[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR845.206]

[Page 347]
 
                    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. 845.206  Collection by administrative offset.

    (a) Offset from retirement payments. A debt may be collected in 
whole or in part from any lump-sum retirement payment or recurring 
annuity payments.
    (b) Offset from other payments--(1) Administrative offset. (i) A 
debt may be offset from other payments due the debtor from other 
agencies in accordance with 4 CFR 102.3 except that offset from back pay 
awarded under the provisions of 5 U.S.C. 5596 (and 5 CFR 550.801 et 
seq.) will be made in accordance with Sec. 550.805(e)(2) of this 
chapter.
    (ii) In determining whether to collect claims by means of 
administrative offset after the expiration of the 6-year limitation 
provided in 5 U.S.C. 2415, the Director or his or her designee will 
determine the cost effectiveness of leaving a claim unresolved for more 
than 6 years. This decision will be based on such factors as the amount 
of the debt, the cost of collection, and the likelihood of recovering 
the debt.
    (2) Salary offset. When the debtor is an employee, or a member of 
the Armed Forces, OPM may effect collection action by offset of the 
debtor's pay in accordance with 5 U.S.C. 5514 and 5 CFR 550.1101 et seq. 
Due process described in Sec. 845.204 will apply. The questions of fact 
and liability, and entitlements to waiver or compromise determined 
through that process are deemed correct and will not be amended under 
salary offset procedures. When the debtor did not receive a hearing on 
the amount of the offset under Sec. 845.204 and requests such a 
hearing, one will be conducted in accordance with subpart K of part 550 
of this chapter.