Printing - FECA-PT2 - National Association of Letter Carriers

expenses are awarded in error.
c. Method of Payment. OWCP can reimburse, in proportion to the part of the total expense
paid, any person who paid part of the burial expenses. In no case will OWCP's payment for burial
expense exceed the amount allowed under the FECA, and all claims for burial allowance must be
accompanied by an itemized bill prepared by the undertaker who furnished the services. The order
of payment is as follows:
(1) If a survivor furnishes proof of payment of burial costs, OWCP pays the $800 to the
survivor. If burial costs have not been paid, the $800 is paid to the executor of the estate.
If there is no legal representative and the bill is unpaid, the funeral director may claim
direct payment. In most, if not all, legal jurisdictions in the U.S., undertakers and others
who provide burial services are considered priority creditors, and they therefore have a
priority claim against the proceeds of the decedent's estate and any entitlements the
decedent's death might create.
(2) If the funeral bill is unpaid or a balance exists, direct payment must be made to the
funeral home. For example, if a friend paid funeral expenses of $600 and an unpaid
balance of $300 remains, and OWCP allows $550 ($800 less $250 from the VA), OWCP will
pay the funeral home $300 with the balance of $250 going to the friend.
Section 5 U.S.C. 8130 prohibits assignment of compensation and exempts it from claims of
creditors. Therefore, no claim for compensation due at death by an undertaker or other creditor
may be recognized.
d. Transportation and Medical Costs. If the employee died away from home, charges for
returning the body and the sealed casket may be paid over and above the $800 allowance. In
cases where related medical and transportation expenses were incurred prior to death, the CE
should authorize payment.
2-0700-15 Termination of Employee Status
15. Termination of Employee Status. An additional sum of $200 is payable to the personal
representative of the decedent to reimburse the cost of terminating his or her status as a Federal
employee. A spouse is considered to be the personal representative unless incompetent. If no spouse
survives, the payment will be made to the administrator of the estate.
a. Pay Status. A personal representative is entitled to receive the $200 payment regardless of
whether the deceased was in pay status with the employing agency at the time of death. For
example, the personal representative of an employee who retired in 1973 and died of work-related
causes in 1978 would be entitled to the $200 payment.
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