Can your federal annuity be garnished?
For some debts, yes. For credit cards, no.
The debt still exists. A creditor who can’t garnish your annuity can still pursue you in other ways — but it cannot take the OPM payment directly.
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1. The general rule, and its exceptions
Federal annuities are generally protected from assignment and legal process. The civil service retirement statutes say so directly. But Congress carved out specific exceptions, and those are what decide whether your payment can be taken.
| Type of debt | Can it garnish your OPM annuity? |
|---|---|
| Child support | Yes |
| Alimony | Yes |
| Unpaid federal taxes (IRS levy) | Yes |
| Debts owed to the federal government | Can be collected by offset |
| Credit cards, medical bills, private judgments | No |
Note the difference from a divorce. A court-ordered apportionment of your annuity to a former spouse is a division of property, handled separately, and it is not a garnishment. That is covered in court-ordered apportionment.
2. Child support and alimony
Under 42 U.S.C. 659, federal money whose entitlement is based on employment — which includes your annuity — can be garnished to enforce child support and alimony, overriding the general anti-assignment rule. OPM processes these orders under 5 CFR part 581.
The maximum comes from the Consumer Credit Protection Act:
| Your situation | Maximum of disposable earnings |
|---|---|
| Supporting another spouse or child | 50% |
| Not supporting another spouse or child | 60% |
| Either, and more than 12 weeks behind | Add 5% (55% or 65%) |
If your state sets a lower limit, the lower one applies. And "disposable earnings" is calculated after certain amounts are excluded, including amounts required by law to be withheld and health insurance premiums, which include FEHB and FEDVIP.
3. Why commercial creditors can’t
This is the fact most people don't know. OPM's commercial garnishment rules, in 5 CFR part 582, allow a federal salary to be garnished for ordinary commercial debt — but not an annuity.
So a credit card company, a medical provider, or anyone else holding a private judgment cannot direct OPM to take part of your monthly payment. That protection is meaningful for a retiree living on a fixed annuity.
The debt still exists, still accrues interest, and can still affect your credit. The creditor may pursue other collection routes. What it cannot do is garnish the OPM payment itself.
4. The IRS and federal debts
The IRS can levy your annuity for unpaid federal taxes, including through a continuous levy on federal payments. This is separate from the support rules and is not limited by them.
If you owe, the most effective step is usually to contact the IRS early to arrange an installment agreement or other resolution, which can stop or reduce a levy. Waiting tends to make it worse.
Debts you owe to the federal government — including an OPM overpayment — can also be collected by offset against your annuity. If OPM says you were overpaid, the options, including a reduced repayment schedule, are in OPM overpayments and waivers.
5. Money in your bank account
Protection doesn't vanish when the payment is deposited. Federal rules at 31 CFR part 212 require your bank to protect two months of federal benefit payments directly deposited into your account from most garnishment orders. When a garnishment order arrives, the bank reviews recent deposits and leaves that protected amount available to you.
Two limits: the protection does not apply to orders for child support or alimony, and it does not apply to debts owed to the federal government. And it covers direct deposits — another reason to receive your annuity by direct deposit, which you can set up in OPM Services Online.
6. Frequently asked questions
Can my federal annuity be garnished?
For some debts, yes. Under 42 U.S.C. 659 and 5 CFR part 581, a federal annuity can be garnished to enforce child support and alimony, overriding the general rule that federal annuities cannot be assigned. The IRS can also levy it for unpaid federal taxes. Ordinary commercial creditors, however, cannot garnish a federal annuity.
How much can be taken for child support or alimony?
Under the Consumer Credit Protection Act, up to 50 percent of your aggregate disposable earnings if you are supporting another spouse or child, or 60 percent if you are not, plus an additional 5 percent in either case if the payments are more than 12 weeks in arrears. A lower state limit applies if your state sets one.
Can a credit card company garnish my federal annuity?
No. OPM’s commercial garnishment rules allow federal salaries to be garnished for commercial debt, but not annuities. A private creditor with a judgment cannot garnish your OPM annuity payment directly, though the debt itself remains owed and the creditor may pursue other collection routes.
What about money after it lands in my bank account?
Federal rules require banks to protect two months of federal benefit payments directly deposited into an account from most garnishment orders. That protection does not apply to orders for child support and alimony or to debts owed to the federal government, which can reach the account.
Can the IRS take my annuity for back taxes?
Yes. The IRS can levy a federal annuity for unpaid federal taxes, including through a continuous levy on federal payments. Contacting the IRS early to arrange an installment agreement or other resolution is usually the way to stop or reduce a levy.
- 5 CFR part 581, processing garnishment orders for child support and alimony
- 5 CFR part 582, commercial garnishment of federal employees’ pay
- 42 U.S.C. 659, consent to garnishment for child support and alimony
- 15 U.S.C. 1673, restriction on garnishment (Consumer Credit Protection Act)
- 31 CFR part 212, garnishment of accounts containing federal benefit payments
- IRS, Federal Payment Levy Program
General information, not legal advice. Garnishment limits depend on the order, your state, and your circumstances. If you have received an order or a levy notice, consider consulting an attorney.