Sec. 1.1934  Recovery when paying agency is not creditor agency.

    (a) Responsibilities of creditor agency. Upon completion of the 
procedures established under 5 U.S.C. 5514, the creditor agency must do 
the following:
    (1) The creditor agency must certify, in writing, that the employee 
owes the debt, the amount and basis of the debt, the date on which 
payment(s) is due, the date of the Government's right to collect the 
debt first accrued, and that the creditor agency's regulations 
implementing 5 U.S.C. 5514 have been approved by OPM.
    (2) If the collection must be made in installments, the creditor 
agency also must advise the paying agency of the number of installments 
to be collected, the amount of each installment, and the commencement 
date of the first installment (if a date other than the next officially 
established pay period is required).
    (3) Unless the employee has consented to the salary offset in 
writing or signed a statement acknowledging receipt of the required 
procedures, and the written consent or statement is forwarded to the 
paying agency, the

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creditor agency also must advise the paying agency of the action(s) 
taken under 5 U.S.C. 5514(b) and give the date(s) the action(s) was 
taken.
    (4) Except as otherwise provided in this paragraph, the creditor 
agency must submit a debt claim containing the information specified in 
paragraphs (a) (1) through (3) of this section and an installment 
agreement (or other instruction on the payment schedule), if applicable 
to the employee's paying agency.
    (5) If the employee is in the process of separating, the creditor 
agency must submit its claim to the employee's paying agency for 
collection pursuant to Sec. 1.1930. The paying agency must certify the 
total amount of its collection and provide copies to the creditor agency 
and the employee as stated in paragraph (c)(1) of this section. If the 
paying agency is aware that the employee is entitled to payments from 
the Civil Service Retirement and Disability Fund, or other similar 
payments, it must provide written notification to the agency responsible 
for making such payments that the debtor owes a debt (including the 
amount) and that there has been full compliance with the provisions of 
this section. However, the creditor agency must submit a properly 
certified claim to the agency responsible for making such payments 
before collection can be made.
    (6) If the employee is already separated and all payments from his 
or her former paying agency have been paid, the creditor agency may 
request, unless otherwise prohibited, that money due and payable to the 
employee from the Civil Service Retirement and Disability Fund (5 CFR 
831.1801 et seq.), or other similar funds, be administratively offset to 
collect the debt. (31 U.S.C. 3716 and 4 CFR 102.4)
    (b) Responsibilities of paying agency--
    (1) Complete claim. When the paying agency receives a properly 
certified debt claim from a creditor agency, deductions should be 
scheduled to begin prospectively at the next officials established pay 
interval. The employee must receive written notice that the paying 
agency has received a certified debt claim from the creditor agency 
(including the amount) and written notice of the date deductions from 
salary will commence and of the amount of such deductions.
    (2) Incomplete claim. When the paying agency receives an incomplete 
debt claim from a creditor agency, the paying agency must return the 
debt claim with a notice that procedures under 5 U.S.C. 5514 and this 
subpart must be provided, and a properly certified debt claim received, 
before action will be taken to collect from the employee's current pay 
account.
    (3) Review. The paying agency is not required or authorized to 
review the merits of the creditor agency's determination with respect to 
the amount or validity of the debt certified by the creditor agency.
    (c) Employees who transfer from one paying agency to another.
    (1) If, after the creditor agency has submitted the debt claim to 
the employee's paying agency, the employee transfers to a position 
served by a different paying agency before the debt is collected in 
full, the paying agency from which the employee separates must certify 
the total amount of the collection made on the debt. One copy of the 
certification must be furnished to the employee, another to the creditor 
agency along with notice of employee's transfer. However, the creditor 
agency must submit a properly certified claim to the new paying agency 
before collection can be resumed.
    (2) When an employee transfers to another paying agency, the 
creditor agency need not repeat the due process procedures described by 
5 U.S.C. 5514 and this subpart to resume the collection. However, the 
creditor agency is responsible for reviewing the debt upon receiving the 
former paying agency's notice of the employee's transfer to make sure 
the collection is resumed by the new paying agency.