Collection of Employee Debts via Treasury Offset Date: Fri, 12 Feb 1999 09:22:09 -0500 To: "USGS Employees" From: Susan Smith Subject: Collection of Employee Debts via Treasury Offset (Supervisors: Please ensure that all employees without E-mail access receive a paper copy of the All Employee Message.) In Reply Refer To: Mail Stop 270 MEMORANDUM February 12, 1999 To: All U.S. Geological Survey Employees From: John J. Blickley /s/ John J. Blickley Acting Chief, Office of Financial Management Subject: Collection of Employee Debts via Treasury Offset The purpose of this memorandum is to remind U.S. Geological Survey (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 to another Federal agency. The Office of Financial Management (OFM) initially informed employees about the TOP through an E-mail message to the Division Administrative Officers dated April 3, 1998. The Debt Collection Improvement Act of 1996 (DCIA) authorized the Department of the Treasury (Treasury) to collect delinquent debts owed to Federal 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 is 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 processed by Treasury, with any remaining balance paid to the debtor. There have been several instances where USGS employees have had their travel advances and travel reimbursements offset against delinquent debts, including student loan debts owed to the Department of Education (DOE). In these instances, the employees received a letter from Treasury indicating that a payment from the USGS was offset against the employees' debts owed to DOE. In cases where travel advance payments are offset, the employee is still liable to the USGS for the amount of the advance. Employees should be aware that delinquent debts they owe to a Federal 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 of 18% (21% if Treasury refers the debt to a private collection contractor) to the total amount of the debt referred to Treasury. The amount referred to Treasury may also include interest, administrative costs, and penalties accrued by the USGS. Employees are also advised that Treasury is authorized to report delinquent debts to credit reporting bureaus. This action will have an adverse affect on an individual's credit rating. If there are questions regarding the TOP, please contact Bruce Wood on (703) 648-7665 or E-mail at Susan R. Smith 12201 Sunrise Valley Drive, MS 270 Reston, VA 20192 Phone: (703) 648-7601 Fax: (703) 648-4112