---
kind: "section"
citation: "45 C.F.R. § 607.8"
title: "45"
number: "607.8"
heading: "Procedures for salary offset."
url: "https://uscodex.org/cfr/45/607.8"
---

# §607.8. Procedures for salary offset.

- (a) Deductions to liquidate an employee's debt will be by the method and in the amount stated in the Chief Financial Officer's notice of intention to offset as provided in [§ 607.4](/cfr/45/607.4.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 or leave payment in accordance with [31 U.S.C. 3716](/usc/31/3716.md).

## Notes

### Authority

Authority: 5 U.S.C. 5514; E.O. 12107, 3 CFR, 1978 Comp., p. 264; 5 CFR part 550, subpart K.

### Source

Source: 58 FR 68769, Dec. 29, 1993, unless otherwise noted.