Printing - FECA-PT2 - National Association of Letter Carriers

(2) Release of Form Letter CA-1657 (or equivalent) satisfies the requirement to provide
a 30-day pre-reduction notice. If no response is received, or if the claimant does not begin
or resume a good faith effort, compensation will be reduced to zero under 5 U.S.C. 8113(b)
and 20 C.F.R. §10.124(f), which states in part that "It will be assumed...in the absence of
evidence to the contrary, that the vocational rehabilitation effort would have resulted in a
return to work with no loss of wage-earning capacity...."
In Linda M. McCormick, 44 ECAB 958, the Board addressed the claimant's failure to
participate in the early stages of vocational rehabilitation. The Board held that in the
absence of "probative, rationalized medical evidence which explains why with vocational
rehabilitation appellant could not return [to] some work activities", the Office properly
reduced the claimant's compensation to zero. This is the correct course of action unless the
file contains convincing prima facie medical evidence establishing that the claimant cannot
return to full-time work when the non-cooperation occurs.
(3) When compensation is reduced to zero, contributions for the claimant's health
benefits (HB) and optional life insurance (OLI) premiums will stop. HB coverage should be
terminated by completion of a Form SF-2810. The HB enrollment should be retained in the
case file and not transferred to OPM or to the employing agency unless they request it.
(4) If the claimant later complies with the Office's direction to undergo vocational
rehabilitation after a formal decision has been issued reducing compensation under Section
8113(b), compensation should be reinstated prospectively at the previous rate. HB/OLI
coverage is to be reinstated retroactively to the date of termination and the premiums due
for the period of reduction should be deducted from the continuing compensation beginning
with the date of reinstatement.
The effective date of reinstatement of the previous rate of compensation should be the date
the claimant indicates in writing his or her intent to comply, as long as actual compliance is
confirmed by the RS or RC. Compliance is shown by actions such as undergoing interviews
or testing.
(5) If the claimant elects OPM benefits in lieu of cooperating with rehabilitation efforts,
the CE, RS and RC should not delay or discourage this choice. If the claimant elects
benefits from OPM in lieu of complying with the Office's instructions, the final decision
reducing compensation to zero must still be issued.
b. Refusing or Impeding OWCP-Approved Training Program. Examples of such situations would
include a claimant's failure to attend classes or to apply appropriate effort to succeed in such
classes or failure to undergo training after a training program has been approved.
(1) The CE should release a letter advising the claimant of the provisions of 5 U.S.C.
8113(b) and direct the claimant to apply for, participate in, or resume participation in the
program. The claimant should be directed to comply or provide a written explanation of
failure to comply within 30 days or the provisions of Section 8113(b) will be applied (see
Exhibit 3). Release of this letter satisfies the requirement to provide pre-reduction notice.
FECA-PT2 Printed: 06/08/2010 416