[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR845.304]

[Page 350]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 845--FEDERAL EMPLOYEES RETIREMENT SYSTEM--DEBT COLLECTION--Table of Contents
 
             Subpart C--Standards for Waiver of Overpayments
 
Sec. 845.304  Financial hardship.

    Financial hardship may be deemed to exist in, but not limited to, 
those situations when the annuitant from whom collection is sought needs 
substantially all of his or her current income and liquid assets to meet 
current ordinary and necessary living expenses and liabilities.
    (a) Considerations. Some pertinent considerations in determining 
whether recovery would cause financial hardship are as follows:
    (1) The individual's financial ability to pay at the time collection 
is scheduled to be made.
    (2) Income to other family member(s), if such member's ordinary and 
necessary living expenses are included in expenses reported by the 
annuitant.
    (b) Exemptions. Assets exempt from execution under State law should 
not be considered in determining an individual's ability to repay the 
indebtedness. Rather primary emphasis will be placed upon the 
annuitant's liquid assets and current income in making such 
determinations.