PART 1710—FEDERAL EMPLOYEE SALARY OFFSET PROCEDURES FOR THE COLLECTION OF A DEBT OWED TO THE FEDERAL GOVERNMENT Authority: 5 U.S.C. 5514; 5 CFR part 550 subpart K. Source: 88 FR 64354, Sept. 19, 2023, unless otherwise noted. Subpart A—General Provisions § 1710.101 Scope. (a) This part provides procedures for the collection by administrative offset of a federal employee's salary without his/her consent to satisfy certain debts owed to the federal government. This part applies to all federal employees who owe debts to the Defense Nuclear Facilities Safety Board (Board) and to current employees of the Board who owe debts to other federal agencies. This part does not apply when the employee consents to recovery from his/her current pay account. (b) These procedures do not apply to debts or claims arising under: (1) The Internal Revenue Code of 1954, as amended, 26 U.S.C. 1 et seq.; (2) The tariff laws of the United States; or (3) Any case where a collection of a debt is explicitly provided for or prohibited by another statute. (c) These procedures do not preclude the compromise, suspension, or termination of collection action where appropriate under the standards implementing the revised Federal Claims Collection Standards (FCCS), 31 U.S.C. 3711 et seq., (d) This part does not preclude an employee from requesting waiver of an overpayment under 5 U.S.C. 5584 or in any way questioning the amount or validity of the debt by submitting a subsequent claim to the Board. This part does not preclude an employee from requesting a waiver pursuant to other statutory provisions applicable to the particular debt being collected. (e) The Board is not limited to collection remedies contained in the revised FCCS. The FCCS is not intended to impair common law remedies. § 1710.103 Definitions. Administrative charges Administrative offset Agency Centralized salary offset computer matching Creditor agency Debt claim Debt collection center Delinquent debt record Disbursing official Disposable pay (1) Any amount required by law to be withheld; (2) Amounts properly withheld for federal, state, or local income tax purposes; (3) Amounts deducted as health insurance premiums; (4) Amounts deducted as normal retirement contributions, not including amounts deducted for supplementary coverage; and (5) Amounts deducted as normal life insurance premiums, not including amounts deducted for supplementary coverage. Employee FCCS Hearing official Paying agency Salary offset Treasury Waiver § 1710.105 Application. The regulations in this part are to be followed when: (a) The Board is owed a debt by an individual currently employed by another federal agency; (b) The Board is owed a debt by an individual who is a current employee of the Board; or (c) The Board employs an individual who owes a debt to another federal agency. Subpart B—Notice, Hearing, and Salary Offset Process § 1710.107 Notice requirements. (a) Deductions under the authority of 5 U.S.C. 5514 shall not be made unless the creditor agency provides the employee with written notice that he/she owes a debt to the Federal government a minimum of 30 calendar days before salary offset is initiated. When the Board is the creditor agency, this notice of intent to offset an employee's salary shall be hand-delivered at work, or sent by registered mail, return receipt requested, to the employee's most current address that is available to the Board. The written notice will contain: (1) A statement that the debt is owed and an explanation of its origin, nature, and amount; (2) The creditor agency's intention to collect the debt by deducting from the employee's current disposable pay account until the debt and all accumulated interest are paid in full; (3) The amount and frequency of the intended deduction (stated as a fixed dollar amount or as a percentage of pay, not to exceed 15 percent of disposable pay) and the intention to continue the deduction until the debt is paid in full or otherwise resolved; (4) An explanation of interest, penalties, and administrative charges, including a statement that these charges will be assessed unless excused in accordance with the Federal Claims Collection Standards at 31 CFR parts 900 through 904; (5) The employee's right to inspect and copy government records pertaining to the debt or, if the employee or his or her representative cannot personally inspect the records, to request and receive a copy of these records; (6) If not previously provided, the opportunity (under terms agreeable to the Board) to establish a schedule for the voluntary repayment of the debt or to enter into a written agreement to establish a schedule for repayment of the debt in lieu of offset (31 CFR 901.2) (the agreement must be in writing, signed by the employee and the Board, and documented in the Board's files); (7) The employee's right to a hearing conducted by an official arranged for by the Board (an administrative law judge, or alternatively, a hearing official not under the control of the head of the agency) if a petition is filed as prescribed in § 1710.109; (8) The methods and time period for petitioning for hearings; (9) A statement that the timely filing of a petition for a hearing will stay the commencement of collection proceedings; (10) A statement that a final decision on the hearing will be issued not later than 60 days after the filing of the petition requesting the hearing unless the employee requests and the hearing official grants a delay in the proceedings; (11) A statement that any knowingly false or frivolous statements, representations, or evidence may subject the employee to: (i) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 5 CFR part 752, or any other applicable statutes or regulations; (ii) Penalties under the False Claims Act, sections 3729-3731 of title 31, United States Code, or any other applicable statutory authority; or (iii) Criminal penalties under sections 286, 287, 1001, and 1002 of title 18, United States Code or any other applicable statutory authority. (12) A statement of other rights and remedies available to the employee under statutes or regulations governing the program for which the collection is being made; and (13) Unless there are contractual or statutory provisions to the contrary, a statement that amounts paid on or deducted for the debt which are later waived or found not owed to the United States will be promptly refunded to the employee. (b) Entitlement to hearing: (1) An employee who has received a notice under paragraph (a) that his or her debt will be collected by means of salary offset may request a hearing concerning the existence or amount of the debt. (2) If a hearing is given, the employee is entitled to receive a written decision from the official holding the hearing on the following issues: (i) the determination of the creditor agency concerning the existence or amount of the debt; and (ii) The repayment schedule, if it was not established by written agreement between the employee and the creditor agency.” (c) Exceptions to entitlement to notice, hearing, written responses, and final decisions: (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 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. § 1710.109 Hearing. (a) Request for hearing. (1) If the Board is the creditor agency, a hearing may be requested by filing a written petition stating why the employee disputes the existence or amount of the debt or the repayment schedule if it was not established by written agreement between the employee and the Board. The employee shall sign the petition and fully identify and explain with reasonable specificity all the facts, evidence, and witnesses, if any, which the employee believes support his or her position. The petition for a hearing must be received no later than fifteen (15) calendar days after receipt of the notice of offset unless the employee can show that the delay in meeting the deadline date was because of circumstances beyond his or her control or because of failure to receive notice of the time limit (unless he or she was otherwise aware of it). (2) [Reserved] (b) Failure to submit timely request for hearing. (c) Hearing official. (d) Notice of hearing. (e) Oral hearing. (1) Informal conferences with the hearing official, in which the employee and agency representative will be given full opportunity to present evidence, witnesses, and argument; (2) Informal meetings with an interview of the employee by the hearing official; or (3) Formal written submissions, with an opportunity for oral presentation. (f) Paper hearing. (g) Failure to appear or submit documentary evidence. (h) Burden of proof. (i) Record. (j) Date of decision. (1) A statement of the facts presented to demonstrate the nature and origin of the alleged debt; (2) The hearing official's analysis, findings, and conclusions; (3) The amount and validity of the debt; and (4) The repayment schedule, where appropriate. § 1710.111 Procedures for salary offset. (a) Determination of disposable pay. (b) When salary offset begins. (c) Amount of salary offset. (1) If the amount of the debt is equal to or less than 15 percent of the disposable pay, such debt generally will be collected in one lump sum payment; (2) 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. An installment deduction may be less than 15 percent of disposable pay if the creditor agency has determined that smaller deductions are appropriate based on the employee's ability to pay. (d) Final salary payment. (e) Multiple debts. (f) Precedence of debts owed to the Board. (g) Order of debt collection. § 1710.113 Coordinating salary offset with other agencies. (a) Responsibility of the Board as the creditor agency. (1) Arrange for a hearing or special review upon proper petitioning by a federal employee; and (2) Prescribe, upon consultation with the General Counsel, such additional practices and procedures as may be necessary to carry out the intent of this regulation. (3) The designated salary offset coordinator will be responsible for: (i) Ensuring that each notice of intent to offset is consistent with the requirements of §§ 1710.107 and 1710.111 of this part; (ii) Ensuring that each certification of debt that is sent to a paying agency is consistent with the requirements of paragraph (b) of this section; (iii) Obtaining hearing officials; and (iv) Ensuring that hearings are properly scheduled. (b) Requesting recovery from current paying agency. (1) Certify, in writing, to the paying agency that the employee owes the debt, the amount and basis of the debt, the date on which payment(s) is due, the date the Government's right to collect the debt first accrued, and that the Board's regulations implementing 5 U.S.C. 5514 have been approved by the Office of Personnel Management; (2) Advise the paying agency of the amount or percentage of disposable pay to be collected in each installment and the number and commencing date of the installments (if a date other than the next officially established pay period is required); (3) Advise the paying agency of the action(s) taken under 5 U.S.C. 5514(b) and give the date(s) action(s) were taken (unless the employee has consented to the salary offset in writing or signed a statement acknowledging receipt of the required procedures and the written consent or statement is forwarded to the paying agency); (4) Submit a debt claim certification containing the information specified in paragraphs (b)(1), (2), and (3) of this section and an installment agreement (or other instruction on the payment schedule), if applicable, to the paying agency; and (5) Submit the debt claim to the paying agency for collection if the employee is in the process of separating, and has not received a final salary check, or other final payment(s) from the paying agency. The Board must submit a properly certified claim to the agency responsible for making such payments before the collection can be made. (c) Separated employee. et seq. et seq. (d) Employee transfer. § 1710.115 Notice of salary offset from another agency. (a) Complete claim. (1) A statement that the Board has received a certified debt claim from the creditor agency; (2) The amount of the debt claim; (3) The date salary offset deductions will begin; (4) The amount of such deductions; and (5) A copy of the notice received from the creditor agency. (b) Notice of Claim. (c) Incomplete claim. (d) Review. (e) Employees who transfer from one paying agency to another. § 1710.117 Refunds. (a) The Board will refund promptly any amounts deducted to satisfy debts owed to the United States when the debt is waived, found not owed to the United States, or when directed by an administrative or judicial order. (b) Unless required or permitted by law or contract, refunds under this section may not bear interest. § 1710.119 Non-waiver of rights. An employee's involuntary payment of all or any part of a debt collected under these regulations will not be construed as a waiver of any rights that the employee may have under 5 U.S.C. 5514 or any other provision of contract or law, unless there are statutes or contracts to the contrary. § 1710.121 Interest, penalties, and administrative charges. Charges may be assessed for interest, penalties, and administrative charges in accordance with the FCCS, 31 CFR 901.9.