---
kind: "range"
citation: "36 C.F.R. §§ 1011.10–1011.12"
title: "36"
from: "1011.10"
to: "1011.12"
count: 3
url: "https://uscodex.org/cfr/36/1011.10..1011.12"
---

# §1011.10. How will the Presidio Trust use administrative offset (offset of non-tax federal payments) to collect a debt?

- (a) **Centralized administrative offset through the Treasury Offset Program.**
  - (1) The Presidio Trust will refer any eligible debt over 120 days delinquent to the Treasury Offset Program for collection by centralized administrative offset. The Presidio Trust may refer any eligible debt less than 120 days delinquent to the Treasury Offset Program for offset.
  - (2) At least 60 days prior to referring a debt to the Treasury Offset Program, in accordance with [paragraph (a)(1)](#a-1) of this section, the Presidio Trust will send notice to the debtor in accordance with the requirements of [§ 1011.4](/cfr/36/1011.4.md) of this part. The Presidio Trust will certify to the FMS, in writing, that the debt is valid, delinquent, legally enforceable and that there are no legal bars to collection by offset. In addition, the Presidio Trust will certify its compliance with the due process requirements under [31 U.S.C. 3716(a)](/usc/31/3716.md?p=a) and with the requirements described in this part.
- (b) **Non-centralized administrative offset for a debt.**
  - (1) When centralized administrative offset through the Treasury Offset Program is not available or appropriate, the Presidio Trust may collect delinquent, legally enforceable debts through non-centralized administrative offset. In these cases, the Presidio Trust may offset a payment internally or make an offset request directly to a federal paying agency.
  - (2) At least 30 days prior to offsetting a payment internally or requesting a federal paying agency to offset a payment, the Presidio Trust will send notice to the debtor in accordance with the requirements of [§ 1011.4](/cfr/36/1011.4.md) of this part. When referring a debt for offset under this [paragraph (b)](#b), the Presidio Trust will certify, in writing, that the debt is valid, delinquent, legally enforceable and that there are no legal bars to collection by offset. In addition, the Presidio Trust will certify its compliance with the due process requirements under [31 U.S.C. 3716(a)](/usc/31/3716.md?p=a) and with these regulations concerning administrative offset.
- (c) **Administrative review.** The notice described in [§ 1011.4](/cfr/36/1011.4.md) of this part will explain to the debtor how to request an administrative review of the Presidio Trust determination that the debtor owes a debt and how to present evidence that the debt is not delinquent or legally enforceable. In addition to challenging the existence and amount of the debt, the debtor may seek a review of the terms of repayment. In most cases, the Presidio Trust will provide the debtor with a “paper hearing” based upon a review of the written record, including documentation provided by the debtor. The Presidio Trust will provide the debtor with a reasonable opportunity for an oral hearing when the debtor requests reconsideration of the debt and the Presidio Trust determines that the question of the indebtedness cannot be resolved by review of the documentary evidence, for example, when the validity of the debt turns on an issue of credibility or veracity. Unless otherwise required by law, an oral hearing under this section is not required to be a formal evidentiary hearing, although the Presidio Trust will document all significant matters presented at the hearing. The Presidio Trust may suspend collection through administrative offset and/or other collection actions pending the resolution of a debtor's dispute. The Presidio Trust may establish policies, guidelines and procedures concerning the administrative review process consistent with the FCCS and the regulations in this section.
- (d) **Procedures for expedited offset.** Under the circumstances described by the FCCS, the Presidio Trust may effect an offset against a payment to be made to the debtor prior to sending a notice to the debtor, as described in [§ 1011.4](/cfr/36/1011.4.md) of this part, or completing the procedures described in paragraph [(b)(2)](#b-2) and (c) of this section. The Presidio Trust will give the debtor notice and an opportunity for review as soon as practicable and promptly refund any money ultimately found not to have been owed to the Government.

# §1011.11. How will the Presidio Trust use tax refund offset to collect a debt?

- (a) **Tax refund offset.** In most cases, the FMS uses the Treasury Offset Program to collect debts by the offset of tax refunds and other federal payments. See [§ 1011.9(c)](/cfr/36/1011.9.md?p=c) of this part. If not already transferred to the FMS under [§ 1011.9](/cfr/36/1011.9.md) of this part, the Presidio Trust will refer to the Treasury Offset Program any delinquent, legally enforceable debt for collection by tax refund offset.
- (b) **Notice; certification.** At least 60 days prior to referring a debt to the Treasury Offset Program, the Presidio Trust will send notice to the debtor in accordance with the requirements of [§ 1011.4](/cfr/36/1011.4.md) of this part. The Presidio Trust will certify to the FMS's Treasury Offset Program, in writing, that the debt is delinquent and legally enforceable in the amount submitted and that the Presidio Trust has made reasonable efforts to obtain payment of the debt. In addition, the Presidio Trust will certify its compliance with all applicable due process and other requirements described in this part and other applicable law.
- (c) **Administrative review.** The notice described in [§ 1011.4](/cfr/36/1011.4.md) of this part will provide the debtor with at least 60 days prior to the initiation of tax refund offset to request an administrative review as described in [§ 1011.10(c)](/cfr/36/1011.10.md?p=c) of this part. The Presidio Trust may suspend collection through tax refund offset and/or other collection actions pending the resolution of the debtor's dispute.

# §1011.12. How will the Presidio Trust offset a Federal employee's salary to collect a debt?

- (a) **Federal salary offset.**
  - (1) **Salary offset is used to collect debts owed to the United States by Federal employees.** If a Presidio Trust employee owes a debt, the Presidio Trust may offset the employee's federal salary to collect the debt in the manner described in this section. For information on how a Federal agency other than the Presidio Trust may collect a debt from the salary of a Presidio Trust employee, see § [1011.21](/cfr/36/1011.21.md) and [1011.22](/cfr/36/1011.22.md), [subpart C](/cfr/36/subpartC.md), of this part.
  - (2) Nothing in this part requires the Presidio Trust to collect a debt in accordance with the provisions of this section if Federal law allows otherwise.
- (b) **Centralized salary offset through the Treasury Offset Program.** As described in [§ 1011.9(a)](/cfr/36/1011.9.md?p=a) of this part, the Presidio Trust will refer debts to the FMS for collection by administrative offset, including salary offset, through the Treasury Offset Program.
- (c) **Non-centralized salary offset for Treasury debts.** The Presidio Trust may collect delinquent debts through non-centralized salary offset. In these cases, the Presidio Trust may offset a payment internally or make a request directly to a paying agency to offset a salary payment to collect a delinquent debt owed by a Federal employee. At least 30 days prior to offsetting internally or requesting a Federal agency to offset a salary payment, the Presidio Trust will send notice to the debtor in accordance with the requirements of [§ 1011.4](/cfr/36/1011.4.md) of this part. When referring a debt for offset, the Presidio Trust will certify to the paying agency, in writing, that the debt is valid, delinquent and legally enforceable in the amount stated, and there are no legal bars to collection by salary offset. In addition, the Presidio Trust will certify that all due process and other prerequisites to salary offset have been met. See 5 U.S.C. [5514](/usc/5/5514.md), [31](/usc/5/31.md) U.S.C. 3716(a), and this section for a description of the process for salary offset.
- (d) **When prior notice not required.** The Presidio Trust is not required to provide prior notice to a Presidio Trust employee when the following adjustments are made:
  - (1) Any adjustment to pay arising out of a Presidio Trust employee's election of coverage or a change in coverage under a Federal benefits program requiring periodic deductions from pay, if the amount to be recovered was accumulated over four pay periods or fewer;
  - (2) A routine intra-agency adjustment of pay that is made to correct an overpayment of pay attributable to clerical or administrative errors or delays in processing pay documents, if the overpayment occurred within the four pay periods preceding the adjustment, and, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and point of contact for contesting such adjustment; or
  - (3) Any adjustment to collect a debt amounting to $50 or less, if, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and a point of contact for contesting such adjustment.
- (e) **Hearing procedures.**
  - (1) **Request for a hearing.** A Presidio Trust employee who has received a notice that a debt will be collected by means of salary offset may request a hearing concerning the existence or amount of the debt. The employee also may request a hearing concerning the amount proposed to be deducted from the employee's pay each pay period. The employee must send any request for hearing, in writing, to the office designated in the notice described in [§ 1011.4(a)(11)](/cfr/36/1011.4.md?p=a-11). The request must be received by the designated office on or before the 15th business day following the employee's receipt of the notice. The employee must sign the request and specify whether an oral or paper hearing is requested. If an oral hearing is requested, the employee must explain why the matter cannot be resolved by review of the documentary evidence alone.
  - (2) **Failure to submit timely request for hearing.** If the employee fails to submit a request for hearing within the time period described in [paragraph (e)(1)](#e-1) of this section, the employee will have waived the right to a hearing, and salary offset may be initiated. However, the Presidio Trust may accept a late request for hearing if the employee can show that the late request was the result of circumstances beyond the employee's control or because of a failure to receive actual notice of the filing deadline.
  - (3) **Hearing official.** The Presidio Trust hearing must be conducted by a hearing official who is not under the supervision or control of the Board of Directors of the Presidio Trust. The hearing official need not be an employee of the Federal Government.
  - (4) **Notice of hearing.** After the employee requests a hearing, a designated hearing official will inform the employee of the form of the hearing to be provided. For oral hearings, the notice will set forth the date, time and location of the hearing. For paper hearings, the notice will notify the employee of the date by which the employee should submit written arguments to the designated hearing official. The hearing official will give the employee reasonable time to submit documentation in support of the employee's position. The hearing official will schedule a new hearing date if requested by both parties. The hearing official will give both parties reasonable notice of the time and place of a rescheduled hearing.
  - (5) **Oral hearing.** The hearing official will conduct an oral hearing if the official determines that the matter cannot be resolved by review of documentary evidence alone (for example, when an issue of credibility or veracity is involved). The hearing official will determine the procedure for the oral hearing, determining, for example, the hearing length.
  - (6) **Paper hearing.** If the hearing official determines that an oral hearing is not necessary, the official will make the determination based upon a review of the available written record, including any documentation submitted by the employee in support of the employee's position.
  - (7) **Date of decision.** The hearing official will issue a written opinion setting forth the decision, based upon documentary evidence and information developed at the hearing, as soon as practicable after the hearing.
  - (8) **Final agency action.** The hearing official's decision will be final.
- (f) **Salary offset process.**
  - (1) **Determination of disposable pay.** The Presidio Trust payroll office will determine the amount of the employee's disposable pay (as defined in [§ 1011.1](/cfr/36/1011.1.md) of this part) and will implement salary offset.
  - (2) **When salary offset begins.** Deductions will begin within three official pay periods.
  - (3) **Amount of salary offset.** The amount to be offset from each salary payment will be up to 15% of the employee's disposable pay, as follows:
    - (i) If the amount of the debt is equal to or less than 15% of the disposable pay, such debt generally will be collected in one lump sum payment;
    - (ii) Installment deductions will be made over a period of no greater than the anticipated period of employment. An installment deduction will not exceed 15% of the disposable pay from which the deduction is made unless the employee has agreed in writing to the deduction of a greater amount.
  - (4) **Final salary payment.** After the employee's employment with the Presidio Trust ends, the Presidio Trust may make a lump sum deduction exceeding 15% of disposable pay from any final salary or other payments in order to satisfy a debt.