[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] ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 491 Garnishment of Postal Employee Salaries AGENCY: Postal Service. ACTION: Final rule. ----------------------------------------------------------------------- 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] BILLING CODE 7710-12-P