Office of Personnel Management § 179.213

(4) Lump-sum deductions from other practices and procedures as may be sources. When an employee subject to necessary to carry out the intent of salary offset is separated from OPM this regulation. and the balance of the debt cannot be (2) The designated salary offset coor- liquidated by offset of the final salary dinator will be responsible for: check, the Office, pursuant to 31 U.S.C. (i) Ensuring that each notice of in- 3716, the FCCS and OPM’s imple- tent to offset is consistent with the re- menting regulations, may offset the quirements of § 179.206; balance of the debt against any finan- (ii) Ensuring that each certification cial payment due the employee from of debt that is sent to a paying agency the U.S. Government. is consistent with the requirements of (e) Multiple debts. In instances where § 179.208; two or more creditor agencies are seek- (iii) Obtaining hearing officials from ing salary offset, or where two or more other agencies pursuant to § 179.207(f); debts are owed to a single creditor and agency, OPM payroll office may, at its (iv) Ensuring that hearings are prop- discretion, determine whether one or erly scheduled. more debts should be offset simulta- (3) Requesting recovery from current neously within the 15 percent limita- paying agency. Upon completion of the tion. procedures established in these regula- (f) Precedence of debts owed to OPM. tions and pursuant to 5 U.S.C. 5514, the For OPM employees, debts owed to the Office must: Office generally take precedence over (i) Certify, in writing, to the paying debts owed to other agencies. In the agency that the employee owes the event that a debt to the Office is cer- debt, the amount and basis of the debt, tified while an employee is subject to a the date on which payment(s) is due, salary offset to repay another agency, the date the Government’s right to col- the OPM payroll office may decide lect the debt first accrued, and that the whether to have that debt repaid in full Office’s regulations implementing 5 before collecting its claim or whether U.S.C. 5514 have been approved by the changes should be made in the salary Office of Personnel Management; deduction being sent to the other agen- (ii) Advise the paying agency of the cy. If debts owed the Office can be col- amount or percentage of disposable pay lected in one pay period, the payroll of- to be collected in each installment and fice may suspend the salary offset to the number and commencing date of the other agency for that pay period in the installments (if a date other than order to liquidate the office debt. the next officially established pay pe- (g) When an employee owes two or riod is required); more debts, the best interests of the (iii) Advise the paying agency of the Government shall be the primary con- action(s) taken under 5 U.S.C. 5514(b) sideration in determining the order of and give the date(s) and action(s) was debt collection. The OPM payroll of- taken (unless the employee has con- fice, in making this determination, sented to the salary offset in writing or will be guided primarily by the statute signed a statement acknowledging re- of limitations that affects the collec- ceipt of the required procedures and tion of the debt(s). the written consent or statement is forwarded to the paying agency); § 179.213 Coordinating salary offset (iv) Submit a debt claim certification with other agencies. containing the information specified in (a) Responsibility of OPM as the cred- paragraphs (a)(3)(i), (a)(3)(ii) and itor agency. (1) The Director or his or (a)(3)(iii) of this section and an install- her designee shall coordinate debt col- ment agreement (or other instruction lections with other agencies and shall, on the payment schedule), if applica- as appropriate: ble, to the employee’s paying agency; (i) Arrange for a hearing or special and review upon proper petitioning by a (v) Submit the debt claim, as pro- Federal employee; and vided in § 179.208, to the employee’s (ii) Prescribe, upon consultation with paying agency for collection if the em- the General Counsel, such additional ployee is in the process of separating,

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and has not received a final salary ployee must receive written notice check, or other final payment(s) from from the Office including: the paying agency. The paying agency (i) A statement that the Office has must certify the total amount of its received a certified debt claim from the collection on the debt and send a copy creditor agency; of the certification to the employee (ii) The amount of the debt claim; and another copy to the creditor agen- (iii) The date salary offset deductions cy. If the paying agency’s collection will begin, and does not fully satisfy the debt, and the (iv) The amount of such deductions. paying agency is aware that the debtor (2) Incomplete claim. When the Office is entitled to payments from the Civil receives an incomplete certification of Service Retirement and Disability debt from a creditor agency, the Office Fund or other similar payments that must return the debt claim with notice may be due the debtor employee from that procedures under 5 U.S.C. 5514 and other Federal Government sources, the 5 CFR 550.1101 et seq. must be followed paying agency will provide written no- and a properly certified debt claim re- tification of the outstanding debt to ceived before action will be taken to the agency responsible for making such collect from the employee’s current other payments to the debtor em- pay account. ployee. The written notification shall (3) Review. The Office is not author- state that the employee owes a debt ized to review the merits of the cred- (including the amount) and that the itor agency’s determination with re- provisions of this section have been spect to the amount or validity of the fully complied with. The Office must submit a properly certified claim to debt certified by the creditor agency. the agency responsible for making such (4) Employees who transfer from one payments before the collection can be paying agency to another. If, after the made. creditor agency has submitted the debt (4) Separated employee. If the em- claim to the Office, the employee ployee is already separated and all pay- transfers from OPM to a different payments due from his or her former paying agency before the debt is collected ing agency have been paid, the Office in full, the Office will certify the total may request, unless otherwise prohib- amount collected on the debt. One copy ited, that money due and payable to of the certification will be furnished to the employee from the Civil Service the employee and one copy to the cred- Retirement and Disability Fund (5 CFR itor agency along with notice of the 831.1801 et seq. or 5 CFR 845.401 et seq.) employee’s transfer. or other similar funds, be administra- tively offset to collect the debt (31 § 179.214 Interest, penalties and administrative costs. U.S.C. 3716 and the FCCS). (5) Employee transfer. When an em- The office shall assess interest, pen- ployee transfers from one paying agen- alties and administrative costs on cy to another paying agency, the Office debts owed pursuant to 31 U.S.C. 3717 is not required to repeat the due proc- and 4 CFR part 101.1 et seq. Penalties ess procedures described in 5 U.S.C. and administrative costs will be as- 5514 and this subpart to resume the col- sessed on all delinquent debts. lection. The Office will submit a prop- (a) In cases of default on a previous erly certified claim to the new paying repayment agreement, the Office re- agency and will subsequently review serves the right to set a new interest the debt to make sure the collection is rate which reflects the current value of resumed by the new paying agency. funds to the Treasury at the time a (b) Responsibility of the Office as the new repayment agreement is executed. paying agency—(1) Complete claim. When (b) The Office, on a case-by-case the Office receives a certified claim basis, may waive all interest accrued from a creditor agency, deductions on debts paid in full within 60 days of should be scheduled to begin at the the due date if there is no indication of next officially established pay interval. fault or lack of good faith on the part Before deductions can begin, the em- of the debtor.

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