[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-56.026]

[Page 430-431]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-56_SALARY OFFSET FOR INDEBTEDNESS OF FEDERAL EMPLOYEES TO THE 
UNITED STATES--Table of Contents
 
   Subpart C_Centralized Salary Offset (CSO) Procedures_GSA as Paying 
                                 Agency
 
Sec. 105-56.026  GSA participation.

    (a) As required under 5 U.S.C. 5514(a)(1), creditor agencies must 
participate at least annually in centralized salary offset computer 
matching. To meet this requirement, creditor agencies will notify FMS of 
all past-due, legally enforceable debts delinquent for more than 180 
days for purposes of administrative offset, as required under 31 U.S.C. 
3716(c)(6). Additionally, creditor agencies may notify FMS of past-due, 
legally enforceable debts delinquent for less than 180 days for purposes 
of administrative offset.

[[Page 431]]

    (b) Prior to submitting a debt to FMS for purposes of collection by 
administrative offset, including salary offset, creditor agencies will 
provide written certification to FMS that--
    (1) The debt is past-due and legally enforceable in the amount 
submitted to FMS and that the creditor agency will ensure that 
collections (other than collections through offset) are properly 
credited to the debt;
    (2) Except in the case of a judgment debt or as otherwise allowed by 
law, the debt is referred for offset within ten years after the creditor 
agency's right of action accrues;
    (3) The creditor agency has complied with the provisions of 31 
U.S.C. 3716 (administrative offset) and related regulations including, 
but not limited to, the provisions requiring the creditor agency to 
provide the debtor with applicable notices and opportunities for a 
review of the debt; and
    (4) The creditor agency has complied with the provisions of 5 U.S.C. 
5514 (salary offset) and related regulations including, but not limited 
to, the provisions requiring the creditor agency to provide the debtor 
with applicable notices and opportunities for a hearing.
    (c) FMS may waive the certification requirement set forth in 
paragraph (b)(4) of this section as a prerequisite to submitting the 
debt to FMS. If FMS waives the certification requirement, before an 
offset occurs, the creditor agency will provide the Federal employee 
with the notices and opportunities for a hearing as required by 5 U.S.C. 
5514 and applicable regulations, and will certify to FMS that the 
requirements of 5 U.S.C. 5514 and applicable regulations have been met.
    (d) The creditor agency will notify FMS immediately of any payments 
credited by the agency to the debtor's account, other than credits for 
amounts collected by offset, after submission of the debt to FMS. The 
creditor agency will notify FMS once the debt is paid in its entirety. 
The creditor agency will also notify FMS immediately of any change in 
the status of the legal enforceability of the debt, for example, if the 
agency receives notice that the debtor has filed for bankruptcy 
protection.