Background

This transmittal adds section I-2-8-80 to the Hearings, Appeals and Litigation Law (HALLEX) manual to provide information about the collection of overpayments from Federal employees through the use of Federal Salary Offset (FSO) and to provide instructions for the Office of the Chief Administrative Law Judge (OCALJ) when adjudicating FSO cases.

Explanation of Content and Changes

Section I-2-8-80 is organized as follows:

I-2-8-80 – We created a new section titled “Federal Salary Offset Procedures.”

I-2-8-80 A – We added a subsection titled “Authority,” and we outline the authority for the FSO process.

I-2-8-80 B – We added a subsection titled “Description of FSO.” We include a general description of the FSO process, as well as references to applicable Program Operations Manual System provisions.

I-2-8-80 C – We added a subsection titled “Office of Disability Adjudication and Review (ODAR) Responsibility in FSO Actions.” We provide a general description of how the Social Security Administration processes FSO actions, when ODAR becomes involved in an FSO action, and what actions are required by an ODAR reviewing official when adjudicating an FSO action.

I-2-8-80 D – We added a subsection titled “OCALJ Instructions for Processing FSO Cases.” We provide specific procedures for reviewing the existence or amount of a debt or reviewing a reduction in FSO due to financial hardship.

Date: October 7, 2015