In accordance with section 124 of Public Law 97–276 (October 2, 1982), 5 U.S.C. 5514 note (1982), the Postal Service may deduct up to one-fourth (25 percent) of an employee’s current pay in monthly installments or at officially established pay periods to satisfy a debt that a federal court determined the employee owes the Postal Service. The statute authorizes the deduction of a greater amount if necessary to collect the debt within the employee’s anticipated period of employment.
If an individual’s employment ends before the full amount of the indebtedness has been collected, section 124 states that the deduction is to be made from later payments of any nature due the employee.
Requirements governing the collection of employer claims specified by a pertinent collective bargaining agreement are not applicable to the collection by salary offset of a Postal Service claim if a federal court has granted judgment upholding the debt.
At least 15 calendar days before initiating an offset to collect a debt reflected by a federal court judgment, the Eagan ASC will provide the employee with a copy of that judgment, as well as with written notice of the Postal Service’s intention to deduct 25 percent of the employee’s current pay each pay period until the judgment is satisfied. The letter also must state the approximate amount, and duration and starting date of the deductions. Generally, the Postal Service must use Certified Mail or Priority Mail Express to deliver the letter and judgment.
The offset specified in the notice to the employee will begin no earlier than 15 calendar days after the employee’s receipt of the letter.
