An account is canceled and cash payment is made to complete a bond purchase.
The employing agency obtains the required signatures the bond owner and possibly others as indicated on the form. The employing agency should notify FRB, Pittsburgh Branch. The transferee agency continues deductions based on the transferred authorization. If an allotment is not an aliquot part of the purchase price, the balance is applied toward the purchase of the next bond.
After receiving the cancellation notice, the agency refunds any remaining balance in the employee's allotment account as soon as practicable. Savings bonds are exempt from state and local income tax. Once deductions start, they will continue to purchase bonds under the plan you selected until your agency receives a Savings Bond Deduction form to cancel the deductions. An employee files a written request to cancel a payroll allotment authorization. An account is canceled and cash payment is made to complete a bond purchase.
The transferee agency may prepare a different authorization form and support it with the transferred authorization. Because bonds are sent to a home address, you must take care to provide an accurate and complete address when you enroll.