DFAS-HQ/FMP Apr 17, 1998




MEMORANDUM FOR DIRECTOR, WORKFORCE RELATIONS, UNDER SECRETARY OF DEFENSE (PERSONNEL & READINESS)
DEPUTY ASSISTANT SECRETARY OF THE ARMY (FINANCIAL OPERATIONS)
DIRECTOR, OFFICE OF FINANCIAL OPERATIONS, ASSISTANT SECRETARY OF THE NAVY (FINANCIAL
MANAGEMENT AND COMPTROLLER)
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE FINANCIAL OPERATIONS)
COMPTROLLER, DEFENSE AGENCIES
ASSOCIATE DIRECTOR, EXECUTIVE OFFICE OF THE PRESIDENT, HUMAN RESOURCES MANAGEMENT DIVISION

SUBJECT: Mandatory EFT for Unions Dues Payments

The Debt Collection Improvement Act of 1996 (the Act) mandates that all federal payments be remitted electronically by January 1, 1999. This includes check payments that are currently sent to labor organizations. In order to comply with the Act all labor organizations must supply DFAS with the financial institution where they want their payments deposited. Procedures for enrolling in EFT are attached. The capability to use EFT for these payments currently exists, so we can accept the EFT information immediately, but are required to have it by January 1, 1999.

We request that you provide this information to your respective human resources/labor relations communities, so they may in turn inform all labor organizations.

Should you have any questions regarding this matter, my point of contact is Ms. Susan Eldridge. She may be reached at (703) 607-5025 or DSN 327-5025.



//original signed//
Gregory P. Bitz
Acting Director for Finance


Attachment: As stated

PROCEDURES FOR ELECTRONIC FUNDS TRANSFER (EFT)
ENROLLMENT FOR LABOR ORGANIZATIONS





Labor organizations must establish an EFT account at a financial institution of their choice. The account holder can be either the local or national labor organization, whoever is the recipient of the union dues withheld from civilian employees' pay. The account may be established as either a checking or savings account. When all procedures have been executed, the union dues allotments deducted by the Defense Civilian Pay System (DCPS) will be remitted via EFT to the applicable financial institution until the labor organization directs a change.

The Standard Form (SF) 1199A, "Direct Deposit Sign-Up Form" is the method of enrollment in EFT. A designated labor organization official may obtain the form at either a financial institution or civilian personnel office. A copy of the form is attached. Sections 1 and 2 of the SF 1199A are completed by an official of the labor organization on behalf of the local or national organization. Section 1 must contain the pertinent information on the payee (the payee is the named account holder).

Section 2 contains the name and address of the government payroll office who is responsible for entering EFT data into the pay system. The actual name and address for Section 2 is provided below and is dependent on your servicing payroll office.

  1. Charleston Payroll Office
    Defense Finance and Accounting Service
    Operating Location Charleston
    Disbursing Division - Code FD
    1545 Truxton Avenue
    Charleston SC 29408-6336

  2. Denver Payroll Office
    Defense Finance and Accounting Service - Denver Center
    DFAS-DE/FNP, ATTN: Tables
    6760 East Irvington Place
    Denver CO 80279-4000

  3. Pensacola Payroll Office
    Defense Finance and Accounting Service
    Operating Location Pensacola
    Disbursing Office - Code F
    130 West Avenue Suite A
    Pensacola FL 32508-5120

Section 3 is completed by the financial institution where the account is being established. This section contains the name, which is pertinent information in the EFT process. The routing number is used to transmit the union dues deduction amount to the financial institution.

Distribution of the form is as follows:

The copy marked Government Agency is maintained by the servicing payroll office who enters the EFT transaction into DCPS.

The copy marked Financial Institution is maintained at the financial institution where the labor organization established the account.

The copy marked Payee is maintained with the local or national labor organization.

REMITTANCE REPORTS
Labor organizations will continue to receive the dues remittance report, listing the name of the employee for whom dues have been withheld and the amount withheld.

DCPS provides an option to produce a duplicate dues remittance report so both the local and national labor organizations would be in receipt of the report. The labor organization can designate the mailing address of this duplicate dues remittance report by forwarding a memorandum titled "Address for Duplicated Remittance Report" to the applicable servicing payroll office. The memorandum should contain the complete names and address where the duplicate report is to be mailed and should be signed by an officer of the labor organization.

LABOR ORGANIZATION INQUIRIES
Participating labor organizations should contact the appropriate servicing payroll office with any inquiries about the SF 1199A process.