FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0800 

Part 3 – Fiscal Overpayment Process 

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TABLE OF CONTENTS 

Paragraph and Subject Page Date Trans. No. 

Chapter 3-0800 Overpayment Process 

Table of Contents. . . . . . . . i 10/09 10-01 

1 Purpose and Scope. . . . . . . . 1 10/09 10-01 

2 Legislative Authority and. . . . . 1 10/09 10-01 

 Directives 

 3 Definition of Overpayment. . . . 3 10/09 10-01 

 4 Notification of Payment. . . . . 3 10/09 10-01 

 5 Identifying Overpayments . . . . 4 10/09 10-01 

 6 Compensation Paid After 

 Claimant’s Death . . . . . . . 5 10/09 10-01 

 7 Review and Initial Notification 5 10/09 10-01 

 8 Telephone Conferences. . . . . . 7 10/09 10-01 

 9 Burden of Proof. . . . . . . . . 10 10/09 10-01 

 10 Waiver . . . . . . . . . . . . . 10 10/09 10-01 

 11 Overpayment Decisions. . . . . . 17 10/09 10-01 

 

Exhibits 

1 Sample Initial Overpayment 

 Notification Letter 

 (Without Fault). . . . . . . . 10/09 10-01 

 2 Sample Initial Overpayment 

 Notification Letter 

 (With Fault) . . . . . . . . . 10/09 10-01 

 3 Sample Memorandum to File for 

 Administrative Write-Off 

 of Debt Less Than $2000 . . . 10/09 10-01 

 4 Sample Pre-Conference Checklist 10/09 10-01 

 5 Sample Memorandum of Conference 10/09 10-01 

 6 Sample Conference Letter 

 to Claimant. . . . . . . . . 10/09 10-01 

 7 OWCP-20 Overpayment Recovery 

 Questionnaire. . . . . . . . 10/09 10-01 

 8 Sample Final Decision (With 

 Fault Preliminary Incorrect) 10/09 10-01 

 9 Sample Final Decision (With 

 Fault Preliminary Correct) 10/09 10-01 

 10 Sample Final Decision (Without 

 Fault Waiver Denied) . . . . 10/09 10-01 

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1. Purpose and Scope. This chapter describes how the Office 

of Workers’ Compensation Programs (OWCP), through the Division 

of Energy Employees Occupational Illness Compensation (DEEOIC), 

identifies, evaluates, provides notification of, waives, issues 

final decisions regarding, and recovers overpayments under both 

Parts B and E of the EEOICPA. 

2. Legislative Authority and Directives. The instructions in 

this part of the procedure manual derive from the following 

regulations and authority: 

a. The Energy Employees Occupational Illness Compensation 

Program Act (EEOICPA) at 42 U.S.C. 7385j-2 authorizes the 

Secretary of Labor to recover overpayments because of an 

error of fact or law, except when an incorrect payment has 

been made to an individual who is without fault and the 

adjustment or recovery would defeat the purpose of the Act 

or would be against equity and good conscience. With 

respect to recovery, the EEOICPA authorizes OWCP (as 

designee of the Secretary of Labor) to recover the 

overpayment pursuant to regulations prescribed by the 

Secretary. 

b. Public Law 89-508, Federal Claims Collection Act of 

1966 (80 Stat. 308), amended by Public Law 900-904 (2000), 

assigns the Secretary responsibility for the collection of 

debts arising from the activities of the Department of 

Labor. It also provides the authority to compromise, 

terminate, or suspend collection action on debts not in 

excess of $100,000 (exclusive of interest, penalties, and 

administrative costs and after partial payments have been 

deducted). In such cases, there must be no indication of 

fraud, and it must appear that: 

(1) The debtor is unable to pay the full amount in a 

reasonable time, as verified through credit reports or 

other financial information; 

(2) The Government is unable to collect the debt in 

full within a reasonable time by enforced collection 

proceedings; 

(3) The cost of collecting the debt does not justify 

the enforced collection of the full amount; or 

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2. Legislative Authority and Directives. (Continued) 

(4) There is significant doubt concerning the 

Government’s ability to prove its case in court. 

The Department of Labor Manual Series (DLMS) 6, Chapter 

1100, Debt Management, provides that Department of Labor 

Agency Heads are delegated the authority to compromise, 

suspend or terminate collection action on debts stemming 

from program activities not in excess of $100,000, and that 

Agency Heads may re-delegate this authority to officials in 

their agencies with approval of the Chief Financial 

Officer. DLMS6-1111b (1),c (2). 

c. Public Law 97-365, Debt Collection Act of 1982, 

amended several statutes, including the Federal Claims 

Collection Act of 1966. The Debt Collection Act authorizes 

Federal agencies to collect certain charges on outstanding 

debts, to use salary offset or administrative offset to 

collect claims and to use the services of private 

collection agencies.(Note: The Federal Claims Collection 

Act of 1966 as amended by the Debt Collection Act of 1982 

has been codified as 31 USC 900-904.) 

d. Public Law 104-134, Debt Collection Improvement Act of 

1996 also amended several statutes, including the Debt 

Collection Act of 1982. The Debt Collection Improvement 

Act provides that any non-tax debt or claim owed to the 

United States that has been delinquent for a period of 180 

days be turned over to the Secretary of the Treasury, who 

will determine whether to collect or terminate collection 

actions on the debt or claim. 

e. 31 CFR Parts 900-904 (Federal Claims Collection 

Standards) describes standards for the collection and 

compromise of debts, termination of agency collection, and 

referral of civil claims to the Department of Justice. In 

particular, 31 CFR 902.1(b) and 903.1(b) provide that the 

Department of Justice has the exclusive authority to 

compromise, suspend or terminate claims in excess of 

$100,000, exclusive of interest, penalties and 

administrative costs. Consequently, even if OWCP believes 

that compromise, suspension or termination of recovery of 

such a debt is appropriate, the matter must be referred to 

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2. Legislative Authority and Directives. (Continued) 

the Department of Justice, through the Department of the 

Treasury, for determination. 

f. 31 CFR Part 285 includes the provisions for 

transferring delinquent debt to the Department of the 

Treasury. 

g. In a case involving criminal fraud on the part of the 

debtor or any other party having an interest in the claim, 

instructions regarding compromise, suspension or 

termination of recovery do not apply. As provided by 31 

CFR 900.3(a), only the Department of Justice has authority 

to compromise, suspend or terminate collection action on 

such claims. 

h. In cases referred to the Office of the Inspector 

General or the U.S. Attorney for reasons other than 

collection of the debt, the OIG should be advised before 

collection action is initiated in order to evaluate whether 

collection action would jeopardize an ongoing investigation 

or a legal action in progress. 

3. Definition of Overpayment. An overpayment is any amount of 

compensation paid under 42 U.S.C. §§ 7384s, 7384t, 7384u, 7385s2 or 7385s-3 to a recipient that, at the time of payment, is 

paid where no amount is payable or where payment exceeds the 

correct amount of compensation determined by DEEOIC. 

4. Notification of Payment. DEEOIC provides claimants with 

narrative descriptions of benefits paid or payable. Claimants 

who receive compensation payments are required to sign an 

acceptance of payment form. Payments made by check clearly 

indicate the reason for payment. Payments made by Electronic 

Funds Transfer (EFT) appear on the claimant’s financial 

institution statement listing the amount and date of payment. 

Such advice is considered due notice of payment absent 

affirmative evidence to the contrary. The claimant is 

responsible for notifying DEEOIC of any discrepancy between the 

amount paid and the amount stated as paid on a check or bank 

statement. 

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5. Identifying Overpayments. Aside from the requirement that 

the claimant inform DEEOIC of any overpayment that he or she 

discovers, the primary responsibility to identify overpayments 

rests with claims staff. The Final Adjudication Branch (FAB) 

must issue a final decision with respect to eligibility before 

the overpayment is officially identified. 

a. Initial Screening. Claims staff initially screen for 

overpayments, which occur for various reasons, such as: 

 

(1) A claimant was paid compensation in error. This 

might result from a final decision overturning an 

award of compensation. A final decision should not 

overturn a previous award of compensation based on a 

change in policy, if payment was made based on a 

policy that is now obsolete. 

(2) The required tort offset or coordination with 

state workers’ compensation benefits was either 

improperly applied or never applied. 

(3) A lump sum award requires adjustment because 

additional eligible survivors emerge after payment, 

resulting in overpayments to the original eligible 

payees. 

(4) Medical reimbursements to claimants in excess of 

actual medical bills result in overpayments. 

b. Referral to National Office (NO). Once an overpayment 

is identified, the matter is referred to the District 

Office Chief of Operations (COP) or FAB Manager for 

transfer to the NO. 

The Claims Examiner (CE) identifying the overpayment 

prepares a memorandum identifying and evaluating the 

overpayment for review by and signature of the COP/Manager. 

In the memorandum, the CE describes the circumstances of 

the overpayment. 

If the COP/Manager agrees that an overpayment exists, the 

file is transferred to the Chief of Policies, Regulations, 

and Procedures Unit (PRPU), where it is assigned to a 

Policy Analyst (PA). 

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6. Compensation Paid After Claimant’s Death. No overpayment 

is declared when compensation is paid by EFT for direct deposit 

to the decedent's bank account. 

 a. Standard Form 1184. When the NO discovers that 

compensation has been paid after the death of the claimant, 

and the payment is not returned, the Fiscal Officer 

immediately notifies the Department of the Treasury of the 

erroneous payment by completing the electronic Standard 

Form 1184 (Unavailable Check Cancellation), available at 

http://contacts.gsa.gov/webforms.nsf/0/A7422A589D29E2E18525

70BC004ADC27/$file/sf1184_e.pdf, indicating the claimant's 

name and date of death in the appropriate boxes on the 

form. 

b. Time Limitations. The Department of the Treasury has 

a twelve-month time limit from the date of the EFT to 

initiate recovery of the improper payment. Therefore, the 

PA acts promptly upon learning that a payment was issued 

after the date of the claimant's death. Once the Department 

of the Treasury has been advised of the erroneous payment, 

the PA monitors the case for receipt of the payments. 

c. Recoupment. The Department of the Treasury recoups 

the money from the bank which received the EFT and restores 

the funds to DEEOIC. If for any reason the Department of 

the Treasury cannot recoup the erroneous payment, DEEOIC 

has no redress against the bank and the PA simply drafts a 

memorandum to the case file concerning the matter. 

7. Review and Initial Notification. The PA reviews the 

overpayment memorandum and all available evidence to verify the 

existence of an overpayment, then calculates the exact amount of 

the overpayment. The PA creates and maintains an accounts 

receivable log in a spreadsheet to be stored on the shared drive 

to record overpayments and their disposition over time. The PA 

tracks overpayments separately by district office. 

Once the overpayment is established, the PA determines whether 

the claimant bears any fault in the creation of the overpayment. 

a. Determination of Fault. The PA’s determination of 

fault depends on the circumstances surrounding the 

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7. Review and Initial Notification. (Continued) 

b. overpayment. The claimant must show good faith and 

exercise a high degree of care in reporting events which 

may affect entitlement to or the amount of benefits. Degree 

of care may vary with the complexity of circumstances and a 

claimant’s capacity to realize an overpayment has occurred. 

While this is not an exhaustive list, the following can be 

construed as fault in creating an overpayment: 

(1) Claimant made an incorrect statement as to a 

material fact he or she knew or should have known to 

be incorrect. 

(2) Claimant failed to provide information he or she 

knew or should have known to be material in nature. 

(3) Claimant accepted payment that he or she knew or 

should have known to be incorrect. 

c. Initial Notification. After making a determination of 

fault, the PA generates a letter bearing the Unit Chief’s 

(UC) signature informing the claimant that an overpayment 

exists. Initial notification is required before DEEOIC can 

take any final action to recover an overpayment or adjust 

benefits. 

Exhibit 1 is a sample initial overpayment notification 

letter used when the claimant is without fault. Exhibit 2 

is a sample initial overpayment notification letter used 

when the claimant is with fault. [However, in situations 

warranting administrative write-off (see paragraph 7c 

below), no overpayment notification is sent to the 

claimant.] The notification letter serves to: 

(1) Notify the claimant that an overpayment exists 

and the exact amount of the overpayment. 

(2) Provide the result of the preliminary finding of 

fault. 

(3) Advise the claimant of his or her rights. The 

claimant has 30 days following the date of the 

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7. Review and Initial Notification. (Continued) 

overpayment notification letter to invoke the rights 

to: 

(a) Inspect and copy DEEOIC records relating to 

the overpayment. 

(b) Present written evidence challenging 

existence or amount of the overpayment. 

(c) Request a telephone conference. 

(d) Challenge any finding of fault. 

(e) Request waiver of recovery of the 

overpayment. 

The filing date of the claimant’s challenge to the 

overpayment is determined by the postmark date, the 

date the request is received in the office, or the 

Resource Center, whichever is the earliest 

determinable date.

c. Administrative Write-Off. If the amount of the 

overpayment is equal to or less than $2,500, the PA 

recommends administrative write-off, regardless of the 

claimant’s fault, since the cost of recovery action will 

exceed the expected recovery amount. The PA prepares a 

brief memorandum to the UC describing the reasons for 

recommending termination of collection actions. 

Once the UC approves an administrative write-off, the PA 

creates an accounts receivable record of the overpayment in 

the accounts receivable spreadsheet. The overpayment is 

then cancelled without giving any notice of the overpayment 

to the overpaid party, and no final decision is issued. 

Exhibit 3 is a sample memorandum to file for this process. 

8. Telephone Conferences. When requested by the claimant, the 

PA holds a telephone conference within 30 days of the date of 

the overpayment notification letter. The PA also holds 

telephone conferences in cases where the financial data in the 

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8. Telephone Conferences. (Continued) 

file is not clear or adequate to make a decision about waiver or 

repayment. 

 

a. Pre-conference Call. The PA holds a pre-conference 

call to give the claimant a clear picture of the purpose 

and process of the conference and the obligations of all 

parties, and to schedule a time for the call. The PA: 

(1) Explains the issues that will be addressed during 

the conference call (i.e., income, expenses, assets, 

transfer of assets, and liabilities). If a 

preliminary finding of "with fault" was issued, the PA 

explains how the decision was made and its 

implications, and invites the claimant to provide any 

information that could affect the preliminary 

determination; 

(2) Describes the criteria used to make key decisions 

in the case (i.e., with fault finding, criteria for 

waiver, interest charges); 

(3) Describes the evidence the claimant needs to 

collect in preparation for the conference call; 

(4) Gives the claimant a chance to ask questions; 

(5) Determines the best time for the conference; and 

(6) Prepares the pre-conference checklist (Exhibit 

4), which verifies that the conference agenda items 

were discussed. 

b. During the Conference Call. The PA: 

 (1) Identifies him- or herself; 

 (2) References the pre-conference call; 

 (3) States the purpose of the call; 

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8. Telephone Conferences. (Continued) 

(4) Advises the claimant that he or she will be 

taking notes and for that reason there will be 

periodic pauses while he or she is writing; 

 (5) Describes the specific focus of the call; 

(6) Obtains the claimant’s acknowledgement that he or 

she understands what the conference issues are and 

what the conference is about; 

(7) Listens carefully to what is being said; 

(8) Probes responses that are too general or not 

credible, or which conflict with other statements 

given or the evidence of file; 

(9) Takes notes complete enough to capture the 

necessary information; and 

(10) Confirms the accuracy of the statements recorded 

by reading them back to the participant(s) for 

confirmation. 

 c. After the Conference. The PA: 

(1) Prepares a neutral Memorandum of Conference, 

without findings, describing what transpired during 

the conference. (See Exhibit 5 for a sample 

Memorandum of Conference.) The language of the 

memorandum must be clear and non-technical. A sound 

Memorandum of Conference should: 

(a) Identify and describe the issues that were 

discussed during the conference; 

(b) Identify the PA who conducted the conference 

and who participated in the conference; 

(c) Describe the position of DEEOIC and the 

claimant coming into the conference; 

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8. Telephone Conferences. (Continued) 

(d) Describe the explanation provided in the 

conference that is relevant to the issue; 

(e) Describe what was said in the conference 

that is relevant to the issue; 

(f) Describe the method used to confirm the 

accuracy of the information collected in the 

conference that is recorded in the Memorandum of 

Conference; and 

(g) Describe any agreements reached in the 

conference. 

(2) Sends the Memorandum of Conference to the 

conference participant(s) for review and comments. 

Exhibit 6 is a sample letter to the claimant. Fifteen 

days from the date of the conversation, should be 

allowed for comments. After receipt of any comments, 

the PA makes findings on the issues for resolution and 

documents these findings in the final letter decision. 

9. Burden of Proof. DEEOIC has the right to require that the 

overpaid claimant submit whatever financial information the PA 

deems necessary to determine whether to waive recovery of an 

overpayment. Form OWCP-20 financial questionnaire (Exhibit 7) 

is designed to obtain financial information. Extensive 

documentation of assets and expenses in support of the 

statements made on the OWCP-20 are required. The burden rests 

solely on the overpaid claimant to establish the grounds for a 

waiver. 

10. Waiver. DEEOIC may waive recovery of all or part of an 

overpayment. (See paragraph 10(b)(2)(b)(Example 2) for further 

explanation of a partial waiver.) A determination to waive 

recovery of an overpayment is based on the PA’s review of any 

documentation or argument submitted by the claimant within 30 

days after the initial notification letter is issued, evidence 

obtained during the telephone conference, or evidence received 

within a timely period after the claimant’s receipt of the 

Memorandum of Conference. 

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10. Waiver. (Continued) 

The burden of proof rests with the claimant to prove the 

conditions necessary to grant a waiver. DEEOIC requires the 

claimant to submit information specified on Form OWCP-20 and 

supporting documentation. If this information is not submitted 

within 30 days of the request, waiver will be denied until such 

time as the requestor documentation is furnished. Where it is 

determined that the overpaid claimant is not at fault in the 

creation of the overpayment, repayment will still be sought 

unless adjustment or recovery either would defeat the purpose of 

the Act or would be against equity and good conscience. 

 

 a. Recovery Would Defeat the Purpose of the EEOICPA. 

Where it is found that recovery will defeat the purpose of 

the EEOICPA, no recovery will be sought. To defeat the 

purpose of the EEOICPA, it must be found that the claimant 

requires substantially all current income to meet current 

ordinary and necessary living expenses and that the 

claimant’s assets do not exceed a specified amount as 

determined by DEEOIC from data furnished by the Bureau of 

Labor Statistics (BLS). 

When a claimant exceeds the limit for either disposable 

current income or assets, a basis exists for establishing a 

reasonable repayment schedule over a reasonable, specified 

period of time. It is the claimant’s burden to show 

otherwise by submitting evidence that recovery of the 

overpayment would cause hardship of a nature sufficient to 

justify waiver. 

(1) The PA determines the claimant’s income based 

upon documents submitted. An individual's total 

income includes any funds which may reasonably be 

considered available for his or her use, regardless of 

the source. A spouse's income will not be considered 

available to the claimant unless the spouse was living 

in the household both at the time the overpayment was 

incurred and at the time waiver is considered. Income 

to be considered includes, but is not limited to: 

(a) Government benefits. 

(b) Wages and self-employment income. 

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10. Waiver. (Continued) 

 (c) Regular payments (rent or pension). 

(d) Investment income and alimony or child 

support payments. 

(2) The PA reviews claimed ordinary living expenses. 

It is the claimant’s burden to show that such expenses 

are reasonable and necessary. 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. The following can be considered as 

ordinary and necessary living expenses: 

(a) Food, clothing, household and personal 

hygiene supplies, rent, mortgage payments, 

property taxes, utilities (e.g., electricity, 

gas, fuel, telephone, water), insurance (e.g., 

vehicle—one or two allowable, life, accident, and 

health), expenses for one or two vehicles (e.g., 

loan payments with the date each will be paid 

off, gas, oil, maintenance), transportation 

expenses not included under vehicle expenses, and 

creditor payments (e.g., credit card debt or 

other debt made in monthly installments). 

(b) Medical, hospitalization and similar expenses 

not reimbursed by insurance or other sources. 

(c) Church and charitable contributions made on a 

regular basis. This does not include large onetime gifts made after receipt of the preliminary 

notice of the overpayment. 

(d) Miscellaneous expenses (e.g., haircuts, 

newspapers) not to exceed $50 per month. 

A finding that a type of expense is ordinary and 

necessary does not mean that the amount is ordinary 

and necessary. The burden is on the claimant to show 

that the expenses are reasonable and needed for a 

legitimate purpose. 

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10. Waiver. (Continued) 

If the PA determines that the amount of certain 

expenses is not ordinary and necessary, particularly 

regarding significant expenses for food, clothing, and 

vehicles, the PA must state in writing the reasons for 

the finding. The finding must be supported by 

rationale, which may include reference to recognized 

research data (such as current statistics from BLS) 

that show that the claimant’s expenses exceed the 

average or range of expenses for the general 

population relevant to the claimant’s circumstances. 

The PA evaluates only the minimum periodic payment as 

determined by the creditor. The minimum amount is 

verified by copies of the claimant’s monthly 

billing(s) for consumer debt. 

(3) An individual’s assets should not exceed the 

resource base of $5,500 for an individual or $9,200 

for an individual with a spouse or one dependent, plus 

$1,100 for each additional dependent, based on 

information from BLS. A spouse's assets will not be 

considered available to the claimant unless the spouse 

was living in the household both at the time the 

overpayment was incurred and at the time waiver is 

considered. 

 

(a) Liquid assets may include (but are not 

limited to) cash, the value of stocks, bonds, 

savings accounts, mutual funds, and certificates 

of deposit. 

(b) Non-liquid assets may include (but are not 

limited to) the fair market value of an owner’s 

equity in property such as a camper, boat, second 

home and furnishing/supplies, vehicle(s) (i.e., 

any vehicles above the two allowed per immediate 

family), and jewelry. 

Assets do not include the value of household 

furniture (primary residence), clothing, one or 

two vehicles, a home which the person maintains 

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10. Waiver. (Continued) 

producing property, if the income from such 

property has been included in income. 

b. Recovery Would Violate Equity and Good Conscience. If 

the claimant is not entitled to waiver under the “defeat 

the purpose of the EEOICPA” clause, the PA considers the 

“against equity and good conscience” clause. Even if the 

claimant does not raise the “equity and good conscience” 

reason in the claim for waiver, the PA addresses this issue 

in the waiver memorandum. 

The PA reviews all pertinent financial information to 

determine if recovery of the overpayment will violate the 

concept of “equity and good conscience.” This clause is 

divided into two parts, financial hardship and 

relinquishing a valuable right. To demonstrate such a 

violation it must be established that either: 

(1) Recovery will cause the claimant to experience 

severe financial hardship. The PA evaluates financial 

records and compares income with expenses similar to 

the review conducted under paragraph 10(a) to 

determine if repayment will cause severe financial 

hardship. 

Recovery will be found to be “against equity and good 

conscience” when an individual who was not entitled to 

benefits would experience severe financial hardship in 

attempting to repay the debt. The criteria to be 

applied in making this determination are the same as 

those stated above in paragraph 10(a). 

(2) The claimant has relinquished a valuable right or 

changed position for the worse. The PA must review 

pertinent financial and other evidence to determine 

either of the following: 

(a) Based chiefly or solely on notification of 

payment, the claimant relinquished a verifiably 

valuable right and such right cannot be regained 

(e.g., left a job that cannot be regained, sold a 

business, retired, or other major life-changing 

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10. Waiver. (Continued) 

financial decisions). When a claimant gives up a 

valuable right, his or her current ability to 

repay is not taken into consideration, as the 

forfeiture of the right is in itself the grounds 

for waiver. 

Example: After being advised of entitlement to 

compensation, the claimant resigned his job and 

withdrew his contributions to his retirement 

fund, under the assumption that he was entitled 

to a lump sum award of $150,000. Three years 

later it was discovered that his award was 

erroneous. The claimant had lost his retention 

rights, was unable to get his old job back, and 

could not secure other employment. Recovery of 

any of the overpayment would be “against equity 

and good conscience” in this situation because 

the individual gave up a valuable right. 

(b) A decision was made resulting in a loss that 

verifiably worsened the claimant’s condition, and 

such decision would not have been made but for 

the receipt of benefits. The claimant must show 

that if required to repay the overpayment, he or 

she would be in a worse position after repayment 

than would have been the case if the benefits had 

never been received in the first place. 

Converting the overpayment into a different form, 

such as food, consumer goods, real estate, etc., 

from which the claimant derived some benefit, is 

not considered a loss. Converting the overpayment 

into a different form for the benefit of another 

person, such as a child or relative, may be 

considered as a loss if the claimant retains no 

ownership interest in the proceeds and has no 

ability to reclaim the proceeds. 

Example 1: A claimant received a lump sum award. 

Later the entire award is declared to be an 

overpayment. The claimant contends that he has 

changed his position for the worse, as he used 

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10. Waiver. (Continued) 

the entire award to make a down payment on a 

larger home. The claimant has not met his burden 

in showing that he changed his position for the 

worse, since he has not established that he 

suffered any loss. He has simply converted the 

money into a different form. Conversion of a 

liquid asset into real or tangible property does 

not constitute a loss. 

Example 2: A claimant is notified that he is 

entitled to $30,000. Upon receipt of the money, 

the claimant signs a lease to rent a larger 

apartment and pays a $2,000 security deposit. He 

places the remainder of the award in a savings 

account. Before the claimant moves in, he is 

notified that the entire award is an overpayment. 

As a result, the claimant fails to make the first 

month’s rent, forfeits the security deposit, and 

does not move to the new apartment. 

Since the claimant would not have entered into 

the lease to rent the apartment but for his 

receipt of benefits, it would be inequitable to 

recoup the entire $30,000 overpayment. The 

claimant clearly suffered a $2,000 loss and 

repayment would put him in a worse position than 

if he had not received the initial award. 

Given that the claimant suffered a $2,000 loss, 

and not a $30,000 loss, a partial waiver is a 

legitimate action is this case. The claimant 

does not have the money to rent a larger 

apartment and had no intention of doing so until 

he received his award. Thus, the claimant relied 

on DEEOIC’s action and it would be inequitable to 

recover that part of the overpayment to the 

extent of his reliance. It would not be 

inequitable to recover that part of the 

overpayment that the claimant deposited in the 

bank. However, if the claimant were faced with 

additional expenditures arising out of the lease, 

those expenses would also be deducted from the 

EEOICPA Tr. No. 10-01 16 

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10. Waiver. (Continued) 

overpayment. 

Example 3: Suppose a claimant receives a 

$150,000 award and loaned a relative $25,000 to 

buy a house before he received notice of an 

overpayment. Since the claimant has not suffered 

a loss, equity and good conscience do not require 

waiving of this $25,000. 

However, it would be inequitable to tell the 

claimant to recall the loan at once (further, the 

terms may not allow such action), and it would 

not be inequitable to count the $25,000 as 

currently available assets. Thus, the interest 

the claimant receives on the loan as well as any 

sum he may receive on the principal should be 

considered income when determining the claimant’s 

ability to repay the overpayment. 

11. Overpayment Decisions. After weighing all the evidence and 

considering all the circumstances surrounding the overpayment, 

the PA drafts an overpayment decision. The decision outlines 

his or her findings and whether recovery is to be pursued. The 

UC reviews, signs, and issues the overpayment decision to the 

claimant. Authority to issue overpayment decisions rests solely 

with the PPRU. As noted above, overpayment decisions are not 

issued where an overpayment is administratively terminated. 

a. First Demand Letter. Where the overpayment decision 

holds that a collectible overpayment (debt) exists, the 

overpayment decision serves as the first demand letter. In 

the overpayment decision, the PA outlines the facts 

surrounding the overpayment, provides a rationale as to why 

the overpayment is recoverable, and informs the claimant of 

the exact amount owed and the collection strategy to be 

used (i.e., monthly payment, collection from future 

entitlement). 

The decision advises the claimant that referral to the 

Department of the Treasury or the Department of Justice is 

possible and includes the due process requirements outlined 

by the Department of the Treasury. The decision advises 

EEOICPA Tr. No. 10-01 17 

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11. Overpayment Decisions. (Continued) 

the claimant that he or she has 30 days from the date of 

issuance of the overpayment decision to resolve the 

recoverable debt. Exhibits 8, 9, and 10 are samples of 

final letter decisions. 

b. Issuing Waiver. If the PA determines that a waiver is 

warranted, the overpayment decision definitively waives the 

full amount of the overpayment in question. No further 

action is required on the part of the overpaid claimant or 

the PA, other than updating the spreadsheet. (See Exhibit 

8, option 1.) 

 

(1) Where it is determined that the claimant is at 

fault in the creation of the overpayment, no waiver 

may be granted and recovery will proceed as outlined 

in this chapter. 

 

EEOICPA Tr. No. 10-01 18 

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SAMPLE INITIAL OVERPAYMENT NOTIFICATION LETTER (WITHOUT FAULT) 

Dear [Claimant Name]: 

The Division of Energy Employees Occupational Illness 

Compensation (DEEOIC) has made a preliminary finding that you 

have been overpaid benefits in the amount of [$]. The 

overpayment occurred because: 

[Describe reason] 

DEEOIC has also made a preliminary finding that you are without 

fault in creating the overpayment. If you disagree with the fact 

or the amount of the overpayment, you have a right to submit new 

evidence. 

When a claimant is without fault in creating an overpayment, the 

law states that OWCP may not recover the overpayment if the 

recovery would defeat the purpose of the Energy Employees 

Occupational Illness Compensation Program Act (EEOICPA), or the 

recovery would be against equity and good conscience. 

To defeat the purpose of the EEOICPA, it must be found that the 

claimant requires substantially all current income to meet 

current ordinary and necessary living expenses and the claimant 

assets do not exceed a specified amount as determined by DEEOIC 

from data furnished by the Bureau of Labor Statistics. 

It would be against equity and good conscience to recover an 

overpayment when: 

1. A claimant would suffer severe financial hardship in 

trying to repay the debt; or 

2. A claimant, acting on incorrect information from DEEOIC, 

gives up a verifiably valuable right or changes his or 

her position for the worse, such as leaving a job which 

he or she cannot regain; or 

3. A claimant, acting on incorrect information from DEEOIC, 

spends or commits funds in ways which he or she otherwise 

would not have done, and suffers a financial loss as a 

result. 

EEOICPA Tr. No. 10-01 Exhibit 1 

October 2009 

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ACTIONS YOU MAY TAKE 

If you believe that you should receive a waiver instead of 

repaying the overpayment, you may take any one of the following 

actions within 30 days of the date of this letter: 

1. Request a telephone conference with the National Office 

of DEEOIC; or 

2. Request that the National Office issue a final decision 

based on the written evidence of record. 

The DEEOIC staff will address the following issues during the 

telephone conference or in writing: 

a. Whether or not an overpayment actually occurred and 

the amount; 

b. Whether or not DEEOIC should collect the 

overpayment. 

INFORMATION NEEDED TO WAIVE RECOVERY OF THE OVERPAYMENT 

If you are seeking a waiver of recovery (whether you choose a 

phone conference or not) you should send the following to OWCP: 

1. A detailed explanation of your reasons for seeking 

waiver; 

2. A completed Form OWCP-20 (copy enclosed); and 

3. Supporting documents, to include copies of income tax 

returns, bank account statements, bills and canceled 

checks, pay slips, and other records to support income and 

expenses shown on Form OWCP-20. 

This information will help us decide whether or not to waive 

recovery of the overpayment. If waiver is not granted, the 

information will be used to decide how to collect the 

overpayment. We will not try to collect the overpayment until we 

reach a final decision on your request for waiver. 

Also please note that under 20 CFR 30.518, we will deny waiver 

if you fail to furnish the information requested on the enclosed 

EEOICPA Tr. No. 10-01 Exhibit 1 

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Form OWCP-20 (or other information we need to address a request 

for waiver) within 30 days. We will not consider any further 

request for waiver until the requested information is furnished. 

CONTACTING DEEOIC 

If you wish to have a telephone conference, please so state on 

the attached form and send it to the National Office within 30 

days. You must also submit a detailed explanation of your 

reasons for seeking waiver, a completed OWCP-20, and supporting 

documents along with your request. We will then contact you to 

arrange a convenient time for the conference, allowing enough 

time for you to prepare. If we do not receive a reply from you 

within 30 days of the date of this letter, we will issue a final 

decision based on the information currently on file. 

If you wish to have a decision made based on the written 

evidence only, please so state on the attached form and send it 

to the National Office within 30 days. (We may still contact you 

to arrange a telephone conference if the written evidence is not 

sufficient to make a decision.) 

A request for either a conference or a decision on the written 

evidence, along with any supporting evidence or arguments, 

should be sent to the following address: 

UNITED STATES DEPARTMENT OF LABOR 

EMPLOYMENT STANDARDS ADMINISTRATION 

OFFICE OF WORKERS' COMPENSATION PROGRAMS 

DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION 

200 CONSTITUTION AVENUE, N.W., ROOM C-3324 

WASHINGTON, D.C. 20210 

If you agree with the findings of this decision, and you wish to 

make payment at this time, please send a check to the address 

shown below. Make the check payable to the U.S. Department of 

Labor, OWCP, and include your EEOICPA file number on the check. 

US DEPARTMENT OF LABOR 

OWCP/EEOICPA 

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943 

EEOICPA Tr. No. 10-01 Exhibit 1 

October 2009 

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If we do not receive a reply from you within 30 days of the date 

of this letter, a final decision will be issued on the basis of 

the information currently of file. 

Sincerely, 

Unit Chief for Policies, 

Regulations and Procedures 

DEEOIC 

Enclosure: Form OWCP-20 

EEOICPA Tr. No. 10-01 Exhibit 1 

October 2009 

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EEOICPA CLAIM NO: 

EMPLOYEE: 

____ I request a telephone conference with the National Office 

on the issues of fault and possible waiver of recovery of this 

overpayment. My supporting financial documents are enclosed. 

 ____ I request that the National Office make a decision based 

on the written evidence on the issues of fault and possible 

waiver of recovery of this overpayment. My supporting financial 

documents are enclosed. 

Signed:_________________________________ Date: _________________ 

EEOICPA Tr. No. 10-01 Exhibit 1 

October 2009 

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SAMPLE INITIAL OVERPAYMENT NOTIFICATION LETTER (WITH FAULT)

Dear [Claimant Name]: 

The Division of Energy Employees Occupational Illness Compensation 

(DEEOIC) has made a preliminary finding that you have been overpaid 

benefits in the amount of [$]. The overpayment occurred because:

[Describe reason]

DEEOIC has also made a preliminary finding that you were at fault in 

this matter for the following reason(s):

[Describe reason]

This letter is not a final decision. You have the right to submit 

evidence or arguments which you believe will affect these preliminary 

findings if:

1. You disagree that the overpayment occurred;

2. You disagree with the amount of the overpayment;

3. You believe that the overpayment occurred through no fault of 

your own; or

4. You believe that the overpayment occurred through no fault of 

your own and that DEEOIC should waive recovery of the 

overpayment.

ACTIONS YOU MAY TAKE

You may take any one of the following actions within 30 days of the 

date of this letter:

1. Request a telephone conference with the National Office; or

2. Request that the National Office issue a final decision based 

on the written evidence of record.

The following issues should be addressed during the telephone 

conference or in writing:

a. Whether or not an overpayment actually occurred and the 

amount;

b. Whether or not DEEOIC should collect the overpayment.

INFORMATION NEEDED TO WAIVE RECOVERY OF THE OVERPAYMENT

EEOICPA Tr. No. 10-01 Exhibit 2 

October 2009 

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When the claimant is without fault in creating an overpayment, the law 

states that DEEOIC may not recover the overpayment if the recovery 

would defeat the purpose of the Energy Employees Occupational Illness 

Compensation Program Act (EEOICPA), or the recovery would be against 

equity and good conscience.

To defeat the purpose of the EEOICPA, it must be found that the 

recipient requires substantially all current income to meet current 

ordinary and necessary living expenses and the recipient assets do not 

exceed a specified amount as determined by OWCP from data furnished by 

the Bureau of Labor Statistics.

It would be against equity and good conscience to recover an 

overpayment when:

1. A claimant would suffer severe financial hardship in trying to 

repay the debt; 

2. A claimant, acting on incorrect information from DEEOIC, gives 

up a valuable right, such as leaving a job which he or she cannot 

regain; or

3. A claimant, acting on incorrect information from DEEOIC, 

spends or commits funds in ways which he or she otherwise would 

not have done, and suffers a financial loss as a result.

DEEOIC may overturn the preliminary finding of fault based on new 

evidence or arguments you submit. This action may make it possible for 

DEEOIC to waive recovery of the repayment. Therefore, you should 

complete the enclosed Form OWCP-20 and submit it to this office.

You should attach supporting documents to Form OWCP-20, including 

copies of income tax returns, bank account statements, bills and 

canceled checks, pay slips, and any other records which support the 

income and expenses listed.

If the preliminary finding is overturned, this information will help 

us determine whether or not to waive recovery of the overpayment. If 

the preliminary finding is upheld or waiver is not granted, the 

information will be used to decide how to collect the overpayment.

Please note that if we make a final decision that you were at fault in 

creating an overpayment, we cannot waive recovery of the overpayment. 

However, we will not try to collect the overpayment until we reach a 

final decision on your request for waiver.

Also please note that under 20 CFR 30.518, we will deny waiver if you 

fail to furnish the information requested on the enclosed Form OWCP-20 

(or other information we need to address a request for waiver) within 

EEOICPA Tr. No. 10-01 Exhibit 2 

October 2009 

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30 days. We will not consider any further request for waiver until the 

requested information is furnished.

CONTACTING DEEOIC

If you wish to have a telephone conference, please so state on the 

attached form and send it to this office within 30 days. We will then 

contact you to arrange a convenient time for the conference, allowing 

enough time for you to prepare. If we do not receive a reply from you 

within 30 days of the date of this letter, we will issue a final 

decision based on the information currently on file.

If you wish to have a decision made based on the written evidence 

only, please so state on the attached form and send it to this office 

within 30 days. (We may still contact you to arrange a telephone 

conference if the written evidence is not complete enough to make a 

decision.)

A request for either a conference or a decision on the written 

evidence, along with any supporting evidence or arguments, should be 

sent to the following address:

UNITED STATES DEPARTMENT OF LABOR

EMPLOYMENT STANDARDS ADMINISTRATION

OFFICE OF WORKERS’ COMPENSATION PROGRAMS

DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION

200 CONSTITUTION AVENUE, N.W., ROOM C-3324

WASHINGTON, D.C. 20210

EEOICPA Tr. No. 10-01 Exhibit 2 

October 2009 

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________________________________________________________________ 

If you do not disagree with findings of this decision, and you wish to 

make payment at this time, please send a check to the address shown 

below. Make the check payable to the U.S. Department of Labor, OWCP, 

and include your EEOICPA file number on the check.

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943

CHARLOTTE, N.C. 28272-0943

If we do not receive a reply from you within 30 days of the date of 

this letter, we will issue a final decision based on the information 

now of file.

Sincerely,

Unit Chief for Policies, 

Regulations and Procedures

DEEOIC

Enclosure: Form OWCP-20

EEOICPA Tr. No. 10-01 Exhibit 2 

October 2009 

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EEOICPA CLAIM NO: 

EMPLOYEE: 

____ I request a telephone conference with the National Office 

on the issues of fault and possible waiver of recovery of this 

overpayment. My supporting financial documents are enclosed. 

____ I request that the National Office make a decision based on 

the written evidence on the issues of fault and possible waiver 

of recovery of this overpayment. My supporting financial 

documents are enclosed. 

Signed:_________________________________ Date: ________________ 

EEOICPA Tr. No. 10-01 Exhibit 2 

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SAMPLE MEMORANDUM TO FILE FOR ADMINISTRATIVE WRITE-OFF OF DEBT 

LESS THAN $2500 

MEMORANDUM TO THE UNIT CHIEF OF POLICIES, REGULATIONS, & 

PROCEDURES 

IN THE CLAIM OF 

DEEOIC FILE # 123456789 

Date: 

SUBJECT: ADMINISTRATIVE WRITE-OFF OF DEBT LESS THAN $2,500 

The Federal Claims Collection Standards (FCCS), 4 CFR Section 

103.4, state that a claim may be compromised if the cost of 

collection would not justify enforcing the collection of the 

full claim. Section 104.3I states, that collection action may be 

terminated when it is likely that the cost of further collection 

action will exceed the amount likely to be recovered. In a 

decision issued on September 29, 1986, the Comptroller General 

elaborated on 4 CFR by concluding that these standards extend to 

the collection of debts from federal employees, and that 

agencies may establish “minimum debt amounts” and realistic 

“points of diminishing returns” in their debt collection 

activities. The term “minimum debt amounts” refers to the 

designation of categorical thresholds beneath which collection 

action need not be initiated because the amount of the debts in 

that class are so small in relation to the costs of attempting 

collection efforts. “Diminishing returns” refers to an agency’s 

designation of thresholds beneath which the agency will 

discontinue collection efforts already initiated when it appears 

that the costs of additional collection actions would exceed the 

amounts likely to be recovered. The Comptroller General 

instructed further that agencies may, on a case-by-case basis, 

take the anticipated costs of required administrative hearings 

into consideration when determining whether to compromise or 

terminate collection action. 

The National Office has considered the case and has noted that 

the following applied: [Describe how debt occurred]

RECOMMENDATION: Based upon the above, I find that the 

following action is appropriate: [Explain why it’s feasible to 

terminate debt collection activities] 

Policy Analyst, DEEOIC

EEOICPA Tr. No. 10-01 Exhibit 3 

October 2009 

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SAMPLE PRE-CONFERENCE CALL CHECKLIST 

Name of person to be called: ___________________________________ 

Telephone Number: ______________________ 

 (Area code, number) 

Person to be called is: _____Claimant ___Attorney/Representative 

Agenda items: Did this? Comments 

1. Explain purpose of call ____ _________ 

2. Explain nature and purpose of conference ____ _________ 

3. Give typical conference questions ____ _________ 

4. Indicate conference is limited to issues ____ _________ 

5. Confirm person’s understanding ____ _________ 

of conference 

6. Describe info. person will need at ____ _________ 

the conference 

7. Confirm the person’s ability to obtain info. ____ _________ 

8. Explain “with fault” finding ____ _________ 

9. Explain criteria for “waiver” ____ _________ 

10. Explain “interest” charges ____ _________ 

11. Ask if person has questions ____ _________ 

12. Schedule conference: 

 Date_____________ Time________ 

 Private, quiet, on-the-job room needed? ___ Yes ___ No 

 Prior arrangements to be made by: ___ PA ___ Other 

13. Other items (specify) 

________________________________________________________________

________________________________________________________________

____________________________ 

14. Pre-conference call made by ________________Date____________ 

EEOICPA Tr. No. 10-01 Exhibit 4 

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SAMPLE MEMORANDUM OF CONFERENCE 

NAME OF CLAIMANT: 

FILE NUMBER: 

DATE OF CONFERENCE: 

PARTICIPANTS: Name of PA and Claimant or Representative 

ISSUE (S): The questions for determinations are: 1) Whether the 

claimant is “without fault” in the creation of the overpayment 

in the amount of $50,000; 2) Whether repayment of the 

overpayment is to be made or waived; 3) If repaid, at what rate. 

BACKGROUND: 

What was claimed by whom? 

What award was made? 

How it was determined that the previous award was an error? 

Discussion of FAB’s Final Decisions. 

A preliminary overpayment decision was issued on {Insert date} 

indicating that the overpayment amount was $50,000. In response 

to the preliminary decision, the claimant requested a telephone 

conference. 

DISCUSSION: I contacted Mr. Claimant on {Insert date} to 

discuss the overpayment. A pre-conference call was held at this 

time. Mr. Claimant was asked if he understood how the 

overpayment occurred and how it was calculated. He was also 

asked if he understood that he had been found “with fault” in 

the matter of the overpayment and a waiver could not be 

considered. We discussed the three conditions under which 

repayment may be waived. I explained to be eligible for a 

waiver of recovery of the overpayment, he had to prove that he 

was “without fault” in the creation of the overpayment, then 

through extensive financial documentation prove that recovery of 

the overpayment would cause a financial hardship. I explained 

to Mr. Claimant that during the actual conference, he would also 

have to provide the financial information that was requested in 

the OWCP-20 Overpayment Questionnaire. Following the conference 

call, I would prepare a memorandum summarizing the discussion 

EEOICPA Tr. No. 10-01 Exhibit 5 

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and a copy would be forwarded to him for comments. He was also 

told that documentation to support the information provided 

during the conference must be submitted to the National Office 

to be considered in conjunction with the information provided 

during the conference. We scheduled the telephone conference 

for {Insert date} from {Insert times}. 

The conference was held on {Insert date} as scheduled. Mr. 

Claimant was again advised of the criteria for determining fault 

and waiver, proceedings of the conference, and the confirmation 

process. He was questioned as to whether he understood the 

conference process and if he was ready to proceed. He responded 

affirmatively. 

Mr. Claimant feels that he is “without fault” in the creation of 

the overpayment, because he thought his father only had three 

children. He was not aware of the fourth child that just 

surfaced {Continue explanation of claimant}. 

I told Mr. Claimant that if the fault finding was changed to 

“without fault” then we could consider waiving the overpayment, 

but he must prove by his financial documentation that he was not 

able to repay the overpayment. Mr. Claimant stated that he does 

not have any of the money left from the overpaid amount. He 

further advised that he has not transferred by loan, gift, or 

sale any property or cash since he was notified of the 

overpayment. Mr. Claimant reports his salary with the XYZ 

Company as his only source of income. He currently earns $2,143 

every 2 weeks. His household consists of himself, his wife, and 

one minor child. His wife earns $1,000 every 2 weeks and 

receives no other income. Mr. Claimant stated that he used to 

have rental property, but had loans on all of them and they 

needed repairs. He had to file bankruptcy and give up the 

rental property. Mr. Claimant reports having two household 

vehicles. A 2003 Pontiac Grand AM that belongs to his wife and 

his 2003 Ford F-150 Truck. He reports having no other assets. 

The claimant reported the following expenses: 

Mortgage $1,143.00 per month

Food $500.00 per month 

EEOICPA Tr. No. 10-01 Exhibit 5 

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Clothing $350.00 per month 

Utilities:

Electric and gas (combined billing) $240.00 per month 

Telephone $249.00 per month 

Water $110.00 every 3 months 

Home Maintenance 

Check #5877 December 21, 2006 broken pipes $238.96 

Check #5772 February 18, 2006 $24.10 

Check #5786 March 31, 2006 $193.50 

Check #5819 September 27, 2006 lawn motor battery $35.02 

 $491.58 

Medical

He and his daughter are covered under his wife’s medical and 

dental plans. They only pay the $10.00 co-payment when they 

have to go to the doctor. The co-payment for their dental 

varies depending on the type of dental work being done. 

Expenses for both vehicles:

Car Note for 2003 Grand AM $435.00 per month 

Car Note for 2003 Ford Truck $355.00 per month 

Insurance on 2003 Grand AM $900.00 per year 

Insurance on 2003 Ford Truck $1,000.00 per year 

Gas for Mr. Claimant to go back & forth to work 

@ approximately 18 to 20 miles per day $20.00 per day 

Gas for spouse to go back & forth to work 

@ approximately 16 miles per day $20.00 per day 

Vehicle maintenance for the 2003 Ford Truck recently 

 $200.00 one-time charge 

Credit Cards or Loans

None (filed bankruptcy) 

I asked Mr. Claimant if he owned any valuable property, other 

than his home, family automobiles, and household furnishings. 

He responded negatively. 

I asked him about any funds that he and/or his spouse may have 

and he responded as follows: 

 1. Cash on Hand? None 

 2. Checking Account balance $100.00

EEOICPA Tr. No. 10-01 Exhibit 5 

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 3. Savings Account balance $1,000.00 

 4. Current value of any stocks and bonds None 

 5. Value of other personal property and other funds None 

I informed Mr. Claimant that if the fault finding was not 

changed to “without fault” the debt must be repaid to the 

National Office in full. If installment payments are necessary, 

2% interest will be accrued annually. If this becomes the case, 

we will use the financial information and evidence to determine 

the monthly repayment amount. Informed Mr. Claimant that since 

he did not submit the OWCP-20 and supporting documents with his 

telephone conference request, he must submit the supporting 

documents with his response to the Memorandum of Conference. 

Supporting financial documents should include copies of income 

tax returns, bank account statements, bills, canceled checks, 

pay slips, and other records to support the income and expenses 

he provided during this conference. 

 

I asked Mr. Claimant what amount, if any, he could afford to pay 

without suffering from a financial hardship. He indicated that 

he could only afford to pay $150.00 per month. 

Policy Analyst

EEOICPA Tr. No. 10-01 Exhibit 5 

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SAMPLE CONFERENCE LETTER TO CLAIMANT 

Dear [Claimant Name]: 

A copy of the Memorandum of Conference regarding your 

compensation case is attached. 

The information contained in the Memorandum was obtained during 

my conversation with you on {insert date}. 

If after reviewing the summary of our discussion you find that 

the summary does not report accurately what you said, please 

write me, specifically addressing the inaccuracies, within 

fifteen (15) days of receipt of this letter and it will become a 

permanent part of the claim record. 

Sincerely, 

Policy Analyst

EEOICPA Tr. No. 10-01 Exhibit 6 

October 2009 

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EEOICPA Tr. No. 10-01 Exhibit 7 

October 2009 

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EEOICPA Tr. No. 10-01 Exhibit 7 

October 2009 

Page 2 of 4 

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Part 3 – Fiscal Overpayment Process 

________________________________________________________________ 

EEOICPA Tr. No. 10-01 Exhibit 7 

October 2009 

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EEOICPA Tr. No. 10-01 Exhibit 7 

October 2009 

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SAMPLE OVERPAYMENT DECISION (WITH FAULT PRELIMINARY INCORRECT) 

Dear [Claimant Name]: 

This letter is in further reference to the overpayment of benefits in 

the amount of [$] that was found in your case, which occurred because:

[Describe reason]

Your case has been carefully studied and any additional evidence or 

arguments submitted have been given full consideration. It has been 

determined that the preliminary finding that you were at fault in the 

matter of the overpayment was incorrect for the following reason(s):

[Describe reason]

Option 1 In addition, I have determined that the circumstances of your 

case warrant [full or partial] waiver of recovery of the overpayment 

for the following reason(s):

[Describe reason]

Since waiver of recovery has been granted, you are absolved of any 

indebtedness resulting from the overpayment in your case.

OR

You are partially absolved of indebtedness in the amount of $____, 

resulting from the overpayment in your case. 

OR

Option 2 However, even though you have been found to be without fault, 

it has been determined that the circumstances of your case do not 

warrant [full] waiver of the overpayment. The reasons for this 

decision are:

[Describe reason]

You should forward a check in the amount of [entire amount] or you 

should send a check in the amount of [$] each month until the 

overpayment is repaid. Make the check payable to the U.S. Department 

of Labor, OWCP, and include your EEOICPA file number on the check. 

All payments to OWCP should be sent to: 

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943

CHARLOTTE, N.C. 28272-0943

Interest will begin to accrue as of the date of this letter, at the 

current rate of the U.S. Treasury note. However, interest charges 

will be waived if the debt is paid in full within 30 days. If you wish 

to repay the entire amount of the overpayment at this time, and thus 

EEOICPA Tr. No. 10-01 Exhibit 8 

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avoid payment of interest, please submit your full payment 

immediately. 

The first installment payment is due within 30 days from the date of 

this letter. At the repayment rate set above, the overpayment should 

be collected in full on or about [Insert date]. 

If we do not receive payment or some indication that you intend to 

make payment within 30 days, your overpayment will be considered a 

delinquent debt. Should this occur, administrative charges for the 

cost of sending additional demands for payment may be added to the 

debt.

DEEOIC will refer delinquent debts to the Department of the Treasury 

to recover an overpayment from the debtor’s salary or for collection 

by administrative offset from any federal payments that may be due to 

you. We will assess an additional administrative cost to help defray 

the expense of this referral. Information about the status and 

delinquency of your debt will also be subject to credit reporting. 

You have the following rights in connection with this decision:

• You may inspect and request copies of our record about this debt;

• You may contact us to enter into a mutually agreeable written 

repayment agreement; and 

• You may request a review of our determinations about the amount 

of your debt, its past-due status, and its legal enforceability. 

To exercise this right, you must state your request in writing, 

state your reason(s) for challenging our determinations, and sign 

your statement.

If you believe that any information of record concerning your debt is 

not accurate, timely, relevant, or complete, you must provide 

information or documentation to support your belief within 30 days 

from the date of this letter.

Sincerely,

Unit Chief for Policies, 

Regulations and Procedures

DEEOIC

Enclosure: 

EEOICPA Tr. No. 10-01 Exhibit 8 

October 2009 

Page 2 of 2 

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Part 3 – Fiscal Overpayment Process 

________________________________________________________________ 

SAMPLE OVERPAYMENT DECISION (WITH FAULT PRELIMINARY CORRECT)

Dear [Claimant Name]: 

This letter is in further reference to the overpayment of benefits in 

the amount of [$] that was found in your case, which occurred because:

[Describe reason]

Your case has been carefully studied and any additional evidence or 

arguments submitted have been given full consideration. I have 

determined that the preliminary finding that you were at fault in the 

matter of the overpayment was correct for the following reason(s): 

[Describe reason]

Option 1 You should forward a check in the amount of [$] . The check 

should be made payable to the U.S. Department of Labor, OWCP, and it 

should show your case file number as given above. Payment is due 

within 30 days from the date of this letter. If you are unable to 

refund the entire overpayment immediately, please contact this office 

within 30 days so that appropriate arrangements for recovery (such as 

installment payments) can be made. All payments to OWCP should be sent 

to:

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943

OR

Option 2 You should send a check in the amount of [$] each month until 

the overpayment is repaid. Make the check payable to the U.S. 

Department of Labor, OWCP, and include your EEOICPA file number on the 

check. All payments to OWCP should be sent to: 

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943

Interest will begin to accrue as of the date of this letter, at the 

current rate of the U.S. Treasury note. However, interest charges 

will be waived if the debt is paid in full within 30 days. If you wish 

to repay the entire amount of the overpayment at this time, and thus 

avoid payment of interest, please submit your full payment 

immediately. 

EEOICPA Tr. No. 10-01 Exhibit 9 

October 2009 

Page 1 of 2 

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The first installment payment is due within 30 days from the date of 

this letter. At the repayment rate set above, the overpayment should 

be collected in full on or about [Insert date].

If we do not receive payment, or some indication that you intend to 

make payment, within 30 days, your overpayment will be considered a 

delinquent debt. Should this occur, administrative charges for the 

cost of sending additional demands for payment may be added to the 

debt.

DEEOIC will refer delinquent debts to the Department of the Treasury 

to recover an overpayment from the debtor’s salary or for collection 

by administrative offset from any federal payments that may be due 

you. We will assess an additional administrative cost to help defray 

the expense of this referral. Information about the status and 

delinquency of your debt will also be subject to credit reporting. 

You have the following rights in connection with this decision:

• You may inspect and request copies of our record about this debt;

• You may contact us to enter into a mutually agreeable written 

repayment agreement; and 

• You may request a review of our determinations about the amount 

of your debt, its past-due status, and its legal enforceability. 

To exercise this right, you must state your request in writing, 

state your reason(s) for challenging our determinations, and sign 

your statement.

If you believe that any information of record concerning your debt is 

not accurate, timely, relevant, or complete, you must provide 

information or documentation to support your belief within 30 days 

from the date of this letter.

Sincerely,

Unit Chief for Policies, 

Regulations and Procedures

DEEOIC

Enclosure: 

EEOICPA Tr. No. 10-01 Exhibit 9 

October 2009 

Page 2 of 2 

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________________________________________________________________ 

SAMPLE OVERPAYMENT DECISION (WITHOUT FAULT WAIVER DENIED)

Dear [Claimant Name]: 

This letter is in further reference to the overpayment of benefits in 

the amount of [$] that was found in your case and which occurred 

because: 

[Describe reason]

After carefully studying your case and fully considering any 

additional evidence or arguments submitted, we have decided not to 

waive the overpayment. The reasons for this decision are:

[Describe reason]

Option 1 You should forward a check in the amount of [$]. The check 

should be made payable to the U.S. Department of Labor, OWCP, and it 

should show your case file number as given above. Payment is due 

within 30 days from the date of this letter. If you are unable to

refund the entire overpayment immediately, please contact this office 

within 30 days so that appropriate arrangements for recovery (such as 

installment payments) can be made. All payments to OWCP should be sent 

to:

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943

OR

Option 2 You should send a check in the amount of [$] each month until 

the overpayment is repaid. Make the check payable to the U.S. 

Department of Labor, OWCP, and include your EEOICPA file number on the

check. All payments to OWCP should be sent to: 

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943

Interest began to accrue as of the date of the final overpayment 

decision, at the rate of the U.S. Treasury note in affect on that 

date. If you wish to repay the entire amount of the overpayment at 

this time, and thus avoid payment of additional interest, please 

submit your full payment immediately.

EEOICPA Tr. No. 10-01 Exhibit 10 

October 2009 

Page 1 of 2 

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________________________________________________________________ 

The first installment payment is due within 30 days from the date of 

this letter. At the repayment rate set above, the overpayment should 

be collected in full on or about [Insert date]. 

If we do not receive payment, or some indication that you intend to 

make payment, within 30 days, your overpayment will be considered a 

delinquent debt. Should this occur, administrative charges for the 

cost of sending additional demands for payment may be added to the 

debt.

DEEOIC will refer delinquent debts to the Department of the Treasury 

to recover an overpayment from the debtor’s salary or for collection 

by administrative offset from any federal payments that may be due 

you. We will assess an additional administrative cost to help defray 

the expense of this referral. Information about the status and 

delinquency of your debt will also be subject to credit reporting. 

You have the following rights in connection with this decision:

• You may inspect and request copies of our record about this debt;

• You may contact us to enter into a mutually agreeable written 

repayment agreement; and 

• You may request a review of our determinations about the amount 

of your debt, its past-due status, and its legal enforceability. 

To exercise this right, you must state your request in writing, 

state your reason(s) for challenging our determinations, and sign 

your statement.

If you believe that any information of record concerning your debt is 

not accurate, timely, relevant, or complete, you must provide 

information or documentation to support your belief within 30 days 

from the date of this letter.

Sincerely,

Unit Chief for Policies, 

Regulations and Procedures

DEEOIC

Enclosure

EEOICPA Tr. No. 10-01 Exhibit 10 

October 2009 

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________________________________________________________________ 

TABLE OF CONTENTS 

Paragraph and Subject Page Date Trans. No. 

Chapter 3-0900 Debt Liquidation 

Table of Contents i 10/09 10-01 

 1 Purpose and Scope. . . . . . . . 1 10/09 10-01 

 2 Responsibilities . . . . . . . . 1 10/09 10-01 

 3 Recovery . . . . . . . . . . . . 2 

 4 Assessment of Charges. . . . . . 4 10/09 10-01 

 5 Waiver of Interest and Other 

 Charges. . . . . . . . . . . . 4 10/09 10-01 

 6 Compromise . . . . . . . . . . . 5 10/09 10-01 

 7 Compromise to Limit Repayment 

 Period . . . . . . . . . . . . 6 10/09 10-01 

 8 Compromise in Consideration of 

 Partial Payment. . . . . . . . 9 10/09 10-01 

 9 Collection Strategies. . . . . . 10 10/09 10-01 

 10 Recovery from Compensation 

 Entitlement. . . . . . . . . . 11 10/09 10-01 

 11 Recovery in Cases with No 

 Compensation Entitlement . . . 12 10/09 10-01 

 12 Referring Debts to Department 

 of Treasury. . . . . . . . . . 14 10/09 10-01 

 13 Termination of Collection Action 

 (Write-off) . . . . . . . . . . 17 10/09 10-01 

 14 Recovery from Deceased 

 Claimant’s Estate . . . . . . . 18 10/09 10-01 

 15 Credit Reporting. . . . . . . . . 18 10/09 10-01 

 16 Court Ordered Restitution in 

 Fraud Cases. . . . . . . . . . 19 10/09 10-01 

Exhibits 

 1 Sample Second Demand Letter. . . 10/09 10-01 

 2 Sample Third and Final 

 Demand Letter. . . . . . . . . 10/09 10-01 

 3 Waiver of Charges Worksheet. . . 10/09 10-01 

 4 Compromise of Principal 

 Worksheet. . . . . . . . . . . 10/09 10-01 

 5 Sample Compromise Order. . . . . 10/09 10-01 

 6 Sample Compromise Memorandum . . 10/09 10-01 

 7 Sample Letter Terminating 

 Collection Actions . . . . . . 10/09 10-01

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1. Purpose and Scope. EEOICPA PM 3-800 addresses the 

identification and establishment of debts to the point of 

finding a specific debt amount to be due and payable (i.e., 

collectible). The purpose of this chapter is to provide 

guidance for managing debts by collection, compromise and 

termination. Included are procedures for the assessment of 

charges, collection actions, salary offset, administrative 

offset, compromise, referral to the Department of the Treasury, 

and termination (write-off) of collection efforts. 

2. Responsibilities. The collection and settlement of debts 

are handled by: 

a. Claims Staff. Claims Examiners identify the potential 

overpayments and initially compute the debts. 

b. National Office Fiscal Point of Contact (POC). 

National Office Fiscal POC employees are authorized to 

compromise claims and to suspend or terminate collection 

action, subject to the approval of the Chief of the 

Policies, Regulations, and Procedures Unit (PRPU), on 

claims of $1 to $100,000 (exclusive of interest, penalties, 

and administrative costs). The POC also recommends 

referral of claims of more than $100,000 to the Director, 

Division of Energy Employees Occupational Illness 

Compensation (DEEOIC), for such action. 

(1) If there is any indication of fraud on the part 

of the claimant or any other party with an interest in 

the claim, the POC refers the claim to the Director of 

DEEOIC, who in turn refers the claim to the Department 

of Justice (DOJ). The POC has no authority to 

compromise, suspend or terminate recovery on such 

claims. 

A case involves fraud if an investigation is ongoing 

which is likely to lead to an indictment, if an 

indictment is pending, or if there has been a 

conviction in connection with the debt claim. Cases 

where the DOJ has declined to seek an indictment, or 

the criminal case has been dismissed, or an acquittal 

has occurred are not considered fraud cases. 

(2) The POC also takes preliminary and final actions 

with respect to waiver of recovery, establishing and 

maintaining accounts receivable actions in a 

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2. Responsibilities. (Continued) 

spreadsheet, pursuing collection of the debt, and 

monitoring accounts receivable to determine if and 

when referral to the Department of the Treasury or 

termination of collection action may be appropriate. 

c. An overpayment of compensation does not become a 

"debt" and is not subject to recoupment until established 

due process procedures have been provided and a final 

decision on waiver of recovery has been issued. Until that 

time, the POC may accept payment against the overpayment 

but may not assess any charges, take any action to collect 

from compensation owed, or issue requests for offset by any 

other agency. 

3. Recovery. The overpayment decision serves as the first 

demand letter to a claimant. If there is no response from the 

claimant, or the claimant has responded but failed to agree to a 

reasonable collection strategy as outlined by DEEOIC, the PA 

generates a second demand letter within 30 days of the issuance 

of the overpayment decision (see Exhibit 1). If the claimant 

does not respond or resolve the overpayment within 30 days of 

the issuance of the second demand letter, a third and final 

demand letter is sent (see Exhibit 2). 

a. Means of Recovery. DEEOIC may employ various means of 

recovery where an overpaid claimant has been made aware of 

the overpayment (via the overpayment decision described 

above) but fails to refund the overpayment within 60 days 

of the issuance of the third and final demand letter. 

(1) Where the claimant has failed to refund the 

overpayment, DEEOIC recovers the overpayment by 

reducing any further lump sum payments due (current 

and future). 

(2) Should the claimant die prior to repaying the 

overpayment, DEEOIC shall decrease future payments to 

any eligible survivors with respect to the underlying 

occupational illness or covered illness. 

(3) If no element of fraud on the claimant’s part is 

present, the PA refers the debt to the Department of 

the Treasury when a recoverable overpayment exists and 

the claimant fails to refund the full amount within 60 

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3. Recovery. (Continued) 

days of the final demand letter, and DEEOIC is unable 

to recover from any future or current compensation. 

(a) Due to cross-servicing requirements of the 

Debt Collection Improvement Act of 1966, debts 

that are delinquent for more than 180 days should 

be referred to the Department of the Treasury for 

further debt collection action on the agency’s 

behalf. Agencies may also refer debts that have 

been delinquent for less than 180 days to the 

Department of the Treasury to ensure efficient, 

cost-effective debt collection. 

(b) If there is sufficient reason to conclude 

that full or partial collection of the debt would 

be best achieved through litigation, the 

Department of the Treasury referral should 

include a recommendation to forward the debt to 

the Department of Justice for litigation [see 

DLMS 6 § 1162(a)]. 

(c) However, no claim should be referred for 

litigation until DEEOIC’s collection efforts and 

administrative processes are completed and the 

debt remains delinquent and legally enforceable. 

All referrals of this type should have the 

concurrence of the Office of the Solicitor of 

Labor. 

(d) The overpayment is subject to the provisions 

of the Federal Claims Collection Act of 1966, as 

amended (31 U.S.C. 3701 et seq.), and may be 

reported to the Internal Revenue Service as 

income. 

(4) Where there is an indication of fraud, a false 

claim being made, or misrepresentation on the part of 

the claimant, the PA refers the debt to the Department 

of Justice for recovery if no overpayment refund is 

made in full at the end of the recovery process. 

The PA follows the current fraud procedures and promptly refers 

the claim to the Office of Inspector General for investigation. 

However, a debt would not be referred to the Department of 

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3. Recovery. (Continued) 

Justice if the debt is less than $2,500, which is the minimum 

amount necessary for referring debts to the Department of 

Justice for litigation. 

4. Assessment of Charges. The Debt Collection Act of 1982 

authorizes the assessment of interest, administrative costs, and 

penalties on delinquent debts. 

a. Final Decision. Charges are assessed on any debt 

where a final decision has been issued, beginning on the 

date the claimant was notified that charges may apply to 

the debt, or the date of the final decision, whichever is 

later. 

b. Court Order. In cases of court-ordered restitution, 

the Court Order takes precedence over the Debt Collection 

Act. Unless stipulated in the Court Order, charges may not 

be assessed on the part of the debt corresponding to the 

restitution amount set by the court (see paragraph 16 

below). 

c. Interest. Interest is assessed at the rate in effect 

on the date of the final decision (unless the claimant has 

defaulted on a previous agreement). The current interest 

rate for OWCP debts is 2.0 percent. Changes in interest 

rates are announced by ESA Notice and DEEOIC directive. 

d. Administrative Costs. When a debt is found to be 

delinquent and is referred to the Department of the 

Treasury for collection, a charge is added to the principal 

and interest as an administrative cost of collection. 

5. Waiver of Interest and Other Charges. Interest charges may 

be waived under three circumstances. Waiver of these charges is 

mandatory under the provisions outlined in the first two 

subparagraphs below, and discretionary under the provisions 

outlined in the third subparagraph. 

a. Full Payment Within 30 Days. If the principal is 

repaid in full within 30 days of the notification (final 

decision) that charges are applicable, then charges are 

waived. This may be extended for one additional 30-day 

period on a case-by-case basis for good cause shown. 

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5. Waiver of Interest and Other Charges. (Continued) 

Acceptable reasons for the 30-day extension include (but 

are not limited to) situations where the claimant needs the 

additional time to liquidate assets or arrange financing to 

pay the debt, or where the claimant does not receive the 

final decision in a timely manner (e.g., because of absence 

from home due to vacation). 

b. Claimant Without Fault. Where the claimant is without 

fault in the creation of the debt and a repayment agreement 

has been established, interest charges are waived if: 

(1) The monthly payment is so small that it does not 

cover the interest, or 

(2) There is so little left after interest that the 

debt will not be paid off within the lifetime of the 

claimant as determined by actuarial tables. 

The POC determines whether charges are waived under this 

provision by completing the Waiver of Charges Worksheet 

(Exhibit 3).

If the claimant should later default on the repayment 

agreement, interest charges will again apply. 

c. Cost of Recovery Exceeds Accrued Charges. If the full 

amount of the principal is paid after charges have accrued, 

and the additional cost of recovering the charges is 

greater than the amount of the accrued charges, then the 

DEEOIC may, at its discretion, waive the charges. 

6. Compromise. Compromise differs from waiver of recovery of 

an overpayment. Waiver is accomplished by formal decision 

negating the overpayment before it becomes a debt, while 

compromise is an administrative means of disposing of a debt by 

accepting a partial settlement. The claimant has no legal right 

to settlement or compromise. Also, the claimant need not be 

without fault for compromise to be considered. 

a. Compromise to Limit Repayment Period. This method of 

compromise is addressed more fully in paragraph 7 below. 

b. Compromise Due to Legal Issues. A debt may also be 

compromised if the Office of the Solicitor notifies the POC 

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6. Compromise. (Continued) 

that significant doubt exists as to whether the Government 

could establish its claim in court, and the claimant has 

offered partial repayment. This may occur because of a 

dispute about the law or facts of the case. However, the 

POC does not make a judgment about legal enforceability 

without the Office of the Solicitor's specific advice after 

review of the case. (The limitations noted in subparagraph 

c below also apply here.) 

c. Resolution of Debt. Once a compromise letter 

explaining the reasons for, and amount to be compromised, 

is issued by the National Office and the agreed-upon 

portion of the debt has been refunded to DEEOIC, the debt 

is fully resolved. The POC annotates the accounts 

receivable records to reflect resolution by compromise and 

the amount repaid. 

(1) The POC also sends a letter to the claimant 

confirming that the debt has been discharged. Unless 

the compromise was for reasons of economic hardship, 

the POC also advises in this letter that the amount 

compromised will be reported as income to the IRS and 

may be subject to taxation under IRS rules. 

(2) At the end of each year, the National Office POC 

files IRS Form 1099G in cases where the debt has been 

compromised for reasons other than economic hardship, 

and a copy of the form is forwarded to the claimant’s 

case file. 

7. Compromise to Limit Repayment Period. Compromise of the 

principal amount owed is an established tool for collecting 

existing overpayments. However, compromise for the application 

of additional charges is different from compromise of 

principal. Compromise of additional charges is mandatory where 

the repayment period must be limited. Compromise to limit the 

repayment period may be due to hardship, or based on life 

expectancy. In such cases, a specific mathematical formula is 

used to determine the amount to be compromised. 

Under this policy, the POC considers compromising additional 

charges in all cases at the time the repayment agreement is 

established, unless charges are waived pursuant to paragraph 

5(c) of this chapter. If charges are waived under that 

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7. Compromise to Limit Repayment Period. (Continued) 

provision, then compromise will not be considered under this 

policy. 

a. Effect of Charges. If charges cannot be waived and a 

repayment schedule (either initial or re-negotiated) is 

being established, compromise must be considered in cases 

where the POC has determined that a certain amount is the 

most the claimant can afford to repay. 

 

For example, if the POC determines, by review of detailed 

financial information, that the maximum amount the claimant 

can afford per installment and the period required for 

repayment of the debt at this rate is extended by more than 

35% due to the application of the charges, then the amount 

of the principal must be compromised so that the period 

required for repayment of the debt is not extended by more 

than 35%. 

b. Information Needed. The following information is 

needed to determine whether compromise of accrued charges 

and/or principal is required: the amount of the principal, 

the amount of the monthly payment, and the interest rate. 

c. General Calculation Rule. Some cases may be 

eliminated from consideration for compromise by applying 

the following rule: divide the current principal balance 

(plus any accrued charges) by the monthly payment and 

multiply the result by the annual interest rate. 

If the result is less than 5.5%, no compromise is 

necessary, and the POC so indicates on the Compromise of 

Principal Worksheet (Exhibit 4). If the result is 5.5 or 

greater, the POC completes the Compromise of Principal 

Worksheet in its entirety to determine the amount to be 

compromised. 

d. Compromise Order. If the principal must be 

compromised under this provision, the principal (before 

compromise) does not exceed $100,000, and no indication of 

fraud is present, the Chief of the PRPU certifies the 

Compromise of Principal Worksheet and the POC issues a 

compromise order to the claimant. The compromise order, 

which includes the information outlined below, does not 

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7. Compromise to Limit Repayment Period. (Continued) 

carry the right to a hearing. Exhibit 5 is a sample 

compromise order. 

If the repayment period is sufficiently reduced by 

compromising only accrued charges, the PRPU Chief certifies 

the Compromise of Principal Worksheet and the POC issues a 

compromise order to the claimant, regardless of the 

principal amount. The compromise order includes: 

(1) The amount of each component of the debt (with 

separate amounts specified for principal, accrued 

administrative costs, accrued penalty, and accrued 

interest, as applicable); 

(2) The rationale for the determination that the debt 

cannot be waived; 

(3) The rationale for any determination with respect 

to fraud (see paragraph 2b above); 

(4) A brief explanation of the rationale for 

compromise (the Compromise of Principal Worksheet may 

be incorporated by reference); 

(5) The amount to be accepted in full settlement of 

each component of the debt (with separate amounts 

specified for principal, accrued administrative costs, 

accrued penalty, and accrued interest, as applicable); 

(6) The time and manner of payment; and 

(7) A statement that the debt is not compromised or 

settled until full payment of the specified amount has 

been made. 

e. Principal Over $100,000. If any amount of the 

principal must be compromised under this provision and the 

principal amount (before compromise) exceeds $100,000, the 

case is referred to the Director of DEEOIC for further 

action after the Chief of the Policies, Regulations and 

Procedures Unit (PRPU) certifies the Compromise of 

Principal Worksheet. 

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7. Compromise to Limit Repayment Period. (Continued) 

f. Compromise Not Approved. If neither accrued charges 

nor principal are compromised under this provision, the POC 

files the Compromise of Principal Worksheet in the case 

file. 

8. Compromise in Consideration of Partial Payment. Regardless 

of whether it is required under the provisions of this chapter, 

compromise may be further considered as a means of disposing of 

debts where collection would be extremely difficult or 

expensive. The claimant need not be without fault for 

compromise to be considered, however, the claimant has no legal 

right to settlement or compromise to dispose of an overpayment. 

a. Proposal. The claimant may propose that DEEOIC be 

satisfied with partial recovery on the debt, or DEEOIC may 

propose a compromise to the claimant. For example, 

compromise might occur if the claimant reported a liquid 

asset that exceeded the resource base, but was insufficient 

to cover the debt, and otherwise had only enough income to 

meet expenses. The compromise would provide for recovery 

of the amount available and forgiveness of the remainder. 

However, in judging whether repayment would cause hardship, 

the POC assesses the claimant's income and assets according 

to the criteria provided in EEOICPA PM 3-0800. The 

claimant should be required to submit a current financial 

report (OWCP-20), if one has not been provided within the 

previous six months. Also, the POC informs the claimant 

that under certain circumstances the compromised portion of 

the debt will be reported to IRS as income 

b. Repayment Within Reasonable Time. Compromise should 

be considered if the Government cannot collect the full 

amount because the claimant is unable to pay it within a 

reasonable time, or the claimant refuses to pay the claim 

in full and the Government cannot enforce collection by 

court action within a reasonable time. In determining 

inability to pay, the OWCP may consider: 

(1) The age and health of the claimant; 

(2) Current and potential income; 

(3) Inheritance prospects; 

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8. Compromise in Consideration of Partial Payment. (Continued) 

(4) The possibility that the claimant has concealed 

or transferred assets to avoid recoupment; and 

(5) The availability of assets or income for enforced 

collection. 

If the POC finds that compromise is warranted, he or she 

prepares a memorandum to the file which describes the 

financial circumstances of the claimant, the proposed 

compromise, and the considerations which led to the 

compromise recommendation. Exhibit 6 is a sample 

compromise memorandum. 

c. Limitations. The compromise limitations described 

earlier in this chapter also apply here. If compromise of 

the debt principal appears warranted but the original 

principal amount is more than $100,000, or where there is 

an indication of fraud (see paragraph 2b above), then the 

compromise memorandum and the case file should be referred 

to the Director of DEEOIC for further action. 

d. Compromise Order. If compromise appears warranted and 

the limitations noted above do not apply, the POC issues a 

compromise order which includes the items listed in 

paragraph 4a above. The POC incorporates the information 

noted in the compromise memorandum in the compromise order 

to explain the basis for the compromise to the claimant. 

The compromise order does not carry the right to a 

hearing. Exhibit 5 is a sample compromise order. 

e. Contractual Agreement. When a debt is compromised, 

the United States agrees to be satisfied with partial 

repayment. Even if the claimant's circumstances change, 

such that the reasons for the compromise are no longer 

valid, OWCP has officially forgiven the remainder of the 

debt and may not press for additional repayment unless the 

claimant defaults on the repayment agreement. Therefore, 

compromise should be undertaken only after the claimant's 

financial circumstances are known. 

9. Collection Strategies. Strategies for collection of a debt 

are generally pursued in the following order, as appropriate: 

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9. Collection Strategies. (Continued) 

a. Recovery of Entire Debt. This may occur by reducing 

any further compensation payment due currently or in the 

future for which there is direct statutory authority under 

42 U.S.C. 7385j-2. Such recoupment, either in a lump sum or 

in installments, is addressed in paragraph 9 below. 

b. Voluntary Repayment in Lump Sum. Such repayments are 

addressed in paragraph 10 below. 

c. Voluntary Deduction from Retirement Benefits. Such 

deductions are made in installments from periodic payments. 

d. Involuntary Offset of Retirement Benefits. Also, 

refund of retirement contributions may be pursued. 

e. Voluntary Installment Payments. Payments made 

directly by the debtor are addressed in paragraph 10 below. 

f. Compromise. This action is addressed in paragraph 6 

above. Where a debt exceeds $100,000, a recommendation is 

made to forward the debt to the Department of Justice for 

litigation or for compromising, suspending or terminating 

debt collection. 

g. Termination or Suspension. These actions, also termed 

write-offs, are addressed in paragraph 10 below. 

10. Recovery from Compensation Entitlement. If further 

compensation is owed to the claimant, the POC recovers the debt 

from any lump-sum payment due currently or in the future. 

Collection action cannot begin until after the POC issues a 

final overpayment decision. If a sufficiently large lump-sum 

payment of compensation is due, the debt is recovered in full by 

a single deduction from compensation owed. The POC sends the 

claimant a letter explaining the recovery method. 

The POC establishes an accounts receivable on the accounts 

receivable spreadsheet to track the balance due, interest 

incurred, and/or payments received. 

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11. Recovery in Cases With No Compensation Entitlement. 

a. Lump Sum Preferable. Debts are collected in one lump 

sum whenever possible. If the claimant cannot pay in this 

manner, payment may be accepted in regular installments. 

The POC determines the size and frequency of the 

installment payments by the size of the debt and the 

claimant's ability to repay. 

b. Claimant's Resources. The POC evaluates the 

claimant's resources for repayment as soon as a final 

overpayment decision is made (see EEOICPA PM 3-0800) and 

sets or negotiates an appropriate repayment plan with the 

claimant. 

If detailed information about the claimant's financial 

status is not already in the case file, it should be 

obtained. This information may include: Form OWCP-20 

Overpayment Recovery Questionnaire; information provided on 

Forms EE-1 and EE-2; information provided by the Social 

Security Administration in response to requests from the 

DEEOIC; and other documents concerning the claimant's 

financial status. 

c. Detailed Financial Information Not Available. If the 

claimant refuses to submit detailed financial information, 

or has not yet had time to reply to a request for such 

information, the POC may accept voluntary installment 

payments in an amount determined by the claimant, until 

detailed financial information becomes available. 

However, the POC should not enter into a formal agreement 

with the claimant, and should not consider waiver of 

charges (see paragraph 4) or compromise of principal (see 

paragraphs 5 and 6), unless and until the claimant provides 

detailed financial information and agrees to installment 

payments in an amount which reasonably represents the 

maximum he or she can afford. 

 

d. Schedule of Payments. If the claimant offers to repay 

on a set schedule or requests a change in a schedule 

already established, the POC evaluates the proposed 

repayment plan for reasonableness on the basis of the 

claimant's resources as documented in the case file. The 

Department of Labor’s regulations concerning debt 

collection recommend that debt repayment be scheduled to 

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11. Recovery in Cases With No Compensation Entitlement. 

(Continued) 

recover the entire amount (including any interest or 

penalties) in three years, but this may not be practical if 

the claimant does not have appreciable income (29 C.F.R 

20.33(a)). 

(1) If the repayment plan is not reasonable, the POC 

asks the claimant, in writing, to contact the POC or 

the Chief, PRPU to discuss an accelerated repayment 

plan. 

(2) If the repayment plan is reasonable, the POC 

obtains a signed statement from the claimant which 

specifies the terms of repayment. This statement 

constitutes a legally enforceable agreement. The POC 

annotates the accounts receivable spreadsheet and 

diaries the next payment. 

e. Unreasonably Small Payments. If the claimant 

unilaterally makes installment payments in amounts so small 

that the debt will never be repaid, or will be repaid in an 

unreasonably long period (such that the claimant will 

become a "perpetual debtor"), and the claimant refuses to 

increase the payments or submit detailed financial 

information justifying the size of the payments, the POC 

refers the debt to the Department of the Treasury with a 

recommendation that the debt be forwarded to the Justice 

Department for resolution, if appropriate. 

 

f. No Response to Demand Letters. If no response is 

received to the demand letters, the POC attempts to contact 

the claimant by telephone. The POC explains who is calling 

and refers to the decision that stated the amount and terms 

of collection. The POC asks what arrangements the claimant 

would like to make to effect repayment. 

If the claimant does not suggest a repayment plan, the POC 

should be prepared, based on review of the case file, to 

propose a weekly or monthly amount. The POC ensures that 

the details of the telephone call are documented in the 

ECMS Telephone Messaging System. 

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11. Recovery in Cases With No Compensation Entitlement. 

(Continued) 

When agreement is reached, the POC drafts a follow-up 

letter referring to the telephone call and the terms 

discussed, and requesting the first installment payment. 

g. Further Action. If the telephone call is 

unsuccessful, or if the claimant does not begin the agreedupon payments, the POC evaluates the debt for referral to 

the Department of the Treasury, with a recommendation that 

it be forwarded to the Department of Justice, if 

appropriate, for termination of collection action. 

12. Referring Debts to Department of Treasury. The Debt 

Collection Improvement Act of 1996 provides that any non-tax 

debt or claim owed to the United States that has been delinquent 

for a period of 180 days be turned over to the Secretary of the 

Treasury for appropriate action to collect or terminate 

collection actions on the debt or claim. To further this goal, 

the Department of the Treasury (DOT) has created the Debt 

Management Services (DMS), a division of the Financial 

Management Services Branch. 

DMS provides government-wide debt collection services through 

the Treasury Offset Program (TOP) and Cross-Servicing Program. 

TOP involves offsets of payments from a variety of federal 

programs and includes offset of income tax refunds. The CrossServicing Program includes skip trace services, administrative 

wage garnishment, referral of debts to the Department of Justice 

(DOJ) for litigation, and referral of debts to private 

collection agencies. 

The DOT oversees all collection activity on all referred debts, 

and all debts more than 180 days delinquent must be referred for 

either TOP or Cross-Servicing or both. All debts related to 

overpayment of benefits under the EEOICPA are referred for both. 

a. Notice to Claimant. At least 60 days prior to 

referral to the DOT, the POC sends a letter advising the 

claimant that referral for collection action is possible. 

The notice includes specific advice that the claimant can: 

(1) Inspect and request copies of records about the 

debt; 

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12. Referring Debts to Department of Treasury. (Continued) 

(2) Enter into a mutually agreeable written repayment 

agreement; and 

(3) Request review of the amount of the debt, its 

past-due status, and whether the debt is legally 

enforceable. 

Sample letters shown as Exhibits 1 and 2 include language 

for this purpose, so issuance of either or both at 30-day 

intervals after the debt becomes final provides adequate 

due process. The DOT will not accept debts where such 

notice has not been given. 

b. Referral. When a debt is 180 days delinquent, it is 

eligible for referral to the DMS at DOT. If the POC has 

made no progress in collection efforts through recoupment 

of compensation benefits or voluntary repayment actions, 

the POC refers the debt to the DOT. 

The POC ensures that all due process requirements have been 

met and that the debt is appropriate for referral to the 

DOT. DOT will not accept debts that are not final, covered 

by bankruptcy, already in private collection, in 

litigation, or with the Department of Justice (DOJ). 

The POC refers the case to the DOT using the automated Debt 

Management System on the DOT’s website. The POC completes 

the DMS Agency Profile for each debt referred for 

servicing. The profile information includes: 

(1) Claimant/Debtor’s Social Security number; 

(2) Agency Points of Contact; 

(3) The method(s) by which DEEOIC wants the DMS to 

service their debts (refer to TOP, refer to credit 

bureaus); 

(4) Payment agreement parameters (e.g., will interest 

accrue during payment agreements); and 

(5) Whether the administrative fee is added to the 

debt or charged to DEEOIC. 

 

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12. Referring Debts to Department of Treasury. (Continued) 

c. Return of Debt. The DOT may return a debt to DEEOIC 

if it has been collected in full, found to be 

uncollectible, or covered by a bankruptcy filing, or if 

compromise has been reached. Returned debts are sent to 

the POC for further action as necessary. 

 d. Debt and Transaction Tracking. DMS tracks all debts 

and payments using Fed Debt, a debt and debtor based system 

which allows: 

(1) DMS to better handle joint and several debts; 

(2) A demand letter to be sent to each debtor; 

(3) Users to update debt and/or debtor information; 

(4) Multiple payment agreements for a debt; 

(5) Removal of a debtor/claimant from the debt 

without closing the entire debt; 

(6) Records of transactions, including how payments 

are applied (i.e., administrative fees, penalties, 

interest and principal); 

(7) Federal agencies to report payments, adjustments 

and reversals they receive in their offices. 

The POC has access to the DMS Fed Debt System and uses it 

to track the status of the debt until it is resolved. 

e. Referral to Department of Justice (DOJ). A component 

of DOT’s Cross Servicing is referral of debts in excess of 

$100,000 to the DOJ for litigating, compromising, 

suspending and terminating collection. The DOJ has the 

exclusive authority to compromise, suspend or terminate 

collection activity on debts in excess of $100,000, unless 

it decides, in its discretion, to return the debt to the 

agency for such purposes. 

The POC ensures that all DOT referrals for debts in excess 

of $100,000, exclusive of interest, include recommendations 

to forward the debt to DOJ for permission to compromise, 

suspend or terminate collection action. 

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12. Referring Debts to Department of Treasury. (Continued) 

(1) While the DOJ is considering a case, the POC 

carries the accounts receivable record as open and 

annotates it as referred to DOJ. 

(2) When collecting a debt under a DOJ agreement, 

DEEOIC cannot charge interest or send billing notices. 

(3) The POC cancels the accounts receivable record on 

a case referred for collection when notified by the 

DOJ that it will not take further action. 

13. Termination of Collection Action (Write-off). When DOT 

directs DEEOIC to write off the debt, the POC removes the 

account from DEEOIC’s receivables. 

a. Potential for Litigation. National Office managers 

periodically review the accounts receivable spreadsheets to 

identify cases in which aggressive collection action has 

brought no result. Each case is examined to determine 

whether litigation would lead to collection of the debt. 

Cases in which collection is not likely to succeed are 

terminated. They include situations where the claimant 

appears to have no assets or income which could be attached 

by a court; where the claimant's financial circumstances 

are such that hardship would result from recoupment; or 

where the Office of the Solicitor or the U.S. Attorney’s 

Office states that DEEOIC has a poor legal case against the 

debtor. 

The POC prepares a memorandum regarding termination of 

collection action where collection actions have brought no 

results. In the memorandum, the POC states the nature and 

amount of the debt, the efforts made to collect it, and the 

financial circumstances of the claimant, explaining why 

termination of collection action is warranted. 

If the debt exceeds $100,000, or is between $2500 and 

$100,000 and there is an indication of fraud (see paragraph 

2b above), the Chief of the PRPU signs the memorandum. 

Debts of $2500 or less which cannot be collected by 

administrative means, including referral to the DOT, must 

be written off, since the DOT will not accept them. 

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13. Termination of Collection Action (Write-off). (Continued) 

b. Suspension of Collection Action. Occasionally a 

claimant may ask that the debt be forgiven due to financial 

hardship. The POC may suspend collection action because of 

financial hardship, but reserves the right to resume 

collection action in the event of future claims or a change 

in the claimant's circumstances. Exhibit 7 shows a sample 

letter advising a claimant of this action. 

c. Termination of Collection Action. When collection 

action is terminated, the POC documents and closes the 

accounts receivable record. Termination of collection 

action, or the “write-off” of a bad debt, is an 

administrative action which differs from waiver or 

compromise. Termination of collection action does not 

forgive the debt, since DEEOIC may collect it at a later 

date. Generally, however, once a debt has been written 

off, collection actions are never resumed. 

At the end of each year, DOT files IRS Form 1099G for each 

case where the debt has been written off for reasons other 

than economic hardship, and a copy of the form is sent to 

the POC for inclusion in the case file. Once Form 1099G 

has been filed, the POC documents the accounts receivable 

record accordingly, and DEEOIC may not collect the debt at 

a later date. 

14. Recovery from Deceased Claimant's Estate. If the claimant 

dies before the debt is completely recovered, the POC acts 

quickly to obtain pertinent information about the estate. 

Prompt action is essential because creditors who have not 

properly asserted a claim before the estate is closed are 

generally precluded from any recovery. Once the estate has been 

closed and the proceeds distributed, collection action must be 

terminated. 

The information to be requested and the action to be taken are 

described in EEOICPA PM 3-0800 and are the same for an 

established debt as for a newly discovered debt. 

15. Credit Reporting. Under the Debt Collection Act of 1982, 

claimants whose accounts become delinquent are subject to 

reporting to private credit reporting bureaus. The DOT refers 

delinquent DEEOIC debts to one or more credit bureaus based on 

information the POC places in the DOT’s Debt Management System. 

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15. Credit Reporting. (Continued) 

The credit bureaus maintain credit information on individuals 

and provide the information upon request to lenders. The POC 

points out the possibility of credit reporting to individuals 

who refuse to cooperate in the debt collection process. 

 

If a claimant disputes the information in a credit bureau's 

file, the DOT will contact the National Office to verify the 

information. The POC verifies the information and responds to 

the DOT within seven business days. 

If DOT fails to respond to the credit bureaus within a given 

time limit (generally 30 days), the credit bureau will accept 

the claimant's version of the facts. 

If the information held by the credit bureau was incorrect, the 

POC notifies the DOT and corrects the information in the 

office’s overpayment tracking system. The POC also updates the 

Treasury’s online debt system, so that the error is not repeated 

in the next transmission to the credit bureau. 

 

16. Court Ordered Restitution in Fraud Cases. When a claimant 

has been convicted of filing a false claim which resulted in an 

overpayment/debt due the government, the court often orders the 

defendant/claimant to make restitution to the United States as a 

condition of probation. The amount of restitution may or may 

not be the full amount of the debt owed to OWCP. 

a. "Global Settlement". If the Court Order states that 

the restitution amount will be in full satisfaction of the 

debt owed the United States (a "Global Settlement"), the 

Court Order takes precedence over the OWCP's administrative 

debt collection process. 

In such cases, if the restitution amount is less than the 

outstanding debt principal balance, the principal balance 

must be reduced to the restitution amount set by the 

court. Also, interest may not be applied to such debts 

unless stipulated in the Court Order. 

However, if the probation period ends and the claimant 

fails to make full restitution, the POC pursues collection 

of the full original debt amount. 

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16. Court Ordered Restitution in Fraud Cases. (Continued) 

b. Other Than "Global Settlement". If the Court Order 

does not represent a "Global Settlement," the POC continues 

to pursue collection of the full amount of the debt, taking 

credit for any restitution amounts received. Unless the 

Court Order stipulates assessment of interest, interest may 

not be applied to the restitution amount and any 

restitution payments received should be applied directly to 

the debt principal. 

In criminal cases, OWCP is sometimes asked to assist the 

DOJ in calculating the loss to the government in accordance 

with federal sentencing guidelines. This may involve 

calculating how benefits would have been paid if the 

claimant had fully advised OWCP. The POC processes all such 

requests. 

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SAMPLE SECOND DEMAND LETTER

Dear [Claimant Name]: 

This letter is in further reference to your debt in the amount of [$], which 

resulted from the overpayment of benefits in your case. A copy of our 

overpayment decision and first demand for payment, dated [insert date] is 

enclosed. We have not received payment from you or any indication that you 

intend to cooperate in this matter.

If we do not receive payment, or some indication that you intend to make 

payment, within 30 days of the date of this letter, we may add administrative 

charges for sending any additional demands for payment.

If your debt remains delinquent, we will refer it to the Department of the 

Treasury for collection. We will assess an additional administrative cost to 

help defray the expense of this referral. Information about the status and 

delinquency of your debt is reportable to credit bureaus. 

• You may inspect and request copies of your records about this debt;

• You may contact us to enter into a mutually agreeable written repayment 

agreement; and

• You may request a review of our determinations about the amount of your 

debt, its past-due status, and its legal enforceability. To exercise this 

right, you must state your request in writing, state your reason(s) for 

challenging our determinations, and sign your statement. If you believe 

that any information of record concerning your debt is not accurate, 

timely, relevant, or complete, you must provide information or 

documentation to support your belief.

You are expected to reply within 30 days. Make your check payable to the U.S. 

Department of Labor, OWCP, and include your EEOICPA file number on the check. 

Send payment to:

US DEPARTMENT OF LABOR

OWCP/EEOICPA

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943

If you wish to enter into a written repayment agreement, contact me 

immediately on.

Sincerely,

Unit Chief for Policies, 

Regulations and Procedures

DEEOIC

Enclosure: 

EEOICPA Tr. No. 10-01 Exhibit 1 

October 2009 

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SAMPLE THIRD AND FINAL DEMAND LETTER 

Dear [Claimant Name]: 

This letter is in further reference to your debt in the amount 

of [$], which resulted from the overpayment of benefits in your 

case. 

Because 30 days have passed and we have not received payment or 

an indication that you intend to repay this money, your debt is 

now considered to be delinquent. Interest will therefore be 

assessed at the rate which applied when you received your first 

notice of indebtedness, or [$]. We may add penalty charges of 

6% per year for any portion of the debt remaining delinquent for 

more than 90 days and administrative charges. 

We may refer the debt to a credit bureau and to the Department 

of the Treasury for administrative offset if payment is not made 

within 60 days of the date of this letter. Information which 

will be given to a credit bureau is limited to your name, 

address and social security number; the amount, status and 

history of the debt; and the program under which the debt arose, 

that is, the Energy Employees Occupational Illness Compensation 

Program. 

Once your debt has been referred to the Department of the 

Treasury, administrative charges will be added to the current 

principal amount. These charges, which are computed as a 

percentage of the debt, reflect our collection cost. They are 

authorized by the Debt Collection Improvement Act of 1996 

(Public Law 104-134). This referral will therefore result in a 

large increase in the size of your debt. 

You may avoid these outcomes by sending a check in the amount 

stated above. Make your check payable to U.S. Department of 

Labor, OWCP, and include your EEOICPA file number on the check. 

Send it to: 

US DEPARTMENT OF LABOR 

OWCP/EEOICPA 

POST OFFICE BOX 70943 

CHARLOTTE, N.C. 28272-0943 

EEOICPA Tr. No. 10-01 Exhibit 2 

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As you have been advised previously, you have certain rights 

with respect to referral of your debt to the Department of the 

Treasury or to credit bureaus: 

 You may inspect and request copies of your records about this 

debt; 

 You may contact us to enter into a mutually agreeable written 

repayment agreement; and 

 You may request a review of our determinations about the 

amount of your debt, its past-due status, and its legal 

enforceability. To exercise this right, you must state your 

request in writing, state your reason(s) for challenging our 

determinations, and sign your statement. If you believe that 

any information of record concerning your debt is not 

accurate, timely, relevant, or complete, you must provide 

information or documentation to support your belief. 

If you wish to enter into a written repayment agreement, contact 

me immediately at [insert telephone number]. 

Sincerely, 

Unit Chief for Policies, 

Regulations and Procedures 

DEEOIC 

EEOICPA Tr. No. 10-01 Exhibit 2 

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WAIVER OF CHARGES WORKSHEET 

File Number: 123456789 

1. Current principal balance 

 $_________ 

 

2. Accrued charges 

 a.) accrued Administrative charges $_________ 

 b.) accrued penalty $_________ 

 c.) accrued interest $_________ 

 Total (Item 2a + Item 2b + Item 2c) $_________ 

3. Interest rate (express as percent; i.e. 5% not .05) 

 Monthly interest rate (annual rate/12) ______% 

4. Monthly payment $_________ 

5. Monthly interest (Item 1 x Item 3) $_________ 

 If Item 5>= Item 4, then charges are waived. Stop here 

 If Item 5< Item 4, go on to Item 6 

6. Period to repay full amount of debt (months) 

 a) Period to repay accrued charges_____ mos. 

 Item 2/Item 4- (Item 1 x Item 3) 

b) Period to repay principal _____ mos. 

Total (Item 6a + Item 6b) _____ mos. 

7. Debtor’s life expectancy (see page 2 of this exhibit; 

multiply that figure by 12 to convert years to months). 

IF ITEM 7 IS LESS THAN ITEM 6, then all charges must be 

waived. 

IF ITEM 7 IS GREATER THAN OR EQUAL TO ITEM 6, then charges 

cannot be waived. 

Consider whether the accrued charges and/or principal must 

be compromised by completing the Compromise of Principal 

Worksheet. 

Calculations performed by: _______________ Date: _________ 

Certified by: ____________________________ Date: _________ 

EEOICPA Tr. No. 10-01 Exhibit 3 

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Page 1 of 3 

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FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

WAIVER OF CHARGES WORKSHEET (Continued) 

Life Table 6.3 Expectation of Life at Single Years of Age, by Race and Sex. United States, 1999. Found in “National 

Vital Statistics Reports, March 21, 2001, Volume 50, Number 6, page 2 (Table A and 7-12, Tables 1-3), published by 

the Department of Health and Human Services, Center for Disease Control and Prevention, National Center for 

Health Statistics, National Vital System.

Age

All Races

Both Sexes Male Female

30 48.2 45.7 50.5

31 47.3 44.8 49.8

32 46.3 43.9 48.6

33 45.4 42.9 47.6

34 44.4 42.0 46.7

35 43.5 41.1 45.7

36 42.6 40.2 44.8

37 41.6 39.2 43.8

38 40.7 38.3 42.9

39 39.8 37.4 41.9

40 38.8 36.5 41.0

41 37.9 35.6 40.0

42 37 34.7 39.1

43 36.1 33.8 38.2

44 35.2 32.9 37.2

45 34.3 32.0 36.3

46 33.4 31.1 35.4

47 32.5 30.3 34.4

48 31.6 29.4 33.5

49 30.7 28.5 32.6

50 29.8 27.7 31.7

51 28.1 26.8 30.8

52 28.1 26.0 29.9

53 27.2 25.2 29.0

54 26.4 24.4 28.2

55 25.5 23.6 27.3

56 24.7 22.7 26.4

57 23.9 21.9 25.6

58 23.1 21.2 24.7

59 22.3 20.4 23.9

60 21.5 19.6 23.1

61 20.7 19.9 22.3

62 20.0 18.9 21.5

63 19.2 18.2 20.7

64 18.9 17.5 19.9

65 17.7 16.1 19.1

66 17.4 16.1 18.4

67 16.3 15.4 17.6

EEOICPA Tr. No. 10-01 Exhibit 3 

October 2009 

Page 2 of 3 

SUPERSEDED
FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

68 15.6 14.7 16.9

69 15 13.5 16.1

WAIVER OF CHARGES WORKSHEET (Continued)

Age

All Races

Both Sexes Male Female

70 14.3 12.8 15.4

71 13.7 12.3 14.7

72 13.0 11.7 14.1

73 12.4 11.1 13.4

74 11.8 10.6 12.7

75 11.2 10.0 12.1

76 10.7 9.6 11.5

77 10.1 9.0 10.8

78 9.6 8.5 10.2

79 9.0 8.0 9.7

80 8.5 7.5 9.1

81 8.0 7.1 8.6

82 7.5 6.7 8.0

83 7.1 6.3 7.5

84 6.7 5.9 7.1

85 6.3 5.5 6.6

EEOICPA Tr. No. 10-01 Exhibit 3 

October 2009 

Page 3 of 3 

SUPERSEDED
FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

COMPROMISE OF PRINCIPAL WORKSHEET 

File Number: 123456789 

1. Current principal balance $________ 

2. Accrued charges 

 a.) accrued Administrative charges $________ 

 b.) accrued penalty $________ 

 c.) accrued interest $________ 

 Total (Item 2a + Item 2b + Item 2c) $________ 

3. Interest rate (express as percent; i.e. 5% not .05) 

 a.) Annual Interest rate ______% 

 b.) Monthly interest rate (annual rate/12) ______% 

4. Monthly payment $________ 

5. To determine if this is a candidate for compromise apply the 

following rule:

Divide the current principal balance (plus any accrued charges) 

by the monthly payment; and multiply the result by the annual 

interest rate. 

_________ + ________/ _______ x ____________ = ____ 

Item 1 Item 2 Item 4 Item 3a 

If the result is less than 5.5, no compromise is necessary. If 

the result is 5.5 or greater complete the balance of the 

worksheet to determine the amount, if any, to be compromised. 

6. First month interest (Item 1 x Item 3b/100) $_________ 

7. Period within which debt must be repaid (months) 

 (Item 1/Item 4 x 1.35) __________ 

If Item 6 is >/= to Item 4, then all accrued charges are 

compromised; skip Item 8 through 10, and go to Item 11 to 

determine the amount of principal to be compromised. Otherwise, 

continue with Item 8. 

EEOICPA Tr. No. 10-01 

October 2009 

Page 1 of 2 

Exhibit 4 

SUPERSEDED
FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

8. Period to repay full amount of debt (months) 

 a.) Period to repay accrued charges ______ mos. 

 (Item 2/Item 4) – (Item 1 x Item 3) 

 b.) Period to repay principal ______ mos. 

 Total (Item 8a + Item 8b) ______ mos. 

If Item 8b is </= to Item 7, no principal need be compromised. 

Skip to Item 12. 

If Item 8b is > Item 7, the amount of the principal must be 

compromised. Continue to the next item. 

9. Maximum amount of accrued charges to be compromised.

 (Item 8 – Item 7/Item 8a) x Item 2 _________ 

If no number is generated here, then there are no accrued 

charges to be compromised. Proceed to the next item. 

10. Apportionment of compromise

 a.) Item 9 or Item 2, whichever is less 

 b.) Admin Charges (Item 2a or Item 10a, whichever is less) 

 c.) Balance (Item 10a – Item 10b) 

 d.) Penalty (Item 2b or Item 10c, whichever is less) 

 e.) Balance (Item 10c – Item 10d) 

 f.) Interest (Item 2c or Item 10e, whichever is less) 

11. Amount of principal after compromise ___________ 

If this amount is more than the original principal, then there 

is no compromise of principal. 

12. New debt balances. (If Item 10 was skipped then consider 

item 10a thru 10e as zero) 

 a.) Accrued admin charges (Item 2a – Item 9b) 

 b.) Accrued penalty (Item 2b – Item 10d) 

 c.) Accrued interest (item 2c – Item 10f) 

d.) Principal Balance (Item 11; or, if Item 11 was skipped, 

use Item 1) 

Calculations performed by: __________________ Date:________ 

Certified by: ______________________ Date:________ 

EEOICPA Tr. No. 10-01 

October 2009 

Page 2 of 2 

Exhibit 4 

SUPERSEDED
FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

SAMPLE COMPROMISE ORDER 

1. An overpayment of compensation was found in the above 

referenced case in the amount of {insert amount}. 

It has been determined that the claimant does not have the 

present or prospective ability to pay the full amount of the 

claim within a reasonable period of time. It has been further 

determined that there is no indication of fraud, the filing of a 

false claim, or misrepresentation on the part of the claimant or 

on the part of any other party having an interest in the claim. 

(Adjust wording of paragraph 2 to fit circumstances.) 

2. On {insert date} DEEOIC advised the claimant that he was 

found (with/without) fault in the matter of the overpayment and 

was notified of the grounds for consideration of waiver and of 

his rights in the matter. The claimant applied for waiver, and 

on {insert date} a final determination was made that claimant 

was with fault in the matter and was not entitled to 

consideration of waiver. 

3. Based on the information outlined above, it is hereby 

determined that full settlement of the claim for recovery of the 

overpayment shall be accepted in the amount of {insert amount}, 

which does not exceed $100,000 exclusive of interest and 

penalties, to be paid in the following manner and time: 

{Describe payment terms} 

4. The claim for overpayment shall not be considered settled 

until full payment of {insert amount} has been made within the 

time and in the manner specified above. The failure to make 

such payment shall result in the reinstatement of the full 

amount of the overpayment, less any amounts paid prior to 

default. 

Given by me this day of 

Unit Chief for Policies, 

Regulations and Procedures 

DEEOIC

EEOICPA Tr. No. 10-01 

October 2009 

Exhibit 5 

SUPERSEDED
FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

SAMPLE COMPROMISE MEMORANDUM 

MEMORANDUM TO FILE: 

The claimant in the attached case is indebted to DEEOIC in the 

amount of {insert amount}. The indebtedness arose because the 

Office accepted a claim for {insert} condition which was later 

rescinded by decision dated {insert date}. The claimant was 

fully advised of his rights in the matter of the overpayment but 

did not request a review of the documents or a telephone 

conference. The decision regarding the overpayment was made 

final by letter decision dated {insert date}. 

The claimant has agreed that a certificate in the amount of 

{insert amount} be paid in partial settlement of the debt and he 

proposed that we accept this in full settlement. The claimant 

submitted financial reports showing that his income is derived 

solely from a pension under the Civil Service Retirement Act and 

Social Security benefits. Also, the claimant has submitted 

documentation of his expenses which, according to the 

calculations in the file, consume virtually all of his income. 

There is no indication of fraud in this case. 

Since it appears extremely unlikely that the debt can be 

recouped in a reasonable period of time, either voluntarily or 

through legal proceedings, given the claimant's age, health, and 

financial circumstances, I recommend that this proposal for 

settlement be accepted and that an order be issued compromising 

the remainder of the debt upon receipt of {insert amount}. 

EEOICPA Tr. No. 10-01 

October 2009 

Exhibit 6 

SUPERSEDED
FEDERAL (EEOICPA) PROCEDURE MANUAL Chapter 3-0900 

Part 3 – Fiscal Debt Liquidation 

________________________________________________________________ 

SAMPLE LETTER TERMINATING COLLECTION ACTIONS 

Dear CLAIMANT NAME: 

This is in further reference to your debt to the United States 

in the amount of {insert amount}, and your letter to us of 

{insert date}. 

I have reviewed the issues raised in your letter, and the 

information concerning your financial situation which you have 

provided. I have determined that collection action on your debt 

will be terminated indefinitely and that no further action will 

be taken by this office, unless we are notified that your 

circumstances have changed. 

I have taken this action because it has been found that your 

financial circumstances are such that recovery would cause 

hardship. In the event that we receive evidence of substantial 

income or assets which would support collection, we reserve the 

right to take further action to recover the money due. 

Sincerely, 

Unit Chief for Policies, 

Regulations and Procedures 

DEEOIC 

EEOICPA Tr. No. 10-01 

October 2009 

Exhibit 7 

SUPERSEDED