Federal Employee Salary Offset Procedures for the Collection of a Debt Owed to the Federal Government, 64353-64358 [2023-19716]

Agencies

• Defense Nuclear Facilities Safety Board

[Federal Register Volume 88, Number 180 (Tuesday, September 19, 2023)]
[Rules and Regulations]
[Pages 64353-64358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19716]


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DEFENSE NUCLEAR FACILITIES SAFETY BOARD

10 CFR Part 1710

[Docket No. DNFSB-2023-02]
RIN 3155-AA02


Federal Employee Salary Offset Procedures for the Collection of a 
Debt Owed to the Federal Government

AGENCY: Defense Nuclear Facilities Safety Board.

ACTION: Interim rule with request for comments.

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SUMMARY: The Defense Nuclear Facilities Safety Board (Board) is issuing 
interim regulations to govern the collection of debts owed to the Board 
and to the United States by federal employees.

DATES: This interim final rule is effective October 19, 2023. Comments 
must be submitted on or before October 19, 2023.

ADDRESSES: You may submit comments at any time prior to the comment 
deadline by the following methods:
    Email: Send an email to [email protected]. Please include ``Federal 
Employee Offset Procedures'' in the subject line of your email.
    Mail: Send hard copy comments to the Defense Nuclear Facilities 
Safety Board, Attn: Office of the General Counsel, 625 Indiana Avenue 
NW, Suite 700, Washington, DC 20004-2901.

FOR FURTHER INFORMATION CONTACT: Patricia A. Hargrave, Associate 
General Counsel, Defense Nuclear Facilities Safety Board, 625 Indiana 
Avenue NW, Suite 700, Washington, DC 20004-2901, (202) 694-7000.

SUPPLEMENTARY INFORMATION:

I. Background

    These regulations implement the debt collection procedures provided 
under section 5 of the Debt Collection Act (DCA), as amended, codified 
at 5 U.S.C. 5514. The DCA authorizes the federal government to collect 
debts by offset from the salaries of federal employees without the 
employee's consent, provided that the employee is properly notified and 
given the opportunity to exercise certain administrative rights.
    The DCA, codified at 5 U.S.C. 5514, made changes in the way 
executive agencies collect debts owed to the federal government. The 
purpose of the DCA is to improve the ability of the government to 
collect money owed to it. The DCA requires each agency to establish a 
salary offset program for the collection of debts owed by federal 
employees to the federal government. Before an agency may collect a 
debt by salary offset, an employee-debtor must be provided with notice 
of the debt and the opportunity to (1) inspect and copy government 
records relating to the debt, (2) enter into a written repayment 
agreement, and (3) request an impartial hearing on the agency's 
determination of the existence or the amount of the debt. The employee 
must notify the agency of his or her intent to exercise these rights 
within the time prescribed in the agency's regulations.

[[Page 64354]]

    Office of Personnel Management (OPM) regulations govern the salary 
offset program and establish certain minimum standards and procedures 
that must be incorporated into each agency's salary offset regulations. 
OPM's regulations require each agency to submit proposed regulations to 
OPM for review and approval prior to becoming final rules. The Board 
sent a copy of its interim rule to OPM in compliance with 5 CFR 
550.1105. OPM approved the Board's interim rule on salary offset on 
July 27, 2023.
    The Board is establishing a new part 1710 in 10 CFR, chapter XVII, 
that would contain the provisions necessary to meet the requirements of 
the DCA. The new part 1710 provides procedures for the Board to collect 
debts owed to the federal government by administrative offset from a 
federal employee's salary without his or her consent. This rule applies 
to all federal employees who owe debts to the Board and to current 
employees of the Board who owe debts to other federal agencies.
    The Board has determined that this document is interpretative 
because it merely implements a definitive statutory scheme and the 
requirements contained in regulations promulgated by OPM, codified in 5 
CFR part 550, subpart K. Accordingly, no notice of proposed rulemaking 
is required pursuant to 5 U.S.C. 553(b)(A). In addition, because this 
rule relates to agency management and personnel, no notice of proposed 
rulemaking is required pursuant to 5 U.S.C. 553(a)(2). The Board, 
however, will consider any public comments before issuing a final rule.

II. Regulatory Analysis

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, agencies 
must consider the impact of their rulemakings on ``small entities'' 
(small businesses, small organizations, and local governments) when 
publishing regulations subject to the notice and comment requirements 
of the Administrative Procedure Act. As noted in section I. Background 
above, the Board has determined that notice and the opportunity to 
comment are unnecessary because this interim rule is interpretative and 
relates to agency management and practice. Therefore, no analysis is 
required by the Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This interim rule will not result in the expenditure by state, 
local, and tribal governments, in aggregate, or by the private sector, 
of $100,000,000 or more in any one year, and it will not significantly 
or uniquely affect small governments. Therefore, no actions are deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995, 2 U.S.C. 658 and 1501-03, 1531-34.

Small Business Regulatory Enforcement Fairness Act of 1996

    This interim rule is not a major rule as defined by section 251 of 
the Small Business Regulatory Enforcement Fairness Act of 1996, as 
amended, 5 U.S.C. 804. This rule will not result in an annual effect on 
the economy of $100,000,000 or more; a major increase in costs or 
prices; or significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based companies to compete with foreign-based companies in 
domestic and export markets.

Paperwork Reduction Act

    This interim rule contains no new reporting or recordkeeping 
requirements under the Paperwork Reduction Act (PRA) of 1995, 44 U.S.C. 
3501 et seq. The adoption of the FCCS regulations does not require or 
request information from members of the public. Therefore, this 
rulemaking is not covered by the restrictions of the PRA.

Executive Order 12988 and Executive Order 13132--Federalism

    According to Executive Orders 12988 and 13132, agencies must state 
in clear language the preemptive effect, if any, of new regulations. 
The creation of this interim rule affects only how the Board collects 
debts owed by federal employees to the government by salary offset. It 
does not have any effect on preemption of state, tribal, or local 
government laws or otherwise have federalism implications.

Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., provides that 
before a rule may take effect, the agency promulgating the rule must 
submit a rule report, which includes a copy of the rule, to each house 
of the Congress and to the Comptroller General of the United States. If 
the rule meets the definition of a major rule, the Comptroller General 
must provide a report to Congress and the rule may not take effect 
until 60 days after it has been published in the Federal Register. The 
Office of Information and Regulatory Affairs has designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2). The Board is 
submitting the rule report to Congress and the Comptroller General of 
the United States.

Finding of No Significant Environmental Impact

    Implementing these regulations will not result in significant 
impacts affecting the quality of the human environment, unavoidable 
adverse environmental effects, rejection of reasonable alternatives to 
the proposed action, or irreversible or irretrievable commitments of 
environmental resources. The agency has not consulted with any other 
agencies in making this determination.

Executive Order12866--Regulatory Planning and Review

    Executive Order 12866 requires federal agencies submit significant 
regulatory actions to the Office of Management of Budget. This interim 
rule is not significant and will not have a significant impact on small 
entities. The interim rule implements statutory and regulatory 
requirements to collect employee debts as allowed by statute.

III. Rulemaking Procedure

    The Board is publishing this interim rule without a prior proposal 
because it is interpretative as it merely implements a definitive 
statutory scheme and the requirements contained in regulations 
promulgated by OPM. The Board, however, will consider any comments 
before issuing the final rule.

List of Subjects in 10 CFR Part 1710

    Debts, Claims, Salary offset.


0
For the reasons described in the preamble, the Board amends chapter 
XVII of title 10, Code of Federal Regulations, by adding part 1710 to 
read as follows:

PART 1710--FEDERAL EMPLOYEE SALARY OFFSET PROCEDURES FOR THE 
COLLECTION OF A DEBT OWED TO THE FEDERAL GOVERNMENT

Subpart A--General Provisions
Sec.
1710.101 Scope.
1710.103 Definitions.
1710.105 Application.
Subpart B--Notice, Hearing, and Salary Offset Process
1710.107 Notice requirements before offset.
1710.109 Hearing.
1710.111 Procedures for salary offset.
1710.113 Coordinating salary offset with other agencies.
1710.115 Notice of salary offset from another agency.
1710.117 Refunds.
1710.119 Non-waiver of rights.
1710.121 Interest, penalties, and administrative charges.


[[Page 64355]]


    Authority:  5 U.S.C. 5514; 5 CFR part 550 subpart K.

Subpart A--General Provisions


Sec.  1710.101  Scope.

    (a) This part provides procedures for the collection by 
administrative offset of a federal employee's salary without his/her 
consent to satisfy certain debts owed to the federal government. This 
part applies to all federal employees who owe debts to the Defense 
Nuclear Facilities Safety Board (Board) and to current employees of the 
Board who owe debts to other federal agencies. This part does not apply 
when the employee consents to recovery from his/her current pay 
account.
    (b) These procedures do not apply to debts or claims arising under:
    (1) The Internal Revenue Code of 1954, as amended, 26 U.S.C. 1 et 
seq.;
    (2) The tariff laws of the United States; or
    (3) Any case where a collection of a debt is explicitly provided 
for or prohibited by another statute.
    (c) These procedures do not preclude the compromise, suspension, or 
termination of collection action where appropriate under the standards 
implementing the revised Federal Claims Collection Standards (FCCS), 31 
U.S.C. 3711 et seq., 31 CFR chapter IX, parts 900 through 904.
    (d) This part does not preclude an employee from requesting waiver 
of an overpayment under 5 U.S.C. 5584 or in any way questioning the 
amount or validity of the debt by submitting a subsequent claim to the 
Board. This part does not preclude an employee from requesting a waiver 
pursuant to other statutory provisions applicable to the particular 
debt being collected.
    (e) The Board is not limited to collection remedies contained in 
the revised FCCS. The FCCS is not intended to impair common law 
remedies.


Sec.  1710.103  Definitions.

    Administrative charges are those amounts assessed by the Board to 
cover the costs of processing and handling delinquent debts due the 
government.
    Administrative offset means withholding money payable by the United 
States Government to, or held by the government for, a person to 
satisfy a debt the person owes the United States Government.
    Agency means any agency of the executive, legislative, and judicial 
branches of the federal government, including government corporations.
    Centralized salary offset computer matching describes the 
computerized process used to match delinquent debt records with federal 
salary payment records when the purpose of the match is to identify 
federal employees who owe debts to the federal government.
    Creditor agency means the agency to which the debt is owed, 
including a debt collection center when acting on behalf of a creditor 
agency in matters pertaining to the collection of a debt.
    Debt and claim are used synonymously to refer to an amount of 
money, funds, or property that has been determined by an agency 
official to be owed to the United States from any person, organization, 
or entity, except another federal agency. For the purposes of 
administrative offset under 31 U.S.C. 3716, the terms ``debt'' and 
``claim'' include an amount of money, funds, or property owed by a 
person to a state (including past-due support being enforced by a 
state), the District of Columbia, American Samoa, Guam, the United 
States Virgin Islands, the Commonwealth of the Northern Mariana 
Islands, or the Commonwealth of Puerto Rico.
    Debt collection center means the Department of the Treasury or 
other government agency or division designated by the Secretary of the 
Treasury, with authority to collect debts on behalf of creditor 
agencies.
    Delinquent debt record refers to the information about a debt that 
an agency submits to Treasury when the agency refers the debt for 
collection by offset in accordance with the provision of 31 U.S.C. 
3716.
    Disbursing official means an official who has authority to disburse 
federal salary payments pursuant to 31 U.S.C. 3321 or another law.
    Disposable pay means that part of current basic pay, special pay, 
incentive pay, retired pay, retainer pay, or in the case of an employee 
not entitled to basic pay, other authorized pay remaining after the 
deduction of:
    (1) Any amount required by law to be withheld;
    (2) Amounts properly withheld for federal, state, or local income 
tax purposes;
    (3) Amounts deducted as health insurance premiums;
    (4) Amounts deducted as normal retirement contributions, not 
including amounts deducted for supplementary coverage; and
    (5) Amounts deducted as normal life insurance premiums, not 
including amounts deducted for supplementary coverage.
    Employee is any individual employed by any agency of the executive, 
legislative, and judicial branches of the federal government, including 
government corporations.
    FCCS means the Federal Claims Collection Standards jointly 
published by the Department of the Treasury and the Department of 
Justice at 31 CFR parts 900 through 904.
    Hearing official means an individual responsible for conducting any 
hearing with respect to the existence or amount of a debt claimed or 
the repayment schedule if not established by written agreement between 
the employee and the Board, and who renders a decision on the basis of 
this hearing.
    Paying agency means the agency that employs the individual who owes 
the debt and authorizes the payment of his/her current pay.
    Salary offset means an administrative offset to collect a debt 
under 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his or her consent.
    Treasury means the Department of the Treasury.
    Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt allegedly owed by an employee to an agency as 
permitted or required by 5 U.S.C. 5584, 5 U.S.C. 8346(b), or any other 
law.


Sec.  1710.105  Application.

    The regulations in this part are to be followed when:
    (a) The Board is owed a debt by an individual currently employed by 
another federal agency;
    (b) The Board is owed a debt by an individual who is a current 
employee of the Board; or
    (c) The Board employs an individual who owes a debt to another 
federal agency.

Subpart B--Notice, Hearing, and Salary Offset Process


Sec.  1710.107  Notice requirements.

    (a) Deductions under the authority of 5 U.S.C. 5514 shall not be 
made unless the creditor agency provides the employee with written 
notice that he/she owes a debt to the Federal government a minimum of 
30 calendar days before salary offset is initiated. When the Board is 
the creditor agency, this notice of intent to offset an employee's 
salary shall be hand-delivered at work, or sent by registered mail, 
return receipt requested, to the employee's most current address that 
is available to the Board. The written notice will contain:
    (1) A statement that the debt is owed and an explanation of its 
origin, nature, and amount;
    (2) The creditor agency's intention to collect the debt by 
deducting from the

[[Page 64356]]

employee's current disposable pay account until the debt and all 
accumulated interest are paid in full;
    (3) The amount and frequency of the intended deduction (stated as a 
fixed dollar amount or as a percentage of pay, not to exceed 15 percent 
of disposable pay) and the intention to continue the deduction until 
the debt is paid in full or otherwise resolved;
    (4) An explanation of interest, penalties, and administrative 
charges, including a statement that these charges will be assessed 
unless excused in accordance with the Federal Claims Collection 
Standards at 31 CFR parts 900 through 904;
    (5) The employee's right to inspect and copy government records 
pertaining to the debt or, if the employee or his or her representative 
cannot personally inspect the records, to request and receive a copy of 
these records;
    (6) If not previously provided, the opportunity (under terms 
agreeable to the Board) to establish a schedule for the voluntary 
repayment of the debt or to enter into a written agreement to establish 
a schedule for repayment of the debt in lieu of offset (31 CFR 901.2) 
(the agreement must be in writing, signed by the employee and the 
Board, and documented in the Board's files);
    (7) The employee's right to a hearing conducted by an official 
arranged for by the Board (an administrative law judge, or 
alternatively, a hearing official not under the control of the head of 
the agency) if a petition is filed as prescribed in Sec.  1710.109;
    (8) The methods and time period for petitioning for hearings;
    (9) A statement that the timely filing of a petition for a hearing 
will stay the commencement of collection proceedings;
    (10) A statement that a final decision on the hearing will be 
issued not later than 60 days after the filing of the petition 
requesting the hearing unless the employee requests and the hearing 
official grants a delay in the proceedings;
    (11) A statement that any knowingly false or frivolous statements, 
representations, or evidence may subject the employee to:
    (i) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 
5 CFR part 752, or any other applicable statutes or regulations;
    (ii) Penalties under the False Claims Act, sections 3729-3731 of 
title 31, United States Code, or any other applicable statutory 
authority; or
    (iii) Criminal penalties under sections 286, 287, 1001, and 1002 of 
title 18, United States Code or any other applicable statutory 
authority.
    (12) A statement of other rights and remedies available to the 
employee under statutes or regulations governing the program for which 
the collection is being made; and
    (13) Unless there are contractual or statutory provisions to the 
contrary, a statement that amounts paid on or deducted for the debt 
which are later waived or found not owed to the United States will be 
promptly refunded to the employee.
    (b) Entitlement to hearing:
    (1) An employee who has received a notice under paragraph (a) that 
his or her debt will be collected by means of salary offset may request 
a hearing concerning the existence or amount of the debt.
    (2) If a hearing is given, the employee is entitled to receive a 
written decision from the official holding the hearing on the following 
issues:
    (i) the determination of the creditor agency concerning the 
existence or amount of the debt; and
    (ii) The repayment schedule, if it was not established by written 
agreement between the employee and the creditor agency.''
    (c) Exceptions to entitlement to notice, hearing, written 
responses, and final decisions:
    (1) Any adjustment to pay arising out of any employee's election of 
coverage or a change in coverage under a federal benefits program 
requiring periodic deductions from pay, if the amount to be recovered 
was accumulated over four pay periods or less;
    (2) A routine intra-agency adjustment of pay that is made to 
correct an overpayment of pay attributable to clerical or 
administrative errors or delays in processing pay documents, if the 
overpayment occurred within the four pay periods preceding the 
adjustment, and, at the time of such adjustment, or as soon thereafter 
as practical, the individual is provided written notice of the nature 
and the amount of the adjustment and point of contact for contesting 
such adjustment; or
    (3) Any adjustment to collect a debt amounting to $50 or less, if, 
at the time of such adjustment, or as soon thereafter as practical, the 
individual is provided written notice of the nature and the amount of 
the adjustment and a point of contact for contesting such adjustment.


Sec.  1710.109  Hearing.

    (a) Request for hearing. An employee shall file a petition for a 
hearing in accordance with the instructions outlined in the creditor 
agency's notice of salary offset.
    (1) If the Board is the creditor agency, a hearing may be requested 
by filing a written petition stating why the employee disputes the 
existence or amount of the debt or the repayment schedule if it was not 
established by written agreement between the employee and the Board. 
The employee shall sign the petition and fully identify and explain 
with reasonable specificity all the facts, evidence, and witnesses, if 
any, which the employee believes support his or her position. The 
petition for a hearing must be received no later than fifteen (15) 
calendar days after receipt of the notice of offset unless the employee 
can show that the delay in meeting the deadline date was because of 
circumstances beyond his or her control or because of failure to 
receive notice of the time limit (unless he or she was otherwise aware 
of it).
    (2) [Reserved]
    (b) Failure to submit timely request for hearing. If the employee 
fails to submit a request for hearing within the time period described 
in paragraph (a)(1) of this section, the employee will have waived the 
right to a hearing, and salary offset may be initiated. The Board, 
however, shall accept a late request for hearing if the employee can 
show that the late request was the result of circumstances beyond the 
employee's control or because of a failure to receive actual notice of 
the filing deadline.
    (c) Hearing official. The Board must obtain the services of a 
hearing official who is not under the supervision or control of the 
Board. The Board may contact the Chief Financial Officer to request a 
hearing official.
    (d) Notice of hearing. After the employee requests a hearing, the 
designated hearing official shall inform the employee of the form of 
the hearing to be provided. For oral hearings, the notice shall set 
forth the date, time, and location of the hearing. For paper hearings, 
the notice shall notify the employee of the date by which he or she 
should submit written arguments to the designated hearing official. The 
hearing official shall give the employee reasonable time to submit 
documentation in support of the employee's position. The hearing 
official shall schedule a new hearing date if requested by both 
parties. The hearing official shall give both parties reasonable notice 
of the time and place of a rescheduled hearing.
    (e) Oral hearing. The hearing official will conduct an oral hearing 
if he or she determines that the matter cannot be resolved by review of 
documentary evidence alone (for example, when an issue of credibility 
or veracity is involved). The hearing need not take the

[[Page 64357]]

form of an evidentiary hearing, but may be conducted in a manner 
determined by the hearing official, including but not limited to:
    (1) Informal conferences with the hearing official, in which the 
employee and agency representative will be given full opportunity to 
present evidence, witnesses, and argument;
    (2) Informal meetings with an interview of the employee by the 
hearing official; or
    (3) Formal written submissions, with an opportunity for oral 
presentation.
    (f) Paper hearing. If the hearing official determines that an oral 
hearing is not necessary, he or she will make the determination based 
upon a review of the available written record, including any 
documentation submitted by the employee in support of his or her 
position.
    (g) Failure to appear or submit documentary evidence. In the 
absence of good cause shown (for example, excused illness), if the 
employee fails to appear at an oral hearing or fails to submit 
documentary evidence as required for a paper hearing, the employee will 
have waived the right to a hearing, and salary offset may be initiated. 
Further, the employee will have been deemed to admit the existence and 
amount of the debt as described in the notice of intent to offset. If 
the Board's representative fails to appear at an oral hearing, the 
hearing official shall proceed with the hearing as scheduled and will 
make his or her determination based upon the oral testimony presented 
and the documentary evidence submitted by both parties.
    (h) Burden of proof. The Board will have the initial burden to 
prove the existence and amount of the debt. Thereafter, if the employee 
disputes the existence or amount of the debt, the employee must prove 
by a preponderance of the evidence that no debt exists or that the 
amount of the debt is incorrect. In addition, the employee may present 
evidence that the proposed terms of the repayment schedule are 
unlawful, would cause a financial hardship to the employee, or that 
collection of the debt may not be pursued due to operation of law.
    (i) Record. The hearing official shall maintain a summary record of 
any hearing provided by this part. Witnesses will testify under oath or 
affirmation in oral hearings.
    (j) Date of decision. The hearing official shall issue a written 
opinion stating his or her decision, based upon documentary evidence 
and information developed at the hearing, as soon as practicable after 
the hearing, but not later than 60 days after the date on which the 
request for hearing was received by the Board. If the employee requests 
a delay in the proceedings, the deadline for the decision may be 
postponed by the number of days by which the hearing was postponed. 
When a decision is not timely rendered, the Board shall waive penalties 
applied to the debt for the period beginning with the date the decision 
is due and ending on the date the decision is issued. The written 
decision must include:
    (1) A statement of the facts presented to demonstrate the nature 
and origin of the alleged debt;
    (2) The hearing official's analysis, findings, and conclusions;
    (3) The amount and validity of the debt; and
    (4) The repayment schedule, where appropriate.


Sec.  1710.111  Procedures for salary offset.

    (a) Determination of disposable pay. The Board will determine an 
employee's disposable pay (as defined in Sec.  1710.103) and will 
implement salary offset as described in paragraph (c) of this section, 
or when requested by another agency, as described in Sec.  1710.113(c). 
If the debtor is not employed by the Board, the Board will request the 
agency employing the debtor to determine the amount of the employee's 
disposable pay and implement salary offset upon request.
    (b) When salary offset begins. Deductions will begin within three 
official pay periods following receipt of the creditor agency's request 
for offset.
    (c) Amount of salary offset. The amount to be offset from each 
salary payment will be up to 15 percent of a debtor's disposable pay, 
as follows:
    (1) If the amount of the debt is equal to or less than 15 percent 
of the disposable pay, such debt generally will be collected in one 
lump sum payment;
    (2) Installment deductions will be made over a period of no greater 
than the anticipated period of employment. An installment deduction 
will not exceed 15 percent of the disposable pay from which the 
deduction is made unless the employee has agreed in writing to the 
deduction of a greater amount. An installment deduction may be less 
than 15 percent of disposable pay if the creditor agency has determined 
that smaller deductions are appropriate based on the employee's ability 
to pay.
    (d) Final salary payment. After the employee has separated either 
voluntarily or involuntarily from the payment agency, the p]ayment 
agency may make a lump sum deduction exceeding 15 percent of disposable 
pay from any final salary or other payments pursuant to 31 U.S.C. 3716 
in order to satisfy the debt.
    (e) Multiple debts. In instances where two or more creditor 
agencies are seeking salary offset, or where two or more debts are owed 
to a single creditor agency, the Board's finance office may, at its 
discretion, determine whether one or more debts should be offset 
simultaneously within the 15 percent limitation.
    (f) Precedence of debts owed to the Board. For Board employees, 
debts owed to the Board generally take precedence over debts owed to 
other agencies. In the event that a debt to the Board is certified 
while an employee is subject to a salary offset to repay another 
agency, the Board's finance office may decide whether to have that debt 
repaid in full before collecting its claim or whether changes should be 
made in the salary deduction being sent to the other agency. If debts 
owed to the Board can be collected in one pay period, the finance 
office may suspend the salary offset to the other agency for that pay 
period in order to liquidate the Board debt.
    (g) Order of debt collection. When an employee owes two or more 
debts, the best interests of the government shall be the primary 
consideration in determining the order of debt collection. The Board's 
finance office, in making this determination, will be guided primarily 
by the statute of limitations that affects the collection of the 
debt(s).


Sec.  1710.113  Coordinating salary offset with other agencies.

    (a) Responsibility of the Board as the creditor agency. The 
Chairperson or his or her designee shall coordinate debt collections 
with other agencies and shall, as appropriate:
    (1) Arrange for a hearing or special review upon proper petitioning 
by a federal employee; and
    (2) Prescribe, upon consultation with the General Counsel, such 
additional practices and procedures as may be necessary to carry out 
the intent of this regulation.
    (3) The designated salary offset coordinator will be responsible 
for:
    (i) Ensuring that each notice of intent to offset is consistent 
with the requirements of Sec. Sec.  1710.107 and 1710.111 of this part;
    (ii) Ensuring that each certification of debt that is sent to a 
paying agency is consistent with the requirements of paragraph (b) of 
this section;
    (iii) Obtaining hearing officials; and
    (iv) Ensuring that hearings are properly scheduled.
    (b) Requesting recovery from current paying agency. Upon completion 
of the

[[Page 64358]]

procedures established in these regulations and pursuant to 5 U.S.C. 
5514, the Board must:
    (1) Certify, in writing, to the paying agency that the employee 
owes the debt, the amount and basis of the debt, the date on which 
payment(s) is due, the date the Government's right to collect the debt 
first accrued, and that the Board's regulations implementing 5 U.S.C. 
5514 have been approved by the Office of Personnel Management;
    (2) Advise the paying agency of the amount or percentage of 
disposable pay to be collected in each installment and the number and 
commencing date of the installments (if a date other than the next 
officially established pay period is required);
    (3) Advise the paying agency of the action(s) taken under 5 U.S.C. 
5514(b) and give the date(s) action(s) were taken (unless the employee 
has consented to the salary offset in writing or signed a statement 
acknowledging receipt of the required procedures and the written 
consent or statement is forwarded to the paying agency);
    (4) Submit a debt claim certification containing the information 
specified in paragraphs (b)(1), (2), and (3) of this section and an 
installment agreement (or other instruction on the payment schedule), 
if applicable, to the paying agency; and
    (5) Submit the debt claim to the paying agency for collection if 
the employee is in the process of separating, and has not received a 
final salary check, or other final payment(s) from the paying agency. 
The Board must submit a properly certified claim to the agency 
responsible for making such payments before the collection can be made.
    (c) Separated employee. If the employee is already separated and 
all payments due from his or her former paying agency have been paid, 
the Board may request, unless otherwise prohibited, that money due and 
payable to the employee from the Civil Service Retirement and 
Disability Fund (5 CFR 831.1801 et seq. or 5 CFR 845.401 et seq.), or 
other similar funds, be administratively offset to collect the debt (31 
U.S.C. 3716 and the FCCS).
    (d) Employee transfer. When an employee transfers from one paying 
agency to another paying agency, the Board is not required to repeat 
the due process procedures described in 5 U.S.C. 5514 and this subpart 
to resume the collection. The Board will submit a properly certified 
claim to the new paying agency and will subsequently review the debt to 
verify that the collection is continued by the new paying agency.


Sec.  1710.115  Notice of salary offset from another agency.

    (a) Complete claim. When the Board receives a certified claim from 
a creditor agency, deductions should be scheduled to begin at the next 
officially established pay interval. The Board's finance office will 
provide the employee with a notice that contains:
    (1) A statement that the Board has received a certified debt claim 
from the creditor agency;
    (2) The amount of the debt claim;
    (3) The date salary offset deductions will begin;
    (4) The amount of such deductions; and
    (5) A copy of the notice received from the creditor agency.
    (b) Notice of Claim. The Board's finance office will provide a copy 
of the notice to the creditor agency and advise the creditor agency of 
the dollar amount to be offset and the pay period when the offset will 
begin.
    (c) Incomplete claim. When the Board receives an incomplete 
certification of debt from a creditor agency, it must return the debt 
claim with notice that procedures under 5 U.S.C. 5514 and 10 CFR 
1710.113 must be followed and a properly certified debt claim received 
before action will be taken to collect from the employee's current pay 
account.
    (d) Review. The Board will not review the merits of the creditor 
agency's determination with respect to the amount or validity of the 
debt certified by the creditor agency.
    (e) Employees who transfer from one paying agency to another. If, 
after the creditor agency has submitted the debt claim to the Board, 
the employee transfers from the Board to a different paying agency 
before the debt is collected in full, the Board will certify the total 
amount collected on the debt. One copy of the certification will be 
furnished to the employee and one copy to the creditor agency, along 
with notice of the employee's transfer.


Sec.  1710.117  Refunds.

    (a) The Board will refund promptly any amounts deducted to satisfy 
debts owed to the United States when the debt is waived, found not owed 
to the United States, or when directed by an administrative or judicial 
order.
    (b) Unless required or permitted by law or contract, refunds under 
this section may not bear interest.


Sec.  1710.119  Non-waiver of rights.

    An employee's involuntary payment of all or any part of a debt 
collected under these regulations will not be construed as a waiver of 
any rights that the employee may have under 5 U.S.C. 5514 or any other 
provision of contract or law, unless there are statutes or contracts to 
the contrary.


Sec.  1710.121  Interest, penalties, and administrative charges.

    Charges may be assessed for interest, penalties, and administrative 
charges in accordance with the FCCS, 31 CFR 901.9.

    Dated: September 7, 2023.
Joyce Connery,
Chair.
[FR Doc. 2023-19716 Filed 9-18-23; 8:45 am]
BILLING CODE 3670-01-P