[Federal Register Volume 77, Number 123 (Tuesday, June 26, 2012)]
[Notices]
[Pages 38041-38042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15506]


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DEPARTMENT OF DEFENSE

Office of the Secretary


TRICARE Management Activity Adoption of Department of the 
Treasury's Administrative Wage Garnishment Procedures

AGENCY: TRICARE Management Activity (TMA), DoD.

ACTION: Adoption of Department of the Treasury administrative wage 
garnishment procedures.

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SUMMARY: This notice is to advise TRICARE sponsors, beneficiaries, 
providers, physicians, other suppliers of services or supplies, and any 
other persons who for any reason have been erroneously paid under 
TRICARE, that TRICARE Management Activity (TMA) is adopting by 
reference Department of the Treasury (Treasury) administrative wage 
garnishment procedures as established at 31 CFR 285.11. By adopting 
this regulation, TMA will authorize Treasury's Financial Management 
Service (FMS), to use administrative wage garnishment as an additional 
tool to collect TMA's debts once such legally enforceable non-tax debts 
are transferred to Treasury for collection through cross servicing 
pursuant to 32 CFR 199.11(f)(6)(vi). When a TMA debtor is employed in 
the private sector or by a state or local government, Treasury may be 
able to collect the debt by garnishing a portion of the debtor's 
disposable pay as defined

[[Page 38042]]

in 31 CFR 285.11. Administrative wage garnishment will not affect a 
significant number of TMA debtors, as TMA estimates 6% of its debt 
cases and less than 0.3% of total debt may be eligible for collection 
with this tool.

DATES: TMA's adoption of the Department of the Treasury's 
administrative wage garnishment procedures is effective 30 days after 
publication of the notice.

ADDRESSES: TRICARE Management Activity (TMA), Claims Collection 
Section, Office of General Counsel, 16401 East Centretech Parkway, 
Aurora, CO 80011-9066.

FOR FURTHER INFORMATION CONTACT: Michael R. Bibbo, TRICARE Management 
Activity, Office of General Counsel, telephone (303) 676-3705.

SUPPLEMENTARY INFORMATION: TMA's authority to recover overpayments is 
outlined in 32 CFR 199.11. The Federal Claims Collection Act, as 
amended by the Debt Collection Act of 1982 and the Debt Collection 
Improvement Act of 1996, and Treasury regulations implementing these 
statutes, provides the basic authority under which claims may be 
asserted pursuant to Sec.  199.11. Specific recoupment procedures are 
listed at 32 CFR 199.11(f)(6), including collection by transfer of 
debts to Treasury or a Treasury-designated debt collection center for 
collection through cross servicing per 32 CFR 199.11(f)(6)(vi). 
Pursuant to Title 31, United States Code (U.S.C.), Section 3711(g) and 
31 CFR 285.12, the Director, TMA is required to transfer legally 
enforceable non-tax debts that have been delinquent for more than 180 
days to Treasury's FMS for collection. The FMS cross-servicing program 
uses various means to collect debts, including offsetting federal 
payments, the use of private collection agencies and the garnishment of 
wages through administrative wage garnishment procedures. The Treasury 
Financial Manual, Part 4-Chapter 4000, requires agencies transferring 
debts to FMS to have administrative wage garnishment procedures or 
regulations.
    Federal agencies are authorized to collect delinquent nontax debt 
owed to the United States from debtors' wages by means of 
administrative wage garnishment in accordance with the requirements of 
31 U.S.C. 3720D and 31 CFR 285.11. The implementing regulations provide 
due process for nontax debtors. Agencies may prescribe their own 
conforming regulations, containing the same substantive and procedural 
requirements as the Treasury final rule on wage garnishment, for the 
conduct of administrative wage garnishment hearings. In the 
alternative, creditor agencies may adopt Treasury's administrative wage 
garnishment regulation, 31 CFR 285.11, without change by reference in 
order to authorize Treasury to use administrative wage garnishment as 
one of many debt collection remedies available to collect delinquent 
debts transferred to Treasury by a creditor agency.
    Administrative wage garnishment is available for use against a 
narrow class of TMA's debtors. For a debtor's wages to be garnished, he 
or she must be an individual employed in the private sector or by a 
state or local government. TMA's debtors are primarily commercial 
medical providers. In addition, TMA debtors are often active duty or 
reserve military members or retirees whose debts are frequently 
satisfied by offsetting federal salary or retirement payments through 
the Defense Finance and Accounting Service. In January 2012, TMA had 
1,821 open debt cases, 105 of which may have been subject to 
administrative wage garnishment. As these debts are generally much 
smaller than those incurred by commercial providers, they represent 
less than 0.3% of TMA open debt. With this notice, TMA adopts, without 
change, all of the provisions of 31 CFR 285.11 concerning 
administrative wage garnishment, including the Treasury hearing 
procedures described in 31 CFR 285.11(f). At least thirty (30) days 
prior to FMS initiating an administrative wage garnishment, FMS will 
send notice to the debtor, in accordance with the requirements of 31 
CFR 285.11(e), informing the debtor that administrative wage 
garnishment will be initiated and how the debtor may request a hearing. 
If a debtor makes a timely hearing request, administrative wage 
garnishment will not begin until a hearing is held and a decision is 
sent to the debtor in accordance with the provisions of 31 CFR 
285.11(f)(4). If a debtor's hearing request is untimely, FMS may 
suspend collection by administrative wage garnishment in accordance 
with the provisions of 31 CFR 285.11(f)(5). All travel expenses 
incurred by the debtor in connection with an in-person hearing will be 
borne by the debtor. This regulation does not apply to federal salary 
offset, the process by which federal agencies collect debts from the 
salaries of federal employees. Additionally, when TMA collects debts of 
military members or retirees through offsetting Defense Finance and 
Accounting Service payments, the provisions of 32 CFR 199.11(f)(6)(vii) 
govern.

    Dated: June 20, 2012.
Patricia Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2012-15506 Filed 6-25-12; 8:45 am]
BILLING CODE 5001-06-P