Savings Bonds
Georgetown University sponsors a plan whereby you may purchase United States Series EE Savings Bonds. These bonds are Treasury Securities that earn interest at market rates for up to 30 years. The purchase price of a bond is 50% of its face amount. For example, a $100 bond costs $50.
There is a minimum holding period for savings bonds. Bonds purchased or issued on or after February 1, 2003 have a holding period of at least one year from the issue date. For bonds purchased or issued prior to February of 2003, the minimum holding period is six months from the issue date. You may redeem your bonds at any time after satisfying the minimum holding period requirements. However, if you cash a bond before 5 years, there is an interest penalty. A limit of $15,000 purchase price, per person, per calendar year, applies to EE Bonds.
Who is Eligible?
All employees receiving a Georgetown University paycheck are eligible to participate in this plan. There is no required waiting period. Enrolling in this plan is not subject to Open Enrollment restrictions. You may enroll, change your election, or discontinue participating in this plan at any time you wish.
How Does this Plan Work?
If you wish to participate in this plan, contact benefitshelp@georgetown.edu and request an Enrollment Application. Complete this application and return it to the Office of Faculty and Staff Benefits. You may elect to contribute from $50 per month up to $500 per month. If you are paid every two weeks, we will deduct 1/2 of your monthly election each pay period. We will not take a deduction for the third pay period in any month. If you are paid once per month, your deduction will equal your election. At the end of each month, Georgetown University will send your contribution to the Federal Reserve Bank of Richmond in order to purchase the Bond. The Bond will then be mailed directly to your "address of record" in our Payroll System.
For information regarding the benefits of purchasing bonds, instructions regarding cashing bonds in, or replacing lost or stolen bonds, go to www.savingsbonds.gov .
Registration Options
You may designate a co-owner of your bond if you wish. Both co-owners may cash the bond without the knowledge or approval of the other. Upon the death of one co-owner, the other becomes the sole owner of the bond. If you designate a beneficiary, that person will not be able to cash the bond in during your lifetime, but will automatically become the sole owner of the bond at the time of your death. If you do not choose a beneficiary or a co-owner, the bond will become part of your estate at the time of your death.
What Happens When I Terminate or Retire?
Since the Bonds are forwarded to you shortly after they are purchased each month, no additional steps are required of you when you terminate employment. Of course, since your Georgetown paychecks cease, you will no longer purchase any additional bonds. If you are normally paid every two weeks, but will only receive one paycheck in the month of your termination, we will refund the deduction we took during your first paycheck of the month because we will not be able to purchase the Bond according to your election. Therefore, if you know in advance you are terminating employment or are going to be on some type of leave without pay, and will receive only one paycheck in your last month, you may want to discontinue participation in the plan to avoid this deduction and corresponding refund from occurring.
If you have any questions about how this plan works, please contact benefitshelp@georgetown.edu
