[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: 45CFR2506.33]

[Page 567-568]
 
                        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. 2506.33  How will the Corporation coordinate salary offsets with 
other agencies?

    (a) Responsibilities of the Corporation as the creditor agency (i.e. 
when the debtor owes a debt to the Corporation and is an employee of 
another agency). Upon completion of the procedures established in this 
subpart and pursuant to 5 U.S.C. 5514 and 31 U.S.C. 3716, the 
Corporation must submit a claim to a paying agency or disbursing 
official.
    (1) In its claim, the Corporation must certify, in writing, the 
following:
    (i) That the employee owes the debt;
    (ii) The amount and basis of the debt;
    (iii) The date the Corporation's right to collect the debt first 
accrued;
    (iv) That the Corporation's regulations in this subpart have been 
approved by OPM under 5 CFR part 550, subpart K; and
    (v) That the Corporation has met the certification requirements of 
the paying agency.
    (2) If the collection must be made in installments, the 
Corporation's claim will also advise the paying agency of the amount or 
percentage of disposable pay to be collected in each installment. The 
Corporation may also advise the paying agency of the number of 
installments to be collected and the date of the first installment, if 
that date is other than the next officially established pay period.
    (3) The Corporation will also include in its claim:
    (i) The employee's written consent to the salary offset;
    (ii) The employee's signed statement acknowledging receipt of the 
procedures required by 5 U.S.C. 5514; or
    (iii) Information regarding the completion of procedures required by 
5 U.S.C. 5514, including the actions taken and the dates of those 
actions.
    (4) If the employee is in the process of separating and has not 
received a final salary check or other final payment(s) from the paying 
agency, the Corporation must submit its claim to the paying agency or 
disbursing official for collection under 31 U.S.C. 3716. The paying 
agency will (under its regulations adopted under 5 U.S.C. 5514 and 5 CFR 
part 550, subpart K), certify the total amount of its collection on the 
debt and notify the employee and the

[[Page 568]]

Corporation. If the paying agency's collection does not fully satisfy 
the debt, and the paying agency is aware that the debtor is entitled to 
payments from the Civil Service Retirement and Disability Fund or other 
similar payments that may be due the debtor employee from other Federal 
government sources, then (under its regulations adopted under 5 U.S.C. 
5514 and 5 CFR part 550, subpart K), the paying agency will provide 
written notice of the outstanding debt to the agency responsible for 
making the other payments to the debtor employee. The written notice 
will state that the employee owes a debt, the amount of the debt, and 
that the provisions of this section have been fully complied with. 
However, the Corporation must submit a properly certified claim under 
this paragraph (a)(4) to the agency responsible for making the other 
payments before the collection can be made.
    (5) If the employee is already separated and all payments due from 
his or her former paying agency have been paid, the Corporation may 
request, unless otherwise prohibited, that money due and payable to the 
employee from the Civil Service Retirement and Disability Fund or other 
similar funds be administratively offset to collect the debt.
    (6) Employee transfer. When an employee transfers from one paying 
agency to another paying agency, the Corporation will not repeat the due 
process procedures described in 5 U.S.C. 5514 and this subpart to resume 
the collection. The Corporation will submit a properly certified claim 
to the new paying agency and will subsequently review the debt to ensure 
that the collection is resumed by the new paying agency.
    (b) Responsibilities of the Corporation as the paying agency (i.e., 
when the debtor owes a debt to another agency and is an employee of the 
Corporation).
    (1) Complete claim. When the Corporation receives a certified claim 
from a creditor agency (under the creditor agency's regulations adopted 
under 5 U.S.C. 5514 and 5 CFR part 550, subpart K), deductions should be 
scheduled to begin within three officially established pay intervals. 
Before deductions can begin, the Corporation sends the employee a 
written notice containing:
    (i) A statement that the Corporation has received a certified claim 
from the creditor agency;
    (ii) The amount of the debt;
    (iii) The date salary offset deductions will begin; and
    (iv) The amount of such deductions.
    (2) Incomplete claim. When the Corporation receives an incomplete 
certification of debt from a creditor agency, the Corporation will 
return the claim with a notice that the creditor agency must:
    (i) Comply with the procedures required under 5 U.S.C. 5514 and 5 
CFR part 550, subpart K, and
    (ii) Properly certify a claim to the Corporation before the 
Corporation will take action to collect from the employee's current pay 
account.
    (3) The Corporation is not authorized to review the merits of the 
creditor agency's determination with respect to the amount or validity 
of the debt certified by the creditor agency.
    (4) Employees who transfer from the Corporation to another paying 
agency. If, after the creditor agency has submitted the claim to the 
Corporation, the employee transfers from the Corporation to a different 
paying agency before the debt is collected in full, the Corporation will 
certify the total amount collected on the debt and notify the employee 
and the creditor agency in writing. The notification to the creditor 
agency will include information on the employee's transfer.