[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1210.27]

[Page 94-95]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
               CHAPTER II--MERIT SYSTEMS PROTECTION BOARD
 
PART 1210_DEBT MANAGEMENT--Table of Contents
 
                       Subpart B_Claims Collection
 
Sec.  1210.27  Interest, penalties, and administrative costs.

    (a) Interest will accrue on all debts from the date when the first 
notice of the debt and the interest requirement is mailed to the last 
known address or hand-delivered to the debtor if the debt is not paid 
within 30 days from the date the first notice was mailed. The MSPB will 
charge an annual rate of interest that is equal to the average 
investment rate for the Treasury tax and loan accounts on September 30 
of each year, rounded to the nearest whole per centum. This rate, which 
represents the current value of funds to the United

[[Page 95]]

States Treasury, may be revised quarterly by the Secretary of the 
Treasury and is published by the Secretary of the Treasury annually or 
quarterly in the Federal Register and the Treasury Financial Manual 
Bulletins.
    (b) The rate of interest initially assessed will remain fixed for 
the duration of the indebtedness, except that if a debtor defaults on a 
repayment agreement interest may be set at the Treasury rate in effect 
on the date a new agreement is executed.
    (c) The MSPB shall charge debtors for administrative costs incurred 
in handling overdue debts.
    (d) Interest will not be charged on administrative costs.
    (e) The MSPB shall assess a penalty charge, not to exceed 6 percent 
per year on debts which have been delinquent for more than 90 days. This 
change shall accrue from the date that the debt became delinquent.
    (f) The Chairman or his designee may waive in whole or in part the 
collection of interest and administrative and penalty charges if 
determined that collection would be against equity or not in the best 
interests of the United States. The MSPB shall waive the collection of 
interest on the debt or any part of the debt which is paid within 30 
days after the date on which interest began to accrue.