Printing - FECA-PT2 - National Association of Letter Carriers

certification clauses on the CA-1032 form provides persuasive evidence that he "knowingly"
understated his earnings and employment information");
John A. Graham, Docket No. 04-759 (issued September 30, 2004) (failure to fully report his
earnings to OWCP was found to be a "knowing omission" by appellant);
Daniel J. Baladez, Docket No. 01-439 (issued June 4, 2003) (employee knowingly failed to
report his earnings from his "hobby");
John Lombardo, Docket No. 01-814 (issued July 1, 2002) (employee knowingly failed to
provided information on his intermittent work activities);
Francisco Serrano, 40 ECAB 824 (1989) (the employee knowingly failed to provide
information on his employment in his brother's company);
Monroe E. Hartzog, 40 ECAB 322 (1988) (the employee knowingly failed to report his
employment in a family business selling mobile homes);
Harry S. Renkert, 39 ECAB 1142 (1988) (the employee knowingly failed to report his
employment as a fishing guide); and
Jesse Meredith, Jr., 38 ECAB 575 (1987) (the employee knowingly failed to report his
earnings as a substitute teacher).
(4) If it is determined that the omission or failure was not knowingly made, the
claimant's compensation entitlement during the period of the employment should be
determined on the basis of his or her actual earnings in accordance with the procedures set
forth in FECA PM 2-0814. If the claimant simply fails to make a report, benefits are
suspended as described in paragraph 10(b).
(5) Forfeiture may not be declared for failure to provide reports of dependents, since this
penalty applies only to reports of earnings.Also, criminal prosecution may result if deliberate
falsehood is employed in providing answers.
b. Advising the Claimant. When the evidence shows that the claimant had earnings and
knowingly did not report them on Form CA-1032, the Senior Claims Examiner should prepare a
formal decision declaring the compensation forfeit and an overpayment. The period of forfeiture is
as follows:
(1) If Form CA-1032 was issued, the forfeiture applies to the entire period covered by
the form (15 months or the period since the last report of earnings, whichever is less). The
entire period is forfeit even if the claimant had unreported earnings for only part of the
period.
(2) If Form CA-1032 was not issued for the period during which the claimant worked or
had earnings while receiving compensation, the period of forfeiture is limited to the period
that the claimant actually worked and did not report earnings. See Curtis D. Humphrey, 47
ECAB 553 (1996).
An overpayment decision should be released with the formal decision, finding the claimant
to be with fault in creating the overpayment, since the claimant failed to furnish information
which he or she should have known to be material.
FECA-PT2 Printed: 06/08/2010 389