Notice to Account Holder for Garnishment of Accounts Containing Federal Benefit Payments

ICR 202309-1505-003

OMB: 1505-0230

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2023-09-28
ICR Details
1505-0230 202309-1505-003
Received in OIRA 202005-1505-001
TREAS/DO
Notice to Account Holder for Garnishment of Accounts Containing Federal Benefit Payments
Extension without change of a currently approved collection   No
Regular 09/28/2023
  Requested Previously Approved
36 Months From Approved 09/30/2023
487,750 130,250
76,687 23,354
0 0

On May 12, 2013, the Department of the Treasury, Social Security Administration, Department of Veterans Affairs, Railroad Retirement Board and the Office of Personnel Management (Agencies) published a final rule, which governed the garnishment of certain Federal benefit payments that are directly deposited to accounts at financial institutions. Social Security benefits, Supplemental Security Income benefits, VA benefits, Federal Railroad retirement benefits, Civil Service Retirement System and Federal Employee Retirement System benefits are exempt under Federal Law from garnishment orders. The final rule gave force and effect to the Federal anti-garnishment statutes. The rule also addressed the hardships that recipients of federal benefit payments encountered when a financial institution placed a freeze on an account containing certain types of exempt Federal benefit payments that had been directly deposited, and the difficulties that financial institutions had in determining whether funds deposited into an account are exempt from garnishment. The primary goals of the rule were (1) to ensure that benefit recipients have full and customary access to exempt funds; (2) to protect financial institutions from liability when, having received a garnishment order for an account holder receiving exempt Federal benefit payments, they allow the account holder access to exempt funds in the account; and (3) to establish straightforward, uniform, cost effective procedures addressing the extent to which financial institutions may, pursuant to garnishment orders, freeze or seize funds in accounts that contain Federal benefits. The collection of information in the Final Rule is found in §§ 212.6 Rules and procedures to protect benefits.

US Code: 12 USC 1786 Name of Law: Federal Credit Union Act
   US Code: 12 USC 1818 Name of Law: Federal Deposit Insurance Act
  
None

Not associated with rulemaking

  88 FR 43419 07/07/2023
88 FR 66959 09/28/2023
No

  Total Request 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 487,750 130,250 0 0 357,500 0
Annual Time Burden (Hours) 76,687 23,354 0 0 53,333 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No
There are no program changes, however the estimated burden for Sections 212.6 and 212.11 has increased due to updated methodology for calculating burden. The new methodology presumes there are 865 million FDIC insured accounts (as stated in FDIC’s 2022 Annual Report) and estimates that 0.25% of these involve garnishments issued on accounts with direct deposit of federal benefits (derived and estimated upwards from data in a July 2008 Social Security Office of Inspector General Congressional Response Report, A-15-08-28031). The methodology also increases the percentage of accounts estimated to have funds in excess of the protected amount (due to inflation) but decreases the length of time to process the notices (due to improvements in information technology).

$0
No
    No
    No
No
No
No
No
Katherine Loevinger 771 210-9872 katherine.loevinger@treasury.gov

  No

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:
 
 
 
 
 
 
 
    (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;
 
 
 
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.
09/28/2023


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