[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-56.010]

[Page 401]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-56--SALARY OFFSET FOR INDEBTEDNESS OF GENERAL SERVICES ADMINISTRATION 
EMPLOYEES TO THE UNITED STATES--Table of Contents
 
Sec. 105-56.010  Deductions.

    (a) When deductions may begin. If the employee filed a petition for 
hearing with the program official before the expiration of the period 
provided for in Sec. 105-56.006, then deductions will begin after the 
hearing official has provided the employee with a hearing, and the final 
written decision is in favor of the agency. It is the responsibility of 
the employee's program official to issue the pre-offset notice to the 
employee and to instruct the National Payroll Center to begin offset in 
accordance with the final written decision.
    (b) Retired or separated employees. If the employee retires, 
resigns, or is terminated before collection of the amount of the 
indebtedness is completed, the remaining indebtedness will be offset 
from any subsequent payments of any nature. If the debt cannot be 
satisfied from subsequent payments, then the debt must be collected 
according to the procedures for administrative offset pursuant to 31 
U.S.C. 3716.
    (c) Types of collection. A debt may be collected in one lump sum or 
in installments. Collection will be by lump-sum unless the employee is 
able to demonstrate to the program official who signed the demand letter 
that he or she is financially unable to pay in one lump-sum. In these 
cases, collection will be by installment deductions.
    (d) Methods of collection. If the debt cannot be collected in one 
lump sum, the debt will be collected by deductions at officially 
established pay intervals from an employee's current pay account, unless 
the employee and the program official agree to an alternative repayment 
schedule. The alternative arrangement must be in writing and signed by 
both the employee and the program official.
    (1) Installment deductions. Installment deductions will be made over 
the shortest period possible. The size and frequency of installment 
deductions will bear a reasonable relation to the size of the debt and 
the employee's ability to pay. However, the amount deducted for any 
period will 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. The installment payment will be 
sufficient in size and frequency to pay the debt over the shortest 
period possible and never to exceed three years. Installment payments of 
less than $100 per pay period will be accepted only in the most unusual 
circumstances.
    (2) Sources of deductions. GSA will make deductions only from basic 
pay, special pay, incentive pay, retired pay, retainer pay, or in the 
case of an employee not entitled to basic pay, other authorized pay.
    (e) Interest, penalties and administrative costs on debts under this 
part will be assessed according to the provisions of 4 CFR 102.13.