29 C.F.R. Subpart B—Administrative Offset
Title 29 - Labor
The PBGC will determine the feasibility of collection by administrative offset, whether to accept a repayment agreement in lieu of offset, and how to apply amounts collected by administrative offset on multiple debts as provided in the Federal Claims Collection Standards (4 CFR 102.3). (a) Feasibility. The PBGC will determine whether collection by administrative offset is feasible on a case-by-case basis in the exercise of sound discretion. In making such determinations, the PBGC will consider: (1) Whether administrative offset can be accomplished, both practically and legally; (2) Whether administrative offset is best suited to further and protect all governmental interests; (3) In appropriate circumstances, the debtor's financial condition; and (4) Whether offset would tend to interfere substantially with or defeat the purposes of the program authorizing the payments against which offset is contemplated. (b) Repayment agreements. The PBGC will exercise its discretion in determining whether to accept a repayment agreement in lieu of offset, balancing the Government's interest in collecting the debt against fairness to the debtor. If the debt is delinquent (within the meaning of 4 CFR 101.2(b)) and the debtor has not disputed its existence or amount, the PBGC will accept a repayment agreement in lieu of offset only if the debtor is able to establish that offset would result in undue financial hardship or would be against equity and good conscience. (c) Multiple debts. When the PBGC collects multiple debts by administrative offset, it will apply the recovered amounts to those debts in accordance with the best interests of the United States, as determined by the facts and circumstances of the particular case, paying special attention to applicable statutes of limitations. (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. (a) General. The PBGC may request that funds payable to its debtor by another agency be administratively offset to collect a debt owed to the PBGC by the debtor. A PBGC request for administrative offset against amounts due and payable from the Civil Service Retirement and Disability Fund will be made in accordance with 5 CFR part 831, subpart R (Agency Requests to OPM for Recovery of a Debt from the Civil Service Retirement and Disability Fund). (b) Certification. In requesting administrative offset, the Director of the Financial Operations Department (or a department official designated by the Director) will certify in writing to the agency holding funds of the debtor— (1) That the debtor owes the debt (including the amount) and that the PBGC has fully complied with the provisions of 4 CFR 102.3; and (2) In a request for administrative offset against amounts due and payable from the Civil Service Retirement and Disability Fund, that the PBGC has complied with applicable statutes and the regulations and procedures of the Office of Personnel Management. (a) General. As provided in the Federal Claims Collections Standards (4 CFR 102.3(d)), the PBGC generally will comply with requests from other agencies to initiate administrative offset to collect debts owed to the United States unless the requesting agency has not complied with the applicable provisions of the Federal Claims Collection Standards or the offset would be otherwise contrary to law. (b) Submission of requests. (1) Any agency may request that funds payable to its debtor by the PBGC be administratively offset to collect a debt owed to such agency by the debtor by submitting the certification described in paragraph (c) of this section. (2) All such requests should be directed to the Director, Financial Operations Department. See §4000.4 of this chapter for additional information on where to file. (c) Certification required. The PBGC will not initiate administrative offset in response to a request from another agency until it receives written certification from the requesting agency, signed by an appropriate agency official, that the debtor owes the debt (including the amount) and that the requesting agency has fully complied with the provisions of 4 CFR 102.3 (with a citation to the agency's own administrative offset regulations). [61 FR 34130, July 1, 1996, as amended at 68 FR 61359, Oct. 28, 2003]
Title 29: Labor
PART 4903—DEBT COLLECTION
Subpart B—Administrative Offset
§ 4903.21 Application of Federal Claims Collection Standards.
§ 4903.22 Administrative offset procedures.
§ 4903.23 PBGC requests for offset by other agencies.
§ 4903.24 Requests for offset from other agencies.
