United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

C.H., Appellant

and

U.S. POSTAL SERVICE, POST OFFICE, 

Harrison, OH, Employer

__________________________________________

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Docket No. 20-1456

Issued: November 23, 2021

Appearances: Case Submitted on the Record

Appellant, pro se

Office of Solicitor, for the Director

DECISION AND ORDER

Before:

JANICE B. ASKIN, Judge

PATRICIA H. FITZGERALD, Alternate Judge

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On July 23, 2020 appellant filed a timely appeal from a January 29, 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.2

ISSUES

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

overpayment of compensation in the amount of $15,666.00, for which she was without fault, 

because she concurrently received FECA wage-loss compensation and Social Security 

1

5 U.S.C. § 8101 et seq.

2 The Board notes that,following the January 29, 2020 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

Administration (SSA) age-related retirement benefits for the period March 20, 2018 through 

April 27, 2019 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 $300.00 from appellant’s continuing compensation each month. 

FACTUAL HISTORY

This case has previously been before the Board on a different 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 February 25, 2011 appellant, then a 59-year-old rural carrier associate, filed a traumatic 

injury claim (Form CA-1) alleging that she injured her right hand and upper arm on October 14, 

2010 when she fell while in the performance of duty. Her retirement system coverage was listed 

as Federal Employees Retirement System (FERS). OWCP accepted the claim for aggravation of 

preexisting right shoulder osteoarthritis and arthropathy, aggravation right shoulder impingement 

syndrome; right carpal tunnel syndrome; and right middle and ring finger flexor tenosynovitis. It 

paid appellant wage-loss compensation on the supplemental rolls as of March 14, 2011 and on the 

periodic rolls as of June 5, 2011. 

On April 23, 2019 OWCP forwarded to SSA a FERS/SSA dual benefits calculation form. 

On April 27, 2019 SSA completed the FERS/SSA dual benefits calculation form. It 

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

March through December 2018. Beginning March 2018, the SSA rate with FERS was $1,725.70 

and without FERS was $561.40. Beginning December 2018, the SSA rate with FERS was 

$1,774.00 and without FERS was $577.10. 

On May 14, 2019 OWCP prepared a FERS offset calculation worksheet wherein it noted 

the calculation of appellant’s SSA offset overpayment from March 20, 2018 through 

April 27, 2019. The total overpayment was determined to be $15,666.00. OWCP found that 

appellant received an overpayment in the amount of $9,826.18 for the period March 20 through 

November 30, 2018, and $5,839.82 for the period December 1, 2018 through April 27, 2019. 

In a May 16, 2019 letter, OWCP advised appellant that she had been receiving SSA agerelated retirement benefits since March 20, 2018 and that the SSA confirmed that a portion of her 

benefits were attributed to her federal service and required an offset of her FECA compensation 

benefits. It indicated that, starting April 28, 2019, $1,104.83 would be offset from her FECA 

payments and that her new net compensation payment would be $394.93. OWCP also informed 

appellant that an overpayment of compensation for the period March 20, 2018 through April 27, 

2019 had resulted. 

On June 21, 2019 OWCP issued a preliminary overpayment determination finding that an 

overpayment of compensation in the amount of $15,666.00 had been created. It explained that the 

overpayment occurred because appellant’s SSA age-related retirement benefits that she received 

3 Order Remanding Case, Docket No. 19-1114 (issued April30, 2020). 
3

from March 20, 2018 through April 27, 2019 were partially based on credits earned while working 

for the Federal Government and that this portion of her SSA benefit constituted a prohibited dual 

benefit. OWCP found her at fault in the creation of this overpayment. It also forwarded an 

overpayment action request form and an overpayment recovery questionnaire (Form OWCP-20) 

and requested that appellant provide supporting financial documentation, including income tax 

returns, bank account statements, bills and cancelled checks, pay slips, and any other records to 

support her reported income and expenses. OWCP afforded her 30 days to respond. 

On July 19, 2019 appellant requested a prerecoupment hearing before a representative of 

OWCP’s Branch of Hearings and Review. She indicated that she disagreed with the amount of 

the overpayment. Appellant also maintained that the overpayment occurred through no fault of 

her own and requested waiver of the recovery of the overpayment. 

On a partially-completed Form OWCP-20 dated July 18, 2019, appellant listed her total

monthly income as $4,581.59 and her total monthly expenses as $4,796.06. She indicated that she 

had a checking account balance of $69,344.00, a Thrift Savings Plan (TSP) account valued at 

approximately $110,000.00, and that she owned two properties, in addition to her home, which 

were valued at approximately $8,000.00 and $30,000.00. 

A prerecoupment hearing was held telephonically on November 14, 2019. During the 

hearing, appellant described her household finances. At the conclusion of the hearing, OWCP’s 

hearing representative provided appellant with instructions as to how the Form OWCP-20 should 

be completed. Additionally, she advised appellant throughout the hearing that she needed to 

provide a breakdown of her expenses along with supportive evidence of all income, expenses, and 

assets listed on the form. The record remained open for 30 days to afford appellantthe opportunity 

to submit additional evidence. 

Appellant submitted over 300 pages of financial records. 

By decision dated January 29, 2020, OWCP’s hearing representative finalized the June 21, 

2019 preliminary overpayment determination. She found that the evidence of record was sufficient 

to establish that an overpayment of compensation in the amount of $15,666.00 had be en created 

for the period March 20, 2018 through April 27, 2019 because appellant concurrently received 

SSA age-related retirement benefits and FECA wage-loss compensation without an appropriate 

offset. The hearing representative modified the fault determination, however, finding that

appellant was without fault in the creation of the overpayment. Taking into account the record, 

the Form OWCP-20 and the information received post hearing, the hearing representative found 

that appellant’s total monthly income was $3,244.86 and appellant’s monthly expenses were 

$2,626.63. She noted that many of the receipts/statements submitted appeared to pertain to 

one-time past expenses. The hearing representative also noted that appellant has significant assets 

including approximately $69,000.00 in her checking account, $120,000.00 in a TSP account, as 

well as additional assets which include two properties aside from her primary residence with values 

of $8,000.00 and $30,000.00 and six vehicles, four of which would be considered assets. She

denied waiver of the overpayment and set recoveryof the overpayment at $300.00 from appellant’s

FECA compensation each month. 
4

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 his or her 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 OWCP reduce the 

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

attributable to the employee’s federal service.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

ANALYSIS -- ISSUE 1

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

$15,666.00, for which she was without fault, because she concurrently received FECA wage-loss 

compensation and SSA age-related retirement benefits for the period March 20, 2018 through 

April 27, 2019 without an appropriate offset.8

The evidence of record indicates that, while appellant was receiving compensation for 

wage-loss compensation benefits under FECA, she was also receiving SSA age-related retirement 

attributable to her federal service during the relevant period. A claimant cannot receive both 

compensation for wage-loss compensation benefits under FECA and SSA age-related retirement 

benefits attributable to federal service for the same period.9 The information provided by SSA 

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

federal service during the period March 20, 2018 through April 27, 2019. Consequently, the fact 

of overpayment has been established. 

To determine the amount of the overpayment, the portion of 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. SSA provided its rate with FERS and without FERS for specific periods March 

through December 2018. OWCP provided its calculations of the amount that should have been 

4

5 U.S.C. § 8102(a).

5

Id. at § 8116.

6

20 C.F.R. § 10.421(d); see P.B., Docket No. 20-0862 (issued November 25, 2020); see S.M., Docket No. 17-1802 

(issued August 20, 2018); L.J., 59 ECAB 264(2007).

7 FECA Bulletin No. 97-09 (February 3, 1997); see also S.M., Docket No. 20-0152 (issued August 10, 2020).

8 R.C., Docket No. 19-0845 (issued February 3, 2020); A.F., Docket No. 19-0054 (issued June 12, 2019).

9

See N.B., Docket No. 20-0727 (issued January26, 2021); D.M., Docket No. 19-1369 (issued June 30, 2020).
5

offset during the relevant period of March 20, 2018 through April 27, 2019 based on information 

provided by SSA and determined that appellant received an overpayment in the amount of 

$15,666.00. 

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

period March 20, 2018 through April 27, 2019 and finds that an overpayment of compensation in 

the amount of $15,666.00 was created.10

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. 11 

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 

overpayment would defeat the purpose of FECA or would be against equity and good conscience. 12

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.13 An individual’s liquid assets include, but 

are not limited to, cash on hand, the value of stocks, bonds, savings accounts, mutual funds, and 

certificates of deposits. Nonliquid assets include, but are not limited to, the fair market value of 

an owner’s equity in property such as a camper, boat, second home, furnishings/supplies, 

vehicle(s) above the two allowed per immediate family, retirement account balances (such as TSP 

or 401(k)), jewelry, and artwork.14

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 

10 See N.B., id.; L.L., Docket No. 18-1103 (issued March 5, 2019); D.C., Docket No. 17-0559 (issued 

June 21, 2018).

11 5 U.S.C. § 8129(a)-(b).

12 Id.; L.S., 59 ECAB 350 (2008).

13 20 C.F.R. § 10.436. OWCP’s procedures provide that a claimant is deemed to need substantially all of his or her 

current net income to meet current ordinary and necessary living expenses if monthly income does not exceed monthly 

expenses by more than $50.00. Federal (FECA) Procedure Manual, Part 6 --Debt Management, Initial Overpayment 

Determinations, Chapter 6.400.4a(3) (September 2020). OWCP’s procedures further provide that 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. Id. at Chapter 6.400.4a(2).

14 Id. at Chapter 6.400.4b(3)(a), (b).
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made, gives up a valuable right or changes his or her position for the worse.15 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.16

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. 17

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. 18

Appellant has not established that recovery of the overpayment would defeat the purpose 

of FECA because her assets exceed the allowable resource base. The Board notes that the case 

record reflects that she has over $120,000.00 in assets in her TSP account and over $69,000.00 in 

her checking account, amounts which exceeds the allowable resource base of $10,300.00 for an 

individual, such as she, who has a spouse within the meaning of FECA.19 Appellant also has two 

properties, aside from her primary residence, one worth $8,000.00 and another worth $30,000.00. 

She also has six vehicles, four of which would be considered assets. 20 As appellant’s current assets 

exceed the allowable resource base, appellant has not established that recovery of the overpayment 

would defeat the purpose of FECA.21 Because she has not met the second prong of the two-prong 

test of whether recovery of the overpayment would defeat the purpose of FECA, it is unnecessary 

15 20 C.F.R. § 10.437; see E.H., Docket No. 18-1009 (issued January 29, 2019).

16 Id. at § 10.437(b)(1); supra note 14. 

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

18 R.L, Docket No. 20-0186 (issued September 14, 2020).

19 The hearing representative found, and the case record supports, that appellant has monthly income of $3,244.86 

and monthly expenses of $2,626.63. The hearing representative explained in detail why some expenses were excluded 

as they were either unexplained, unsupported by current information, unclear whether it was a one-time payment or 

recurring payment, or not considered ordinary and necessary. 

20 See supra note 18.

21 See id. 
7

for OWCP to consider the first prong of the test, i.e., whether she needs substantially all of her 

current income to meet current ordinary and necessary living expenses.22

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

equity and good conscience because she has not shown, for the reasons noted above, that she would 

experience severe financial hardship in attempting to repay the debt or that she relinquished a 

valuable right or changed her position for the worse in reliance on the payment which created the 

overpayment.23

Because appellant has not established that recovery of the overpayment would defeat the 

purpose of FECA or be against equity and good conscience, the Board finds that OWCP properly 

denied waiver of recovery of the $15,666.00 overpayment.

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 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 any hardship.24

ANALYSIS -- ISSUE 3

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

$300.00 from appellant’s compensation payments each month. 

The record supports that, in requiring recovery of the overpayment by deducting $300.00 

from appellant’s compensation payments each month, OWCP took into consideration the financial 

information submitted by her as well as the factors set forth in section 10.441 and found that this 

method of recovery would minimize any resulting hardship on her. Therefore, the Board finds 

that it properly required recovery of the overpayment by deducting $300.00 from her compensation 

payments each month.

CONCLUSION

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

compensation in the amount of $15,666.00, for which she was not at fault, as she concurrently 

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

period March 20, 2018 through April 27, 2019, without an appropriate offset. The Board also 

22 See T.D., Docket No. 20-0972 (issued January 28, 2021).

23 See T.D., id.; L.D., Docket No. 18-1317 (issued April 17, 2019); WilliamJ. Murphy, 41 ECAB 569, 571-

72 (1989).

24 Supra note 20at § 10.441(a); see C.M.,Docket No. 19-1451 (issued March4, 2020).
8

finds that OWCP properly denied waiver of recovery of the overpayment and properly required 

recovery of the overpayment by deducting $300.00 from her compensation payments each month.

ORDER

IT IS HEREBY ORDERED THAT the January 29, 2020 decision of the Office of 

Workers’ Compensation Programs is affirmed.

Issued: November 23, 2021

Washington, DC

Janice B. Askin, Judge

Employees’ Compensation Appeals Board

Patricia H. Fitzgerald, Alternate Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board