Depending upon the circumstances of a particular case, the determination of a debt subject to collection under this subchapter may be made by an official in the field or at the Eagan Accounting Service Center (ASC), as follows:
- Payroll-related debts discovered in the field must be submitted to the Eagan ASC on PS Form 2240, Pay, Leave, or Other Hours Adjustment Request.
- Other debts must be reported to the manager of the Financial Processing Branch on PS Form 1902, Justification for Billing Accounts Receivable.
- Regardless of the amount, Eagan ASC must create a receivable for each debt and forward an invoice to the postmaster or installation head at the facility where the debtor is employed.
- When Eagan ASC creates a receivable for a debt, it must ensure that the employee’s records are flagged so that the final salary or lump-sum leave payment for that employee is not made until the debt is paid.
Each postmaster or installation head is responsible for collecting, in accordance with these regulations, any debt owed to the Postal Service by an employee under his or her supervision. Postmasters or installation heads may delegate their responsibilities under these regulations.
The procedures in this section are intended to facilitate the informal resolution of employee-owed debts. In most cases, these procedures should be followed before initiating the statutorily mandated salary offset procedures in 452.3. However, if the postmaster or installation head determines that expeditious action is necessary, the procedures in 452.3 may be initiated immediately.
When the postmaster or installation head receives an invoice reflecting an employee-owed debt from the Eagan ASC, he or she must give the employee a copy of the invoice and written notice of the Postal Service’s determination of the existence, nature, and amount of the debt (see Exhibit 452.22, Sample Letter of Debt Determination — Nonbargaining). The letter must inform the employee that he or she may pursue one or more of the following options, as appropriate, in order to avoid involuntary salary offsets:
Exhibit 452.22
Sample Letter of Debt Determination — Nonbargaining
o
Exhibit 452.22 (p. 2)
Sample Letter of Debt Determination — Nonbargaining (Enclosure)
Exhibit 452.22 (p. 3)
Sample Letter of Debt Determination — Nonbargaining (Enclosure)
If an employee would like copies of records relating to a postal debt, he or she must notify the postmaster or installation head in writing within 10 calendar days of receiving notice of the Postal Service’s determination of a debt. The postmaster or installation head is responsible for requesting copies of the pertinent records by telephone, if necessary, from the Eagan ASC and/or appropriate postal facility, and for providing the employee with copies of these records within 5 calendar days of receiving the employee’s written request. Until collection of the debt is completed, the postmaster or installation head must keep a copy of all records provided to the employee at this stage.
An employee who acknowledges the validity of the Postal Service’s claim and wishes to repay the entire debt voluntarily should be instructed to remit to the postmaster or installation head, for transmittal to the Eagan ASC, a check or money order for the full amount due, with the employee’s Social Security number on its face. The employee should submit the check or money order no later than 15 calendar days from the date the employee receives the notice of the Postal Service’s determination of a debt if he or she does not request copies of postal records relating to the debt, or within 15 calendar days from the date the employee receives any requested records.
If an employee acknowledges the validity of the Postal Service’s claim and would like to repay the debt voluntarily through offsets of 15 percent or more of his or her disposable pay, the employee and the postmaster or installation head should complete the appropriate sections of PS Form 3239, Payroll Deduction Authorization to Liquidate Postal Service Indebtedness (see Exhibit 452.233). This form must be completed no later than 15 calendar days from the date the employee receives the notice of the Postal Service’s determination of a debt if he or she does not request copies of postal records relating to the debt, or within 15 calendar days from the date the employee receives any requested records.
Exhibit 452.233
PS Form 3239, Payroll Deduction Authorization to Liquidate Postal Service Indebtedness
If the employee acknowledges the debt, but contends that the proposed deductions of 15 percent of disposable pay would be too severe, he or she may propose an alternative offset schedule.
- Proposal. The employee’s proposed offset schedule must be submitted in writing to the postmaster or installation head, along with a written statement and supporting documentation, stating the employee’s reasons for believing that the deductions proposed by the Postal Service would result in a “severe financial hardship,” as defined in 451.5h. The proposal must include (1) the amount to be paid each pay period, (2) the number of pay periods it would take to repay the debt under the employee’s proposal, and (3) the date the first payment would be made. The supporting documents must also show the following information relating to the employee and his or her spouse and dependents, for the 1–year period preceding the Postal Service’s notice and the repayment period proposed by the employee’s alternative offset schedule: (1) total family income, assets, and liabilities; (2) number of dependents; and (3) total expenses for food, housing, clothing, transportation, medical care, and any exceptional expenses. The employee should be instructed to provide all information in his or her possession relating to the debt and to his or her financial ability to repay it so that the postmaster or installation head may make an informed decision on an employee’s proposed alternative offset plan.
- Time Frame. The employee’s proposed alternative offset schedule and written submissions must be received by the postmaster or installation head no later than 15 calendar days from the date the employee receives the notice of the Postal Service’s determination of a debt if he or she does not request copies of postal records relating to the debt, or within 15 calendar days from the date the employee receives any requested records.
- Consideration. Based upon the material submitted by the employee and postal records relating to the debt, the postmaster or installation head must consider (1) the extent to which the assets of the employee and his or her spouse and dependents are available to meet their essential material expenses and to repay the postal debt, (2) whether the essential material expenses have been minimized as much as possible, and (3) the extent to which the employee and his or her spouse and dependents can borrow to finance their essential expenses and to repay the postal debt. An employee’s alternative offset schedule should be approved only if it provides for installment payments that bear a reasonable relationship to the size of the debt and the employee’s ability to pay. Generally, an alternative offset schedule should provide for installment payments of no less than 10 percent of disposable pay per pay period, and for a repayment period of 26 pay periods or less.
If an employee wishes to request reconsideration of the Postal Service’s determination of the existence or amount of a debt, he or she may proceed as follows:
- Request. The employee’s request for reconsideration must be submitted in writing to the postmaster or installation head, along with a written statement and supporting documentation indicating why the employee believes he or she is not so indebted. Since the postmaster or installation head will use the material provided by the employee, along with postal records relating to the debt, in deciding whether the Postal Service’s determination of the debt should be revised, employees should be instructed to provide all information in their possession relating to the debt so that the postmaster or installation head may make an informed determination.
- Time Frame. The employee’s written submission must be received by the postmaster or installation head no later than 15 calendar days from the date the employee receives the notice of the Postal Service’s determination of a debt if he or she does not request copies of postal records relating to the debt, or within 15 calendar days from the date the employee receives any requested records.
After reviewing an employee’s proposed alternative offset schedule and/or request that the Postal Service reconsider its determination of the existence or amount of a debt, the postmaster or installation head, within 15 calendar days of receiving the employee’s proposal or request, must notify the employee in writing of the determination and take any necessary follow–up action as outlined in 452.242 and 452.243.
If the employee challenged the existence or amount of the debt, the postmaster or installation head takes one of the following actions:
- Notifies the employee in writing that (1) he or she is indebted to the Postal Service for the amount set forth in its letter and (2) to prevent the initiation of involuntary offset proceedings, he or she must make arrangements to repay the debt in accordance with the procedures specified in 452.25.
- Notifies the employee in writing that (1) he or she is indebted to the Postal Service for a revised amount and (2) he or she may, within 10 calendar days of receiving the Postal Service’s determination upon reconsideration, propose in writing to the postmaster or installation head an alternative offset schedule based on the new figure in accordance with the requirements set forth in 452.234a. In accordance with the requirements set forth in 452.234c, and within 5 calendar days of receiving this proposed alternative offset schedule, the postmaster or installation head must notify the employee in writing whether or not it is acceptable. If the postmaster or installation head rejects the employee’s alternative offset schedule, the employee must be advised in writing that, to prevent the initiation of involuntary offset proceedings, he or she must make arrangements to repay the debt in accordance with the procedures specified in 452.25.
- Notifies the employee in writing that he or she is not indebted to the Postal Service for any amount. The postmaster or installation head must immediately notify the Eagan ASC to eliminate the receivable and remove the flag from the employee’s records.
If an alternative offset schedule was proposed, the postmaster or installation head takes one of the following actions:
- Notifies the employee in writing that (1) the Postal Service’s proposed offset schedule would not result in a severe financial hardship for the employee and his or her spouse and dependents, and accordingly the alternative offset schedule proposed by the employee is not acceptable, and (2) to prevent the initiation of involuntary offset proceedings, he or she must make arrangements to repay the debt in accordance with the procedures specified in 452.25.
- Notifies the employee in writing that (1) the employee has demonstrated that the Postal Service’s proposed offset schedule would result in a severe financial hardship, and accordingly the alternative offset schedule proposed by the employee (or some variation of it) is acceptable, and that (2) the employee must complete appropriate sections of PS Form 3239. The postmaster or installation head implements the change by completing PS Form 3239.
If an employee, upon receiving notice of the Postal Service’s determination upon reconsideration, acknowledges the validity of the Postal Service’s claim and would like to repay the entire debt voluntarily, he or she should be instructed to remit to the postmaster or installation head, for transmittal to the Eagan ASC, a check or money order for the full amount due, with the employee’s Social Security number on its face. The employee must submit payment within 15 calendar days of receiving notice of the Postal Service’s determination upon reconsideration.
If an employee, upon receiving the Postal Service’s determination on reconsideration, acknowledges the validity of the Postal Service’s claim and would like to repay the debt voluntarily through offsets of 15 percent or more of his or her disposable pay, the employee and the postmaster or installation head should complete the appropriate sections of PS Form 3239. This form must be completed no later than 15 calendar days from the date the employee receives notice of the Postal Service’s determination upon reconsideration.
If an employee, after receiving notice of the Postal Service’s determination of a debt, or after receiving notice of the Postal Service’s determination upon reconsideration, fails, within the applicable time periods, to resolve a debt or to make satisfactory arrangements to repay it, the postmaster or installation head must initiate the statutory collection procedures in 452.3.
Under section 5 of the Debt Collection Act, 5 U.S.C. 5514(a) (1982), the Postal Service may, after providing certain procedural rights, offset an employee’s salary in order to satisfy any debt due the Postal Service. Generally, up to 15 percent of an individual’s “disposable pay” (or the alternative amount determined for a bargaining unit employee as provided in 462.42) may be deducted in monthly installments or at “officially established pay intervals.” A greater percentage may be deducted with the written consent of the individual debtor. If the individual’s employment ends before the full debt is collected, deduction may be made from subsequent payments of any nature due the employee.
At least 30 calendar days before making an administrative offset under this authority, the postmaster or installation head must provide an employee–debtor with (a) two copies of a Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act, containing the information in 452.322, and (b) a copy of the procedures that govern hearings under the Debt Collection Act set forth at 39 CFR Part 961 (see Exhibit 452.322).
The notice (see Exhibit 452.322, Sample Notice of Involuntary Administrative Salary Offsets) required by 452.321 must notify the employee of the following:
- The name, work address, and telephone number of the postmaster or installation head issuing the notice.
- The Postal Service’s determination of the existence and amount of the debt.
- The nature of the debt.
- The Postal Service’s intention to collect the amount due by offsetting 15 percent of the employee’s “disposable pay” (or the alternative amount determined for a bargaining unit employee as provided in 462.42) each pay period.
- The estimated amount, starting date (generally 30 days from the date the employee receives the notice, see Exhibit 452.322), frequency, and duration of the intended deductions.
- The procedural rights available to the employee, as well as the appropriate method for requesting them. These rights include an opportunity to:
- Obtain copies of Postal Service records relating to the debt.
- Avoid the need for involuntary offsets by paying the debt in full.
Exhibit 452.322
Sample Notice of Involuntary Administrative Salary Offsets
Exhibit 452.322 (p. 2)
Sample Notice of Involuntary Administrative Salary Offsets
Exhibit 452.322 (p. 3)
Sample Notice of Involuntary Administrative Salary Offsets
Exhibit 452.322 (p. 4)
Sample Notice of Involuntary Administrative Salary Offsets
Exhibit 452.322 (p. 5)
Sample Notice of Involuntary Administrative Salary Offsets
Exhibit 452.322 (p. 6)
Sample Notice of Involuntary Administrative Salary Offsets
- Consent to salary offsets of 15 percent or more of disposable pay (or the alternative amount determined for a bargaining unit employee as provided in 462.42).
- Enter into a written agreement with the Postal Service, under terms agreeable to the postmaster or installation head, to establish an alternative debt repayment schedule.
- Obtain a hearing on the Postal Service’s determination concerning the existence or the amount of the debt, or on the terms of the Postal Service’s proposed repayment schedule.
The employee must be informed that the timely filing of a petition for a hearing will stay the collection proceedings.
Employees may pursue as many of the options available to them as they wish. It should be noted, however, that an employee’s petition for a hearing on the Postal Service’s determination of the existence or amount of a debt, or on the terms of the Postal Service’s proposed repayment schedule, must be submitted within the time frame specified in 452.336. If, after requesting a hearing, the employee is able to resolve the debt through another available option, his or her hearing petition may be withdrawn.
If an employee wishes to request copies of any records, the employee and the postmaster or installation head proceed as follows:
- Submission. At any time after receiving notice of the Postal Service’s intention to collect a debt through involuntary salary offsets and before any requested hearing is held, a nonbargaining unit employee may request copies of any records he or she did not previously obtain under 452.231, while a bargaining unit employee may request copies of any records the employee or the employee’s union did not previously obtain under 462.21. Requests for copies of postal records relating to an alleged debt must be made in writing and directed to the postmaster or installation head.
- Response. The postmaster or installation head should take care to respond expeditiously to records requests so as not to deprive an employee of the benefit of any information that might resolve questions relating to the debt. Once a request is received, the postmaster or installation head must promptly request, as necessary, copies of the pertinent records by telephone from the Eagan ASC or appropriate postal facility and provide the employee, within 5 calendar days of receiving the employee’s request, with copies of all records requested.
An employee who wishes to pay off an entire debt may remit to the postmaster or installation head for transmittal to the Eagan ASC a check or money order with his or her Social Security number on its face, at any time after receiving written notice of the Postal Service’s intention to collect the debt through involuntary salary offsets.
If an employee acknowledges the validity of the Postal Service’s claim and would like to consent to offsets of 15 percent or more of his or her disposable pay (or the alternative amount determined for a bargaining unit employee as provided in 462.42), the employee and the postmaster or installation head should complete the appropriate sections of PS Form 3239. An employee may consent to salary offsets at any time after he or she receives notice of the Postal Service’s intention to collect the debt through involuntary salary offsets.
If an employee acknowledges the Postal Service’s claim, but contends that the proposed deductions of 15 percent of disposable pay (or the alternative amount determined for a bargaining unit employee as provided in 462.42) would be too severe, he or she may propose an alternative offset schedule and proceed as follows:
- Proposal. The employee’s proposed offset schedule must be submitted to the postmaster or installation head, along with a written statement and supporting documentation, stating the employee’s reasons for believing the deductions proposed by the Postal Service would result in a “severe financial hardship” as that term is defined in 451.5h. The proposal must include (1) the amount to be paid each pay period, (2) the number of pay periods it would take to repay the debt under the employee’s proposal, and (3) the date the first payment would be made. The supporting documents must also show the following information relating to the employee and his or her spouse and dependents, for the 1–year period preceding the Postal Service’s notice and the repayment period proposed by the employee’s alternative offset schedule: (1) total family income, assets, and liabilities; (2) number of dependents; and (3) total expenses for food, housing, clothing, transportation, medical care, and any exceptional expenses. The employee should be instructed to provide all information in his or her possession relating to the debt and his or her financial ability to repay it so that the postmaster or installation head may make an informed decision on the employee’s request.
- Time Frame. The employee may submit his or her proposed alternative repayment schedule to the postmaster or installation head at any time after receiving notice of the Postal Service’s intention to collect an outstanding debt through involuntary salary offsets.
- Consideration. Based upon the material submitted by the employee and postal records relating to the debt, the postmaster or installation head must consider (1) the extent to which the assets of the employee and his or her spouse and dependents are available to meet their essential material expenses and to repay the postal debt, (2) whether the essential material expenses have been minimized as much as possible, and (3) the extent to which the employee and his or her spouse and dependents can borrow to finance their essential expenses and to repay the debt. An employee’s alternative offset schedule should be approved only if it provides for installment payments that bear a reasonable relationship to the size of the debt and the employee’s ability to pay. Generally, an alternative offset schedule should provide for installment payments of no less than 10 percent of disposable pay per pay period, and for a repayment period of 26 pay periods or less.
- Notification. The postmaster or installation head must notify the employee in writing of his or her decision regarding the employee’s proposed alternative offset schedule within 15 calendar days of receiving it from the employee.
- Implementation. The postmaster or installation head and the employee must implement the terms of an acceptable alternative repayment agreement by completing the appropriate sections of Form 3239.
If an employee wishes to request a hearing, the employee and the Postal Service proceed as follows:
- Hearing Request. If an employee desires a hearing prescribed by section 5 of the Debt Collection Act on the Postal Service’s determination of the existence or amount of the debt, or on the involuntary repayment terms proposed by the Postal Service, the employee must file a written petition for a hearing in accordance with the requirements of 39 CFR 961.4. The petition must be filed with the
RECORDER
JUDICIAL OFFICER
US POSTAL SERVICE
2101 WILSON BLVD STE 600
ARLINGTON VA 22201–3078
on or before the fifteenth calendar day following the employee’s receipt of the Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act. The hearing procedures are set forth in 39 CFR Part 961, which is incorporated herein by reference.
- Postdecision Responsibilities. After an employee has been accorded a requested hearing and a written decision has been rendered, the general counsel of the Postal Service notifies the appropriate postmaster or installation head of the determination. If the hearing decision indicates that the employee is not indebted to the Postal Service, the postmaster or installation head must take the necessary steps to remove all references to the debt from the employee’s records. However, if the decision authorizes the Postal Service to offset an employee’s salary, the postmaster or installation head must initiate the authorized offsets by completing the appropriate sections of PS Form 3239.
If, upon receiving notice of the Postal Service’s intention to collect a debt through involuntary salary offsets, the employee fails to repay the debt, fails to consent to the Postal Service’s proposed offsets, fails to propose an acceptable alternative offset schedule, and does not request a hearing on the Postal Service’s determination of the debt or its proposed offset schedule, the postmaster or installation head may initiate the offsets specified in the Postal Service’s notice to the employee, no earlier than 30 calendar days after the debtor’s receipt of that notice, by completing the appropriate sections of PS Form 3239.
- The procedures governing the collection of postal debts contained in sections 452.2 and 452.3 do not apply to:
- Amounts to be collected which arose from the employee’s election of coverage or change of coverage under a federal benefits program requiring periodic deductions from pay, and were accumulated over four pay periods or less;
- 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 pay period in which the first adjustment is made, provided the individual is given notice in accordance with section 452.4b; or
- Any adjustment that amounts to $50 or less, provided the individual is given notice in accordance with section 452.4b.
- At the time the first adjustment is made pursuant to section 452.4a2 or 3, or as soon thereafter as practical, the individual must be provided written notice of the nature and the amount of the debt and adjustments and a point of contact for contesting collection.
