Title 5 — Government Organization and Employees — § 5514. Installment deduction for indebtedness to the United States
Summary
This page of Title 5 of the U.S. Code prints section 5514, Installment deduction for indebtedness to the United States, followed by notes and the start of section 5515. When an agency head determines that an employee, or a member of the Armed Forces or Reserve, is indebted to the United States, the debt may be collected in monthly installments, or at officially established pay intervals, by deduction from current pay. Before collection the individual is entitled to notice, an opportunity to inspect and copy Government records relating to the debt, an opportunity to enter into a written agreement on repayment, and a hearing if a petition is filed on or before the fifteenth day after the notice. The section also directs the Secretary of the Treasury to maintain an interagency consortium to implement centralized salary offset computer matching.
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§ 5514 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES Page 640
otherwise entitled to pay, the pay of the payee ternal Revenue Code of 1986. Matched Federal
shall be withheld in whole or in part until full employee records shall include, but shall not be
reimbursement is made under regulations pre- limited to, records of active Civil Service em-
scribed by the head of the Executive agency ployees government-wide, military active duty
from which the payee is entitled to receive pay. personnel, military reservists, United States
This section does not repeal or modify existing Postal Service employees, employees of other
statutes relating to the collection of the indebt- government corporations, and seasonal and tem-
edness of an accountable, certifying, or dis- porary employees. The Secretary of the Treas-
bursing official. ury shall establish and maintain an interagency
consortium to implement centralized salary off-
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 477; Pub. L.
set computer matching, and promulgate regula-
108–271, § 8(b), July 7, 2004, 118 Stat. 814.) tions for this program. Agencies that perform
HISTORICAL AND REVISION NOTES centralized salary offset computer matching
services under this subsection are authorized to
Derivation U.S. Code Revised Statutes and charge a fee sufficient to cover the full cost for
Statutes at Large
such services.
.................. 5 U.S.C. 46b. May 26, 1936, ch. 452, 49 (2) Except as provided in paragraph (3) of this
Stat. 1374. subsection, prior to initiating any proceedings
Aug. 3, 1950, ch. 515, 64 Stat.
393.
under paragraph (1) of this subsection to collect
any indebtedness of an individual, the head of
The words ‘‘On and after May 26, 1936’’ are omitted as the agency holding the debt or his designee,
executed. The word ‘‘official’’ is substituted for ‘‘offi- shall provide the individual with—
cer’’ and ‘‘officers’’ as the definition of ‘‘officer’’ in sec- (A) a minimum of thirty days written no-
tion 2104 excludes a member of a uniformed service. tice, informing such individual of the nature
The words ‘‘from the United States or from an agency and amount of the indebtedness determined by
or instrumentality thereof’’ are omitted as unneces- such agency to be due, the intention of the
sary. agency to initiate proceedings to collect the
Standard changes are made to conform with the defi-
nitions applicable and the style of this title as outlined
debt through deductions from pay, and an ex-
in the preface to the report. planation of the rights of the individual under
this subsection;
Editorial Notes (B) an opportunity to inspect and copy Gov-
ernment records relating to the debt;
AMENDMENTS (C) an opportunity to enter into a written
2004—Pub. L. 108–271 substituted ‘‘Government Ac- agreement with the agency, under terms
countability Office’’ for ‘‘General Accounting Office’’. agreeable to the head of the agency or his des-
ignee, to establish a schedule for the repay-
§ 5514. Installment deduction for indebtedness to ment of the debt; and
the United States (D) an opportunity for a hearing on the de-
(a)(1) When the head of an agency or his des- termination of the agency concerning the ex-
ignee determines that an employee, member of istence or the amount of the debt, and in the
the Armed Forces or Reserve of the Armed case of an individual whose repayment sched-
Forces, is indebted to the United States for ule is established other than by a written
debts to which the United States is entitled to agreement pursuant to subparagraph (C), con-
be repaid at the time of the determination by cerning the terms of the repayment schedule.
the head of an agency or his designee, or is noti- A hearing, described in subparagraph (D), shall
fied of such a debt by the head of another agen- be provided if the individual, on or before the fif-
cy or his designee the amount of indebtedness teenth day following receipt of the notice de-
may be collected in monthly installments, or at scribed in subparagraph (A), and in accordance
officially established pay intervals, by deduction with such procedures as the head of the agency
from the current pay account of the individual. may prescribe, files a petition requesting such a
The deductions may be made from basic pay, hearing. The timely filing of a petition for hear-
special pay, incentive pay, retired pay, retainer ing shall stay the commencement of collection
pay, or, in the case of an individual not entitled proceedings. A hearing under subparagraph (D)
to basic pay, other authorized pay. The amount may not be conducted by an individual under
deducted for any period may not exceed 15 per- the supervision or control of the head of the
cent of disposable pay, except that a greater per- agency, except that nothing in this sentence
centage may be deducted upon the written con- shall be construed to prohibit the appointment
sent of the individual involved. If the individual of an administrative law judge. The hearing offi-
retires or resigns, or if his employment or period cial shall issue a final decision at the earliest
of active duty otherwise ends, before collection practicable date, but not later than sixty days
of the amount of the indebtedness is completed, after the filing of the petition requesting the
deduction shall be made from subsequent pay- hearing.
ments of any nature due the individual from the (3) Paragraph (2) shall not apply to routine
agency concerned. All Federal agencies to which intra-agency adjustments of pay that are attrib-
debts are owed and which have outstanding de- utable to clerical or administrative errors or
linquent debts shall participate in a computer delays in processing pay documents that have
match at least annually of their delinquent debt occurred within the four pay periods preceding
records with records of Federal employees to the adjustment and to any adjustment that
identify those employees who are delinquent in amounts to $50 or less, if at the time of such ad-
repayment of those debts. The preceding sen- justment, or as soon thereafter as practical, the
tence shall not apply to any debt under the In- individual is provided written notice of the na-
Page 641 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 5514
ture and the amount of the adjustment and a pendent establishment concerned, or one of their des-
point of contact for contesting such adjustment. ignees’’. The words ‘‘an employee, a member of the
(4) The collection of any amount under this armed forces, or a Reserve of the armed forces’’ are co-
section shall be in accordance with the stand- extensive with and substituted for ‘‘an employee of the
United States or any member of the Army, Navy, Air
ards promulgated pursuant to sections 3711 and Force, Marine Corps, or Coast Guard, or a reserve com-
3716–3718 of title 31 or in accordance with any ponent thereof’’ in view of the definitions in sections
other statutory authority for the collection of 2101 and 2105. The words ‘‘basic compensation’’ are
claims of the United States or any agency there- omitted as included in ‘‘basic pay’’.
of. In subsection (b), the words ‘‘head of each agency’’
(5) For purposes of this subsection— are substituted for ‘‘Each Secretary of a department, or
(A) ‘‘disposable pay’’ means that part of pay head of an agency or independent establishment, as ap-
of any individual remaining after the deduc- propriate’’. The words ‘‘Secretaries of the military de-
tion from those earnings of any amounts re- partments’’ are substituted for ‘‘Secretaries of the
Army, Navy, and Air Force’’ to conform to the defini-
quired by law to be withheld; and
tion of ‘‘military department’’ in section 102.
(B) ‘‘agency’’ includes executive depart- In subsection (c), the words ‘‘section 4837(d) or 9837(d)
ments and agencies, the United States Postal of title 10 or section 1007(b), (c) of title 37’’ are sub-
Service, the Postal Regulatory Commission, stituted for ‘‘the provisions of the Act of May 22, 1928
any nonappropriated fund instrumentality de- (ch. 676, 45 Stat. 698)’’ in section 4 of the Act of July 15,
scribed in section 2105(c) of this title, the 1954, on authority of the Acts of Aug. 10, 1956, ch. 1041,
United States Senate, the United States House § 49(b), 70A Stat. 640, and Sept. 7, 1962, Pub. L. 87–649,
of Representatives, and any court, court ad- § 12(b), 76 Stat. 497.
ministrative office, or instrumentality in the
judicial or legislative branches of the Govern- Editorial Notes
ment, and government corporations. REFERENCES IN TEXT
(b)(1) The head of each agency shall prescribe The Internal Revenue Code of 1986, referred to in sub-
regulations, subject to the approval of the Presi- secs. (a)(1) and (d), is classified generally to Title 26, In-
dent, to carry out this section and section ternal Revenue Code.
3530(d) of title 31. Regulations prescribed by the Sections 4837(d) and 9837(d) of title 10, referred to in
subsec. (c), probably refer to the subsecs. (d) of those
Secretaries of the military departments shall be
sections as originally enacted by act Aug. 10, 1956, ch.
uniform for the military services insofar as 1041, 70A Stat. 274, 594. Sections 4837 and 9837 were sub-
practicable. sequently amended, and provisions similar to those in
(2) For purposes of section 7117(a) of this title, the original subsecs. (d) of those sections are now con-
no regulation prescribed to carry out subsection tained in respective subsecs. (a).
(a)(2) of this section shall be considered to be a
AMENDMENTS
Government-wide rule or regulation.
(c) Subsection (a) of this section does not mod- 2018—Subsec. (c). Pub. L. 115–232 substituted ‘‘section
ify existing statutes which provide for forfeiture 7837(d) or 9837(d) of title 10’’ for ‘‘section 4837(d) or
of pay or allowances. This section and section 9837(d) of title 10’’.
3530(d) of title 31 do not repeal, modify, or 2008—Subsec. (a)(5)(B). Pub. L. 110–181, § 652(1), in-
serted ‘‘any nonappropriated fund instrumentality de-
amend section 7837(d) or 9837(d) of title 10 or sec- scribed in section 2105(c) of this title,’’ after ‘‘Commis-
tion 1007(b), (c) of title 37. sion,’’.
(d) A levy pursuant to the Internal Revenue Subsec. (e). Pub. L. 110–181, § 652(2), added subsec. (e).
Code of 1986 shall take precedence over other de- 2006—Subsec. (a)(5)(B). Pub. L. 109–435 substituted
ductions under this section. ‘‘Postal Regulatory Commission’’ for ‘‘Postal Rate
(e) An employee of a nonappropriated fund in- Commission’’.
strumentality described in section 2105(c) of this 1996—Subsec. (a)(1). Pub. L. 104–134, § 31001(h)(A)(i), in-
title is deemed an employee covered by this sec- serted at end ‘‘All Federal agencies to which debts are
tion. owed and which have outstanding delinquent debts
shall participate in a computer match at least annually
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 477; Pub. L. of their delinquent debt records with records of Federal
96–54, § 2(a)(2), Aug. 14, 1979, 93 Stat. 381; Pub. L. employees to identify those employees who are delin-
97–258, § 3(a)(12), Sept. 13, 1982, 96 Stat. 1063; Pub. quent in repayment of those debts. The preceding sen-
L. 97–365, § 5, Oct. 25, 1982, 96 Stat. 1751; Pub. L. tence shall not apply to any debt under the Internal
97–452, § 2(a)(2), Jan. 12, 1983, 96 Stat. 2478; Pub. Revenue Code of 1986. Matched Federal employee
records shall include, but shall not be limited to,
L. 98–216, § 3(a)(4), Feb. 14, 1984, 98 Stat. 6; Pub. records of active Civil Service employees government-
L. 104–134, title III, § 31001(h), Apr. 26, 1996, 110 wide, military active duty personnel, military reserv-
Stat. 1321–363; Pub. L. 109–435, title VI, § 604(b), ists, United States Postal Service employees, employ-
Dec. 20, 2006, 120 Stat. 3241; Pub. L. 110–181, div. ees of other government corporations, and seasonal and
A, title VI, § 652, Jan. 28, 2008, 122 Stat. 162; Pub. temporary employees. The Secretary of the Treasury
L. 115–232, div. A, title VIII, § 809(c)(3), Aug. 13, shall establish and maintain an interagency consor-
2018, 132 Stat. 1841.) tium to implement centralized salary offset computer
matching, and promulgate regulations for this pro-
HISTORICAL AND REVISION NOTES gram. Agencies that perform centralized salary offset
computer matching services under this subsection are
Derivation U.S. Code Revised Statutes and authorized to charge a fee sufficient to cover the full
Statutes at Large
cost for such services.’’
.................. 5 U.S.C. 46d. July 15, 1954, ch. 509, §§ 1, 2, Subsec. (a)(3), (4). Pub. L. 104–134, § 31001(h)(A)(ii),
4, 68 Stat. 482, 483. (iii), added par. (3) and redesignated former pars. (3)
.................. 5 U.S.C. 46e. and (4) as (4) and (5), respectively.
Subsec. (a)(5). Pub. L. 104–134, § 31001(h)((A)(ii), redes-
In subsection (a), the words ‘‘head of the agency con- ignated par. (4) as (5).
cerned’’ are substituted for ‘‘Secretary of the depart- Subsec. (a)(5)(B). Pub. L. 104–134, § 31001(h)(A)(iv),
ment concerned or the head of the agency or inde- amended subpar. (B) generally. Prior to amendment,
§ 5515 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES Page 642
subpar. (B) read as follows: ‘‘ ‘agency’ includes the Health and Welfare], or the tariff laws of the United
United States Postal Service and the Postal Rate Com- States [Title 19, Customs Duties].’’
mission.’’
COLLECTION OF INDEBTEDNESS OF EMPLOYEES OF FED-
Subsec. (d). Pub. L. 104–134, § 31001(h)(B), added sub-
ERAL GOVERNMENT RESULTING FROM ACTION OR SUIT
sec. (d).
BROUGHT AGAINST EMPLOYEE BY UNITED STATES
1984—Subsec. (c). Pub. L. 98–216 substituted ‘‘section
3530(d)’’ for ‘‘section 581d’’. Pub. L. 97–276, § 124, Oct. 2, 1982, 96 Stat. 1195, provided
1983—Subsec. (a)(3). Pub. L. 97–452 substituted ‘‘sec- that: ‘‘Notwithstanding any other provision of this
tions 3711 and 3716–3718 of title 31’’ for ‘‘the Federal joint resolution [Pub. L. 97–276], in the case of any em-
Claims Collection Act of 1966 (31 U.S.C. 951 et seq.)’’. ployee of the Federal Government who is indebted to
1982—Pub. L. 97–365, § 5(c), substituted ‘‘indebtedness the United States, as determined by a court of the
to the United States’’ for ‘‘indebtedness because of er- United States in an action or suit brought against such
roneous payment’’ in section catchline. employee by the United States, the amount of the in-
Subsec. (a). Pub. L. 97–365, § 5(a), designated existing debtedness may be collected in monthly installments,
provisions as par. (1), in par. (1) as so designated sub- or at officially established regular pay period intervals,
stituted provisions relating to debts to which the by deduction in reasonable amounts from the current
United States is entitled to be repaid for provisions pay account of the individual. The deductions may be
which had related to an indebtedness to the United made only from basic pay, special pay, incentive pay,
States because of an erroneous payment made by an or, in the case of an individual not entitled to basic
agency to or on behalf of an individual, inserted provi- pay, other authorized pay. Collection shall be made
sions relating to the notification of a debt by the head over a period not greater than the anticipated period of
of another agency or his designee, substituted provi- employment. The amount deducted for any period may
sions authorizing the deduction of not to exceed 15 per- not exceed one-fourth of the pay from which the deduc-
cent of disposable pay for provisions which had author- tion is made, unless the deduction of a greater amount
ized the deduction of not to exceed two-thirds of the is necessary to make the collection within the period of
pay from which the deduction was made, and added anticipated employment. If the individual retires or re-
pars. (2), (3), and (4). signs, or if his employment otherwise ends, before col-
Subsec. (b). Pub. L. 97–365, § 5(b), designated existing lection of the amount of the indebtedness is completed,
provisions as par. (1) and added par. (2). deduction shall be made from later payments of any na-
Pub. L. 97–258 substituted ‘‘section 3530(d)’’ for ‘‘sec- ture due to the individual from the United States
tion 581d’’. Treasury.’’
1979—Subsec. (b). Pub. L. 96–54 substituted ‘‘Presi-
dent’’ for ‘‘Director of the Bureau of the Budget’’. Executive Documents
DELEGATION OF FUNCTIONS
Statutory Notes and Related Subsidiaries Authority of President under subsec. (b) of this sec-
tion to approve regulations prescribed by head of each
EFFECTIVE DATE OF 2018 AMENDMENT agency to carry out this section and section 581d of
Amendment by Pub. L. 115–232 effective Feb. 1, 2019, Title 31, Money and Finance [31 U.S.C. 3530(d)], relating
with provision for the coordination of amendments and to installment deductions from pay for indebtedness
special rule for certain redesignations, see section 800 because of erroneous payment, delegated to Office of
of Pub. L. 115–232, set out as a note preceding section Personnel Management, see section 8(1) of Ex. Ord. No.
3001 of Title 10, Armed Forces. 11609, July 22, 1971, 36 F.R. 13747, set out as a note under
section 301 of Title 3, The President.
EFFECTIVE DATE OF 1979 AMENDMENT § 5515. Crediting amounts received for jury or
Amendment by Pub. L. 96–54 effective July 12, 1979, witness service
see section 2(b) of Pub. L. 96–54, set out as a note under
section 305 of this title. An amount received by an employee as defined
by section 2105 of this title (except an individual
SHORT TITLE OF 1982 AMENDMENT whose pay is disbursed by the Secretary of the
Pub. L. 97–365, § 1, Oct. 25, 1982, 96 Stat. 1749, provided:
Senate, the Chief Administrative Officer of the
‘‘That this Act [enacting sections 954 and 955 of former House of Representatives, or the Chief of the
Title 31, Money and Finance, amending this section and Capitol Police) or an individual employed by the
section 552a of this title, section 1114 of Title 18, Crimes government of the District of Columbia for serv-
and Criminal Procedure, sections 6103 and 7213 of Title ice as a juror or witness during a period for
26, Internal Revenue Code, section 2415 of Title 28, Judi- which he is entitled to leave under section
ciary and Judicial Procedure, and sections 484, 951, and 6322(a) of this title, or is performing official
952 of former Title 31, and enacting provisions set out duty under section 6322(b) of this title, shall be
as notes under this section and section 6103 of Title 26]
credited against pay payable to him by the
may be cited as the ‘Debt Collection Act of 1982’.’’
United States or the District of Columbia with
IMPROVEMENTS IN DEBT COLLECTION PROCEDURES respect to that period.
UNDER 1982 AMENDMENTS AS CONTAINED IN DEBT (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478; Pub. L.
COLLECTION ACT OF 1982 INAPPLICABLE TO CLAIMS OR 91–563, § 2(a), Dec. 19, 1970, 84 Stat. 1476; Pub. L.
INDEBTEDNESS UNDER INTERNAL REVENUE CODE, SO-
104–186, title II, § 215(5), Aug. 20, 1996, 110 Stat.
CIAL SECURITY ACT, OR TARIFF LAWS
1745; Pub. L. 111–145, § 7(c)(1), Mar. 4, 2010, 124
Pub. L. 97–365, § 8(e), Oct. 25, 1982, 96 Stat. 1754, as Stat. 55.)
amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat.
2095, provided that: ‘‘Except as otherwise provided in HISTORICAL AND REVISION NOTES
section 4 or 7 or the foregoing provisions of this section
[amending sections 6103 and 7213 of Title 26, Internal Derivation U.S. Code Revised Statutes and
Statutes at Large
Revenue Code, and enacting provisions set out as notes
under section 6103 of Title 26], nothing in this Act (or .................. 5 U.S.C. 30p. June 29, 1940, ch. 446, § 3, 54
in the amendments made by this Act) [see Short Title Stat. 689.
of 1982 Amendment note above] shall apply to claims or
indebtedness arising under, or amounts payable under, Standard changes are made to conform with the defi-
the Internal Revenue Code of 1986 [Title 26], the Social nitions applicable and the style of this title as outlined
Security Act [section 301 et seq. of Title 42, The Public in the preface to the report.
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