CSRS Debt Collection FERS i 

Chapter 4

Table of Contents 

Part 4A1 General Information 

Section 4A1.1-1 Overview ......................................... 1

A. Introduction ............................................... 1

B. Topics Covered ............................................ 1

C. Organization of Chapter ....................................... 1

D. Statement of Authority ........................................ 1

Section 4A1.1-2 Definitions ........................................ 2

A. Administrative Offset ......................................... 2

B. Agency .................................................. 2

C. Creditor Agency ............................................ 2

D. Debt Claim ............................................... 2

E. Debtor .................................................. 2

F. FCCS ................................................... 2

G. Fraud Claim ............................................... 2

H. Net Annuity ............................................... 2

I. Offset ................................................... 3

J. Paying Agency ............................................. 3

K. Waiver .................................................. 3

Part 4A2 Agency Requests to OPM for Recovery of a Debt From the Retirement 

Fund 

Subpart 4A2.1 General 

Section 4A2.1-1 General .......................................... 4

A. Purpose .................................................. 4

B. Limitation on Collection ....................................... 4

C. Limitations on OPM Review .................................... 4

D. Conditions for Requesting an Offset ............................... 5

E. Standard Form (SF) 2805 ...................................... 5

Subpart 4A2.2 Creditor Agency Procedures for Non-Fraud Claims 

Section 4A2.2-1 Where to Submit the Debt Claim, Judgment, or Notice of Debt .... 6

A. Creditor Agencies that Are Not Debtor's Paying Agency .................. 6

B. Creditor Agencies that Are Debtor's Paying Agency ..................... 6

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Chapter 4

Section 4A2.2-2 Procedures for Submitting a Debt Claim, Judgment, or Notice of

Debt to OPM .............................................. 7

A. Debt Claims for Which the Agency Has a Court Judgment ................. 7

B. Debt Claims Previously Processed Under

5 U.S.C. 5514 ........................................ 7

C. Debt Claims Not Being Processed as a Judgment Offset, a Continuation of a 

Previously Established Salary Offset, or a Claim Excepted

by Paragraph D ....................................... 7

D. Debt Claims Excepted from Procedures Described in Paragraph C ............ 8

E. General Certification Requirements for Claims Against Retirement Benefits ...... 8

F. Notice of Debt in Lieu of SF 2805 ................................ 9

Section 4A2.2-3 Procedures for Recovering Health Benefits Premiums ........... 11

A. General .................................................. 11

Section 4A2.2-4 Time Limits for Sending Records and Debt Claims to OPM ....... 12

A. Time Limits for Submitting Debt Claims ............................ 12

B. Time Limit for Submitting Retirement Records to OPM .................. 12

Subpart 4A2.3 OPM Processing for Non-Fraud Claims 

Section 4A2.3-1 Refunds--Incomplete Debt Claims ........................ 13

A. General .................................................. 13

B. Time Limits for Filing Completed Debt Claim ........................ 13

C. OPM Action on Refund Application ............................... 13

Section 4A2.3-2 Refunds--Complete Debt Claims ......................... 14

A. If OPM Receives Application from Debtor Prior to or at Same Time as Agency's

Claim ................................................... 14

B. If OPM Has Not Received Application from Debtor When the Agency's Debt 

Claim is Received ........................................... 14

C. Future Recovery ............................................ 14

Section 4A2.3-3 Annuities--Incomplete Debt Claims ....................... 16

A. General .................................................. 16

Section 4A2.3-4 Annuities--Complete Debt Claims ........................ 17

A. General .................................................. 17

B. Claims Held for Future Recovery ................................. 17

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Chapter 4

Subpart 4A2.4 Installment Withholdings 

Section 4A2.4-1 Installment Withholdings .............................. 19

A. General .................................................. 19

B. Rule .................................................... 19

C. Limitation on Installment Withholdings ............................. 19

Subpart 4A2.5 Special Processing for Fraud Claims 

Section 4A2.5-1 Special Processing for Fraud Claims ...................... 20

A. General .................................................. 20

B. Agency Processing .......................................... 20

C. Department of Justice Processing ................................. 20

D. Agency Processing of a Claim Returned by the Department of Justice .......... 21

E. OPM Processing Against Refunds ................................. 21

F. OPM Processing Against Annuities ................................ 22

G. OPM Collection and Payment of the Debt ............................ 22

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 CSRS Debt Collection 

Chapter 4 

FERS 1 

Part 4A1 General Information 

Section 4A1.1-1 Overview 

A. Introduction This chapter describes the procedures to be followed by a Federal agency 

when it requests the Office of Personnel Management (OPM) to recover a 

debt owed to the United States by administrative or judgment offset against 

money due and payable from the debtor from the Civil Service Retirement 

and Disability Fund (the Fund). It also describes the procedures that OPM 

must follow to make these administrative offsets. 

B. Topics Covered This chapter covers:

• Creditor agency procedures when requesting OPM to recover non-fraud 

debt claims; 

• OPM processing of incomplete and complete debt claims involving 

refunds and annuities; and 

• Special processing procedures for fraud claims. 

C. Organization of This chapter has two parts.

Chapter

Part Name of Part Page 

4A1 General Information 1 

4A2 Agency Requests to OPM for 

Recovery of a Debt From the 

Retirement Fund 

4 

D. Statement of This chapter and its contents are based on the laws and regulations cited

Authority below.

• United States Code: 31 U.S.C. 3716, 5 U.S.C. 5514, 5 U.S.C. 8347, 

5 U.S.C. 8461 and Section 124 of P.L. 97-276, 96 Stat. 1195-1196 

• Code of Federal Regulations: 5 CFR Part 831, Subparts M and R; 

5 CFR Part 845 

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Chapter 4 

Section 4A1.1-2 Definitions

A. Administrative "Administrative offset" means withholding money payable from the Fund to 

Offset satisfy a debt to the United States as authorized under the provisions of 31 

U.S.C. 3716.

B. Agency "Agency" means:

1. An Executive agency as defined in 5 U.S.C. 105, including the U.S. 

Postal Service and the U.S. Postal Rate Commission; 

2. A military department, as defined in 5 U.S.C. 102; 

3. An agency or court in the judicial branch, including a court as defined 

in the 28 U.S.C. 610, 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. 

C. Creditor Agency "Creditor agency" means the agency to which the debt is owed.

D. Debt Claim "Debt claim" means an agency request for recovery of debt in a form 

approved by OPM. 

E. Debtor "Debtor" means a person who owes a debt, including an employee, former 

employee, Member, former member, or the survivor of one of these 

individuals. 

F. FCCS "FCCS" means the Federal Claims Collection Standards (Chapter II of Title 

4, Code of Federal Regulations). 

G. Fraud Claim "Fraud claim" means any debt designated by the Attorney General or 

designee as involving an indication of fraud, the presentation of a false 

claim, or misrepresentation on the part of any other party having an interest 

in the claim.

H. Net Annuity "Net annuity" means annuity after excluding amounts required by law to be 

deducted. For example, Federal income tax is excluded up to the maximum 

amount that the individual is entitled to for all dependents.

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Chapter 4 

Section 4A1.1-2 Definitions (Cont.) 

H. Net Annuity Other examples of exclusions are group health insurance premiums,

(Cont.) including amounts deducted for Medicare, and group life insurance

premiums.

I. Offset "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. 

J. Paying Agency "Paying agency" means the agency that employs the debtor and/or 

authorizes the disbursement of his or her current pay or benefits.

K. Waiver "Waiver" is a decision by OPM not to recover a debt owed to the 

retirement fund as authorized by 5 U.S.C. 8345(b) and 5 CFR 831.1401 

et seq. or 5 U.S.C. 8470 and 5 CFR 845.301 et seq.

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Chapter 4 

Part 4A2 Agency Requests to OPM for Recovery of a Debt From the Retirement Fund

Subpart 4A2.1 General 

Section 4A2.1-1 General

A. Purpose This part describes the procedures to be followed by a Federal agency when 

it requests OPM to recover a debt owed to the United States by 

administrative or judgment offset against money due and payable to the 

debtor from the Fund.

B. Limitation on Generally, debts may be collected from retirement benefits only to the 

Collection extent expressly authorized by Federal statutes. As an agency of the 

Federal Government, OPM will collect claims such as: 

1. Debts due other Federal agencies, as authorized by 31 U.S.C. 3716; 

2. Debts, penalties, and interest due because of a court judgment obtained 

by the Department of Justice or its designee, as authorized by Public 

Law 97-276, 96 Stat. 1195-1196; and 

3. Alimony or child support, as authorized by 42 U.S.C. 659. (See 

discussion in Chapter 5.) 

NOTE: Unliquidated unearned (advanced) annual and sick leave does 

not constitute a valid indebtedness when the employee is 

separated by death or retirement for disability, or when the 

employee is unable to return to duty because of disability 

evidenced by an acceptable medical certificate. Requests for 

collection of such debts should not be sent to OPM. 

C. Limitations on OPM reviews an agency's certification of due process required by 4 CFR 

OPM Review 102.4(b). However, all due process procedures and protests of creditor 

agency collection actions must be handled by the creditor agency. If 

debtors have a dispute with the creditor agency concerning the amount or 

validity of the debt or the terms of the collection schedule, they must 

resolve the dispute directly with the agency. If the creditor agency's 

request for offset meets all requirements, OPM makes the offset even 

though the debtor is protesting the collection. The creditor agency should 

make it clear to the debtor that OPM is only making the collection at the 

agency's request and give the debtor an agency contact and address for any 

questions about the debt or the installment schedule. 

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Chapter 4 

Section 4A2.1-1 General (Cont.) 

C. Limitations on OPM does not have the authority to review: 

OPM Review 

(Cont.) • The adequacy of the due process procedures that have been provided to

a debtor;

• The merits of a creditor agency's decision with regard to 

reconsideration, compromise, or waiver, or 

• The creditor agency's decision that a hearing was not required in any 

particular proceeding. 

OPM merely implements the collection decisions made by the creditor 

agency. OPM's acceptance of an agency's certification, if it is valid on its 

face, does not provide the debtor with a second opportunity for review of 

the merits of the agency's claim. 

D. Conditions for An agency may request that money payable from the Fund be offset to 

Requesting an recover any valid debt due the United States when all of the following 

Offset conditions are met:

1. The debtor failed to pay all of the debt on demand, or the creditor 

agency has collected as much as possible from payments due the debtor 

from the paying agency; and 

2. The creditor agency sends a debt claim to OPM (see section 4A2.2-2, 

paragraphs A through D, as appropriate) after doing one of the 

following: 

• Obtaining a court judgment for the amount of the debt and 

following the procedures prescribed by the U.S. Department of 

Justice for judgment offsets; 

• Following the procedures required by 31 U.S.C. 3716 and 4 CFR 

102.4; or 

• Following the procedures agreed upon by the creditor agency and 

OPM, if the creditor agency is pursuing a debt described in section 

4A2.2-2, paragraph D. 

E. Standard Form Unless the agency or the type of claim has been specifically excepted by 

(SF) 2805 OPM, an agency's debt claim must be filed on SF 2805, Request for 

Recovery of a Debt Due the United States.

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Chapter 4 

Subpart 4A2.2 Creditor Agency Procedures for Non-Fraud Claims

Section 4A2.2-1 Where to Submit the Debt Claim, Judgment, or Notice of Debt 

A. Creditor Agencies If the creditor agency knows that the debtor is employed by the Federal 

that Are Not Government, it should send the debt claim to the debtor's paying agency for 

Debtor's Paying collection by salary offset as provided under 5 U.S.C. 5514. 

Agency

If some of the debt is unpaid after the debtor separates from the paying 

agency, the creditor agency may send the debt claim to OPM for collection 

under 31 U.S.C. 3716, as described in section 4A2.2-2 below. 

B. Creditor Agencies Ordinarily, debts owed to the debtor's paying agency should be offset under 

that Are Debtor's the authority of 31 U.S.C. 3716 from any final payments (salary, accrued 

Paying Agency annual leave, etc.) due the debtor. If a balance is due after offsetting the 

final payments or the debt is discovered after the debtor has been paid, the 

paying agency may send a debt claim to OPM as described in section 

4A2.2-2 below. 

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Chapter 4 

Section 4A2.2-2 Procedures for Submitting a Debt Claim, 

Judgment, or Notice of Debt to OPM 

A. Debt Claims for If the creditor agency has a court judgment against the debtor specifying the 

Which the Agency amount of the debt to be recovered, the agency or the Department of Justice 

Has a Court should send an SF 2805 and two certified copies of the judgment to OPM 

Judgment for recovery. 

B. Debt Claims If the creditor agency has been collecting the debt under 5 U.S.C. 5514, it 

Previously must:

Processed Under

5 U.S.C. 5514 1. Notify the debtor that the claim is being sent to OPM to complete

collection of the debt by offsetting benefits payable from the Fund; and

2. Send SF 2805 to OPM with two copies of the paying agency's 

certification of the amount collected and one copy of the notice to the 

debtor explaining that the claim was sent to OPM to complete the 

collection.

C. Debt Claims Not 1. If the debt claim is not a judgment offset, a continuation of a collection 

Being Processed as previously established as a salary offset, or a claim excepted by 

a Judgment paragraph D (below), the creditor agency must: 

Offset, a 

Continuation of a • Issue a written notice to the debtor explaining the nature and 

Previously amount of the debt, the agency's intention to collect by 

Established Salary administrative offset from the debtor's retirement benefits, the 

Offset, or a Claim opportunity to inspect and copy agency records pertaining to the 

Excepted by debt, the opportunity to obtain a review within the creditor agency 

Paragraph D of the determination of indebtedness, and the opportunity to enter 

into a written agreement with the creditor agency to repay the debt 

(see 4 CFR 102.4); and 

• Complete SF 2805, Request for Recovery of a Debt Due the United 

States. 

2. If the debtor does not respond to the creditor agency's notice within the 

allotted time and there is no reason to believe that he or she did not 

receive the notice, the creditor agency may submit SF 2805 to OPM 

after certifying that notice was issued and the debtor failed to reply. 

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8 CSRS Debt Collection FERS 

Chapter 4 

Section 4A2.2-2 Procedures for Submitting a Debt Claim, 

Judgment, or Notice of Debt to OPM (Cont.) 

C. Debt Claims Not 3. If the debtor responds to the notice by requesting a review or hearing, if 

Being Processed as one is available, the review or hearing must be completed before the 

a Judgment creditor agency submits SF 2805. The creditor agency must show on 

Offset, a the SF 2805, the date the review or hearing ended in a decision for the 

Continuation of a agency. 

Previously 

Established Salary 4. If the debtor receives the notice and responds by consenting to the 

Offset, or a Claim collection, the creditor agency must send a copy of the debtor's consent 

Excepted by along with the SF 2805. 

Paragraph D 

(Cont.) 

D. Debt Claims Certain creditor agencies follow specific procedures approved by OPM, 

Excepted from rather than those described in paragraph C, for the collection of: 

Procedures

Described in 1. Debts due because of the individual's failure to pay health benefits

Paragraph C premiums while he or she was in nonpay status or while his or her

salary was not sufficient to cover the cost of premiums (see section 

4A2.2-3 below);

2. Unpaid Federal taxes to be collected by Internal Revenue Service levy; 

3. Premiums due because of the annuitant's election of Medicare Part B 

coverage (retroactive collection is limited to 6 months of premiums); or 

4. Overpayments that occur as a result of a delay in terminating the 

retiree's military retired pay when he or she elects in writing to have it 

withheld from his or her annuity. 

E. General Creditor agencies submitting claims must certify:

Certification

Requirements for 1. That the debt is owed to the United States;

Claims Against

Retirement 2. The amount and reason for the debt and whether additional interest 

Benefits accrues;

3. The date the Government's right to collect the debt first accrued;

Section 4A2.2-2 Procedures for Submitting a Debt Claim, 

Judgment, or Notice of Debt to OPM (Cont.) 

E. General 4. That the agency has complied with the applicable statutes, regulations,

Certification and OPM procedures;

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Chapter 4 

Requirements for 5. A specific dollar amount or specific percentage of net annuity for 

Claims Against collections that must be completed in installments;

Retirement 

Benefits (Cont.) 6. If the debtor consents to the collection from the Fund or acknowledges 

the debt in writing, a copy of the debtor's written consent or 

acknowledgement. If there is no written consent or acknowledgement, 

the creditor agency must certify the date of the initial demand letter and 

the actions taken to comply with the due process requirements of 4 CFR 

102.3 -­

• Show the date of the initial notice of the collection, and the date(s) 

of any additional applicable actions, such as (1) the date the debtor's 

failure to respond to the initial notice allowed the creditor agency to 

assume consent to the collection, or (2) if the debtor did respond, 

the date the debtor requested review of the debt, and the date the 

review or hearing--if applicable--was held, and the date the review 

or hearing was decided in favor of the creditor agency; and 

7. That if a competent administrative or judicial authority issues an order 

directing OPM to pay a debtor an amount previously paid to the agency 

(regardless of the reasons behind the order), the agency will reimburse 

OPM or pay the debtor directly within 15 days of the date of the order.

NOTE: If an agency does not make the required reimbursement when 

requested, OPM may decline to collect other claims for that 

agency.

F. Notice of Debt in 

Lieu of SF 2805 

When a creditor agency cannot send an SF 2805, it should notify OPM of 

the existence of the debt so a refund will not be paid before the claim 

arrives. OPM will not withhold payment of monthly annuity or retroactive 

accrued annuity unless the agency and the debtor have concluded specific 

negotiations concerning the payment of such benefits and OPM is given 

specific direction concerning the terms of such an agreement. Otherwise, 

collections will only be made against prospective annuity payments. 

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Chapter 4 

Section 4A2.2-2 Procedures for Submitting a Debt Claim, 

Judgment, or Notice of Debt to OPM (Cont.) 

F. Notice of Debt in 1. The notice to OPM must include a statement that the debt is owed to 

Lieu of SF 2805 the United States, the date the debt first accrued, and the basis for and

(Cont.) amount of the debt, if known. If the amount of the debt is not known, 

the agency must establish the amount and notify OPM in writing as 

soon as possible after submitting the notice.

2. The creditor agency may notify OPM by making a notation in column 8 

(Remarks) under the "Fiscal Record" portion of the Individual 

Retirement Record (SF 2806 or SF 3100), if the SF 2806/SF 3100 is in 

its possession, or if not, by submitting a separate document identifying 

the debtor by name, giving his or her date of birth, Social Security 

number, and date of separation, if known.

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Chapter 4 

Section 4A2.2-3 Procedures for Recovering Health Benefits Premiums

A. General Agencies may recover past-due health benefits premiums from separated 

employees by requesting OPM to withhold the premium amount from any 

payments due the former employee, including refunds due employees who 

have separated and annuities due employees who have retired. 

The agency must submit OPM Form 1522 to request an offset for past-due 

health benefits premiums from any amounts to be paid to a separated 

employee from the retirement system. (SF 2805 will not be accepted.) In 

addition, the SF 2806 or SF 3100 should be noted when forwarded to OPM 

to show that the separating employee is indebted. 

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12 CSRS Debt Collection FERS 

Chapter 4

Section 4A2.2-4 Time Limits for Sending Records and Debt Claims to OPM 

A. Time Limits for 1. Unless there is an application for a refund pending, there is no specific 

Submitting Debt time for submitting a debt claim or notice of debt to OPM. Generally, 

Claims however, agencies must file a debt claim before the statute of

limitations expires (4 CFR 102.4(c)) or before a refund is paid.

2. Time limits are imposed when the debtor is eligible for a refund and 

OPM receives his or her application requesting payment (see section 

4A2.3-1). Creditor agencies must file SF 2805 or other claim within 

120 days -- 180 days if the agency requests an extension of time before 

the refund is paid -- of the date OPM requests a complete debt claim.

B. Time Limit for 1. Generally, a paying agency must send an individual's SF 2806 or 

Submitting SF 3100 to OPM no later than 30 days after the separation, termination, 

Retirement or entrance on duty in a position in which the employee is not covered 

Records to OPM by CSRS or FERS.

2. If the agency's claim is based on circumstances that indicate fraud (such 

as presentation of a false claim or misrepresentation by the debtor or 

some other party having an interest in the claim) and require the claim 

to be submitted to the Department of Justice, the agency may have an 

additional 30 days -- a total of 60 days -- to submit the record to OPM. 

In the latter case, the agency must notify OPM that the case is under 

consideration by the Department of Justice.

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Chapter 4 

Subpart 4A2.3 OPM Processing for Non-Fraud Claims

Section 4A2.3-1 Refunds--Incomplete Debt Claims

A. General If a creditor agency sends OPM a notice of debt or an incomplete debt 

claim against a refund OPM is processing for payment, OPM will withhold 

the amount of the debt but will not make any payment to the creditor 

agency. OPM will notify the creditor agency that the procedures described 

in this part and 4 CFR 102.4 must be completed and a properly completed 

SF 2805 submitted to OPM by a specified date.

B. Time Limits for Generally, a debt claim must be completed and returned to OPM within 120 

Filing Completed days of the date of OPM's notice to the creditor agency. However, upon 

Debt Claim request, OPM will grant the creditor agency one extension of up to 60 days 

if the request for extension is received before the lump-sum payment has 

been made. The extension will commence on the day after the 120-day 

period expires so that the total time OPM holds payment of the refund will 

not exceed 180 days. 

C. OPM Action on During the period allotted a creditor agency for sending OPM an SF 2806 

Refund or SF 3100, OPM will do the following:

Application 

1. If the amount of the debt is known, OPM will notify the debtor of the 

claim against his or her lump-sum credit, withhold the amount of the 

debt, and pay the balance to the debtor, if any. 

2. If the amount of the debt is not known, OPM will not pay the debtor 

until the creditor agency certifies the amount of the debt, submits an SF 

2805, or the time limit for submission of the claim expires, whichever 

comes first. 

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Chapter 4 

Section 4A2.3-2 Refunds--Complete Debt Claims

A. If OPM Receives 1. If a refund has been paid, OPM will notify the creditor agency there are 

Application from no funds available for offset. Except in the case of debts due because 

Debtor Prior to or of the employee's failure to pay health benefits premiums while he or 

at Same Time as she is in nonpay status or while his or her salary was not sufficient to 

Agency's Claim cover the cost of premiums, creditor agencies should refer to the 

instructions in the FCCS for other measures to recover the outstanding 

debt; however, OPM will retain the SF 2805 on file in the event the 

debtor is once again employed in a position subject to retirement 

deductions.

2. If a refund is payable, and the creditor agency submits a claim in 

accordance with section 4A2.2-2, paragraphs A through D, the debt 

will be collected from the refund and any balance paid to the debtor. 

OPM will send the debtor a copy of the agency's claim, judgment, his 

or her written consent, or other document, and notify him or her that 

the creditor agency was paid.

B. If OPM Has Not 

Received 

Application from 

Debtor When the 

Agency's Debt 

Claim is Received

If a debtor has not filed application for a refund, OPM will file the claim 

for future recovery. OPM will make the collection whenever an application 

is received, provided the creditor agency initiated the administrative offset 

before the statute of limitations expired. [See 4 CFR 102.3(b)(3) and 

102.4(c).] OPM will notify the creditor agency that it has filed the claim 

for future recovery because we do not have an application from the debtor. 

The agency may take other actions to recover the debt in the interim. 

NOTE: If the other recovery action is successful, the creditor agency must 

notify OPM so it can void the debt claim. 

C. Future Recovery 1. If OPM receives an application for a refund within 1 year of the date 

the agency's claim was received and the creditor agency does not 

indicate that interest is accruing on the debt, the debt will be processed 

as stated in paragraph A2 above.

2. If OPM receives an application for a refund within 1 year of the date 

the agency's debt claim was received and the creditor agency indicates 

that interest accrues on the debt, when necessary, OPM will contact the 

creditor agency to confirm that the debt is outstanding and request 

submission in writing, of the total additional accrued interest. OPM 

will not make interest computations for creditor agencies.

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Chapter 4 

Section 4A2.3-2 Refunds--Complete Debt Claims (Cont.) 

C. Future Recovery 3. When OPM receives an application for a refund more than 1 year after 

(Cont.) the creditor agency's debt claim was received, whether interest accrues 

or not, OPM will contact the creditor agency to see if the debt is still 

outstanding and, when necessary, request an update of the interest 

charges. 

If the debt is still due, the creditor agency should give the debtor an 

opportunity to offer a satisfactory repayment plan instead of the offset if the 

debtor establishes that his or her changed financial circumstances, if any, 

would make the offset unjust. (See 4 CFR 102.4(c).) 

If the agency decides to pursue the offset, it must submit to OPM the 

requested information and any new instructions within 60 days of the date 

of OPM's request or the claim may be voided and the balance paid to the 

individual. 

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Chapter 4 

Section 4A2.3-3 Annuities--Incomplete Debt Claims

A. General If a creditor agency sends OPM a notice of debt or an incomplete debt 

claim against an annuitant, OPM will not offset the annuity. OPM will 

notify the creditor agency that the procedures described in this part and 

4 CFR 102.4 must be completed and SF 2805 or other acceptable claim 

form must be completed and sent to OPM.

No time limit will be given for the submission of a debt claim against an 

annuity; however, a complete debt claim must be received within 10 years 

of the date the Government's right to collect first accrued. (See 4 CFR 

102.3(b)(3).) 

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Chapter 4 

Section 4A2.3-4 Annuities--Complete Debt Claims

A. General 1. Notice

When OPM receives a complete debt claim and an application for 

annuity, OPM will:

• Offset the annuity; 

• Pay the creditor agency; and 

• Mail the debtor a copy of the debt claim along with notice of the 

payment to the creditor agency. 

2. Beginning Deductions

• If OPM has already completed adjudication of the debtor's annuity 

payment, deductions will begin with the next available annuity 

payment. 

• If OPM is in the process of adjudicating the application for annuity, 

deductions will not be taken from interim annuity payments, but 

will begin with the first regular annuity payment after adjudication 

has been completed. 

3. Updating Accrued Interest

Once OPM has completed a collection, if there are additional accrued 

interest charges, the creditor agency must contact OPM regarding any 

additional amount due within 90 days of the date of the final payment. 

B. Claims Held for 1. If OPM receives an application for annuity within 1 year of the date the 

Future Recovery agency's debt claim was received, the debt will be processed as stated 

in paragraph A of this section.

2. If OPM receives an application for annuity more than 1 year after the 

agency's debt claim was submitted:

• OPM will contact the creditor agency to see if the debt is still 

outstanding. 

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Chapter 4 

Section 4A2.3-4 Annuities--Complete Debt Claims (Cont.) 

B. Claims Held for • If the debt is still due, the creditor agency should permit the debtor 

Future Recovery to offer a satisfactory repayment plan in lieu of offset if the debtor 

(Cont.) establishes that his or her changed financial circumstances would

make the offset unjust. (See 4 CFR 102.4(c).)

• If the agency decides to pursue the offset, it must submit the 

requested information and any new instructions about the collection 

to OPM. 

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Chapter 4 

Subpart 4A2.4 Installment Withholdings

Section 4A2.4-1 Installment Withholdings

A. General When possible, OPM will collect a creditor agency's claim in one payment 

from the debtor's refund or annuity.

B. Rule If collection must be made from an annuity and the debt is large, the 

creditor agency must generally accept payment in installments. The 

responsibility for establishing and notifying the debtor of the amount of 

the installments belongs to the creditor agency. (See section 

4A2.2-2, paragraph E).

C. Limitation on OPM will not make an installment deduction for more than 50 percent of 

Installment net annuity, unless:

Withholdings

• A higher percentage is needed to satisfy a judgment against a debtor 

within 3 years; or 

• The annuitant has consented to the higher amount in writing. 

NOTE: All correspondence concerning installment deductions received by 

OPM will be referred to the creditor agency for consideration. 

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Chapter 4 

Subpart 4A2.5 Special Processing for Fraud Claims

Section 4A2.5-1 Special Processing for Fraud Claims

A. General When an agency sends a claim indicating fraud, presentation of a false 

claim, misrepresentation by the debtor or any other party with an interest in 

the claim, or any claim based in whole or part on conduct violating the 

antitrust laws, to the Department of Justice (Justice) for possible treatment 

as a fraud claim (4 CFR 101.3), the following special procedures apply. 

B. Agency Processing If the debtor is separated or separates while Justice is reviewing the claim, 

the paying agency must send the SF 2806 or SF 3100 to OPM (see section 

4A2.2-4, paragraph B). The agency where the claim arose must send OPM 

notice that a claim is pending with Justice. (See section 4A2.2-2, paragraph 

F, for instructions on giving OPM a notice of debt.) 

C. Department of 1. The Attorney General or a designee will decide whether a debt claim 

Justice Processing sent in by an agency will be reserved for collection by Justice as a fraud 

claim. Upon receiving a possible fraud claim to be collected by offset 

from the Fund, the Attorney General or a designee must notify OPM. 

The notice to OPM must contain the following:

• The name, date of birth, and Social Security number of the debtor; 

• The amount of the possible fraud claim, if known; 

• The basis of the possible fraud claim; and 

• A statement that the claim is being considered as a possible fraud 

claim, the collection of which is reserved to Justice. 

2. When there is a pending refund application, the Attorney General or 

designee must:

• File a complaint seeking a judgment on the claim and send a copy 

of the complaint to OPM; 

• Refer the claim to the agency where the claim arose and submit a 

copy of the referral to OPM within 180 days of the date of either 

the notice from the agency that a claim is pending with Justice (see 

paragraph B) or notice from Justice that it has received a possible 

fraud claim (see paragraph C1), whichever is earlier. (See 4 CFR 

101.3.) 

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Chapter 4 

Section 4A2.5-1 Special Processing for Fraud Claims (Cont.) 

D. Agency Processing If the claim is returned to the agency where it arose for collection, the 

of a Claim agency must:

Returned by the

Department of • Begin administrative collection action in accordance with the provisions

Justice of 4 CFR 102.4; and

• Send an SF 2805 to OPM as required in section 4A2.2-2 

E. OPM Processing When OPM receives a notice described in paragraphs B or C1 above, it will 

Against Refunds take the following actions: 

1. If the amount of the debt is known:

• Notify the debtor it has received notice of a debt from the agency or 

the Department of Justice, as appropriate; 

• Notify the debtor that the amount of the debt will be held for at 

least 180 days from the date of the agency's or the Department of 

Justice's notice; and 

• Pay the balance, if any, to the debtor.

2. If the amount of the debt is not known:

• Notify the debtor it has received notice of a debt in an undetermined 

amount to be offset from his or her lump-sum credit; and 

• Notify the debtor of the time limits for perfecting the Government's 

claim against his or her retirement benefits and the possible release 

of any balance that may be due as specified below. 

3. If the amount of the debt is not known when OPM is notified of the 

existence of the debt, OPM will not release any payment to the debtor 

until:

• The amount of the debt is established by the agency or the 

Department of Justice; or 

• There is a final decision in the court, if the Attorney General files a 

complaint and notifies OPM within the applicable 180-day period; 

or 

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22 CSRS Debt Collection FERS 

Chapter 4 

Section 4A2.5-1 Special Processing for Fraud Claims (Cont.) 

E. OPM Processing • 180 days after the date of the agency's or the Department of

Against Refunds Justice's notice to OPM, if a complaint is not filed and Justice does

(Cont.) not notify OPM that the claim has been referred back to the creditor

agency for collection; or

• Within 120 days of OPM's notice to the creditor agency, if the 

Department of Justice notifies OPM that the claim has been 

returned to the creditor agency for collection.

NOTE: The agency may request one extension of time of not 

more than 60 days. (See section 4A2.3-1, paragraph B.)

F. OPM Processing If the debtor has filed an annuity claim, OPM will not take action against 

Against Annuities the annuity. OPM will continue to pay the annuity unless and until there is 

a final judgment for the United States or submission of a complete debt 

claim.

G. OPM Collection 1. If the United States obtains a judgment against the debtor for the 

and Payment of amount of the debt or the creditor agency submits a complete debt 

the Debt claim, OPM will pay the debt to the creditor agency as provided in 

subpart 4A2.3 and 4A2.4.

2. If the suit or the administrative proceeding results in a judgment for the 

debtor without establishing a debt to the United States, OPM will pay 

the balance of the refund to the debtor upon receipt of a certified copy 

of the judgment or administrative decision.

April 1998 CSRS and FERS Handbook