| To: | Agency Personnel/Payroll Staff |
| Subject: | Savings Bond Deductions |
| Sent Date: | 10/27/2006 |
I would like to take this opportunity to share some information on the new U.S. Treasury’s web-based savings bond purchasing method now available and to inform you that the current payroll deduction for purchasing savings bonds will be discontinued in the near future.
The U.S. Treasury Department prefers the new Web-based system for purchasing savings bonds. Therefore, beginning the first pay period in 2007, paid January 12, 2007, state employees will no longer be able to purchase “paper” EE/E savings bonds via payroll deduction. Employees with a current savings bond deduction may stop them anytime between now and the end of the calendar year. Beginning immediately, NEW savings bond payroll deductions will not be accepted.
If as of December 29, 2006 it is determined that a savings bond payroll deduction is still active, it will be turned off and any savings bond balance will be refunded to the employee via a refund check sent to their home address.
In order for you to be prepared to help your staff with these changes I want to share with you some options available for them to choose from other than using the payroll deduction method.
The U.S. Treasury Department has established a new web-based system called TreasuryDirect that gives them the opportunity to purchase various treasury securities electronically. Some of the options provided by TreasuryDirect provides the following benefits are as follows:
- They can buy, manage, and redeem Treasury securities online 24/7, all from the convenience of wherever they have secure internet access.
- They may purchase T-Bills, T-Notes, TIPS, Treasury Bonds, and EE/E, I, HH/H savings bonds.
- They may convert previously purchased paper bonds to electronic bonds using SmartExchange.
- Since the savings bonds are electronic, there is no paper to lose, nor do they need to go to their local bank to redeem them. No worries about bonds getting lost in the mail.
I encourage you to visit www.treasurydirect.gov for more information and a guided tour of TreasuryDirect. Enclosed is a brochure from the U.S. Treasury Department.
Again, I appreciate your assistance as we go through this change. Your support will be helpful as your employees may contact with inquiries.P and to set up your TreasuryDirect account if so desired If you have any questions about this change please e-mail the Division of Statewide Payroll help desk (dsphelp@sco.idaho.gov) or call (208) 334-2394.
I encourage you to visit www.treasurydirect.gov for more information and a guided tour of TreasuryDirect. Enclosed is a brochure on TreasuryDirect from the Treasury Department.
Thank you,
Audrey Musgrave, Chief
Bureau of Payroll Services
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