United States Department of Labor

Employees’ Compensation Appeals Board

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B.B., Appellant

and

U.S. POSTAL SERVICE, POST OFFICE, 

Jersey City, NJ, Employer

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Docket No. 19-0822

Issued: February 18, 2020

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

ALEC J. KOROMILAS, Alternate Judge

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On March 7, 2019 appellant filed a timely appeal from a January 11, 2019 merit decision 

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

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

the merits of this case.1

ISSUES

The issues are: (1) whether appellant received an overpayment of compensation in the 

amount of $53,510.67 for the period February 1, 2014 through March 31, 2018, for which she was 

without fault, as she concurrently received Social Security Administration (SSA) age-related 

retirement benefits while receiving FECA wage-loss compensation benefits; (2) whether OWCP 

 

1 The Board notes that following the January 11, 2019 decision, OWCP received additional evidence. However, 

the Board’s Rules of Procedure provides: “The Board’s review of a case is limited to the evidence in the case record 

that was before OWCP at the time of its final decision. Evidence not before OWCP will not be considered by the 

Board for the first time on appeal.” 20 C.F.R. § 501.2(c)(1). Thus, the Board is precluded from reviewing this 

additional evidence for the first time on appeal. Id.
2

properly denied waiver of recovery of the overpayment; and (3) whether OWCP properly required 

recovery of the overpayment by deducting $407.41, every 28 days, from appellant’s continuing 

compensation benefits.

FACTUAL HISTORY

On September 20, 2000 appellant, then a 52-year-old mail handler, filed a traumatic injury 

claim (Form CA-1) alleging that on that date she sustained a lower lumbar strain when lifting 

parcels and sorting mail while in the performance of duty. OWCP accepted the claim for

lumbosacral sprain. It paid appellant wage-loss compensation on the periodic rolls as of 

June 16, 2002.

In a letter dated January 22, 2002, OWCP informed appellant that she was being placed on 

the periodic rolls and of her obligations regarding completing an EN1032 form, which required 

the reporting of retirement income, disability income, and compensation benefits she received 

from any federal agency.

In EN1032 forms dated February 20, 2015, February 10, 2016, March 4, 2017, and 

February 22, 2018, appellant indicated that she was not receiving benefits from SSA as part of an 

annuity for her federal service, but that she was in receipt of social security disability benefits.

In a form dated March 26, 2018, SSA advised OWCP that appellant had concurrently 

received FECA benefits and age-related benefits through the Federal Employees Retirement 

System (FERS) for the period February 1, 2014 to date. It provided the amount that appellant 

received in retirement benefits, including the amount earned through FERS and the hypothetical 

amount that she would have received without FERS. With FERS SSA indicated that appellant 

received $1,678.20 effective February 2014; $1,706.70 effective December 2014; $1,711.80 

effective December 2016; and $1,746.00 effective December 2017. Without FERS, SSA indicated 

that appellant was entitled to a monthly entitlement of $627.40 effective February 2014; $638.00 

effective December 2014 and December 2015; $639.90 effective December 2016; and $652.60

effective December 2017.

In a letter dated April 17, 2018, OWCP notified appellant that her compensation would be 

offset by the portion of her SSA age-related retirement benefits attributable to her federal service. 

It indicated that she would receive net compensation of $1,628.21, every 28 days, effective

April 28, 2018.

In a preliminary determination dated May 21, 2018, OWCP notified appellant that she had 

received an overpayment of compensation in the amount of $53,510.67, because her compensation 

benefits had not been reduced for the period February 1, 2014 through March 31, 2018, by the 

portion of her SSA benefits that were attributable to her federal service. It calculated the 

overpayment amount by determining the difference between her SSA amount with and without 

FERS for each period. OWCP then multiplied the daily offset amount by the number of days in 

each period to find a total overpayment of $53,510.67. It further made a preliminary determination 

that appellant was without fault in the creation of the overpayment because she was not aware and 

could not have reasonably been expected to know that she accepted compensation to which she 

was not entitled. OWCP requested that she complete an enclosed overpayment recovery 
3

questionnaire (Form OWCP-20) and submit supporting financial documentation. Additionally, it

notified appellant that, within 30 days of the date of the letter, she could request a telephone 

conference, a final decision based on the written evidence, or a prerecoupment hearing.

Appellant submitted a June 11, 2018 Form OWCP-20 which listed monthly income of 

$4,518.00. She also listed expenses of $1,995.37, which included $1,500.00 for rent, $100.00 for 

food, $40.00 for clothing, $100.00 for utilities, $65.37 and $30.00 for dental and vision insurance,

respectively, $80.00 for health care, and $80.00 for credit card expenses, and other household 

expenses. Appellant noted that she had assets of $505.36. She also submitted financial 

documentation in support of her claim. Appellant claimed that she was never informed that she 

was not entitled to the benefits she received. 

By decision dated January 11, 2019, OWCP finalized its preliminary overpayment

determination finding that appellant had received an overpayment of compensation in the amount 

of $53,510.67 for the period February 1, 2014 through March 31, 2018, because it failed to offset 

her compensation payments by the portion of her SSA age-related retirement benefits that were 

attributable to her federal service. It determined that she was without fault in the creation of the 

overpayment, however, OWCP denied waiver of recovery of the overpayment of compensation 

based on the financial information provided. OWCP determined the overpayment would be 

recovered by deducting $407.41, every 28 days, from appellant’s continuing compensation 

payments.

LEGAL PRECEDENT -- ISSUE 1

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

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

duty.2 Section 8116 limits the right of an employee to receive compensation. While an employee 

is receiving compensation, he or she may not receive salary, pay, or remuneration of any type from 

the United States.3

Section 10.421(d) of the implementing regulations requires that OWCP reduce the amount 

of compensation by the amount of SSA benefits that are attributable to federal service of the

employee.4 FECA Bulletin No. 97-09 provides that FECA benefits have to be adjusted for the 

FERS portion of SSA benefits because the portion of the SSA benefit earned as a federal employee 

is part of the FERS retirement package, and the receipt of FECA benefits and federal retirement 

concurrently is a prohibited dual benefit.5

 

2 5 U.S.C. § 8102(a).

3

Id. at § 8116.

4 20 C.F.R. § 10.421(d); see S.O., Docket No. 18-0254 (issued August 2, 2018); L.J., 59 ECAB 264 (2007).

5 FECA Bulletin No. 97-09 (February 3, 1997).
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ANALYSIS -- ISSUE 1

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

of compensation in the amount of $53,510.67 for the period February 1, 2014 through March 31, 

2018, for which she was without fault, because she concurrently received FECA wage-loss 

compensation and SSA age-related retirement benefits.

In its January 11, 2019 decision, OWCP found that an overpayment of compensation was 

created for the period February 1, 2014 through March 31, 2018. The overpayment was based on 

the evidence received from SSA with respect to age-related retirement benefits paid to appellant. 

A claimant cannot receive both FECA compensation for wage loss and SSA age-related retirement 

benefits attributable to federal service for the same period.6 The information provided by SSA 

indicated that appellant received age-related SSA retirement benefits that were attributable to 

federal service during the period February 1, 2014 through March 31, 2018. 

To determine the amount of the overpayment, the portion of the SSA benefits that were 

attributable to federal service must be calculated. The SSA provided the rate with FERS, and 

without FERS, for specific periods in question commencing February 1, 2014 through 

March 31, 2018. OWCP provided its calculations for each relevant period based on an SSA Dual 

Benefit worksheet and in its May 21, 2018 preliminary overpayment determination. It calculated 

the amount of overpayment by determining the difference between the SSA amount with and 

without FERS for each period and multiplying the daily offset amount by the number of days in 

each period, to find a total overpayment of $53,510.67. No contrary evidence was provided, and 

appellant has not contested that an overpayment occurred.

The Board has reviewed OWCP’s calculation of benefits received by appellant for the 

period February 1, 2014 through March 31, 2018 and finds that OWCP properly found that an 

overpayment of compensation in the amount of $53,510.67 was created.

LEGAL PRECEDENT -- ISSUE 2

Section 8129 of FECA provides that an individual who is without fault in creating or 

accepting an overpayment is still subject to recovery of the overpayment unless adjustment or 

recovery would defeat the purpose of FECA or would be against equity and good conscience. 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.7

Recovery of an overpayment will defeat the purpose of FECA if such recovery would cause 

hardship to a currently or formerly entitled beneficiary because the beneficiary from whom OWCP 

seeks recovery needs substantially all of his or her current income, including compensation 

benefits, to meet current ordinary and necessary living expenses, and the beneficiary’s assets do 

 

6 5 U.S.C. § 8116(d)(2); see L.W., Docket No. 19-0787 (issued October 23, 2019); J.T., Docket No. 18-1791 (issued 

May 17, 2019).

7 A.C., Docket No. 18-1550 (issued February 21, 2019); see Robert Atchison, 41 ECAB 83, 87 (1989).
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not exceed a specified amount as determined by OWCP.8 Additionally, recovery of an 

overpayment is considered to be against equity and good conscience when an individual who 

received an overpayment would experience severe financial hardship in attempting to repay the 

debt or when an individual, in reliance on such payment or on notice that such payments would be 

made, gives up a valuable right or changes his or her position for the worse.9

OWCP regulations provide that the individual who received the overpayment is responsible 

for providing information about income, expenses, and assets as specified by OWCP. This 

information is needed to determine whether or not recovery of an overpayment would defeat the 

purpose of FECA or be against equity and good conscience. The information is also used to 

determine the repayment schedule, if necessary.10 

ANALYSIS -- ISSUE 2

The Board finds that OWCP properly denied waiver of recovery of the overpayment.

OWCP properly determined that appellant did not require substantially all of her income 

to meet ordinary living expenses. Based upon appellant’s June 11, 2018 overpayment recovery 

form and the record, it found that she had monthly income of $4,518.00. Appellant listed monthly 

expenses of $1,995.37, which included $1,500.00 for rent, $100.00 for food, $40.00 for clothing, 

$100.00 for utilities, $65.37 and $30.00 for dental and vision insurance, respectively, $80.00 for 

health care, and $80.00 for credit card expenses, and other household expenses. As appellant’s 

monthly income exceeded her ordinary and necessary living expenses by more than $50.00, she 

did not need substantially all of her income for ordinary and necessary living expenses.11

Additionally, the evidence of record does not demonstrate that recovery of the overpayment 

would be against equity and good conscience. Appellant did not submit any evidence that she had 

relied upon the incorrect payments to her detriment or that she would experience severe financial 

hardship attempting to repay the debt.12 Consequently, OWCP properly denied waiver of recovery 

of the overpayment.

 

8 20 C.F.R. § 10.436(a)(b). For an individual with no eligible dependents the asset base is $6,200.00. The base 

increases to $10,300.00 for an individual with a spouse or one dependent, plus $1,200.00 for each additional 

dependent. Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Final Overpayment Determinations, 

Chapter 6.400.4(a)(2) (September 2018).

9

Id. at § 10.437(a)(b).

10 Id. at § 10.438(a); M.S., Docket No. 18-0740 (issued February 4, 2019).

11 J.C., Docket No.19-0122 (issued June 11, 2019); A.C., Docket No. 18-1550 (issued February 21, 2019); see also 

M.P., Docket No. 18-0902 (issued October 16, 2018).

12 20 C.F.R. § 10.437.
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LEGAL PRECEDENT -- ISSUE 3

Section 10.441 of OWCP’s regulations provides that, 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 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.13

ANALYSIS -- ISSUE 3

The Board finds that OWCP properly required recovery of the overpayment by deducting 

$407.41, every 28 days, from appellant’s continuing compensation payments.

OWCP provided appellant a Form OWCP-20 with its May 21, 2018 preliminary 

determination. Appellant completed the overpayment recovery questionnaire and submitted 

financial documentation. It revealed that she had income of $4,518.00 and expenses of $1,995.37, 

with excess monthly income of $2,522.63.

The Board finds that OWCP gave due regard to the financial information appellant 

submitted as well as the factors set forth in section 10.441 in setting the amount of the repayment 

from continuing compensation benefits to minimize hardship, while liquidating the debt, as 

appellant had financial resources sufficient for more than ordinary needs.

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 OWCP did not abuse 

its discretion in requiring recovery by deducting $407.41 every 28 days from each of appellant’s

continuing compensation payments.

CONCLUSION

The Board finds that an overpayment of compensation was created in the amount of 

$53,510.67 for the period February 1, 2014 through March 31, 2018, for which she was without 

fault, as she concurrently received SSA age-related retirement benefits while receiving FECA 

wage-loss compensation benefits. The Board further finds that OWCP properly denied waiver of 

recovery of the overpayment, and properly required recovery by deducting $407.41, every 28 days,

from appellant’s continuing compensation payments.

 

13 M.A., Docket No. 18-1666 (issued April 26, 2019); Donald R. Schueler, 39 ECAB 1056, 1062 (1988).

14 See N.J., Docket No. 19-1170 (issued January 10, 2020). 
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ORDER

IT IS HEREBY ORDERED THAT the January 11, 2019 decision of the Office of 

Workers’ Compensation Programs is affirmed.

Issued: February 18, 2020

Washington, DC

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

Alec J. Koromilas, Alternate Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board