Section 1 Short title
This Act may be cited as the “Social Security Garnishment Modernization Act of 2014”.
Social Security Garnishment Modernization Act of 2014
A BILL
To amend title 31, United States Code, to adjust for inflation the amount that is exempt from administrative offsets by the Department of Education for defaulted student loans.
Sec. 2 Adjustment for inflation
in clause (ii), by striking “An amount” and inserting “Except as provided in clause (iii), an amount”; and
by inserting after the matter following clause (ii)(II) the following:
“(iii) For a claim that may be collected under this section by the Department of Education relating to a defaulted student loan under part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., and 1087aa et seq.), the amount of payments due to an individual under the Social Security Act that is exempt from offset under this subsection shall be equal to the exemption amount under clause (ii), as adjusted annually to reflect increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the Bureau of Labor Statistics of the Department of Labor.”
Effective date— The amendments made by subsection (a) shall—
take effect as if included in the enactment of the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104–134; 110 Stat. 1321); and
only apply with respect to a claim described in section 3716(c)(3)(A)(iii) of title 31, United States Code, as added by subsection (a)(2), that may be collected by administrative offset by the Department of Education under section 3716 of such title after the date of enactment of this Act.