[Code of Federal Regulations]
[Title 17, Volume 2]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR204.34]

[Page 209]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER II--SECURITIES AND EXCHANGE COMMISSION
 
PART 204--RULES RELATING TO DEBT COLLECTION--Table of Contents
 
                        Subpart B--Salary Offset
 
Sec. 204.34  Employee response.

    (a) Introduction. An employee must respond to a pre-offset notice, 
if at all, within 15 calendar days following receipt, in one or more of 
the ways discussed in Sec. 204.34, Employee response, and Sec. 204.35, 
Petition for pre-offset hearing. Where applicable, the employee bears 
the burdens of proof and persuasion.
    (b) Responses must be submitted in writing to the program official 
who signed the pre-offset notice. A timely response will stay the 
commencement of collection by salary offset, at least until the issuance 
of a written decision. (See Sec. 204.37, Extensions of time). Failure to 
submit a timely response will be treated as an admission of 
indebtedness, and will result in salary offset in accordance with the 
terms specified in the pre-offset notice.
    (c) A response filed after expiration of the 15 day period may be 
accepted if the employee can show that the delay was due to 
circumstances beyond his or her control or failure to receive notice of 
the time limit (unless otherwise aware of it).
    (d) Voluntary repayment agreement. An employee may request to enter 
into a voluntary written agreement for repayment of the debt in lieu of 
offset. It is within the discretion of the program official whether to 
enter into such an agreement, and if so, upon what terms. Voluntary 
deductions may exceed 15 percent of the employee's disposable pay. If an 
agreement is reached, the agreement must be in writing, and must be 
signed by both the employee and the program official. A signed copy must 
be sent to the Comptroller's office. The program official shall notify 
the employee in writing of its decision not to accept the proposed 
voluntary repayment schedule before making any deductions from the 
employee's salary.
    (e) Waiver. Any request for waiver of the debt must be accompanied 
by evidence that the waiver is authorized by law.
    (f) Reconsideration. An employee may request reconsideration of the 
existence or amount of the debt or the offset schedule as reflected in 
the pre-offset notice. The request must be accompanied by a detailed 
narrative and supporting documentation as to why the offset decision is 
erroneous and/or why the offset schedule imposes an undue hardship.