[Federal Register Volume 59, Number 170 (Friday, September 2, 1994)]
[Rules and Regulations]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21752]


[[Page Unknown]]

[Federal Register: September 2, 1994]


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POSTAL SERVICE

39 CFR Part 491

 

Garnishment of Postal Employee Salaries

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: These regulations implement the statutory provision that 
provides that the pay of employees of the United States Postal Service 
and of the Postal Rate Commission will be subject to garnishment 
orders.

EFFECTIVE DATE: October 1, 1994.

FOR FURTHER INFORMATION CONTACT: William B. Neel, Attorney, Law 
Department Mid-Atlantic Office, (202) 268-3080.

SUPPLEMENTARY INFORMATION: On October 6, 1993, Congress enacted section 
9 of Public Law 103-94, titled Garnishment of Federal Employees' Pay. 
This law is a limited waiver of the Federal Government's sovereign 
immunity to permit pay from an agency to an employee to be garnished by 
state and local garnishment orders, subject to certain limitations. 
Child support garnishment is already covered by other Federal law. On 
February 3, 1994, the President signed Executive Order 12897, which 
delegated responsibility to the Postal Service to issue implementing 
regulations for its employees and for the employees of the Postal Rate 
Commission. These regulations are in accordance with this delegation of 
authority.
    The Postal Service is designating one Authorized Agent to receive 
garnishment orders under section 9 of Public Law 103-94. This Federal 
law supersedes state law with regard to service of garnishment process. 
Accordingly, regardless of state law, legal process must be sent 
directly to, or served in person upon, the Authorized Agent named in 
these regulations. There will be only one agent for receipt of process 
for all garnishments of an employee's pay arising under state law. 
Other Postal Service employees are not authorized to receive process 
nor are they permitted to transmit process to the Authorized Agent.
    This waiver of immunity for the garnishment process confers 
jurisdiction only over an employee's pay, and does not confer 
jurisdiction over the Postal Service or the Postal Rate Commission as a 
party to a lawsuit, nor does it waive immunity for the purpose of 
orders to show cause or for sanctions such as default judgments. These 
regulations also announce a change in the agent for service of process 
for child support garnishments pursuant to 42 U.S.C. 659 and supersede 
the designations at 5 CFR 581 Appendix A III of agents to accept 
service of process on behalf of the United States Postal Service and 
the Postal Rate Commission in child support and/or alimony 
garnishments.

List of Subjects in 39 CFR Part 491

    Government employees, Postal Service, Wages.

    For the reasons stated above, in subchapter F of Chapter 1, title 
39 Code of Federal Regulations, part 491 is added as follows:
    1. The authority citation for 39 CFR part 491 continues to read as 
follows:

    Authority: 5 U.S.C. 5520a; 39 U.S.C. 401; E.O. 12897.

    2. 39 CFR Chapter 1, subchapter F, is amended by adding part 491 as 
follows:

PART 491--GARNISHMENT OF SALARIES OF EMPLOYEES OF THE POSTAL 
SERVICE AND THE POSTAL RATE COMMISSION

Sec.
491.1  Authorized Agent to receive service.
491.2  Manner of service.
491.3  Sufficient legal form.
491.4  Identification of employees.
491.5  Costs.
491.6  Response to process.
491.7  Release of information.
491.8  Execution of process.
491.9  Restrictions on garnishment.


Sec. 491.1   Authorized Agent to receive service.

    Notwithstanding the designation, in Sec. 2.2 of this title, of the 
General Counsel as agent for the receipt of legal process against the 
Postal Service, the sole agent for service of garnishment process 
directed to the pay of Postal Service employees and employees of the 
Postal Rate Commission (``employees'') is the Manager, Payroll 
Processing Branch, 1 Federal Drive, Ft. Snelling, MN 55111-9650 
(``Authorized Agent''). The Authorized Agent shall have sole authority 
to receive service of legal process in the nature of garnishment 
(hereinafter sometimes referred to as ``process'') arising under the 
law of any state, territory, or possession, or the order of a court of 
competent jurisdiction of any state, territory, or possession 
(including any order for child support and alimony). No process shall 
be effectively served until it is received by the office of the 
Authorized Agent. No other employee shall have the authority to accept 
service of such process. Service of process in conformity with Rule 
4(i) of the Federal Rules of Civil Procedure is not waived for any suit 
or action wherein the Postal Service, its officers, or employees are 
parties.


Sec. 491.2   Manner of service.

    Service of process on the Authorized Agent may be made in person or 
by certified or registered mail, with return receipt requested, at the 
address of the Authorized Agent. Service may also be made on the 
Authorized Agent by means of any private delivery service pursuant to 
its authority for the private carriage of letters under an exception to 
the Private Express Statutes, 39 U.S.C. 601-606, provided that the 
private delivery organization issues a receipt bearing the name and 
address of both the addressee and sender, as well as the date of 
delivery and the signature of the receiving agent. No garnishment is 
effectively served until it is received by the Authorized Agent 
regardless of the chosen mode of delivery. Process addressed to, 
delivered to, or in any manner given to any employee, other than the 
Authorized Agent, may, at the sole discretion of the employee, be 
returned to the issuing court marked ``Not Effectively Served.'' A copy 
of or reference to these regulations may be included. Employees are not 
authorized to redirect or forward garnishment process to the Authorized 
Agent. In the event that the address of the Authorized Agent is 
changed, mail may be forwarded from his or her last published address 
to the new official address until such time as these regulations are 
amended to reflect the new address.


Sec. 491.3   Sufficient legal form.

    No document purporting to garnish employee wages shall be deemed 
sufficient unless it can be determined from the face of the document 
that it is legal process in the nature of garnishment; that it is 
issued by a court of competent jurisdiction or an authorized official 
pursuant to an order of such a court or pursuant to state or local law, 
evidenced by a signature of the issuing person; and that it contains 
the name of the garnished party, with his or her social security 
number, orders the employing agency to withhold from pay a specific 
amount of money, specifically describes the judgment of debt or 
administrative action complete with statutory citation and contains 
specific advice as to where to send the funds withheld including the 
complete ZIP Code (ZIP+4). Documents deficient in any of these respects 
may be returned to the issuing court or authorized official inscribed 
``Insufficient as to legal form.''


Sec. 491.4  Identification of employees.

    Garnishments must be accompanied by sufficient information to 
permit prompt identification of the employee and the payments involved. 
Garnishment of an employee whose name and social security number are 
similar to but not identical with the name and social security number 
on the garnishment will not be processed. An exact match of both name 
and social security number is required in order to permit processing; 
otherwise, the garnishment will be returned marked ``Insufficient 
identifying information.'' Garnishments that are insufficient in regard 
to identifying information will not be held pending receipt of further 
information.


Sec. 491.5   Costs.

    The Postal Service's administrative costs in executing the 
garnishment action shall be added to each garnishment and the costs 
recovered shall be retained as offsetting collections.
Sec. 491.6   Response to process.

    Within 15 days after receipt of process that is sufficient for 
legal form and contains sufficient information to identify the 
employee, the Authorized Agent shall send written notice that 
garnishment process has been served, together with a copy thereof, to 
the affected employee at his or her duty station or last known address. 
The Authorized Agent shall respond, in writing, to the garnishment or 
interrogatories within 30 days of receipt of process. The Authorized 
Agent may respond within a longer period of time as may be prescribed 
by applicable state Law. Neither the Authorized Agent nor any employee 
shall be required to respond in person to any garnishment served 
according to the provisions of 5 U.S.C. 5520a and the regulations in 
this section.


Sec. 491.7   Release of information.

    No employee whose duties include responding to interrogatories to 
garnishments shall release information in response to a garnishment 
until it is determined that sufficient information, as required in 
Sec. 491.4 above, has been received in writing as part of the 
garnishment legal process. The Authorized Agent may, at his or her sole 
discretion, accept or initiate telephone inquiries concerning 
garnishments. No other employee may release any information about 
employees except in conformity with the Privacy Act of 1974, 5 U.S.C. 
552a, and the regulations in 39 CFR part 266, Privacy of Information.


Sec. 491.8   Execution of process.

    All legal process in the nature of garnishment shall be date- and 
time-stamped by the Authorized Agent when received for the purpose of 
determining the order of receipt of process that is sufficient as to 
legal form and contains sufficient information for identification of 
the employee, the Authorized Agent's date- and time-stamp shall be 
conclusive evidence. Child support and alimony garnishments will be 
accorded priority over commercial garnishments under 5 U.S.C. 5520a as 
provided in 5 U.S.C. 5520a(h)(2). Garnishments shall be executed if the 
pay cycle is open for input or, if closed, will be held until the next 
cycle.


Sec. 491.9  Restrictions on garnishment.

    Garnishments under this section shall be subject to the 
restrictions in 15 U.S.C. 1671-1677, including limits on the amounts 
that can be withheld from an employee's pay.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 94-21752 Filed 9-1-94; 8:45 am]
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