United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

C.B., Appellant

and

U.S. POSTAL SERVICE, OWINGSVILLE POST 

OFFICE, Owingsville, KY, Employer

__________________________________________

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Docket No. 20-0031

Issued: July 27, 2020

Appearances: Case Submitted on the Record

Appellant, pro se

Office of Solicitor, for the Director

DECISION AND ORDER

Before:

ALEC J. KOROMILAS, Chief Judge

CHRISTOPHER J. GODFREY, Deputy Chief Judge

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On October 3, 2019 appellant filed a timely appeal from a July 11, 2019 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 found that appellant received an overpayment 

of compensation in the amount of $37,099.61, for which she was without fault, because she 

concurrently received FECA wage-loss compensation and Social Security Administration (SSA) 

age-related retirement benefits for the period May 1, 2017 through May 25, 2019; (2) whether 

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

required recovery of the overpayment by deducting $684.45 every 28 days from appellant’s 

continuing compensation payments.

 

1 5 U.S.C. § 8101 et seq.
2

FACTUAL HISTORY

On October 19, 2016 appellant, then a 65-year-old rural letter carrier, filed a traumatic 

injury claim (Form CA-1) alleging that on September 29, 2016 she felt a pop and tearing/burning 

sensation in her right shoulder when unloading heavy parcels from her vehicle onto the loading 

dock while in the performance of duty. She continued to work following the injury. The claim 

form indicated that appellant’s retirement coverage was Federal Employees Retirement System 

(FERS). OWCP accepted the claim for right shoulder rotator cuff tear. It authorized right rotator 

cuff repair surgery, which occurred on December 20, 2016. OWCP paid appellant wage-loss 

compensation on the supplemental rolls from December 20, 2016 through January 7, 2017 and 

began receiving payments on the periodic rolls beginning January 8, 2017. 

In an EN1032 form dated September 29, 2017, appellant indicated that she received SSA 

age-related benefits as part of an annuity for federal service in the amount of $1,701.00 monthly. 

In an EN1032 form dated September 7, 2018, she indicated that she received regular age-related 

SSA checks in the amount of $1,735.00 monthly.

On September 18, 2018 OWCP provided SSA with a FERS/SSA dual benefits calculation 

form.

On October 2, 2018 appellant elected FECA benefits in preference to retirement benefits 

provided by the Office of Personnel Management (OPM), effective October 16, 2018.

On March 4, 2019 OWCP received a notification of personnel action (Form SF50) noting 

that appellant retired from the employing establishment effective July 31, 2018. Appellant’s 

retirement coverage was listed as FERS.

On April 17, 2019 SSA completed the dual benefits calculation form which indicated 

appellant’s SSA benefit rates with a FERS offset and without a FERS offset from May 2017

through January 2019. Beginning May 2017, the SSA rate with FERS was $1,701.80 and without 

FERS was $242.10. Beginning December 2017, the SSA rate with FERS was $1,735.80 and 

without FERS was $246.90. Beginning December 2018, the SSA rate with FERS was $1,784.40

and without FERS was $253.80. Beginning January 2019, the SSA rate with FERS was $1,785.40 

and without FERS was $258.30. SSA noted the date of eligibility as May 2017. 

On June 3, 2019 OWCP prepared a FERS offset calculation worksheet wherein it noted 

the calculation of appellant’s SSA offset overpayment from May 1, 2017 through May 25, 2019. 

The total overpayment was determined to be $37, 099.61. 

In a letter dated June 7, 2019, OWCP notified appellant that, based on information provided 

by SSA regarding the amount her age-related retirement benefit was partially attributable to federal 

service, her FECA wage-loss compensation had been adjusted. 

On June 7, 2019 OWCP issued a preliminary determination finding that an overpayment 

of compensation in the amount of $37,099.61 had been created. It explained that the overpayment 

occurred because a portion of appellant’s SSA benefits that she received from May 1, 2017 through 

May 25, 2019 were partially based on credits earned while working in the Federal Government, 

and that this portion of her SSA benefit was a prohibited dual benefit. OWCP found her not at 
3

fault in the creation of the overpayment and forwarded an overpayment action request form and 

an overpayment recovery questionnaire (Form OWCP-20). It requested that appellant provide 

supporting documentation including income tax returns, bank account statements, bills and 

cancelled checks, pay slips, and any other records which supported income and expenses listed. 

OWCP afforded her 30 days to respond.

On June 24, 2019 appellant requested a decision based upon the written evidence regarding 

possible waiver of recovery of her overpayment.

In a June 24, 2019 Form OWCP-20, appellant indicated that her total monthly income 

included $2,737.80 from OWCP, $2,657.00 in SSA benefits for both herself and her husband, and 

$1,146.00 in other benefits her husband receives, resulting in a total monthly income of $6,530.80. 

She listed her husband as a dependent and indicated that her total monthly expenses included 

$229.20 for rent or mortgage. Her bi-monthly expenses included $1,884.09 for groceries, $713.07 

for restaurants, $374.63 for clothing, $418.07 for Lowes, $2,136.96 for utilities, and miscellaneous 

expenses of $5,180.15. The total for monthly and bi-monthly expenses totaled $10,936.17. Other 

monthly debts included $905.21 for a car loan, $766.57 for a tractor loan, and $235.55 for a mower, 

resulting in a total of $2,162.30. Appellant indicated that her funds included $75.00 cash on hand, 

a balance of $37,057.55 in a checking account, a balance of $1,090.50 in a savings account, and 

retirement funds of $351,268.79, resulting in total funds of $389,491.84. She attached financial 

documentation of her expenses and income.

By decision dated July 11, 2019, OWCP finalized the June 7, 2019 preliminary 

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

$37,099.61 for the period May 1, 2017 through May 25, 2019 because it had failed to offset her 

compensation payments by the portion of her SSA benefits that were attributable to federal service. 

It further found that she was without fault in the creation of the overpayment, but denied waiver 

of recovery of the overpayment because the evidence of record failed to establish that recovery of 

an overpayment would defeat the purpose of FECA or would be against equity and good 

conscience. OWCP noted that appellant’s liquid assets exceeded both the allowable resource base 

of $10,300.00 for a household of two people and the total amount of the overpayment. It found 

that it would recover the overpayment by deducting $684.45 every 28 days from her continuing 

compensation payments.

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 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

 

2 5 U.S.C. § 8102(a).

3

Id. at § 8116.
4

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

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

ANALYSIS -- ISSUE 1

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

of compensation in the amount of $37,099.61, for which she was without fault, because she 

concurrently received FECA wage-loss compensation benefits and SSA age-related retirement 

benefits for the period May 1, 2017 through May 25, 2019.

The record indicates that, while appellant was receiving compensation for disability under 

FECA, she was also receiving SSA age-related retirement benefits during the period at issue. A 

claimant cannot receive both compensation for wage-loss and SSA age-related benefits attributable 

to federal service for the same period.6 Consequently, the fact of the overpayment has been 

established.

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

attributable to federal service must be calculated. OWCP received documentation from SSA with 

respect to the specific amount of SSA age-related retirement benefits that were attributable to 

federal service. The SSA provided the SSA rate with FERS and without FERS for specific periods 

commencing May 1, 2017 through May 25, 2019. OWCP provided its calculations for each 

relevant period based on the SSA worksheet and in its June 7, 2019 preliminary overpayment 

determination. No contrary evidence was provided.

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

period May 1, 2017 through May 25, 2019 and finds that an overpayment of compensation in the 

amount of $37,099.61 was created.7 Appellant did not challenge the fact or amount of 

overpayment. 

LEGAL PRECEDENT -- ISSUE 2

Section 8129(b) of FECA provides: “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 

 

4 20 C.F.R. § 10.421(d); see B.B., Docket No. 19-0822 (issued February 18, 2020); B.F., Docket No. 18-1345 

(issued February 6, 2019).

5 FECA Bulletin No. 97-09 (February 3, 1997); see also M.D., Docket No. 19-1500 (issued February 24, 2020);

G.K., Docket No. 18-0243 (issued August 17, 2018).

6 See D.C., Docket No. 19-0118 (issued January 15, 2020).

7 See L.W., Docket No. 19-0787 (issued October 23, 2019); L.L., Docket No. 18-1103 (issued March 5, 2019); D.C., 

Docket No. 17-0559 (issued June 21, 2018).
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without fault and when adjustment or recovery would defeat the purpose of this subchapter or 

would be against equity and good conscience.”

8

Recovery of an overpayment will defeat the purpose of FECA when 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 

not exceed a specified amount as determined by OWCP.9 An individual is deemed to need 

substantially all of his or her current income to meet current ordinary and necessary living expenses 

if monthly income does not exceed monthly expenses by more than $50.00.10 Also, assets must 

not exceed a resource base of $6,200.00 for an individual or $10,300.00 for an individual with a 

spouse or dependent plus $1,200.00 for each additional dependent.11 An individual’s liquid assets 

include, but are not limited to cash, the value of stocks, bonds, saving accounts, mutual funds, and 

certificate of deposits.12

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.13

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.14

ANALYSIS -- ISSUE 2

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

 

8 5 U.S.C. § 8129(b).

9 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).

10 Id. at Chapter 6.400.4(a)(3); N.J., Docket No. 19-1170 (issued January 10, 2020); M.A., Docket No. 18-1666 

(issued April 26, 2019).

11 See supra note 9 at Chapter 6.400.4(a)(2) (September 2018).

12 Id. at Chapter 6.400.4(b)(3).

13 Id. at § 10.437(a)(b).

14 Id. at § 10.438(a); M.S., Docket No. 18-0740 (issued February 4, 2019).
6

As OWCP found appellant without fault in the creation of the overpayment, waiver must 

be considered, and repayment is still required unless adjustment or recovery of the overpayment 

would defeat the purpose of FECA or be against equity and good conscience.15 It considered 

appellant’s financial information to determine if recovery of the overpayment would defeat the 

purpose of FECA. Appellant provided her current monthly income and expenses in a Form 

OWCP-20 on June 24, 2019, as well as a summary of her liquid assets. OWCP properly 

determined that appellant listed available assets of $389,491.84 which included $37,057.55 in a 

checking account, $1,090.55 in a savings account, and retirement savings in the amount of 

$351.268.79. The evidence of record therefore established that appellant’s assets exceeded the 

base asset amount of $10,300.00 for individuals with a spouse or dependent.16 It was therefore 

unnecessary for OWCP to consider whether her monthly income exceeded her monthly ordinary 

and necessary expenses by more than $50.00.17

Appellant also has not established that recovery of the overpayment would be against 

equity and good conscience. She has not submitted evidence to substantiate that she would 

experience severe financial hardship in attempting to repay the debt, or that in reliance on the 

overpayment she gave up a valuable right or changed his position for the worse. Therefore, OWCP 

properly found that recovery of the overpayment would not defeat the purpose of FECA or be 

against equity and good conscience.18

LEGAL PRECEDENT -- ISSUE 3

The Board’s jurisdiction over recovery of an overpayment is limited to reviewing those 

cases where OWCP seeks recovery from continuing compensation under FECA.19

Section 10.441 of OWCP’s regulations provides that, when an overpayment of 

compensation 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 hardship.20

 

15 Id. at § 10.436.

16 Supra note 9.

17 Id.

18 See supra note 13.

19 20 C.F.R. § 10.441; see M.P., Docket No. 18-0902 (issued October 16, 2018).

20 Id.
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ANALYSIS -- ISSUE 3

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

$684.45 every 28 days from appellant’s continuing compensation payments.

In setting the recovery rate at $684.45 every 28 days, OWCP explained that the factors set 

forth at 20 C.F.R. § 10.441(a) had been considered to minimize hardship, while liquidating the 

debt, as appellant had financial resources sufficient for more than ordinary needs.21 As noted, 

appellant submitted a Form OWCP-20 on June 24, 2019 showing that she had assets including 

$37,057.55 as a checking account balance, $1,090.50 as a saving account balance, and retirement 

savings in the amount of $351,268.79. Thus, OWCP did not abuse its discretion in setting the rate 

of recovery.22 The Board therefore finds that OWCP properly required recovery of the 

overpayment from appellant’s continuing compensation payments at the rate of $684.45 every 28 

days.

CONCLUSION

The Board finds that OWCP properly found that appellant received an overpayment of 

compensation in the amount of $37,099.61, for which she was not at fault, as she concurrently 

received SSA age-related retirement benefits while receiving FECA wage-loss compensation 

benefits for the period May 1, 2017 through May 25, 2019. The Board further finds that OWCP 

properly denied waiver of recovery of the overpayment and properly required recovery of the 

overpayment by deducting $684.45 every 28 days from her continuing compensation payments.

 

21 See R.D., Docket No. 19-0159 (issued April 17, 2020); D.S., Docket No. 18-1447 (issued July 22, 2019). 

22See T.G., Docket No. 17-1989 (issued June 5, 2018); M.D., Docket No. 11-1751 (issued May 7, 2012).
8

ORDER

IT IS HEREBY ORDERED THAT the July 11, 2019 decision of the Office of Workers’

Compensation Programs is affirmed.

Issued: July 27, 2020

Washington, DC

Alec J. Koromilas, Chief Judge

Employees’ Compensation Appeals Board

Christopher J. Godfrey, Deputy Chief Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board