Printing - FECA-PT2 - National Association of Letter Carriers

RATE DATE FOR SCHEDULE AWARDS 01/10 10-04
2-0900-1 Purpose and Scope
1. Purpose and Scope. This chapter addresses determination of pay rates. It describes the steps in
establishing pay rates, including the statutory basis of payment; the effective date of the pay rate; the
elements of pay which are included in the pay rate, and those which are excluded; and how to establish
daily, weekly, and monthly pay rates. The chapter also includes a section on special determinations
(which are also addressed in the FECA Program Memoranda).
2-0900-2 Establishing a Pay Rate
2. Establishing a Pay Rate. This paragraph describes in general how to determine a pay rate and
where to find relevant information. While Forms CA-1, CA-2, CA-2a, CA-6, and CA-7 contain much useful
information, the Claims Examiner (CE) must also consider any narrative evidence in file. To set a pay
rate, the CE should take the following steps:
a. Determine the Basis of Payment Under 5 U.S.C. 8114. If the claimant worked the whole
year prior to injury (Form CA-7, section 9b, or Form CA-6, item 19) or would have done so but for
the injury (Form CA-7, section 9b, or Form CA-6, item 20), this determination is straightforward.
However, if not, the CE must investigate all sources of income to determine the claimant's
"average annual earnings" before proceeding further. See paragraphs 3 and 4 below.
b. Determine the Effective Date of Pay Rate. The CE must next decide whether to set the pay
rate as of the date of injury (or death), the date disability began, or the date of recurrence. The
pay rates on the date of injury and date disability began should be noted on Form CA-7, section 8,
or Form CA-6, item 18. For occupational disease claims where the claimant remains exposed to
the work factors claimed, the pay rate is the rate of pay effective the date of the medical
examination or treatment. If the claimant no longer remains exposed to the work factors claimed
and there has been a change in work duties, e.g., limited duty, then the date of last exposure is
used. See Patricia K. Cummings, 53 ECAB 623 (2002). Pay rates for newly reported recurrences
should be shown on Form CA-2a or CA-7, while pay rates for previously accepted recurrences
should be noted in the Compensation Management System. The CE should request verification of
the claimant’s pay rate if needed. See paragraph 5 below.
c. Consider Inclusions and Exclusions from Pay Rate. The nature of the increment must be
considered first. Commonly encountered increments are reported on Form CA-7, section 8, and
Form CA-6, item 18. If the increment can be included, the CE must determine how long it has
been received and the amount of money that has been paid. The CE should ask the employing
agency about commonly encountered increments of pay, such as Sunday pay and night differential.
See paragraphs 6-8 below.
d. Clarify Any Discrepancies. The employing agency or claimant may challenge, correct, or
expand on the evidence in the original reports with respect to terms of employment, amount of
pay, or types and amounts of increments.
(1) The CE must clarify any material discrepancies in the record before establishing a
pay rate for compensation purposes. This can be done by letter or by telephone call
FECA-PT2 Printed: 06/08/2010 459