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Administrative Billings and Collections (ABCO)

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Past Due Health Benefits

When an employee is in non-pay status, it is the Agency’s responsibility to process a personnel action, SF 50, Notification of Personnel Action, with the appropriate Nature of Action Code (NOAC). Also, the one-digit number indicating the correct employment status code (displayed on the Information/Research Inquiry System (IRIS) Program IR101, Salary Data), must be on the SF 50.

If the above is not done, a T&A must be submitted each pay period indicating Transaction Code (TC) 71, Leave Without Pay (LWOP); TC 72, Absent Without Official Leave (AWOL); or TC 73, Suspension.

When an employee enters an LWOP status or pay is insufficient to cover a Federal Employee Health Benefit (FEHB) premium, the employee has the following choices:

Elect in writing to terminate the FEHB coverage.

OR

Elect in writing to continue the FEHB coverage.

Note: Refer to the Code of Federal Regulations (CFR), 5 CFR 890.502 for responsibilities of the employing office.

If the employee elects to continue FEHB coverage, they must elect in writing one of the following:

Note: NFC will continue using this method to deduct the accrued unpaid premiums from salary until the debt is recovered in full. The employee must also agree that if they do not return to duty or the employing office cannot recover the debt in full from salary, the employing office may recover the debt from whatever other sources it normally has available for the recovery of a debt to the Federal government.

NFC will send the employee one of the following upon their return to duty, and the Agency's copy will be loaded to RPCT:

Non-Treasury Department employees will receive the following notices:

Treasury Department employees will receive the following notices:

Note: If the employee does not pay the amount due or make other arrangements to satisfy the debt, NFC will begin making deductions from the employee’s salary beginning the pay period following the due date (30 days from the date on Form NFC-937 or Form NFC-937TR).

See Also

Manually Created Bills

Notice of Overpayment of Salary and Demand for Payment

Employee Separation (From His/Her Agency)

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