Credit Union Deductions
Other Considerations and Canceled Payments

Other Considerations

Report to an Entity Other Than the Participating Credit Union

If a participating credit union has notified the Comptroller’s office in writing that the report should be submitted to an entity other than the participating credit union, the report must be submitted to that entity. See the list of approved participating credit unions (login required) to determine if a report should be submitted to an entity other than the participating credit union.

Canceled Payments of Salary or Wages

State agencies must notify a participating credit union in writing when the agency cancels a payment of salary or wages to a state employee no later than the day the agency processes the cancellation. The credit union may not distribute the deducted amounts to the employee’s account if the credit union receives the notice before the distribution occurs.

If the credit union receives the notice after distributing the deducted amounts, the credit union must withdraw the deducted amounts from the employee’s account, unless the credit union determines the withdrawal would violate federal or state law or the amount of funds in the account is insufficient for withdrawal of the full amount.

If the withdrawal is not allowed under the preceding criteria, the agency that employs the employee must collect the amount of the distribution directly from the employee.

The credit union must notify the employing state agency about whether or not the deducted amounts have been distributed to the employee’s account. If the distribution has occurred, the credit union must also notify the agency about whether the credit union has withdrawn the deducted amounts from the employee’s account. These notifications must be in writing.

Sources

Texas Government Code, Sections 659.101, 659.103(a), 659.106-659.108; 34 Texas Administrative Code Section 5.47(a)(3), (6)-(8), (10), (12)-(18), (b)(2)(A)-(D), (3), (5), (c)(1), (e)(1)-(2), (g), (i)-(l).