Collection of Employee Debts via Treasury Offset Date: Fri, 03 Apr 1998 08:07:41 -0500 To: "E - All WRD Employees" From: "Alice A. Sabatini, Division Administrative Officer" Subject: Memo Regarding Collection of Employee Debts via Treasury Offset The following contains important information for all employees on the Treasury offset program. Date: Fri, 03 Apr 1998 07:53:52 -0500 To: "Carole Carter-Pfisterer Reston, VA" , "Alice A Sabatini, Administrative Officer, Reston, VA" , "MaryLou D Pectol Reston, VA" , "Joseph S Pillera Reston, VA" , "John R Caracciolo, Management Initiatives Officer, Reston, VA" , "Gayle A Sisler Reston, VA" From: Bruce Wood Subject: Memo Regarding Collection of Employee Debts via Treasury Offset Cc: "John J Blickley Reston, VA" , "Susan R Smith Reston, VA" In Reply Refer To: Mail Stop 270 April 3, 1998 Memorandum To: Division Administrative Officers From: Acting Chief, OFM //s// John J. Blickley Subject: Collection of Employee Debts via Treasury Offset The purpose of this memorandum is to advise USGS employees about the Department of the Treasury's Offset Program (TOP) and the affect this program will have on employees who owe delinquent debts owed to another Federal agency. The Debt Collection Improvement Act of 1996 (DCIA) authorized the Department of the Treasury to collect delinquent debts owed to government agencies. The DCIA authorized several methods in order to accomplish the collection of these debts. One of these methods is the collection of funds from debtors through administrative offset, whereby a delinquent debt referred to Treasury by a Federal agency could be collected from a payment due to the debtor from another Federal agency. In such instances, the debt would be paid to the agency which referred the debt from a payment issued by the government, with any remaining balance paid to the debtor. As an example, a current USGS employee who owes a delinquent student loan to the Department of Education (DOE) was referred to Treasury by DOE for collection action. Recently, the employee requested a $500 travel advance from the USGS. Treasury offset $495 of the travel advance payment against the debt owed to DOE, and the employee was left with a $5 advance. The employee received a letter from Treasury indicating that the payment from the USGS was offset against the employee's debt owed to DOE. Employees should be aware that debts they owe to a government agency are to be referred to Treasury for collection action, and that the debt may be offset against payments due to the employee. In addition, Treasury is authorized to add a collection fee (currently 18%) to the total amount referred to Treasury. The amount referred to Treasury may also include interest, administrative costs, and penalties charged by the agency referring the debt. ****************************** Bruce Wood Office of Financial Management phone: 703 648-7665 fax: 703 648-4112 ****************************** <<<<