[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: 5CFR845.408]

[Page 354-355]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 845_FEDERAL EMPLOYEES RETIREMENT SYSTEM_DEBT COLLECTION--Table 
of Contents
 
 Subpart D_Agency Requests to OPM for Recovery of a Debt From the Civil 
                         Service Retirement Fund
 
Sec. 845.408  Special processing for fraud claims.

    When an agency sends a claim indicating fraud, presentation of a 
false claim, misrepresentation by the debtor or any other party 
interested in the claim, or any claim based in whole or part on conduct 
violating the antitrust laws, to the Department of Justice (Justice) for 
possible treatment as a fraud claim (4 CFR 101.3), the following special 
procedures apply.
    (a) Agency processing. If the debtor is separated or separates while 
Justice is reviewing the claim, the paying agency must send the 
Individual Retirement Record to OPM, as required by Sec. 845.405(c)(2). 
The agency where the claim arose must send OPM notice that a claim is 
pending with Justice. (See Sec. 845.405(b)(6) for instructions on 
giving OPM a notice of debt.)
    (b) Department of Justice processing. (1) The Attorney General or a 
designee will decide whether a debt claim sent in by an agency will be 
reserved for collection by Justice as a fraud claim. Upon receiving a 
possible fraud claim to be collected by offset from the Fund, the 
Attorney General or a designee must notify OPM. The notice to OPM must 
contain the following:
    (i) The name, date of birth, and social security number of the 
debtor;
    (ii) The amount of the possible fraud claim, if known;
    (iii) The basis of the possible fraud claim; and
    (iv) A statement that the claim is being considered as a possible 
fraud claim, the collection of which is reserved to Justice.
    (2) When there is a pending refund application, the Attorney General 
or designee must file a complaint seeking a judgment on the claim and 
send a copy of the complaint to OPM; or as provided in 4 CFR 101.3, 
refer the claim to the agency where the claim arose and submit a copy of 
the referral to OPM within 180 days of the date of either notice from 
the agency that a claim is pending with Justice (paragraph (a) of this 
section) or notice from Justice

[[Page 355]]

that it has received a possible fraud claim (paragraph (b)(1) of this 
section) whichever is earlier. When the claim is referred to the agency 
where it arose, the agency must begin administrative collection action 
under 4 CFR 102.4 and send a complete debt claim to OPM as required in 
Sec. 845.405.
    (c) OPM processing against refunds. (1) Upon receipt of a notice 
under paragraph (a) or (b)(1) of this section, whichever is earlier, OPM 
will withhold the amount of the debt claim, if known; notify the debtor 
that the amount of the debt will be withheld from the refund for at 
least 180 days from the date of the notice that initiated OPM 
processing; and pay the balance to the debtor. If the amount of the debt 
claim is not known, OPM will notify the debtor that a debt claim may be 
offset against his or her refund and that OPM will not pay any amount 
until either the amount of the debt claim is established, or the time 
limit for filing a complaint in court or submitting the debt claim 
expires, whichever comes first.
    (2) If the Attorney General files a complaint and notifies OPM 
within the applicable 180-day period, OPM will continue to withhold 
payment of the lump-sum credit until there is a final judgment.
    (3) If the Attorney General refers the claim to the agency where the 
claim arose (creditor agency) and notifies OPM within the applicable 
180-day period, OPM will notify the creditor agency that (i) the 
procedures in this subpart and 4 CFR 102.4 must be completed; and (ii) a 
debt claim must be sent to OPM within 120 days of the date of OPM's 
notice to the creditor agency. At the request of the creditor agency, 
one extension of time of not more than 60 days will be granted, as 
provided by Sec. 845.406(a).
    (4) If OPM is not notified that a complaint has been filed or that 
the claim has been referred to the creditor agency within the applicable 
180-day period, OPM will pay the balance of the refund to the debtor.
    (d) OPM processing against annuities. If the debtor has filed an 
annuity claim, OPM will not take action against the annuity. OPM will 
continue to pay the annuity unless and until there is a final judgment 
for the United States or submission of a complete debt claim.
    (e) OPM collection and payment of the debt. (1) If the United States 
obtains a judgment against the debtor for the amount of the debt or the 
creditor agency submits a complete debt claim, OPM will collect and pay 
the debt to the creditor agency as provided in Sec. Sec. 845.406 and 
845.407.
    (2) If the suit or the administrative proceeding results in a 
judgment for the debtor without establishing a debt to the United 
States, OPM will pay the balance of the refund to the debtor upon 
receipt of a certified copy of the judgment or administrative decision.