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Changes to the Payroll Savings Bond Program

  • Published
  • By 87th Air Base Wing Comptroller Squadron
JOINT BASE MCGUIIRE-DIX-LAKEHURST, N.J. --  The U.S. Treasury will no longer issue paper savings bonds to federal employees through payroll deduction after September 30, 2010. In anticipation of this, Defense Finance and Accounting Service will discontinue bond allotments July. Any participant with a bond denomination not fully deducted by July 31 will receive a refund.

Federal employees, for DFAS purposes, include military members, retired military members and civilian personnel.

After July 31, Series EE and I savings bonds can be purchased through a TreasuryDirect account. TreasuryDirect is a secure web-based system that allows individuals to establish accounts to purchase, hold and conduct transactions online.

With TreasuryDirect, the Treasury can continue to offer the convenience of payroll savings while reducing the cost of the savings bond program. Federal employees have the benefit of regularly investing in savings bonds or using payroll contributions to purchase a broader range of securities. Savings bonds in TreasuryDirect are electronic securities in an account; they have all of the benefits of paper bonds but can't be misplaced or destroyed.

The TreasuryDirect infrastructure is well protected and uses several features to ensure the safety of the information provided and the transactions performed including:

· Secure Sockets Layer Technology - a common protocol for sending payment information securely over the internet
· Access Card - When employees open an account, they will be provided an access card which will be mailed within two weeks. The account number, password and access card are needed to log in to your TreasuryDirect account.
· Virtual Keyboard -TreasuryDirect uses a virtual keyboard to help protect user passwords.
· Password - Users choose their own password and can change it at any time.
· Customer Hold - As an added security feature, TreasuryDirect allows users to place a hold on their account if they feel their account access information has been compromised.
· Paper Forms - for added protection, changes to user's bank information and certain security transfers require the submission of a signed and certified paper form. The Treasury will not automatically establish an individual's TreasuryDirect account and automatic conversion to TreasuryDirect is not possible. Current or new participants must first establish a TreasuryDirect account. The TreasuryDirect website has many tools that will help customers set up their account.

DFAS is in the process of updating how to start a new payroll deduction or myPay allotment; informationwill be provided when it becomes available.

Paper savings bonds can still be purchased from participating financial institutions for members who may not have internet access.
Participants with Bonds located at the local Finance Office will remain in safekeeping until the owner requests a pick-up. Procedures for requesting bonds from safekeeping remain the same.

To learn more about TreasuryDirect, visit www.treasurydirect.gov