[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR2506.32]

[Page 566-567]
 
                        TITLE 45--PUBLIC WELFARE
 
       CHAPTER XXV--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
 
PART 2506_COLLECTION OF DEBTS--Table of Contents
 
                         Subpart C_Salary Offset
 
Sec. 2506.32  What are the Corporation's procedures for salary offset?

    (a) The Corporation will coordinate salary deductions under this 
subpart as appropriate.
    (b) If you are a Corporation employee who owes a debt to the 
Corporation, the Corporation's payroll office in Human Resources will 
determine the amount of your disposable pay and will implement the 
salary offset.

[[Page 567]]

    (c) Deductions will begin within three official pay periods 
following receipt by the Corporation's payroll office of certification 
of debt from the creditor agency.
    (d) The Notice provisions of these regulations do not apply to 
certain debts arising under this section (see Sec. 2506.14(c)).
    (e) Types of collection. (1) Lump-sum offset. If the amount of the 
debt is equal to or less than 15 percent of disposable pay, the debt 
generally will be collected through one lump-sum offset.
    (2) Installment deductions. Installment deductions will be made over 
a period not greater than the anticipated period of employment. The size 
and frequency of installment deductions will bear a reasonable relation 
to the size of the debt and your ability to pay. However, the amount 
deducted from any period will not exceed 15 percent of the disposable 
pay from which the deduction is made unless you have agreed in writing 
to the deduction of a greater amount. If possible, installment payments 
will be sufficient in size and frequency to liquidate the debt in three 
years or less.
    (3) Deductions from final check. A deduction exceeding the 15 
percent of disposable pay limitation may be made from any final salary 
payment under 31 U.S.C. 3716 and the FCCS in order to liquidate the 
debt, whether the employee is being separated voluntarily or 
involuntarily.
    (4) Deductions from other sources. If an employee subject to salary 
offset is separated from the Corporation and the balance of the debt 
cannot be liquidated by offset of the final salary check, the 
Corporation may offset later payments of any kind against the balance of 
the debt, as allowed by 31 U.S.C. 3716 and the FCCS.
    (f) Multiple debts. In instances where two or more creditor agencies 
are seeking salary offsets, or where two or more debts are owed to a 
single creditor agency, the Corporation's payroll office may, at its 
discretion, determine whether one or more debts should be offset 
simultaneously within the 15 percent limitation.