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Printing - FECA-PT2 - National Association of Letter Carriers

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2-0901-11 Maximum Compensation<br />

11. Maximum Compensation. This paragraph discusses the effect <strong>of</strong> maximum rates on compensation<br />

payments. The 1966 amendments provided that compensation could not exceed 75 percent <strong>of</strong> the<br />

monthly salary <strong>of</strong> a GS-15, step 10. This amount does not include allowances for an attendant, burial<br />

costs, medical expenses, or other additional allowances. Maximums do not include locality pay.<br />

Exhibit 2 can be used to determine if a new maximum (MAX) is applicable. Further information about<br />

MAXs may be found in <strong>FECA</strong> PM 5-302.6. The ACPS automatically calculates the maximum rate when<br />

payments are entered.<br />

a. Disability. If a claimant's weekly compensation rate is greater than the MAX, compensation<br />

is paid at the maximum amount. When a new maximum is established, it is compared to the<br />

amount <strong>of</strong> compensation in each case at MAX. If the compensation is greater than the old MAX but<br />

less than the new, compensation may be paid at the regular rate. Adjustments are made<br />

retroactive to the effective date <strong>of</strong> the new MAX, which is generally the date <strong>of</strong> an increase in the<br />

Federal pay scale.<br />

b. Death. To determine whether a MAX applies in a death case, the combined compensation<br />

rate for all entitled beneficiaries must be computed and multiplied by the decedent's salary. All<br />

applicable cost-<strong>of</strong>-living increases must be added. If the total is greater than MAX, each<br />

beneficiary's entitlement is computed as a proportionate share <strong>of</strong> the MAX.<br />

When a new maximum applies, each case previously paid at MAX must be recomputed to<br />

determine the new entitlement. If the recomputed total entitlement for all beneficiaries is less than<br />

the new MAX, each beneficiary may receive the regular entitlement. If not, a proportional share <strong>of</strong><br />

the MAX is allotted to each beneficiary.<br />

c. Schedule Award. Schedule award payments are limited by the MAX, and the procedures<br />

for disability compensation apply.<br />

2-0901-12 Consumer Price Index (CPI) Adjustments<br />

12. Consumer Price Index (CPI) Adjustments. This paragraph describes the periodic adjustments to<br />

compensation payments which are made to reflect increases in the cost <strong>of</strong> living. See Exhibit 3 for a list<br />

<strong>of</strong> these increases. CPIs are automatically calculated by ACPS.<br />

a. Entitlement. The 1966 Amendments to the <strong>FECA</strong> provided for increases in compensation<br />

benefits based upon the Consumer Price Index. Under Section 5 U.S.C. 8146a, increases are<br />

granted where the disability (i.e., compensable disability or the date when an injured employee<br />

stopped work on account <strong>of</strong> the injury) occurred more than one year before the effective date <strong>of</strong><br />

the increase.<br />

(1) The disability need not have been continuous for the whole year before the increase.<br />

The use <strong>of</strong> a higher (recurrent) pay rate precludes addition <strong>of</strong> a CPI increase within one year<br />

following the application <strong>of</strong> such a pay rate.<br />

(2) The increase is applicable to death cases where the compensable disability occurred<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 497

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