Offset of Federal Benefit Payments To Collect Past-due, Legally Enforceable Nontax Debt

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 285

RIN 1510-AA74

Offset of Federal Benefit Payments To Collect Past-due, Legally

Enforceable Nontax Debt

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Interim rule with request for comments.

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SUMMARY: The Debt Collection Improvement Act of 1996 requires the

Federal Government to withhold or reduce certain Federal payments to

satisfy delinquent nontax debts owed to the United States by the payee.

This process is known as ``administrative offset.'' This interim rule

establishes the rules governing the administrative offset of Federal

benefit payments issued under the Social Security Act (other than

Supplemental Security Income), part B of the Black Lung Benefits Act,

and any law administered by the Railroad Retirement Board (other than

tier 2 benefit payments). This rule affects individuals who receive

these types of benefit payments and who owe delinquent nontax debts to

the Federal Government.

DATES: Effective: August 21, 1998. Comments must be received on or

before September 21, 1998.

ADDRESSES: All comments should be addressed to Gerry Isenberg,

Financial Program Specialist, Debt Management Services, Financial

Management Service, 401 14th Street SW, Room 151, Washington, D.C.

20227. A copy of this interim rule is being made available for

downloading from the Financial Management Service web site at the

following address: http://www.fms.treas.gov/debt/dms.html.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Financial Program

Specialist, at (202) 874-6660; Ellen Neubauer or Ronda Kent, Senior

Attorneys, at (202) 874-6680.

SUPPLEMENTARY INFORMATION:

Background

A major purpose of the Debt Collection Improvement Act of 1996

(DCIA), Pub. L. 104-134, 110 Stat. 1321-358 et seq. (April 26, 1996),

is to increase the collection of delinquent nontax debts owed to the

Federal Government. Among other things, the DCIA established a

centralized process for withholding or reducing eligible Federal

payments, including certain benefit payments, to pay the payee's

delinquent debt owed to the United States. This process is known as

``administrative offset.''

The Financial Management Service (FMS), a bureau of the Department

of the Treasury (Treasury), disburses more than 850 million Federal

payments annually, including Federal benefit payments on behalf of

agencies such as the Social Security Administration, the Railroad

Retirement Board, and the Department of Veterans Affairs. As the

Treasury disbursing agency, FMS is responsible for the implementation

of centralized administrative offset of Federal payments for the

collection of delinquent nontax debt. To meet this responsibility, FMS

has established the Treasury Offset Program.

The Treasury Offset Program works as follows. FMS maintains a

delinquent debtor database. The database includes delinquent debtor

information submitted and updated by Federal agencies either owed debts

(creditor agencies) or collecting debts on behalf of other Federal

agencies. Before a Federal payment is disbursed to a payee, FMS

compares the payee information with debtor information in FMS''

delinquent debtor database. If the payee's name and taxpayer

identifying number (TIN) match the name and TIN of a debtor, the

payment is offset, in whole or in part, to satisfy the debt, to the

extent legally allowed.

FMS transmits amounts collected through offset to the appropriate

agencies owed the delinquent debt after deducting a fee charged to

cover the cost of the offset program. FMS' authority to charge fees is

found at 31 U.S.C. 3716(c)(4). Under 31 U.S.C. 3717(e), the agencies

which are owed the delinquent debt may add the fees to the debt as part

of the administrative cost, if not otherwise prohibited by law.

Information about a delinquent debt remains in the debtor database and

offsets of eligible Federal benefit and other payments will continue

until debt collection activity for the debt is terminated because of

full payment, compromise, write-off or other reasons justifying

termination. In centralizing offset through the Treasury Offset

Program, FMS will consolidate and simplify offset procedures for the

Federal Government.

This interim rule governs only the administrative offset of Federal

benefit payments issued under the Social Security Act (other than

Supplemental Security Income (SSI)); part B of the Black Lung Benefits

Act (governing claims for benefits filed before December 31, 1973); and

any law administered by the Railroad Retirement Board (other than tier

2 benefit payments, i.e., the portion of the railroad retirement

annuity based exclusively on railroad service) for the collection of

delinquent nontax debt owed to the Federal Government. Other rules and

procedures reflect requirements for other types of payments or debts,

as well as the general rules applicable to collection of debts by

offset. FMS has promulgated and will promulgate other rules governing

the centralized offset of Federal payments (other than Federal benefit

payments) for the collection of debts owed to Federal agencies, for the

collection of debts owed to States, and for the collection of past-due

child support. FMS anticipates that Part 285 of this title will contain

all of the provisions relating to the centralized offset of Federal

payments for the collection of debts owed to the Federal Government and

to State governments, including past-due child support.

FMS developed this interim rule in consultation with the Social

Security Administration, the Railroad Retirement Board, the Department

of Labor, the Department of Veterans Affairs, the Office of Management

and Budget, and other affected agencies, and acknowledges their

constructive assistance.

Phased Implementation

Under the DCIA, Federal benefit payments issued under the Social

Security Act (other than SSI); part B of the Black Lung Benefits Act;

and any law administered by the Railroad Retirement Board (other than

tier 2 benefit payments), hereinafter referred to as ``covered benefit

payments,'' may be offset to collect delinquent debt owed to the United

States subject to certain limitations. First, the DCIA provides for a

threshold level of covered benefit payments which a debtor must receive

before an offset may occur. Under the DCIA, only those amounts of

covered benefit payments which a debtor receives in excess of $9,000

per year (or $750 per month) may be offset. Second, the DCIA requires a

reduction in this threshold amount by the amount of benefit payments a

debtor receives which are not subject to offset. Benefit payments not

subject to offset include without limitation, SSI payments and benefit

payments paid under any law administered by the Secretary of Veterans

Affairs; part C of the Black Lung Benefits Act; any law administered by

the Railroad Retirement Board that such Board determines to be tier 2

benefits; and any other law under which Federal benefit payments are

[[Page 44987]]

made if such payments are exempt from offset.

FMS intends to implement the offset of covered benefit payments in

two phases. During phase I and as described in this rule, FMS will

offset only those monthly covered benefit payments which individually

exceed the $750 threshold. During phase II, FMS will offset all covered

benefit payments, provided the total amount received by the debtor

exceeds the threshold amount. The DCIA requirement that the amount

offset be increased for individuals who also receive benefit payments

not subject to offset will be implemented during phase II. Calculating

the maximum allowable offset amount for debtors who receive more than

one type of benefit payment is operationally complex. FMS therefore has

adopted a phased approach to allow for some offsets to begin (i.e.,

offsets of monthly covered benefit payments which exceed $750), while

FMS continues to work out the complexities of fully implementing the

DCIA's benefit offset provisions. This approach will allow for the

orderly implementation of benefit offset ensuring that more complex

offsets are accomplished in an efficient and cost-effective manner.

Prior to implementation of phase II, FMS will amend this rule to

include the procedures applicable to phase II.

Section Analysis

(a) Scope

Paragraph (a) explains that the rules contained in this regulation

apply only to the offset of certain Federal benefit payments, i.e.,

benefit payments payable to individuals under the Social Security Act

(other than SSI payments); part B of the Black Lung Benefits Act; and

any law administered by the Railroad Retirement Board (other than

payments that such Board determines to be tier 2 benefits).

This paragraph also explains that FMS and/or the agency that

authorizes a payment, are not liable for amounts offset on the basis

that the underlying obligation, that is, the amount of the payment

before the offset was taken, was not satisfied. For example, where an

individual is ``due'' a Social Security payment of $900, the obligation

to pay $900 to that individual is met even though a portion of that

payment was offset and thus not actually received by the individual.

(b) Definitions

The term ``covered benefit payments'' is used throughout the rule

to describe those benefit payments which are subject to the provisions

of this rule. Covered benefit payments means all Federal benefit

payments payable to an individual under the Social Security Act (other

than SSI payments); part B of the Black Lung Benefits Act; and any law

administered by the Railroad Retirement Board (other than payments that

such Board determines to be tier 2 benefits). The amount of the covered

benefit payment payable to a debtor for purposes of this rule will be

the amount after reduction or deduction required under the laws

authorizing the program. For example, if the amount of a debtor's $450

monthly Social Security payment is reduced by a $45 monthly Medicare

insurance premium, the amount of $405 will be used in calculating the

amount available for offset. Reductions to recover benefit overpayments

are likewise excluded from the covered benefit payment when calculating

amounts available for offset.

It is important to note that there are other Federal benefit

payments which may be subject to offset under 31 U.S.C. 3716 but are

not covered by this rule, such as Office of Personnel Management

retirement payments.

``Monthly covered benefit payments'' are defined as covered benefit

payments which are payable to a payee on a recurring basis at monthly

intervals and are expected to continue for at least 12 months.

The term ``payee'' as defined in the rule refers to a person who is

entitled to receive the benefit of all or part of a payment. FMS

recognizes that many Federal benefit payments are made to third

parties, sometimes known as representative payees, acting on behalf of

the person entitled to receive the benefit of all or part of the

payment (the beneficiary). Under these circumstances, an offset will

not occur unless the name and TIN of the beneficiary match the name and

TIN of the debtor. For example, if X owes a debt and receives a Social

Security retirement payment on his/her own behalf, the Social Security

retirement payment could be offset to satisfy the debt. If, however, X

receives a Social Security retirement payment as the representative

payee of Y, the payment could not be offset to satisfy X's debt. In

this case the offset could occur only if Y, the beneficiary, is the

debtor. FMS is working with payment agencies to insure that the names

and TINs of beneficiaries are identified.

(c) Administrative Offset, Generally

Paragraph (c) explains how the administrative offset program works

generally and explains that covered benefit payments are among the

types of payments which are offset to collect debts owed to the United

States.

(d) Submission of Debts to FMS for Collection by Administrative Offset

Paragraph (d) states the DCIA requirement that creditor agencies

must notify FMS of all past-due, legally enforceable debt delinquent

for more than 180 days for purposes of collection by administrative

offset. Additionally, this paragraph provides that creditor agencies

may notify FMS of debts delinquent for less than 180 days for purposes

of administrative offset. Before submitting a delinquent debt to FMS

for collection by offset, creditor agencies are responsible for

notifying debtors that their debt is delinquent and that the agency

intends to collect the debt by offset. The DCIA and this rule do not

change pre-offset due process and other requirements under 31 U.S.C.

3716(a) and agency specific laws and regulations. By written notice,

the creditor agency must inform debtors of the opportunity to review

applicable agency records and to seek a review of the determination of

the debt. Upon receipt of the notice, the debtor may provide evidence

to the creditor agency that collection of the debt by administrative

offset would result in a financial hardship and make alternate

arrangements, acceptable to the creditor agency, to repay the debt.

This section provides that the creditor agency must certify to FMS that

the requirements of 31 U.S.C. 3716(a) and applicable agency-specific

laws and regulations related to offset have been met.

(e) Offset Amount

As described in paragraph (e)(1), the amount offset from a monthly

covered benefit payment will be the lesser of: (i) the amount of the

debt; (ii) an amount equal to 15% of the monthly covered benefit

payment; or, (iii) the amount, if any, by which the monthly covered

benefit payment exceeds $750.

15% Limitation. When the DCIA was enacted, members of Congress

expressed concern that regulations developed by Treasury contain

safeguards to separate those debtors who cannot repay their debts from

those who refuse to pay. Federal benefit recipients, particularly

Social Security benefit recipients, may be dependent upon their Federal

benefits for a substantial part of their income. See House Conference

Report No. 104-537 on H.R. 3019, Balanced Budget Down Payment Act, II

(April 25, 1996); Senate Report No. 104-330 on H.R. 3756, Treasury,

Postal Service, and General Government Appropriation Bill 1997 (July

23, 1996); Conference Report accompanying the 1997 Appropriations

[[Page 44988]]

Act, Congressional Record, September 28, 1996, H12005. Recognizing the

dependence recipients may have on their Federal benefits, this rule

limits the maximum amount that will be offset from an individual's

covered benefit payment to 15% of the payment.

$750 Threshold. Under the DCIA, only those covered benefit payments

which exceed an annual threshold amount of $9,000 are subject to

offset. The DCIA provides that the $9,000 annual threshold may be

prorated when applied to monthly benefit payments. Thus the threshold

amount for monthly benefit payments is $750.

Paragraph (e)(2) explains that a debtor is not entitled to a refund

of amounts offset if monthly benefit payments are reduced, terminated,

suspended or otherwise not actually received for a period of 12 months.

Paragraph (e)(3) contains the following examples to illustrate how

the amount offset will be determined for offsets which occur during

phase I:

Example (i): A debtor receives monthly Social Security benefits of

$850. The amount offset is the lesser of $127.50 (15% of $850) or $100

(the amount by which $850 exceeds $750). In this example, the amount

offset is $100 (assuming the debt is $100 or more).

Example (ii): A debtor receives monthly Social Security benefits of

$1250. The amount offset is the lesser of $187.50 (15% of $1250) or

$500 (the amount by which $1250 exceeds $750). In this example, the

amount offset is $187.50 (assuming the debt is $187.50 or more).

Example (iii): A debtor receives monthly Social Security payments

of $650. No amount will be offset because $650 is less than $750.

(f) Notification of Offset

Paragraph (f) explains that before FMS begins to offset a debtor's

monthly covered benefit payments, although not required by the DCIA to

do so, FMS intends to notify the debtor of the anticipated offset, the

name of the creditor agency to which any amounts offset will be paid,

and a contact within that creditor agency who will handle questions

regarding the delinquent debt.

As required by the DCIA, when FMS offsets a payment, FMS will

notify the debtor of the amount and date of the offset, the creditor

agency to which the amount offset was paid, and a contact within the

creditor agency who will handle concerns or questions regarding the

delinquent debt which triggered the offset. See 31 U.S.C. 3716(c)(7).

Typically, this notice will be provided no later than the date the

debtor is otherwise scheduled to receive the payment, or as soon as

practical thereafter. Non-receipt by the debtor of the notices

referenced in paragraph (f) of this section does not impair the

legality of the offset.

(g) Fees

Paragraph (g) describes the authority under the DCIA, codified at

31 U.S.C. 3716(c)(4), for FMS to charge a fee for the full cost of

conducting offsets. Under 31 U.S.C. 3717(e) the agencies which are owed

the delinquent debt may add this fee to the debt as part of the

administrative cost of collection unless otherwise prohibited under 31

U.S.C. 3717(g).

(h) Disposition of Amounts Collected

Paragraph (h) describes how amounts collected from covered benefit

payments will be transmitted to creditor agencies.

Regulatory Analyses

This interim rule is not a significant regulatory action as defined

in Executive Order 12866. Because no notice of proposed rulemaking is

required for this interim rule, the provisions of the Regulatory

Flexibility Act do not apply.

Special Analyses

FMS is promulgating this interim rule without opportunity for prior

public comment pursuant to the Administrative Procedure Act, 5 U.S.C.

553 (the ``APA''), because FMS has determined, for the following

reasons, that a comment period would be unnecessary, impracticable and

contrary to the public interest. The DCIA provision authorizing the

offset of covered benefit payments to collect delinquent debt owed to

the United States was effective on August 26, 1996. A comment period is

unnecessary because this interim rule does not change the ongoing

offset process under the Treasury Offset Program, but rather provides

guidance for creditor agencies and disbursing officials to facilitate

the addition of covered benefit payments into the Treasury Offset

Program. Under this interim rule, creditor agencies are required to

provide to the debtor the same pre-offset notice, opportunities, and

rights to dispute the debt and seek waiver as currently required under

31 U.S.C. 3716 and implementing regulations. Since this interim rule

provides critical guidance needed to facilitate the offset of benefit

payments to collect delinquent debt owed to the United States, FMS

believes that it is in the public interest to issue this interim rule

without opportunity for prior public comment.

The public is invited to submit comments on the interim rule which

will be taken into account before a final rule is issued.

FMS has determined that good cause exists to make this interim rule

effective upon publication without providing the 30 day period between

publication and the effective date contemplated by 5 U.S.C. 553(d). The

purpose of a delayed effective date is to afford persons affected by a

rule a reasonable time to prepare for compliance. However, in this

case, as required by the DCIA, agencies already participate in the

Treasury Offset Program. Inasmuch as this interim rule provides

important guidance that is expected to facilitate implementation of the

authority contained in the law, and effective as of August 26, 1996,

FMS believes that good cause exists to make the rule effective upon

publication.

List of Subjects in 31 CFR Part 285

Administrative practice and procedures, Black lung benefits,

Claims, Debts, Disability benefits, Railroad retirement, Railroad

unemployment insurance, Social Security benefits, Supplemental Security

Income (SSI), Veterans benefits.

Authority and Issuance

For the reasons set forth in the preamble, 31 CFR Part 285 is

amended as follows:

PART 285--DEBT COLLECTION AUTHORITIES UNDER THE DEBT COLLECTION

IMPROVEMENT ACT OF 1996

1. The authority citation for part 285 continues to read as

follows:

Authority: 26 U.S.C. 6402; 31 U.S.C. 321, 3701, 3711, 3716,

3720A, 3720D; E.O. 13019; 3 CFR, 1996 Comp., p. 216.

2. Section 285.4 is added to Part 285, Subpart A, to read as

follows:

Sec. 285.4 Offset of Federal benefit payments to collect past-due,

legally enforceable nontax debt.

(a) Scope. (1) This section sets forth special rules applicable to

the offset of Federal benefit payments payable to an individual under

the Social Security Act (other than Supplemental Security Income (SSI)

payments), part B of the Black Lung Benefits Act, or any law

administered by the Railroad Retirement Board (other than payments that

such Board determines to be tier 2 benefits) to collect delinquent

nontax debt owed to the United States.

(2) As used in this section, benefit payments ``due to'' an

individual, ``payable to'' an individual, and/or

[[Page 44989]]

benefit payments ``received by'' an individual, refer to those benefit

payments expected to be paid to an individual before any amounts are

offset to satisfy the payee's delinquent debt owed to the United

States. Nothing in these phrases, similar phrases, or this section is

intended to imply or confer any new or additional rights or benefits on

an individual with respect to his or her entitlement to benefit

payments. The Financial Management Service (FMS), the Social Security

Administration, the Railroad Retirement Board, and other payment

agencies are not liable for the amount offset from an individual's

benefit payment on the basis that the underlying obligation,

represented by the payment before the offset was taken, was not

satisfied. See 31 U.S.C. 3716(c)(2)(A).

(b) Definitions. As used in this section:

Administrative offset or offset means withholding funds payable by

the United States (including funds payable by the United States on

behalf of a State government) to, or held by the United States for, a

person to satisfy a debt.

Agency or Federal agency means a department, agency, court, court

administrative office, or instrumentality in the executive, judicial,

or legislative branch of the Federal Government, including government

corporations.

Covered benefit payment means a Federal benefit payment payable to

an individual under the Social Security Act (other than SSI payments),

part B of the Black Lung Benefits Act, or any law administered by the

Railroad Retirement Board (other than payments that such Board

determines to be tier 2 benefits). The amount of the covered benefit

payment payable to a debtor for purposes of this section will be the

amount after reduction or deduction required under the laws authorizing

the program. Reductions to recover benefit overpayments are excluded

from the covered benefit payment when calculating amounts available for

offset.

Creditor agency means a Federal agency owed a debt that seeks to

collect that debt through administrative offset.

Debt or claim means an amount of money, funds, or property which

has been determined by an agency official to be due the United States

from any person, organization, or entity except another Federal agency.

Debt or claim does not include a debt or claim arising under the

Internal Revenue Code of 1986 or the tariff laws of the United States.

Debtor means a person who owes a debt. The term ``person'' includes

any individual, organization or entity, except another Federal agency.

Disbursing official means an official who has authority to disburse

public money pursuant to 31 U.S.C. 3321 or another law, including an

official of the Department of the Treasury, the Department of Defense,

the United States Postal Service, or any other government corporation,

or any official of the United States designated by the Secretary of the

Treasury to disburse public money.

FMS means the Financial Management Service, a bureau of the

Department of the Treasury.

Monthly covered benefit payment means a covered benefit payment

payable to a payee on a recurring basis at monthly intervals that is

not expressly limited in duration, at the time the first payment is

made, to a period of less than 12 months.

Payee means a person who is due a payment from a disbursing

official. For purposes of this section, a ``payee'' is a person who is

entitled to the benefit of all or part of a payment from a disbursing

official.

Taxpayer identifying number means the identifying number described

under section 6109 of the Internal Revenue Code of 1986 (26 U.S.C.

6109). For an individual, the taxpayer identifying number generally is

the individual's social security number.

(c) Administrative offset, generally. Disbursing officials shall

offset payments to satisfy, in whole or in part, debts owed by the

payee. Disbursing officials shall compare payment records with records

of debts submitted to FMS for collection by administrative offset. A

match will occur when the taxpayer identifying number and name of the

payee (as defined in paragraph (b) of this section) on a payment record

are the same as the taxpayer identifying number and name of the debtor

on a debt record. When a match occurs and all other requirements for

offset have been met, the disbursing official shall offset the payment

to satisfy, in whole or in part, the debt. Any amounts not offset shall

be paid to the payee. Covered benefit payments, i.e., payments made to

individuals under the Social Security Act (other than Supplemental

Security Income (SSI) payments), part B of the Black Lung Benefits Act,

or any law administered by the Railroad Retirement Board (RRB) (other

than tier 2 benefit payments) are among the types of payments which may

be offset to collect debts owed to the United States. Offset of covered

benefit payments are subject to the limitations contained in this

section. Offsets of covered benefit payments will occur only if the

name and taxpayer identifying number of the person who is entitled to

the benefit of all or a part of the payment matches the name and

taxpayer identifying number of the debtor.

(d) Submission of debts to FMS for collection by administrative

offset. Creditor agencies must notify FMS of all past-due, legally

enforceable debt delinquent for more than 180 days for purposes of

collection by administrative offset. Creditor agencies may notify FMS

of all debt delinquent for less than 180 days for purposes of

collection by administrative offset. Prior to such notification,

creditor agencies must certify to FMS that the debt is past-due,

legally enforceable, and that the creditor agency has provided the

debtor with notice and an opportunity for a review in accordance with

the provisions of 31 U.S.C. 3716(a) and other applicable law.

(e) Offset amount. (1) The amount offset from a monthly covered

benefit payment shall be the lesser of:

(i) The amount of the debt, including any interest, penalties and

administrative costs;

(ii) An amount equal to 15% of the monthly covered benefit payment;

or

(iii) The amount, if any, by which the monthly covered benefit

payment exceeds $750.

(2) A debtor shall not receive a refund of any amounts offset if

the debtor's monthly covered benefit payments are reduced, suspended,

terminated, or otherwise not received for a period of 12 months.

(3) Examples. (i) A debtor receives monthly Social Security

benefits of $850. The amount offset is the lesser of $127.50 (15% of

$850) or $100 (the amount by which $850 exceeds $750). In this example,

the amount offset is $100 (assuming the debt is $100 or more).

(ii) A debtor receives monthly Social Security benefits of $1250.

The amount offset is the lesser of $187.50 (15% of $1250) or $500 (the

amount by which $1250 exceeds $750). In this example, the amount offset

is $187.50 (assuming the debt is $187.50 or more).

(iii) A debtor receives monthly Social Security payments of $650.

No amount will be offset because $650 is less than $750.

(f) Notification of offset. (1) Before offsetting a covered benefit

payment, the disbursing official will notify the payee in writing of

the date offset will commence. The notice shall inform the payee of the

type of payment that will be offset; the identity of the creditor

agency which requested the offset; and a contact point within the

creditor agency that will handle concerns regarding the offset.

[[Page 44990]]

(2) The disbursing official conducting the offset will notify the

payee in writing of the occurrence of the offset to satisfy, in whole

or in part, a delinquent debt owed to the United States. The notice

shall inform the payee of the type and amount of the payment that was

offset; the identity of the creditor agency which requested the offset;

and a contact point within the creditor agency that will handle

concerns regarding the offset.

(3) Non-receipt by the debtor of the notices described in

paragraphs (f)(1) and (f)(2) of this section shall not impair the

legality of the administrative offset.

(g) Fees. A fee which FMS has determined to be sufficient to cover

the full cost of the offset procedure, shall be deducted from each

offset amount. Creditor agencies may add this fee to the debt if not

otherwise prohibited by law.

(h) Disposition of amounts collected. The disbursing official

conducting the offset will transmit amounts collected for debts, less

fees charged under paragraph (g) of this section, to the appropriate

creditor agency. If an erroneous offset payment is made to a creditor

agency, the disbursing official will notify the creditor agency that an

erroneous offset payment has been made. The disbursing official may

deduct the amount of the erroneous offset payment from future amounts

payable to the creditor agency. Alternatively, upon the disbursing

official's request, the creditor agency shall return promptly to the

disbursing official or the affected payee an amount equal to the amount

of the erroneous payment. The disbursing official and the creditor

agency shall adjust the debtor records appropriately.

Dated: August 13, 1998.

Richard L. Gregg,

Commissioner.

[FR Doc. 98-22394 Filed 8-20-98; 8:45 am]

BILLING CODE 4810-35-P