Printing - FECA-PT2 - National Association of Letter Carriers

The CE should prepare a memorandum for the file fully explaining the rationale for or against
reapportionment, and the SCE must certify it.
2-0700-13 Third-Party Cases
13. Third-Party Cases. The CE is responsible for referring to the designated CE any case in which
third-party liability may exist (see FECA PM 2-1100). In accordance with Section 8132, a third-party
recovery will result in suspension of death benefits to the recipients of the settlement until the credit is
absorbed. During this period, any beneficiaries who did not participate in the third-party recovery will
continue to receive compensation at the rate established.
2-0700-14 Burial Expenses
14. Burial Expenses. Section 5 U.S.C. 8134 provides for the payment of burial and funeral expenses
by the U.S. not to exceed $800. Like related medical expenses in a disability claim, funeral expenses in a
death case may be paid even if the case as a whole is denied on the basis of timeliness as long as causal
relationship is established and the requirements for giving notice are met. They may be paid without
regard to any life insurance or burial insurance policy which may be in force.
a. Allowable Expenses. Normally the following services are paid: transporting body from place
of death, embalming, shaving, dressing, clothes, storage, casket, vault, funeral services, clergy,
hearse to cemetery, cars, lowering device, digging grave, grave rental, perpetual care of grave,
grave marker, and funeral notice.
(1) Acceptability of other items must be determined on an individual basis according to
necessity and reasonableness.
(2) Costs for such items as monuments, obituary notices, and copies of extra death
certificates (one for the spouse and one for submission to OWCP are allowed) should be
deducted from the itemized bill.
(3) When authorizing payment of the burial allowance, the CE should note on the burial
bill which items are allowable. If the reason for allowing a specific item is not apparent, the
notation should include a brief explanation of the reasons for allowing it.
b. Payments by Other Agencies. If another Federal agency pays any part of the burial
expense for the deceased employee, OWCP's payment shall not exceed the difference between the
amount paid by the other agency and $800.
Neither the $225 Social Security lump sum death benefit nor benefits from life insurance or burial
policies are deducted from OWCP funeral benefits, however.
The VA will not authorize a burial allowance when the veteran dies from an injury or disability
sustained in the performance of Federal employment. Since the VA is no longer the primary
benefit payer in such cases, it is not necessary to check with the VA Regional Office (VARO) to
determine the amount paid or payable. Rather, the VA will contact OWCP if it appears that the
veteran was a Federal employee whose death was work-related. While the VA and OWCP have
agreed not to exchange funds where elections are concerned, such a transfer will be made if burial
FECA-PT2 Printed: 06/08/2010 113