29 C.F.R. § 4903.22 Administrative offset procedures.
Title 29 - Labor
(a) General. Except as otherwise required by law or as provided in paragraph (e) of this section, the PBGC will not effect administrative offset against a payment to be made to a debtor prior to the completion of the procedures specified in paragraphs (b) and (c) of this section. However, the PBGC will not duplicate any notice or other procedural protection it previously provided in connection with the same debt under some other statutory or regulatory authority, such as part 4003 of this chapter. (b) Notice. The PBGC will provide written notice informing the debtor of the following: (1) The nature and amount of the debt, and the PBGC's intention to collect by offset; (2) That the debtor may inspect and copy PBGC records pertaining to the debt in accordance with part 4901 or part 4902 of this chapter, as applicable (access under the Freedom of Information Act (5 U.S.C. 552) or the Privacy Act (5 U.S.C. 552a), respectively); (3) How and from whom the debtor may obtain administrative review of a determination of indebtedness; (4) The facts and circumstances that the PBGC will consider in determining whether to accept a repayment agreement in lieu of offset; and (5) If the PBGC has not previously demanded payment of the debt, the date by which payment must be made to avoid further collection action. (c) Administrative review. (1) A debtor may obtain review within the PBGC of a determination of indebtedness by submitting a written request for review, designated as such, to the PBGC official specified in the notice of indebtedness. Unless another regulation in this chapter specifies a different period of time, such a request must be submitted within 30 days after the date of a PBGC notice under paragraph (b) of this section. (2) A request for review must: (i) State the ground(s) on which the debtor disputes the debt; and (ii) Reference all pertinent information already in the possession of the PBGC and include any additional information believed to be relevant. (3) The PBGC will review a determination of indebtedness, when requested to do so in a timely manner. The PBGC will issue a written decision, based on the written record, and will notify the debtor of its decision. (i) The review will be conducted by an official of at least the same level of authority as the person who made the determination of indebtedness. (ii) The notice of the PBGC's decision on review will include a brief statement of the reason(s) why the determination of indebtedness has or has not been changed. (4) Upon receipt of a request for administrative review, the PBGC may, in its discretion, temporarily suspend transactions in any of the debtor's accounts maintained by the PBGC. If the PBGC resolves the dispute in the debtor's favor, it will lift the suspension immediately. (d) Repayment agreement in lieu of offset. (1) The PBGC will not consider entering a repayment agreement in lieu of offset unless a debtor submits a copy of the debtor's most recent audited (or if not available, unaudited) financial statement (with balance sheets, income statements, and statements of changes in financial position), to the extent such documents have been prepared, and other information regarding the debtor's financial condition (e.g., the types of information on assets, liabilities, earnings, and other factors specified in paragraphs (b)(3) through (b)(7) of §4062.6 of this chapter). (2) The PBGC may require appropriate security as a condition of accepting a repayment agreement in lieu of offset. (e) Exception. (1) The PBGC may effect administrative offset against a payment to be made to the debtor prior to completing the procedures specified in paragraphs (b) and (c) of this section if: (i) Failure to take the offset would substantially prejudice the government's ability to collect the debt; and (ii) The time before the payment is to be made does not reasonably permit the completion of those procedures. (2) The PBGC has determined that a case in which it applies the special rule in §4068.3(c) of this chapter meets the criteria in paragraph (e)(1) of this section. (3) If the PBGC effects administrative offset against a payment to be made to a debtor prior to completing the procedures specified in paragraphs (b) and (c) of this section, the PBGC— (i) Will promptly complete those procedures; and (ii) Will promptly refund any amounts recovered by offset but later found not to be owed to the Government.
Title 29: Labor
PART 4903—DEBT COLLECTION
Subpart B—Administrative Offset
§ 4903.22 Administrative offset procedures.
