Garnishment of Accounts Containing Federal Benefit Payments

Forms and Documents

Document Name	Status
Garnishment_Supporting_Stmnt 2013 Final Rule REV Mar 5 13.docx Supporting Statement A	2013-03-07
Burden Calc for #B VER Mar 5 2013.doc Supplementary Document	2013-03-07
burden hour calc FINAL RULE REV MAR 5 2013 # A.doc Supplementary Document	2013-03-07

IC Document Collections

IC ID	Document Title	Status
196153	Notice of Right to Garnish Federal Benefits to a Child Support Order Sent to a Financial Institution Instruction	Modified
191955	Notice to Account Owner and Record Retention Instruction	Modified

ICR Details

OMB Control No: 1505-0230	ICR Reference No: 201402-1505-001
Status: Historical Active	Previous ICR Reference No: 201102-1505-003
Agency/Subagency: TREAS/DO	Agency Tracking No:
Title: Garnishment of Accounts Containing Federal Benefit Payments
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/19/2014
	Date Received in OIRA: 02/19/2014
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	02/28/2017	36 Months From Approved	02/28/2014
Responses	140,000	0	565,000
Time Burden (Hours)	24,167	0	130,417
Cost Burden (Dollars)	0	0	0

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Abstract: Several Agencies are publishing a regulation to implement statutory restrictions on the garnishment of Federal benefit payments. Social Security benefits, Supplemental Security Income benefits, Veterans’ benefits and Federal Civil Service retirement benefits are exempt under Federal Law from garnishment orders. The intent of the Agencies is to address the hardships that recipients of federal benefits are encountering when financial institutions freeze an account and the difficulties that financial institutions have in determining whether funds deposited in an account are exempt from garnishment. The proposed rule establishes straightforward, uniform procedures that financial institutions must follow when a garnishment order is received for an account into which Federal benefit payments have been directly deposited. Financial institutions that comply with the required procedures are given a safe harbor under the rule. The rule requires a financial institution to review the account, to determine if any exempt benefit payments have been directly deposited within the 60 calendar days prior to the receipt of the garnishment order, and, if so, requires the financial institution to ensure that the account holder has access to a protected amount of funds in the account. Once the account review is completed the financial institution must notify the accountholder of the receipt of the garnishment order and provide certain additional information. In addition, a financial institution must maintain certain records of account activity and actions taken in response to garnishment orders sufficient to demonstrate compliance with the rule.

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Authorizing Statute(s): US Code: 12 USC 1818 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 1786 Name of Law: Federal Credit Union Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1505-AC20	Final or interim final rulemaking	78 FR 32099	05/29/2013

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Notice to Account Owner and Record Retention
Notice of Right to Garnish Federal Benefits to a Child Support Order Sent to a Financial Institution

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	140,000	565,000	0	-425,000	0	0
Annual Time Burden (Hours)	24,167	130,417	0	-106,250	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Regulations

Short Statement: Treasury is reducing the burden estimate for producing the notice to reflect that fewer notices will be sent.

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Annual Cost to Federal Government:

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/07/2013

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