The MSPB may collect debts owed by administrative offset if:

The debt is certain in amount;

Efforts to obtain direct payment have been, or would most likely be unsuccessful, or the MSPB and the debtor agree to the offset;

Offset is cost effective or has significant deterrent value; and

Offset is best suited to further and protect the Government's interest.

The MSPB may offset a debt owed to another Federal agency from amounts due or payable by the MSPB to the debtor or request another Federal agency to offset a debt owed to the MSPB;

Prior to initiating administrative offset, the MSPB will send the debtor written notice of the following:

The nature and amount of the debt and the agency's intention to collect the debt by offset 30 days from the date the notice was mailed if neither payment nor a satisfactory response is received by that date;

The debtor's right to an opportunity to submit a good faith alternative repayment schedule to inspect and copy agency records pertaining to the debt, to request a review of the determination of indebtedness; and to enter into a written agreement to repay the debt; and

The applicable interest.

The MSPB may effect an administrative offset against a payment to be made to a debtor prior to the completion of the procedures required by paragraph (c) of this section if:

Failure of offset would substantially prejudice the Government's ability to collect the debt; and

The time before the payment is to be made does not reasonably permit completion of those procedures.