United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

P.H., Appellant

and

U.S. POSTAL SERVICE, POST OFFICE, 

North Brookfield, MA, Employer

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Docket No. 18-1806

Issued: October 10, 2019

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

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On September 27, 2018 appellant filed a timely appeal from a June 29, 2018 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 appellant has received an overpayment of compensation in the 

amount of $106,475.38 because she concurrently received Social Security Administration (SSA) 

age-based benefits while also receiving FECA benefits for the period December 1, 2005 through 

 

1

5 U.S.C. § 8101 et seq.

2 The Board notes that,following the June 29, 2018 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

March 31, 2018; (2) whether OWCP properly denied waiver of recovery of the overpayment; and 

(3) whether it properly required recovery of the overpayment by deducting $1,000.00 every 28 

days from appellant’s continuing compensation payments.

FACTUAL HISTORY

On April 17, 1991 appellant, then a 54-year-old rural mail carrier, filed an occupational 

disease claim (Form CA-2) alleging that she sustained numbness in her hands and arms due to 

factors of her federal employment. She noted that she first became aware of her condition on 

January 22, 1988 and related it to her federal employment on January 22, 1990. OWCP accepted 

the claim for bilateral carpal tunnel syndrome, traumatic left thumb arthritis, and bilateral trigger 

finger. It paid appellant wage-loss compensation on the periodic rolls based upon her loss of wageearning capacity as of February 14, 1996. Appellant retired from the employing establishment on 

December 31, 2006. 

An OWCP telephone memorandum (Form CA-110) dated July 28, 2006 noted that 

appellant called OWCP to discuss her FECA payments as she had received a lump-sum payment 

from SSA in the amount of $7,942.00 for benefits due from December 2005 until July 2006. 

Appellant further noted that she would receive $1,143.00 in SSA benefits each month, and 

questioned whether her FECA compensation would be affected. OWCP requested that she

forward the SSA documentation. 

On August 11, 2006 appellant forwarded to OWCP a July 23, 2006 letter from SSA that 

advised her that she was entitled to monthly age-related benefits beginning December 2005. 

In a form dated September 6, 2007, SSA advised OWCP that appellant had concurrently 

received FECA and SSA retirement benefits based upon the Federal Employees Retirement 

System (FERS) contributions as of December 2005. It provided the amounts that she had received 

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

that she would have received without FERS. With FERS, effective December 1, 2005, appellant 

was entitled to a monthly SSA rate of $1,084.80, without FERS $584.30; effective January 1, 2006 

with FERS $1,143.60, without FERS $584.30; effective December 1, 2006 with FERS $1,181.30, 

without FERS $603.50. 

In a form dated March 23, 2018, SSA advised OWCP that appellant had concurrently 

received FECA benefits and SSA age-based benefits beginning December 1, 2005. It provided 

the amount that she had received in retirement benefits, including the amount earned through FERS 

contributions and the hypothetical amount that she would have received without FERS. Including 

FERS, appellant was entitled to a monthly SSA rate of $1,084.80, effective December 1, 2005;

$1,143.60, effective January 1, 2006; $1,181.30, effective December 1, 2006; $1,189.90, effective 

January 1, 2017; $1,217.30, effective December 1, 2007; $1,287.80, effective December 1, 2008; 

$1,287.80, effective December 1, 2009; $1,287.80, effective December 1, 2010; $1,334.10,

effective December 1, 2011; $1,356.70, effective December 1, 2012; $1,377.10, effective 

December 1, 2013; $1,400.40 effective December 1, 2014; $1,400.40 effective December 1, 2015; 

$1,404.50, effective December 1, 2016; and $1,432.50, effective December 1, 2017. 
3

SSA further advised that, without FERS, appellant would have been entitled to a monthly 

SSA rate of $521.20, effective December 1, 2005; $521.20, effective January 1, 2006; $538.30,

effective December 1, 2006; $538.30, effective January 1, 2017; $550.60, effective December 1, 

2007; $582.50, effective December 1, 2008; $582.50, effective December 1, 2009; $582.50,

effective December 1, 2010; $603.40, effective December 1, 2011; $613.60 ,effective 

December 1, 2012; $622.80, effective December 1, 2013; $633.30, effective December 1, 2014; 

$633.30, effective December 1, 2015; $635.10, effective December 1, 2016; and $647.80,

effective December 1, 2017.

OWCP completed an SSA offset calculation form on April 3, 2018. It determined the 28-

day FERS SSA offset amount for the days in each period December 1, 2005 through March 31, 

2018, which totaled $106,475.38. 

OWCP, in an April 11, 2018 letter, adjusted appellant’s compensation benefits to offset the 

portion of her SSA retirement benefits attributable to her federal service on account of age. It 

informed her that she would receive net compensation of $1,749.34 every 28 days beginning 

April 28, 2018.

3

 

In a preliminary determination dated May 2, 2018, OWCP notified appellant that she had 

received an overpayment of compensation in the amount of $106,475.38 because it had failed to 

reduce her wage-loss compensation benefits for the period December 1, 2005 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 and adding these amounts to find a total overpayment of $106,475.38. 

OWCP further advised appellant of its preliminary determination that she was without fault in the 

creation of the overpayment. It requested that she complete an enclosed overpayment recovery 

questionnaire (Form OWCP-20) and submit supporting financial documentation. Additiona lly, 

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

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

Appellant, on May 29, 2018, requested that OWCP make a decision based on the written 

record and requested waiver of recovery of the overpayment. In an accompanying overpayment 

recovery questionnaire (Form OWCP-20), she advised that she had monthly income of $3,047.00 

and monthly expenses of $1,851.00. Appellant also related that she had assets of $48,500.00. No 

evidence documenting her expenses was provided. Appellant indicated that she was 81 years old 

with many medical issues and that she was living off of her social security and FECA 

compensation with no other income. She further noted that she was in no position to repay this

compensation error which had occurred through no fault of her own. 

By decision dated June 29, 2018, OWCP finalized its preliminary overpayment 

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

of $106,475.38 for the period December 1, 2005 through March 31, 2018, because it failed to 

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

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

overpayment, but denied waiver of recovery of the overpayment of compensation based on the 

 

3 This covered the compensation period of April 1 through 28, 2018. 
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financial information provided. OWCP found that it would recover the overpayment by deducting 

$1,000.00, every 28 days, from appellant’s 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.4 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.5

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

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

the employee.6 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.7

Section 404.310 of SSA regulations provides that entitlement to SSA benefits begins at 62 

years of age.8 Section 404.409 of SSA regulations provides that for individuals born from 1943 

to 1954, full retirement age is 66 years.9

OWCP s procedures provide that, once an overpayment is identified, it is responsible for 

determining whether the claimant was with fault or without fault, issuing a preliminary finding, 

and unless a hearing is requested, OWCP is responsible for issuing a final decision. 10 These 

procedures note that, if the claimant is determined to be without fault, a Form CA-2202

(preliminary finding notice) must be released (along with a Form OWCP-20) within 30 days of 

the date the overpayment is identified. Both, the reason that the overpayment occurred and the 

reason for the finding of without fault must be clearly stated. A Form CA-2202 informs the 

claimant of the right to submit evidence and the right to a prerecoupment hearing on the issue of: 

(a) fact and amount of overpayment; and (b) waiver. Along with the Form CA-2202, OWCP 

should provide a clearly written statement explaining how the overpayment was created.

 

4

5 U.S.C. § 8102(a).

5

Id. at § 8116.

6

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

7 FECA Bulletin No. 97-09 (issued February 3, 1997); see also A.C., Docket No. 18-1550 (issued February 21, 

2019); N.B., Docket No. 18-0795 (issued January 4, 2019).

8

20 C.F.R. § 404.310.

9

Id. at § 404.409.

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

6.200.4(a)(2) (May 2004).
5

ANALYSIS -- ISSUE 1

The Board finds that OWCP improperly determined that appellant received an 

overpayment of compensation in the amount of $106,475.38 for the period December 1, 2005 

through March 31, 2018.

Beginning December 1, 2005, appellant received age-related retirement benefits from 

SSA, while she continued to receive FECA wage-loss compensation. As noted, a claimant cannot 

receive concurrent compensation for wage loss and SSA retirement benefits attributable to federal 

service for the same period.11

The Board finds however that OWCP failed to follow its procedures in issuing the June 29, 

2018 overpayment decision.12 As noted, OWCP procedures provide that a Form CA-2202

(preliminary finding notice) must be released along with an OWCP-20 within 30 days of the date 

the overpayment is identified.13

In this case, OWCP was first formally placed on notice that appellant was receiving SSA 

age-based benefits by form dated September 6, 2007. Therein SSA advised OWCP that she had 

concurrently received FECA and SSA age-based benefits based on FERS contributions as of 

December 2005. It again identified the overpayment of compensation for OWCP on March 23, 

2018, by advising OWCP that appellant had concurrently received FECA benefits and SSA 

benefits based on her FERS contributions as of December 1, 2005. However, OWCP did not issue 

a preliminary notice regarding the overpayment until May 2, 2018. This preliminary notice was

therefore not issued within 30 days after the overpayment was identified. 

Timely, issuance of a preliminary overpayment notice was necessary because, as the facts 

of this case demonstrate, payment of improper FECA compensation benefits continued for an 

extended period of time because OWCP took no action and appellant accrued a large sum of 

overpayment. Once OWCP learned of the commencement date of SSA age-based benefits which 

ran concurrently with FECA compensation benefits, it should have proceeded to issue a 

preliminary notice of overpayment. In this case, OWCP’s continued payment of improper amounts 

of wage-loss compensation, after notice by SSA that appellant was receiving SSA age-based 

benefits, led to an overpayment exceeding $100,000.00. 

The Board thus finds that OWCP failed to follow its established procedures in determining 

that appellant received an overpayment of compensation in the amount of $106,475.38 during the 

period December 1, 2005 through March 23, 2018.14 

 

11 See supra note 7; D.M., Docket No. 17-0983 (issued August 3, 2018).

12 P.H., Docket No. 18-1539 (issued August 2, 2019). 

13 Supra note 10. 

14 Based on the Board’s disposition of whether an overpayment of compensation was created, the issues of waiver 

and recovery are moot. See C.C.,Docket No. 16-1190 (issued May 12, 2017). 
6

CONCLUSION

The Board finds that OWCP failed to follow its established procedures in determining that 

appellant received an overpayment of compensation in the amount of $106,475.38 for the period 

December 1, 2005 through March 23, 2018. 

ORDER

IT IS HEREBY ORDERED THAT the June 29, 2018 decision of the Office of Workers’

Compensation Programs is reversed.

Issued: October 10, 2019

Washington, DC

Christopher J. Godfrey, Chief Judge

Employees’ Compensation Appeals Board

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board