OPM Garnishment Regulations re: Federal Employees

The following garnishment regulations from the Office of Personnel
Management (OPM) provide the following information on income-withholding
re: Federal employees:

-   What income may be withheld,

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-   What income may not be withheld, and

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-   Exclusions when determining disposable income.

> \[Code of Federal Regulations\]
>
> \[Title 5, Volume 1, Parts 1 to 699\]
>
> \[Revised as of January 1, 2000\]
>
> From the U.S. Government Printing Office via GPO Access
>
> \[CITE: 5CFR581.103\]
>
> \[Page 613-615\]
>
> **PERSONNEL**

**CHAPTER I\--OFFICE OF PERSONNEL MANAGEMENT**

PART 581\--PROCESSING GARNISHMENT ORDERS FOR CHILD SUPPORT AND/OR
ALIMONY\--Table of Contents

Subpart A\--Purpose and Definitions

Sec. 581.103 Moneys which are subject to garnishment.

\(a\) For the personal service of a civilian employee obligor:

\(1\) Saved pay;

\(2\) Retained pay;

\(3\) Night differentials;

\[\[Page 614\]\]

\(4\) Sunday and holiday premium pay;

\(5\) Overtime pay;

\(6\) Standby duty pay, administratively uncontrollable overtime pay,
and availability pay;

\(7\) Environmental differentials;

\(8\) Hazardous duty pay;

\(9\) Tropical differentials;

\(10\) Recruitment incentives, recruitment and relocation bonuses and
retention allowances;

\(11\) Equalization allowance;

\(12\) Any payment in consideration of accrued leave;

\(13\) Severance pay;

\(14\) Sick pay;

\(15\) Physicians comparability allowances;

\(16\) Special pay for physicians and dentists;

\(17\) Amounts paid pursuant to a personal services contract where the
contractor recipient performed the services and received the payments in
the capacity as a federal employee;

\(18\) Merit pay;

\(19\) Incentive pay;

\(20\) Cash awards, including performance-based cash awards;

\(21\) Agency and Presidential incentive awards (except where such award
is for making a suggestion);

\(22\) Senior Executive Service rank and performance awards;

\(23\) Moneys due for the services of a deceased employee obligor,
including:

\(i\) Overtime or premium pay;

\(ii\) Amounts due as refunds of pay deductions for United States
savings bonds;

\(iii\) Payments for accumulated and current accrued annual or vacation
leave as provided for in section 5581 of title 5 of the United States
Code;

\(iv\) Retroactive pay as provided for in section 5344(b)(2) of title 5
of the United States Code; and

\(v\) Amounts of checks drawn for moneys due which were not delivered by
the governmental entity to the employee obligor prior to the employee
obligor\'s death or which were not negotiated and returned to the
governmental entity because of the death of the employee obligor, except

those moneys due that are listed in Sec. 581.104(i);

\(24\) Locality-based comparability payments or continued rate
adjustments;

\(25\) Staffing differentials;

\(26\) Supervisory differentials;

\(27\) Special pay adjustments for law enforcement officers in selected
cities;

\(28\) Advances in pay; and

\(29\) Voluntary separation incentive payments.

\(b\) For the personal service of an obligor in the uniformed services
of the United States:

\(1\) Basic pay (including service academy cadet and midshipmen pay);

\(2\) Special pay (including enlistment and re-enlistment bonuses);

\(3\) Lump sum reserve bonus;

\(4\) Continuation pay for physicians and dentists;

\(5\) Special pay for physicians, dentists, optometrists, and
veterinarians;

\(6\) Incentive pay;

\(7\) Variable incentive pay;

\(8\) Inactive duty training pay;

\(9\) Administrative duty pay;

\(10\) Academy official pay (other than personal money allowances);

\(11\) Any payments made in consideration of accrued leave (basic pay
portion only);

\(12\) Readjustment pay;

\(13\) Disability retired pay;

\(14\) Severance pay (including disability severance pay);

\(15\) Cash awards (NOAA Corps);

\(16\) Special separation benefits; and

\(17\) Voluntary separation incentives.

\(c\) For obligors generally:

\(1\) Periodic benefits, including a periodic benefit as defined in
section 428(h)(3) of title 42 of the United States Code, title II of the
Social Security Act, to include a benefit payable in a lump sum if it is
commutation of, or a substitute for, periodic payments; or other
payments to these individuals under the programs established by
subchapter II of chapter 7 of title 42 of the United States Code (Social
Security Act); and payments under chapter 9 of title 45 of the United

States Code (Railroad Retirement Act) or any other system, plan, or fund
established by the United States (as defined in section 662(a) of title
42 of the United States Code) which provides for the payment of:

\(i\) Pensions;

\[\[Page 615\]\]

\(ii\) Retirement benefits;

\(iii\) Retired/retainer pay;

\(iv\) Annuities; and

\(v\) Dependents\' or survivors\' benefits when payable to the obligor;

\(2\) Refunds of retirement contributions where an application has been
filed;

\(3\) Amounts received under any federal program for compensation for
work injuries; and

\(4\) Benefits received under the Longshoremen\'s and Harbor Workers\'
Compensation Act.

\(5\) Compensation for death under any federal program, including death
gratuities authorized under 5 U.S.C. 8133(f); 5 U.S.C. 8134(a); Pub. L.
103-332, section 312; and Pub. L. 104-208, section 651.

\(6\) Any payment under any federal program established to provide
"black lung"\' benefits;

\(7\) Any payment by the Secretary of Veterans Affairs as compensation
for a service-connected disability paid by the Secretary to a former
member of the Armed Forces who is in receipt of retired or retainer pay
if the former member has waived either the entire amount or a portion of
the retired or retainer pay in order to receive such compensation. In
such cases, only that part of the Department of Veterans Affairs payment
that is in lieu of the waived retired pay or waived retainer pay is
subject to garnishment.

\[45 FR 85667, Dec. 30, 1980, as amended at 48 FR 26279, June 7, 1983;
55

FR 1356, Jan. 16, 1990; 56 FR 36723, Aug. 1, 1991; 58 FR 35846, July 2,

1993; 59 FR 66154, Dec. 23, 1994; 61 FR 3544, Feb. 1, 1996; 63 FR 14758,

Mar. 26, 1998\]

\[Code of Federal Regulations\]

\[Title 5, Volume 1, Parts 1 to 699\]

\[Revised as of January 1, 2000\]

From the U.S. Government Printing Office via GPO Access

\[CITE: 5CFR581.104\]

\[Page 615-616\]

**PERSONNEL**

**CHAPTER I\--OFFICE OF PERSONNEL MANAGEMENT**

PART 581\--PROCESSING GARNISHMENT ORDERS FOR CHILD SUPPORT AND/OR
ALIMONY\--Table of Contents

Subpart A\--Purpose and Definitions

Sec. 581.104 Moneys which are not subject to garnishment.

\(a\) Payments made pursuant to the provisions of the Federal Tort
Claims Act, as amended, sections 1346(b) and 2671 et seq., of title 28
of the United States Code;

\(b\) Payments or portions of payments made by the Department of
Veterans Affairs pursuant to sections 501-562 of title 38 of the United
States Code, in which the entitlement of the payee is based on
non-service-connected disability or death, age, and need;

\(c\) Refunds and other payments made in connection with overpayments or
erroneous payments of income tax and other taxes levied under title 26
of the United States Code;

\(d\) Grants;

\(e\) Fellowships;

\(f\) Education and vocational rehabilitation benefits for veterans and
eligible persons under chapters 30, 31, 32, 35, and 36 of title 38,
United States Code, and chapters 106 and 107 of title 10, United States
Code;

\(g\) Contracts, except where the contractor recipient performed
personal services and received payments in his/her capacity as an
employee of a governmental entity; and

\(h\) Reimbursement for expenses incurred by an individual in connection
with his/her employment, or allowances in lieu thereof, and other
payments and allowances, including, but not limited to:

\(1\) In the case of civilian employees:

\(i\) Uniform allowances;

\(ii\) Travel and transportation expenses (including mileage
allowances);

\(iii\) Relocation expenses;

\(iv\) Storage expenses;

\(v\) Post differentials;

\(vi\) Foreign areas allowances;

\(vii\) Education allowances for dependents;

\(viii\) Separate maintenance allowances;

\(ix\) Post allowances and supplementary post allowances;

\(x\) Home service transfer allowances;

\(xi\) Quarters allowances;

\(xii\) Cost-of-living allowances (COLA), when applicable to an employee
in a foreign area or an employee stationed outside of the continental
United States or in Alaska;

\(xiii\) Remote worksite allowance; and

\(xiv\) Per diem allowances.

\(2\) In the case of members of the uniformed services:

\(i\) Position pay (Navy only);

\(ii\) Basic allowance for quarters;

\(iii\) Basic allowance for subsistence;

\(iv\) Station allowances;

\(v\) Armed Forces health professions scholarship stipends;

\(vi\) Public Health Service scholarship stipends;

\(vii\) Travel and transportation allowances;

\(viii\) Dislocation allowances;

\[\[Page 616\]\]

\(ix\) Family separation allowances;

\(x\) ROTC subsistence allowance;

\(xi\) Allowance for recruiting expenses;

\(xii\) Education allowances for dependents;

\(xiii\) Clothing allowances for enlisted personnel;

\(xiv\) Uniform allowances; and

\(xv\) Personal money allowances for General and Flag officers, and for
the Surgeon General of the United States.

\(3\) In the case of volunteers serving under either the Domestic
Volunteer Service Act or the Peace Corps Act, all allowances, including,
but not limited to, readjustment allowances, stipends, and
reimbursements for out-of-pocket expenses.

\(i\) Moneys due a deceased employee obligor where the amounts are
reimbursement for expenses incurred by the deceased employee in
connection with his/her employment, or allowances in lieu thereof,
including:

\(1\) Per diem instead of subsistence, mileage, and amounts due in
reimbursement of travel expenses, including incidental and miscellaneous
expenses in connection therewith;

\(2\) Allowances on change of official station;

\(3\) Quarters allowances; and

\(4\) Cost-of-living allowances (COLA), when applicable as a result of
the deceased employee obligor\'s having been in a foreign area or
stationed outside of the continental United States or in Alaska.

\(j\) Supplemental Security Income (SSI) payments made pursuant to
sections 1381 et seq., of title 42 of the United States Code (title XVI
of the Social Security Act).

\[45 FR 85667, Dec. 30, 1980, as amended at 48 FR 26280, June 7, 1983;
55

FR 1356, Jan. 16, 1990; 56 FR 36724, Aug. 1, 1991; 58 FR 35846, July 2,

1993; 60 FR 5044, Jan. 25, 1995; 63 FR 14758, Mar. 26, 1998\]

\[Code of Federal Regulations\]

\[Title 5, Volume 1, Parts 1 to 699\]

\[Revised as of January 1, 2000\]

From the U.S. Government Printing Office via GPO Access

\[CITE: 5CFR581.105\]

\[Page 616-617\]

**PERSONNEL**

**CHAPTER I\--OFFICE OF PERSONNEL MANAGEMENT**

PART 581\--PROCESSING GARNISHMENT ORDERS FOR CHILD SUPPORT AND/OR
ALIMONY\--Table of Contents

Subpart A\--Purpose and Definitions

Sec. 581.105 Exclusions.

In determining the amount of any- "moneys due from, or payable by, the
United States"\' to any individual, there shall be excluded amounts
which:

\(a\) Are owed by the individual to the United States, except that an
indebtedness based on a levy for income tax under section 6331 of title
26 of the United States Code, shall not be excluded in complying with
legal process for the support of minor children if the legal process was
entered prior to the date of the levy;

\(b\) Are required by law to be deducted from the remuneration or other
payment involved, including, but not limited to:

\(1\) Amounts withheld from benefits payable under title II of the
Social Security Act where the withholding is required by law;

\(2\) Federal employment taxes;

\(3\) Amounts mandatorily withheld for the United States Soldiers\' and
Airmen\'s Home;

\(4\) Fines and forfeitures ordered by a court-martial or by a
commanding officer; and

\(5\) Amounts deducted for Medicare;

\(c\) Are properly withheld for Federal, State, or local income tax
purposes, if the withholding of the amounts is authorized or required by
law and if amounts withheld are not greater than would be the case if
the individual claimed all dependents to which he/she were entitled. The

withholding of additional amounts pursuant to section 3402(i) of title
26 of the United States Code may be permitted only when the individual
presents evidence of a tax obligation which supports the additional
withholding;

\(d\) Are deducted as health insurance premiums, including, but not
limited to, amounts deducted from civil service annuities for Medicare
where such deductions are requested by the Health Care Financing
Administration;

\(e\) Are deducted as normal retirement contributions, not including
amounts deducted for supplementary coverage. For purposes of this
section, all amounts contributed under sections 8351 and 8432(a) of
title 5 of the United States Code to the Thrift Savings Fund are deemed

to be normal retirement contributions. Amounts withheld as Survivor
Benefit Plan or Retired Serviceman\'s Family Protection Plan payments
are considered to be normal retirement contributions. Except as provided
in this paragraph, amounts voluntarily contributed toward additional
retirement benefits are considered to be supplementary; or

\[\[Page 617\]\]

\(f\) Are deducted as normal life insurance premiums from salary or
other remuneration for employment, not including amounts deducted for
supplementary coverage. Both Servicemen\'s Group Life Insurance and
"Basic Life" Federal Employees\' Group Life Insurance premiums are

considered to be normal life insurance premiums; all optional Federal
Employees' Group Life Insurance premiums and life insurance premiums
paid for by allotment, such as National Service Life Insurance, are
considered to be supplementary.

\[45 FR 85667, Dec. 30, 1980, as amended at 48 FR 26280, June 7, 1983;
55

FR 1356, Jan. 16, 1990; 63 FR 14758, Mar. 26, 1998\]