R 487.2101 Definitions.

Rule 1. (1) As used in these rules: (a) "Act" means Act No. 190 of the Public Acts of 1991, being S487.2101 et seq. of the Michigan Compiled Laws. (b) "Direct deposit" means an option that is available to any state employee or the recipient of a state-administered pension benefit to have his or her net pay or benefit directly deposited into a savings or checking account at any financial institution. State colleges and universities shall have their monthly state payments directly deposited into a checking account at any financial institution. (c) "EFT" means electronic funds transfer. (d) "Electronic funds transfer" means an automated transfer of money from one financial institution account to the account of another. (e) "Enrollment/authorization form" means a form that is provided to employees and retirees for the enrollment in, and authorization for, the direct deposit process. The payroll form will be available from the employee's personnel office. The forms for retirees will be available from the retiree's respective system. The form will be used for the initial enrollment and for any changes. (f) "Enrollee" means someone who is designated to receive payroll or pension benefits by EFT direct deposit. (g) "Net pay/pension benefit" means the amount that an enrollee receives in his or her biweekly payroll warrant or monthly benefit warrant. (h) "Originating institution" means the financial institution that is contracted by the state to initiate all authorized EFTs. (i) "Prenotification" means a zero dollar EFT that is initiated after an individual's valid enrollment/authorization form is processed. Prenotifications are used to provide an opportunity to test the accuracy of the information provided and the capture of this information into the payment system. A prenotification will be initiated upon the processing of any individual's enrollment/authorization form. (j) "Receiving institution" means the financial institution that is designated by an enrollee to receive that enrollee's payment through direct deposit. (2) A term that is defined in the act has the same meaning when used in these rules.