United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

E.L., Appellant

and

U.S. POSTAL SERVICE, PROCESSING & 

DISTRIBUTION CENTER, San Francisco, CA, 

Employer

__________________________________________

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Docket No. 20-0723

Issued: October 15, 2020

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 February 7, 2020 appellant filed a timely appeal from an August 13, 2019 merit

decision of the Office of Workers’ Compensation Programs (OWCP). Pursuant to the Federal

Employees’ Compensation Act (FECA) and 20 C.F.R. §§ 501.2(c) and 501.3, the Board has

jurisdiction over the merits of this case.

1

ISSUE

The issues are: (1) whether appellant received an overpayment of compensation in the 

amount of $10,044.07 for the period April 1, 2018 through June 22, 2019 for which she was 

without fault, because she concurrently received FECA wage-loss compensation and Social 

 

1 The Board notes that, following the August 13, 2019 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

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 it

properly required recovery of the overpayment by deducting $446.00 from appellant’s continuing 

compensation payments. 

FACTUAL HISTORY

On March 12, 2003 appellant, then a 50-year-old clerk, filed a traumatic injury claim (Form 

CA-1) alleging that on March 3, 2003 she experienced right shoulder pain and pulled a right 

trapezius muscle when she reached up and pulled a case of flat mail while in the performance of 

duty. She stopped work on March 3, 2003 and returned to full-duty work on March 30, 2003. 

OWCP accepted appellant’s claim for right shoulder tendinitis and right shoulder strain. On July 9, 

2003 appellant stopped work due to surgery. She returned to full-time, modified-duty work on 

August 13, 2003. 

On June 10, 2010 OWCP granted appellant a schedule award for four percent permanent 

impairment of the left upper extremity. The award ran for 12.48 weeks from July 9 to 

October 4, 2004.

On July 8, 2010 appellant stopped work because the employing establishment was no 

longer able to accommodate her work. OWCP paid her wage-loss compensation benefits on the 

supplemental rolls, effective July 7, 2010 and on the periodic rolls, effective August 1, 2010.2

On February 18, 2014 appellant returned to part-time, modified-duty working six hours per 

day. OWCP adjusted her wage-loss compensation benefits based on her actual benefits as a parttime mail processing clerk.

In an April 2, 2014 letter, OWCP advised appellant that FECA requires that her continuing 

wage-loss compensation benefits be reduced if she began receiving SSA benefits based on her age 

and federal service. It informed her that, if she failed to report receipt of such retirement benefits, 

it could result in an overpayment of benefits.

In a subsequent letter dated April 28, 2014, OWCP noted that appellant requested a 

duplicate copy of a Form CA-1032 that was previously provided to her. It afforded her 30 days to 

submit the completed form. 

In a Form CA-1032 dated June 21, 2018, appellant responded “yes” indicating that she 

received age-related retirement benefits from SSA as part of an annuity for federal service.

On December 11, 2018 OWCP requested information from SSA regarding appellant’s dual 

benefits.

 

2 Under OWCP File No. xxxxxx372, appellant filed an occupational disease claim (Form CA-2) on November 17, 

2010 alleging that she developed carpal tunnel and tingling sensation in both fingers as a result of her repetitive 

employment duties. OWCP accepted her claim for bilateral carpal tunnel syndrome. It administratively combined 

that claim with the current claim under File No. xxxxxx117, with the latter serving as the master file.
3

Appellant retired from federal service, effective December 31, 2018. 

On May 15, 2019 an SSA representative provided OWCP a Federal Employees Retirement 

System (FERS)/SSA dual benefit calculation worksheet. The SSA representative provided 

corresponding monthly SSA age-related retirement benefit rates beginning April 1, 2018 that both 

included and excluded appellant’s FERS contributions. The form indicated that, beginning 

April 1, 2018, appellant’s SSA rate with FERS was $1,574.00 and without FERS was $914.10; 

that, beginning December 1, 2018, her SSA rate with FERS was $1,617.50 and without FERS was 

$939.60; that, beginning January 1, 2019, her SSA rate with FERS was $1,648.50 and without 

FERS was $939.60. 

Effective June 23, 2019, OWCP paid appellant at the adjusted amount of $654.37 to 

include the offset of her SSA age-related retirement benefits attributable to her federal service.

OWCP completed a FERS offset calculation worksheet on June 27, 2019. It calculated the 

overpayment amount by determining the daily FERS offset amount and multiplying that amount 

by the number of days in each period from April 1, 2018 through June 22, 2019 for a total 

overpayment amount of $10,044.07.

In a Form CA-1032 dated June 2, 2019, appellant responded “Yes” indicating that she 

received retirement benefits from SSA as part of an annuity for federal service. 

In a preliminary overpayment determination dated July 9, 2019, OWCP notified appellant 

that she had received an overpayment of compensation in the amount of $10,044.07 because it had 

failed to reduce her wage-loss compensation benefits for the period April 1, 2018 through June 22, 

2019 by the portion of her SSA benefits that were attributable to federal service. It further advised 

her of its preliminary determination that she was not at fault in the creation of the overpayment 

because she could not have reasonably known that an improper payment had occurred. OWCP 

provided appellant an overpayment action request form and an overpayment recovery 

questionnaire (Form OWCP-20). Additionally, it 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 August 5, 2019 appellant completed an overpayment action request form. She 

indicated that she disagreed with the amount of the overpayment and requested a waiver of the 

overpayment. In an enclosed statement, appellant explained that she had acted on incorrect 

information when she spent funds in ways in which she otherwise would not have done. She 

contended that she would not have taken her SSA benefits in 2018 and would have waited until 

2019. Appellant related that she had contacted her claims examiner before planning to retire to 

ask if her OWCP benefit would be affected and was told “No.” She also reported that she notified 

OWCP that she was receiving SSA benefits when she filled out the CA-1032 forms. 

By decision dated August 13, 2019, OWCP finalized the preliminary overpayment 

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

of $10,044.07 for the period from April 1, 2018 through June 22, 2019 because she received SSA 

benefits in addition to her wage-loss compensation benefits under FECA without a proper offset. 

It also found that she was without fault in the creation of the overpayment, but denied waiver of 
4

recovery of the overpayment because she had not completed and returned OWCP’s Form 

OWCP-20. OWCP concluded, therefore, that “you provided no evidence to support your 

contention that you have financially suffered and spent funds in ways that you would otherwise 

would not have done so.” It determined that recovery of the overpayment would require deducting 

$446.00 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 his or her 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 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.5 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.6

ANALYSIS -- ISSUE 1

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

of compensation in the amount of $10,044.07 for the period April 1, 2018 through June 22, 2019 

because she concurrently received SSA age-related retirement benefits while receiving FECA 

wage-loss compensation benefits without an appropriate offset.

7

 

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 

benefits based upon her federal service. A claimant cannot receive both compensation for wageloss compensation benefits under FECA and SSA age-related retirement benefits attributable to 

federal service for the same period.8 The information provided by SSA established that appellant 

received SSA age-retirement benefits that were attributable to federal service during the period 

April 1, 2018 through June 22, 2019. Consequently, the fact of overpayment has been established.

 

3 5 U.S.C. § 8102(a).

4

Id. at § 8116.

5 20 C.F.R. § 10.421(d); see S.M., Docket No. 17-1802 (issued August 20, 2018); L.J., 59 ECAB 264 (2007).

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

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

8 Supra note 6.
5

To determine the amount of the overpayment, the portion of SSA’s 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 from 

April 1, 2018 through June 22, 2019. OWCP provided its calculations for each relevant period 

based on SSA’s worksheet. 

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

period April 1, 2018 through June 22, 2019 and finds that an overpayment of compensation in the 

amount of $10,044.07 was created.

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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.10 

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.11 

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.12 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 $50.00.13 

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.14 OWCP’s procedures 

 

9 See L.W., Docket No. 19-0787 (issued October 23, 2019); L.L., Docket No. 18-1103 (issued March 5, 2019).

10 5 U.S.C. § 8129(a)-(b).

11 L.S., 59 ECAB 350 (2008).

12 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).

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

14 20 C.F.R. § 10.437; see E.H., Docket No. 18-1009 (issued January 29, 2019).
6

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.15

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.16 

The Board finds that appellant has not established that recovery of the overpayment would 

defeat the purpose of FECA because she has not completed the Form OWCP-20 recovery 

questionnaire and not provided any supporting financial information. OWCP, therefore, did not 

have the financial information necessary to determine if appellant needed substantially all of her 

current income to meet current ordinary and necessary living expenses and, also, if her assets 

exceeded a specified amount as determined by OWCP.17

The Board also finds that appellant did not establish that she was entitled to waiver on the 

basis that recovery of the overpayment would be against equity and good conscience. In a 

statement received on August 12, 2019, appellant asserted that she had acted on incorrect 

information when she spent funds in ways in which she otherwise would not have done. She also

contended that she would not have taken her SSA benefits in 2018 and would have waited until 

2019. Appellant, however, did not provide any financial information to support her allegations. 

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

conscience.18

LEGAL PRECEDENT -- ISSUE 3

Section 10.441(a) of OWCP’s regulations19 provides in pertinent part:

“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 

soon as the error is discovered or his or her attention is called to 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 

 

15 FECA Procedure Manual, supra note 12 at Chapter 6.400.4c(3) (September 2018).

16 20 C.F.R. § 10.436.

17 Supra note 12.

18 R.C., supra note 7; M.A., Docket No. 18-1666 (issued April 26, 2019).

19 20 C.F.R. § 10.441(a).
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circumstances of the individual, and any other relevant factors, so as to minimize 

any hardship.”

20

ANALYSIS -- ISSUE 3

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

$446.00 from appellant’s continuing compensation every 28 days.

OWCP provided appellant a Form OWCP-20 with its July 9, 2019 preliminary 

determination. It afforded her the opportunity to provide appropriate financial information and 

documentation to OWCP.21 Appellant did not complete the overpayment recovery questionnaire 

or provide the necessary financial information to support her income and expenses prior to the 

final August 13, 2019 overpayment decision. The overpaid individual is responsible for providing 

information about income, expenses, and assets as specified by OWCP.22 When an individual fails 

to provide requested financial information, OWCP shall follow minimum collection guidelines 

designed to collect the debt promptly and in full.23 As appellant did not submit supporting financial 

documentation to OWCP as requested, the Board finds that there is no evidence of record to 

establish that OWCP erred in directing recovery of the $10,044.07 overpayment at the rate of 

$446.00 every 28 days from her continuing compensation payments.24

CONCLUSION

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

$10,044.07 for the period April 1, 2018 through June 22, 2019, for which she was not at fault, as 

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

benefits 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 

$446.00 every 28 days from her continuing compensation payments.

 

20 Id.; see C.M., Docket No. 19-1451 (issued March 4, 2020). 

21 Id. at § 10.438.

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

23 See A.S., Docket No. 19-0171 (issued June 12, 2019); Frederick Arters, 53 ECAB 397 (2002); Federal (FECA) 

Procedure Manual, supra note 12 at Chapter 6.400.3 (September 2018).

24 See E.K., Docket No. 18-0587 (issued October 1, 2018); S.B., Docket No. 16-1795 (issued March 2, 2017).
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ORDER

IT IS HEREBY ORDERED THAT the August 13, 2019 decision of the Office of

Workers’ Compensation Programs is affirmed.

Issued: October 15, 2020

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