Printing - FECA-PT2 - National Association of Letter Carriers

(2) To reduce compensation in this situation under the provisions of Section 8113(b),
the Office must direct the claimant to apply for or undergo the training, find that the
claimant's failure was without good cause, and find that cooperation with the training would
probably have substantially increased the claimant's earnings.
If these criteria are met, the CE should act to reduce compensation prospectively to reflect
the claimant's earning capacity (that is, the salary level of the job which was the goal of
training, as specified in the vocational rehabilitation plan), and issue a formal decision.
(3) 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. 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 attending school on a
regular basis.
(4) 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. Because the claimant may
subsequently elect FECA benefits retroactively, however, it is necessary to establish the
level of compensation entitlement in accordance with 5 U.S.C. 8113 so that any future
retroactive compensation will not be paid in error at the rate for total disability due to failure
to follow through on the current sanction action.
c. Refusing or Impeding Placement Effort. When placement efforts with a new employer are
to be made, the CE should advise the claimant that OWCP will provide 90 days of placement
assistance and that his or her LWEC probably will be based on the job for which placement is being
attempted. (The 90 days is calculated from the date of the OWCP-3 approving placement with new
employer.)
(1) If the claimant does not participate or cooperate in placement activities, or ceases
participation once they have begun, the CE may (but is not required to) issue a warning
letter citing 5 U.S.C. 8113. (See Exhibit 4 for a sample letter). However, the CE should
ascertain that the claimant has been advised of his or her wage-earning capacity (including
the specific dollar amount) and the expectation that he or she would return to work in a job
similar to the one identified (see Exhibit 2 in FECA PM Chapter 2-600). If such a letter has
not been released, the claimant should be so notified.
(2) At the end of the 90-day period of entitlement to placement assistance (with a
30-day extension at the RS's discretion if the claimant is cooperating), the RC should be
asked (through the RS) to submit a final report and list the jobs for which placement was
being attempted which were found to be within the claimant's restrictions and abilities. This
action should be taken whether or not the claimant resumes participation or cooperation in
placement efforts.
The CE should then prepare a pre-reduction notice determining the claimant's wage-earning
capacity prospectively under 5 U.S.C. 8115 based on one of these jobs. Such action should
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