United States Department of Labor 

Employees’ Compensation Appeals Board 

__________________________________________ 

S.C., Appellant 

and 

U.S. POSTAL SERVICE, UNIVERSITY 

STATION, Dallas, TX, Employer 

__________________________________________ 

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Docket No. 16-0443 

Issued: May 3, 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 

PATRICIA H. FITZGERALD, Deputy Chief Judge 

COLLEEN DUFFY KIKO, Judge 

JURISDICTION 

On January 11, 2016 appellant filed a timely appeal from an August 10, 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 OWCP properly denied waiver of a $13,319.36 overpayment 

of compensation; and (2) whether it properly found that it would recover the overpayment by 

withholding $200.00 from appellant’s continuing compensation payments. 

FACTUAL HISTORY 

This case has previously been before the Board. In a decision dated April 13, 2015, the 

Board affirmed in part and set aside in part a June 19, 2014 decision finding that appellant 

 1

 5 U.S.C. § 8101 et seq. 
2

received an overpayment of compensation for which she was at fault.2 The Board affirmed 

OWCP’s finding that she received an overpayment of $13,319.36 when it electronically 

transferred compensation owed to another claimant into her bank account. The Board 

determined, however, that appellant was not at fault in creating the overpayment and remanded 

the case for OWCP to consider whether she was entitled to waiver of recovery of the 

overpayment based on current financial information. The facts and circumstances as set forth in 

the prior decision are incorporated herein by reference. 

On June 15, 2015 OWCP requested that appellant submit an overpayment recovery 

questionnaire (Form OWCP-20) with supporting documentation so that it could evaluate whether 

she was entitled to waiver of recovery of the overpayment. It did not provide a deadline for 

submission of the information. OWCP indicated that it was enclosing a blank Form OWCP-20 

with its letter. 

In a decision dated August 10, 2015, OWCP denied waiver of the $13,319.36 

overpayment of compensation. It found that appellant had not responded to its request for 

current financial information. OWCP determined that it would recover the overpayment by 

deducting $200.00 from her continuing compensation payments. 

On appeal appellant contends that OWCP’s June 15, 2015 letter did not advise her that 

she only had 30 days to submit the requested information. She asserts that repaying the 

overpayment would cause severe financial hardship. 

LEGAL PRECEDENT -- ISSUE 1 

OWCP’s regulations provide that, before seeking to recover an overpayment or adjust 

benefits, it will advise the individual in writing that the overpayment exists and the amount of the 

overpayment.3 The written notification must also include a preliminary finding regarding 

whether the individual was at fault in the creation of the overpayment.4 OWCP must inform the 

individual of his or her right to challenge the fact or amount of the overpayment, the right to 

contest the preliminary finding of fault in the creation of the overpayment, if applicable, and the 

right to request a waiver of recovery of the overpayment.5 OWCP’s procedures provide that a 

preliminary finding of overpayment must be provided within 30 days and must clearly identify 

the reason that the overpayment occurred and the basis for any fault finding.6

 

 2

 Docket No. 14-1730 (issued April 13, 2015). OWCP accepted that on September 13, 2011 appellant, then a 50-

year-old city carrier, sprained her left ankle in the performance of duty. It paid her disability compensation 

beginning October 29, 2011. 

3

 20 C.F.R. § 10.431(a). 

4 Id. at § 10.431(b). 

5 Id. at § 10.431(d). 

6

 Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Initial Overpayment Actions, Chapter 

6.200.4(a)(1) (May 2004). 
3

OWCP’s procedures provide, “If the claimant is determined to be without fault, Form 

CA-2202 must be released (along with an OWCP-20) within 30 days of the date the 

overpayment is identified.”7

 (Emphasis in the original.) 

OWCP’s procedures further specify, “Form CA-2202 also informs the claimant of the 

right to submit additional evidence and argument, if the claimant disagrees with the fact or 

amount of the overpayment and if the claimant feels the overpayment should be waived. 

Additional evidence and arguments must be submitted by the claimant within 30 days of the date 

of the letter.”8

ANALYSIS -- ISSUE 1 

On prior appeal, the Board set aside OWCP’s finding that appellant was at fault in the 

creation of an overpayment of $13,319.36. The Board remanded the case for OWCP to consider 

waiver of the overpayment after obtaining current financial information. 

 In a letter dated June 15, 2015, OWCP requested that appellant complete and return an 

enclosed overpayment recovery questionnaire (Form CA-20) with supporting documentation so 

that it could consider waiver of the overpayment. It, however, did not inform her that, in 

accordance with its procedures, she must submit any evidence or argument in support of waiver 

within 30 days.9

 Consequently, as OWCP did not comply with its procedures, the case will be 

remanded for OWCP to provide appellant with a Form OWCP-20 with notice of the 30-day time 

limitation prior to determining whether she is entitled to waiver of recovery of the overpayment. 

CONCLUSION 

The Board finds that the case is not in posture for decision regarding whether OWCP 

properly denied waiver of the overpayment.10

 7 Id. 

8 Id. at Chapter 6.200.4(a)(2) (May 2004). 

9 Id. 

10 In view of the Board’s determination regarding waiver of the overpayment, it is premature to address whether 

OWCP properly determined that the overpayment should be repaid by withholding $200.00 per month from 

continuing compensation. 
4

ORDER 

IT IS HEREBY ORDERED THAT the August 10, 2015 decision of the Office of 

Workers’ Compensation Programs is set aside and the case is remanded for further proceedings 

consistent with this opinion of the Board. 

Issued: May 3, 2016 

Washington, DC 

 

 Christopher J. Godfrey, Chief Judge 

 Employees’ Compensation Appeals Board 

 

 Patricia H. Fitzgerald, Deputy Chief Judge 

 Employees’ Compensation Appeals Board 

 

 Colleen Duffy Kiko, Judge 

 Employees’ Compensation Appeals Board