[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

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

[CITE: 12CFR608.839]



[Page 48]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 608_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents

 

                     Subpart C_Offset Against Salary

 

Sec. 608.839  Procedures for salary offset.



    (a) The Chairman, or designee of the Chairman, shall determine the 

amount of an employee's disposable pay and the amount to be deducted 

from the employee's disposable pay at regular pay intervals.

    (b) Deductions shall begin within three official pay periods 

following the date of mailing or delivery of the Notice of Intent to 

Collect by Salary Offset.

    (c)(1) If the amount of the debt is equal to or is less than 15 

percent of the employee's disposable pay, such debt should be collected 

in one lump-sum deduction.

    (2) If the amount of the debt is not collected in one lump-sum 

deduction, the debt shall be collected in installment deductions over a 

period of time not greater than the anticipated period of employment. 

The size and frequency of installment deductions will bear a reasonable 

relation to the size of the debt and the employee's ability to pay. 

However, the amount deducted from any pay period will not exceed 15 

percent of the employee's disposable pay for that period, unless the 

employee has agreed in writing to the deduction of a greater amount.

    (3) A deduction exceeding the 15-percent disposable pay limitation 

may be made from any final salary payment pursuant to 31 U.S.C. 3716 in 

order to liquidate the debt, whether the employee is being separated 

voluntarily or involuntarily.

    (4) Whenever an employee subject to salary offset is separated from 

the FCA and the balance of the debt cannot be liquidated by offset of 

the final salary check pursuant to 31 U.S.C. 3716, the FCA may offset 

any later payments of any kind against the balance of the debt.

    (d) In instances where two or more creditor agencies are seeking 

salary offsets against current employees of the FCA or where two or more 

debts are owed to a single creditor agency, the FCA, at its discretion, 

may determine whether one or more debts should be offset simultaneously 

within the 15-percent limitation. Debts owed to the FCA should generally 

take precedence over debts owed to other agencies.