rmangus@mail.netquest.com), January 03, 1999.
Yeppers, looks like its a done deal. I'm skeptical of their timing and motivation (Y2K and bank runs). Looks like there is an out though:"The regulation includes an automatic waiver from the EFT requirement for a person who does not have an account at a financial institution. Payment recipients who later open accounts can then decide whether to sign up for electronic payments or continue receiving paper checks."
"Some other payment recipients can opt to continue receiving paper checks: individuals for whom direct deposit would cost more than receiving checks or those with a physical or mental disability or a geographic, language or literacy barrier."
Thanks Bob!
MoVe Immediate
-- MVI (vtoc@aol.com), January 03, 1999.
Bob, can you give me the URL?BTW, did you notice the Year 2000 link on this SAME PAGE?
Thanks again!
MoVe Immediate
-- MVI (vtoc@aol.com), January 03, 1999.
i'm not surprised - as a local government employee we've been encouraged to have automatic deposit. if we don't we get our pay a day later than the direct deposit folks. this was stated as a direct results of upgrading the payroll system.
-- Sharon Schultz (shalom100@aol.com), January 03, 1999.