[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR32.10]



[Page 69-70]

 

                           TITLE 34--EDUCATION

 

PART 32_SALARY OFFSET TO RECOVER OVERPAYMENTS OF PAY OR ALLOWANCES FROM 

DEPARTMENT OF EDUCATION EMPLOYEES--Table of Contents

 

Sec.  32.10  Deductions process.



    (a) Debts must be collected in one lump sum where possible. If the 

employee does not agree to a lump sum that exceeds 15 percent of 

disposable pay, the debt must be collected in installment deductions at 

officially established pay intervals in the amount established under:

    (1) A voluntary repayment agreement;

    (2) An involuntary repayment schedule where no hearing is requested; 

or

    (3) The schedule established under the written hearing decision.



[[Page 70]]



    (b) Installment deductions must be made over a period not greater 

than the anticipated period of employment, except as provided under 

paragraph (d) of this section. If possible, the installment payment must 

be sufficient in size and frequency to liquidate the debt in, at most, 

three years. Installment payments of less than $25 may be accepted only 

in the most unusual circumstances.

    (c) Deductions must begin:

    (1) After the employee has entered a voluntary repayment schedule;

    (2) If a waiver is requested under Sec.  32.4(b), after the employee 

has been denied a waiver by the Secretary; or

    (3) If a hearing is requested under Sec.  32.5, after a written 

decision.

    (d) If the employee retires or resigns or his or her employment ends 

before collection of the debt is completed, the amount necessary to 

liquidate the debt must be offset from subsequent payments of any nature 

(for example, final salary payment and/or lump sum annual leave payment) 

due the employee on the date of separation. If the debt cannot be 

liquidated by offset from any such final payment due the employee on the 

date of separation, the debt must be liquidated by administrative offset 

pursuant to 31 U.S.C. 3716 from later payments of any kind due the 

employee, where appropriate. After the Secretary has complied with the 

procedures in this part, the Secretary may refer the debt to a paying 

agency for collection by offset under 5 CFR 550.1108.

    (e) Interest, penalties and administrative costs on debts collected 

under this part must be assessed, in accordance with the provisions of 4 

CFR 102.13.

    (f) An employee's payment, whether voluntary or involuntary, of all 

or any portion of an alleged debt collected pursuant to this part may 

not be construed as a waiver of any rights which the employee may have 

under this part or any other provision of law, except as otherwise 

provided by law.

    (g) Amounts paid or deducted pursuant to this part by an employee 

for a debt that is waived or otherwise found not owing to the United 

States or which the Secretary is ordered to refund must be promptly 

refunded to the employee.



(Authority: 5 U.S.C. 5514; 31 U.S.C. 3716)