[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR11.45]

[Page 121-122]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY
 
PART 11--CLAIMS--Table of Contents
 
    Subpart C--Collection of Debts by the Government Under the Debt 
                         Collection Act of 1982
 
Sec. 11.45  Collection by salary offset.

    (a) General. Where an individual is an employee of the Federal 
Government or a member of the Armed Forces or a reserve component of the 
Armed Forces or is receiving retired or retainer pay for service as a 
Federal employee and where the individual is indebted to the United 
States and where the individual fails to satisfy his indebtedness 
voluntarily after the Agency has made demands in accordance with Sec. 
11.42 of this part, the ACO may institute collection action by salary or 
pay offset procedures in accordance with 5 U.S.C. 5514, 5 CFR 550.1101 
through 550.1106, 5 CFR part 845, 5 CFR 831.1301 et seq., and the 
procedures described below.
    (b) Notice to debtor. At least 30 days prior to initiating salary 
offset, the ACO or his designee shall send notice by certified mail, 
return receipt requested, to the debtor advising him of:
    (1) Nature, origin and amount of indebtedness determined by the 
Agency to be due, the date that the debt was due, and a statement that 
FEMA has complied with applicable statutes, regulations and procedures,
    (2) Agency intention to initiate proceedings to collect the debt by 
deductions from pay,
    (3) Rights available under 5 U.S.C. 5514(a),
    (4) Debtor's opportunity to inspect and copy Government records 
relating to the debt,
    (5) Opportunity to enter into a written agreement, under terms 
satisfactory to the ACO, to establish terms for the repayment of the 
debt, and
    (6) Opportunity for a hearing, described in paragraph (c) of this 
section, concerning the existence or the amount of the debt or, if no 
repayment schedule has been established (in accordance with paragraph 
(b)(1) of this section) concerning the terms of the repayment schedule,
    (7) If there is a statutory provision authorizing waiver, remission, 
or forgiveness of the debt due the United States; the individual will be 
notified as to:
    (i) Nature of the provision,
    (ii) Explanation of the conditions under which the waiver shall be 
granted,
    (iii) Reasonable opportunity to request a waiver,
    (iv) If waiver is requested, then a written response will be given 
to the request.
    (c) Hearing. The debtor shall file a written petition for hearing or 
for a waiver (if applicable) on or before the twentieth calendar day 
after receipt of notice, referred to in paragraph (b) of this section, 
addressed to the Agency Collections Officer, Federal Emergency 
Management Agency, Washington, DC 20472. The postmark or receipt date, 
if mail is not used, shall establish the date of petition.
    (1) The hearing official shall be an Administrative Law Judge or a 
person of grade GS/GM-14 or higher, not under the supervision or control 
of the Director, FEMA. The Director may enter into interagency support 
agreements with other Federal agencies or departments for providing 
hearing officials.
    (2) The hearing shall be informal but the debtor shall be given the 
basic safeguards of due process. The debtor shall have the right to be 
represented by an attorney. A summary record shall be made of the 
proceedings at the hearing. The hearing shall, insofar as possible, be 
conducted at a location and time convenient to the debtor.
    (3) As soon as practicable, but in no event later than 60 days after 
the filing of the petition for hearing, the hearing official shall 
render a final decision. If a hearing is requested, no further action 
shall be taken to collect the debt until the final decision is rendered.
    (d) Amount deducted. The amount deducted from pay for any period 
shall not exceed 15 percent of disposable pay. However, the debtor may 
voluntarily agree to the deduction of a greater amount of pay. 
Disposable pay means that part of pay of any individual remainng after 
the deduction from those earnings of any amounts required

[[Page 122]]

by law to be withheld. However, installment payments of less than $25.00 
will be accepted only in the most unusual circumstances. Disposable pay 
is defined in 5 CFR 550.1103 and 5 CFR 581.105(b) through (f).
    (e) Procedural requirements specified in paragraph (c) of this 
section shall not be used in cases of collections of such obligations as 
changes in coverage under a Federal benefits program or resulting from 
ministerial adjustments pay and allowances which cannot be placed in 
effect immediately because of normal processing delays.
    (f) When an employee, who is subject to salary offset in accordance 
with this section and who is making repayment in installments, finds 
that total repayment of the debt is about to be made, then the employee 
must notify the employee's payroll office, at least two pay periods 
before the final payment, that final payment is being made.
    (g) Debts arising from travel advances provided under 5 U.S. C. 5705 
and for travel and transportation expenses for transferred employees 
under 5 U.S.C. 5724 may be collected by taking offsets in accordance 
with 44 CFR 11.43.

[49 FR 38267, Sept. 28, 1984, as amended at 50 FR 40007, Oct. 1, 1985; 
57 FR 54715, Nov. 20, 1992]