Interest, Late Payment of Deduction Amount

If an employee has authorized a payroll deduction pursuant to § 4307 of this Title and the government fails to pay the payee the amount of the deduction on the day the paycheck is given the employee, then the government shall pay interest and penalty charges as provided in this Section. If the deduction is for savings, then the government shall pay the payee for credit to the employee’s account the amount of interest that the employee lost because of the government’s late payment. If the deduction is for a loan, then the government shall pay the payee for credit to the employee’s account the additional interest and any penalty that for which the employee is liable because of the government’s late payment.