[Federal Register Volume 76, Number 84 (Monday, May 2, 2011)]
[Proposed Rules]
[Pages 24406-24407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10626]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 76, No. 84 / Monday, May 2, 2011 / Proposed
Rules
[[Page 24406]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 550
RIN 3206-AM14
Collection by Offset From Indebted Government Employees
AGENCY: U.S. Office of Personnel Management.
ACTION: Proposed rule with request for comments.
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SUMMARY: The U.S. Office of Personnel Management (OPM) is issuing
proposed regulations to eliminate the 10-year statute of limitations on
collection of debt by administrative offset, which includes centralized
salary offset. The proposed regulations conform with an amendment made
by the Food, Conservation, and Energy Act of 2008. This change would
authorize the offset of nontax payments (via salary offset) to collect
delinquent Federal debt without regard to the amount of time the debt
has been delinquent. OPM is also proposing several technical changes to
be consistent with the Department of the Treasury Federal Claims
Collection Standards and salary offset regulations.
DATES: Comments must be received on or before: July 1, 2011.
ADDRESSES: You may submit comments, identified by RIN ``3206-AM14,''
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: [email protected].
Fax: (202) 606-0824.
Mail: Jerome D. Mikowicz, Deputy Associate Director for Pay and
Leave, Room 7H31, 1900 E Street, NW., Washington, DC, 20415-8200.
FOR FURTHER INFORMATION CONTACT: Tameka Gillis by telephone at (202)
606-2858; by fax at (202) 606-0824; or by e-mail at [email protected].
SUPPLEMENTARY INFORMATION: The U.S. Office of Personnel Management
(OPM) is issuing proposed regulations to eliminate the 10-year statute
of limitations on collection of debt by administrative offset, which
includes centralized salary offset. The proposed regulations conform
with an amendment to 31 U.S.C. 3716(e) made by section 14219 of the
Food, Conservation, and Energy Act of 2008 (Pub. L. 110-246 (122 Stat.
1651) that became effective on June 18, 2008. This change authorizes
the offset of nontax payments (via salary offset) to collect delinquent
Federal debt without regard to the amount of time the debt has been
delinquent.
The Department of the Treasury has updated its regulations to
reflect this change (see 74 FR 68537, December 28, 2009). To avoid any
undue hardship, the Secretary of the Treasury has added a requirement
applicable to debts that were previously ineligible for collection by
offset because they have been outstanding for more than 10 years. For
these debts, creditor agencies must certify to the Secretary of the
Treasury that the notice of intent to offset was sent to the debtor
after the debt became 10 years delinquent. This is intended to alert
the debtor that his or her debt may now be collected by offset and
allows the debtor additional opportunities to dispute the debt, enter
into a repayment agreement, or otherwise avoid offset.
To be consistent with the Department of the Treasury regulations,
OPM is proposing to revise the regulations at 5 CFR 550.1106 to provide
that agencies may initiate salary offset to collect a debt without time
limitations on debt outstanding after the Government's right to collect
the debt first accrued.
OPM is also proposing to revise regulations at 5 CFR 550.1102(b)(1)
to clarify that, because the salary offset procedures contained in 5
CFR part 550, subpart K, must be consistent with the Federal Claims
Collection Standards (FCCS), they do not apply to any debts which may
be excluded by the FCCS or 31 CFR part 285. OPM is proposing to add a
new paragraph (b)(3) in 5 CFR 550.1102 to recognize that certain
statutes may exist that allow specific agencies to take certain
compromise, suspension, or termination of collection actions as
provided under such statutes and the FCCS. Further, OPM is proposing to
revise the definition of FCCS to include a reference to 31 CFR parts
900 through 904 and delete the obsolete reference to 4 CFR parts 101
through 105.
Also, OPM is proposing to revise regulations at 5 CFR 550.1104 to
clarify that the amount deducted for any involuntary installment
deductions may exceed 15 percent of the disposable pay only when a
greater deduction has been ordered by a court of the United States in
an action or suit brought against the debtor. This is to conform with
section 124 of Public Law 97-276, October 2, 1982 (96 Stat. 1195) which
allows an agency to deduct an amount greater than 15 percent of
disposable pay, as determined by a court of the United States.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
will apply only to Federal agencies and employees.
Executive Order 13563 and Executive Order 12866
The Office of Management and Budget has reviewed this rule in
accordance with E.O. 13563 and 12866.
List of Subjects in 5 CFR Part 550
Administrative practice and procedure, Claims, Government
employees, Wages.
U.S. Office of Personnel Management.
John Berry,
Director.
Accordingly, OPM is proposing to amend 5 CFR part 550 as follows:
PART 550--PAY ADMINISTRATION (GENERAL)
Subpart K--Collection by Offset From Indebted Government Employees
1. The authority citation for subpart K of part 550 continues to
read as follows:
Authority: 5 U.S.C. 5514; sect 8(1) of E.O. 11609; redesignated
in sec. 2-1 of E.O. 12107.
2. In Sec. 550.1102, paragraph (b)(1) is revised and paragraph
(b)(3) is added to read as follows:
Sec. 550.1102 Scope.
* * * * *
(b) * * *
(1) Excluded debts. The procedures contained in this subpart do not
apply to--
(i) Debts arising under the Internal Revenue Code (26 U.S.C. 1 et
seq.);
[[Page 24407]]
(ii) Debts arising under the tariff laws of the United States;
(iii) Any case where collection of a debt by salary offset is
explicitly provided for or prohibited by another statute (e.g., travel
advances in 5 U.S.C. 5705 and employee training expenses in 5 U.S.C.
4108); or
(iv) Any other debt excluded by the FCCS or 31 CFR part 285.
* * * * *
(3) Compromise, suspension, or termination of collection actions.
This subpart does not preclude the compromise, suspension, or
termination of collection actions, where appropriate, as provided in
the FCCS (31 CFR 900.4) or the use of alternative dispute resolution
methods if they are not inconsistent with agency-specific laws and
regulations.
3. In Sec. 550.1103, the definition of ``FCCS'' is revised to read
as follows:
Sec. 550.1103 Definitions.
* * * * *
FCCS means the Federal Claims Collections Standards published in 31
CFR parts 900 through 904.
* * * * *
4. In Sec. 550.1104, paragraphs (d)(3), (i), and (j) are revised
to read as follows:
Sec. 550.1104 Agency regulations.
* * * * *
(d) * * *
(3) The frequency and amount of the intended deduction (stated as a
fixed dollar amount or as a percentage of pay, not to exceed 15 percent
of disposable pay except as provided in paragraph (i) of this section)
and the intention to continue the deductions until the debt is paid in
full or otherwise resolved;
* * * * *
(i) Limitation on amount of deductions. Prescribe the limitations
on the amount of the deduction. Ordinarily, the size of installment
deductions must bear a reasonable relationship to the size of the debt
and the employee's ability to pay (see the FCCS). However, the amount
deducted for any period may 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).
(j) Duration of deductions. Prescribe the duration of deductions.
Ordinarily, debts must be collected in one lump sum where possible.
However, if the employee is financially unable to pay in one lump sum
or the amount of the debt exceeds 15 percent of disposable pay (or
other applicable limitation as provided in paragraph (i) of this
section) for an officially established pay interval, collection must be
made in installments. Such installment deductions must be made over a
period not greater than the anticipated period of active duty or
employment, as the case may be, except as provided in paragraphs (l)
and (m) of this section.
* * * * *
5. Section 550.1106 is revised to read as follows:
Sec. 550.1106 Time limit on collection of debts.
Agencies may initiate salary offset to collect a debt without time
limitations on any debt outstanding after the Government's right to
collect the debt first accrued. (See Sec. 550.1108 for requirement
when debts are delinquent over 180 days.)
* * * * *
[FR Doc. 2011-10626 Filed 4-29-11; 8:45 am]
BILLING CODE 6325-39-P