Garnishments Of Federal Benefits

Question 1

Applicability - Garnishments of Federal Benefits

Answer 1

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)

Question 2

Covered Transaction Types - Garnishments of Federal Benefits

Answer 2

1) social security
2) supplemental security income
3) veterans benefits
4) railroad retirement benefits
5) civil service retirement, etc.

Question 3

Requirements - Garnishments of Federal Benefits

Answer 3

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

Question 4

Exemptions from coverage - Garnishments of Federal Benefits

Answer 4

IRS payments and child support get paid 1st and are not subject to these rules