Does Federal law exclude AmeriCorps living allowance payments from state pension plan contribution requirements?
The Corporations position is that mandatory contributions from the living allowance to a retirement system conflicts with the Federal statutory requirement that AmeriCorps members receive a specific living allowance amount. The national service laws specify how much an AmeriCorps member is entitled to receive as a living allowance when serving in AmeriCorps. The laws also specify what must and what may be deducted from the living allowance. State pension plan contributions are not among the deductions that may be made from the living allowance. The members living allowance is a federal benefit, as opposed to a wage. Consequently, deductions from the living allowance prior to the member receiving it are not permitted. In addition, a member is not considered to be an employee of the program in which the member is enrolled, and thus generally not subject to employment laws, unless specifically authorized by statute. 42 U.S.C. 12511(17)(B). In short, while there is no specific exemption in
