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Date: February 8, 2011

Bulletin Number: 1055

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Subject

Refunds for Deduction Code 101 (Bonds)

Purpose

To notify agencies that OSC plans to process refunds of previously withheld bond deductions automatically via PayServ.

Affected Employees

Employees who, as identified by National Bond and Trust, had bond deductions withheld, but had not yet accumulated sufficient funds to purchase a bond prior to OSC’s termination of Deduction Code 101 on November 18, 2010.

Effective Date(s)

Paychecks dated 03/10/11 (Institution)
Paychecks dated 03/16/11 (Administration)

Background

As previously announced in Payroll Bulletin Number 1015, the U.S. Department of the Treasury ended the sale of paper U.S. Savings Bonds through payroll deduction effective January 1, 2011 as part of a “go green, save green” initiative.

OSC Actions

OSC will process the bond deduction refunds in the Institution paychecks dated 03/10/11 and Administration paychecks dated 03/16/11.

The refund amount will be reflected on Check/Advice Statements under “AFTER TAX DEDUCTIONS”.   The amount will appear as a positive amount under the “Refund” field and as a negative amount under the “YTD” field.

Agency Actions

Notify affected employees.

Questions

Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.