Regular monthly installment payments will prevent FSO if it has not yet started. Installment
payments will not stop FSO if it has begun.
FSO is an enforced collection that guarantees the recovery of some or all of the debt
while the debtor remains a Federal employee. We want to prevent manipulation of the
system by people who do not make good faith offers to repay. Also, FSO is a complex
process requiring communication among the debtor, SSA, and the Department of Treasury.
Therefore, to prevent repeated efforts to stop and resume this complex process, we
have decided that installment payments after FSO has begun will not stop that collection
method.
IMPORTANT: In any discussion with a debtor who wants to make installment payments in the hope
of stopping FSO, advise the person that installment payments will not stop FSO if
it has begun. In addition advise the person that if an installment agreement is submitted
but a payment is not received before FSO begins, SSA will not stop FSO. SSA will still
accept the payments but FSO will continue.
If FSO has not begun, stress to the debtor that regular monthly payments are required
to prevent SSA's use of FSO. Any lapse in regular payments can result in SSA's use
of FSO.
Take the following action to process an installment agreement when FSO has not begun:
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Refer the request to the servicing FO via MDW (non-MSSICS cases) or via Development
Worksheet (MSSICS cases).
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Advise the caller that someone from the FO will contact him/her about the request.
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Record the action taken on DMS Remarks.
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Attempt to negotiate a rate of repayment which would permit full recovery within 12
months.
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If that is not possible, try to establish a rate of repayment which will permit full
recovery within 60 months.
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If that is not possible, minimum payments of at least $10 per month are required unless
there are unusual circumstances.
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If you negotiate an agreement (person agrees to pay back $10 per month or more):
(1) Complete the Overpayment Decisions (UOPD) screen in Direct SSR Update (MS 00304.008)
to reflect the negotiated agreement.
(2) Tell the debtor to send the payment(s) in the envelope that was provided with
the overpayment notice.
(3) If the debtor does not have the envelope, give him/her the address for sending
in remittances:
MATPSC
P.O. Box 3430
Philadelphia, PA 19122
(4) Record the action taken on DMS Remarks.
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Tell the debtor that an immediate payment, followed by regular monthly payments, could
result in the prevention of SSA's use of FSO.
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If the debtor is present in the FO and makes a payment, process the remittance per
instructions in GN 02403.006.
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Tell the debtor that an immediate payment, followed by regular monthly payments, could
result in the prevention of SSA's use of FSO.