5.21—What does a Treasury entity do upon receipt of a request to offset the salary of a Treasury entity employee to collect a debt owed by the employee to another Federal agency?
(a) Notice to the Treasury employee.
When a Treasury entity receives
proper certification of a debt owed by one of its employees, the Treasury entity
will begin deductions from the employee's pay at the next officially established pay
interval. The Treasury entity will send a written notice to the employee indicating
that a certified debt claim has been received from the creditor agency, the amount
of the debt claimed to be owed by the creditor agency, the date deductions from
salary will begin, and the amount of such deductions.
(b) Amount of deductions from Treasury employee's salary.
The amount
deducted under § 5.20(b) of this part will be the lesser of the amount of the debt
certified by the creditor agency or an amount up to 15% of the debtor's disposable
pay. Deductions shall continue until the Treasury entity knows that the debt is paid
in full or until otherwise instructed by the creditor agency. Alternatively, the
amount offset may be an amount agreed upon, in writing, by the debtor and the
creditor agency. See § 5.12(g) (salary offset process).
(c) When the debtor is no longer employed by the Treasury entity—
(1) Offset of final and subsequent payments.
If a Treasury entity
employee retires or resigns or if his or her employment ends before collection of
the debt is complete, the Treasury entity will continue to offset, under 31 U.S.C.
3716, up to 100% of an employee's subsequent payments until the debt is paid or
otherwise resolved. Such payments include a debtor's final salary payment, lump-sum
leave payment, and other payments payable to the debtor by the Treasury entity. See
31 U.S.C. 3716 and 5 CFR 550.1104(l) and 550.1104(m).
(2) Notice to the creditor agency.
If the employee is separated from
the Treasury entity before the debt is paid in full, the Treasury entity will
certify to the creditor agency the total amount of its collection. If the Treasury
entity is aware that the employee is entitled to payments from the Civil Service
Retirement and Disability Fund, Federal Employee Retirement System, or other similar
payments, the Treasury entity will provide written notice to the agency making such
payments that the debtor owes a debt (including the amount) and that the provisions
of 5 CFR 550.1109 have been fully complied with. The creditor agency is responsible
for submitting a certified claim to the agency responsible for making such payments
before collection may begin. Generally, creditor agencies will collect such monies
through the Treasury Offset Program as described in § 5.9(c) of this part.
(3) Notice to the debtor.
The Treasury entity will provide to the
debtor a copy of any notices sent to the creditor agency under paragraph (c)(2) of
this section.
(d) When the debtor transfers to another Federal agency—
(1) Notice to the creditor agency.
If the debtor transfers to another Federal
agency before the debt is paid in full, the Treasury entity will notify the creditor
agency and will certify the total amount of its collection on the debt. The Treasury
entity will provide a copy of the certification to the creditor agency. The creditor
agency is responsible for submitting a certified claim to the debtor's new employing
agency before collection may begin.
(2) Notice to the debtor.
The Treasury entity will provide to the
debtor a copy of any notices and certifications sent to the creditor agency under
paragraph (d)(1) of this section.
(e) Request for hearing official.
A Treasury entity will provide a
hearing official upon the creditor agency's request with respect to a Treasury
entity employee. See 5 CFR 550.1107(a).