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Printing - FECA-PT2 - National Association of Letter Carriers

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Where more than eight hours are worked per day, actual hours worked shall be used in the<br />

computation.<br />

If the employing agency reports an additional allowance for subsistence or quarters, or if<br />

premium pay is received because <strong>of</strong> standby status, the amount(s) should be included in<br />

the pay rate.<br />

2-0901-10 Minimum Compensation<br />

10. Minimum Compensation. This paragraph discusses the effect <strong>of</strong> minimum rates on compensation<br />

payments. This rate was established by the 1966 amendments as 75 percent <strong>of</strong> the lowest pay for a<br />

GS-02 employee. This figure, which changes with the Federal pay scale, is compared to the compensation<br />

rate in a disability case, and to the pay rate in a death case. The rules for applying the minimum in each<br />

case are stated below. Minimums do not include locality pay, and they do not apply to Job Corps or<br />

foreign national claims.<br />

Exhibit 1 can be used to determine if a new minimum (MIN) is applicable. Further information about<br />

MINs may be found in <strong>FECA</strong> PM 5-302.5. The ACPS automatically calculates the minimum rate when<br />

payments are entered, except for Job Corps and foreign national claims, which require entry <strong>of</strong> an activity<br />

code to prevent overpayments (see Exhibit 6).<br />

a. Disability. In a disability case, the CE or BPC compares the minimum in effect during the<br />

period <strong>of</strong> entitlement to the claimant's weekly compensation. If the weekly pay is more than the<br />

MIN, but the weekly pay times the applicable compensation rate (66 2/3 or 75 percent) would be<br />

less than the MIN, the claimant receives the MIN instead <strong>of</strong> the calculated compensation. If the<br />

weekly pay is less than the MIN, the claimant receives 100 percent <strong>of</strong> the pay rate, instead <strong>of</strong> 66<br />

2/3 or 75 percent.<br />

The new MIN is always compared to the amount <strong>of</strong> compensation, including CPIs. Because CPIs<br />

are applied to the compensation, compensation for disability usually exceeds the MIN after the first<br />

year.<br />

b. Death. In a death case, the CE or BPC compares the current MIN to the deceased<br />

employee's pay rate. If the pay rate is less than the minimum, the MIN is used as a basis for<br />

computing each beneficiary's entitlement. If the pay rate is greater than MIN, the pay rate is used<br />

as a basis for compensation payment.<br />

Compensation to a beneficiary may not exceed the deceased's monthly pay rate for compensation<br />

purposes (except by the addition <strong>of</strong> CPIs effective September 7, 1974). Therefore, if the<br />

compensation rate times a new MIN would be more than 100 percent <strong>of</strong> the pay rate, the new MIN<br />

is not applied, and the basic compensation becomes 100 percent <strong>of</strong> the pay rate.<br />

c. Schedule Awards. No minimum provision applies to schedule awards.<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 496

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