
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC5514]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                      Subpart D--Pay and Allowances
 
                     CHAPTER 55--PAY ADMINISTRATION
 
                     SUBCHAPTER II--WITHHOLDING PAY
 
Sec. 5514. Installment deduction for indebtedness to the United 
        States
        
    (a)(1) When the head of an agency or his designee determines that an 
employee, member of the Armed Forces or Reserve of the Armed Forces, is 
indebted to the United States for debts to which the United States is 
entitled to be repaid at the time of the determination by the head of an 
agency or his designee, or is notified of such a debt by the head of 
another agency or his designee the amount of indebtedness may be 
collected in monthly installments, or at officially established pay 
intervals, by deduction from the current pay account of the individual. 
The deductions may be made from 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. The amount deducted for any period 
may not exceed 15 percent of disposable pay, except that a greater 
percentage may be deducted upon the written consent of the individual 
involved. If the individual retires or resigns, or if his employment or 
period of active duty otherwise ends, before collection of the amount of 
the indebtedness is completed, deduction shall be made from subsequent 
payments of any nature due the individual from the agency concerned. All 
Federal agencies to which debts are owed and which have outstanding 
delinquent debts shall participate in a computer match at least annually 
of their delinquent debt records with records of Federal employees to 
identify those employees who are delinquent in repayment of those debts. 
The preceding sentence shall not apply to any debt under the Internal 
Revenue Code of 1986. Matched Federal employee records shall include, 
but shall not be limited to, records of active Civil Service employees 
government-wide, military active duty personnel, military reservists, 
United States Postal Service employees, employees of other government 
corporations, and seasonal and temporary employees. The Secretary of the 
Treasury shall establish and maintain an interagency consortium to 
implement centralized salary offset computer matching, and promulgate 
regulations for this program. Agencies that perform centralized salary 
offset computer matching services under this subsection are authorized 
to charge a fee sufficient to cover the full cost for such services.
    (2) Except as provided in paragraph (3) of this subsection, prior to 
initiating any proceedings under paragraph (1) of this subsection to 
collect any indebtedness of an individual, the head of the agency 
holding the debt or his designee, shall provide the individual with--
        (A) a minimum of thirty days written notice, informing such 
    individual of the nature and amount of the indebtedness determined 
    by such agency to be due, the intention of the agency to initiate 
    proceedings to collect the debt through deductions from pay, and an 
    explanation of the rights of the individual under this subsection;
        (B) an opportunity to inspect and copy Government records 
    relating to the debt;
        (C) an opportunity to enter into a written agreement with the 
    agency, under terms agreeable to the head of the agency or his 
    designee, to establish a schedule for the repayment of the debt; and
        (D) an opportunity for a hearing on the determination of the 
    agency concerning the existence or the amount of the debt, and in 
    the case of an individual whose repayment schedule is established 
    other than by a written agreement pursuant to subparagraph (C), 
    concerning the terms of the repayment schedule.

A hearing, described in subparagraph (D), shall be provided if the 
individual, on or before the fifteenth day following receipt of the 
notice described in subparagraph (A), and in accordance with such 
procedures as the head of the agency may prescribe, files a petition 
requesting such a hearing. The timely filing of a petition for hearing 
shall stay the commencement of collection proceedings. A hearing under 
subparagraph (D) may not be conducted by an individual under the 
supervision or control of the head of the agency, except that nothing in 
this sentence shall be construed to prohibit the appointment of an 
administrative law judge. The hearing official shall issue a final 
decision at the earliest practicable date, but not later than sixty days 
after the filing of the petition requesting the hearing.
    (3) Paragraph (2) shall not apply to routine intra-agency 
adjustments of pay that are attributable to clerical or administrative 
errors or delays in processing pay documents that have occurred within 
the four pay periods preceding the adjustment and to any adjustment that 
amounts 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.
    (4) The collection of any amount under this section shall be in 
accordance with the standards promulgated pursuant to sections 3711 and 
3716-3718 of title 31 or in accordance with any other statutory 
authority for the collection of claims of the United States or any 
agency thereof.
    (5) For purposes of this subsection--
        (A) ``disposable pay'' means that part of pay of any individual 
    remaining after the deduction from those earnings of any amounts 
    required by law to be withheld; and
        (B) ``agency'' includes executive departments and agencies, the 
    United States Postal Service, the Postal Rate Commission, the United 
    States Senate, the United States House of Representatives, and any 
    court, court administrative office, or instrumentality in the 
    judicial or legislative branches of the Government, and government 
    corporations.

    (b)(1) The head of each agency shall prescribe regulations, subject 
to the approval of the President, to carry out this section and section 
3530(d) of title 31. Regulations prescribed by the Secretaries of the 
military departments shall be uniform for the military services insofar 
as practicable.
    (2) For purposes of section 7117(a) of this title, no regulation 
prescribed to carry out subsection (a)(2) of this section shall be 
considered to be a Government-wide rule or regulation.
    (c) Subsection (a) of this section does not modify existing statutes 
which provide for forfeiture of pay or allowances. This section and 
section 3530(d) of title 31 do not repeal, modify, or amend section 
4837(d) or 9837(d) of title 10 or section 1007(b), (c) of title 37.
    (d) A levy pursuant to the Internal Revenue Code of 1986 shall take 
precedence over other deductions under this section.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 477; Pub. L. 96-54, 
Sec. 2(a)(2), Aug. 14, 1979, 93 Stat. 381; Pub. L. 97-258, 
Sec. 3(a)(12), Sept. 13, 1982, 96 Stat. 1063; Pub. L. 97-365, Sec. 5, 
Oct. 25, 1982, 96 Stat. 1751; Pub. L. 97-452, Sec. 2(a)(2), Jan. 12, 
1983, 96 Stat. 2478; Pub. L. 98-216, Sec. 3(a)(4), Feb. 14, 1984, 98 
Stat. 6; Pub. L. 104-134, title III, Sec. 31001(h), Apr. 26, 1996, 110 
Stat. 1321-363.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 46d.                 July 15, 1954, ch.
                                                    509, Secs.  1, 2, 4,
                                                    68 Stat. 482, 483.
                     5 U.S.C. 46e.
------------------------------------------------------------------------

    In subsection (a), the words ``head of the agency concerned'' are 
substituted for ``Secretary of the department concerned or the head of 
the agency or independent establishment concerned, or one of their 
designees''. The words ``an employee, a member of the armed forces, or a 
Reserve of the armed forces'' are coextensive with and substituted for 
``an employee of the United States or any member of the Army, Navy, Air 
Force, Marine Corps, or Coast Guard, or a reserve component thereof'' in 
view of the definitions in sections 2101 and 2105. The words ``basic 
compensation'' are omitted as included in ``basic pay''.
    In subsection (b), the words ``head of each agency'' are substituted 
for ``Each Secretary of a department, or head of an agency or 
independent establishment, as appropriate''. The words ``Secretaries of 
the military departments'' are substituted for ``Secretaries of the 
Army, Navy, and Air Force'' to conform to the definition of ``military 
department'' in section 102.
    In subsection (c), the words ``section 4837(d) or 9837(d) of title 
10 or section 1007(b), (c) of title 37'' are substituted for ``the 
provisions of the Act of May 22, 1928 (ch. 676, 45 Stat. 698)'' in 
section 4 of the Act of July 15, 1954, on authority of the Acts of Aug. 
10, 1956, ch. 1041, Sec. 49(b), 70A Stat. 640, and Sept. 7, 1962, Pub. 
L. 87-649, Sec. 12(b), 76 Stat. 497.

                       References in Text

    The Internal Revenue Code of 1986, referred to in subsecs. (a)(1) 
and (d), is classified generally to Title 26, Internal Revenue Code.


                               Amendments

    1996--Subsec. (a)(1). Pub. L. 104-134, Sec. 31001(h)(A)(i), inserted 
at end ``All Federal agencies to which debts are owed and which have 
outstanding delinquent debts shall participate in a computer match at 
least annually of their delinquent debt records with records of Federal 
employees to identify those employees who are delinquent in repayment of 
those debts. The preceding sentence shall not apply to any debt under 
the Internal Revenue Code of 1986. Matched Federal employee records 
shall include, but shall not be limited to, records of active Civil 
Service employees government-wide, military active duty personnel, 
military reservists, United States Postal Service employees, employees 
of other government corporations, and seasonal and temporary employees. 
The Secretary of the Treasury shall establish and maintain an 
interagency consortium to implement centralized salary offset computer 
matching, and promulgate regulations for this program. Agencies that 
perform centralized salary offset computer matching services under this 
subsection are authorized to charge a fee sufficient to cover the full 
cost for such services.''
    Subsec. (a)(3), (4). Pub. L. 104-134, Sec. 31001(h)(A)(ii), (iii), 
added par. (3) and redesignated former pars. (3) and (4) as (4) and (5), 
respectively.
    Subsec. (a)(5). Pub. L. 104-134, Sec. 31001(h)((A)(ii), redesignated 
par. (4) as (5).
    Subsec. (a)(5)(B). Pub. L. 104-134, Sec. 31001(h)(A)(iv), amended 
subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: 
`` `agency' includes the United States Postal Service and the Postal 
Rate Commission.''
    Subsec. (d). Pub. L. 104-134, Sec. 31001(h)(B), added subsec. (d).
    1984--Subsec. (c). Pub. L. 98-216 substituted ``section 3530(d)'' 
for ``section 581d''.
    1983--Subsec. (a)(3). Pub. L. 97-452 substituted ``sections 3711 and 
3716-3718 of title 31'' for ``the Federal Claims Collection Act of 1966 
(31 U.S.C. 951 et seq.)''.
    1982--Pub. L. 97-365, Sec. 5(c), substituted ``indebtedness to the 
United States'' for ``indebtedness because of erroneous payment'' in 
section catchline.
    Subsec. (a). Pub. L. 97-365, Sec. 5(a), designated existing 
provisions as par. (1), in par. (1) as so designated substituted 
provisions relating to debts to which the United States is entitled to 
be repaid for provisions which had related to an indebtedness to the 
United States because of an erroneous payment made by an agency to or on 
behalf of an individual, inserted provisions relating to the 
notification of a debt by the head of another agency or his designee, 
substituted provisions authorizing the deduction of not to exceed 15 
percent of disposable pay for provisions which had authorized the 
deduction of not to exceed two-thirds of the pay from which the 
deduction was made, and added pars. (2), (3), and (4).
    Subsec. (b). Pub. L. 97-365, Sec. 5(b), designated existing 
provisions as par. (1) and added par. (2).
    Pub. L. 97-258 substituted ``section 3530(d)'' for ``section 581d''.
    1979--Subsec. (b). Pub. L. 96-54 substituted ``President'' for 
``Director of the Bureau of the Budget''.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-54 effective July 12, 1979, see section 2(b) 
of Pub. L. 96-54, set out as a note under section 305 of this title.


                      Short Title of 1982 Amendment

    Section 1 of Pub. L. 97-365 provided: ``That this Act [enacting 
sections 954 and 955 of former Title 31, Money and Finance, amending 
this section and section 552a of this title, section 1114 of Title 18, 
Crimes and Criminal Procedure, sections 6103 and 7213 of Title 26, 
Internal Revenue Code, section 2415 of Title 28, Judiciary and Judicial 
Procedure, and sections 484, 951, and 952 of former Title 31, and 
enacting provisions set out as notes under this section and section 6103 
of Title 26] may be cited as the `Debt Collection Act of 1982'.''

                         Delegation of Functions

    Authority of President under subsec. (b) of this section to approve 
regulations prescribed by head of each agency to carry out this section 
and section 581d of Title 31, Money and Finance [31 U.S.C. 3530(d)], 
relating to installment deductions from pay for indebtedness because of 
erroneous payment, delegated to Office of Personnel Management, see 
section 8(1) of Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747, set 
out as a note under section 301 of Title 3, The President.


  Improvements in Debt Collection Procedures Under 1982 Amendments as 
   Contained in Debt Collection Act of 1982 Inapplicable to Claims or 
Indebtedness Under Internal Revenue Code, Social Security Act, or Tariff 
                                  Laws

    Section 8(e) of Pub. L. 97-365, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``Except as 
otherwise provided in section 4 or 7 or the foregoing provisions of this 
section [amending sections 6103 and 7213 of Title 26, Internal Revenue 
Code, and enacting provisions set out as notes under section 6103 of 
Title 26], nothing in this Act (or in the amendments made by this Act) 
[see Short Title of 1982 Amendment note above] shall apply to claims or 
indebtedness arising under, or amounts payable under, the Internal 
Revenue Code of 1986 [Title 26], the Social Security Act [section 301 et 
seq. of Title 42, The Public Health and Welfare], or the tariff laws of 
the United States [Title 19, Customs Duties].''


Collection of Indebtedness of Employees of Federal Government Resulting 
      From Action or Suit Brought Against Employee by United States

    Pub. L. 97-276, Sec. 124, Oct. 2, 1982, 96 Stat. 1195, provided 
that: ``Notwithstanding any other provision of this joint resolution 
[Pub. L. 97-276], in the case of any employee of the Federal Government 
who is indebted to the United States, as determined by a court of the 
United States in an action or suit brought against such employee by the 
United States, the amount of the indebtedness may be collected in 
monthly installments, or at officially established regular pay period 
intervals, by deduction in reasonable amounts from the current pay 
account of the individual. The deductions may be made only from basic 
pay, special pay, incentive pay, or, in the case of an individual not 
entitled to basic pay, other authorized pay. Collection shall be made 
over a period not greater than the anticipated period of employment. The 
amount deducted for any period may not exceed one-fourth of the pay from 
which the deduction is made, unless the deduction of a greater amount is 
necessary to make the collection within the period of anticipated 
employment. If the individual retires or resigns, or if his employment 
otherwise ends, before collection of the amount of the indebtedness is 
completed, deduction shall be made from later payments of any nature due 
to the individual from the United States Treasury.''

                  Section Referred to in Other Sections

    This section is referred to in title 7 sections 2020, 2022; title 10 
section 1055; title 16 section 470m; title 22 section 3664; title 42 
sections 292r, 297b, 404.
