In the Matter of the Petition by       ) September 21, 1993
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 JUDY A. SUAREZ                         )
 5533 Third Road                        )
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 at                                     )
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 Lake Worth, FL  33467-5633             ) P. S. Docket No. DCA-176

Respondent has filed a Motion to Dismiss the Petition in this matter. The motion states that Petitioner is no longer a Postal Service employee and that the Notice of Involuntary Administrative Salary Offsets sent to Petitioner has been withdrawn. A document attached to Respondent's motion verifies that the notice of offsets has been withdrawn.

Petitioner opposes the motion on the basis that she has a right to a hearing under either 39 C.F.R. § 961 or § 966, since the Postal Service has not withdrawn its demand on her for repayment of $1,740, allegedly owed.^1/ Petitioner's position in regard to a right to a hearing is well taken. The Postal Service has adopted regulations for two sets of offset actions -- (a) Debt Collection Act actions against present employees (39 C.F.R. § 961), and (b) Administrative Offset actions against former employees (39 C.F.R. § 966). An affected individual is entitled to an administrative procedure depending on his or her employment status under one of the two distinct offset actions.

In the matter now pending the Notice of Involuntary Administrative Salary Offsets Against Petitioner under the Debt Collection Act has been withdrawn. Therefore, since no claim exists against Petitioner under the Debt Collection Act this proceeding must be dismissed. See E. A. Kidd, P. S. Docket No. DCA-150 (Dismissal Feb. 5, 1993).

Since Respondent continues to assert its claim for payment of the alleged debt against Petitioner, a former employee, yet withholds from Petitioner her appeal rights, it is appropriate to treat this matter as an administrative offset. In this regard this matter is redocketed as Administrative Offset Docket No. AO- 39, and Petitioner's prior Petition for Review Under 39 C.F.R. Part 966 (Docket No. AO-36) is incorporated by reference. A conference call will be held between Petitioner's representative and Respondent's Inspector-Attorney in the near future. P. S. Docket No. DCA-176 is dismissed.

                                        James D. Finn, Jr.
                                        Administrative Judge

1/ This matter was previously docketed as an administrative offset matter under 39 C.F.R. § 966, but was dismissed upon motion by Respondent, as prematurely brought. See Order of July 12, 1993, Docket No. AO-36.