United States Department of Labor

Employees’ Compensation Appeals Board

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E.R., Appellant

and

U.S. POSTAL SERVICE, MCGAHEYSVILLE 

POST OFFICE, McGaheysville, VA, Employer

__________________________________________

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Docket No. 21-0133

Issued: November 15, 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

PATRICIA H. FITZGERALD, Alternate Judge

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On November 3, 2020 appellant filed a timely appeal from a September 24, 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 $89,478.37 for the period May 25, 2015 through 

August 15, 2020, for which she was not at fault, as she concurrently received Social Security

1

5 U.S.C. § 8101 et seq.

2 The Board notes that,following the September 24, 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 

evidence for the first time on appeal. Id. 
2

Administration (SSA) age-related retirement benefits and FECA wage-loss compensation without 

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 $516.06 from 

appellant’s continuing compensation payments every 28 days.

FACTUAL HISTORY

On March 24, 2015 appellant, then a 67-year-old rural carrier, filed a traumatic injury claim 

(Form CA-1) alleging that on March 13, 2015 she injured her right shoulder when she stepped 

onto a mail tub and fell onto her right side while in the performance of duty. Her supervisor noted 

on the claim form that her retirement coverage was under the Federal Employees Retirement 

System (FERS). OWCP accepted appellant’s claim for a complete ruptureof the right rotator cuff. 

It paid her wage-loss compensation on the supplemental rolls commencing May 25, 2015 and on 

the periodic rolls commencing May 31, 2015.

On August 3, 2020 OWCP provided SSA with a FERS/SSA dual benefits calculation form. 

It listed the computation period as March 13, 2015 to the present.

On August 5, 2020 SSA completed the FERS/SSA dual benefit calculation worksheet and 

provided appellant’s SSA age-related retirement benefit rates with FERS and without FERS from 

January 2015 through December 2019. SSA indicated that: beginning January 2015, appellant’s

SSA rate with FERS was $1,846.20 and without FERS was $483.40; beginning January 2016, 

appellant’s SSA rate with FERS was $1,864.20 and without FERS was $483.40; beginning 

December 2016, appellant’s SSA rate with FERS $1,869.70 and without FERS was $484.80; 

beginning January 2017, appellant’s SSA rate with FERS was $1,879.30 and without FERS was 

$484.80; beginning December 2017, appellant’s SSA rate with FERS was $1,916.80 and without 

FERS was $494.40; beginning January 2018, appellant’s SSA rate with FERS was $1,921.00 and 

without FERS was $494.40; beginning December 2018, appellant’s SSA rate with FERS was 

$1,974.70 and without FERS was $508.20; beginning December 2019, appellant’s SSA rate with 

FERS $2,006.20 and without FERS was $516.30.

In an August 5, 2020 letter, OWCP advised appellant that it had found that she was 

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

appropriate offset, resulting in a prohibited dual benefit. It noted that her FECA compensation 

payments “must be adjusted for the FERS portion of SSA benefits.”

An August 5, 2020 OWCP periodic disability payment plate for the period July 19 through

August 15, 2020 indicated in the comments section that OWCP adjusted appellant’s FECA wageloss compensation by her “FERS offset.”

OWCP completed a FERS offset overpayment calculations worksheet on August 5, 2020. 

It determined the 28-day FERS offset amount for the days in each period and computed a total 

overpayment of $89,478.37. This form indicated that: from May 25 through November 30, 2015,

appellantreceived an overpayment of compensation in the amount of $8,536.22; from December 1 

through 31, 2015 appellant received an overpayment of compensation in the amount of $1,392.75; 

from December 1, 2016 through November 30, 2017 appellant received an overpayment of 

compensation in the amount of $15,249.49; from December 1 through 31, 2016 appellant received 
3

an overpayment of compensation in the amount of $1,415.34; from January 1 through 

November 30, 2017, appellant received an overpayment of compensation in the amount of 

$15,354.82; from December 1 through 31, 2017, appellant received an overpayment of 

compensation in the amount of $1,453.66; from January 1 through November 11, 2018, appellant 

received an overpayment of compensation in the amount of $15,708.28; from December 1, 2018 

through November 30, 2019, appellant received an overpayment of compensation in the amount 

of $17,646.35; and from December 1, 2019 through August 15, 2020, appellant received an 

overpayment of compensation in the amount of $12,721.45. 

On August 12, 2020 OWCP notified appellant of its preliminary overpayment 

determination that she received an overpayment of compensation in the amount of $89,478.37 as 

she had received FECA wage-loss compensation for the period May 25, 2015 through August 15, 

2020 that had not been reduced by the portion of her SSA age-related retirement benefits 

attributable to her federal service, and that this portion of her SSA benefit was a prohibited dual 

benefit. It further advised her of its preliminary determination that she was without fault in the 

creation of the overpayment. OWCP requested that appellant complete the enclosed overpayment 

recovery questionnaire (Form OWCP-20) and submit 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, it provided 

appellant with 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.

In a completed Form OWCP-20 dated September 7, 2020, appellant advised that her

monthly income, including her husband’s income, totaled $3,540.00. She further advised that her

ordinary monthly expensestotaled $2,805.46 and her monthly bank and credit card debt totaled

approximately $1,154.02. Appellant listed available funds as including a $3,249.65 checking 

account balance, a $584.98 savings account balance, and a $3,500.00 transfer from a separate bank 

account. She indicated that she had $172,185.90 in an individual retirement account and 

$57,975.99 in a thrift savings plan account. Appellant stated that she had informed OWCP that 

she was receiving SSA benefits, and that if she had known that payments to her were incorrect, 

she would not have accepted them. She stated that the overpayment was not her fault, and she 

indicated that she wanted to return to full-duty work, but her physicians prevented her from doing 

so.

By decision dated September 24, 2020, OWCP finalized its preliminary overpayment 

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

$89,478.37 because the SSA/FERS offset was not applied to FECA wage-loss compensation 

payments for the period May 25, 2015 through August 15, 2020. 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 submitted did not suggest that she would suffer severe financial hardship in 

repaying the debt, and it did not receive supporting financial documentation. OWCP concluded, 

therefore, that repayment would not defeat the purpose of FECA or be against good equity and 

conscience. It required recovery of the overpayment by deducting $516.06 from appellant’s 

continuing compensation payments beginning October 11, 2020.
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LEGAL PRECEDENT -- ISSUE 1

Section 8102 of FECA 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 the implementing regulations requires that OWCP reduce the amount 

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

federal service of the employee.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 fact of overpayment has been established. 

Beginning on May 25, 2015, appellant received FECA wage-loss compensation while she 

continued to receive age-related retirement benefits from SSA. As noted, a claimant cannot receive 

concurrent compensation for wage loss and SSA age-related retirement benefits attributable to 

federal service for the same period.7 The fact of overpayment is therefore established.

The Board further finds, however, that the case is not in posture for decision regarding the 

amount of the overpayment. The Board notes that OWCP improperly calculated appellant’s 

overpayment for the period May 25, 2015 through August 15, 2020. An August 5, 2020 OWCP 

periodic disability payment plate for the period July 19 through August 15, 2020 indicated that 

OWCP adjusted her FECA compensation payment by her FERS offset. Consequently, the SSA 

benefits appellant received beginning July 19, 2020 were not dual benefits and should not have 

been included in the overpayment calculation. 

On remand, OWCP shall determine the exact amount of the overpayment of compensation 

and the correct dates during which the overpayment occurred. It shall then issue a new preliminary 

overpayment determination with an overpayment action request form, an overpayment recovery 

questionnaire, and instructions for appellant to provide supporting financial information. After 

3

5 U.S.C. § 8102(a).

4

Id. at § 8116.

5

20 C.F.R. § 10.421(d); see L.W., Docket No. 19-0787 (issued October 23, 2019); S.M., Docket No. 17-1802 

(issued August 20, 2018).

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

7

5 U.S.C. § 8116(d)(2); J.T.,Docket No. 18-1791 (issued May 17, 2019).
5

this and other such further development as deemed necessary, OWCP shall issue a de novo

decision.8

CONCLUSION

The Board finds that fact of overpayment has been established. The Board further finds 

that this case is not in posture for decision regarding the period and amount of the overpayment.

ORDER

IT IS HEREBY ORDERED THAT the September 24, 2020 decision of the Office of 

Workers’ Compensation Programs is affirmed in part and set aside in part, and this case is 

remanded for further proceedings consistent with this decision of the Board.

Issued: November 15, 2021

Washington, DC

Alec J. Koromilas, Chief Judge

Employees’ Compensation Appeals Board

Patricia H. Fitzgerald, Alternate Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board

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In light of the Board’s disposition of Issue 1, the Issues of 2 and 3 are renderedmoot.