United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

E.Z., Appellant

and

U.S. POSTAL SERVICE, MAIN POST OFFICE 

ANNEX, Cincinnati, OH, Employer

__________________________________________

)

)

)

)

)

)

)

)

Docket No. 21-0750

Issued: December 7, 2021

Appearances: Case Submitted on the Record

Appellant, pro se

Office of Solicitor, for the Director

DECISION AND ORDER

Before:

ALEC J. KOROMILAS, Chief Judge

JANICE B. ASKIN, Judge

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On April 9, 2021 appellant filed a timely appeal from a March 15, 2021 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.2

ISSUES

The issues are: (1) whether OWCP properly found that appellant had received an 

overpayment of compensation in the amount of $13,766.05 for the period October 1, 2011 through 

March 5, 2016, for which he was without fault, because he concurrently received FECA wage-loss 

1

5 U.S.C. § 8101 et seq.

2 The Board notes that, following the March 15, 2021, 2021 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

compensation benefits and Social Security Administration (SSA) age-related retirement benefits 

without an appropriate offset; (2) whether OWCP properly denied waiver of recovery of the 

overpayment; and (3) whether OWCP properly required recovery of the overpayment by deducting 

$640.00 from appellant’s continuing compensation payments every 28 days.

FACTUAL HISTORY

This case has previously been before the Board on a separate issue. 3 The facts and 

circumstances as set forth in the Board’s prior decision are incorporated herein by reference. The 

relevant facts are as follows.

On March 30, 1987 appellant, then a 41-year-old clerk, filed an occupational disease claim 

(Form CA-2) alleging that he sustained anxiety causally related to factors of his federal 

employment.4 He stopped work on March 12, 1987. OWCP accepted the claim for an adjustment 

reaction and post-traumatic stress disorder. It paid appellant compensation for total disability from

March 14 through September 20, 1987. Appellantreturned to limited-duty work on September 21, 

1987, butstopped work again on November 9, 1987 and did not return. OWCP paid him wageloss compensation for total disability on the periodic rolls.

On October 28, 2015 OWCP sent a Federal Employees Retirement System (FERS)/SSA 

dual benefits calculation form to SSA for completion. In an October 28, 2015 response, SSA 

provided the monthly payments that appellant was entitled to with and without FERS effective 

October 2011 to December 2015. It advised that he had become entitled to retirement benefits on 

October 2011.

In a March 29, 2016 letter, OWCP informed appellant that it would begin deducting the 

portion of SSA age-related retirement benefits attributable to his federal service from his 

compensation benefits. It noted that the SSA offset amount was currently $264.60 or $244.25 

when adjusted to a 28-day payment cycle. OWCP found that appellant was entitled to a net 

compensation after the SSA offset of $2,367.75. 

On April 4, 2016 appellant contended that he was not covered by the FERS retirement 

program. 

In a letter dated May 17, 2016, OWCP advised appellant that SSA had indicated that he 

received benefits due to his federal service as part of the FERS retirement program. It requested 

that he forward a Standard Form (SF)-50 regarding his employment status.

Thereafter, OWCP received a February 6, 1984 notification of personnel action, PS 

Form-50, which indicated that appellant’s retirement coverage was the Civil Service Retirement 

System (CSRS) and Federal Insurance Contributions Act (FICA). A January 7, 1987 PS-50 

indicated that his retirement coverage had been automatically transferred to the FERS effective 

January 1, 1987. An August 11, 1992 PS-50 noted that appellant had retired on disability with a 

3 Docket No. 00-1000 (issued November 13, 2001).

4 The Form CA-2 is not contained in the case record.
3

last day in pay status of November 9, 1987. The form indicated that he was covered under the 

FERS retirement plan. 

On December 10, 2020 OWCP again sent SSA a FERS/SSA dual benefits calculation form. 

In a December 28, 2020 response, SSA provided the same figures as it had on 

October 28, 2015. It notified OWCP that, with FERS, appellant was entitled to a monthly payment 

of $1,103.00 effective October 2011, $1,142.70 effective December 2011, $1,162.10, effective 

December 2012, $1,179.50, effective December 2013, and $1,199.50 effective December 2014 

and 2015. Without his federal service contributions, appellant was entitled to a monthly payment 

rate of $859.80 effective October 2011, $890.70 effective December 2011, $905.80 effective 

December 2012, $919.30 effective December 2013, and $934.90 effective December 2014 and 

2015.

In a January 20, 2021 FERS offset calculation memorandum, OWCP calculated appellant’s 

FERS/SSA offset for each period October 1, 2011 through March 5, 2016 and the amount of the 

overpayment for each period. It found that, from October 1 through November 30, 2011, he

received an overpayment in the amount of $489.07, from December 1, 2011 through 

November 30, 2012, he received an overpayment in the amount of $3,040.62, from December 1, 

2012 through November 30, 2013, he received an overpayment in the amount of $3,084.05, from 

December 1, 2013 through November 30, 2014, he received an overpayment in the amount of 

$3,130.98, from December 1, 2014 through November 30, 2015, he received an overpayment in 

the amount of $3,183.92, and from December 1, 2015 through March 5, 2016, he received an 

overpayment in the amount of $837.42. OWCP added the amounts to find a total overpayment of 

$13,766.05.

On January 25, 2021 OWCP issued a preliminary overpayment determination, finding that 

an overpayment of compensation in the amount of $13,766.05 had been created because appellant 

received wage-loss compensation payments for the period October 1, 2011 through March 5, 2016 

that had not been reduced to offset his SSA age-related retirement benefits attributable to his 

federal service. It determined that he was without fault in the creation of the overpayment. OWCP 

requested that appellant submit a completed overpayment recovery questionnaire (Form OWCP20) to determine a reasonable payment method, and advised him that he could request waiver of 

recovery of the overpayment. It further requested that he provide supporting financial 

documentation, including copies of income tax returns, bank account statements, bills and canceled 

checks, pay slips, and any other records which support income and expenses. Additionally, OWCP 

provided an overpayment action request form and notified appellant that, within 30 days of the 

date of the letter, he could request a telephone conference, a final decision based on the written 

evidence, or a prerecoupment hearing.

In an overpayment action request form signed January 28, 2021, appellant requested a 

decision based on the written evidence. He requested waiver of recovery of the overpayment. In 

an OWCP-20 form, appellant advised that he had monthly income of $3,720.00 and listed monthly 

expenses of $1,820.00. He indicated that he had assets of $8,200.00. Appellant did not submit 

the requested financial documentation.
4

By decision dated March 15, 2021, OWCP finalized its preliminary overpayment 

determination, finding that appellant had received a $13,766.05 overpayment of compensation for 

the period October 1, 2011 through March 5, 2016 because it failed to offset his compensation 

payments by the portion of his SSA age-related retirement benefits that were attributable to his 

federal service. It further found that he was without fault in the creation of the overpayment, but 

denied waiver of recovery of the overpayment as his monthly income exceeded his expenses by 

more than the allotted amount. OWCP also noted that appellant had not submitted any 

documentation supporting his monthly expenses. It required recovery of the overpayment by 

deducting $640.00 from his continuing compensation payments every 28 days.

LEGAL PRECEDENT -- ISSUE 1

Section 8102(a) of FECA5 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 or her duty.6 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.7

Section 10.421(d) of OWCP’s implementing regulations requires OWCP to reduce the 

amount of compensation by the amount of any SSA age-related retirement benefits that are 

attributable to the employee’s federal service.8 FECA Bulletin No. 97-09 states 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. 9

ANALYSIS -- ISSUE 1

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

of compensation in the amount of $13,766.05 for the period October 1, 2011 through March 5, 

2016, for which he was without fault, because he concurrently received FECA wage -loss 

compensation benefits and SSA age-related retirement benefits without an appropriate offset. 

Appellant received SSA age-related retirement benefits beginning October 2011. OWCP 

paid him wage-loss compensation for total disability on the periodic rolls after he stopped work 

on November 9, 1987. As noted, a claimant cannot receive concurrent FECA compensation for 

wage-loss and SSA age-related retirement benefits attributable to federal service.10 The 

5

Supra note 1.

6

5 U.S.C. § 8102.

7

Id. at § 8116.

8

20 C.F.R. § 10.421(d); see S.M., Docket No. 17-1802 (issued August20, 2018).

9 FECA Bulletin No. 97-09 (issued February 3, 1997); seealso N.B.,Docket No. 18-0795 (issued January 4, 2019).

10 Supra note 8. See F.K., Docket No. 20-1609 (issued June 24, 2021); A.C., Docket No. 18-1550 (issued 

February21, 2019).
5

information provided by SSA indicated that a portion of appellant’s SSA age-related retirement 

benefits were attributable to his federal service. Accordingly, the Board finds that fact of 

overpayment has been established.11 

To determine the amount of the overpayment, the portion of SSA age-related retirement 

benefits 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. SSA provided the SSA rates with FERS and without FERS for 

specific periods October 1, 2011 through December 2015. OWCP provided its calculations for 

each relevant period based on SSA’s worksheet and determined that appellant received an 

overpayment in the amount of $13,817.35. The Board has reviewed OWCP’s calculation of dual 

benefits received by him for the period October 1, 2011 through March 5, 2016 and finds that an 

overpayment of compensation in the amount of $13,766.05 was created.12

LEGAL PRECEDENT -- ISSUE 2

Section 8129 of FECA provides that an overpayment must be recovered unless incorrect 

payment has been made to an individual who is without fault and when adjustment or recovery 

would defeat the purpose of FECA or would be against equity and good conscience. 13

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.14 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. 15 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.16 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.17

11 See L.K., Docket No. 20-1574 (issued June23, 2021); S.H., Docket No. 20-1157 (issued December 23, 2020).

12 See N.B., Docket No. 20-0727 (issued January 26, 2021); L.L., Docket No. 18-1103 (issued March 5, 2019).

13 5 U.S.C. § 8129. 

14 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(2),(3) (September 2020).

15 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).

16 See supra note 14at Chapter 6.400.4(a)(2) (September 2020).

17 Id. at Chapter 6.400.4(b)(3)
6

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.18

ANALYSIS -- ISSUE 2

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

As OWCP found appellant not at 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.19

OWCP found that appellant’s monthly income of $3,720.00 exceeded his listed monthly 

expenses of $1,820.00 by more than the allotted amount. As his monthly income exceeds his

ordinary and necessary living expenses by more than $50.00, the Board finds that appellant does 

not need substantially all of his income for ordinary and necessary living expenses. 20

Appellant has not established that denying waiver of recovery of the overpayment would 

defeat the purpose of FECA.

21

 There is also no evidence to support that he gave up a valuable 

right or changed his position for the worse, in reliance on his FECA compensation. Appellant, 

therefore, did not establish that recovery of the overpayment was against equity and good 

conscience.22

As appellant failed to establish that recovery of the overpayment of compensation would 

either defeat the purpose of FECA or be against equity and good conscience, the Board finds that 

OWCP did not abuse its discretion in denying waiver of recovery.23

On appeal appellant alleged that OWCP had taken multiple deductions based on his SSA 

payments and that he was experiencing financial hardship. As discussed, however, he has not 

submitted any evidence supporting that waiver of record would defeat the purpose of FECA or be 

against equity and good conscience. 

18 20 C.F.R. § 10.437(a)(b).

19 Id. at § 10.436.

20 See M.R., Docket No. 20-1622 (issued June30, 2021).

21 See R.D., Docket No. 19-1598 (issued April17, 2020); R.C., Docket No. 19-0845 (issued February 3, 2020).

22 Id.

23 Id.
7

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.24

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.25

ANALYSIS -- ISSUE 3

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

$640.00 from appellant’s continuing compensation every 28 days.

The record supports that, in requiring repayment of the overpayment by deducting $640.00 

from appellant’s compensation payments every 28 days, OWCP gave due regard to the financial 

information provided, noting that his monthly income exceeded his monthly expenses by 

$1,900.00. Therefore, OWCP properly required recovery of the overpayment by deducting 

$640.00 from his continuing compensation every 28 days.26

CONCLUSION

The Board finds that appellant received an overpayment of compensation in the amount of 

$13,766.05 for the period October 1, 2011 through March 5, 2016, for which he was without fault, 

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

benefits without appropriate offset. The Board further finds that OWCP properly denied waiver 

of recovery of the overpayment and properly required recovery of the overpayment by deducting 

$640.00 every 28 days from his continuing compensation payments.

24 20 C.F.R. § 10.441. See M.P., Docket No. 18-0902 (issued October 16, 2018).

25 Id.

26 See J.R., Docket No. 17-0181 (issued August 12, 2020); L.G., Docket No. 19-1274 (issued July 10, 2020).
8

ORDER

IT IS HEREBY ORDERED THAT the March 15, 2021 decision of the Office of 

Workers’ Compensation Programs is affirmed.

Issued: December 7, 2021

Washington, DC

Alec J. Koromilas, Chief Judge

Employees’ Compensation Appeals Board

Janice B. Askin, Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board