Printing - FECA-PT2 - National Association of Letter Carriers

c. Entitlement to Health Benefits Coverage.. The survivors will be eligible for continued
coverage if the decedent was enrolled at the time of death in a health benefits plan for which the
agency (or OWCP) was making deduction. (Note that when only a spouse survives, the health plan
needs to be changed from a family plan to a self-only plan.)
d. The Number of Beneficiaries. When a survivor dies or otherwise becomes ineligible for
compensation, the benefits of the remaining survivors are recomputed. This action usually results
in an increase for each beneficiary, though payments may not exceed the maximum 75%.
e. The Number of Payees. Payment to a subsidiary recipient as well as a primary beneficiary
will always involve multiple payees, since the subsidiary survivor always gets a separate check (see
Exhibit 2 (Link to Image)).
f. CPI Entitlement, if any. Such entitlement depends on whether the deceased employee was
receiving disability compensation prior to death.
(1) If so, survivors are entitled to CPI adjustments effective more than one year after
compensable disability began, even though the date of death may be less than one year
prior to the effective date.
(2) If not, survivors are entitled to CPI adjustments beginning one full year after the
date of death, even if an earlier pay rate is used.
2-0700-12 Apportionment
12. Apportionment. The FECA provides that a spouse and children have the first right to
compensation, which means that other classes of dependents may be excluded if necessary. Thus, the
subsidiary dependents (i.e., parents, siblings, grandparents, and grandchildren) may receive
compensation only after the entitle- ments of the spouse and/or children have been satisfied fully.
The only exception to this rule occurs where OWCP reapportions the award in the manner provided by
Section 8133(d). For example, in the rare event that the survivors include a spouse, two children, and
dependent parents, the spouse and the children are entitled to 75%, and the parents are not entitled to
benefits. The CE may invoke Section 8133(d), however, to designate a small amount (e.g., 5%) for the
parents. Many factors influence this decision. The CE should:
a. Obtain the spouse's opinion.
b. Determine whether the spouse has other income.
c. Consider the actual amount of benefits in proportion to need (e.g., if they are
sizable/sufficient for "primary" beneficiaries, then allocating a small amount for parents would not
be harmful).
d. Determine whether the parent(s) live with the spouse. If so, benefits may not need to be
divided as the parents will receive them indirectly.
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