Answer from OPM - whats it mean ?

[ghk3rd]

Following is email from opm . It says garnishment can not occur without prior notice except from IRS . Does this include account seizure ?? What exactly is a court ordered apportionment ??


To: [email address deleted by moderator] Garnishments can only occur due to IRS levies without notification to the annuitant. Court ordered apportionments are honored also but annuitants are notified when an apportionment court order is in place.
Sincerely,

Customer Service Representative
Customer Services Group
1 (888) 767-6738


Subject: Is there a safe place for my pension funds.

Iam having financial difficulties and expect to be sued at any time. I understand there is a social security account that cannot be seized. I know federal pensions are judgment proof but most banks disagree. Is there any account I can use to keep my pension funds from being seized ? I am a csrs retiree .Thank you .

[lrprn]

Is there any account I can use to keep my pension funds from being seized ? I am a csrs retiree .Thank you .

The key is to keep your pension funds separated from all your other income in a completely separate account. That discourages the bank from opening up the account to the creditor because the funds are clearly not co-mingled with funds that are eligible to be taken.

To be even safer, consider putting your pension funds account in a different bank than where you have your other income funds.

Understand that even doing this, some banks (not all) will still allow a known pension account to be raided if they are presented with a court order. Your best ability to reverse the action quickly is to be able to prove without a doubt that pension funds were the only thing seized in the account.