[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: 17CFR204.43]

[Page 212-213]
 
              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. 204.43  Coordinating offset with another federal agency.

    (a) Responsibility of the Commission as the Creditor Agency. The 
Commission shall request recovery from the current paying agency. Upon 
completion of the procedures established in these regulations and 
pursuant to 5 U.S.C. 5514, 5 CFR 550.1108 the Commission must:
    (1) Certify, in writing, 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 
Commission's regulations implementing 5 U.S.C. 5514 have been approved 
by OPM.
    (2) If the collection must be made in installments, the Commission 
also must advise the paying agency of the amount or percentage of 
disposable pay to be collected in each installment, and if the 
Commission wishes, the number and the 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 actions taken pursuant to 5 
U.S.C. 5514(b) and give the date(s) the action(s) was 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) Except as otherwise provided in this paragraph (a)(4), the 
Commission must submit a debt claim containing the information specified 
in paragraphs (a)(1) through (3) of this section and an installment 
agreement (or other instruction on the payment schedule), if applicable, 
to the employee's paying agency.
    (5) If the employee is in the process of separating, the Commission 
must submit its debt claim to the employee's paying agency for 
collection as provided in 5 CFR 550.1104(l). Pursuant to 5 CFR 1101, the 
paying agency must certify the total amount of its collection and notify 
the creditor agency and employee. If the paying agency is aware that the 
employee is entitled to payments from the Civil Service Retirement and 
Disability Fund, or other similar payments, it must provide written 
notification to the agency responsible for making such payments that the 
debtor owes a debt (including the amount) and that the paying agency has 
fully complied with the provisions of this section. The Commission must 
submit a properly certified claim to the agency responsible for making 
such payments before the collection can be made.
    (6) If the employee is already separated and all payments due from 
his or her former paying agency have been paid, the Commission may 
request, unless otherwise prohibited, that money due and payable to the 
employee from the Civil Service Retirement and Disability Fund (5 CFR 
831.1801) or other similar funds, be administratively offset to collect 
the debt (See 31 U.S.C. 3716 and 4 CFR part 101).
    (7) When an employee transfers to another paying agency, the 
Commission shall not repeat the due process procedures described in 5 
U.S.C. 5514 and subpart B of this part to resume the collection. The 
Commission must review the debt upon receiving the former paying 
agency's notice of the employee's transfer to make sure the collection 
is resumed by the new paying agency. The Commission must submit a 
properly certified claim to the

[[Page 213]]

new paying agency before collection can be resumed.
    (b) Responsibility of the Commission as the paying agency--(1) 
Complete claim. When the Commission receives a properly certified claim 
from a creditor agency, deductions should be scheduled to begin at the 
next officially established pay interval. The Commission must notify the 
employee in writing that the Commission has received a certified debt 
claim from the creditor agency (including the amount) and the date 
salary offset will begin and the amount of such deductions.
    (2) Incomplete claim. When the Commission receives an incomplete 
certification of debt from a creditor agency, the Commission must return 
the debt claim with notice that procedures under 5 U.S.C. 5514 and 
subpart B of this part must be provided and a properly certified debt 
claim received before action will be taken to collect from the 
employee's current pay account.
    (3) Review. The Commission is not authorized to review the merits of 
the creditor agency's determination with respect to the amount or 
validity of the debt certified by the creditor agency.
    (4) Employees who transfer from one paying agency to another. If, 
after the creditor agency has submitted the debt claim to the Commission 
and before the Commission collects the debt in full, the employee 
transfers to another agency, the Commission must certify the total 
amount collected on the debt. One copy of the certification must be 
furnished to the employee and one copy to the creditor agency along with 
notice of the employee's transfer.
    (c) Responsibility of the Program Official. (1) The Program Official 
shall coordinate debt collections and shall, as appropriate:
    (i) Arrange for a hearing upon proper petition by a federal 
employee; and
    (ii) Prescribe, upon consultation with the General Counsel, such 
practices and procedures as may be necessary to carry out the intent of 
this regulation.
    (2) The Program Official shall be responsible for:
    (i) Ensuring that each certification of debt sent to a paying agency 
is consistent with the pre-offset notice (Sec. 204.33, Pre-offset 
notice).
    (ii) Obtaining hearing officials from other agencies pursuant to 
Sec. 204.36, Granting of a pre-offset hearing.
    (iii) Ensuring that hearings are properly scheduled.