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Home > About USPS & News > Forms & Publications > Postal Periodicals and Publications > Manuals > Employee and Labor Relations Manual - Issue 18 > 4 Pay Administration > 450 Collection of Postal Debts From Nonbargaining Unit Employees
450 Collection of Postal Debts From Nonbargaining Unit
Employees
These regulations apply to the collection of any debt owed the Postal
Service™ by a current postal employee who is not included in any collective
bargaining unit. The regulations in 452.3 may apply also to the collection of
any debt owed the Postal Service by a current postal employee who is
included in any collective bargaining unit if the circumstances specified in
462.32 apply. Otherwise, procedures governing the collection of
postal debts from bargaining unit employees are found in 460.
Generally, the Postal Service may withhold a maximum of 15 percent of an
employee's disposable pay each pay period after providing the employee with
certain due process rights (see 452) except as provided in 462.4 in
the case of a bargaining unit employee. If, however, a federal court has
granted judgment upholding the debt, up to 25 percent of the employee's
current pay may be withheld each pay period (see 453).
451.2 Representation
Employees have the right to, and free choice of, representation. An
employee's designated representative, if also a postal employee and if
otherwise in a duty status, is granted a reasonable amount of official time to
perform any function for the employee that is authorized by these regulations.
451.3 Debts Due Other Federal Agencies
Regulations governing the collection by involuntary salary offset of debts
owed by postal employees to federal agencies other than the Postal Service
are specified in Handbook F-16, Accounts Receivable, Chapter 7.

451.4 Definitions
The following definitions apply to the material in this subchapter:
a. Administrative salary offset - the collection of a postal or other
government agency debt through deductions from the disposable pay
of a postal employee under the authority of section 5 of the Debt
Collection Act of 1982, 5 U.S.C. 5514(a) (1982).
b. Court judgment salary offset - the collection of a postal or other
government agency debt through deductions from the current pay of a
postal employee under the authority of section 124 of Public Law 97-276.
c. Current pay or disposable pay - that part of an employee's salary that
remains after all required deductions (normal retirement contributions,
FICA and Medicare insurance taxes, federal income tax, state and local
income taxes, and employee-paid federal health insurance premiums)
are made.
d. Debt - any outstanding amount owed to the Postal Service by a postal
employee.
e. Employee - a current employee of the Postal Service.
f. Pay - basic pay, special pay, incentive pay, retired pay, retainer pay, or
any other authorized pay, including cost-of-living adjustment or
territorial cost-of-living allowance, received by an employee.
g. Postmaster or installation head - the top management official at a
particular Post Office™ or installation, or the official who has general
supervisory responsibility for a debtor employed at Headquarters or in
area offices. When a particular debtor is a postmaster or installation
head, the term refers to the official to whom the postmaster or
installation head reports.
h. Severe financial hardship - an employee's inability to meet the
essential material needs of the employee and his or her spouse and
dependents because of offsets against pay. These essential material
needs are food, housing, clothing, transportation, medical care, and
any exceptional expenses.
i. Waiver - the Postal Service's cancellation, remission, or forgiveness
of a debt, the recovery of which is covered by these regulations.

451.5 Time Computation
In computing any period of time prescribed or allowed by these regulations,
the day the designated period of time begins to run is not included. The last
day of the period computed is included, unless it is a Saturday, Sunday, or
legal holiday, in which event the period runs until the end of the next day that
is not a Saturday, Sunday, or legal holiday.
451.6 Effect of Waiver Request
If an employee requests a waiver of a debt, the recovery of which is covered
by these regulations, that request does not stay the collection process.
However, if the waiver request ultimately is granted, the amount collected is
refunded to the employee.
451.7 Service of Notice, Delivery of Records
A postmaster or installation head must hand deliver any notice required by, or
any records requested pursuant to, these regulations to a postal employee
and must obtain a dated, signed receipt of delivery. If such personal delivery
is not possible, however, Certified Mail™ or Express Mail®, return receipt
requested, must be used.
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