Adopted by President’s Cabinet 8/22/17
Electronic funds transfer is the required method for payroll payments to employees, making funds available to the employee by the authorized pay date, unless the employee can provide documentation of having an “un-bankable” status; i.e., the employee is unable to obtain a bank account. Direct deposit is defined as the electronic transfer of funds from the employer to a depository institution designated by the employee, which makes the funds available to the employee by the authorized pay date.
An employee may be exempted from participating in direct deposit if he/she does not have an account at an eligible financial institution, and further provides evidence that he/she cannot obtain an account at an eligible financial institution.
The institution’s Chief Business Officer (or his/her designee) has exclusive authority to grant any exemption from the direct deposit requirement. An exemption may be granted only for the reason stated above (i.e., unable to acquire an account at a financial institution) or other specific situations that the institution’s Chief Business Officer (or his/her designee) may deem to be an extreme hardship. An employee desiring to request an exemption from the direct deposit requirement will do so by completing a “Direct Deposit Personal Exemption Request Form.” The exemption should be documented and maintained for future review as needed for auditing purposes.
Electronic withdrawal of funds (auto-debit) is the required method of payment from retirees for benefit premiums; i.e., the payment is electronically withdrawn from an account at a depository institution that is designated by the retiree to the employer, occurring on a specified date each month. Where auto-debit is not possible, the USG System Office may review and authorize an appropriate alternative method of benefits premium payment.