[Federal Register Volume 79, Number 152 (Thursday, August 7, 2014)]
[Rules and Regulations]
[Pages 46183-46184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18627]
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POSTAL SERVICE
39 CFR Part 492
Collection of Delinquent Non-Tax Debts by Administrative Wage
Garnishment
AGENCY: Postal Service.
ACTION: Final rule.
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SUMMARY: The United States Postal Service (Postal Service) is adding a
provision to its regulations to implement the administrative wage
garnishment (AWG) provisions of the Debt Collection Improvement Act of
1996 (DCIA), allowing the United States Treasury Bureau of the Fiscal
Service (BFS) to collect debts owed to the Postal Service, that the
Postal Service refers to BFS for collection, by AWG.
DATES: Effective August 7, 2014.
FOR FURTHER INFORMATION CONTACT: Ruth Stevenson at (202)-268-6724.
SUPPLEMENTARY INFORMATION: After providing debtors with the requisite
opportunity for notice and review, the Postal Service currently may
refer non-tax delinquent debts to BFS, formerly known as the Financial
Management Service (FMS), for centralized collection and/or offset.
Among other potential collection tools, BFS may utilize AWG to collect
delinquent debts referred to it by federal agencies. AWG allows a
federal entity to enforce collection of a debt by garnishing wages the
debtor receives from a non-federal employer after affording the debtor
with notice and certain administrative proceedings, including the right
to a hearing.
Provisions of the DCIA, codified at 31 U.S.C. 3720D, authorize
federal agencies to collect non-tax debt owed to the United States by
AWG. The United States Department of the Treasury (Treasury) has also
issued an implementing regulation at 31 CFR 285.11. However, before BFS
may utilize AWG to collect debts that the Postal Service refers to it,
the Postal Service must first implement regulations authorizing the
collection of non-tax delinquent debt by AWG. The Postal Service is
accordingly adding new part 492, containing Sec. 492.1, to title 39 of
the Code of Federal Regulations in order to authorize collection of
Postal debts by AWG.
This new regulation provides that the Treasury regulation, 31 CFR
285.11, shall apply to AWG proceedings conducted by, or on behalf of,
the Postal Service. Section 285.11 includes procedural protections,
including notice requirements and hearing procedures, to allow
individuals to contest the existence or amount of the debt and/or to
assert that collection by garnishment would present an undue hardship
prior to collection by AWG. BFS will pursue AWG on behalf of the Postal
Service as part of its normal debt collection process. This includes
issuing notices to debtors and garnishment orders to employers, as well
as conducting required administrative hearings on behalf of the Postal
Service, in accordance with the procedures contained in 31 CFR 285.11.
AWG, which involves the garnishment of wages a debtor receives from
a non-federal employer, is a separate procedure from administrative
salary offsets taken from current federal employees' salaries
(including Postal employees' salaries) in order to satisfy a debt owed
to the United States. See 5 U.S.C. 5514; 39 CFR part 961. It is also a
distinct procedure from the garnishment of current Postal Service
employee and Postal Service Rate employee salaries, as detailed in 39
CFR part 491. Accordingly, the procedures contained in these provisions
are not affected by this rule. In addition, the provisions pertaining
to administrative offset contained in 39 CFR part 966 are not affected
by this rule. As noted, the Postal Service must afford individuals with
notice and an opportunity for review prior to referring a debt to the
Treasury for collection and/or administrative offset, in accordance
with ELM 470-480 and/or 39 CFR part 966, if applicable. Treasury may
then determine to pursue collection of the debt by AWG, after providing
the debtor with any additional process or procedures required by 31 CFR
285.11.
The Postal Service published the proposed version of this rule on
April 24, 2014 (79 FR 22786-87). The Postal Service received no
comments. This final version of the rule is unchanged with the
exception of a corrected designation of the BFS in new Sec. 492.1(b).
List of Subjects in 39 CFR Part 492
Administrative practice and procedure, Claims, Wages.
For the reasons stated in the preamble, the Postal Service adds 39
CFR part 492 as set forth below:
PART 492--ADMINISTRATIVE WAGE GARNISHMENT FROM NON-POSTAL SOURCES
Sec.
492.1 Collection of delinquent non-tax debts by administrative wage
garnishment.
Authority: 31 U.S.C. 3720D; 39 U.S.C. 204, 401, 2601; 31 CFR
285.11.
Sec. 492.1 Collection of delinquent non-tax debts by administrative
wage garnishment.
(a) This section provides procedures for the Postal Service to
collect money from a debtor's disposable pay by means of administrative
wage garnishment, in accordance with 31 U.S.C. 3720D and 31 CFR 285.11,
to satisfy delinquent nontax debt owed to the United States.
(b) The Postal Service authorizes the U. S. Department of the
Treasury Bureau of the Fiscal Service or its successor entity to
collect debts by administrative wage garnishment, and conduct
administrative wage garnishment hearings, on behalf of the Postal
Service in accordance with the requirements of 31 U.S.C. 3720D and the
procedures contained in 31 CFR 285.11.
(c) The Postal Service adopts the provisions of 31 CFR 285.11 in
their entirety. The provisions of 31 CFR 285.11 should therefore be
read as though modified to effectuate the application of that
regulation to administrative wage garnishment
[[Page 46184]]
proceedings conducted by, or on behalf of, the U.S. Postal Service.
Stanley F. Mires,
Attorney, Federal Requirements.
[FR Doc. 2014-18627 Filed 8-6-14; 8:45 am]
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