[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR34.23]

[Page 144]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 34_COLLECTION OF DEBTS--Table of Contents
 
                         Subpart C_Salary Offset
 
Sec. 34.23  Procedures for salary offset.

    Unless STATE agrees and regulations do not provide otherwise, the 
following procedures apply:
    (a) Method. Salary offset will be made by deduction at one or more 
officially established pay intervals from the current pay account of the 
employee without his or her consent.
    (b) Source. The source of salary offset is current disposable pay 
which is that part of current basic pay, special pay, retainer pay, or 
in the case of an employee not entitled to pay, other authorized pay 
remaining after the deduction of any amount required by law to be 
withheld.
    (c) Types of collection--(1) Lump sum payment. Ordinarily debts will 
be collected by salary offset in one lump sum if possible. However, if 
the employee is financially unable to pay in one lump sum or the amount 
of the debt exceeds 15 percent of disposable pay for an officially 
established pay interval, the collection by salary offset must be made 
in installment deductions.
    (2) Installment deductions. (i) The size of installment deductions 
must bear a reasonable relation to the size of the debt and the 
employee's ability to pay. If possible the size of the deduction will be 
that necessary to liquidate the debt in no more than 1 year. However, 
the amount deducted for any period must not exceed 15 percent of the 
disposable pay from which the deduction is made, except as provided by 
other regulations or unless the employee has agreed in writing to a 
greater amount.
    (ii) Installment payments of less than $25 per pay period will be 
accepted only in the most unusual circumstances.
    (iii) Installment deductions will be made over a period of not 
greater than the anticipated period of employment.
    (d) When deductions may begin. (1) Salary offset will begin on the 
date stated in the notice as provided in Sec. 34.18, unless a hearing 
is requested.
    (2) If there has been a timely request for a hearing, salary offset 
will begin as of the date stated in the written decision.
    (e) Additional offset provisions--(1) Liquidation from final check. 
If employment ends before salary offset is completed, the remaining debt 
will be liquidated by offset from payment of any nature due the employee 
from STATE (e.g. final salary payment, lump-sum leave, etc.).
    (2) Offset from other payments. If the debt cannot be liquidated by 
offset from any final check, the remaining debt will be liquidated by 
offset from later payments of any kind due the former employee from the 
United States, inclusive of retirement or disability funds pursuant to 
Sec. 34.10 of this regulation.