United States Department of Labor

Employees’ Compensation Appeals Board

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V.R., Appellant

and

U.S. POSTAL SERVICE, HERITAGE

STATION, San Antonio, TX, Employer

__________________________________________

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Docket No. 22-0086

Issued: May 3, 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

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On October 27, 2021 appellant filed a timely appeal from a September 29, 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 over the merits of this case.

ISSUES

The issues are: (1) whether appellant received an overpayment of schedule award 

compensation in the amount of $3,096.46 for the period February 28 through March 27, 2021, for 

which she was without fault; and (2) whether OWCP properly denied waiver of recovery of the 

overpayment.

FACTUAL HISTORY

On July 27, 2016 appellant, then a 55-year-old sales service associate, filed an occupational 

disease claim (Form CA-2) alleging that she sustained a right hand and wrist condition causally 

related to factors of her federal employment, including repetitive standing, typing, and lifting 

1

5 U.S.C. § 8101 et seq.
2

packages. She did not stop work. OWCP accepted the claim for right trigger thumb, a ganglion 

cyst of the right wrist, and other synovitis and tenosynovitis of the right hand. It subsequently 

expanded its acceptance of the claim to include trigger finger of the right middle and index fingers.

By decision dated September 12, 2019, OWCP granted appellant a schedule award for 28 

percent permanent impairment of the right middle finger. The period of the award ran for seven 

weeks from September 5 to October 23, 2018.

By decision dated December 23, 2020, OWCP granted appellant a schedule award for an 

additional 11 percent permanent impairment of the right upper extremity, for a total right upper 

extremity permanent impairment rating of 26 percent. It noted that she had previously received a 

schedule award for 28 percent right middle finger impairment, which converted to 5 percent right 

upper extremity impairment. OWCP further found that appellant had previously received 10 

percent right upper extremity impairment for carpal tunnel syndrome on April 6, 1998.2 The 

period of the award ran for 34.32 weeks from July 8, 2020 to March 5, 2021.

On March 26, 2021 OWCP paid appellant schedule award compensation of $579.72 for 

the period February 28 through March 5, 2021. On March 27, 2021 it paid her schedule award 

compensation of $3,096.46 for the period February 28 through March 27, 2021.

In a preliminary overpayment determination dated April 16, 2021, OWCP notified 

appellant of its preliminary finding that she had received a $3,096.46 overpayment of schedule 

award compensation for the period February 28 through March 27, 2021 because it had issued an 

“extra,” full schedule award payment. It 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 informed her that she could request waiver of recovery of the overpayment. 

It further requested that she provide supporting financial documentation, including copies of 

income tax returns, bank account statements, bills and canceled checks, pay slips, and any other 

records supporting income and expenses. Additionally, OWCP provided an overpayment action 

request form and notified appellant 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 a May 10, 2021 overpayment action request form, appellant requested waiver of 

recovery of the overpayment, noting that OWCP had found her without fault in the creation of the 

overpayment. In an OWCP-20 form of even date, she listed monthly income of $2,601.91, 

monthly expenses of $2,442.65, and assets in cash, checking, and savings accounts totaling 

$8,123.00. Appellant asserted that she needed to use the money in her savings account for tax and 

home expenses. She indicated that she had no dependents. 

By decision dated September 29, 2021, OWCP finalized its preliminary overpayment 

determination, finding that appellant had received a $3,096.46 overpayment of schedule award 

compensation because it paid her an extra,full schedule award payment. It noted that her schedule 

award ended on March 5, 2021. OWCP advised that it had issued a schedule award payment for 

the period February 28 through March 5, 2021, but that, due to technical error, it had subsequently 

issued an additional full schedule award payment for the period February 28 through 

2 Under OWCP File No. xxxxxx129, on April 6, 1998 Dr.Henry Mobley, an internistserving as a district medical 

adviser, found that appellant had 10 percent permanent impairment of the right upper extremity.
3

March 27, 2021. It denied waiver of recovery of the overpayment, finding that appellant had 

sufficient assets to repay the debt. OWCP required recovery of the overpayment by directing her

to submit repayment for the full amount within 30 days of the date of the decision. 

LEGAL PRECEDENT -- ISSUE 1

The schedule award provisions of FECA3 and its implementing regulations4 set forth the 

number of weeks of compensation payable to employees sustaining permanent impairment from 

loss or loss of use, of scheduled members or functions of the body. Section 10.404 of the 

regulations provides that compensation is provided for specified periods of time for the permanent 

loss or loss of use of certain members.5 FECA provides for 312 weeks’ of compensation for 100 

percent loss or loss of use of an upper extremity6 and the implementing regulations provides that 

compensation for proportionate periods of time is payable for partial loss. 7

OWCP’s procedures provide that an overpayment is created when a schedule award 

expires, but compensation continues to be paid.8

ANALYSIS -- ISSUE 1

The Board finds that appellant received an overpayment of schedule award compensation 

in the amount of $3,096.46 for the period February 28 through March 27, 2021 for which she was 

without fault.

On December 23, 2020 OWCP granted appellant a schedule award for an additional 11 

percent permanent impairment of the right upper extremity. The period of the award ran for 34.32 

weeks from July 8 to March 5, 2021. The Board notes that 11 percent of the 312 weeks of 

compensation allowable for total loss of use of an upper extremity equals 34.32 weeks of 

compensation. OWCP paid appellant schedule award compensation for 34.32 weeks, from July 8 

through March 5, 2021. It subsequently issued an extra schedule award payment covering the 

period February 28 through March 27, 2021 in the amount of $3,096.46. Appellant was not 

entitled to the $3,096.46 payment as she had already been fully compensated for the schedule 

award.9 Consequently, she received an overpayment of compensation in the amount of $3,096.46

for the period February 28 through March 27, 2021.10 The Board, thus, finds that OWCP properly 

determined the fact and amount of overpayment.

3

Supra note 1.

4

20 C.F.R. § 10.404.

5

Id.

6

5 U.S.C. § 8107(c)(2).

7

Supra note 4.

8 Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Identifying and Calculating an Overpayment, 

Chapter 6.200.1f (1)(i) (September 2020); see T.C., Docket No. 20-0302 (issued November 12, 2020).

9

See T.S., Docket No. 19-1895 (issued September 22, 2020); M.J., Docket No. 19-1665 (issued July 29, 2020).

10 See S.L., Docket No. 21-0902 (issued December 22, 2021).
4

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.11

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. 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 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.14 An individual’s liquid assets 

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

certificate of deposits.15

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 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.16 OWCP’s procedures 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.17

OWCP’s regulations provide that the individual who received the overpayment is 

responsible for providing information about income, expenses, and assets as specified by OWCP.

This information is needed to determine whether recovery of an overpayment would defeat the 

11 5 U.S.C. § 8129. 

12 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, Pa rt 6 -- Debt Management, Final Overpayment Determinations, 

Chapter 6.400.4a(2)(3) (September 2020).

13 Id. at Chapter 6.400.4(a)(3); N.J., Docket No. 19-1170 (issued January 10, 2020); M.A., Docket No. 18-1666 

(issued April 26, 2019).

14 Id. at Chapter 6.400.4(a)(2).

15 Id. at Chapter 6.400.4(b)(3)

16 20 C.F.R. § 10.437(a)(b); E.H., Docket No. 18-1009 (issued January 29, 2019).

17 Supra note 12at Chapter 6.400.4c(3).
5

purpose of FECA or be against equity and good conscience. The information is also used to 

determine the repayment schedule, if necessary.18

ANALYSIS -- ISSUE 2

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

OWCP found appellant without fault in the creation of the overpayment; however, 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. 19

On May 10, 2021 appellant submitted a completed Form OWCP-20 detailing her income, 

assets, and expenses. She indicated that she had no dependents and had assets in cash, checking, 

and savings accounts totaling $8,123.00. The Board finds that appellant’s assets of $8,123.00 

exceed the resource base of $6,200.00 for an individual without dependents, as provided in 

OWCP’s procedures.20 As appellant has not met the second prong of the two-prong test for 

determining whether recovery of the overpayment would defeat the purpose of FECA, it is not 

necessary for OWCP to consider the first prong of the test, i.e., whether she needs substantially all 

of her current income to meet ordinary and necessary living expenses.21 She has not established 

that she was entitled to waiver on the basis of defeating the purpose of FECA. 22

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 

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

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

OWCP properly found that recovery of the overpayment would not be against equity and good 

conscience.23 

Appellant has not established that recovery of the overpayment would defeat the purpose 

of FECA or be against equity and good conscience, and thus the Board finds that OWCP properly 

denied waiver of recovery of the overpayment.

On appeal, appellant contends that she has experienced severe financial hardship repaying 

the debt and argues that she was without fault in the creation of the overpayment. A finding that 

she was without fault does not automatically result in waiver of recovery of the overpayment. 24 

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

19 Id. at § 10.436.

20 Supra note 12; see also T.C., Docket No. 21-0612 (issued December 2, 2021).

21 See S.W., Docket No. 20-0363 (issued November 23, 2020); M.H., Docket No. 19-1497 (issued 

September 9, 2020).

22 N.B., Docket No. 20-0727 (issued January 26, 2021); R.D.,Docket No. 19-1598 (issued April17, 2020).

23 N.J., Docket No. 19-1170 (issued January 10, 2020); V.T., Docket No. 18-0628 (issued October 25, 2018).

24 See A.F., Docket No. 20-0842 (issued February 2, 2021); L.G., Docket No. 19-1274 (issued July 10, 2020).
6

As explained, OWCP properly denied waiver of recovery as it would not defeat the purpose of 

FECA or be against equity and good conscience.25

CONCLUSION

The Board finds that appellant received an overpayment of schedule award compensation 

in the amount of $3,096.46 for the period February 28 through March 27, 2021 for which she was 

without fault. The Board further finds that OWCP properly denied waiver of recovery of the 

overpayment.

ORDER

IT IS HEREBY ORDERED THAT the September 29, 2021 decision of the Office of 

Workers’ Compensation Programs is affirmed.

Issued: May 3, 2022

Washington, DC

Alec J. Koromilas, Chief Judge

Employees’ Compensation Appeals Board

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board

25 With respect to recovery of the overpayment of compensation, the Board’s jurisdiction is limited to reviewing 

those cases where OWCP seeks recovery from continuing compensation benefits under FECA. As appellant is no 

longer receiving wage-loss compensation, the Board does not have jurisdiction with respect to the recovery of the 

overpayment under the Debt Collection Act. R.W.,Docket No. 18-1059 (issued February 6, 2019); Cheryl Thomas,

55 ECAB 610 (2004).