United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

B.B., Appellant

and

U.S. POSTAL SERVICE, HAMERSVILLE 

POST OFFICE, Hamersville, OH, Employer

__________________________________________

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Docket No. 21-0431

Issued: October 20, 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 January 28, 2021 appellant filed a timely appeal from a December 21, 2020 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 determined that appellant received an 

overpayment of compensation in the amount of $15,659.79 for the period October 1, 2019 through 

December 5, 2020 for which she was without fault, because she concurrently received FECA 

wage-loss compensation 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 OWCPproperly required recovery of the overpayment by deducting 

$463.35 from appellant’s continuing compensation payments every 28 days. 

1

5 U.S.C. § 8101 et seq.
2

FACTUAL HISTORY

On December 29, 2016 appellant, then a 63-year-old rural carrier, filed an occupational 

disease claim (Form CA-2) alleging that she sustained a lumbar strain due to factors of her federal 

employment, which included twisting and lifting mail repetitively. The claim form indicated that 

her retirement coverage was under the Federal Employees Retirement System (FERS). OWCP 

accepted the claim for lumbar strain and sciatica. It paid appellant wage-loss compensation on the 

supplemental rolls commencing February 4, 2017 and on the periodic rolls as of April 30, 2017. 

On November 4, 2020 OWCP forwarded a FERS/SSA dual benefits calculations form to 

SSA to determine whether an offset of benefits was required. 

On November 12, 2020 OWCP received a FERS/SSA dual benefit calculation transmittal 

from SSA setting forth appellant’s SSA rate with FERS and without FERS commencing 

October 2019. With FERS, appellant was entitled to a monthly SSA rate of $1,169.70 effective 

October 2019 and $1,188.40 effective December 2019. Without FERS, she would have been 

entitled to a monthly SSA rate of $85.10 effective October 2019 and $86.40 effective 

December 2019. 

On November 17, 2020 OWCP completed a FERS offset calculation form wherein it 

tabulated the overpayment from October 1, 2019 through December 5, 2020. It determined the 

overpayment amount by multiplying the daily FERS offset amount by the number of days in each 

period. OWCP related that from October 1 through November 30, 2019 an overpayment was 

created in the amount of $2,181.36, and from December 1, 2019 through December 5, 2020 in the 

amount of $13,478.43. It found that the overpayment totaled $15,659.79. 

In a preliminary overpayment determination dated November 17, 2020, OWCP advised 

appellant that she received a $15,659.79 overpayment of compensation for the period October 1, 

2019 through December 5, 2020 because her wage-loss compensation benefits had not been 

reduced by her SSA age-related retirement benefits attributable to federal service. It also made a 

preliminary determination that she was without fault in the creation of this overpayment. OWCP 

advised appellant that she could submit evidence challenging the fact or amount of the 

overpayment. It instructed herto complete an overpayment recovery questionnaire (Form OWCP20) to determine whether waiver should be granted, and if not, a reasonable repayment schedule

would be created. OWCP informed appellant that she should provide supporting financial 

documentation, including copies of income tax returns, bank account statements, bills, pay slips, 

and any other records to support income and expenses. It provided an overpayment action request 

form and notified her 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. 

On December 2, 2020 appellant completed the Form OWCP-20. She requested waiver of 

recovery of the overpayment because she did not realize that she had received an overpayment.

Appellant reported $2,915.00 in monthly income, $2,226.78 in monthly expenses, and $122.00 in 

assets (cash, checking account, and savings account). However, she did not submit any supporting 

financial documentation. 
3

By final decision dated December 21, 2020, OWCP found that appellant received an 

overpayment of compensation in the amount of $15,659.79 for the period October 1, 2019through

December 5, 2020 for which she was without fault. It also determined that, although she was not 

at fault in the creation of the overpayment, the overpayment could not be waived as there was no 

evidence to substantiate that recovery of the overpayment would defeat the purpose of FECA or 

be against equity and good conscience. OWCP explained that appellant’s monthly income 

exceeded her monthly expenses and, therefore, waiver of recovery of the overpayment was not 

warranted. It required recovery of the overpayment by deduction of $463.35 from her continuing 

compensation payments every 28 days. 

LEGAL PRECEDENT -- ISSUE 1

Section 8102 of FECA2 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.3 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.4

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.5 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. 6

ANALYSIS -- ISSUE 1

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

of compensation in the amount of $15,659.79 for the period October 1, 2019 through December 5, 

2020 because she concurrently received SSA age-related retirement benefits and FECA wage-loss 

compensation without an appropriate offset. 

In its December 21, 2020 decision, OWCP found that an overpayment of compensation 

was created for the period October 1, 2019 through December 5, 2020. 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 

2

Id.

3

Id. at § 8102.

4

Id. at § 8116.

5

20 C.F.R. § 10.421(d); T.B., Docket No. 18-1449 (issued March 19, 2019); S.M., Docket No. 17-1802 (issued

August 20, 2018).

6 FECA Bulletin No. 97-09 (issued February3, 1997); N.B., Docket No. 18-0795 (issued January 4, 2019).
4

retirement benefits attributable to federal service for the same period.7 The information provided 

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

to federal service during the period October 1, 2019 through December 5, 2020. Consequently, 

the fact of overpayment has been established.8

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

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

respect to the specific amount of SSA benefits that were attributable to federal service. The SSA 

provided the SSA rate with FERS, and without FERS for the specific period commencing 

October 1, 2019 through December 5, 2020. OWCP provided its calculations for each relevant 

period based on the SSA worksheet and in its November 17, 2020 preliminary overpayment 

determination. 

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

period October 1, 2019 through December 5, 2020 and finds that an overpayment in the amount 

of $15,659.79 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.9 

Thus, a finding that appellant was without fault does not automatically result in waiver of the 

overpayment. OWCP must then exercise its discretion to determine whether recovery of the 

overpaymentwould defeat the purpose of FECA or would be against equity and good conscience. 10

Section 10.436 of OWCP’s implementing regulations provides that recovery of an 

overpayment would defeat the purpose of FECA if such recovery would cause hardship 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, also, if the beneficiary’s assets do not exceed a specified amount as determined by OWCP 

from data provided by the Bureau of Labor Statistics.11 An individual is deemed to need 

7

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

May 17, 2019).

8 L.M., Docket No. 19-1197 (issued January 8, 2020).

9

5 U.S.C. § 8129(a)-(b).

10 C.B., Docket No. 20-0031 (issued July 27, 2020); L.S., 59 ECAB 350 (2008).

11 20 C.F.R. § 10.436. OWCP’s procedures provide that the 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. Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Final Overpayment Determinations, 

Chapter 6.400.4a(3) (September 2018).
5

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 $50.00.12

Section 10.437 of OWCP’s implementing regulations provides that 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 attempting to repay the debt; 

and when an individual, in reliance on such payments 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’s procedures 

provide that, to establish that a valuable right has been relinquished, an individual must 

demonstrate that the right was in fact valuable, that he or she was unable to get the right back, and 

that his or her action was based primarily or solely on reliance on the payment(s) or on the notice 

of payment.14

OWCP’s 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.15 Failure to submit the requested information 

within 30 days of the request shall result in a denial of waiver of recovery, and no further request 

for waiver shall be considered until the requested information is furnished. 16

ANALYSIS -- ISSUE 2 

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

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.17

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

be against equity and good conscience as appellant’s monthly income exceeded her monthly 

12 Id. at Chapter 6.400.4(a)(3) (September 2018).

13 20 C.F.R. § 10.437; see E.H., Docket No. 18-1009 (issued January 29, 2019).

14 Supra note 11at Chapter 6.400.4(c)(3) (September 2018).

15 20 C.F.R. § 10.438(a); M.S., Docket No. 18-0740 (issued February 4, 2019).

16 Id. at § 10.438(b).

17 Supra note 15.
6

expenses. The Board finds that hermonthly income exceeded her monthly expenses by the allotted 

amount. Consequently, OWCP properly denied waiver of recovery of the overpayment. 18

LEGAL PRECEDENT -- ISSUE 3

Section 10.441 of Title 20 of the Code of Federal Regulations provides that if an 

overpayment of compensation has been made to one entitled to future payments, proper adjustment 

shall be made by decreasing subsequent 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.”

19

 When an individual 

fails to provide requested information on income, expenses, and assets, OWCP should follow 

minimum collection guidelines, which state in general that government claims should be collected 

in full and that, if an installment plan is accepted, the installments should be large enough to collect 

the debt promptly.20

ANALYSIS -- ISSUE 3

The record supports that, in requiring repayment of the overpayment by deducting $463.35

from appellant’s compensation payments every 28 days, OWCP took into consideration the factors 

set forth in section 10.441 and found that this method of recovery would minimize any resulting 

hardship on appellant. Therefore, OWCP properly required repayment of the overpayment by 

deducting $463.35 from her compensation payments every 28 days.21

CONCLUSION

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

$15,659.79 for the period October 1, 2019 through December 5, 2020 for which she was without 

fault, because she concurrently received SSA age-related retirement benefits and FECA wage-loss 

compensation without an 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 $463.35 from her continuing compensation payments every 28 days.

18 Id. 

19 20 C.F.R. § 10.441.

20 J.R., Docket No. 20-1094 (issued January 5, 2021);R.O., Docket No. 18-0076 (issued August3, 2018); Gail M. 

Roe, 47 ECAB 268 (1995).

21 See id.
7

ORDER

IT IS HEREBY ORDERED THAT the December 21, 2020 decision of the Office of 

Workers’ Compensation Programs is affirmed. 

Issued: October 20, 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