TFM Homepage|
TFM Transmittal Letters|
TFM Volume I Table of Contents
TFM Homepage|
TFM Transmittal Letters|
TFM Volume I Table of Contents
This chapter prescribes procedures and forms used for the Voluntary Payroll Savings Plan purchase of paper U.S. Savings Bonds, Series EE and I, by payroll allotments. This savings plan allows civilian and military employees of the U.S. Government to regularly save a part of their earnings through voluntary payroll allotments. This chapter also covers undeliverable, lost, and reissued paper savings bonds, as well as nonreceipt claims.
The Bureau of the Public Debt (Public Debt), Department of the Treasury (Treasury), administers the Savings Bond Program. As Treasury's fiscal agent, the Federal Reserve Bank of Cleveland, Pittsburgh Branch (FRB, Pittsburgh Branch), issues paper savings bonds. It also processes undeliverable and reissued paper savings bonds, and nonreceipt claims.
Notes
Executive Order 9135, dated April 16, 1942, established the Voluntary Payroll Savings Plan. The Code of Federal Regulations (CFR) governs U.S. Savings Bonds series as cited below:
Executive Order 13224 prohibits transactions with persons who commit, threaten to commit, or support terrorism. Treasury's Office of Foreign Assets Control (OFAC) maintains the Specially Designated Nationals (SDN) and Blocked Persons list, which provides a list of individuals and entities covered by Executive Order 13224. The SDN and Blocked Persons list also includes the additional restrictions found in the Foreign Assets Control regulations at 31 CFR Chapter V.
Agencies must not make or certify payments, or draw checks or warrants, payable to an individual or organization listed on the SDN and Blocked Persons list. Agencies should consult the SDN and Blocked Persons list at http://www.ustreas.gov/offices/enforcement/ofac/sdn/index.html before making payments.
Direct questions concerning Executive Order 13224 or the SDN and Blocked Persons list to OFAC. See the contact information at http://www.ustreas.gov/offices/enforcement/ofac/contacts.html or call 202-622-2490.
Agencies use the following prescribed forms and table for Series EE and I savings bonds:
See the Contacts page for ordering forms.
To enroll in the Voluntary Payroll Savings Plan for Series EE or Series I savings bonds, the employee completes and submits an SB-2362 (Appendix 1) or a Treasury-approved form to his or her payroll office. The employee must submit a separate SB-2362 to request either Series EE or Series I savings bonds. The employee must provide his or her taxpayer identification number (TIN), usually the Social Security account number. The allotment continues until the employee cancels or changes the authorization in writing (see subsections 6030.50 and 6030.70). When an employee is buying bonds for someone else, he or she should provide that owner's or first-named co-owner's TIN. The employee's TIN may be used if the owner's or co-owner's TIN is not available.
Through the Voluntary Payroll Savings Plan, an employee may purchase paper Series EE savings bonds in $100, $200, $500, and $1,000 denominations. The Series EE paper savings bond purchase price is one-half its face value. For example, the purchase price of a paper $100 Series EE savings bond is $50.
An employee also may use the Voluntary Payroll Savings Plan to purchase paper Series I savings bonds in $50, $75, $100, $200, $500, and $1,000 denominations. The purchase price of a paper Series I savings bond is its face amount. For example, the purchase price of a paper $100 Series I savings bond is $100. May 1999 was the first authorized issue date for $200 Series I savings bonds. September 1998 was the first authorized issue date for Series I savings bonds of all other denominations available under the Voluntary Payroll Savings Plan.
An employee may not purchase Series I savings bonds in $5,000 and $10,000 denominations or Series EE savings bonds in $50, $75, $5,000, and $10,000 denominations through the Voluntary Payroll Savings Plan.
The minimum allotment for a paper Series EE or I savings bond purchase is $3.75 per biweekly pay period and $6.25 per monthly pay period. Employees may make allotments greater than the minimum allotment in any amount, and an allotment need not be a fractional part of the purchase price. The Bond Allotment Table (Appendix 2) illustrates sample allotments and the number of pay periods needed to purchase different denominations of paper Series EE savings bonds. Employees may choose other allotment schedules as their payroll systems allow.
If an allotment is not a fractional part of the purchase price, the balance is applied toward the purchase of the next bond. Agencies should not give the employee refunds of the balance unless the allotment is changed to fractional parts.
New allotments begin the first pay period after the date shown by the employee on the SB-2362 or other authorized form, if received in the payroll office within 5 working days of the end of that pay period. Otherwise, allotments begin in the pay period following receipt of the authorization.
An employee prepares a new authorization form to change the allotment amount, bond denomination, form of registration, or address on a future bond. Changing the allotment amount or bond denomination becomes effective after completing the bond purchase covered by the prior authorization. Agencies may permit changes in allotment or denomination at an earlier date if the money accumulated under the prior authorization is refunded or applied to purchase lower denomination bonds (see subsection 6030.20 for available denominations).
The effective date of a change in registration or address follows the same rule as a new allotment (see subsection 6030.40).
The allotment authorization is part of the official record sent to the transferee agency when the employee transfers from one payroll office to another within the Federal Government (either between agencies or within an agency). The releasing agency notes on the form "Transferred to (name and address of agency and date)" and retains copies of the original and amending authorizations.
The transferee agency continues deductions based on the transferred authorization. The transferee agency may prepare a different authorization form and may support it with the transferred authorization.
The transferring agency sends any unapplied balance to the transferee agency through the Intra-governmental Payment and Collection (IPAC) System. (Refer to TFM Volume I, Part 6, Chapter 4000, for additional IPAC guidance.) This provides the employee with uninterrupted bond issuance.
An employee files a written request to cancel a payroll allotment authorization. After receiving the cancellation notice, the agency refunds any remaining balance in the employee's allotment account as soon as practicable.
Agencies should cancel payroll allotment authorizations that do not include a TIN with the name of the registered owner or the first-named co-owner on the savings bond (see subsection 6035.20). They refund any balance in the employee's allotment account as soon as practicable after the purchaser has refused or cannot provide a TIN (see subsections 6030.10 and 6045.20).
When the employee is terminated from Federal service, the payroll allotment authorization is canceled. If, at the time of termination, the balance in the employee's allotment account is insufficient to purchase a bond, the employee may make a cash payment to complete the purchase of the bond or may request a refund of the balance. Agencies handle the allotment of a deceased employee according to TFM Volume I, Part 3, Chapter 2000, Section 2045. If at the time of termination the accumulated payroll deductions cannot be refunded, agencies deposit the accumulated payroll deductions according to TFM Volume I, Part 6, Chapter 3000.
Agencies do not allow employees to do the following with funds accumulated through payroll allotments to purchase bonds:
Note
A complete 9-digit TIN (usually the Social Security account number) is required for the registration and must be included in the order file for each bond ordered. However, on the face of a paper savings bond, the TIN is printed in masked format (*** ** 6789), showing only the last four digits.
When the accumulated allotment amount equals the purchase price, paper savings bonds are issued in the denomination requested. See subsection 6035.10 concerning registrations. See subsections 6035.30 and 6035.40 concerning bond issue dates.
Savings bonds, including Series I savings bonds, are issued only in registered form. The registration must express the actual ownership of, and interest in, the bond. Savings bonds are issued in the names of natural persons in their own right as follows:
Other authorized forms of registration for Series EE savings bonds are in 31 CFR Section 353.7. Additional authorized forms of registration for Series I savings bonds are in 31 CFR Section 360.6.
Do not use courtesy titles in registrations on savings bonds. However, include a suffix, such as "Sr" or "Jr", when ordinarily used or when necessary to distinguish the owner from another member of his or her family. (Punctuation is not used and does not appear on the bonds.) Also, use a married woman's given name, not that of her husband (for example, "Mary A Jones ", not "Mrs Frank B Jones"). In the address, include the number and street, route, or any other local feature; city; State; and ZIP Code, where appropriate.
All paper Series EE and I savings bonds list/reference the TIN, usually the Social Security account number, of the first-named person on the bond. For bonds issued since August 1, 2006, the TIN is printed on the bonds in masked format (*** ** 6789) showing only the last four digits. Agencies will cancel a savings bond allotment authorization that does not include the required TIN (see subsection 6030.70). Agencies do not require, and should not request, the TIN of the second-named co-owner or beneficiary to be named on paper savings bonds.
Employees need not have their savings bonds reissued only to change, correct, or mask the TIN. However, agencies or employees, as applicable, must send the correct TIN to Public Debt's Treasury Securities Accounting Branch (see the Contacts page).
Paper Series EE and I savings bonds purchased biweekly, monthly, or by other Federal pay systems are issued under average dating rules discussed below.
Series EE and I savings bonds are issue dated as of the first day of the month in which the end of a pay period falls when the account accumulates at least one-half of the purchase price. This date is used regardless of the number of consecutive payroll deductions required to complete the full purchase price.
Under the average dating rules, one $200 bond compared with the aggregate of two $100 bonds gives the employee the financial advantage of an earlier issue date. This results in earlier interest earnings and an earlier maturity date.
When applicable, average dating also is used as follows:
Except where the provisions for average dating apply (see subsection 6035.30), bonds are dated the month the employee's bond account accumulates the total purchase price of the selected paper bond denomination. Since employee bond accounts are credited at the end of each pay period, the bond issue date is the month the employee's account accumulated the bond purchase price.
Agencies submit bond order files formatted according to FRB uniform specifications to the FRB, Pittsburgh Branch. The FRB, Pittsburgh Branch, as Treasury's fiscal agent, balances and edits bond orders, prints inscriptions and issue dates on bonds using agency-requested data, and mails bonds to the addresses printed on the bonds.
Each pay period, agencies deduct the bond allotment amount from each employee's pay and record the amount in an individual bond account. They also record purchases or refunds of unused deductions in each employee's bond account.
Each pay period, agencies disburse the total withheld amount from the payroll appropriation to an appropriate agency deposit fund where it accumulates until the purchase price is met.
Agencies provide the FRB, Pittsburgh Branch, with bond information to issue U.S. Savings Bonds according to prescribed reporting instructions and formats. The FRB, Pittsburgh Branch, prepares and processes an SF 5515: Debit Voucher, using the agency location code of the reporting agency, for each agency that submits a bond issue file. The SF 5515 debits each submitting agency for the full purchase price of the bond order. The FRB, Pittsburgh Branch, provides copies of the respective SF 5515s to each reporting agency.
Two FRBs (Pittsburgh and Minneapolis), as fiscal agents of Treasury, are charged with the custody, issuance, and accounting for sales of savings bonds. However, only the FRB, Pittsburgh Branch, is charged with the custody, issuance, and accounting for sales of savings bonds covered by this chapter.
Issuance data must include ZIP Codes for every account for which a U.S. Savings Bond is to be mailed. Agencies send complete issuance data to the FRB, Pittsburgh Branch, electronically or as otherwise approved by that office.
Agencies submitting savings bond issue data must use a computer-prepared or paper copy FA 500 to certify and transmit agency Series EE savings bond issue files to the FRB, Pittsburgh Branch (see the Contacts page). They use the FA 501 to certify and transmit agency Series I savings bond issue files to the FRB, Pittsburgh Branch (see the Contacts page).
Agencies must do the following:
The FRB, Pittsburgh Branch, edits savings bond inscription data records received from each agency payroll office. It deletes from the bond issue request any record without a valid TIN (ordinarily, a Social Security account number) and reduces the total purchase price on the FA 500 and/or FA 501. While agencies are required to provide complete nine-digit taxpayer identification numbers (usually Social Security account numbers) in their order files for each bond ordered, the TIN is printed on the bonds in masked format (*** ** 6789) showing only the last four digits.
For erroneous inscriptions that cannot be resolved by the FRB, Pittsburgh Branch, it issues and sends a refund and a listing of the rejected issue requests to the agency. The agency must obtain the proper inscription and reschedule the bond allotment or cancel the payroll allotment (see subsection 6030.70).
The FRB, Pittsburgh Branch, does not maintain a master file of bond inscription records for agency updates. Submitting agencies establish and maintain an automated bond registration database.
Agencies submit only the original or computer-prepared version of the FA 500 and/or FA 501 or other appropriate documents to the FRB, Pittsburgh Branch. They also follow the FRB, Pittsburgh Branch, requirements for print layout and format. The FA 500 must show the purchase price (50 percent of the face value, see subsection 6030.20) of the paper Series EE savings bonds requested, and the FA 501 must provide the purchase price (100 percent of the face value) of the paper Series I savings bonds requested. The agency certification on the FA 500 and/or FA 501 authorizes the FRB, Pittsburgh Branch, to issue and distribute the bonds.
Agencies need not assign a control number (subscriber list number) to each FA 500, FA 501, or computer-prepared document.
Generally, savings bonds purchased through payroll deductions are either mailed by the FRB, Pittsburgh Branch, or delivered by the designated agent to the subscribing employee, unless otherwise authorized by the employee in writing. (For example, an employee may authorize a bond to be issued in a relative's name and mailed to that person.) Mail deliveries are made at the risk and expense of the United States to the address given by the purchaser, if it is within the United States, its territories or possessions, or the Commonwealth of Puerto Rico.
Bonds delivered elsewhere will be delivered at the risk of the purchaser. At the discretion of the United States, delivery to an address within the United States may be required, or delivery may be refused to addresses in countries referred to in 31 CFR Chapter II Part 211. Bonds purchased by a U.S. citizen residing abroad are delivered only to such address in the United States as the purchaser directs. Also, bonds are sent to overseas posts by diplomatic pouch or APO and FPO facilities. Bonds may be sent from overseas posts for later remailing within the United States by the same methods.
The FRB, Pittsburgh Branch, inscribes savings bonds purchased through Federal sector payroll savings plans and, generally, delivers the bonds through the U.S. Postal Service. In a few instances, if requested, the FRB, Pittsburgh Branch, can send bonds in bulk to the employing agency for subsequent delivery to owners.
If the agency-designated agent cannot deliver the savings bond in the established manner, and the current address of the owner is unknown, the agency should forward the bond to Public Debt's Data Entry, Casefile and Scanning Section within 5 days after receipt (see the Contacts page). When an employee is on leave, or in the event of the death of an employee, the agency or designated agent may hold the bond for 30 days. The Chief Financial Officer may authorize the bonds held for a longer period where statements of facts relative to the case indicate such action is warranted. Bonds forwarded to Public Debt must be accompanied by a statement giving the reason.
When a mailed bond is returned by the U.S. Postal Service to the FRB, Pittsburgh Branch, as undeliverable, the FRB, Pittsburgh Branch, must send the savings bond to the payroll office of the bond subscriber's employing agency. When the agency can locate neither the employee nor his or her current mailing address, the agency should forward the bond, with a statement concerning the bond's disposition, to Public Debt's Data Entry, Casefile and Scanning Section (see the Contacts page). If the bond is delivered to the owner, the agency and owner should examine the bond for erroneous address information. The agency corrects any erroneous information before the next submission of bond issuance data to the FRB, Pittsburgh Branch (also, see subsection 6050.30).
In the event of an employee's death, the agency delivers the savings bond to the co-owner or beneficiary, if any, and obtains a receipt. If the bond cannot be delivered within 30 days to a co-owner or beneficiary, or it is in single ownership form, the agency forwards it to Public Debt's Data Entry, Casefile and Scanning Section, with a statement of fact (see the Contacts page).
Employing agencies wait 30 days beyond the printing date of the bond before initiating the claims process. This waiting period allows enough time for return of undeliverable bonds to the FRB, Pittsburgh Branch, and forwarding of these bonds by the FRB, Pittsburgh Branch, to employing agencies (see subsection 6050.10).
If the bond still has not been received 30 or more days after the printing date of the bond, and if the bond is less than 12 months old:
If a non-received bond is 12 months old or older, the employing agency should work with the employee who bought the bond to send a completed and signed claim form (PD F 3062) to Public Debt's Division of Customer Assistance (see the Contacts page). Before doing this, the employing agency may have to contact Public Debt to obtain a claim form and essential information about the missing bond, such as the bond serial number.
If the FRB, Pittsburgh Branch, sends a savings bond to a designated agent, and if that bond is later lost after the designated agent received it, the employing agency, the designated agent, and the employee who bought the bond should work together to send a completed and signed claim form (PD F 1048) to Public Debt's Division of Customer Assistance (see the Contacts page). The designated agent has to provide a brief statement explaining what happened, that is, how the loss occurred. Before doing this, the employing agency may have to contact that office to obtain a claim form and essential information about the missing bond.
If a savings bond is lost, stolen, or destroyed after receipt by the owner, the owner completes and signs a PD F 1048 according to instructions on the form and submits it to Public Debt's Division of Customer Assistance (see the Contacts page.)
If the bond serial number is not known, the claimant must provide sufficient information to enable Public Debt to identify the bond by serial number, names (including middle names or initials), complete addresses, series, issue date (month and year), and TIN on the registration record of the missing bond.
If a bond is defaced or mutilated, the bond owner submits the defaced bond or all available fragments of the mutilated bond to Public Debt's Division of Customer Assistance.
Public Debt's Division of Customer Assistance must receive prompt notification if a bond reported as lost, stolen, destroyed, or not received is recovered or received before a replacement bond or payment of the bond's redemption value is received. A recovered bond (for which a replacement or a check in payment has been issued) is U.S. Government property. Whoever recovers the bond must promptly submit it to Public Debt's Division of Customer Assistance, with a letter of explanation (see the Contacts page).
When it is necessary to reissue a savings bond because of an error in the registration data, or for another reason, the employing agency must prepare a form FA 400. The agency must show on the FA 400 the reason for the reissue. The agency may list more than one savings bond on a single FA 400, provided the bonds are all to be reissued with an identical registration. It must submit the FA 400 to the FRB, Pittsburgh Branch, with the savings bond(s) (see the Contacts page).
To get a refund for the purchase price of a savings bond, an employing agency must prepare a form FA 400. It must use a separate form for each different inscription and each different issue date on bonds surrendered. The agency must show on the FA 400 the reason for the refund of purchase price request. It must submit the FA 400 to the FRB, Pittsburgh Branch, with the savings bond(s) (see the Contacts page).
Division of Program Administration
Bureau of the Public Debt
Department of the Treasury
200 Third Street, Room 509
Parkersburg, WV 26106-5312
Telephone: 304-480-6319
Division of Customer Assistance
Bureau of the Public Debt
Department of the Treasury
P.O. Box 7012
Parkersburg, WV 26106-7012
Telephone: 1-866-388-1776
Federal Reserve Bank of Cleveland, Pittsburgh Branch
P.O. Box 299
Pittsburgh, PA 15230-0299
Telephone: 800-245-2804
Federal Reserve Bank of Cleveland, Pittsburgh Branch
P.O. Box 299
Pittsburgh, PA 15230-0299
Telephone: 800-245-2804
Send the completed FA 400, FA 500, and FA 501 forms to:
Federal Reserve Bank of Cleveland, Pittsburgh Branch
P.O. Box 299
Pittsburgh, PA 15230-0299
Treasury Securities Accounting Branch
Bureau of the Public Debt
Department of the Treasury
200 Third Street
Parkersburg, WV 26106-5312
Data Entry, Casefile and Scanning Section
Bureau of the Public Debt
Department of the Treasury
200 Third Street
Parkersburg, WV 26106-5312
| Appendix No. | Form/Title |
| 1 | SB-2362: Authorization for Purchase and Request for Change, United States Series EE Savings Bonds or United States Series I (Inflation-Indexed) Savings Bonds |
| 2 | Bond Allotment Table |
Appendices are available in the PDF version only.
This transmittal letter provides Federal agencies with revisions to TFM Volume I, Part 3, Chapter 6000: Purchasing Paper U.S. Savings Bonds, Series EE and I, Through the Voluntary Payroll Savings Plan. This chapter prescribes procedures and forms used for the Voluntary Payroll Savings Plan purchase of paper U.S. Savings Bonds, Series EE and I.
Remove |
Insert | |
| Table of Contents for Part 3 (T/L 633) | Table of Contents for Part 3 | |
| I TFM 3-6000 (T/L 613) | I TFM 3-6000 |
This transmittal letter is effective immediately.
Direct questions concerning U.S. Savings Bonds regulations and the sale of U.S. Savings Bonds to:
Division of Program Administration
Bureau of the Public Debt
Department of the Treasury
200 Third Street, Room 509
Parkersburg, WV 26106-5312
Telephone: 304-480-6319
Division of Customer Assistance
Bureau of the Public Debt
Department of the Treasury
P.O. Box 7012
Parkersburg, WV 26106-7012
Telephone: 1-866-388-1776
Date: June 19, 2007
Kenneth R. Papaj
Commissioner
