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Direct Deposit of Pay by Electronic Funds Transfer

Date:  Thu, 17 Dec 1998
To:  All Department of the Interior Employees
From:  John Berry, Assistant Secretary for Policy, Management and Budget
Subject:  Direct Deposit of Pay by Electronic Funds Transfer

Electronic Funds Transfer (EFT) is the most cost effective way for the Government to make payments to its employees. Most Department employees voluntarily use electronic funds transfer already and enjoy the convenience, safety and reliability that direct deposit of their pay provides. Soon, the Debt Collection Improvement Act will require Federal employees to be paid by electronic funds transfer unless a waiver is requested and granted. The purpose of this memorandum is to implement the provisions of this law in the Department.

Beginning January 2, 1999, employee salaries, awards and bonuses will be paid by electronic funds transfer. By that date, every employee must elect to be enrolled for electronic funds transfer or have a waiver of the requirement approved by his/her servicing Human Resources Office.

Employees who currently have direct deposit of their pay by electronic funds transfer already meet the requirements of the law and do not have to do anything at this time.

Employees who are not currently using electronic funds transfer should elect to do so immediately. Servicing Human Resources Offices have the necessary form for this purpose and can explain the simple procedures involved.

Individual employees may apply for a waiver of the electronic funds transfer requirement if they believe that payment by electronic funds transfer would impose a hardship due to physical or mental disability or a geographic, language or literacy barrier, or other reason.

Applications for a waiver must be in writing and clearly state the reason(s) for the request.

New electronic funds transfer election forms, or applications for waiver, must be filed with servicing Human Resources Offices by January 2, 1999.

New employees entering on duty after January 2, 1999 must be provided with the necessary form to elect electronic funds transfer, as well as waiver request procedures, as soon as they report.

Inquiries regarding these requirements may directed to servicing Human Resources Offices.


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