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ee's creditor agency. Salary offset to Code, including U.S. Postal Service satisfy a judgment or a court deter- and the U.S. Postal Rate Commission; mined debt is governed by section 124 (2) A military department as defined of Pub. L. 97-276 (October 2, 1982), 5 in section 102 of Title 5, United States U.S.C. 5514 note.
(3) An agency or court in the judicial 8 1261.601 Scope of subpart.
branch, including a court as defined in (a) Coverage. This subpart applies to section 610 of Title 28, United States agencies and employees as defined in Code, the District Court for the § 1261.602.
Northern Mariana Islands, and the Ju(b) Applicability. This subpart and 5 dicial Panel on Multidistrict LitigaU.S.C. 5514 apply in recovering certain tion; prejudgment debts by administrative (4) An agency of the legislative offset except where the employee con branch, including the U.S. Senate and sents to the recovery, from the current the U.S. House of Representatives; pay account of an employee. Because and it is an administrative offset, debt col (5) Other independent establishlection procedures for salary offset ments that are entities of the Federal which are not specified in 5 U.S.C. Government. 5514 and this subpart should be con (b) Creditor agency means the sistent with Subpart 1261.5.
agency to which the debt is owed. (1) Excluded debts or claims. The (c) Debt means an amount owed to procedures contained in this subpart the United States from sources which do not apply to debts or claims arising include loans insured or guaranteed by under the Internal Revenue Code of the United States and all other 1954 as amended (26 U.S.C. 1 et seq.), amounts due the United States from the Social Security Act (42 U.S.C. 301 fees, leases, rents, royalties, services, et seq.), or the tariff laws of the sales of real or personal property, United States; or to any case where overpayments, penalties, damages, incollection of a debt by salary offset is terest, fines and forfeitures (except explicitly provided for or prohibited those arising under the Uniform Code by another statute (e.g., travel ad- of Military Justice), and all other simivances in 5 U.S.C. 5705, employee lar sources. training expenses in 5 U.S.C. 4108, and (d) Disposable pay means that part debts determined by a court as provid of current basic pay, special pay, ined in 5 U.S.C. 5514 note).
centive pay, retired pay, retainer pay, (2) Waiver requests and claims to or in the case of an employee not entithe General Accounting Office. This tled to basic pay, other authorized pay subpart does not preclude an employ- remaining after the deduction of any ee from requesting waiver of a salary amount required by law to be withoverpayment under 5 U.S.C. 5584, 10 held. NASA must exclude deductions U.S.C. 2774, or 32 U.S.C. 716, or in any listed in OPM's garnishment regulaway questioning the amount or validi tions at 5 CFR 581.105 (b) through (f) ty of a debt by submitting a subse- to determine disposable pay subject to quent claim to the General Account salary offset. ing Office in accordance with proce (e) Employee means a current emdures prescribed by the General AC ployee of an agency, including a curcounting Office. Similarly, in the case rent member of the Armed Forces or a of other types of debts, it does not pre- Reserve of the Armed Forces (Reclude an employee from requesting serves). waiver, if waiver is available under any (f) Paying agency means the agency statutory provision pertaining to the employing the individual and authorparticular debt being collected.
izing the payment of his or her cur
rent pay. 8 1261.602 Definitions.
(g) Salary offset means an adminisFor purposes of this subpart:
trative offset to collect a debt under 5 (a) Agency means:
U.S.C. 5514 by deduction(s) at one or (1) An Executive agency as defined more officially established pay interin section 105 of title 5, United States vals from the current pay account of an employee without his or her con both the employee and the authorized sent.
agency official (see 14 CFR 1261.402) (h) Waiver means the cancellation, and documented in NASA's files (see remission, forgiveness, or nonrecovery 14 CFR 1261.407(d)); of a debt allegedly owed by an employ (6) An opportunity for a hearing, as ee to an agency as permitted or re provided in paragraph (c) of this sec. quired by 5 U.S.C. 8346(b), or any tion, on the agency's determination other law.
concerning the existence and amount
of the debt, and the terms of the re§ 1261.603 Procedures for salary offset.
payment schedule (in the case of an If NASA is both the paying and employee whose repayment schedule creditor agency, the following require is established other than by written ments must be met before a deduction agreement); is made from the current pay account (7) The hearing request should be of an employee.
addressed to the Office of the NASA (a) Written notice. The employee General Counsel or to the Office of must be sent a minimum of 30 days Chief Counsel of the NASA installawritten notice, which specifies:
tion involved, as appropriate; counsel's (1) The origin, nature and amount of name and address will be as stated in the indebtedness, and the official to the notice. contact within the agency (ordinarily, (8) Any other rights and remedies the designated financial management available to the employee under statofficial for the particular installation); utes or regulations governing the pro
(2) The intention of the agency to gram for which the collection is being initiate collection of the debt through made; and salary offset by deductions from the (9) Unless there are applicable conemployee's current disposable pay, tractual or statutory provisions to the stating the amount, frequency, pro- contrary, that amounts paid on or deposed beginning date, and duration of ducted for the debt which are later intended deductions (the amount to be waived or found not owed to the deducted for any period, without the United States will be promptly refundconsent of the employee, may not ed to the employee. exceed 15 percent of disposable pay); (b) Exception to entitlement to writ
(3) An explanation of any interest, ten notice. NASA is not required to penalties, or administrative costs in comply with paragraph (a) of this seccluded in the amount, and that such tion for any adjustment to pay arising assessment must be made unless ex out of an employee's election of covercused in accordance with 14 CFR age or a change in coverage under a 1261.412;
Federal benefits program requiring (4) The right for an opportunity periodic deductions from pay, if the (which does not toll the running of amount to be recovered was accumuthe 30-day period) to inspect and copy lated over four pay periods or less. NASA records relating to the debt or (c) Petition filing; hearing; decision to request and receive (if reasonable) a and review. The notice described in copy of such records, provided that paragraph (a) of this section should such opportunity must be exercised on include the following provisions, or before the 15th day following re- which may be copied and attached to ceipt of the notice and can be conduct the notice. ed only during official working hours (1) The employee may petition for a for a reasonable period of time not to hearing, but such petition must be in exceed 5 working days;
writing and received by NASA on or (5) If not previously provided, the before the 15th day following receipt opportunity (under terms agreeable to of the notice, and include a statement NASA) to establish a schedule for the of the reasons for such hearing. No voluntary repayment of the debt or to particular form is required, and a enter into a written agreement to es timely, legible letter request (with the tablish a schedule for repayment of stated reasons) will suffice; however, the debt in lieu of offset. The agree. the employee must sign the petition ment must be in writing, signed by and include with it, with reasonable
specificity, all the supporting facts record. Ordinarily, hearings may conand evidence, including a list of the sist of informal conferences before the witnesses, if any.
hearing official in which the employee (2) The petition should be addressed and agency officials will be given full to the agency counsel designated in opportunity to present evidence, witthe notice, but the hearing will be con nesses, and argument. The employee ducted by an official not under the su may represent himself or herself or be pervision or control of the NASA Ad represented by an individual of his or ministrator or by appointment of an her choice. The hearing official must administrative law judge. Notice of the maintain a summary record of the name and address of the hearing offi- hearing provided under this subpart. cial will be sent to the employee For additional guidance, see 14 CFR within 10 days of receipt of petition. A 1261.503. hearing official will be designated on a (6) The decision will be in writing case-by-case basis under reimbursable and state: arrangements or through direct pay (i) The facts purported to evidence ment as events may warrant.
the nature and origin of the alleged (3) The timely filing of the petition debt; will stay the commencement of collec (ii) The respective positions of the tion; and the final decision on the agency and of the employee; hearing will be issued at the earliest (iii) The hearing official's analysis practicable date, but not later than 60 (which address the employee's/agendays after the filing of the petition re cy's grounds, the amount and validity questing the hearing unless the em- of the alleged debt, and, where appliployee requests and the hearing offi- cable, the repayment schedule); and cial grants a delay in the proceedings. (iv) The hearing official's findings
(4) Any knowingly false or frivolous and conclusions. statements, representations, or evi (7) The hearing official will notify dence may subject the employee to: the employee, the NASA Comptroller
(1) Disciplinary procedures appropri- or designee, and the designated agency ate under Chapter 75 of Title 5, counsel of the decision. United States Code, 5 CFR Part 752, (8) The decision of the hearing offior any other applicable statutes or cial shall constitute the Final Adminisregulations;
trative Decision of the agency. (ii) Penalties under the False Claims (d) Petition after time expiration. Act, sections 3729 through 3731 of No petition for a hearing is to be Title 31, United States Code, or any granted if made after the 15-day other applicable statutory authority; period prescribed in paragraph (c)(1)
of this section, unless the employee (UI) Criminal penalties under sec- can show to the satisfaction of the tons 286, 287, 1001, and 1002 of Title agency official indicated on the notice 10, United States Code, or any other that the delay was caused by circumapplicable statutory authority.
stances beyond his or her control (for (5) The form and content of the example, proven incapacity, illness, or nearing will be determined by the hospitalization), or that the agency learing official depending on the did not give notice of the time limit Mature and complexity of the transac- and the employee was otherwise un
con giving rise to the debt. The hear aware of such limit. ving is not an adversarial adjudication, (e) Limitation on amount and dura
ud need not take the form of an evi- tion of deductions. Ordinarily, debts ntiary hearing. However, depending must be collected in one lump-sum
the particular facts and circum- payment. However, if the employee is cances, the hearing may be analogous financially unable to pay in one lump u a fact-finding proceeding with oral sum or if the amount of the debt ex
esentations; or an informal meeting ceeds 15 percent of disposable pay for ith or interview of the employee; or an officially established pay interval,
tmal written submissions, with an collection must be made in installopportunity for oral presentation, and ments. The size of installment deducdecision based on the available written tions must bear a reasonable relation
and need identiary?
on the pistances, up to a fact Din presentat ♡ with or in i formal W
ship to the size of the debt and the CFR 1261.412 which implements 4 employee's ability to pay (see 14 CFR CFR 102.13. 1261.411), but the amount deducted for any period must not exceed 15 per
8 1261.604 Nonwaiver of rights by involuncent of the disposable pay from which tary setoff. the deduction is made (unless the em- The employee's involuntary pay. ployee has agreed in writing to the de- ment of all or any portion of the debt, duction of a greater amount). Deduc- being collected under this subpart, tion must commence with the next must not be construed as a waiver of full pay interval (ordinarily, the next any rights which the employee may biweekly pay period). Such install- have under an existing written conment deductions must be made over a tract applicable to the specific debt or period not greater than the anticipat- under any other pertinent statutory ed period of active duty or employ- authority for the collection of claims ment, as the case may be, except as of the United States or the agency. provided in paragraph (f) of this section.
8 1261.605 Refunds. (f) Determining ability to pay. An (a) NASA will promptly refund to offset may produce an extreme finan- the employee amounts paid or deductcial hardship for an employee if it pre- ed under this subpart when: vents the employee from meeting costs (1) A debt is waived or otherwise necessarily incurred for essential sub- found not owing the United States sistence expenses for food, reasonable (unless expressly prohibited by statute housing, clothing, transportation, and or regulation); or medical care. In determining whether (2) The employee's paying agency is an offset would prevent the employee directed by an administrative or judifrom meeting the essential subsistence cial order to refund amounts deducted expenses, the employee may be re- from his or her current pay. quired to show income from all (b) Refunds are not to bear any insources (including spouse and depend terest unless the law applicable to that ents, if applicable), list all known particular debt specifically requires or assets, explain exceptional expenses, permits a stated interest amount on and produce any other relevant fac refunds. tors.
(g) Liquidation from final check; 8 1261.606 Salary offset request by a credi. other recovery. If the employee retires tor agency other than NASA (the cur. or resigns from Federal service, or if rent paying agency). his or her employment or period of (a) Format of the request. Upon comactive duty ends before collection of pletion of the procedures established the debt is completed, the balance by the creditor agency under 5 U.S.C. may be deducted from the final salary 5514, the creditor agency must: payment and any remaining balance
(1) Certify, in writing, that the emfrom the lump-sum leave, if applica- ployee owes the debt, the amount and ble. If the debt is not fully paid by basis of the debt, the date on which offset from any final payment due the payment(s) is/are due, the date the former employee as of the date of sep. Government's right to collect the debt aration, offset may be made from later first accrued, and that the creditor payments of any kind due the former agency's regulations implementing 5 employee from the United States (as U.S.C. 5514 have been approved by provided in 14 CFR Part 1261 Subpart OPM: 1261.5, including offset from the Civil (2) If the collection must be made in Service Retirement and Disability installments, the creditor agency must Fund under 14 CFR 1261.507).
also advise NASA of the number of in(h) Interest, penalties, and adminis stallments to be collected, the amount trative costs. Assessment of interest, of each installment, and the commencpenalties, and administrative costs, on ing date of the first installment, if a debts being collected under this sub- date other than the next officially espart, shall be in accordance with 14 tablished pay period is required; and
(3) Unless the employee has consent employee transfers to another Federal ed to the salary offset in writing or agency before the debt is collected in signed a statement acknowledging re full, NASA must then certify the total ceipt of the required procedures and amount of the collection made on the the writing or statement is attached to debt. A copy of the certification the debt claim request, the creditor should be furnished the employee, and agency must also indicate the action(s)
another copy furnished to the creditor taken under 5 U.S.C. 5514(a)(2) and
agency along with notice of the emgive the date(s) the action(s) was/were
ployee's transfer. taken.
(ii) Official personnel folder inser(b) Limitation period. The creditor
tion; new paying agency. Information agency may not initiate offset to col
on the debt claim must be inserted in lect a debt more than 10 years after
the employee's official personnel the Government's right to collect the
folder along with a copy of the certifidebt first accrued, except as provided in 14 CFR 1261.506, which implements
cation of the amount which has been
collected. Upon receiving the official 4 CFR 102.3(b)(3). (c) Employees who are separating or
personnel folder, the new paying have separated- (1) Employees who
agency must resume the collection are in the process of separating. If the
from the employee's current pay acemployee is in the process of separat
count and notify the employee and ing, the creditor agency must submit
the creditor agency of the resumption. its debt claim to the employee's paying
It will not be necessary for the crediagency for collection as provided in 5 tor agency to repeat the due process CFR 550.1104(1) of the OPM regula procedures described by 5 U.S.C. 5514 tions (14 CFR 1261.603(f)) for “liqui. of this subpart in order to resume the dation from final check.” NASA must collection. However, it will be the rethen certify the total amount of its sponsibility of the creditor agency to collection and notify the creditor review the debt upon receiving NASA's agency and the employee as provided notice of the employee's transfer to in paragraph (c)(3) of this section. If make sure the collection is resumed by NASA is aware that the employee is the new paying agency. entitled to payments from the Civil (d) Processing the debt claim upon Service Retirement and Disability receipt-(1) Incomplete claim. If Frand, or other similar payments, it
NASA receives incomplete debt claim should notify the creditor agency and information, it must return the reforward the copy of the debt claim
quest with a notice that procedures and certification to the agency respon
under 5 U.S.C. 5514 and this subpart sible for making such payments as
must be provided and complete debt notice that a debt is outstanding. How
claim information received before ever, the creditor agency, not NASA,
action will be taken to collect from the must submit a properly certified claim
employee's current pay account. to the agency responsible for making such payments before collection can
(2) Complete claim. If NASA rebe made.
ceives a properly documented debt (2) Employees who have already sep
claim, deductions should be scheduled arated. If the employee is already sep
to begin prospectively at the next offiarated and all payments due from
cially established pay interval. A copy NASA have been paid, NASA must
of the debt claim request must be return the claim to the creditor
given to the debtor, along with notice agency for any further collection, indi
of the date deductions will commence cating the employee's date of separa
if different from that stated on the tion and the current employment and debt claim request. mailing address(es), if known.
(3) NASA is not required or author(3) Employee who transfers from ized to review the merits of the crediNASA to another Federal agency. tor agency's determination with re
(i) Certification of amount collected. spect to the amount or validity of the If, after the creditor agency has sub- debt as stated in the debt claim remitted the debt claim to NASA, the quest.