ML20059N365

Proposed Rule 10CFR16, Salary Offset Procedures for Collecting Debts Owed by Federal Employees to Federal Govt. Rule Estabish Procedures to Collect Certain Debts Owed NRC & Other Federal Agencies by Deduction from Pay

ML20059N365
Person / Time
Issue date:	09/14/1990
From:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
FRN-55FR39285, RULE-PR-16 AD44-1-05, AD44-1-5, PR-900914, NUDOCS 9010120108
Download: ML20059N365 (20)

Text

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!!UCLEAR REGULATORY C0ftMISSION Qj{l,Eyip I s..u..

10 CFR Part 16 RIN 3150-AD44 Salary Offset Procedures for Collecting Debts Owed by Federal Employees to the Federal Government AGENCY: Nuclear Regulatory Commission.

-ACTION:

Proposed rule.

SUMMARY

The Nuclear Regulatory Comission (NRC) is proposing to establish procedures to collect certain debts owed by Federal employees to the NRC-and other Federal agencies by deduction (s) from their pay. This proposed 1

rule establishes 10 CFR Part 16 and is necessary to conform NRC regulations.

.to' the Debt Collection Act of 1982 which requires each agency to establish a salary offset-program for the collection of these debts.

DATE:- Submit coments by Coments received after this date will be considered if it is practical to do so, but the Commission is able to ensure consideration only for coments received on or before this date.

ADDRESSES: Send, coments to:

Secretary, U.S. Nuclear Regulatory Comission, Washington, DC 20555, Attention: Docketing and Service Branch.

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9010120100 900914 0

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-16 55FR39285 PDR (

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i Hand deliver comments to:

11555 Rockville Pike, One White Flint.

. North, Rockville,~ Maryland, between 7:30 a.m. and 4:15-p.m., Federal workdays.

Examine comments received at:

The NRC Public Document Room, g

'2120 L-Street, NW. (Lower Letel), Washington, DC 20555.

t FOR FURTHER INF0AMATION CONTACT:

Diane B. Dandois,' Chief, License Fee a'n:1 Debt Coilection Branch, Division of Accounting and Finance, Office of the Controller, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 492-7225.

i SUPPLEMENTARY INFORMATION:

The Debt Collection Act of 1982 (Pub. L.97-365) requires each agency to establish a salary _ offset program for the collection of debts owed.by 3

Federal employees to the' Federal Government.

Debt collection efforts under s

these programs resulted in the collection of 552 million in FY 1988.

The Office of Personnel Management (OPM)' regulations, governing the salary offset program establish certain minimum standards and procedures that must be incorporated into each agency's salary offset regulations

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(5 CFR-550.1104) and require each agency to submit proposed regulations to '

l OPM for review and approval prior to their becoming final rules (5 CFR

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550.1105). The NRC has forwarded a copy of this proposed rule to OPM in I

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' order to comply with 5 CFR 550.1105.

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-The NRC is proposing to esta'blish a new part in 10 CFR' Chapter ! (Part l

16) that would contain the provisions necessary to meet this obligation.

j The-proposed 10 CFR Part 16-provides procedures for the NRC 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 1

all Federal employees who owe debts to 'the NRC and to current employees of.

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the NRC who owe debts to other Federal agencies.

i Concurrently with publication of 10 CFR Part 16 as a final rule, the NRC-intends to amend 10 CFR Part 15, Debt Collection Procedures, to specify that the salary offset provisions of 10 CFR Part 16 apply to the collection of certain debts owed by Federal employees to the NRC and other agencies.

Finding of No Significant Environmental Impact The Commission has determined, under the National Environmental Policy j

Act of 1969, as amended, and the Commission's regulations in Subpart A of 10 CFR 51, that this rule, if adopted, would not be a major Federal action i

significantly affecting the quality of the human environment and therefore en environmental statement is not required. Amending the procedures to be used by the Commission to collect debts which are owed to it and other Federal agencies by Federal employees through salary offset will have no w

-radiological environmental impact offsite and no impact on occupational radiation exposure onsite. The proposed rule does not affect nonradiological plant effluents and has no other-environmental impact.

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The environmental assessment and finoing of no significant impact, on which this determination is based, are'available for inspection at the NRC Public Document Room, 2120 L Street, (Lower Level), N.W., Washington, D.C.

Paperwork Reduction Act Statement This proposed rule contains no information collection requirements and therefore ic not subject to the requirements of the Paperwork Reduction Act of 1980,44 U.S.C. 3501 et' seq.).

Regulatory Analysis This proposed rule will bring NRC procedures for collecting debts owed it and other Federal agencies by Federal employees into conformance with current statutory and regulatory guidance and requirements and, as such,

~j does not have significant' impact on state and-local governments and geographical regions, health, safety, and the environment; nor does it represent substantial costs to' licensees, the NRC, or other Federal agencies. This constitutes the~ regulatory analysis for this proposea _ rule.

Regulatory Flexibility Certification

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In e 3rdance with the Regulatory Flexibility Act, 5 U.S.C. 605(t,),

the Commission certifies that this rule, if adopted, will not have a significant economic impact on a substantial number of small entities since it does not cover debts owed the NRC by small entities. As a result, a 4

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i regulatory flexibility analysis has not been prepared.

1 Backfit Analysis

.r The Commission has determined that the backfit rule, 10 CFR 50.109, Ldoes-not apply to this proposed rule and, therefora. that a backfit l

analysis is'not required for this proposed rule because it does not involve K

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any provisions which would impose backfits as defined in 10 CFR-Se.109(a)(1).-

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List of Subjects in 10 CFR Part 16 Administrative practice and procedure, Debt collection, s

1 For the reasons' set out in-the preamble and under. authority of the f

' Atomic Energy Act of 1954, ast amended; the ' Energy. Reorganization Act of

-1974, as amended; the Debt Collection Act1of 1982, as amen e ;.t e Federal dd h

e Claims Collection Act of 1966, as amended; 5 CFR 550.1101-1108, Subpart K; an'd 5 U.S.C.- 552 and-553, the NRC is, proposing.to adopt 10' CFR Part 16.

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A new Part 16 is-added to 10 CFR Chapter I.

PART 16 - SALARY OFFSET PROCEDURES FOR COLLECTING 4

DEBTS OWED BY FEDERAL EMPLOYEES T0.THE FEDERAL GOVERNMENT 5

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16.1-Purpose and scope..

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Definitions.

16.5-Application.

.16.7 Notice requirements.

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Hearing, q

16.11 Written decision.

t 16.13; Coordinating offset with another Federal' agency -

'16.15 Procedures for salary offset.

j 16.17 Refunds.

16.19 Statute of limitations.

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16.21 Non-waiver of rights, t

16.23-Interest, penalties, and administrative costs.

s AUTHORITY:

Sec.161, 68-Stat. 948, as amended (42 U.S.C. 2201); sec. 201, 88 Stat.1242, as amended (42 U.S.C. 5841); sec. 3, Pub. L.89-508, 80 Stat.308,asamended(31U.S.C.3711,3717,3718);sec.5, Pub.L.89-508, 80 Stat. 308, as amended (31 U.S.C. 3716); Debt Collection Act of 1982, Pub. L.97-365, 96 Stat. 1749-1758; Federal Claims Collection Standards,.4' CFR Parts-101-105; 5 U.S.C. 5514, as amended; 5 CFR 550.1101-550.1108.

'616.11 Purpose and' scope.

L (a)-This rule provides procedures for the collection by administrative uitset of'a Federal employee's salary without his/her consent to satisfy Jcertain debts owed to the Federal Government. This rule applies to all.

Federal employees who owe debts to the Nuclear Regulatory Commission (NRC) 1 and to current employees of the NRC who owe debts to other Federal agencies. This rule does not apply when the employee consents to recovery i

from-his/her current pay account.

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I (b) These procedures do not apply to debts or claims arising under:

n (1).The Internal Revenue Code of 1954,.as amended, 26 U.S.C. I et seq.;

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--(2)- The Social Security Act, 42' U.S.C. 301 et seq.;

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_(3) The tariff laws of the United States; or ii (4) Any case where a collection of a debt by' salary offset is explicitly provided for-or prohibited by another statute.

(c) These procedures do not apply to any adjustment to pay arising

-out of an employee's selection of coverage or a. change in coverage under L

a Federal benefits program requiring periodic deductions from pay if the-l 1

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L amount to be recovered was accumulated over four pay periods or less.

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(d) These procedures do not preclude the compromise, suspension, or:

1 termination of collection action where appropriate under the standards l

implementing the Federal-Claims Collection Act,1 U.S.C. 3711' et seq.,:

4 CFR Parts 101 through_105.

(e). ~ This regulation does not preclude an employee from requesting waiver of an overpayment under 5 U.S.C. 5584,10 U.S.C. 2774, or 32 U.S.C. -

716' or in any way questioning the amount or validity of the debt by submitting a' subsequent claim to the General Accounting Office. This regulation does not preclude an employee from requesting a waiver pursuant

'to other statutory provisions applicable to the particular debt being i

collected.

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pc L616.3' Definitions.

For the purposes of this part, the following definitions apply:

" Administrative charges" are those amounts assessed by NRC to cover-the costs of processing and handling delinquent debts due the Government.

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" Administrative offset" means withholding money payable ty the

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United States-Government to, or held by the Government lor, a person to

-n satisfy a debt the person owes the United States Government.

" Agency" means ~an-executive agency as is defined at 5 U.S.C.105 including the U.S. Postal Serv. ice, the U..c.. Postal Rate Commission,.a military. department as defined at 5 U.S.C. 102, an agency or court in the judicial-branch, an agency of the legislative branch including the U.S. Senate and House of Representatives and.other independent establishments that are entities of the Federal Government.

" Creditor agency" means the agency to which a debt is owed.

" Debt" means an amount which has been determined by an appropriate NRC official or an appropriate official of another agency to be owed to

the. United States from sources which include loans ' insured or guaranteed by.

the United States and all other amounts due the United States from fees, i

leases, rents, royalties, services, sales of real or personal property, overpayments, penalties, damages, interests, fines, forfeitures (except those arising under the Uniform Code of Military Justice), and all other similar sources.

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" Disposable psy" means.the. amount =that remains from an employee's current basic; pay, special pay, incentive pay, retired pay, retainer pay,

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or in the. case of an employee not entitled to basic pay, other authorized i

pay after reouired deductions for social security; Federal, State or local income tax; health insurance premiums; retirement contributions; life insurance premiums; Federal employment taxes; and any other deductions that are required to be withheld by law.

Deductions described in 5 CFR 581.106-(b) through-(f) are excluded when determining disposable pay subject.to salary offset, j

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" Employee" means a current employee of an agency, including a current member of the Armed Forces or a Reserve of the Armed Forces r

(Reserves).

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"FCCS" means the Federal Claims Collection Standards jointly published by the Justice Department and the General Accounting Office at 4 CFR Parts 101-105.

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l Hearing official" means an individual responsible for conducting i

any hearing with respect to the existence cr amount of a debt Toimed or the repayment schedule if not established by written agreement between the'-

employee ano the NRC,-and who renders a decision on the basis of such hearing.

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" Paying agency" means the agency that employs the individual who owes the debt and authorizes the payment of his/her current pay.

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" 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 hislor her-consent.

"Waiver" means the cancellation, remission, forgiveness,,or.

non-recovery of a debt allegedly owed by an employee to an agency as-

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4 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 law.

i 616.5 Application.

-The regulations in'this part are to be followed when:

(a) The NRC-is-owed a debt by an individual currently employed by another.- Federal agency; (b) The NRC is owed a-debt by"an-individual who is a current

. employee' of the' NRC; or (c) The NRC employs an individual who owes a debt to another Federal agency.

. h16.7 Notice requitements.

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7 (a)Lif the NRC is the creditor agency, deductions will not be made

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fMo debt at least 30? days before salary offset commences. The notice will be.

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delivere.d in person or by certified or registered mail, return receipt

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' l. equested, with receipt returned as proof of delivery.

r (b) The written notice must contain:

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'(1) A statement that the debt is owed and an explanation of its i

origin, nature, and amount; y

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(2) The NRC's intention to collect the debt by deducting from the employee's current disposable pay acccont; i

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~(3) The amount, frequency, proposed beginning date, and' duration'of.

their.tendeddeduction(s);

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(4); An explanation of interest,. penalties, and administrative s,

charges,l including-.a statement that these charges will be assessed unless excused in' accordance' with the Federal Claims-Collection 3

Standards _at 4 CFR Parts 101-105; i

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.(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

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these records; i

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_(6) If not previously provided, the opportunity (under terms

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agreeable to the NRC) to establish a schedule for the voluntary

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repayment of the debt or to enter into a written agreement to establish 13 a schedule for repayment of the debt in lieu of offset (4 CFR 102.2(e)).

The agreement must ha in writing, signed by both the employee and the NRC, and documented in the NRC's files; t

(7) The employee's right to a hearing conducted by an ' official arranged for by the NRC (an administrative law judge, or alternatively, a hearing official not under the control of the ' Nap of the agency) if a petition is filed as prescribed in 516,9;

-(8) The methods and time period for petitioning for. hearings; (9) A statement that_the timely filing of a petitir.n for a hearing-will_ stay the comencement of collection proceedings:

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(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 knowingly false or frivolous statements, i

representations, or evidence may subject-the employee to appropriate disciplinary procedures under Chapter 75 of Title 5, United States Code and 5 CFR 752, penalties under the False Claims Act, 53729-3731 l

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1 of Title 31',_ United States Code ~ or other applicable statutory authority,_ or

criminal-penalties under $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-1-

-the collection is being made; and 4

(13) Unlets there are contractual or statutory provisions to the

' contrary. a statement that amounts paid on or deducted for the debt I

wh'idNare'laterwaivedorfoundnotowedtotheUnitedStateswill.be-

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promptly refunded to the employee.

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516.9 Hearing.-

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'(a)Requestforhearing, p

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-(1)Anemployee'shallfileapetitionforahearinginaccordancewith-the instructions outlined in the creditor agency's notice of offset.

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,(2) If the NRC is the creditor agency,,a hearing may be requested by wf filing'a written petition addressed to the Controller stating why the I

. employee disputes the existence or amount of the debt or the repayment schedule if it was-not established by written agreement between the o,

employee and the NRC. The employee shall sign the petition and fully identify and explain with reasonable specificity all the facts, evidence, i

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t and witnesses,'if any, which the employee believes support his er her j

position. The petition for a hearing must be received by the Controller no later than fifteen (15) calendar days after receipt of the notice of offset

- unless the employee -can show that the delay. in meet., s the deadline date was because of circumstances beyond his or her control or because of failuretoreceivenoticeofthetimelimit(unlessotherwiseawareofit).

(b)Hearingprocedures.

l' (1) The hearing will be presided over by a hearing official arranged u

by NRC (an administrative law judge or, alternatively, a hearing official i

not under the supervision or control of the head of the agency.)-

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(?)ThehearingmustconformtoprocedurescontainedintheFederal Claims Collection Standards 4 CFR 102.3(c). The burden is on the employee to demonstrate either that the existence or the arount of the debt is in error or that the terms of the repayment schedule would result in undue financial hardship or would be against equity and good conscience.

(3) An employee is entitled to representation of his or her cLoiceLat any stage of the proceeding. NRC attorneys may not be provided a',

representatives'for-the debtor. The NRC will not compensate thr. debtor for

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representation expenses, including hourly fees for attorneys, travel expenses, and costs for reproducing documents.

516.11 Written decision.

.(a) The hearing official will issue a written opinion no later than 60

- days after the hearing.

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(b)Thewrittenopinionmustinclude:

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-(1) A statement of the facts presented to demonstrate'the nature and origin of'the alleged debt; f

,J (2) The hearing official'~s analysis, findings, and conclusions; 1

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(3) The amount and validity of the debt; and s

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(4) The repayment schedule, where appropriate.

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516.13 Coordinating offset with another Federal agency.

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(a) The NRC as the creditor agency. When the NRC determines that-i an employee of a Federal agency owes a delinquent debt to the NRC, the f

HRC will,-as appropriate:

I (1)l Arrange for a hearing upon the proper petitioning by the i

. employee; r

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(2) Certify in writing that'the employee owes the debt, the amount f

and basis of the debt, the date.on which payment. is due,- the date the

- Government's right to collect the debt 4.ccrued, and that NRC procedures

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for salary offset implementing 5 U.S.C. 5514 have been approved by the Office of Personnel Management; 15

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(3)Ifcollectionmustbemadeininstallments,theNR0mustadvise p&

the paying agency of the amount or percentage of disposable pay to be s

i collected in each installment;

-(4) Advise the-paying agency of the actions taken under 5 U.S.C.

5514(a)andprovidethedatesonwhichactionwastakenunlessthe employee has consented to salary offset in writing or signed a statement j

Jacknowledging receipt of procedures required by law.

The written L>

consent or acknowledgment must be sent to the-paying agency; L

(5) Except as otherwise provided in this paragraph, the NRC must i

submit'a debt claim containing the information-specified c. paragraphs

,(a) (2)- throughL(4) of this section and an installment agreement-(or other; instruction on the-payment schedule), if applicable. to the f

employee's paying agency.

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(6)! Upon receipt of notification-thattthe' employee has transferred

'to-another agency before the debt is ' collected in full, the. NRC will submit-.

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a' properly certified claim to the new paying. agency.so that collection can be resumed;

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(7) If the employee is in the process of separating, the NRC will 4

l submit its debt claim to the paying agency as provided in paragraphs (a)

-(2) through (5)'of this section. The paying agency will certify any Lamounts already collected, notify the employee, and send a copy of the-certification and notice of the employee's separation to the NRC.

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k the paying agency is aware that the employee is entitled to Civil Service Rettemeni. and Disability Fund or similar payments, it will certify to the

- agency responsible-for making the payments that the - uloyee owes a debt 1

(includingtheamount)andthattheprovisionsofthisparthavebeen followed. The NRC will submit a properly certified claim to the agency r

e responsible fc r making such payments so collection can be made.

l (8) lf the-employee has already separated and all payments due from

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the paying agency have been paid, the NRC may request, unless otherwise

- prohibited, that money payable to the employee from the Civil Service t

Retirement and Disability Fund or other similar funds-be collected by

-administrative offset, f

(b) The NRC as the paying agency.

(1) Upon receipt of a properly certified debt claim from another I

agency, the NRC will schedule deductions to begin at the next established

' pay interval. The employee must. receive written notice indicating that the i

NRC has: received a certified debt claim from the creditor agency..the amount'of the debt, the date. salary offset will begin, and'the amount of the deduction (s). The NRC may not review the merits of:the creditor agency's determination of the validity or the amount of-the certified

. claim.

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3 (2) Upon. receipt' of an incomplete debt claim from a creditor agency,

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the NRC will return the debt claim to the creditor agency with a notice

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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 from the employee's current pay account.

(3) If the employee transfers to another agency after the creditor agency has submitted its debt claim to the NRC and before the debt is collected complotely, the NRC will certify the totcl amount collected. The NRC will furnish one copy of the certification to the employee. The NRC will furnish a copy to the creditor agency with notice of the employee's transfer.

' 516.15 ' Procedures for' salary offset.

(a)' Deductions to liquidate an employee's debt will _be by the method and in the amount stated in the NRC's notice of intention to offset as provided in $16.7. Debts will be collected in one lump' sum where-

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possible.

If the employee is financially unable to pay in one lump sum,.

collection must be made in installments.

(b) Debts will be collected by deduction at officially established pay intervals from an employee's current pay account unless alternative-arrangements for repayment are made.

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(c)Installmentdeductionswillbemadeoveraperiodnotgreater than the' anticipated period of employment. The size of installment 18 l

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deductions must bear a' reasonable relationship to the size of the debt 1

and the employee's' ability to pay. The deduction for the pay intervals for any period may not exceed 15% of disposable pay unless the employee has agreed in ~ writing to a deduction of a greater amount.

j (d) Offset' against any subsequent payment due an employee who I

. retires or resigns or whose employment or period of active duty ends before collection of the debt is completed is provided for in accordance with 31 U.S.C. 3716. These payments include out.are not limited to final salary payment or lump-sum leave due the employee from the paying agency as of the date of-separation to the extent necessary to liquidate the debt.

.516.17 Refunds.

(a) The NRC will refund promptly any amounts deducted _to satisfy debts owed to the NRC when the debt is waived, found not-owed to the NRC, or when I

directed by an administrative.or. Judicial order.

(b) The creditor agency will promptly return any amounts deducted by j

l NRC to satisfy debts owed to-the creditor _ agency when the debt is waived, found not owed, or when directed by an administrative or judicial _ order.

-(c) Unless required or permitted by law or contract, refunds under this section may not bear interest.

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616.19 Statute of limitations.

If a debt has been outstanding for more than 10 years after the

- agency's right to collect the debt first accrued, the agency may not

- collect by salary offset unless facts material to the Government's right to collect were not known and could noti reasonably have been known by the NRC official or officials who were charged with-the responsibility for discovery and collection of the debts.

516.21 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 contract (s) to the contrary.

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516.23 Ir.terest,- penalties, and administrative -charges.

Charges may be assessed for interest, penalties,'and administrative 3

L charges in accordance with the Federal Claims Collection Standards, 4 CFR-102.13.

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. Dated at Rockville, Maryland, this

/ / k day of

,., 1990.

l For the Nuclear Regulatory Commission.

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J s M. Taylor, Executive Director for Operations.

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