United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

R.K., Appellant

and

U.S. POSTAL SERVICE, NORTH LONG 

BEACH CARRIER ANNEX, Long Beach, CA, 

Employer

__________________________________________

)

)

)

)

)

)

)

)

)

Docket No. 22-1193

Issued: December 14, 2022

Appearances: Case Submitted on the Record

Appellant, pro se

Office of Solicitor, for the Director

DECISION AND ORDER

Before:

PATRICIA H. FITZGERALD, Deputy Chief Judge

JANICE B. ASKIN, Judge

JAMES D. McGINLEY, Alternate Judge

JURISDICTION

On August 4, 2022 appellant filed a timely appeal from a May 23, 2022 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 $83,824.35 for the period February 1, 2008 

through July 17, 2021, for which she was without fault, because she concurrently received FECA 

1

5 U.S.C. § 8101 et seq.

2 The Board notes that following the May 23, 2022 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

wage-loss compensation and Social Security Administration (SSA) age-related retirement benefits 

without an appropriate offset; and (2) whether OWCP properly denied waiver of recovery of the 

overpayment; and (3) whether OWCP properly required recovery of the overpayment by deducting 

$268.49 from appellant’s continuing compensation payments every 28 days.

FACTUAL HISTORY

On April 23, 2004 appellant, then a 62-year-old mail carrier, filed an occupational disease 

claim (Form CA-2) alleging that on March 15, 2004 she experienced problems with her neck, right 

shoulder, low back, thigh, and right hip causally related to factors of her federal employment. 

OWCP accepted the claim, assigned OWCP File No. xxxxxx494, for right shoulder tendinitis. It 

subsequently expanded its acceptance of the claim to include a temporary aggravation of 

degenerative arthritis of the cervical and lumbar spine and a permanent aggravation of bilateral 

degenerative hip arthritis. OWCP paid appellant wage-loss compensation on the supplemental 

rolls from April 7, 2004 to August 5, 2006 and on the periodic rolls as of August 6, 2006.3

On August 20, 2020 the employing establishment advised that appellant was covered by 

the FERS retirement system and requested that OWCP contact SSA to determine whether it should 

offset her compensation due to her receipt of SSA retirement benefits. 

OWCP received an April 3, 2007 notification of personnel action (PS Form 50), which 

indicated that appellant had retired, and that her last day in pay status was May 26, 2006. It 

provided that her retirement plan was the Federal Employees’ Retirement System (FERS). 

On August 25, 2020 OWCP sent a FERS/SSA dual benefits form to SSA for completion. 

On October 8, 2020 SSA completed the FERS/SSA dual benefits form, reporting 

appellant’s monthly SSA age-related retirement benefitrates with and without FERS for the period 

February 2008 through December 2019 as follows: effective February 2008, appellant’s SSA rate 

with FERS was $1,437.60 and without FERS was $979.60; effective December 2008 through 

December 2010, her SSA rate with FERS was $1,520.90 and without FERS was $1,036.40;

effective December 2011, her SSA rate with FERS was $1,575.60 and without FERS was 

$1,073.70; effective December 2012, her SSA rate with FERS was $1,602.30 and without FERS 

was $1,091.90; effective December 2013, her SSA rate with FERS was $1,626.30 and without 

FERS was $1,108.20; and effective December 2014 and 2015, her SSA rate with FERS was 

$1,653.90 and without FERS was $1,127.00; effective December 2016, her SSA rate with FERS 

was $1,658.80 and without FERS was $1,130.30; effective December 2017, her SSA rate with 

FERS was $1,691.90 and without FERS was $1,152.90; effective December 2018, her SSA rate 

with FERS was $1,739.20 and without FERS was $1,185.10; and effective December 2019, her 

SSA rate with FERS was $1,767.00 and without FERS was $1,204.00.

On March 24, 2021 OWCP again sent SSA a FERS/SSA dual benefits form for completion. 

3 OWCP subsequently accepted appellant’s March14, 2007 occupational disease claim for bilateral carpal tunnel 

syndrome, assigned OWCP File No. xxxxxx611. It administratively combined OWCP File No. xxxxxx611 with 

OWCP File No. xxxxxx494, with the latter serving as the master file.
3

In a June 17, 2021 response, SSA provided the same monthly benefit rate figures for 

appellant with and without FERS from February 2008 through December 2019. It added, 

however, that her SSA age-retirement benefit rate with FERS was $1,789.90 and without FERS 

was $1,219.60, effective December 2020.

On July 23, 2021 OWCP completed a FERS offset overpayment calculation form. It 

calculated the amount that it should have offset from appellant’s wage-loss compensation for each 

period from February 1, 2008 through July 17, 2021. OWCP found that, from February 1 through 

November 30, 2008, she received an overpayment of $4,590.07, from December 1, 2008 through 

November 30, 2009, she received an overpayment of $5,829.97, from December 1, 2009 through 

November 30, 2010, she received an overpayment of $5,829.97, from December 1, 2010 through 

November 30, 2011, she received an overpayment of 5,829.97, from December 1, 2011 through 

November 30, 2012, she received an overpayment of $6,059.51, from December 1, 2012 through 

November 30, 2013, she received an overpayment of $6,141.63, from December 1, 2013 through 

November 30, 2014, she received an overpayment of $6,234.28, from December 1, 2014 through 

November 30, 2015, she received an overpayment of $6,340.17, from December 1, 2015 through 

November 30, 2016, she received an overpayment of $6,357.54, from December 1, 2016 through 

November 30, 2017, she received an overpayment of $6,359.42, from December 1, 2017 through 

November 30, 2018, she received an overpayment of $6,485.77, from December 1, 2018 through 

November 30, 2019, she received an overpayment of $6,667.47, from December 1, 2019 through 

November 30, 2020, she received an overpayment of $6,793.12, and from December 1, 2020 

through July 17, 2021, she received an overpayment of $4,305.45. Based on these figures, OWCP 

calculated the total overpayment amount of $83,824.35.

In correspondence dated July 23, 2021, OWCP advised appellant that it was reducing her 

wage-loss compensation effective July 18, 2021 by the portion of her SSA benefits attributable to 

her federal service. It indicated that her new net compensation payment every 28 days would be 

$2,443.46.

On March 17, 2022 OWCP notified appellant of its preliminary determination that she had 

received an $83,824.35 overpayment of compensation from February 1, 2008 through July 17, 

2021 because she concurrently received SSA age-related retirement benefits and FECA wage-loss 

compensation without an appropriate offset. It further advised her of its preliminary determination 

that she was without fault in the creation of the overpayment. OWCP requested that appellant 

submit a completed overpayment recovery questionnaire (Form OWCP-20) to determine a 

reasonable payment method and advised her that she could request waiver of recovery of the 

overpayment. Additionally, 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.

In an April 9, 2022 overpayment action request form, appellant requested waiver of 

recovery of the overpayment and a decision based on the written evidence. In a Form OWCP-20

of even date, appellant reported her total monthly income as $6,062.27. She listed her monthly 

compensation from OWCP as $482.75. Appellant also reported that her monthly expenses totaled 

$6,039.50 and that she had funds of $755.63. She submitted a mortgage statement showing a total 

monthly payment of $2,510.40 and only the cover pages of bank statements merely showing the 

ending balances of $2,972.80 in January 2022, $52.57 in February 2022, and $555.63 in 

March 2022.
4

By decision dated May 23, 2022, OWCP finalized its determinationthat appellant received 

an overpayment of compensation in the amount of $83,824.35 for the period February 1, 2008 

through July 17, 2021 because she concurrently received SSA age-related retirement benefits and 

FECA wage-loss compensation without an appropriate offset. It found her without fault in the 

creation of the overpayment, but denied waiver of recovery. OWCP required recovery of the 

overpayment by deducting $268.49 from appellant’s continuing compensation payments every 28 

days.

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 OWCP to reduce the 

amount of compensation by the amount of any SSA age-related 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 OWCP properly determined that appellant received an overpayment 

of wage-loss compensation in the amount of $83,824.35 for the period February 1, 2008 through 

July 17, 2021, for which she was without fault, because she concurrently received FECA wageloss compensation benefits and SSA age-related retirement benefits without an appropriate offset. 

OWCP paid appellant wage-loss compensation for total disability on the periodic rolls 

beginning August 6, 2006. She received SSA age-related retirement benefits beginning 

February 1, 2008. As noted, a claimant cannot receive concurrent FECA wage-loss compensation 

and SSA age-related retirement benefits attributable to federal service without an appropriate 

offset.

8

 Accordingly, the Board finds that fact of overpayment has been established. 9 

4

5 U.S.C. § 8102.

5

Id. at § 8116.

6

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

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

8

Supra note 7. See F.K., Docket No. 20-1609 (issued June 24, 2021); A.C., Docket No. 18-1550 (issued 

February21, 2019).

9

See L.K., Docket No. 20-1574 (issued June23, 2021); S.H., Docket No. 20-1157 (issued December 23, 2020).
5

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 appellant’s SSA age-related retirement benefits that 

were attributable to her federal service. SSA provided appellant’s SSA age-related retirement 

benefit rates with FERS and without FERS from February 2008 through December 2020. OWCP 

provided its calculations for each relevant period based on SSA’s reported information and 

determined that appellant received an overpayment of compensation in the amount of $83,824.35.

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

February 1, 2008 through July 17, 2021 and finds that an overpayment of compensation in the 

amount of $83,824.35 was created.10

LEGAL PRECEDENT -- ISSUE 2

Section 8129 of FECA11 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. 12

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. 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 provides that recovery of an overpayment is 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 

10 See J.S., Docket No. 22-0369 (issued June 7, 2022); N.B., Docket No. 20-0727 (issued January 26, 2021); L.L., 

Docket No. 18-1103 (issued March 5, 2019).

11 Supra note 1.

12 I.R., Docket No. 22-0088 (issued May 5, 2022); G.L., Docket No. 19-0297 (issued October 23, 2019).

13 20 C.F.R. § 10.436. OWCP’s procedures provide that a claimant is deemed to need substantially all 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 2020).

14 Id. at Chapter 6.400.4b(3)(a), (b).
6

notice that such payments would be made, gives up a valuable right or changes her position for the 

worse.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 

Appellant submitted a completed Form OWCP-20 providing her assets, monthly income, 

and monthly expenses. However, she did not submit sufficient supporting financial 

documentation. While appellantsubmitted a mortgage statement showing a total monthly payment 

of $2,510.40, the only other financial documentsreceived were the cover pages of bank statements 

merely showing the ending balances of $2,972.80 in January 2022, $52.57 in February 2022, and 

$555.63 in March 2022. OWCP, therefore, did not have the necessary current financial 

information to determine if recovery of the overpayment would defeat the purpose of FECA or if 

recovery would be against equity and good conscience. 

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.17

Section 10.441 of OWCP’s regulations18 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. 19 

When an individual fails to provide the 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

15 20 C.F.R. § 10.437(b)(1).

16 See J.R., Docket No. 17-0181 (issued August 12, 2020); L.S., 59 ECAB 350 (2008).

17 Id. at § 10.441; see M.P., Docket No. 18-0902 (issued October 16, 2018).

18 Id. at § 10.441(a).

19 Id.;see L.G., Docket No. 19-1274 (issued July 10, 2020). 

20 C.L., Docket No. 22-0349 (issued August30, 2022); R.O., Docket No. 18-0076 (issued August 3, 2018); Gail M. 

Roe, 47 ECAB 268 (1995).
7

ANALYSIS -- ISSUE 3

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

$268.49 from appellant’s continuing compensation payments every 28 days.

OWCP’s regulations provide that the overpaid individual is responsible for providing 

information about income, expenses, and assets as specified by OWCP. 21 When an individual fails 

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

designed to collect the debt promptly and in full.22

The record supports that, in requiring recovery of the overpayment by deducting $268.49

from appellant’s continuing 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. OWCP followed minimum collection guidelines by requiring 

installments large enough to collect the full debt promptly. Therefore, the Board finds that OWCP 

properly required recovery of the overpayment by deducting $268.49 from appellant’s continuing 

compensation payments every 28 days.23

CONCLUSION

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

of wage-loss compensation in the amount of $83,824.35 for the period February 1, 2008 through 

July 17, 2021, for which she was without fault, because she concurrently received FECA wageloss 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 $268.49 from appellant’s continuing 

compensation payments every 28 days.

21 Id. at § 10.438l; see also A.F., Docket No. 19-0054 (issued June 12, 2019).

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

23 C.L., id.; E.T., Docket No. 22-0234 (issued August 17, 2022); N.G., Docket No. 22-0172 (issued 

August 15, 2022).
8

ORDER

IT IS HEREBY ORDERED THAT the May 23, 2022 decision of the Office of Workers’

Compensation Programs is affirmed.

Issued: December 14, 2022

Washington, DC

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

Janice B. Askin, Judge

Employees’ Compensation Appeals Board

James D. McGinley, Alternate Judge

Employees’ Compensation Appeals Board