[Code of Federal Regulations]

[Title 45, Volume 3]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR708.10]



[Page 313-314]

 

                        TITLE 45--PUBLIC WELFARE

 

                 CHAPTER VII--COMMISSION ON CIVIL RIGHTS

 

PART 708_COLLECTION BY SALARY OFFSET FROM INDEBTED CURRENT AND FORMER 

EMPLOYEES--Table of Contents

 

Sec. 708.10  Procedures for salary offset.



    (a) Deductions to liquidate an employee's debt will be by the method 

and in the amount stated in the Assistant Staff Director for 

Management's written notice of intent to collect from the employee's 

current pay, unless alternative arrangements for repayment are made.

    (b) If the employee filed a petition for a hearing with the 

Assistant Staff Director for Management before the expiration of the 

period provided, then deductions will begin after the hearing official 

has provided the employee with a hearing, and a final written decision 

has been rendered in favor of the Commission.

    (c) A debt will be collected in a lump-sum if possible.

    (d) If an employee is financially unable to pay in one lump sum or 

the amount of the debt exceeds 15 percent of disposable pay for an 

officially established pay interval, collection must be made in 

installments. The size of the installment deduction(s) will bear a 

reasonable relationship to the size of the debt and the deduction will 

be established for a period not greater than the anticipated period of 

employment. 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



[[Page 314]]



greater amount. If possible, the installment payment will be sufficient 

in size and frequency to liquidate the debt in no more than three years.

    (e) Installment payments may be less than 15 percent of disposable 

pay if the Assistant Staff Director for Management determines that the 

15 percent deduction would create an extreme financial hardship.

    (f) Installment payments of less than $25.00 per pay period or 

$50.00 per month, will only be accepted in the most unusual 

circumstances.

    (g) Unliquidated debts may be offset by the paying agency under 31 

U.S.C. 3716 against any financial payment due to a separating employee 

including but not limited to final salary payment, retired pay, or lump 

sum leave, etc. as of the date of separation to the extent necessary to 

liquidate the debt.

    (h) If the debt cannot be liquidated by offset from any final 

payment due a separated employee it may be recovered by the offset in 

accordance with 31 U.S.C. 3716 from any later payments due the former 

employee from the United States.