[Code of Federal Regulations]
[Title 10, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR16.13]

[Page 307-308]
 
                            TITLE 10--ENERGY
 
                CHAPTER I--NUCLEAR REGULATORY COMMISSION
 
PART 16_SALARY OFFSET PROCEDURES FOR COLLECTING DEBTS OWED BY FEDERAL 
EMPLOYEES TO THE FEDERAL GOVERNMENT--Table of Contents
 
Sec. 16.13  Procedures for centralized administrative offset.

    (a) The NRC must notify Treasury of all debts that are delinquent as 
defined in the FCCS (over 180 days old) so that recovery may be made by 
centralized administrative offset. This includes those debts the NRC 
seeks to recover from the pay account of an employee of another agency 
via salary offset. The Treasury and other Federal disbursing officials 
will match payments, including Federal salary payments, against such 
debts. When a match occurs, and all the requirements for offset have 
been met, the payments will be offset to collect the debt. Prior to 
offset of the pay account of an employee, the NRC must comply with the 
requirements of 5 U.S.C. 5514, 5 CFR part 550, and 10 CFR part 15. 
Procedures for notifying Treasury of a debt for purposes of collection 
by centralized administrative offset are contained in 31 CFR part 285 
and 10 CFR 15.33. Procedures for internal salary offset are contained in 
Sec. 16.15 of this chapter.
    (b) When the NRC determines that an employee of another Federal 
agency owes a delinquent debt to the NRC, the NRC will, as appropriate:
    (1) Arrange for a hearing upon the proper petitioning by the 
employee;
    (2) Provide the Federal employee with a notice and an opportunity to 
dispute the debt as contained in 5 U.S.C. 5514 and 10 CFR 15.26.
    (3) Submit the debt to Treasury for centralized administrative 
offset and certify in writing that the debtor has been afforded the 
legally required due process notification.
    (4) If collection must be made in installments, the NRC must advise 
the paying agency of the amount or percentage of disposable pay to be 
collected in each installment.
    (c) Offset amount. (1) The amount offset from a salary payment under 
this section shall be the lesser of:
    (i) The amount of the debt, including any interest, penalties, and 
administrative costs; or
    (ii) An amount up to 15 percent of the debtor's disposable pay.
    (2) Alternatively, the amount offset may be an amount agreed upon, 
in writing, by the debtor and the NRC.

[[Page 308]]

    (3) Offsets will continue until the debt, including any interest, 
penalties, and administrative costs, is paid in full or otherwise 
resolved to the satisfaction of the NRC.
    (d) Priorities. (1) A levy pursuant to the Internal Revenue Code of 
1986 shall take precedence over other deductions under this section.
    (2) When a salary payment may be reduced to collect more than one 
debt, amounts offset under this section will be applied to a debt only 
after amounts offset have been applied to satisfy past due child support 
debt assigned to a State pursuant 26 U.S.C. 6402(c) and 31 CFR 
285.7(h)(2).
    (e) Notice. (1) Before offsetting a salary payment, the disbursing 
official, or the paying agency on behalf of the disbursing official, 
shall notify the Federal employee in writing of the date that deductions 
from salary will commence and of the amount of such deductions.
    (2)(i) When an offset occurs under this section, the disbursing 
official, or the paying agency on behalf of the disbursing official, 
shall notify the Federal employee in writing that an offset has occurred 
including:
    (A) A description of the payment and the amount of the offset taken;
    (B) Identification of NRC as the agency requesting the offset; and,
    (C) A contact point within the NRC that will handle concerns 
regarding the offset.
    (ii) The information described in paragraphs (e)(2)(i)(B) and 
(e)(2)(i)(C) of this section does not need to be provided to the Federal 
employee when the offset occurs if such information was included in a 
prior notice from the disbursing official or paying agency.
    (3) The disbursing official will advise the NRC of the names, 
mailing addresses, and taxpayer identifying numbers of the debtors from 
whom amounts of past-due, legally enforceable debt were collected and of 
the amounts collected from each debtor. The disbursing official will not 
advise the NRC of the source of payment from which such amounts were 
collected.
    (f) Fees. Agencies that perform centralized salary offset computer 
matching services may charge a fee sufficient to cover the full cost of 
such services. In addition, Treasury or a paying agency acting on behalf 
of Treasury, may charge a fee sufficient to cover the full cost of 
implementing the administrative offset program. Treasury may deduct the 
fees from amounts collected by offset or may bill the NRC. Fees charged 
for offset shall be based on actual administrative offsets completed.
    (g) Disposition of amounts collected. The disbursing official 
conducting the offset will transmit amounts collected for debts, less 
fees charged under paragraph (f) of this section, to NRC. If an 
erroneous offset payment is made to the NRC, the disbursing official 
will notify the NRC that an erroneous offset payment has been made. The 
disbursing official may deduct the amount of the erroneous offset 
payment from future amounts payable to the NRC. Alternatively, upon the 
disbursing official's request, the NRC shall return promptly to the 
disbursing official or the affected payee an amount equal to the amount 
of the erroneous payment (without regard to whether any other amounts 
payable to the agency have been paid). The disbursing official and the 
NRC shall adjust the debtor records appropriately.

[67 FR 57508, Sept. 11, 2002]