PART 2418—FLRA DEBT COLLECTION Authority: 5 U.S.C. 5514; 5 U.S.C. 5584; 5 U.S.C. 6402; 31 U.S.C. 3701, 3711; 3716, 3717, 3718, 3720A, 3720D. Source: 80 FR 24780, May 1, 2015, unless otherwise noted. Subpart A—General Provisions § 2418.1 What definitions apply to the regulations in this part? As used in this part: Administrative offset offset Administrative wage garnishment Agency federal agency Chairman Creditor agency Debt et seq. et seq. Debtor Delinquent debt Delinquent FLRA debt Disposable pay Employee Federal employee Executive Director FCCS Financial Management Service FLRA FLRA debt Payment agency Federal payment agency Person Salary offset Tax refund offset Treasury Department Waiver § 2418.2 Why is the FLRA issuing these regulations, and what do they cover? (a) Scope. (b) Applicability. (2) This part does not apply to tax debts or to any debt for which there is an indication of fraud or misrepresentation, as described in 31 CFR 900.3 of the FCCS, unless the Department of Justice returns the debt to the FLRA for handling. (3) Nothing in this part precludes collection or disposition of any debt under statutes and regulations other than those described in this part. See, for example, 5 U.S.C. 5705, Advancements and Deductions, which authorizes agencies to recover travel advances by offset of up to 100% of a Federal employee's accrued pay. See, also, 5 U.S.C. 4108, governing the collection of training expenses. To the extent that the provisions of laws and other regulations differ from the provisions of this part, those provisions of law and other regulations—and not the provisions of this part—apply to the remission or mitigation of fines, penalties, and forfeitures, as well as debts arising under the tariff laws of the United States. (c) Duplication not required. (d) Use of multiple collection remedies allowed. § 2418.3 Do these regulations adopt the Federal Claims Collection Standards (FCCS)? This part adopts and incorporates all provisions of the FCCS. This part also supplements the FCCS by prescribing procedures consistent with the FCCS, as necessary and appropriate for FLRA operations. Subpart B—Procedures to Collect FLRA Debts § 2418.4 What notice will the FLRA send to a debtor when collecting an FLRA debt? (a) Notice requirements. (1) The nature and amount of the debt, and the facts giving rise to the debt; (2) How interest, penalties, and administrative costs are added to the debt, the date by which payment should be made to avoid such charges, and that such assessments must be made unless excused in accordance with 31 CFR 901.9 (see § 2418.5); (3) The date by which payment should be made to avoid the enforced collection actions described in paragraph (a)(6) of this section; (4) The FLRA's willingness to discuss alternative payment arrangements and how the debtor may enter into a written agreement to repay the debt under terms acceptable to the FLRA (see § 2418.6); (5) The name, address, and telephone number of a contact person or office within the FLRA; (6) The FLRA's intention to enforce collection if the debtor fails to pay or otherwise resolve the debt, by taking one or more of the following actions: (i) Offset. (ii) Private collection agency. (iii) Credit-bureau reporting. (iv) Administrative wage garnishment. (v) Litigation. (vi) Treasury Department's Financial Management Service. (7) That Treasury debts over 180 days delinquent must be referred to the Financial Management Service for the collection actions described in paragraph (a)(6) of this section (see § 2418.9); (8) How the debtor may inspect and copy records related to the debt; (9) How the debtor may request a review of the FLRA's determination that the debtor owes a debt and present evidence that the debt is not delinquent or legally enforceable (see §§ 2418.10(c) and 2418.11(c)); (10) How a debtor may request a hearing if the FLRA intends to garnish the debtor's private-sector ( i.e., (i) The method and time period for requesting a hearing; (ii) That the timely filing of a request for a hearing on or before the 15th business day following the date of the notice will stay the commencement of administrative wage garnishment, but not necessarily other collection procedures; and (iii) The name and address of the office to which the request for a hearing should be sent. (11) How a debtor who is a Federal employee subject to Federal salary offset may request a hearing (see § 2418.12(e)), including: (i) The method and time period for requesting a hearing; (ii) That the timely filing of a request for a hearing on or before the 15th calendar day following receipt of the notice will stay the commencement of salary offset, but not necessarily other collection procedures; (iii) The name and address of the office to which the request for a hearing should be sent; (iv) That the FLRA will refer the debt to the debtor's employing agency or to the Financial Management Service to implement salary offset, unless the employee files a timely request for a hearing; (v) That a final decision on the hearing, if requested, will be issued at the earliest practical date, but not later than 60 days after the filing of the request for a hearing, unless the employee requests and the hearing official grants a delay in the proceedings; (vi) That any knowingly false or frivolous statements, representations, or evidence may subject the Federal employee to penalties under the False Claims Act (31 U.S.C. 3729-3731) or other applicable statutory authority, and criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or other applicable statutory authority; (vii) That, unless prohibited by contract or statute, amounts paid on or deducted for the debt that are later waived or found not owed to the United States will be promptly refunded to the employee; and (viii) That 5 U.S.C. 5514 and 31 U.S.C. 3716 govern proceedings with respect to such debt. (12) How the debtor may request a waiver of the debt, if applicable (see Appendix A of this part); (13) How the debtor's spouse may claim his or her share of a joint-income-tax refund by filing Form 8379 with the Internal Revenue Service (see http://www.irs.gov (14) How the debtor may exercise other statutory or regulatory rights and remedies available to the debtor; (15) That an employee's involuntary payment of all or any portion of a debt being collected will not be construed as a waiver of any rights that the employee may have under any provision of contract or law, unless there are statutory, regulatory, or contractual provisions to the contrary; and (16) That the debtor should advise the FLRA of a bankruptcy proceeding of the debtor or another person liable for the debt being collected. (b) Exceptions to notice requirements. (c) Respond to debtors; comply with FCCS. § 2418.5 How will the FLRA add interest, penalty charges, and administrative costs to an FLRA debt? (a) Assessment and notice. (b) Waiver of interest, penalties, and administrative costs. (c) Accrual during suspension of debt collection. § 2418.6 When will the FLRA allow a debtor to pay an FLRA debt in installments instead of one lump sum? If a debtor is financially unable to pay the debt in one lump sum, then the FLRA may accept payment of an FLRA debt in regular installments, in accordance with 31 CFR 901.8. § 2418.7 When will the FLRA compromise an FLRA debt? If the FLRA cannot collect the full amount of an FLRA debt, then the FLRA may compromise the debt in accordance with 31 CFR part 902. § 2418.8 When will the FLRA suspend or terminate debt collection on an FLRA debt? If, after pursuing all appropriate means of collection, the FLRA determines that an FLRA debt is uncollectible, then the FLRA may suspend or terminate debt-collection activity in accordance with the provisions of 31 CFR part 903 and the FLRA's policies and procedures. § 2418.9 When will the FLRA transfer an FLRA debt to the Treasury Department's Financial Management Service for collection? (a) The FLRA will transfer any eligible debt that is more than 180 days delinquent to the Financial Management Service for debt-collection services, a process known as “cross-servicing.” See 31 U.S.C. 3711(g) and 31 CFR 285.12. The FLRA may transfer debts delinquent 180 days or less to the Financial Management Service in accordance with the procedures described in 31 CFR 285.12. The Financial Management Service takes appropriate action to collect or compromise the transferred debt, or to suspend or terminate collection action thereon, in accordance with the statutory and regulatory requirements and authorities applicable to the debt and the collection action to be taken. See 31 CFR 285.12(c)(2). Appropriate action includes, but is not limited to: Contact with the debtor; referral of the debt to the Treasury Offset Program, private collection agencies, or the Department of Justice; reporting of the debt to credit bureaus; and administrative wage garnishment. (b) At least sixty (60) days before transferring an FLRA debt to the Financial Management Service, the FLRA will send notice to the debtor as required by § 2418.4. The FLRA will certify to the Financial Management Service, in writing, that the debt is valid, delinquent, legally enforceable, and that there are no legal bars to collection. In addition, the FLRA will certify its compliance with all applicable due-process and other requirements as described in this part and other Federal laws. See 31 CFR 285.12(i) regarding the certification requirement. (c) As part of its debt-collection process, the Financial Management Service uses the Treasury Offset Program to collect Treasury debts by administrative and tax-refund offset. See 31 CFR 285.12(g). The Treasury Offset Program is a centralized offset program administered by the Financial Management Service to collect delinquent debts owed to Federal agencies and states (including past-due child support). Under the Treasury Offset Program, before a Federal payment is disbursed, the Financial Management Service compares the name and taxpayer identification number (TIN) of the payee with the names and TINs of debtors that have been submitted by Federal agencies and states to the Treasury Offset Program database. If there is a match, the Financial Management Service (or, in some cases, another Federal disbursing agency) offsets all or a portion of the Federal payment, disburses any remaining payment to the payee, and pays the offset amount to the creditor agency. Federal payments eligible for offset include, but are not limited to, income-tax refunds, salary, travel advances and reimbursements, retirement and vendor payments, and Social Security and other benefit payments. § 2418.10 How will the FLRA use administrative offset (offset of non-tax Federal payments) to collect an FLRA debt? (a) Centralized administrative offset through the Treasury Offset Program. (2) At least sixty (60) days prior to referring a debt to the Treasury Offset Program, in accordance with paragraph (a)(1) of this section, the FLRA will send notice to the debtor in accordance with the requirements of § 2418.4. The FLRA will certify to the Financial Management Service, in writing, that the debt is valid, delinquent, legally enforceable, and that there are no legal bars to collection by offset. In addition, the FLRA will certify its compliance with the requirements described in this part. (b) Non-centralized administrative offset for FLRA debts. (2) At least thirty (30) days prior to offsetting a payment internally or requesting a Federal payment agency to offset a payment, the FLRA will send notice to the debtor in accordance with the requirements of § 2418.4. (For debts outstanding more than ten (10) years on or before June 11, 2009, the FLRA will comply with the additional notification requirements of 31 CFR 285.7(d).) When referring a debt for offset under this paragraph (b), the FLRA will certify, in writing, that the debt is valid, delinquent, legally enforceable, and that there are no legal bars to collection by offset. In addition, the FLRA will certify its compliance with these regulations concerning administrative offset. See 31 CFR 901.3(c)(2)(ii). (c) Administrative review. (d) Procedures for expedited offset. § 2418.11 How will the FLRA use tax-refund offset to collect an FLRA debt? (a) Tax-refund offset. (b) Notice. (c) Administrative review. § 2418.12 How will the FLRA offset a Federal employee's salary to collect an FLRA debt? (a) Federal salary offset. (2) Nothing in this part requires the FLRA to collect an FLRA debt in accordance with this section if Federal law allows otherwise. See, for example, 5 U.S.C. 5705 (travel advances not used for allowable travel expenses are recoverable from the employee or his estate by setoff against accrued pay and other means) and 5 U.S.C. 4108 (recovery of training expenses). (3) The FLRA may use the administrative-wage-garnishment procedure described in § 2418.13 to collect a debt from an individual's non-Federal wages. (b) Centralized salary offset through the Treasury Offset Program. (c) Non-centralized salary offset for FLRA debts. (d) When prior notice not required. (1) Any adjustment to pay arising out of any employee's election of coverage or a change in coverage under a Federal-benefits program requiring periodic deductions from pay, if the amount to be recovered was accumulated over four pay periods or less; (2) A routine intra-agency adjustment of pay that is made to correct an overpayment of pay attributable to clerical or administrative errors or delays in processing pay documents, if the overpayment occurred within the four pay periods preceding the adjustment, and, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and the point of contact for contesting such adjustment; or (3) Any adjustment to collect a debt amounting to $ 50 or less, if, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and a point of contact for contesting such adjustment. (e) Hearing procedures Request for a hearing. (2) Failure to submit timely request for hearing. (3) Hearing official. (4) Notice of hearing. (5) Oral hearing. (i) Informal conferences with the hearing official, in which the employee and agency representative will be given full opportunity to present evidence, witnesses, and argument; (ii) Informal meetings with an interview of the employee by the hearing official; or (iii) Formal written submissions, with an opportunity for oral presentation. (6) Paper hearing. (7) Failure to appear or submit documentary evidence. (8) Burden of proof. (9) Record. (10) Date of decision. (11) Content of decision. (i) A statement of the facts presented to support the origin, nature, and amount of the debt; (ii) The hearing official's findings, analysis, and conclusions; and (iii) The terms of any repayment schedules, if applicable. (12) Final agency action. (f) Waiver not precluded. (g) Salary-offset process Determination of disposable pay. (2) When salary offset begins. (3) Amount of salary offset. (i) If the amount of the debt is equal to or less than 15 percent of the disposable pay, then such debt generally will be collected in one lump-sum payment; (ii) Installment deductions will be made over a period of no greater than the anticipated period of employment. An installment deduction will not exceed 15 percent of the disposable pay from which the deduction is made unless the employee has agreed in writing to the deduction of a greater amount, or a higher deduction has been ordered by a court under section 124 of Public Law 97-276 (96 Stat. 1195), or the creditor agency has determined that smaller deductions are appropriate based on the employee's ability to pay. (4) Final salary payment. (h) Payment agency's responsibilities. (2) If the employee is already separated from employment and all payments due from his or her former payment agency have been made, then the FLRA may request that money due and payable to the employee from the Civil Service Retirement Fund and Disability Fund, the Federal Employee Retirement System, or other similar funds, be administratively offset to collect the debt. Generally, the FLRA will collect such monies through the Treasury Offset Program as described in § 2418.9(c). (3) When an employee transfers to another agency, the FLRA should resume collection with the employee's new payment agency in order to continue salary offset. § 2418.13 How will the FLRA use administrative wage garnishment to collect an FLRA debt from a debtor's wages? (a) The FLRA is authorized to collect debts from a debtor's wages by means of administrative wage garnishment in accordance with the requirements of 31 U.S.C. 3720D and 31 CFR 285.11. This part adopts and incorporates all of the provisions of 31 CFR 285.11 concerning administrative wage garnishment, including the hearing procedures described in 31 CFR 285.11(f). The FLRA may use administrative wage garnishment to collect a delinquent FLRA debt unless the debtor is making timely payments under an agreement to pay the debt in installments (see § 2418.6). At least thirty (30) days before initiating an administrative wage garnishment, the FLRA will send notice to the debtor in accordance with the requirements of § 2418.4 of this part, including the requirements of § 2418.4(a)(10). (For debts outstanding more than ten (10) years on or before June 11, 2009, the FLRA will comply with the additional notification requirements of 31 CFR 285.7(d).) For FLRA debts referred to the Financial Management Service under § 2418.9, the FLRA may authorize the Financial Management Service to send a notice informing the debtor that administrative wage garnishment will be initiated and how the debtor may request a hearing as described in § 2418.4(a)(10). If a debtor makes a timely request for a hearing, administrative wage garnishment will not begin until a hearing is held and a decision is sent to the debtor. See 31 CFR 285.11(f)(4). If a debtor's hearing request is not timely, then the FLRA may suspend collection by administrative wage garnishment in accordance with the provisions of 31 CFR 285.11(f)(5). All travel expenses incurred by the debtor in connection with an in-person hearing will be borne by the debtor. If a hearing is conducted telephonically, all telephonic charges incurred during the hearing will be the responsibility of the agency. (b) This section does not apply to Federal salary offset, the process by which the FLRA collects debts from the salaries of Federal employees (see § 2418.12). § 2418.14 How will the FLRA report FLRA debts to credit bureaus? The FLRA shall report delinquent FLRA debts to credit bureaus in accordance with 31 U.S.C. 3711(e), 31 CFR 901.4, and the Office of Management and Budget Circular A-129, “Policies for Federal Credit Programs and Nontax Receivables.” For additional information, see Financial Management Service's “Guide to the Federal Credit Bureau Program,” which may be found at http://www.fms.treas.gov/debt. § 2418.15 How will the FLRA refer FLRA debts to private collection agencies? The FLRA will transfer delinquent FLRA debts to the Financial Management Service to obtain debt-collection services provided by private collection agencies. See § 2418.9. § 2418.16 When will the FLRA refer FLRA debts to the Department of Justice? (a) Compromise or suspension or termination of collection activity. (b) Litigation. § 2418.17 How does a debtor request a special review based on a change in circumstances such as catastrophic illness, divorce, death, or disability? (a) Material change in circumstances. (b) Inability to pay. (1) Income from all sources; (2) Assets; (3) Liabilities; (4) Number of dependents; (5) Expenses for food, housing, clothing, and transportation; (6) Child-care or elder-care expenses; (7) Medical expenses; and (8) Exceptional expenses, if any. (c) Alternative payment arrangement. § 2418.18 Will the FLRA issue a refund if money is erroneously collected on a debt? The FLRA shall promptly refund to a debtor any amount collected on an FLRA debt when the debt is waived or otherwise found not to be owed to the United States, or as otherwise required by law. Refunds under this part shall not bear interest unless required by law. Subpart C—Procedures for Offset of FLRA Payments to Collect Debts Owed to Other Federal Agencies § 2418.19 How do other Federal agencies use the offset process to collect debts from payments issued by the FLRA? (a) Offset of FLRA payments to collect debts owed to other Federal agencies. (2) This subpart does not apply to FLRA debts. See §§ 2418.10 through 2418.12 for offset procedures applicable to FLRA debts. (3) This subpart does not apply to the collection of non-FLRA debts through tax refund offset. See 31 CFR 285.2 for tax-refund-offset procedures. (b) Administrative offset (including salary offset); certification. (c) Where a creditor agency makes requests for offset. (d) Incomplete certification. (e) Review. (f) When the FLRA will not comply with offset request. (g) Multiple debts. (h) Priority of debts owed to FLRA. § 2418.20 What does the FLRA do upon receipt of a request to offset the salary of an FLRA employee to collect a debt owed by the employee to another Federal agency? (a) Notice to the FLRA employee. (b) Amount of deductions from FLRA employee's salary. (c) When the debtor is no longer employed by the FLRA Offset of final and subsequent payments. (2) Notice to the creditor agency. (3) Notice to the debtor. (d) When the debtor transfers to another Federal agency Notice to the creditor agency. (2) Notice to the debtor. (e) Request for hearing official. Appendix A to Part 2418—Waiving Claims Against FLRA Employees for Erroneous Payments Date: May 1, 2015. Subject: Waiving Claims Against FLRA Employees for Erroneous Payments. 1. Purpose This appendix establishes the FLRA's policies and procedures for waiving claims by the Government against an employee for erroneous payments of: (1) Pay and allowances (e.g., health and life insurance) and (2) travel, transportation, and relocation expenses and allowances. 2. Background a. 5 U.S.C. 5584 authorizes the waiver of claims by the United States in whole or in part against an employee arising out of erroneous payments of pay and allowances, travel, transportation, and relocation expenses and allowances. A waiver may be considered when collection of the claim would be against equity and good conscience and not in the best interest of the United States, provided that there does not exist, in connection with the claim, an indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim. b. The General Accounting Office Act of 1996 (Pub. L. 104-316), Title I, section 103(d), enacted October 19, 1996, amended 5 U.S.C. 5584 by transferring the authority to waive claims for erroneous payments exceeding $1,500 from the Comptroller General of the United States to the Office of Management and Budget (OMB). OMB subsequently redelegated this waiver authority to the executive agency that made the erroneous payment. The authority to waive claims not exceeding $1,500, which was vested in the head of each agency prior to the enactment of Public Law 104-316, was unaffected by the Act. c. 5 U.S.C. 5514 authorizes the head of each agency, upon a determination that an employee is indebted to the United States for debts to which the United States is entitled to be repaid at the time of the determination, to deduct up to 15%, or a greater amount if agreed to by the employee or a higher deduction has been ordered by a court under section 124 of Public Law 97-276 (96 Stat. 1195), from the employee's pay at officially established pay intervals in order to repay the debt. 3. Delegation The Executive Director is delegated the authority to waive, in whole or in part, a claim of the United States against an employee for an erroneous payment of pay and allowances, travel, transportation, and relocation expenses and allowances, in accordance with the limitations and standards in 5 U.S.C. 5584. 4. Responsibilities The Office of the Executive Director shall: (1) Promptly notify an employee upon discovery of an erroneous payment to that employee; (2) Promptly act to collect the erroneous overpayment, following established debt-collection policies and procedures; (3) Establish time frames for employees to request a waiver in writing and for the Executive Director to review the waiver request. These time frames must take into consideration the responsibilities of the United States to take prompt action to pursue enforced collection on overdue debts, which may arise from erroneous payments. (4) Notify employees whose requests for waiver of claims are denied in whole or in part of the basis for the denial. (5) Pay a refund when appropriate if a waiver is granted; (6) Fulfill all labor-relations responsibilities when implementing the provisions of this appendix; and (7) Fulfill any other responsibility of the agency imposed by 5 U.S.C. 5584 or other applicable laws and regulations. Additionally, the Office of the Executive Director may initiate a waiver application during the processing of a claim under 5 CFR part 2418. 5. Reporting Requirements a. The FLRA shall maintain a register of waiver actions. The register shall cover each fiscal year and be prepared by December 31 of each year for the preceding fiscal year. The register shall contain the following information: (1) The total amount waived by the FLRA; (2) The number and dollar amount of waiver applications granted in full; (3) The number and dollar amount of waiver applications granted in part and denied in part, and the dollar amount of each; (4) The number and dollar amount of waiver applications denied in their entirety; and (5) The number of waiver applications referred to the Executive Director for initial action. b. The FLRA shall retain a written record of each waiver action for 6 years and 3 months. At a minimum, the written record shall contain: (1) The FLRA's summary of the events surrounding the erroneous payment; (2) Any written comments submitted by the employee from whom collection is sought; (3) An account of the waiver action taken and the reasons for such action; and (4) Other pertinent information such as any action taken to refund amounts repaid. 6. Effect of Request for Waiver A request for a waiver of a claim shall not affect an employee's opportunity under 5 U.S.C. 5514(a)(2)(D) for a hearing on the determination of the agency concerning the existence or the amount of the debt, or the terms of the repayment schedule. A request by an employee for a hearing under 5 U.S.C. 5514(a)(2)(D) shall not affect an employee's right to request a waiver of the claim. The determination whether to waive a claim may be made at the discretion of the deciding official either before or after a final decision is rendered pursuant to 5 U.S.C. 5514(a)(2)(D) concerning the existence or the amount of the debt, or the terms of the repayment schedule. 7. Guidelines for Determining Requests a. A request for a waiver shall not be granted if the deciding official determines there exists, in connection with the claim, an indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim. There are no exceptions to this rule for financial hardship or otherwise. (1) “Fault” exists if, in light of all the circumstances, it is determined that the employee knew or should have known that an error existed, but failed to take action to have it corrected. Fault can derive from an act or a failure to act. Unlike fraud, fault does not require a deliberate intent to deceive. Whether an employee should have known about an error in pay is determined from the perspective of a reasonable person. Pertinent considerations in finding fault include whether: (a) The payment resulted from the employee's incorrect, but not fraudulent, statement that the employee should have known was incorrect; (b) The payment resulted from the employee's failure to disclose material facts that were in the employee's possession and that the employee should have known to be material; or (c) The employee accepted a payment, that the employee knew or should have known to be erroneous. (2) Every case must be examined in light of its particular facts. For example, where an employee is promoted to a higher grade but the step level for the employee's new grade is miscalculated, it may be appropriate to conclude that there is no fault on the employee's part because employees are not typically expected to be aware of and understand the rules regarding determination of step level upon promotion. On the other hand, a different conclusion as to fault potentially may be reached if the employee in question is a personnel specialist or an attorney who concentrates on personnel law. b. If the deciding official finds an indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim, then the request for a waiver must be denied. c. If the deciding official finds no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim, then the employee is not automatically entitled to a waiver. Before a waiver can be granted, the deciding official must also determine that collection of the claim against an employee would be against equity and good conscience and not in the best interests of the United States. Factors to consider when determining whether collection of a claim against an employee would be against equity and good conscience and not in the best interests of the United States include, but are not limited to: (1) Whether collection of the claim would cause serious financial hardship to the employee from whom collection is sought. (2) Whether, because of the erroneous payment, the employee either has relinquished a valuable right or changed positions for the worse, regardless of the employee's financial circumstances. (a) To establish that a valuable right has been relinquished, it must be shown that the right was, in fact, valuable; that it cannot be regained; and that the action was based chiefly or solely on reliance on the overpayment. (b) To establish that the employee's position has changed for the worse, it must be shown that the decision would not have been made but for the overpayment, and that the decision resulted in a loss. (c) An example of a “detrimental reliance” would be a decision to sign a lease for a more expensive apartment based chiefly or solely upon reliance on an erroneous calculation of salary, and the funds spent for rent cannot be recovered. (3) The cost of collecting the claim equals or exceeds the amount of the claim; (4) The time elapsed between the erroneous payment and discovery of the error and notification of the employee; (5) Whether failure to make restitution would result in unfair gain to the employee; (6) Whether recovery of the claim would be unconscionable under the circumstances. d. The burden is on the employee to demonstrate that collection of the claim would be against equity and good conscience and not in the best interest of the United States. 8. Authorities a. 5 U.S.C. 5584, “Claims for Overpayment of Pay and Allowances, and of Travel, Transportation and Relocation Expenses and Allowances.” b. 31 U.S.C. 3711, “Collection and Compromise.” c. 31 U.S.C. 3716, “Administrative Offset.” d. 31 U.S.C. 3717, “Interest and Penalty on Claims.” e. 5 CFR part 550, subpart K, “Collection by Offset from Indebted Government Employees.” f. 31 CFR part 5, subpart B, “Salary Offset.” g. Determination with Respect to Transfer of Functions Pursuant to Public Law 104-316, OMB, December 17, 1996. 9. Cancellation FLRA Internal Regulation 2790, dated December 29, 1986, is superseded.