5 C.F.R. Subpart C—Allotments and Assignments From Federal Employees
Title 5 - Administrative Personnel
Title 5: Administrative Personnel
PART 550—PAY ADMINISTRATION (GENERAL)
Subpart C—Allotments and Assignments From Federal Employees
Authority: 5 U.S.C. 5527, E.O. 10982, 3 CFR 1959–1963 Comp., p. 502.
Source: 46 FR 2325, Jan. 9, 1981, unless otherwise noted.
Definitions
§ 550.301 Definitions.
In this subpart:
Agency means an Executive agency as defined by section 105 of Title 5, United States Code.
Allotment means a recurring specified deduction for a legal purpose from pay authorized by an employee to be paid to an allottee.
Allottee means the person or institution to whom an allotment is made payable.
Allotter means the employee from whose pay an allotment is made.
Association of management officials and/or supervisors means an association composed of either management officials and/or supervisors with which the agency has established official relationships.
Combined Federal Campaign means an organization of voluntary health and welfare agencies authorized to solicit charitable contributions in a local area in accordance with arrangements prescribed by the Director of the Office of Personnel Management under Executive Order 10927.
Continental United States means the several States and the District of Columbia, but excluding Alaska and Hawaii.
Dues means the regular periodic amount specified by an allotter to be withheld from his or her pay which is required to maintain the allotter as a member in good standing in a labor organization or association of management officials and/or supervisors or other organization.
Employee means an employee of an agency, unless otherwise provided.
Foreign affairs agency means the Department of State, the International Communications Agency, the Agency for International Development and its successor agency or agencies.
Labor organization means a labor organization as defined by section 7103(a)(4) of title 5, United States Code, unless specified otherwise.
[46 FR 2325, Jan. 9, 1981, as amended at 65 FR 44644, July 19, 2000]
General Provisions
§ 550.311 Authority of agency.
(a) An agency shall permit an employee to make:
(1) An allotment for dues to a labor organization under section 7115 of Title 5, United States Code;
(2) An allotment for dues to an association of management officials and/or supervisors under §550.331;
(3) An allotment for charitable contributions to a Combined Federal Campaign under §550.341;
(4) An allotment for income tax withholding under §550.351;
(5) At least two allotments for savings;
(6) An allotment for savings for an employee assigned to a post of duty outside the continental United States under §550.361;
(7) An allotment for child support and/or alimony payments under §550.371;
(8) An allotment to the employing Federal agency to pay an employee's share of Federal Employees Health Benefits premiums, consistent with part 892 of this chapter.
(b) In addition to those allotments provided for in paragraph (a) of this section, an agency may permit an employee to make an allotment for any legal purpose deemed appropriate by the head of the agency. This authority does not extend to allotments to the paying agency for the purpose of reducing taxable income, except where there is an authority specific to Federal employees (statute, Executive order, Presidential directive, or OPM regulations) permitting agencies to provide the pretax benefit in question.
(c) The head of an agency may prescribe such additional regulations governing allotments as appropriate which are consistent with subchapter III of chapter 55 of title 5, United States Code, and this subpart. Discretionary allotments under this subpart may be limited in number as determined appropriate by the head of the agency.
[46 FR 2325, Jan. 9, 1981, as amended at 64 FR 69176, Dec. 10, 1999; 65 FR 44644, July 19, 2000; 66 FR 49086, Sept. 26, 2001; 66 FR 67477, Dec. 31, 2001]
§ 550.312 General limitations.
(a) The allotter must specifically designate the allottee and the amount of the allotment.
(b) The total amount of allotments may not exceed the pay due the allotter for a particular period.
(c) The allotter must personally authorize a change or cancellation of an allotment.
(d) The agency has no liability in connection with any authorized allotment disbursed by the agency in accordance with the allotter's request.
(e) Any disputes regarding any authorized allotment are a matter between the allotter and the allottee.
(f) Notwithstanding the requirements in paragraphs (a) and (c) of this section, an agency may make an allotment for an employee's share of health benefits premiums under §550.311(a)(8) without specific authorization from the employee, unless the employee specifically waives such allotment. Agency procedures for processing employee waivers must be consistent with procedures established by the Office of Personnel Management. (See part 892 of this chapter.)
[46 FR 2325, Jan. 9, 1981, as amended at 64 FR 69176, Dec. 10, 1999; 65 FR 44644, July 19, 2000]
§ 550.313 Order of precedence when there is insufficient pay to cover all deductions.
(a) Except as provided in paragraph (b) of this section, an agency must deduct allotments from any net pay remaining after applying all deductions authorized by law, including any deductions for retirement and other benefits, Social Security and income tax withholdings, collection of a debt to the Government via levy or salary offset, and garnishment. If there is insufficient net pay to cover all of the employee's allotments, the agency must deduct allotments in the order specified under its established rules of precedence.
(b) An agency must deduct an allotment for an employee's share of health benefits premiums under §550.311(a)(8) before deducting any type of tax withholding.
[65 FR 44644, July 19, 2000]
Labor Organization
§ 550.321 Authority.
Section 7115, title 5, United States Code, authorizes an employee to make an allotment for dues to a labor organization as defined in subchapter 1 of chapter 71 of title 5, United States Code. Such an allotment shall be effected in accordance with such rules and regulations as may be prescribed by the Federal Labor Relations Authority.
§ 550.322 Saving provision.
An agency shall permit a supervisor who so desires, to continue an allotment of dues to a labor organization as defined by section 2(e) of Executive Order 11491, as amended, which was permissible when the supervisor was excluded from a formal or exclusive unit by reason of the requirements of former section 24(d) of this Order.
Association of Management Officials and/or Supervisors
§ 550.331 Scope.
An agency shall permit an employee to make an allotment for dues to an association of management officials and/or supervisors when the employee is a supervisor or management official, and the employee is a member of an association of management officials and/or supervisors with which the agency has agreed in writing to deduct allotments for the payment of dues to the association.
Combined Federal Campaign
§ 550.341 Scope.
An agency must permit an employee to make an allotment for charitable contributions to a Combined Federal Campaign in accordance with §950.901 of this chapter.
[64 FR 69176, Dec. 10, 1999]
Income Tax Withholding
§ 550.351 Scope.
When an employee has a legal obligation to pay, but the agency has no legal obligation to withhold, State, District of Columbia, or local income or employment taxes, an agency shall permit an employee to make an allotment for payment of the taxes.
Allotments For Savings
§ 550.361 Scope.
An agency shall permit an employee within the continental United States to make up to two allotments of pay to a financial organization of his/her choice, for credit to his/her savings account as authorized under Department of Treasury regulations codified at part 209 of title 31, Code of Federal Regulations. Additional allotments to savings for these employees will not be permitted under this part.
An employee assigned to a post of duty outside the continental United States who is not covered under Department of Treasury regulations at 31 CFR part 209 shall be permitted to make allotments of pay to a financial organization of his/her choice for credit to his/her savings account.
Alimony and/or Child Support
§ 550.371 Scope.
An agency shall permit an employee to make an allotment for alimony and/or child support when he or she voluntarily elects to do so. However, this provision does not apply to garnishment orders issued to enforce child support and/or alimony obligations which are codified at part 581 of this title.
Foreign Affairs Agency Organizations
§ 550.381 Scope.
If an agency permits an employee to make an allotment for dues to a foreign affairs agency organization, the agency must also provide, in accordance with section 15 of Executive Order 11636:
(a) that the employee be allowed to revoke the authorization at least every six months; and
(b) that the allotment terminates when the dues withholding agreement between a foreign affairs agency and the organization is terminated or ceases to be applicable to the employee.
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