United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

D.J., Executrix of the Estate of L.J., Appellant

and

DEPARTMENT OF THE AIR FORCE, KELLY 

AIR FORCE BASE, TX, Employer

__________________________________________

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Docket No. 22-0012

Issued: August 18, 2022

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, Deputy Chief Judge

JAMES D. McGINLEY, Alternate Judge

JURISDICTION

On October 4, 2021 appellant filed a timely appeal from a September 22, 2021 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 to consider the merits of the case.2

ISSUES

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

overpayment of compensation in the amount of $2,144.58 for the period September 10, 2000 

through March 2, 2020, for which he was without fault, because basic life insurance (BLI) and 

1

5 U.S.C. § 8101 et seq.

2 Appellant appealed a July 31, 2019 OWCP decision which suspended the employee’s compensation benefits 

effective July 21, 2019. As more than 180 days has elapsed from this decision, to the filing of this appeal, pursuant 

to FECA and 20 C.F.R. §§ 501.2(c) and 501.3, the Board lacks jurisdiction to review the merits of that decision. The 

Board notes, however, that on October 30, 2019 OWCP reinstated the employee’s compensation benefits effective 

July 21, 2019. 
2

post-retirement basic life insurance (PRBLI) premiums were improperly deducted from his FECA 

wage-loss compensation; and (2) whether OWCP properly denied waiver of recovery of the 

overpayment.

FACTUAL HISTORY

This case has previously been before the Board on different issues.

3

 The facts and 

circumstances of the case as set forth in the Board’s prior decisions are incorporated herein by 

reference. The relevant facts are as follows.

OWCP has accepted this claim for permanent aggravation of disc degeneration and 

permanent aggravation of traumatic arthropathy of the bilateral shoulders. 4 Itpaid appellantwageloss compensation and medical benefits for his accepted conditions.

On March 4, 2020 appellant informed OWCP that the employee, her father, had passed 

away on March 3, 2020.

5

 

OWCP on December 7, 2000 received a PRBLI election form signed by the employee on 

June 26, 1987 indicating his selection of PRBLI at “50 (percent) reduction.” The form also 

indicates that the employee selected life insurance options A and B. On March 20, 2000 he elected 

to freeze all of his Option B life insurance. The record includes undated correspondence from the 

Office of Personnel Management (OPM) confirming this selection.

On August 16, 2021 OWCP calculated the amount of the employee’s life insurance 

premiums that should have been deducted for the periods September 10, 2000 through January 11, 

2003;January 12, 2003 through August 20, 2005;January 8, 2007 through November 21, 2009;

and May 26, 2016 through March 2, 2020. It attached the employee’s compensation payment 

history for the same periods. 

By notice dated August 17, 2021, addressed to the employee’s estate, OWCP issued a 

preliminary overpayment determination regarding the overpayment in the amount of $2,144.58 for 

the period September 10, 2000 through March 2, 2020, for which the employee was without fault, 

because premiums for BLI and PRBLI were not deducted from those periodic rolls compensation 

payments. It requested that she submit a completed overpayment recovery questionnaire (Form 

OWCP-20) to determine a fair repayment method and provide supportingfinancial documentation, 

including copies of income tax returns, bank account statements, bills, pay slips, and any other 

records to support income and expenses. OWCP provided her with an overpayment action request 

form and notified her that, within 30 days of the date of the letter, she could request a telephone 

3 Docket No. 04-1274 (issued December 16, 2004); Docket No. 00-2685 (issued November 28, 2001); Docket No. 

92-0936 (issued December 14, 1992); Docket No. 88-0967 (issued August 2, 1988); Docket No. 87-1758 (issued 

December 9, 1987); Docket No. 85-0098 (issued February 26, 1985).

4 The Board notes that appellant has previously accepted claims. OWCP has administratively combined OWCP 

File Nos. xxxxxx875, xxxxxx625, xxxxxx132, and xxxxxx926, with the latter serving as the master file. 

5 The case record indicates that appellant was appointed executrix of the employee’s estate on May 26, 2020. 
3

conference, a final decision based on the written evidence, or a prerecoupment hearing. No 

response was received. 

By decision dated September 22, 2021, also addressed to the employee’s estate, OWCP 

finalized the overpayment in the amount of $2,144.58 for the period September 10, 2000 through 

March 2, 2020. It denied waiver of recovery of the overpayment and required the $2,144.58

overpayment be repaid in full.

LEGAL PRECEDENT

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 

When an overpayment has been made to an individual because of an error of fact or law, 

adjustment shall be made under regulations prescribed by the Secretary of Labor by decreasing 

later payments to which the individual is entitled.7

Under the Federal Employees’ Group Life Insurance program, most civilian employees of 

the Federal Government are eligible to participate in BLI and one or more of the options. 8 The 

coverage for BLI is effective unless waived,9 and premiums for basic and optional life coverage 

are withheld from the employee’s pay.10 Upon retirement, separation from the employing 

establishment, or placement on the periodic rolls, an employee may choose to continue basic and 

optional life insurance coverage, in which case the schedule of deductions made will be used to 

withhold premiums from his or her annuity or compensation payments.11

A 1980 amendment of 5 U.S.C. § 8706(b)(2) provides that an employee receiving 

compensation under FECA may elect continuous withholdings from his or her compensation, so 

that his or her life insurance coverage may be continued without reduction. OWCP’s regulations 

at 5 C.F.R. § 870.701 (December 5, 1980) provide that an eligible employee has the option of 

choosing no life insurance; Option A - basic coverage (at no additional cost) subject to continuous 

withholdings from compensation payments that would be reduced by 2 percent a month after age 

65 with a maximum reduction of 75 percent; Option B - basic coverage (at an additional premium) 

subject to continuous withholdings from compensation payments that would be reduced by 1

percent a month after age 65 with a maximum reduction of 50 percent; or Option C - basic coverage 

6

5 U.S.C. § 8102(a).

7

Id. at § 8129(a).

8

Id. at § 8702(a).

9

Id. at § 8702(b).

10 Id. at § 8707.

11 Id. at § 8706.
4

subject to continuous withholdings from compensation payments with no reductions after age 65 

(at a greater premium).12

Each employee must elect or waive Option A, Option B, and Option C coverage, in a 

manner designated by OPM, within 60 days after becoming eligible, unless, during earlier 

employment, he or she filed an election or waiver that remained in effect. 13 An employee who 

does not file a life insurance election form with his or her employing office, in a manner designated 

by OPM, specifically electing any type of optional insurance, is considered to have waived it and 

does not have that type of optional insurance.14

When an under withholding of life insurance premiums occurs, the entire amount is 

deemed an overpayment of compensation because OWCP must pay the full premium to OPM upon 

discovery of the error.15

OWCP’s procedures for recovery from a deceased debtor’s estate provide that, if the 

claimant recently passed away, it should take prompt action because creditors who have not 

properly asserted a claim before the estate is closed are generally precluded from any recovery. 16

Thus, it should refer the debt to the financial management system (FMS) for offset of the 

deceased claimant’s last federal tax refund under the Treasury’s Offset Program (TOP).17 OWCP 

has a special profile with FMS under TOP for the collection of these specific estate debts. The 

claims examiner should follow the referral procedures set forth in Chapter 6.500.12.

18

 Including 

sending the complete referral package to the national office for final review and forwarding to the 

FMS.19

ANALYSIS

The Board finds that this case is not in posture for decision.

12 See R.B., (J.B.), Docket No. 19-0700 (issued March16, 2021); D.H., Docket No. 19-0384 (issued 

August 12, 2019).

13 20 C.F.R. § 870.504(a)(1).

14 Id. at § 870.504(b).

15 5 U.S.C. § 8707(d); see also D.R., (G.R.), Docket No. 19-1675 (issued October 8, 2020); R.B., (J.B.), and D.H., 

supra note 12.

16 Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Debt Liquidation, Chapter 6.500.15 

(September 2020).

17 31 C.F.R. § 285.2; id. at Chapter 6.500.15(g)(1)-(7) (September 2018). See also R.B., (J.B.), supra note 12; W.J. 

(E.J.), Docket No. 18-1035 (issued July 9, 2019).

18 Id. at Chapter 6.500.12 (September 2020).

19 Id. at Chapter 6.500.15(e).
5

By notice dated August 17, 2021, addressed to the employee’s estate, OWCP issued a

notice of preliminary overpayment, finding that the employee had received an overpayment of 

compensation in the amount of $2,144.58 for the period September 10, 2000 through March 2, 

2020 due to under withholding of BLI and PRBLI premiums. 

OWCP’s procedures provide for recovery from a deceased debtor’s estate.20 The 

procedures specifically require that, if the claimant recently passed away, OWCP should refer the 

debt to the FMS for offset of the deceased claimant’s last federal tax refund under the TOP.21 

OWCP has a special profile with FMS under TOP for the collection of these specific estate debts. 

The claims examiner should follow the referral procedures set forth in Chapter 6.500.12,22

including sending the complete referral package to the national office for final review and 

forwarding to the FMS.23

The evidence of record does not substantiate that actions OWCP has taken to recover the 

overpayment debt include a referral to FMS for appropriate offset under the TOP prior to taking 

overpayment actions against the employee’s estate. The case shall therefore be remanded to 

OWCP to follow all procedures as outlined in Chapter 6.500.15 of its procedure manual. 

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

de novo decision.

CONCLUSION

The Board finds that this case is not in posture for decision.

20 Supra note 17.

21 Supra note 17.

22 Supra note 17.

23 Supra note 17.
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ORDER

IT IS HEREBY ORDERED THAT the September 22, 2021 decision of the Office of 

Workers’ Compensation Programs is set aside, and the case is remanded to OWCP for further 

proceedings consistent with this decision of the Board.

Issued: August 18, 2022

Washington, DC

Alec J. Koromilas, Chief Judge

Employees’ Compensation Appeals Board

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

James D. McGinley, Alternate Judge

Employees’ Compensation Appeals Board