United States Department of Labor 

Employees’ Compensation Appeals Board 

__________________________________________ 

C.S., Appellant 

and 

DEPARTMENT OF VETERANS AFFAIRS, 

CANANDIAGUA VETERANS MEDICAL 

CENTER, Canandaigua, NY, Employer 

__________________________________________ 

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Docket No. 16-0784 

Issued: July 21, 2016 

Appearances: Case Submitted on the Record

Appellant, pro se 

Office of Solicitor, for the Director 

DECISION AND ORDER 

Before: 

PATRICIA H. FITZGERALD, Deputy Chief Judge 

COLLEEN DUFFY KIKO, Judge 

ALEC J. KOROMILAS, Alternate Judge 

JURISDICTION 

On March 10, 2016 appellant filed a timely appeal of a January 28, 2016 merit decision 

of the Office of Workers’ Compensation Programs (OWCP). Pursuant to the Federal 

Employees’ Compensation Act1

 (FECA) and 20 C.F.R. §§ 501.2(c) and 501.3, the Board has 

jurisdiction to consider the merits of this case. 

ISSUE 

The issue is whether OWCP properly reduced appellant’s compensation to reflect the 

offset for the federal employment portion of her social security retirement benefits. 

On appeal appellant contends that OWCP erred in reducing her compensation. 

 1

 5 U.S.C. § 8101 et seq. 
2

FACTUAL HISTORY 

On July 9, 2012 appellant, then a 64-year-old health science specialist, filed an 

occupational disease claim (Form CA-2) alleging that on July 5, 2012 she first became aware 

that her asthma had been aggravated by dust caused by construction in her work area. She did 

not stop work and was relocated to another location until construction was done. OWCP 

accepted the claim for asthma, as well as appellant’s later claim for a recurrence of disability 

(Form CA-2a) beginning May 10, 2014. 

Appellant received supplemental roll benefits as of May 10, 2014 until she was placed on 

the periodic rolls as of November 16, 2014. 

In a January 6, 2016 Federal Employees’ Retirement System (FERS) and Social Security 

Administration (SSA) Dual Benefits Calculations worksheet, SSA noted appellant’s receipt of 

SSA benefits and provided her SSA rate with FERS and SSA rate without FERS from May 2014 

through December 2015. Effective December 2014 and December 2015, it noted her current 

monthly SSA rate with FERS was $2,220.10 and her SSA rate without FERS was $2,085.10, a 

difference of $135.00. 

By decision dated January 28, 2016, OWCP informed appellant that her compensation 

payments would be reduced by $124.62. It explained that SSA benefits were paid monthly or 12 

payments per year while FECA benefits were paid every 28 days or 13 payments per year. 

OWCP then calculated the monthly SSA offset by dividing $135.00 (the difference between 

$2,220.10 and $2,085.10) by 12/13 resulting in an offset amount of $124.62. It also advised 

appellant that the annual increases in SSA benefits would result in an increased offset for her 

FECA benefits. 

LEGAL PRECEDENT 

Once OWCP accepts a claim and pays compensation, it has the burden of justifying 

modification or termination of an employee’s benefits.2

 

Section 8116(d) of FECA requires that compensation benefits be reduced by the portion 

of SSA benefits based on age or death that are attributable to federal service.3

 If an employee 

receives SSA benefits based on federal service, her compensation benefits shall be reduced by 

the amount of SSA benefits attributable to her federal service. 

OWCP procedures provide that, while SSA benefits are payable concurrently with FECA 

benefits, the following restrictions apply: in disability cases, FECA benefits will be reduced by 

SSA benefits paid on the basis of age and attributable to the employee’s federal service.4

 The 

offset of FECA benefits by SSA benefits attributable to employment under FERS is calculated as 

 2 S.F., 59 ECAB 642 (2008); Kelly Y. Simpson, 57 ECAB 197 (2005); Paul L. Stewart, 54 ECAB 824 (2003). 

3

 5 U.S.C. § 8116(d). See N.R., Docket No. 12-1853 (issued June 10, 2013). 

4

 Federal (FECA) Procedure Manual, Part 2 -- Claims, Dual Benefits, Chapter 2.1000.4(e)(2) (January 1997); 

Chapter 2.1000.11 (February 1995). 
3

follows: where a claimant has received SSA benefits, OWCP will obtain information from SSA 

on the amount of the claimant’s benefits beginning with the date of eligibility to FECA benefits. 

SSA will provide the actual amount of SSA benefits received by the claimant/beneficiary. It will 

also provide a hypothetical SSA benefit computed without FERS covered earnings. OWCP will 

then deduct the hypothetical benefit from the actual benefit to determine the amount of benefits 

which are attributable to federal service and that amount will be deducted from FECA benefits to 

obtain the amount of compensation payable.5

ANALYSIS 

OWCP accepted appellant’s claim for asthma. Appellant received compensation benefits 

on the periodic rolls as of November 16, 2014. By decision dated January 28, 2016, OWCP 

reduced her wage-loss compensation to reflect the offset of FERS on her SSA benefits. As noted 

above, FECA benefits must be reduced by SSA benefits paid on the basis of age and attributable 

to the employee’s federal service. As appellant was in receipt of compensation benefits on the 

periodic rolls, it is OWCP’s burden to justify reduction. 

The Board finds that OWCP has met its burden to justify reduction of appellant’s 

compensation benefits. The SSA provided the SSA rate with FERS and the hypothetical SSA 

rate without FERS. The difference between the amounts must be deducted from FECA benefits, 

as noted above. Based on the information provided by the SSA, OWCP determined that $124.62 

should be deducted from appellant’s continuing wage-loss compensation. No contrary evidence 

was presented. 

On appeal appellant argues that OWCP erred in reducing her compensation benefits 

based on her SSA benefits without FERS. She argues that SSA included her part-time earnings 

for a nonfederal employer when it calculated her FERS offset as she worked for both the 

employing establishment and a nonfederal employer at the same time. Appellant also contends 

that the January 28, 2016 decision was invalid as it contained no appeal rights. 

The Board finds that appellant’s arguments do not establish that OWCP incorrectly 

reduced her compensation. Appellant has submitted no evidence showing that SSA incorrectly 

included wages from a nonfederal employer in its FERS offset calculation as claimed. While she 

is correct that the January 28, 2016 decision contained no appeal rights, appellant did perfect her 

appeal with the Board and appealed this decision on March 25, 2016 to the Board thus has not 

been prejudiced by not receiving her appeal rights. Therefore, OWCP’s failure to enclose appeal 

rights constitutes harmless error.6

 

Appellant may submit new evidence or argument with a written request for 

reconsideration to OWCP within one year of this merit decision, pursuant to 5 U.S.C. § 8128(a) 

and 20 C.F.R. §§ 10.605 through 10.607. 

 5 See W.C., Docket No. 15-1280 (issued November 13, 2015). 

6 See Dorothy A. Noval, Docket No. 93-2351 (issued May 15, 1995). 
4

CONCLUSION 

The Board finds that OWCP properly reduced appellant’s compensation to reflect the 

offset for her federal employment portion of her social security retirement benefits. 

ORDER 

IT IS HEREBY ORDERED THAT the decision of the Office of Workers’ 

Compensation Programs dated January 28, 2016 is affirmed. 

Issued: July 21, 2016 

Washington, DC 

 

 Patricia H. Fitzgerald, Deputy Chief Judge 

 Employees’ Compensation Appeals Board 

 

 Colleen Duffy Kiko, Judge 

 Employees’ Compensation Appeals Board 

 

 Alec J. Koromilas, Alternate Judge 

 Employees’ Compensation Appeals Board