United States Department of Labor 

Employees’ Compensation Appeals Board 

__________________________________________ 

M.N., Appellant 

and 

DEFENSE AGENCIES DLA, DISTRIBUTION 

REGION WEST INJURY COMPENSATION 

CENTER, Fort Belvoir, VA, Employer 

__________________________________________ 

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Docket No. 16-0360 

Issued: July 5, 2016 

Appearances: Case Submitted on the Record

Appellant, pro se 

Office of Solicitor, for the Director 

DECISION AND ORDER 

Before: 

CHRISTOPHER J. GODFREY, Chief Judge 

COLLEEN DUFFY KIKO, Judge 

ALEC J. KOROMILAS, Alternate Judge 

JURISDICTION 

On December 21, 2015 appellant filed a timely appeal from a November 19, 2015 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 over the merits of this case. 

ISSUES 

The issues are: (1) whether appellant received a $451.58 overpayment of compensation 

for the period July 26 through August 22, 2015; (2) whether OWCP abused its discretion in 

denying waiver of the overpayment; and (3) whether it properly found the overpayment should 

be recovered by deducting $225.79 monthly from appellant’s continuing compensation 

payments. 

 1

 5 U.S.C. § 8101 et seq.
2

FACTUAL HISTORY 

OWCP accepted that on May 17, 1984 appellant, then a 43-year-old preservation 

servicer, sustained a thoracic sprain in the performance of duty. Appellant stopped work on 

October 24, 1984 and began receiving compensation benefits for which she was placed on the 

periodic rolls. 

In a FECA periodic disability payment report, the record reflected that appellant’s health 

benefit insurance premium totaled $451.58 every 28 days. Health benefits in the amount of 

$451.58 were deducted from appellant’s gross compensation for the period June 28 through 

July 25, 2015. 

By letter dated July 31, 2015, the National Postal Mail Handlers Union (the Union) 

reported that appellant was delinquent in her required membership dues and requested that her 

enrollment in the Mail Handlers Health Benefit Plan be terminated. 

In a FECA periodic disability payment plate, health benefit enrollment was suspended for 

the compensation period July 26 through August 22, 2015. 

By letter dated August 14, 2015, the Union reported that the prior information provided 

had been incorrect and that appellant was current in her dues. It requested that her health 

insurance benefits be reinstated. 

In a FECA periodic disability payment plate, OWCP reinstated appellant’s health benefits 

in the amount of $451.58 to be deducted from gross compensation for the period August 23 

through September 19, 2015. 

In an August 28, 2015 Fiscal Payment Worksheet, it was determined that appellant owed 

$451.58 for health benefit premiums for the period July 26 through August 22, 2015. 

On September 29, 2015 OWCP made preliminary findings of an overpayment of $451.58 

for the period July 26 through August 22, 2015 because health insurance premiums had not been 

collected. OWCP found that appellant was without fault in the creation of the overpayment. 

As OWCP determined that appellant was without fault in the creation of the 

overpayment, it requested that she submit financial information pursuant to an enclosed 

overpayment recovery questionnaire (OWCP-20 form) within 30 days if she were requesting 

waiver of the overpayment. It further informed appellant that she could submit additional 

evidence in writing, or at a prerecoupment hearing, but that a prerecoupment hearing must be 

requested within 30 days of the date of the written notice of overpayment. 

On October 26, 2015 appellant disagreed with the fact and amount of overpayment and 

requested a waiver of repayment. She argued that she should not be required to repay the 

overpayment because it occurred through no fault of her own. No evidence was received with 

appellant’s appeal and she had not submitted the overpayment recovery questionnaire. 

By decision dated November 19, 2015, OWCP finalized the overpayment in the amount 

of $451.58 for the period July 26 through August 22, 2015 because deductions had not been 
3

deducted for health benefit insurance premiums. It further found that appellant was not at fault 

in the creation of the overpayment; however, because appellant had not submitted the requested 

financial information, the overpayment was not subject to waiver. Thus, there was no evidence 

in the record that recovery of the overpayment would defeat the purpose of FECA or be against 

equity and good conscience. Based on the evidence of record, OWCP found that she could repay 

the overpayment by deducting $225.79 from continuing compensation payments every 28 days 

beginning December 13, 2015. It noted that the overpayment would be absorbed by 

approximately January 10, 2016. 

LEGAL PRECEDENT -- ISSUE 1 

Section 8102(a) of FECA provides that the United States shall pay compensation for the 

disability or death of an employee resulting from personal injury sustained while in the 

performance of his duty.2 Section 8129(a) of FECA provides, in pertinent part: 

“When an overpayment has been made to an individual under this subchapter 

because of an error of fact or law, adjustment shall be made under regulations 

prescribed by the Secretary of Labor by decreasing later payments to which an 

individual is entitled.”3

In each pay period for which health benefits withholding or direct premium payments are 

not made, but during which the enrollment of an employee or annuitant continues, he or she 

incurs an indebtedness due the United States in the amount of the proper employee withholding 

required for that pay period.4 The regulations further provide that an agency that withholds less 

than or none of the proper health benefits contributions from an individual’s pay, annuity, or 

compensation must submit an amount equal to the sum of the uncollected deductions and any 

applicable agency contributions required under 5 U.S.C. § 8906 to OPM for deposit in the 

Employee’s Health Benefits Fund.5

ANALYSIS -- ISSUE 1 

The Board finds that OWCP properly determined that appellant received an overpayment 

of compensation in the amount of $451.58 for the period July 26 through August 22, 2015.6

Appellant’s health benefit insurance premiums were not deducted from her gross 

compensation during the period July 26 through August 22, 2015. As no deduction had been 

made for health insurance premiums during the 28-day calendar cycle covering the period 

 2

 5 U.S.C. § 8102(a). 

3 Id. at § 8129(a). 

4

 5 C.F.R. § 890.502(b)(1). 

5 Id. at § 890.502(d); see John Skarbek, 53 ECAB 630, 632-33 (2002); Jennifer Burch, 48 ECAB 633 (1997). 

6 S.W., Docket No. 11-895 (issued December 5, 2011). 
4

July 26 through August 22, 2015, OWCP properly found that an overpayment in the amount of 

$451.58 occurred.7 

LEGAL PRECEDENT -- ISSUE 2 

The waiver or refusal to waive an overpayment of compensation by OWCP is a matter 

that rests within OWCP’s discretion pursuant to statutory guidelines.8

 These statutory guidelines 

are found in section 8129(b) of FECA which states: Adjustment or recovery [of an 

overpayment] by the United States may not be made when incorrect payment has been made to 

an individual who is without fault and when adjustment or recovery would defeat the purpose of 

this subchapter or would be against equity and good conscience.9 If OWCP finds a claimant to 

be without fault in the matter of an overpayment, then, in accordance with section 8129(b), 

OWCP may only recover the overpayment if it determined that recovery of the overpayment 

would neither defeat the purpose of FECA nor be against equity and good conscience. 

Section 10.438 of the implementing federal regulations provide that the individual who 

received the overpayment is responsible for providing information about income, expenses, and 

assets as specified by OWCP.10 This information is needed to determine whether recovery of an 

overpayment would defeat the purpose of FECA or be against equity and good conscience. The 

regulations further provide that failure to submit the requested information within 30 days of the 

request shall result in the denial of waiver and no further request for waiver shall be considered 

until the requested information is furnished.11

ANALYSIS -- ISSUE 2 

In this case, appellant was found to be without fault in the creation of the overpayment. 

Accompanying the September 29, 2015 preliminary notice of overpayment was an OWCP-20 

form overpayment recovery questionnaire in which appellant was to provide information about 

her income, assets, and expenses. Appellant failed to submit the completed overpayment 

recovery questionnaire with supporting financial information. Further, she made no argument 

that she gave up a valuable right or changed her position for the worse in reliance on the 

overpaid compensation. 

 

 7 R.M., Docket No. 08-1848 (issued September 24, 2009). 

8 See Robert Atchison, 41 ECAB 83, 87 (1989). 

9

 5 U.S.C. § 8129(b). 

10 20 C.F.R. § 10.438(a). 

11 Id. at § 10.438(b). 
5

By failing to submit the requested information, as required by section 10.438 of its 

regulations, appellant was not entitled to a waiver.12 The Board finds that OWCP properly 

denied waiver of recovery of the $451.58 overpayment of compensation.13

LEGAL PRECEDENT -- ISSUE 3 

The individual who received the overpayment is responsible for providing information 

about income, expenses, and assets as specified by OWCP. This information will be used to 

determine the repayment schedule, if necessary.14

When an overpayment has been made to an individual who is entitled to further 

payments, the individual shall refund to OWCP the amount of the overpayment as soon as the 

error is discovered or his or her attention is called to the same. If no refund is made, OWCP 

shall decrease later payments of compensation, taking into account the probable extent of future 

payments, the rate of compensation, the financial circumstances of the individual, and any other 

relevant factors, so as to minimize any hardship.15

ANALYSIS -- ISSUE 3 

Appellant receives $2,377.00 in continuing gross compensation benefits every 28 days. 

OWCP determined that the overpayment could be recovered by deducting $225.79 from her 

continuing compensation payments every 28 days. The Board notes that a claimant is 

responsible for submitting necessary information with respect to income, expenses, and assets as 

required by OWCP.16 In this case, appellant failed to submit any information regarding her 

financial circumstances to sufficiently document her income and expenses. 

Thus, the Board finds that OWCP did not abuse its discretion and took into consideration 

the factors set forth in 20 C.F.R. § 10.441 to minimize hardship.17 OWCP followed collection 

guidelines by requiring installments large enough to collect the debt promptly and minimizing 

any resulting hardship on appellant.18 Therefore, the Board finds OWCP properly required 

 12 Id. 

13 B.T., Docket No. 14-1669 (issued December 28, 2015); M.S., Docket No. 11-96 (issued August 17, 2011). 

14 Id.

15 20 C.F.R. § 10.441(a).

16 R.H., Docket No. 09-1981 (issued June 11, 2010). 

17 W.M., Docket No. 13-291 (issued June 12, 2013). 

18 OWCP found that appellant could repay the overpayment by deducting $225.79 from continuing compensation 

payments every 28 days beginning December 13, 2015. It noted that the debt would be paid in full on 

January 10, 2016. E.J., Docket No. 15-1734 (issued April 12, 2016). 
6

repayment of the overpayment by deducting $225.79 from appellant’s continuing compensation 

payments every 28 days.19 

On appeal appellant argues that she paid her union dues and provided a copy of a 

cancelled check in support of her claim. As appellant was found to be without fault in the 

creation of the overpayment, this argument is irrelevant to her overpayment claim. 

CONCLUSION 

The Board finds that OWCP properly determined that appellant received a $451.58 

overpayment of compensation for the period July 26 through August 22, 2015. The Board 

further finds that she was not at fault for the overpayment and that OWCP properly denied 

waiver of the overpayment based on the evidence of record. The Board also finds that OWCP 

properly determined the overpayment should be recovered by deducting $225.79 from 

continuing compensation every 28 days. 

ORDER 

IT IS HEREBY ORDERED THAT the November 19, 2015 decision of the Office of 

Workers’ Compensation Programs is affirmed. 

Issued: July 5, 2016 

Washington, DC 

 

 Christopher J. Godfrey, Chief Judge 

 Employees’ Compensation Appeals Board 

 

 Colleen Duffy Kiko, Judge 

 Employees’ Compensation Appeals Board 

 

 Alec J. Koromilas, Alternate Judge 

 Employees’ Compensation Appeals Board 

 19 M.G., Docket No. 07-2317 (issued April 11, 2008).