PART 361—RECOVERY OF DEBTS OWED TO THE UNITED STATES GOVERNMENT BY GOVERNMENT EMPLOYEES Authority: 5 U.S.C. 5514(b)(1). Source: 53 FR 45262, Nov. 9, 1988, unless otherwise noted. § 361.1 Purpose. These regulations, which implement 5 U.S.C. 5514, provide the standards and procedures which the Board will utilize to collect debts owed to the United States from the current pay accounts of its employees, including the current pay accounts of employees who owe debts to agencies other than the Board. § 361.2 Scope. (a) Coverage. (b) Applicability. (1) Excluded debts or claims. et seq. et seq. e.g., (2) Waiver requests and claims to the U.S. General Accounting Office. (3) Compromise, suspension, or termination under the Federal Claims Collection Standards (4 CFR 101.1, et seq.). et seq. et seq. § 361.3 Definitions. For purposes of this part, terms are defined as follows: Agency (a) An executive agency as defined by section 105 of title 5, United States Code; including the U.S. Postal Service and the U.S. Postal Rate Commission; (b) A military department as defined in section 102 of title 5, United States Code; (c) An agency or court in the judicial branch, including a court as defined in section 610 of title 28, United States Court for the Northern Mariana Islands, and the Judicial Panel on Multidistrict Litigation; (d) An agency of the legislative branch, including the U.S. Senate and the U.S. House of Representatives; and (e) Other independent establishments that are entities of the Federal government. Creditor agency Debt Delinquent debt Disposable pay Employee FCCS et seq. Paying agency Salary offset Waiver § 361.4 Determination of indebtedness. In determining that an employee is indebted, the Board will review the debt to make sure it is valid and past due. § 361.5 Notice requirements before offset. The Board shall provide an employee written Notice of Intent to Offset Salary (Notice of Intent). The employee will be provided the notice at least thirty calendar days before the intended deduction is to begin. In addition, the notice must provide the following: (a) That the Board has reviewed the records relating to the claim and has determined that a debt is owed, and the origin, nature, and amount of that debt; (b) The Board's intention to collect the debt by means of deduction from the employee's current disposable pay account; (c) The amount, frequency, approximate beginning date, and duration of the intended deductions; (d) An explanation of the Board's requirements concerning interest, penalties, and administrative costs, and notification that such assessment must be made unless such payments are excused in accordance with the FCCS; (e) Advice as to the employee's or his or her representative's right to inspect and copy or to be provided copies of government records relating to the debt; (f) If not previously provided, notification of 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. The agreement must be in writing, signed by both the employee and the Board, and documented in the Board's files (4 CFR 102.2(e)); (g) Advice that the Board will accept a repayment agreement which is reasonable in view of the financial condition of the employee at that time; (h) If there is a statutory provision for waiver, cancellation, remission or forgiveness of the debt to be collected, advice that waiver may be requested within the period and by the procedure specified and explaining the conditions under which waiver, cancellation, remission or forgiveness is granted; (i) Advice as to the employee's right to a hearing conducted by an official arranged by the Board (an administrative law judge, or alternatively, a hearing official not under the control of the head of the agency) on the Board's determination of the debt, the amount of the debt, and the percentage of disposable pay to be deducted each pay period if a petition is filed as prescribed by the Board; (j) Advice that the timely filing of a petition for hearing or a request for waiver (if the waiver statute or regulations are not “permissive” in nature) will stay the commencement of collection proceedings; (k) Advice that a final decision on the hearing (if one is requested) will be issued at the earliest practical date, but not later than sixty days after the filing of the petition requesting the hearing unless the employee requests and the hearing official grants a delay in the proceedings; (l) Advice as to the method and time period for requesting a hearing as provided for in § 361.5 and for requesting waiver, if it is available; (m) Advice that any knowingly false or frivolous statements, representations, or evidence may subject the employee to: (1) Disciplinary procedures appropriate under chapter 75 of title 5, United States Code, part 752 of title 5, Code of Federal Regulations, or any other applicable statutes or regulations; (2) Penalties under the False Claims Act, sections 3729-3731 of title 31, United States Code, or any other applicable statutory authority; or (3) Criminal penalties under sections 286, 287, 1001, and 1002 of title 18, United States Code, or any other applicable statutory authority; (n) Advice as to other rights and remedies available to the employee under statutes or regulations governing the program for which the collection is being made; and (o) Advice that unless there are applicable contractual or statutory provisions to the contrary, 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. Such refunds will not bear interest unless required or permitted by law. § 361.6 Requests for waiver or hearing. (a) A request for waiver or for a hearing must be made in writing and received by the Chief Financial Officer no later than thirty calendar days after the notice is sent to the employee. This time limit may, at the discretion of the Chief Financial Officer, be extended if the employee can show that the delay was caused by circumstances which were beyond the employee's control or because of the employee's failure to receive notice of the time limit. Any right to waiver or to a hearing is forfeited unless the time limits set forth in this paragraph are complied with. (b) The employee's request for a hearing must be signed by the employee 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. (c) A request for a hearing under this paragraph is not a request for waiver. A request for waiver must state the basis for the request for waiver and whether a hearing is requested. If no request for a hearing is contained in the waiver request, no hearing will be provided. (d) A hearing, if requested, will be an informal proceeding conducted by an administrative law judge or hearing official not under the control of the Board. The employee, or his/her representative, and the Board will be given full opportunity to present evidence, witnesses and argument. § 361.7 Written decision following a hearing. Within thirty days after the hearing, the administrative law judge or hearing official shall issue a written decision stating the facts evidencing the nature and origin of the alleged debt; the amount and validity of the alleged debt; and the judge or hearing official's analysis, findings and conclusions with respect to the employee's position on liability for the debt and with respect to his or her eligibility for waiver. The decision of the administrative law judge or hearing official shall be the final agency decision. § 361.8 Limitations on notice and hearing requirements. (a) The procedural requirements of this part are not applicable to collections which result from: (1) An employee's election of coverage or of a change in coverage under a Federal benefits program which requires periodic deductions from pay and which cannot be placed into effect immediately because of normal processing delays; and (2) Ministerial adjustments in pay rates or allowances which cannot be placed into effect immediately because of normal processing delays. (b) Limited procedures. (1) Because of the employee's election, future salary will be reduced to cover the period between the effective date of the election and the first regular withholding, and the employee may dispute the amount of the retroactive collection by notifying a specified office or official; or (2) Due to a normal ministerial adjustment in pay or allowances which could not be placed into effect immediately, future salary will be reduced to cover any excess pay or allowances received by the employee, the employee may dispute the amount of the retroactive collection by notifying a specified office or official. (c) Limitation on exceptions. § 361.9 Exception to requirement that a hearing be offered. When an employee is overpaid due to the hours worked reported on the payroll exceeding the actual hours worked, no pre-offset hearing must be granted since in such cases there is no question regarding credibility and veracity. In these cases the Board will make its determination under this part based upon review of the written record. § 361.10 Written agreement to repay debt as alternative to salary offset. (a) Notification by employee. (b) Board's response. § 361.11 Procedures for salary offset: When deductions may begin. (a) Deductions to liquidate an employee's debt will be by the method and in the amount stated in the Notice of Intent to collect from the employee's current pay. (b) If the employee filed a petition for hearing with the Board before the expiration of the period provided for in § 361.5, then deductions will begin after the hearing officer has provided the employee with a hearing and the hearing officer's final written decision is in favor of the Board. (c) If an employee retires, resigns or his or her period of employment ends before collection of a debt is completed, offset shall be made from subsequent payments of any nature ( e.g., § 361.12 Procedures for salary offset: Types of collection. A debt will be collected in a lump sum or in installments. Collection will be effected in one lump sum collection unless the employee is financially unable to pay in one lump sum, or if the amount of the debt exceeds 15 percent of disposable pay. In these cases, deduction will be by installments. § 361.13 Procedures for salary offset: Methods of collection. (a) General. (b) Installment deductions. (c) Sources of deductions. § 361.14 Procedures for salary offset: Imposition of interest, penalties and administrative costs. Interest will be charged in accordance with 4 CFR 102.13. § 361.15 Non-waiver of rights. So long as there are no statutory or contractual provisions to the contrary, no employee involuntary payment (of all or a portion of a debt) collected under these regulations will be interpreted as a waiver of any rights that the employee may have under 5 U.S.C. 5514. § 361.16 Refunds. The Board will refund promptly to the appropriate individual amounts offset under these regulations when: (a) A debt is waived or otherwise found not owing the United States (unless expressly prohibited by statute or regulation); or (b) The Board is directed by an administrative or judicial order to refund amounts deducted from the employee's current pay. § 361.17 Coordination with other government agencies. (a) Board is paying agency. (2) If the Board receives a claim which does not meet the requirements of 5 CFR 550.1108, then the Board will return the claim to the creditor agency and inform the creditor agency that before any action is taken to collect the debt from the employee's current pay account, the procedures under 5 U.S.C. 5514 and 5 CFR part 550 must be followed and a claim which meets the requirements of 5 CFR 550.1108 must be received. (b) Board is creditor agency.