29 C.F.R. PART 1650—DEBT COLLECTION
Title 29 - Labor
Authority: 5 U.S.C. 5514; 31 U.S.C. 321, 3701, 3711, 3716, 3720A, 3720D; EO 13019, 61 FR 51763, 3 CFR 1996 Comp., p. 216; 5 CFR 550.1101.
Source: 59 FR 24, Jan. 3, 1994, unless otherwise noted.
Source: 56 FR 28817, June 25, 1991, unless otherwise noted. Redesignated at 61 FR 7067, Feb. 26, 1996.
This subpart sets forth the procedures to be followed in the collection of debts owed to the United States by present or former Commission employees by salary offset under 5 U.S.C. 5514. The general standards and procedures governing the collection, compromise, termination, and referral to the Department of Justice of claims for money and property that are prescribed in the regulations issued jointly by the General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Parts 101–105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC. [56 FR 28817, June 25, 1991. Redesignated at 61 FR 7067, Feb. 26, 1996, as amended at 64 FR 28917, May 28, 1999] (a) Applicability. (1) The procedures in this subpart apply to the collection of debts owed to the Commission or another Federal agency by present or former Commission employees by offset against their basic pay, special pay, incentive pay, retired pay, retainer pay, or, in the case of an individual not entitled to basic pay, other authorized pay from the Commission or other agency pursuant to the offset authority in 5 U.S.C. 5514. (2) The procedures in this subpart apply to the collection by salary offset of the following types of debts owed to the United States: Interest, penalties, fees, direct loans, loans insured and guaranteed by the United States, leases, rents, royalties, services, sales of real or personal property, fines and forfeitures (except those arising under the Uniform Code of Military Justice), erroneous payments of pay and all other similar sources. (b) Non-applicability. The procedures in this subpart do not apply where collection of a debt by salary offset is explicitly provided for or prohibited by another statute (e.g., travel advances in 5 U.S.C. 5705 and employee training expenses in 5 U.S.C. 4108). The procedures in this subpart also do not apply to debts or claims arising under the Internal Revenue Code of 1954 as amended, 25 U.S.C. 1 et seq., the Social Security Act, 42 U.S.C. 301 et seq., or the tariff laws of the United States. (c) Waiver requests and claims to the GAO. The procedures in this subpart do not preclude an employee from requesting waiver of a salary overpayment under 5 U.S.C. 5584, or any other similar provision of law, or in any way questioning the amount or validity of a debt by submitting a subsequent claim to the General Accounting Office. (d) Compromise, suspension, or termination under the Federal Claims Collection Standards. Nothing in this subpart precludes the compromise, suspension, or termination of 5 U.S.C. 5514 salary offset collection actions, where appropriate, in accordance with the Federal Claims Collection Standards in 4 CFR chapter II. For the purpose of this subpart, terms are defined as follows: (a) Agency means: (1) An Executive agency as defined in section 105 of title 5, United States Code, including the U.S. Postal Service and the U.S. Postal Rate Commission; (2) A military department as defined in section 102 of title 5, United States Code; (3) An agency or court in the judicial branch, including a court as defined in section 610 of title 28, United States Code, the District Court for the Northern Mariana Islands, and the Judicial Panel on Multidistrict Litigation; (4) An agency of the legislative branch, including the U.S. Senate and the U.S. House of Representatives; and (5) Other independent establishments that are entities of the Federal Government. (b) Creditor agency means an agency to which a debt is owed. (c) Debt means an amount owed to the United Stated from sources that include loans insured or guaranteed by the United States and all other amounts due the United States from fees, leases, rents, royalties, services, sales of real or personal property, overpayments, penalties, damages, interest, fines and forfeitures (except those arising under the Uniform Code of Military Justice), and all other similar sources. (d) 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 any amount required by law to be withheld. Deductions described in 5 CFR 581.105(b) through (f) will not be used to determine disposable pay subject to salary offset. (e) Employee means a current employee of an agency, including a current member of the Armed Forces or a Reserve of the Armed Forces (Reserves). (f) FCCS means the Federal Claims Collection Standards jointly published by the Justice Department and the General Accounting Office at 4 CFR chapter II. (g) FRMS means Financial and Resource Management Services, EEOC Office of Management. (h) Paying agency means the agency employing the individual and authorizing the payment of his or her current pay. (i) 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. (j) 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, 10 U.S.C. 2774, 32 U.S.C. 716, 5 U.S.C. 8346(b), or any other applicable statute. (a) Notice of the Commission's intent to collect a debt by salary offset shall be given at least 30 days in advance. The written notice shall include, inter alia, the following: (1) The Commission's determination that a debt is owed, including origin, nature, and amount of the debt; (2) The Commission's intention to collect the debt by means of deduction from the employee's current disposal pay account; (3) The amount, frequency, proposed beginning date, and duration of the intended deduction(s); (4) An explanation of the Commission's policy concerning interest, penalties, and administrative costs; (5) The employee's right to inspect and copy the Commission's records relating to the debt; (6) The opportunity to establish a schedule for voluntary repayment of the debt agreeable to the Commission in lieu of an offset; (7) The employee's right to an oral hearing, the method and time period for petitioning for a hearing, and the oral hearing procedures; (8) The employee's right to request reconsideration of the validity of the indebtedness; and (9) The employee's right to request waiver, forgiveness, or compromise and the standards involved for each. (b) Exception to the advance notice requirement. Where an adjustment to pay arises out of an employee's election of coverage or change in coverage under a Federal benefits program requiring periodic deductions from the employee's pay and the amount to be recovered was accumulated over four pay periods or less, the advance notice provision in paragraph (a) of this section is not required. In such cases, the Commission's servicing Payroll Office, General Services Administration's National Payroll Center, will notify the employee in writing that because of the employee's election his or her pay will be reduced to cover the period between the effective date of the election and the first regular withholding, and that the employee may dispute the amount collected or request waiver of the debt by filing a request in writing with the Director of Financial and Resource Management Services. (c) Acknowledgment of receipt of advance notice. Notice will be acknowledged in writing. A copy of the notice with the acknowledgment containing the debtor's original signature will be returned to the sender. A request for reconsideration or a request for consideration of waiver, compromise, or forgiveness must be submitted to the Director of FRMS, or his or her designee, within 15 calendar days of the issuance of the demand for payment. The Director of FRMS may extend the time limit for filing when the employee shows he or she was notified of the time limit and was not otherwise aware of it, or that he or she was prevented by circumstances beyond his or her control from making the request within the limit. Any employee requesting reconsideration or consideration of waiver, compromise, or forgiveness will be given a full opportunity to present all pertinent documentation and written information supporting his or her request. Decisions will be based upon the employee's written submissions supported by evidence of record and other pertinent available information. After consideration of all pertinent documented information, a written decision will be issued as to whether the debt is valid, and the amount demanded is correct, or whether it will be waived, compromised, or forgiven. The decision will also inform the employee of his or her right to an oral hearing; hearing procedures contained in §1600.735–507(c) of this subpart shall be attached to the decision. (a) Right to an oral hearing. After a decision is issued on an employee's request for reconsideration, or consideration of waiver, compromise, or forgiveness, the employee is entitled to an oral hearing upon request prior to salary or administrative offset, on any issue that raises a significant question as to the credibility or veracity of any individual(s) involved in his or her case. The decision whether such a genuine issue exists will rest solely with the Commission. Further, where a claim has been reduced to judgment, a hearing only on the payment schedule need be given. A hearing shall not be provided, however, where a payment schedule was established by written agreement between the employee and the Commission. (b) Request for hearing. (1) A request for an oral hearing must be made within 30 calendar days from the date of the written decision on reconsideration or consideration of waiver, forgiveness, or compromise decision. Requests made after this time will be accepted where the employee can show that the delay was because of circumstances beyond his or her control or because of failure to receive notice of the time limit, unless the employee is otherwise aware of it. (2) A debtor must file a petition for a hearing in writing. The petition must identify and explain with reasonable brevity the facts, evidence, and witnesses that the debtor believes support his or her petition, state the relief requested, and include the signature and address of the petitioner or authorized representative. (3) The timely filing of a petition for an oral hearing shall automatically stay the commencement of collection action. (c) Hearing procedures. (1) The hearing shall be conducted by a hearing official who is not an employee of EEOC or otherwise under the control or supervision of the Chairman. (2) A debtor may represent himself or herself or may be represented by another person, including an attorney during any portion of the hearing. (3) Where possible, the hearing will be held in a Commission office close to the debtor's home or place of work. Hearings may be scheduled so that several cases can be heard at one location. In such cases, the hearings will be scheduled in a location centrally located to all requesting parties. (4) A record or transcript of the hearing shall not be made. (5) At the hearing, the employee and the Commission may introduce evidence and may call witnesses. The hearing shall not be conducted in accordance with formal rules of evidence with regard to the admissibility of evidence or the use of evidence once admitted. The hearing official may only permit the introduction of evidence that is relevant to the issues being considered. Witnesses shall testify under oath and may be cross-examined. The Commission has the burden of first presenting evidence on the relevant issues. The debtor then has the burden of presenting evidence regarding those issues. (6) The hearing official shall issue a written opinion stating his or her decision with the rationale supporting the decision as soon as practicable after the hearing, but not later than 60 days after the timely filing of the petition requesting the hearing. A debt will be collected in a lump sum or by installment deductions at officially established pay intervals from an employee's current pay account, unless the employee and the Commission agree in writing to alternate arrangements for repayment. Except as provided in §1600.735–513 and §1600.735–514 of this subpart, deductions will be made only from 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. Debts will be collected in one lump sum when possible. If the employee is financially unable to pay in one lump sum or the amount of debt exceeds 15 percent of the employee's disposable pay for an officially established pay interval, collection by offset will be made in installments. Such installment deductions will be made over a period not greater than the anticipated period of active duty or employment of the employee, as the case may be, except as provided in §1600.735–513 and §1600.735–514 of this subpart. The size and frequency of installment deductions will bear a reasonable relationship to the size of the debt and the employee's ability to pay. The amount deducted for any period, however, 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. Installment payments of less than $25 will be accepted only in the most unusual circumstances. (a) Deductions to liquidate an employee's debt should be scheduled to begin by the date and in the amount stated in the demand for payment. (b) If the employee files a timely request for reconsideration or consideration of waiver, compromise or forgiveness, deductions will begin after a final decision is issued on the request. (c) If the employee fails to submit a timely request for reconsideration or consideration of waiver, compromise, or forgiveness, or request for a hearing, deductions will commence in the next bi-weekly check vouchered for payment after the time limit to make such a request expires. When the employee retires or resigns or if his or her employment or period of active duty ends before the debt is collected in full, the employee's debt will be automatically deducted from the final payments (e.g., final salary payment, lump-sum leave, etc.) due the employee to the extent necessary to liquidate the debt. If the employee's final pay is not sufficient to permit all deductions to be made, the order of precedence for the deductions will be: retirement and FICA; Medicare; Federal income taxes; health benefits; group life insurance; indebtedness due to the United States; State income taxes; and voluntary deductions and allotments. When the debt cannot be liquidated by offset from any final payment due to the employee on the date of separation, the Director of FRMS will attempt to liquidate the debt by administrative offset as authorized under 31 U.S.C. 3716 from later payments of any kind due the former employee from the United States. (See 4 CFR 102.3) When a delinquent debt is collected by salary offset, interest, penalties, and administrative costs on the debt will be assessed, unless waived by the Management Director, or his or her designee, in accordance with 4 CFR 102.13. An employee's payment of all or any portion of a debt collected by salary offset will not be construed as a waiver of any right the employee may have under 5 U.S.C. 5514 or any other provision of contract or law, unless there are statutory or contractual provisions to the contrary. Amounts paid, or deducted by salary offset, by an employee for a debt that is waived or otherwise not found owing to the United States will be promptly refunded to the employee. Refunds do not bear interest unless required or permitted by law or contract. (a) Statutory limitation. Salary offset requests against Commission employees by other agencies may only be accepted within 10 years after the involved debt accrues. Whenever any request barred by this limitation is received in the Commission, the request shall be returned by FRMS to the requesting agency, with a copy of 4 CFR part 102, and this action shall be a complete response to the request. (b) Where salary requests should be filed. Requests from other agencies for salary offset should be forwarded or addressed to:
Director, Financial and Resource Management Services, Equal Employment Opportunity Commission, 1801 L Street, NW., room 2001; Washington, DC 20507. (c) Form of request. (1) Requests shall be considered only when presented with a completed and certified appropriate debt claim. (2) The requesting agency must certify in writing that the employee owes the debt, the amount and basis of the debt, the date on which payment(s) is/are due, the date the Government's right to collect the debt first accrued, and that the requesting agency's regulations for salary offset have been approved by OPM. (3) If the collection must be made in installments, the requesting agency must also advise FRMS of the number of installments and the commencing date of the first installment, if a date other than the next officially established pay period is required. (4) Unless the employee has consented to the salary offset in writing or signed a statement acknowledging receipt of the required procedures, and the writing or statement is attached to the debt claim form, the requesting agency must also indicate to FRMS the action(s) taken by it under its offset regulations and give the date(s) the action(s) was/were taken. (d) Submitting the Request for Offset—(1) Current Commission employees. The requesting agency must submit a completed and certified debt claim, agreement, or other instruction on the payment schedule to FRMS. (2) Separating or separated Commission employees—(i) Separating employees. If the employee is in the process of separating, the requesting agency must submit its debt claim to FRMS for collection as provided in §1600.735–513 of this subpart. FRMS must certify the total amount of its collection and notify the requesting agency and the employee as provided in paragraph (d)(2)(iii) of this section. If FRMS is aware that the employee is entitled to payments from the Civil Service Retirement and Disability Fund, or other similar payments, it will send a copy of the debt claim and certification to the agency responsible for making such payments as notice that a debt is outstanding. The requesting agency, however, must submit a properly certified claim to the agency responsible for making such payments before collection can be made. (ii) Separated employees. If the employee is already separated and all payments due the employee from the Commission have been paid, FRMS will return the request and notify the requesting agency in writing of the employee's separation, that all payments due the employee from the Commission have been paid, and that any monies due and payable to the employee from the Civil Service Retirement and Disability Fund, or other similar funds, may be administratively offset to collect the debt. (iii) Transferred employees. If, after the requesting agency has submitted the debt claim to FRMS, the employee transfers to another agency before the debt is collected in full, FRMS shall certify the total amount of the collection made on the debt. FRMS shall furnish one copy of the certification to the employee and another to the requesting agency along with a notice of the employee's transfer. FRMS shall also provide the employee's personnel office at the new agency with the original debt claim form from the requesting agency to insert in the employee's Official Personnel Folder along with a copy of the certification of the amount which has been collected. It shall be the responsibility of the requesting agency to review the debt upon receiving from FRMS a notice of the employee's transfer to make sure the collection is resumed by the employee's new agency. (e) Processing the debt claim upon receipt by FRMS—(1) Complete claim. If FRMS receives a properly certified debt claim from another agency on a current or separating Commission employee, FRMS shall schedule the requested deductions to begin prospectively at the next officially established pay interval. Before the deductions are made, FRMS shall provide the employee a copy of the debt claim form along with notice of the amount of the deductions, and of the date deductions will commence if different from that stated in the debt claim. (2) Incomplete claim. If FRMS receives an improperly completed debt claim from another agency, FRMS shall return the request with a notice that procedures under 5 U.S.C. 5514 and 5 CFR part 550, subpart K must be followed and a properly certified debt claim received before action will be taken to collect the debt from the employee's pay. (3) Claims disputes. The commission is not required or authorized to review the merits of the requesting agency's determination with respect to the amount or validity of the debt as stated in the debt claim. (a) Statutory limitation. Salary offset requests by the Commission to other agencies shall only be made within 10 years after the involved debt accrues, unless the right to collect the involved debt was unknown and could not reasonably have been known by the Commission employee responsible for the discovery and collection of the involved debt. (b) Who may make a request for salary offset to another agency. Unless otherwise specifically provided, salary offset requests to other agencies to collect debts due to the Commission shall only be made by the Director of FRMS. (c) Form of request. (1) FRMS shall make an offset request to another agency by presenting it with a completed and certified debt claim. (2) FRMS shall certify in writing that the employee owes the debt, the amount and basis of the debt, the date on which payment(s) is/are due, the date the Government's right to collect the debt first accrued, and that the Commission's salary offset regulations have been approved by OPM and published in the (3) Where the collection must be made in installments, FRMS shall advise the involved agency of the number of installments to be collected, the amount of each installment, and the commencing date of the first installment. (4) Where the involved employee does not agree or consent to the offset, FRMS shall advise the other agency of this in writing and also indicate the action(s) taken by the Commission under its offset regulations and the date(s) the action(s) was/were taken. (5) Where the employee agrees or consents to the offset, FRMS shall attach to the debt claim the employee's written agreement or consent. (d) Submitting the Request for Offset—(1) Current employees of other agencies. FRMS shall submit a certified debt claim, agreement, or other instruction on the payment schedule to the employee's current employing agency. (2) Separating employees of other agencies. If the employee is in the process of separating, FRMS shall submit a certified debt claim to the employee's employing agency for collection as provided in 5 CFR 550.1104(l). This subpart establishes procedures for EEOC to refer past-due legally enforceable debts to the Internal Revenue Service (IRS) for offset against the income tax refunds of persons owing debts to EEOC. It specifies the agency procedures and the rights of the debtor applicable to claims referred under the Federal Tax Refund Offset Program for the collection of debts owned to EEOC. The general standards and procedures governing the collection, compromise, termination, and referral to the Department of Justice of claims for money and property that are prescribed in the regulations issued jointly by the General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Parts 101–105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC. [59 FR 24, Jan. 3, 1994, as amended at 64 FR 28917, May 28, 1999] A past-due legally enforceable debt for referral to the IRS is a debt that resulted from any statute administered by EEOC and: (a) Is an obligation of a debtor who is a natural person; (b) Except in the case of a judgment debt, has been delinquent at least 3 months but not more than 10 years at the time the offset is made; (c) Is at least $25.00; (d) Cannot be currently collected pursuant to the salary offset provisions of 5 U.S.C. 5514(a)(1); (e) Is ineligible for administrative offset under 31 U.S.C. 3716(a) by reason of 31 U.S.C. 3716(c)(2) or cannot be collected by administrative offset under 31 U.S.C. 3716(a) by the EEOC against amounts payable to or on behalf of the debtor by or on behalf of the EEOC; (f) With respect to which EEOC has given the debtor at least 60 days from the date of notification to present evidence that all or part of the debt is not past-due or legally enforceable, has considered evidence presented by such debtor, and has determined that an amount of such debt is past-due and legally enforceable; (g) Has been disclosed by EEOC to a consumer reporting agency as authorized by 31 U.S.C. 3711(f), unless the consumer reporting agency would be prohibited from reporting such information by 15 U.S.C. 1681c, or unless the amount of the debt does not exceed $100.00; (h) EEOC's records do not contain evidence that the person owing that debt (or his or her spouse) has filed for bankruptcy under title 11 of the United States Code; and (i) EEOC can clearly establish at the time of the referral that the automatic stay under 11 U.S.C. 362 has been lifted or is no longer in effect with respect to the person owing the debt or his or her spouse, and the debt was not discharged in the bankruptcy proceeding. (a) Notification before submission to the IRS. A request for reduction of an IRS income tax refund will be made only after EEOC makes a determination that an amount is owed and past-due and gives or makes a reasonable attempt to give the debtor 60 days written notification of intent to collect by Federal tax refund offset. (b) Contents of notification. EEOC's notification of intent to collect by Federal tax refund offset shall provide: (1) The amount of the debt; (2) That unless the debt is repaid within 60 days from the date of EEOC's notification of intent, EEOC intends to collect the debt by requesting the IRS to offset an amount equal to the amount of the debt and all accumulating interest and other charges against any overpayment of tax after liabilities subject to 26 U.S.C. 6402(a) and (c) have been satisfied; (3) A mailing address for forwarding any written correspondence and a contact and a toll-free or collect telephone number for any questions; and (4) That the debtor may present evidence to EEOC that all or part of the debt is not past due or legally enforceable by— (i) Sending a written request for a review of the evidence to the address provided in the notification; (ii) Stating in the request for review the amount disputed and the reasons why the debtor believes that the debt is not past-due or is not legally enforceable; or (iii) Including in the request for review any documents that the debtor wishes to be considered to stating that the additional information will be submitted within the remainder of the 60-day period. In order to constitute a reasonable attempt to notify the debtor, EEOC must have used a mailing address for the debtor obtained from the IRS pursuant to 26 U.S.C. 6103(m)(2) within a period of 1 year preceding the attempt to notify the debtor, unless EEOC receives clear and concise notification from the debtor that notices from the agency are to be sent to an address different from the address obtained from IRS. Clear and concise notification means that the debtor has provided the agency with written notification, including the debtor's name and identifying number (as defined in 26 CFR 301.6109–1), the debtor's new address, and the debtor's intent to have the agency notices sent to the new address. (a) Consideration of evidence. If, as a result of the notification of intent, EEOC receives notice that the debtor will submit additional evidence or receives additional evidence from the debtor within the prescribed time period, any referral to the IRS will be stayed until EEOC— (1) Considers the evidence presented by the debtor; (2) Determines whether or not all or a portion of the debt is still past-due and legally enforceable; and (3) Notifies the debtor of its determination. Failure to submit the evidence within 60 days from the date of notification will result in an automatic referral of the debt to IRS without further action by EEOC. (b) Notification to the debtor. Following its review of the evidence, EEOC will issue a written decision notifying the debtor whether EEOC has sustained, amended, or canceled its determination that the debt is past-due and legally enforceable. The notice will advise the debtor of any further action to be taken and explain the supporting rationale for the decision. (1) EEOC will notify the debtor of its intent to refer the debt to the IRS for offset against the debtor's Federal income tax refund if it sustains its decision that the debt is past-due and legally enforceable. EEOC will also notify the debtor whether the amount of the debt remains the same or is modified. (2) EEOC will not refer the debt to the IRS for offset against the debtor's Federal income tax refund if it reverses its decision that the debt is past-due and legally enforceable. (a) Except as noted in paragraph (b) of this section, after EEOC's initial notification and referral of a debt to IRS for offset against a debtor's Federal income tax refund, EEOC will promptly notify IRS of any changes in the notification, if EEOC— (1) Determines that an error has been made with respect to the information contained in the notification; (2) Receives a payment or credits a payment to the account of the debtor named in the notification that reduces the amount of the debt referred to IRS for offset; (3) Receives notification that the individual owing the debt has filed for bankruptcy under title 11 of the United States Code or has been adjudicated bankrupt and the debt has been discharged; (4) Receives notification that an offset was made at a time when the automatic stay provisions of 11 U.S.C. 362 were in effect; or (5) Refunds all or part of the offset amount to the debtor. (b) EEOC shall not request the IRS to increase the amount of a debt owed by a debtor named in EEOC's original notification to IRS. (c) If the amount of a debt is reduced after referral by EEOC and offset by the IRS, EEOC will refund to the debtor any excess amount and will promptly notify the IRS of any refund made by EEOC. All administrative charges incurred in connection with the referral of the debts to the IRS will be assessed on the debt and thus increase the amount of the offset. Source: 62 FR 32685, June 17, 1997, unless otherwise noted.
This subpart sets forth the procedures to be followed in the collection by administrative offset of debts owed to the United States. The general standards and procedures governing the collection, compromise, termination, and referral to the Department of Justice of claims for money and property that are prescribed in the regulations issued jointly by the General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Part 101–105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC. [62 FR 32685, June 17, 1997, as amended at 64 FR 28917, May 28, 1999] (a) Applicability. (1) The procedures in this subpart apply to the collection by administrative offset of debts owed to the Commission or other Federal agencies by former or current Commission employees under the authority of 31 U.S.C. 3716, common law, or any other applicable statutory authority, e.g., training expenses under 5 U.S.C. 4108, debts of employees removed for cause under 5 U.S.C. 5511, amounts owed by accountable officers under 5 U.S.C. 5512, advances of pay under 5 U.S.C. 5522, temporary duty travel advances under 5 U.S.C. 5705, and relocation advances under 5 U.S.C. 5724. (2) The procedures in this subpart also apply to offset of debts owed to the Commission or other Federal agencies by the Commission's contractors and grant recipients. (b) Non-applicability. (1) The procedures in this subpart do not apply where collection by administrative offset of the debt involved is explicitly provided for or prohibited by another statute. (2) The procedures in this subpart also do not apply to debts owed to the Commission by other Federal agencies or debts owed to the Commission or other Federal agencies by a State or local government. (c) Waiver requests and claims to the GAO. The procedures in this subpart do not preclude a debtor from requesting waiver of an erroneous payment of pay, travel, transportation, or relocation expenses under 5 U.S.C. 5584 or any other provision of law or from questioning the amount or validity of a debt by submitting a subsequent claim to the U.S. Government Accounting Office. (d) Compromise, suspension, or termination under the Federal Claims Collection Standards. Nothing in this subpart precludes the compromise, suspension, or termination of administrative offset collection actions, where appropriate, in accordance with the Federal Claims Collection Standards in 4 CFR chapter II. For purposes of this subpart, the term administrative offset means the withholding of money payable by the Commission to, or held by the Commission for, a person to satisfy a debt the person owes to the Government. The term person means a natural person or persons, profit or non-profit corporation, partnership, association, trust, estate, consortium, or other entity which is capable of owing a debt to the United States Government except that the term does not include an agency of the United States Government or any State or a unit of a general local government. The terms agency, creditor agency, debt, employee, FCCS, FRMS and waiver shall have the meanings set forth in subpart A of this part. (a) Advance notice. At least 30 days in advance of collecting any debt by administrative offset, notice of the Commission's intent to offset shall be given to the debtor by certified mail, return receipt requested, at the most current address that is available to the Commission. The notice shall provide: (1) A description of the nature and amount of the debt and the Commission's intention to collect the debt through administrative offset; (2) An opportunity to inspect and copy the records of the Commission with respect to the debt; (3) An opportunity to request review of the Commission's determinations with respect to the debt; and (4) An opportunity to enter into a written agreement for the repayment of the amount of the debt. (b) Exception to the advance notice requirement. When the procedural requirements in this subpart have been previously provided to a debtor in connection with the same debt under another statutory or regulatory authority, such as for salary offset or pursuant to a notice of audit disallowance, the Commission is not required to duplicate those procedures before initiating collection of the debt by administrative offset. (a) A debtor may dispute the existence of the debt, the amount of the debt, or the terms of repayment. The request to review the disputed debt must be received by the Director of the Financial Management Division within 30 calendar days of the debtor's receipt of the pre-offset notice. (b) If the debtor requests an opportunity to inspect or copy the Commission's records concerning the debt, then the debtor will have 10 business days from the date of inspection or from receipt of the mailed documents for review. (c) Pending review of the disputed debt, transactions in any of the debtor's account(s) maintained in the Commission may be temporarily suspended to the extent of the debt that is owed. Depending on the type of transaction, the suspension could preclude payment, withdrawal, or transfer, as well as prevent the payment of interest or discount due thereon. Should the dispute be resolved in the debtor's favor, the suspension will be lifted immediately. (d) During the review period, interest, penalties, and administrative costs authorized under the Federal Claims Collection Act of 1966, as amended (31 U.S.C. 3711), will continue to accrue. A debtor may request an opportunity to negotiate a written agreement for the repayment of the debt. If the financial position of the debtor does not support the ability to pay in one lump-sum, reasonable installments may be considered. No installment arrangement will be considered unless the debtor submits a financial statement, executed under penalty of perjury, reflecting the debtor's assets, liabilities, income, and expenses. The financial statement must be submitted within 10 business days of the Commission's request for the statement. At the Commission's option, a confess-judgment note or bond of indemnity with surety may be required for the installment agreement. Notwithstanding the provisions of this section, any reduction or compromise of a claim will be governed by 4 CFR part 103 and 31 U.S.C. 3711. (a) If the debtor does not timely exercise his right to review or, as a result of the review, it is determined that the debt is due and no written agreement is executed, then administrative offset shall be ordered in accordance with these regulations without further notice. (b) The Director of the Financial Management Division of Financial and Resource Management Services or designee, after attempting to collect a debt from a person under the Federal Claims Collection Act of 1966, as amended (31 U.S.C. 3711), may collect the debt by administrative offset subject to the following: (1) The debt is certain in amount; and (2) It is in the best interest of the United States to collect the debt by administrative offset because it is less costly and speeds repayment of the debt. (c) If the 6-year period for bringing action on a debt provided in 28 U.S.C. 2415 has expired, then administrative offset may be used to collect the debt only if the costs of bringing such action are likely to be less than the amount of the debt. (d) No collection by administrative offset shall be made on any debt that has been outstanding for more than 10 years unless facts material to the Government's right to collect the debt were not known, and reasonably could not have been known, by the official or officials responsible for discovering and collecting such debt. (e) Request for administrative offset by the Commission to another Federal agency. The Director of the Financial Management Division, or designee, may request that funds due and payable to a debtor by a Federal agency be administratively offset in order to collect a debt owed to the Commission by that debtor. In requesting administrative offset the Commission, as creditor, will certify in writing to the Federal agency holding funds of the debtor: (1) That the debtor owes the debt; (2) The amount and basis of the debt; and (3) That the Commission has complied with the requirements of its own administrative offset regulations in this subpart, and the applicable provisions of 4 CFR part 102, including providing any required hearing or review. (f) Request for administrative offset from another Federal agency. Any Federal creditor agency may request the Commission make an administrative offset from any Commission funds due and payable to a creditor agency's debtor. The Commission shall initiate the requested administrative offset only upon: (1) Receipt of written certification from the creditor agency: (i) That the debtor owes the debt; (ii) The amount and basis of the debt; (iii) That the agency has prescribed regulations for the exercise of administrative offset; and (iv) That the agency has complied with its own administrative offset regulations and with the applicable provisions of 4 CFR part 102, including providing any required hearing or review; and (2) A determination by the Commission that collection by administrative offset against funds payable to the debtor by the Commission would not otherwise be contrary to law. The Commission may make an administrative offset against a payment to be made to the debtor prior to the completion of the procedures required by this subpart, if failure to take the offset would substantially jeopardize the Commission's ability to collect the debt, and the time before the payment is to be made does not reasonably permit the completion of those procedures. Such prior offset shall be promptly followed by the completion of the procedures required by this subpart. Amounts recovered by offset but later found not to be owed to the Commission shall be promptly refunded. Nothing contained in this subpart is intended to preclude the use of any other administrative remedy which may be available. Source: 64 FR 28917, May 28, 1999, unless otherwise noted.
The Commission hereby adopts by cross-reference the administrative wage garnishment regulation issued by the Department of the Treasury at 31 CFR 285.11. The general standards and procedures governing the collection, compromise, termination, and referral to the Department of Justice of claims for money and property that are prescribed in the regulations issued jointly by the General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Parts 101–105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC.
Title 29: Labor
PART 1650—DEBT COLLECTION
Section Contents
§ 1650.101 Purpose.
§ 1650.102 Scope.
§ 1650.103 Definitions.
§ 1650.104 Notice of salary offset.
§ 1650.105 Request for reconsideration or request for consideration of waiver, compromise, or forgiveness.
§ 1650.106 Reconsideration or consideration of waiver, compromise or forgiveness decision.
§ 1650.107 Oral hearing.
§ 1650.108 Method of collection.
§ 1650.109 Source of deductions.
§ 1650.110 Duration of deductions.
§ 1650.111 Limitation on amount of deductions.
§ 1650.112 When deductions may begin.
§ 1650.113 Liquidation of final check.
§ 1650.114 Recovery from other payments due a separated employee.
§ 1650.115 Interest, penalties, and administrative costs.
§ 1650.116 Non-waiver of rights by payments.
§ 1650.117 Refunds.
§ 1650.118 Salary offset requests by other agencies.
§ 1650.119 Salary offset request by the Commission to another agency.
§ 1650.201 Purpose.
§ 1650.202 Past-due legally enforceable debt.
§ 1650.203 Notification of intent to collect.
§ 1650.204 Reasonable attempt to notify.
§ 1650.205 Consideration of evidence submitted as a result of notification of intent.
§ 1650.206 Notification to Internal Revenue Service.
§ 1650.207 Administrative charges.
§ 1650.301 Purpose.
§ 1650.302 Scope.
§ 1650.303 Definitions.
§ 1650.304 Notice of administrative offset.
§ 1650.305 Agency review.
§ 1650.306 Written repayment agreement.
§ 1650.307 Administrative offset.
§ 1650.308 Accelerated procedures.
§ 1650.309 Additional administrative procedures.
§ 1650.401 Purpose and regulatory procedures for the collection of debts by administrative wage garnishment.
Subpart A—Procedures for the Collection of Debts by Salary Offset
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§ 1650.101 Purpose.
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§ 1650.102 Scope.
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§ 1650.103 Definitions.
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§ 1650.104 Notice of salary offset.
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§ 1650.105 Request for reconsideration or request for consideration of waiver, compromise, or forgiveness.
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§ 1650.106 Reconsideration or consideration of waiver, compromise or forgiveness decision.
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§ 1650.107 Oral hearing.
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§ 1650.108 Method of collection.
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§ 1650.109 Source of deductions.
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§ 1650.110 Duration of deductions.
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§ 1650.111 Limitation on amount of deductions.
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§ 1650.112 When deductions may begin.
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§ 1650.113 Liquidation of final check.
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§ 1650.114 Recovery from other payments due a separated employee.
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§ 1650.115 Interest, penalties, and administrative costs.
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§ 1650.116 Non-waiver of rights by payments.
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§ 1650.117 Refunds.
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§ 1650.118 Salary offset requests by other agencies.
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§ 1650.119 Salary offset request by the Commission to another agency.
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Subpart B—Procedures for the Collection of Debts by Federal Tax Refund Offset
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§ 1650.201 Purpose.
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§ 1650.202 Past-due legally enforceable debt.
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§ 1650.203 Notification of intent to collect.
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§ 1650.204 Reasonable attempt to notify.
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§ 1650.205 Consideration of evidence submitted as a result of notification of intent.
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§ 1650.206 Notification to Internal Revenue Service.
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§ 1650.207 Administrative charges.
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Subpart C—Procedures for Collection of Debts by Administrative Offset
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§ 1650.301 Purpose.
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§ 1650.302 Scope.
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§ 1650.303 Definitions.
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§ 1650.304 Notice of administrative offset.
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§ 1650.305 Agency review.
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§ 1650.306 Written repayment agreement.
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§ 1650.307 Administrative offset.
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§ 1650.308 Accelerated procedures.
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§ 1650.309 Additional administrative procedures.
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Subpart D—Procedures for the Collection of Debts by Administrative Wage Garnishment
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§ 1650.401 Purpose and regulatory procedures for the collection of debts by administrative wage garnishment.
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