[Code of Federal Regulations]
[Title 5, Volume 2, Parts 700 to 1199]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR845.205]

[Page 330-331]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 845--FEDERAL EMPLOYEES RETIREMENT SYSTEM--DEBT COLLECTION--Table of Contents
 
               Subpart B--Collection of Overpayment Debts
 
Sec. 845.205  Collection of debts.

    (a) Means of collection. Collection of a debt may be made by means 
of offset under Sec. 845.206, or under any statutory provision providing 
for offset of money due the debtor from the Federal Government, or by 
referral to the Justice Department for litigation, as provided in 
Sec. 845.206. Referral may also be made to a collection agency under the 
provisions of the FCCS.
    (b) Additional charges. Interest, penalties, and administrative 
costs will be assessed on the debt in accordance with standards 
established in the FCCS at 4 CFR 102.13. Additional charges will be 
waived when required by the FCCS. In addition, such charges may be 
waived when OPM determines--
    (1) Collection would be against equity and good conscience under the 
standards prescribed in Secs. 845.303 through 845.305; or
    (2) Waiver would be in the best interest of the United States.
    (c) Collection in installments. (1) Whenever feasible, debts will be 
collected in one lump sum.
    (2) However, installments payments may be effected when--
    (i) The debtor establishes that he or she is financially unable to 
pay in one lump sum; or
    (ii)(A) The benefit payable is insufficient to make collection in 
one lump sum;

[[Page 331]]

    (B) The debtor fails to respond to a demand for full payment; and
    (C) Offset is available.
    (3) The amount of the installment payments will be set in accordance 
with the criteria in 4 CFR 102.11.
    (d) Commencement of collection. (1) Except as provided in paragraph 
(d)(2) of this section, collection will begin after the time limits for 
requesting further rights stated in Sec. 845.204(a)(6) expire or OPM has 
issued decisions on all timely requests for those rights and the Merit 
Systems Protection Board has acted on any timely appeal of a waiver 
denial, unless failure to make an offset would substantially prejudice 
the Government's ability to collect the debt; and the time before the 
payment is to be made does not reasonably permit the completion of the 
proceedings in Sec. 845.204 or litigation. When offset begins without 
completion of the administrative review process, these procedures will 
be completed promptly, and amounts recovered by offset but later found 
not owed will be refunded promptly.
    (2) The procedures identified in Sec. 845.204 will not be applied 
when the debt is caused by a retroactive adjustment in the periodic rate 
of annuity or any deduction taken from annuity when the adjustment is a 
result of the annuitant's election of different entitlements under law, 
if the adjustment is made within 120 days of the effective date of the 
election; or interim estimated payments made before the formal 
determination of entitlement to annuity, if the amount is recouped from 
the total annuity payable on the first day of the month following the 
last advance payment or the date the formal determination is made, 
whichever is later.