---
kind: "section"
citation: "45 C.F.R. § 1179.8"
title: "45"
number: "1179.8"
heading: "Procedures for salary offset."
url: "https://uscodex.org/cfr/45/1179.8"
---

# §1179.8. Procedures for salary offset.

- (a) Deductions to liquidate an employee's debt will be by the method and in the amount stated in the Chairperson's notice of intention to offset as provided in [§ 1179.4](/cfr/45/1179.4.md). Debts will be collected in one lump sum where possible. If the employee is financially unable to pay in one lump sum, collection must be made in installments.
- (b) Debts will be collected by deduction at officially established pay intervals from an employee's current pay account unless alternative arrangements for repayment are made.
- (c) Installment deductions will be made over a period not greater than the anticipated period of employment. The size of installment deductions must bear a reasonable relationship to the size of the debt and the employee's ability to pay. The deduction for the pay intervals for any period must not exceed 15% of disposable pay unless the employee has agreed in writing to a deduction of a greater amount.
- (d) Unliquidated debts may be offset against any financial payment due to a separated employee including but not limited to final salary payment or leave in accordance with [31 U.S.C. 3716](/usc/31/3716.md).

## Notes

### Authority

Authority: 5 U.S.C. 5514, E.O. 11809 (redesignated E.O. 12107), and 5 CFR part 550, subpart K.

### Source

Source: 52 FR 28472, July 30, 1987, unless otherwise noted.