NCAS

State of North Carolina Office of the State Controller

Michael F. Easley, Governor

Edward Renfrow, State Controller
Gwen Canady, Chief Deputy

June 28, 2001

M E M O R A N D U M NO PR2001-011

TO:	All Agencies Served by the State Controller's Office - Payroll Section
FROM:	Roger Farmer Payroll Administrator
SUBJECT:	EE-Series and I-Series Savings Bonds

In prior years, we have asked each agency to staple the employee's enrollment card to either the blue or yellow copy of the forms OSC-304 and OSC-305. This year the two forms are not required. You may use the SB-2252 and SB-2253 enrollment card provided by the Savings Bonds Administrator. Please note the information listed below.

1.	An employee may only sign up for two savings bonds by payroll deduction. These savings bonds are referred to as a first bond and as a second bond.
2.	The savings bond deduction codes provide for the identification of a first and a second savings bond.
3.	This year an employee may sign up for either EE-Series or I-Series savings bonds only within these denominations ( $100, $200, $500 and $1,000 ). Our payroll system will not accept deductions for the $50 or $75 I- Series savings bond denomination as listed on the SB-2253 enrollment card. An employee may still purchase the $50 or $75 I-Series savings bonds directly from their bank.
4.	Although not available in prior years, an employee may now sign up for a second EE-Series savings bond in the $1,000 denomination

Please find listed on page two a chart providing the deduction codes that will be used for the various denominations and Series types.

SAVINGS BONDS DEDUCTION CODES
	EE-SERIES BONDS		I-SERIES BONDS
BOND DENOMIINATION $	FIRST BOND	SECOND BOND	FIRST BOND	SECOND BOND
100	306	326	302	322
200	308	328	303	323
500	310	330	304	324
1,000	312	329	305	325

FREQUENTLY ASKED QUESTIONS

Can I have two savings bonds of the same denomination? Yes, provided that the deduction code of one is for a first bond and the deduction code of the other is coded as a second bond.

Can I have two savings bonds consisting of one EE-Series and the other an I-Series? Yes, provided that one of the series is coded as a first bond and the other is coded as a second bond.

I am currently having deductions made to purchase every month a first EE-Series bond and a second EE-Series bond. Am I allowed to drop one or both of my deduction amounts for the EE-Series bonds and instead enroll for the I-Series bonds? Yes.

I am currently having deductions made each month for a first and a second EE-Series bonds. Both deduction amounts are less than the cost of the bonds. Can I change in the same month to the I-Series bonds? No, since there will be a balance shown for each of the EE-Series bonds, it would be necessary to do the following steps. The monthly deduction amounts for the first and second EE-Series bonds would need to be cancelled. Secondly, the balance, which is insufficient to purchase the first and second EE-Series bonds, will need to be refunded. The next month after the refund, the balances shown for savings bonds will have a zero beginning balance, which will allow the employee to again sign up for either the EE-Series or I-Series savings bonds.

	Central Payroll - Roger Farmer, CPA, Manager
MAILING ADDRESS 1410 Mail Service Center Raleigh, NC 27699-1410	Telephone: (919) 981-5445 Fax Number: (919) 981-5570 State Courier: 56-50-10 Website: www.ncosc.net	LOCATION 3512 Bush Street Raleigh, NC
	An Equal Opportunity/Affirmative Action/Americans With Disabilities Employer