United States Department of Labor

Employees’ Compensation Appeals Board

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J.T., Appellant

and

U.S. POSTAL SERVICE, POST OFFICE, 

Aiken, SC, Employer

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Docket No. 21-0010

Issued: September 30, 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 October 2, 2020 appellant filed a timely appeal from an April 8, 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 appellant received an overpayment of wage-loss compensation 

in the amount of $6,525.40 for the period November 1, 2018 through February 1, 2020, for which 

she was without fault, because she concurrently received FECA wage-loss compensation benefits 

 

1

5 U.S.C. § 8101 et seq.

2 The Board notes that,following the April8, 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

and Social Security Administration (SSA) age-related retirement benefits without appropriate 

offset; (2) whether OWCP properly denied waiver of recovery of the overpayment; (3) whether 

OWCP properly required recovery of the overpayment by deducting $200.00 from appellant’s 

continuing compensation payments every 28 days.

FACTUAL HISTORY

On September 3, 1991 appellant, then a 34-year-old part-time flexible carrier, sustained a 

traumatic injury when delivering mail while in the performance of duty.3 OWCP accepted the 

claim for lumbar sprain and an exacerbation of degenerative disc disease. It subsequently 

expanded its acceptance of the claim to include reflex sympathetic dystrophy (RSD) of the left leg. 

OWCP paid appellant wage-loss compensation on the periodic rolls beginning June 16, 2002.

On January 15, 2020 SSA provided OWCP with a Federal Employees Retirement System 

(FERS)/SSA dual benefit calculation form.4 The form indicated that with FERS, appellant was 

entitled to a monthly payment of $1,055.00 effective November 2018, $1,084.00 effective 

December 2018, and $1,102.00 effective December 2019. Without FERS, she was entitled to a 

monthly payment rate of $635.00 effective November 2018, $652.00 effective December 2018,

and $663.00 effective December 2019. 

OWCP completed a FERS offset calculation form on February 3, 2020.5 It calculated the 

amount that it should have offset from appellant’s wage-loss compensation from November 1, 

2018 through February 1, 2020. OWCP found that effective November 1, 2018, the monthly offset 

was $420.00, or $387.69 every 28 days; effective December 1, 2018, the monthly offset was 

$432.00, or $398.77 every 28 days; and, effective December 1, 2019, the monthly offset was 

$439.00 or $405.23 every 28 days. It divided the 28-day offset amount to find the daily amount, 

which it multiplied by the number of days in each period from November 1, 2018 through 

February 1, 2020 to find the amount that it had overpaid appellant for each period. OWCP added 

the amounts for each period and determined that it should have offset a total of $6,525.40 from her 

wage-loss compensation.

On February 11, 2020 OWCP notified appellant of its preliminary overpayment 

determination that she had received an overpayment of compensation in the amount of $6,525.40 

because it had failed to reduce her wage-loss compensation benefits for the period November 1, 

2018 through May 25, 2019 by the portion of her SSA age-related retirement benefits that were 

attributable to federal service. It further advised her of its preliminary determination that she was 

without fault in the creation of the overpayment. OWCP provided appellant with an overpayment 

action request form and an overpayment recovery questionnaire (Form OWCP-20). Additiona lly, 

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.

 

3 The traumatic injury claim (Form CA-1) is not found in the case record.

4 The employing establishment indicated on an April 19, 2002 claim for compensation (Form CA-7) that appellant 

was covered by FERS.

5 The form was certified on February 13, 2020. 
3

On March 1, 2020 appellant completed an overpayment action request form contesting that 

she had received an overpayment and requesting waiver of recovery of the overpayment. She 

advised that she had been told that she could receive retirement benefits from SSA and FECA 

benefits.

By decision dated April 8, 2020, OWCP finalized its preliminary overpayment 

determination, finding that appellant had received a $6,525.40 overpayment of compensation from 

November 1, 2018 through February 1, 2020 because she had concurrently received FECA wageloss compensation and SSA age-related retirement benefits without the appropriate offset. It 

further determined that she was without fault in the creation of the overpayment, but denied waiver 

of recovery of the overpayment, noting that appellant had not submitted information supporting 

waiver of recovery. OWCP required recovery of the overpayment by deducting $200.00 every 28 

days from his 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.6 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.7

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.8 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.9

ANALYSIS -- ISSUE 1

The Board finds that appellant received an overpayment of wage-loss compensation in the 

amount of $6,525.40 for the period November 1, 2018 through February 1, 2020, for which she 

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

SSA age-related retirement benefits without appropriate offset. 

OWCP paid appellant wage-loss compensation for total disability following her injury. 

Appellant subsequently began receiving SSA age-related retirement benefits. As noted, a claimant 

cannot receive FECA compensation for wage-loss and SSA age-related retirement benefits 

 

6

5 U.S.C. § 8102(a).

7

Id. at § 8116.

8

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

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

attributable to federal service for the same period.

10

 Accordingly, the Board finds that fact of 

overpayment has been established.11 

To determine the amount of the overpayment, the portion of SSA age-related retirement 

benefits 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 the SSA rates with FERS and without FERS for 

specific periods from November 1, 2018 through February 1, 2020. OWCP set forth its 

calculations of the amount that should have been offset during the relevant period based on 

information provided by SSA for the period November 1, 2018 through February 1, 2020. 

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

period November 1, 2018 through February 1, 2020 and finds that an overpayment of 

compensation in the amount of $6,525.40 was created.12

LEGAL PRECEDENT -- ISSUE 2

Section 8129 of FECA13 provides that an overpayment must be recovered unless incorrect 

payment has been made to an individual who is without fault and when adjustment or recovery 

would defeat the purpose of FECA or would be against equity and good conscience. Thus, a 

finding that appellant was without fault does not automatically result in waiver of the overpayment. 

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

defeat the purpose of FECA or would be against equity and good conscience.14

According to 20 C.F.R. § 10.436, recovery of an overpayment would defeat the purpose of 

FECA if recovery would cause hardship because the beneficiary needs substantially all of his or 

her 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.15 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, 

 

10 Supra note 8. See A.C., Docket No. 18-1550 (issued February 21, 2019).

11 See S.H., Docket No. 20-1157 (issued December 23, 2020); K.H., Docket No. 18-0171 (issued August 2, 2018).

12 See N.B., Docket No. 20-0727 (issued January 26, 2021); L.L., Docket No. 18-1103 (issued March5, 2019).

13 Supra note 1.

14 G.L., Docket No. 19-0297 (issued October 23, 2019).

15 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. Its 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. Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Final Overpayment Determinations, 

Chapter 6.400.4(a)(2) and (3) (September 2018).
5

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

or 401(k)), jewelry, and artwork.16

Section 10.437 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 

her position for the worse.17

ANALYSIS -- ISSUE 2

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

As OWCP found appellant not at 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, 

however, has the responsibility to provide the appropriate financial information and documentation 

to OWCP.19

In its preliminary overpayment determination, dated February 11, 2020, OWCP requested 

that appellant provide a completed Form OWCP-20 and supporting financial information, 

including copies of income tax returns, bank account statements, bills and cancelled checks, pay 

slips, and any other records to support income and expenses. It advised her that it would deny 

waiver of recovery of the overpayment if she failed to furnish the requested financial information 

within 30 days. Appellant did not timely submit a completed Form OWCP-20 or the financial 

information necessary for OWCP to determine if recovery of the overpayment would defeat the 

purpose of FECA or be against equity and good conscience.20

Accordingly, as appellant did not submit the information required under 20 C.F.R. § 10.438 

of OWCP’s regulations to determine her eligibility for waiver, the Board finds that OWCP 

properly denied waiver of recovery of the overpayment.21

 

16 Id. at Chapter 6.400.4b(3)(a), (b).

17 20 C.F.R. § 10.437(b)(1).

18 Id. at § 10.436.

19 Id. at § 10.438. See E.S., Docket No. 20-0919 (issued February 8, 2021).

20 J.C., Docket No. 20-1062 (issued January 4, 2021); E.M., Docket No. 19-0857 (issued December 31, 2019).

21 J.C., id.
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LEGAL PRECEDENT -- ISSUE 3

The Board’s jurisdiction over recovery of an overpayment is limited to reviewing those 

cases where OWCP seeks recovery from continuing compensation under FECA.22

Section 10.411 of OWCP’s regulations 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 

circumstances of the individual, and any other relevant factors, so as to minimize 

any hardship.”

23

ANALYSIS -- ISSUE 3

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

$200.00 from appellant’s continuing compensation payments every 28 days.

As discussed, appellant did not complete Form OWCP-20 or provide the necessary 

financial information to support her income and expenses. The overpaid individual is responsible 

for providing information about income, expenses, and assets as specified by OWCP.24 When an 

individual fails to provide requested financial information, OWCP should follow minimum 

collection guidelines designed to collect the debt promptly and in full.25 As appellant did not 

submit the financial documentation to OWCP as requested, the Board finds that OWCP properly 

directed recovery of the $6,525.40 overpayment of compensation at the rate of $200.00 every 28 

days from her continuing compensation payments.26

CONCLUSION

The Board finds that appellant received an overpayment of wage-loss compensation in the 

amount of $6,525.40 for the period November 1, 2018 through February 1, 2020 for which she 

was without fault, because 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 

 

22 20 C.F.R. § 10.441; see M.P., Docket No. 18-0902 (issued October 16, 2018).

23 Id. at § 10.441(a).

24 20 C.F.R § 10.438.

25 E.M., supra note 20; Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Debt Liquidation, Chapter 

6.500.2 (September 2018). 

26 See J.A., Docket No. 19-1946 (issued July 13, 2020); E.K., Docket No. 18-0587 (issued October 1, 2018).
7

the overpayment by deducting $200.00 from appellant’s continuing compensation payments every 

28 days.

ORDER

IT IS HEREBY ORDERED THAT the April 8, 2020 decision of the Office of Workers’

Compensation Programs is affirmed.

Issued: September 30, 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