United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

D.C., Appellant

and

U.S. POSTAL SERVICE, NEW HYDE PARK 

CARRIER ANNEX POST OFFICE, 

New Hyde Park, NY, Employer

__________________________________________

)

)

)

)

)

)

)

)

)

Docket No. 23-0796

Issued: October 19, 2023

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

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On May 2, 2023 appellant filed a timely appeal from an April 24, 2023 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.

ISSUES

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

overpayment of compensation in the amount of $37,676.37, during the period October 1, 2019 

through July 16, 2022, for which he was without fault, because he concurrently received FECA 

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.

1

5 U.S.C. § 8101 et seq.
2

FACTUAL HISTORY

On June 24, 2015 appellant, then a 61-year-old letter carrier, filed a traumatic injury claim 

(Form CA-1) alleging that he sprained his right knee and calf on that date when he fell in a hole 

while in the performance of duty. OWCP accepted his claim for right knee sprain and internal 

derangement of the right knee. It paid appellant wage-loss compensation.

Appellant filed several claims for compensation (Form CA-7) as of September 15, 2015 

noting that his retirement system was the Federal Employees Retirement System (FERS).

On June 24, 2022 OWCP forwarded a FERS/SSA dual benefits form to SSA.

On July 7, 2022 OWCP received a completed FERS/SSA dual benefits form, wherein SSA 

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

October 2019 through December 2021. Beginning October 2019, the SSA rate with FERS was 

$2,269.20and without FERS was $1,063.00. Beginning December 2019, the SSA rate with FERS 

was $2,305.50 and without FERS was $1,080.00. Beginning December 2020, the SSA rate with 

FERS was $2,335.40 and without FERS was $1,094.00. Beginning December 2021, the SSA rate 

with FERS was $2,473.10 and without FERS was $1,737.90.

On July 21, 2022 OWCP prepared a FERS offset overpayment calculation worksheet 

wherein it noted the calculation of appellant’s offset overpayment from October 1, 2019 through 

July 16, 2022 and computed a total overpayment amount of $37,676.37. It determined that during 

the period October 1 through November 30, 2019, appellant received an overpayment in the 

amount of $2,425.65. Beginning December 1, 2019 through November 30, 2020, he received an 

overpayment in the amount of $14,786.80. Beginning December 1, 2020 through November 30, 

2021, appellant received an overpayment in the amount of $14,937.73. Beginning December 1, 

2021 through July 16, 2022, he received an overpayment in the amount of $5,526.12.

In a preliminary overpayment determination dated August 29, 2022, OWCP advised 

appellant that he received an overpayment of compensation in the amount of $37,676.37 for the 

period October 1, 2019 through July 16, 2022 because his wage-loss compensation benefits had 

not been reduced by his SSA age-related retirement benefits attributable to his federal service. It 

also made a preliminary determination that he 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 him that he could request 

waiver of recovery of the overpayment. It further requested that he provide supporting financial 

documentation, including copies of income tax returns, bank account statements, bills and canceled 

checks, pay slips, and any other records that support income and expenses. Additionally, OWCP 

further provided an overpayment action request form and notified appellant that, within 30 days 

of the date of the letter, he could request a final decision based on the written evidence or a 

prerecoupment hearing.

On September 13, 2022 appellant completed an overpayment action request form wherein 

he requested a prerecoupment hearing before an OWCP hearing representative. He requested 

waiver of recovery of the overpayment arguing that he “spent and committed funds in ways which 

[he] would not have done” and that he would suffer severe financial hardship repaying the debt. 
3

In a completed Form OWCP-20, appellant reported monthly income totaling $3,138.00 and 

monthly expensestotaling $8,523.77; and assets totaling $77,200.00, including a checking account 

balance of $11,000.00; a savings account balance of $1,200.00; and stocks and bonds valued at

$65,000.00.

A telephonic hearing before an OWCP hearing representative was held on 

January 13, 2023.

By decision dated April 24, 2023, OWCP’s hearing representative found that appellant 

received an overpayment of compensation in the amount of $37,676.37 for the period October 1, 

2019 through July 16, 2022, for which he was without fault. He determined that, although 

appellant was without fault in the creation of the overpayment, the overpayment could not be 

waived as his reported assets exceeded the allowable asset base of $10,300.00. OWCP’s hearing 

representative found that there was no evidence to substantiate that recovery of the overpayment 

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

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.

2

 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.

3

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.

4

 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.

5

ANALYSIS -- ISSUE 1

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

of compensation in the amount of $37,676.37 during the period October 1, 2019 through July 16, 

2022, for which he was without fault, because he concurrently received FECA wage -loss 

compensation and SSA age-related retirement benefits, without an appropriate offset.

2

5 U.S.C. § 8102(a).

3

Id. at § 8116.

4

20 C.F.R. § 10.421(d);see P.M., Docket No. 22-1059(issued April28, 2023);T.T., Docket No. 20-1257 (issued 

July 29, 2022); S.M., Docket No. 17-1802 (issued August 20, 2018); L.J., 59 ECAB 264 (2007).

5 FECA Bulletin No. 97-09 (issued February 3, 1997);see alsoL.E., Docket No. 22-0203 (issued March17, 2023);

N.B., Docket No. 18-0795 (issued January 4, 2019). See also S.R., Docket No. 21-0492 (issued March 23, 2022).
4

A claimant cannot receive both FECA compensation for wage loss and SSA age-related 

benefits attributable to federal service for the same period.

6

 The information provided by SSA 

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

federal service during the period October 1, 2019 through July 16, 2022.

To determine the amount of the overpayment, the portion of the SSA benefits that were 

attributable to federal service must be calculated. The SSA provided the SSA rate with FERS, and 

without FERS, for specific periods commencing October 1, 2019 through July 16, 2022. OWCP 

provided its calculations for each relevant period based on an SSA worksheet and calculated the 

amount of overpayment by determining the difference between the SSA amount with and without 

FERS for each period and multiplying the daily offset amount by the number of days in each 

period, which resulted in a total overpayment of $37,676.37.

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

period October 1, 2019 through July 16, 2022, and finds that an overpayment of compensation in 

the amount of $37,676.37 was created.

LEGAL PRECEDENT -- ISSUE 2

Section 8129 of FECA 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 .

7

Recovery of an overpayment will defeat the purpose of FECA when such recovery would 

cause hardship to a currently or formerly entitled beneficiary 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 the beneficiary’s assets do 

not exceed a specified amount as determined by OWCP.

8

 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.

9

 Also, 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.

10

 An individual’s liquid assets include, 

6

5 U.S.C. § 8116(d)(2);see D.W., Docket No. 22-0493(issued March13, 2023); L.W., Docket No. 19-0787 (issued 

October 23, 2019); J.T., Docket No. 18-1791 (issued May 17, 2019).

7

5 U.S.C. § 8129.

8

20 C.F.R. § 10.436(a)(b). For an individual with no eligible dependents the asset base is $6,200.00. The base 

increases to $10,300.00 for an individual with a spouse or one dependent, plus $1,200.00 for each additional 

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

Chapter 6.400.4a(2) (September 2020).

9

Id. at Chapter 6.400.4a(3); M.D.(M.D.), Docket No. 22-0189 (issued March 2, 2023); N.J., Docket No. 19-1170 

(issued January 10, 2020); M.A., Docket No. 18-1666 (issued April 26, 2019).

10 See id. at Chapter 6.400.4a(2) (September 2020).
5

but are not limited to cash, the value of stocks, bonds, saving accounts, mutual funds, and 

certificate of deposits.

11

Recovery of an overpayment is against equity and good conscience when an individual 

who received an overpayment would experience severe financial hardship in attempting to repay 

the debt or when an individual, in reliance on such payment or on notice that such payments would 

be made, gives up a valuable right or changes his or her position for the worse .

12

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. 13

Appellant advised that he had assets totaling $77,200.00. His stated assets exceed the 

resource base of $10,300.00 for an individual with a spouse or one dependent, plus $1,200.00 for 

each additional dependent.

14

 Because appellant 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 not necessary 

to consider the first prong of the test, i.e., whether he needs substantially all of his current income 

to meet ordinary and necessary living expenses.

15

 He has not established that he was entitled to 

waiver on the basis of defeating the purpose of FECA.

16

Additionally, the evidence does not demonstrate that recovery of the overpayment would 

be against equity and good conscience. Appellant has not submitted evidence to substantiate that 

he would experience severe financial hardship in attempting to repay the debt, or that in reliance 

on such payment he gave up a valuable right or changed his position for the worse. Therefore, 

OWCP properly found that recovery of the overpayment would not defeat the purpose of FECA 

or be against equity and good conscience.17

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 overpayment.

11 Id. at Chapter 6.400.4b(3).

12 20 C.F.R. § 10.437(a)(b).

13 Id. at 10.436.

14 Supra note 8.

15 See M.D. (M.D.), supra note 9; S.W., Docket No. 20-0363 (issued November 23, 2020); M.H., Docket No. 

19-1497 (issued September 9, 2020).

16 N.B; Docket No. 20-0727 (issued January 26, 2021); R.D., Docket No. 19-1598 (issued April 17, 2020).

17 M.D. (M.D.), supra note 9; N.J., supra note 9; V.T., Docket No. 18-0628 (issued October 25, 2018).
6

CONCLUSION

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

$37,676.37, during the period October 1, 2019 through July 16, 2022, for which he was without 

fault, as he concurrently received SSA age-related retirement benefits and FECA wage-loss 

compensation, without an appropriate offset. The Board further finds that OWCP properly denied 

waiver of recovery of the overpayment.

ORDER

IT IS HEREBY ORDERED THAT the April 24, 2023 decision of the Office of Workers’

Compensation Programs is affirmed.

Issued: October 19, 2023

Washington, DC

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

Janice B. Askin, Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board