8884

The financial incentive payment established in § 8883(a) of this title shall be exempted from income taxes and shall not be subject to deductions on account of savings and contributions to the government employees retirement systems, but it may be subject to other deductions authorized by law, such as those voluntarily incurred by the employee for:\n(a) Loans from the Employees Association, Government Retirement Systems or Public Employee Savings and Credit Unions, and\n(b) Social Security and Medicare deductions.\nThe financial incentive received by employees of public agencies or corporations excluded from § 8881 of this title that implement payroll expense reduction programs or plans through incentivized resignations, shall not be subject to income tax. These programs or plans shall be approved by the Office of Management and Budget, through a certification by the corresponding agency or corporation of the economic impact of the implementation thereof.\nHistory —July 2, 2010, No. 70, § 5.