---
kind: "range"
citation: "31 C.F.R. §§ 29.501–29.506"
title: "31"
from: "29.501"
to: "29.506"
count: 6
url: "https://uscodex.org/cfr/31/29.501..29.506"
---

# §29.501. Purpose; incorporation by reference; scope.

- (a) **This subpart regulates—**
  - (1) The recovery of overpayments of Federal Benefit Payments;
  - (2) The standards for waiver of recovery of overpayments of Federal Benefit Payments; and
  - (3) **The use of Federal Benefit Payments to recover certain other debts due the United States.**
- (b) The regulations of this subpart incorporate by this reference all provisions of the Federal Claims Collection Standards (FCCS) ([parts 900-904 of Title 31, Code of Federal Regulations](/cfr/31/part900-904.md)), and supplement those regulations by the prescription of procedures and directives necessary and appropriate for the operation and administration of the Retirement Funds. To the extent they are not inconsistent with the regulations contained in this subpart, the regulations in [part 5 of title 31, Code of Federal Regulations](/cfr/31/part5.md), also apply to the collection of debts under this subpart.
- (c)
  - (1) **Debts based on fraud, misrepresentation, or the presentation of a false claim.** This subpart does not apply to any overpayments of Federal Benefit Payments which arose, in whole or in part, due to fraud, misrepresentation, or the presentation of a false claim by the debtor or any party having an interest in the claim. Such debts should be referred by the Benefits Administrator immediately to the U.S. Justice Department for action pursuant to [31 CFR 900.3](/cfr/31/900.3.md).
  - (2) **Tax debts.** This subpart does not apply to tax debts.
- (d)
  - (1) [Sections 29.501 through 29.506](/cfr/31/29.501..29.506.md) state the rules of general applicability to this subpart.
  - (2) [Sections 29.511 through 29.520](/cfr/31/29.511..29.520.md) prescribe procedures to be followed by the Benefits Administrator which are consistent with the FCCS in the collection of debts owed to the Retirement Funds.
  - (3) [Sections 29.521 through 29.526](/cfr/31/29.521..29.526.md) prescribe the standards that the Department will apply in decisions to waive recoupment or recovery of overpayments from the Retirement Funds under sections [11021(3)](/cfr/31/11021.md?p=3) and [11251(c)(2)(B)](/cfr/31/11251.md?p=c-2-B) of the Act.
- (e) This part does not apply to debt collection claims asserted and requests for waivers of collection initiated before October 1, 1997. Such debt collection claims must be pursued by the District of Columbia and such requests for waivers of collection must be pursued with the District of Columbia.

# §29.502. Definitions.


For purposes of this subpart—

Additional charges means interest, penalties, and/or administrative costs owed on a debt.

Administrative offset, as defined in [31 U.S.C. 3701(a)(1)](/usc/31/3701.md?p=a-1), means withholding funds payable by the United States to, or held by the United States for, a person to satisfy a debt the person owes the United States.

Agency means:

- (1) An Executive agency as defined in [section 105](/usc/5/105.md) of title 5, United States Code, including the U.S. Postal Service and the U.S. Postal Rate Commission;
- (2) A military department, as defined in [section 102](/usc/5/102.md) of title 5, United States Code;
- (3) An agency or court in the judicial branch, including a court as defined in [section 610](/usc/28/610.md) of title 28, United States Code, the District Court for the Northern Mariana Islands, and the Judicial Panel on Multidistrict Litigation;
- (4) An agency of the legislative branch, including the U.S. Senate and the U.S. House of Representatives; and
- (5) **Other independent establishments that are entities of the Federal Government.** Annuitant means a retired participant, former spouse, spouse, widow(er), child or other beneficiary receiving recurring Federal Benefit Payments.

  Annuity means the monthly benefit (including a retirement salary under the Judges Plan) of indefinite duration payable to an annuitant.

  Anticipated expenses means expenditures which are expected to occur and for which the debtor can provide documentation of the estimated cost.

  Beneficiary means an individual designated by a participant, or by the terms of the Judges Plan, Police Officers and Firefighters Plan, or Teachers Plan, who is or may become entitled to a benefit under those plans.

  Change of position for the worse means an individual would be left in a worse financial position after recovery of the overpayment than prior to the receipt of the overpayment because the individual reasonably relied on the amount of the overpayment to his or her detriment. For example, an individual has “changed position for the worse” if he or she made expenditures or assumed new liabilities that he or she would not have otherwise done, and he or she is unable to withdraw from the commitment without incurring significant financial loss.

  Compromise means accepting less than payment in full in satisfaction of a debt.

  Consent means the debtor has agreed in writing to administrative offset of one or more Federal Benefit Payments after receiving notice of the available rights under [31 U.S.C. 3716](/usc/31/3716.md) and this subpart; to Federal salary offset after receiving notice of the available rights under 5 U.S.C. [5514](/usc/5/5514.md) and [31](/usc/5/31.md) CFR [part 5](/cfr/31/part5.md); and to judgment offset under section 124 of Public Law 97-276, 96 Stat. 1195-1196.

  Credit bureau has the same meaning as the definition of “consumer reporting agency” provided in [31 U.S.C. 3701(a)(3)](/usc/31/3701.md?p=a-3).

  Creditor agency means the agency to which a debt is owed.

  Debt has the same meaning as the definition of “debt” provided in [31 U.S.C. 3701(b)(1)](/usc/31/3701.md?p=b-1), and includes an overpayment of Federal Benefit Payments.

  Debtor means a person who owes a debt or from whom a debt is to be recovered, including an annuitant.

  Delinquent means delinquent as defined in [31 CFR 900.2(b)](/cfr/31/900.2.md?p=b).

  Department means the Secretary of the Treasury or a designee authorized to exercise the Secretary's authority with respect to Federal Benefit Payments under the Act.

  FCCS means the Federal Claims Collection Standards ([parts 900-904 of Title 31, Code of Federal Regulations](/cfr/31/part900-904.md)).

  Liquid asset means cash or other property readily convertible into cash with little or no loss of value.

  Lump-sum credit means:

- (1) Under the Judges Plan, the Police Officers and Firefighters Plan, and the Teachers Plan, the unrefunded amount consisting of—
  - (i) Retirement contributions from the basic salary of a participant;
  - (ii) Amounts deposited covering earlier creditable service; and
  - (iii) Such interest as authorized by statute to be included in the payment of refunds of retirement contributions; and
- (2) Under the Judges Plan, “lump-sum credit for survivor annuity” is defined in [section 11-1561(10)](/cfr/31/11-1561.md?p=10) of the D.C. Code.

  Offset means to withhold the amount of a debt, or a portion of that amount, from one or more payments due the debtor. Offset also means the amount withheld in this manner.

  Ordinary and necessary living expenses means such expenses as rent, mortgage payments, utilities, maintenance, food (including expenses for dining out), clothing, insurance (life, health, and accident), taxes, installment payments, medical expenses, reasonable expenses for recreation and vacations, expenses for support of a dependent when the debtor holds primary or joint legal responsibility for such support, and other miscellaneous expenses that the debtor can establish as being ordinary and necessary.

  Overpayment or overpayment debt means a payment of one or more Federal Benefit Payments to an individual in the absence of entitlement or in excess of the amount to which an individual is properly entitled.

  Participant means an individual who is or may become eligible to receive a benefit under the Police Officers and Firefighters Plan or Teachers Plan based on credit for service accrued as of June 30, 1997, or under the Judges Plan, or whose beneficiaries may be eligible to receive any such benefit.

  Refund means the payment of a lump-sum credit to an individual who meets all requirements for payment and files an application for it.

  Relinquish a valuable right means the individual has relinquished a valuable privilege, claim, entitlement, or benefit having monetary worth because of the overpayment or because of notice that such a payment would be made.

  Repayment schedule means the amount of each payment and the number of payments to be made to liquidate the debt as determined by the Department or the Benefits Administrator.

  Salary offset means any offset authorized by 5 U.S.C. [5514](/usc/5/5514.md) and [31](/usc/5/31.md) U.S.C. 3716.

  Substantially all, as used in [§ 29.524](/cfr/31/29.524.md), means that a debtor's income is less than or equal to his or her ordinary and necessary expenses plus a reasonable monthly allowance for unexpected or emergency expenses and does not allow for the deduction of a reasonable monthly installment payment to recover the debt.

  Voluntary repayment agreement means an agreement wherein the debtor makes installment payments to repay an overpayment debt in accordance with a repayment schedule agreed to by the Benefits Administrator or the Department.

  Waiver means a decision not to recover all or part of an overpayment debt owed to the Retirement Funds under authority of sections [11021(3)](/cfr/31/11021.md?p=3) or [11251(c)(2)(B)](/cfr/31/11251.md?p=c-2-B) of the Act.


# §29.503. Prohibition against collection of debts.

- (a) Debts may be collected from Federal Benefit Payments only to the extent expressly authorized by Federal debt collection statutes and any other applicable Federal law.
- (b) When collection of a debt from Federal Benefit Payments is authorized under [paragraph (a)](#a) of this section, the collection will be made in accordance with this subpart and other applicable federal law.

# §29.504. Status of debts.


A payment of a Federal Benefit Payment to a debtor because of an error on the part of the Department or Benefits Administrator, or the failure of the creditor agency to properly and/or timely submit a debt claim, does not erase the debt or affect the validity of the claim by the creditor agency.


# §29.505. Compromise of debts; termination and suspension of collection actions.


The procedures for compromise of a claim for an overpayment or the termination or suspension of a collection action seeking to recover an overpayment, other than waiver of an overpayment under [§§ 29.521 through 29.526](/cfr/31/29.521..29.526.md), are controlled exclusively by the FCCS and [31 CFR part 5](/cfr/31/part5.md).


# §29.506. Recovery of other debts owed to the United States.

- (a) **Procedures for Creditor Agencies.** Agencies seeking to recover a debt by offset of Federal Benefit Payments payable to the debtor must comply with the offset procedures set forth in [31 U.S.C. 3716](/usc/31/3716.md) and the FCCS. A creditor agency may seek to collect a debt through offset of Federal Benefit Payments pursuant to the Department's procedures for administrative offset set forth in [31 CFR part 5](/cfr/31/part5.md).
- (b) **Offset by the Benefits Administrator.** As required by [31 U.S.C. 3716(c)](/usc/31/3716.md?p=c), the Benefits Administrator must compare payment records of the Retirement Funds with records of debts submitted to the Financial Management Service for collection by administrative offset, and must offset payments to satisfy, in whole or in part, debts owed by any annuitant.