[Code of Federal Regulations]
[Title 32, Volume 6]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR1697.8]

[Page 367]
 
                        TITLE 32-NATIONAL DEFENSE
 
                  CHAPTER XVI--SELECTIVE SERVICE SYSTEM
 
PART 1697_SALARY OFFSET--Table of Contents
 
Sec. 1697.8  Procedures for salary offset.

    (a) Deductions to liquidate an employee's debt will be by the method 
and in the amount stated in the Director's notice of intention to offset 
as provided in Sec. 1697.4. Debts will be collected in one lump sum 
where possible. If the employee is financially unable to pay in one lum 
sum, collection must be made in installments.
    (b) Debts will be collected by deduction at officially established 
pay intervals from an employee's current pay account unless alternative 
arrangements for repayment are made with the approval of the Director.
    (c) Installment deductions will be made over a period not greater 
than the anticipated period of employment. The size of installment 
deductions must bear a reasonable relationship to the size of the debt 
and the employee's ability to pay. The deduction for the pay intervals 
for any period must not exceed 15% of disposable pay unless the employee 
has agreed in writing to a deduction of a greater amount.
    (d) Unliquidated debts may be offset against any financial payment 
due to a separated employee including but not limited to final salary or 
leave payment in accordance with 31 U.S.C. 3716.