TREASURY DIRECTIVE 34-01

DATE: April 22, 2015

SUBJECT: Waiving Claims Against Treasury Employees for Erroneous Payments

  1. PURPOSE. This directive delegates certain authority and establishes responsibilities for waiving claims by the Government against an employee for erroneous payments of:
    1. pay and allowances (e.g., health and life insurance) and
    2. travel, transportation, and relocation expenses and allowances.
  2. SCOPE. This directive applies to all bureaus, offices, and organizations in the Department of the Treasury, including the offices of Inspectors General within the Department. The provisions of this directive shall not be construed to interfere with or impede the authorities or independence of the Department’s Inspectors General.
  3. BACKGROUND.
    1. Section 5584 of Title 5, United States Code (5 USC 5584) authorizes the waiver of claims by the United States, in whole or in part, against an employee arising out of erroneous payments of pay and allowances, travel, transportation, and relocation expenses and allowances. A waiver may be considered when collection of the claim would be against equity and good conscience and not in the best interest of the United States. A waiver may not be considered if there exists, in connection with the claim, an indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim.
    2. Under 5 USC 5584, the head of the agency is authorized to waive claims for erroneous payments when the claim is not more than $1,500. The authority to waive claims for erroneous payments exceeding $1,500 is provided to the Director, Office of Management and Budget (OMB), who has redelegated this authority to the executive agency that made the erroneous payment.
  4. DELEGATION. The authority to grant or deny, in whole or in part, a request for waiver of claims, in accordance with the standards in 5 USC 5584, is delegated to:
    1. the Department’s Inspectors General for claims against employees of their respective offices;
    2. the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO) for claims against employees of Departmental Offices;
    3. the Heads of Bureaus for claims against employees of their respective bureaus aggregating less than $7,500 per claim or such higher amount as the DASHR/CHCO shall redelegate under paragraph 5.c.; and
    4. the DASHR/CHCO for claims against employees of Treasury bureaus (excluding the Department’s Inspectors General) not delegated under paragraph 4.c.
  5. REDELEGATION.
    1. The Department’s Inspectors General may redelegate their respective authority and responsibility.
    2. The DASHR/CHCO, with respect to authority delegated under paragraph 4.b., and heads of bureaus may redelegate their respective authority and responsibility to the bureau position that warrants such authority, for example the highest ranking human resources official, Chief Financial Officer (CFO), or Deputy CFO.
    3. The DASHR/CHCO may redelegate to a bureau head authority with respect to claims arising in that bureau of an amount aggregating to more than $7,500.
    4. The DASHR/CHCO may redelegate his or her authority and responsibility under paragraph 4.d.
  6. APPEALS.
    1. Requests for waiver of claims against employees of Departmental Offices which are denied, in whole or in part, may be appealed to a designated position one-level higher than the deciding official.
    2. Requests for waiver of claims which are denied, in whole or in part, by Treasury bureaus (excluding the Department’s Inspectors General) may be appealed to the DASHR/CHCO.
    3. Requests for waiver of claims against employees of the Department’s Inspectors General which are denied, in whole or in part, may be appealed to a position designated by the Department’s Inspectors General.
    4. Requests for waiver of claims that are delegated to the DASHR/CHCO, which are denied, in whole or in part, by the DASHR/CHCO may be appealed to the Assistant Secretary for Management.
  7. RESPONSIBILITIES. The heads of bureaus, the Department’s Inspectors General, the DASHR/CHCO, or their designees, consistent with Treasury Directive Publication 34-01, shall:
    1. promptly notify an employee upon discovery of an erroneous payment to that employee.
    2. promptly act to collect the erroneous overpayment following established debt collection policies and procedures.
    3. establish reasonable time frames for employees to request a waiver in writing and for the deciding officials to review the waiver request. These time frames must take into consideration the responsibilities of the United States to take prompt action to pursue enforced collection on overdue debts, which may arise from erroneous payments.
    4. notify an employee whose request for waiver of claim is denied, in whole or in part, of the basis for the denial and the right to appeal the denial. All appeals must:
      1. 1) be submitted, in writing, to the official who denied the waiver request no later than 60 days from receipt by the employee of written notice of the denial of the waiver;
      2. 2) specify the basis for the appeal;
      3. 3) include a chronology of the events surrounding the erroneous payments;
      4. 4) include a statement regarding any mitigating factors; and
      5. 5) include the employee’s original request for a waiver; the deciding official’s denial of the request; an administrative report of the facts; the deciding official’s conclusion for the basis of the denial; and copies of any personnel actions (e.g., promotions, demotions, step increases, etc.) that relate to the overpayment.
    5. promptly forward appeals and supporting documentation to the appropriate deciding official with:
      1. 1) a recommendation as to why the appeal should be approved or denied; and
      2. 2) a statement as to the action taken to avoid a recurrence of the error.
    6. If a waiver is granted on appeal, ensure that the employee is refunded any money collected on the debt, including any interest collected.
    7. fulfill all labor relations responsibilities when implementing this directive.
    8. fulfill any other responsibility of the agency imposed by 5 USC 5584, or other applicable laws and regulations.
  8. REFERENCES.
    1. 5 USC 5514, “Installment Deduction for Indebtedness to the United States.”
    2. 5 USC 5584, “Claims for Overpayment of Pay and Allowances, and of Travel, Transportation and Relocation Expenses and Allowances.”
    3. 31 USC 3711, “Collection and Compromise.”
    4. 31 USC 3716, “Administrative Offset.”
    5. 31 USC 3717, “Interest and Penalty on Claims.”
    6. 5 Code of Federal Regulations (CFR) Part 550, subpart K, “Collection by Offset from Indebted Government Employees.”
    7. 31 CFR Part 5, subpart B, “Procedures to Collect Treasury Debts.”
    8. Determination with Respect to Transfer of Functions Pursuant to Public Law 104-316, OMB, December 17, 1996.
  9. AUTHORITY. Treasury Order 102-01, “Delegation of Authority Concerning Personnel Management,” dated January 17, 2008 (reaffirmed February 5, 2013).
  10. CANCELLATION. Treasury Directive 34-01, “Waiver of Claims for Erroneous Payments,” dated January 9, 2009, is superseded.
  11. OFFICE OF PRIMARY INTEREST. Office of the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer.

 

/S/
Brodi Fontenot
Assistant Secretary for Management