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considered partially disabled and is entitled to compensation for LWEC. (1) Section 8115 of the FECA provides that the wage-earning capacity is determined by the employee's actual wages if they fairly and reasonably represent his or her wage-earning capacity. If they do not, or if the employee has no actual earnings, the OWCP may reasonably determine the employee's wage-earning capacity giving due consideration to the factors enumerated in section 8115. (For further discussion of wage-earning capacity and the information needed in making such determination, see FECA PM 2-0814.) (2) Section 8106 of the FECA provides that the partially disabled employee shall be paid compensation equal to 66 2/3 (or 75) percent of the difference between the employee's pay and his or her wage-earning capacity. To satisfy this requirement, compensation for partial disability is computed using the formula described in paragraph 15c below. b. Shadrick Formula. The method for computing the compensation payable where an employee has actual earnings or a wage-earning capacity is called the Shadrick formula, as it reflects the principles set forth in Albert C. Shadrick, 5 ECAB 376. In that decision the ECAB found that section 5 U.S.C. 8106(a) does not state that compensation is to be based on the difference between the employee's earnings at the time of injury and whatever variable dollar income the employee may have in the future. Rather, it is to be based upon the loss of capacity to earn wages. The ECAB stated: Although capacity to earn and not wages received is the proper test under the law, an employee's actual wages may constitute compelling evidence of his capacity to earn and in a proper case may be used as a yardstick in determining an injured employee's diminished earning capacity. However, in applying this standard, the ECAB held: ...wages received 2, 5 or 10 years after an employee has sustained an injury and during which period changes in business conditions have caused wages to double due to a business boom or to be cut in half due to a depression cannot be used as a conclusive factor in determining a claimant's diminished wage-earning capacity after he has been injured. The ECAB concluded, "Actual dollar earnings received several years after injury may be used to determine wage-earning capacity only after they have been converted into terms of actual dollar earnings received at the time of injury." c. Computation. The Shadrick formula is as follows: (1) Pay rate when: (a) injured ( ) (b) disability began ( ) (c) compensable disability recurred. ( ) . . . . . . . . . . . $_________ (2) Current pay rate for job and step when injured . . . . . . $_________ FECA-PT2 Printed: 06/08/2010 500
(3) ( ) (a) is capable of earning ( ) (b) has actual earnings of . . . . . . . . . . . . . . . . . . $_________ (4) WEC [item (3) divided by item (2)] . . . . . . . . . . . . . . $________% (5) WEC [item (4) times item (1)]. . . . . . . . . . . . . . . . . . . $_________ (6) Loss of WEC [item (1) minus item (5)] . . . . . . . . . . . . $_________ (7) Compensation [item (6) times ( ) 2/3 or ( ) 3/4] . . . . . $_________ (8) CPI (expressed in decimal terms) (a) Item (7) times 1. * = $________ (rounded) (b) Item (8a) times 1. * = $________ (rounded) (c) Item (8b) times 1. * = $________ (rounded) The comparison of wage rates (i.e., the claimant's actual earnings or the salary of the selected position and the "current" salary of the job held at time of injury) need not be made as of the beginning of the period of disability (but see subparagraph f(2) below concerning rural letter carriers). Any convenient date may be chosen for this comparison, as long as the two wage rates are in effect on the same date used for the comparison. In calculating LWEC, the direct comparison of wages in lines 2 and 3 of the formula above is always based on the current salary of the job when injured, not that held at the time disability began or the date disability recurred. d. Additional Elements of Pay. When the job held at injury included such elements of pay as night differential, which would also be included in the pay rate for compensation purposes, the additional pay must be reflected in the current pay for the same job. This adjustment should be made by increasing the current base pay by the same percentage as the original base pay was increased by the additional pay elements. For example: The claimant earned $200 per week base pay at injury and his night differential was $14.82 per week, or 7.41 percent of the base pay, for a total pay rate of $214.82. The current base pay for the same job is $300 per week. The CE should increase the current base pay for that job, $300 per week, by 7.41 percent, or $22.23, resulting in $322.23 as current pay for the same job to be used in the Shadrick computation. e. Intermittent or Sporadic Earnings. Where the claimant has actual earnings which do not fairly and reasonably represent a wage-earning capacity, and a wage-earning capacity cannot be reasonably determined through application of section 8115, there is no basis for a finding that the claimant is permanently partially disabled. However, while for practical purposes the employee will continue to be considered totally disabled, compensation payable for the period during which the employee had earnings should be reduced to FECA-PT2 Printed: 06/08/2010 501
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LIST OF CHAPTERS PART 2 - CLAIMS (I
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which may be useful to the CE. b. C
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d. Continuation of Pay. An employee
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o. Review of OWCP Decisions. Under
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2-0300 COMMUNICATIONS TABLE OF CONT
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2-0300-4 Regular Correspondence 4.R
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(b) Formal Decision. If a formal de
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If the information requested cannot
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eferred to the NOO for adjudication
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2-0400-6 Requesting Files 6. Reques
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the file. This process should mainl
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2-0400-10 Case Transfers and Loans
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2-0401 AUTOMATED SYSTEM SUPPORT FOR
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names and addresses is optional. By
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PW: Entitled to payment on periodic
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AM/C1: Condition accepted. Up to $1
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full appeal rights, and the adjudic
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B Both A Aggravation 2-0402 SECURIT
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a. Signatures. The CE must review c
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(a) The particular issues about whi
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c. Review by DD. Upon receipt of th
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disposition, a report, enclosing th
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2-0500 CONFERENCING TABLE OF CONTEN
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necessary to identify the official(
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2-0500-6 Senior CE Actions 6. Senio
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2-0500-9 Due Process 9. Due Process
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This chapter outlines the major ste
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(d) Been notified that OWCP will pr
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2-0600-4 Initial Actions 4. Initial
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2-0600-5 Nurse Services 5. Nurse Se
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assess the claimant's environment a
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(4) Timely responses to telephone c
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for guidance in composing such ques
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(4) Only if the CE has taken these
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(1) RS Actions. If the claimant agr
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(3) Absent such a recovery, the OWC
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(c) After any training or other pre
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under way and the CE determines tha
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2-0600 Exhibit 1: Sample Letter to
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2-0600 Exhibit 3: Example of Letter
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2-0600 Exhibit 5: Planning Chart fo
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period, and each new recurrence. a.
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a. QCM Screen. When the QCM screen
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(c) Confirmation of Data. After ent
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(1) NFN*--Referred to Field Nurse.
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2-0601-6 Effect of RTW on QCM Statu
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2-0601 Exhibit 1: Disability Tracki
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SRE Referred to SrCE for Conference
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21. FECA Death Gratuity 4/10 10-06
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. Claimant. The claimant is respons
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2-0700-6 Adjudication 6. Adjudicati
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(3) If the parties lived apart for
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(3) If the child does not begin pos
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Compensation was terminated effecti
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. Dependency Criteria. The test of
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(3) Proof of physical or mental inc
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The CE should prepare a memorandum
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. Employee Status. The $200 payment
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(b) Form CA-1617 should be released
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2-0700-20 Gratuity 20. Gratuity fro
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2-0700 Exhibit 1: Percentages of En
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2-0800-2 Definitions 2. Definitions
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. Employing Agency. The FECA requir
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claimant, the CE should send a copy
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(3) The case must be coded as withd
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entire group of cases must be adjud
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2-0800-10 Investigation 10. Investi
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2-0800-13 Affirmative Defense 13. A
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2-0801 TIME TABLE OF CONTENTS Parag
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5 U.S.C. 8122 on the ground that no
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(4) If a claim is not received by O
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(1) Disappearance During a Period o
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2-0802 CIVIL EMPLOYEE TABLE OF CONT
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2-0802-1 Purpose and Scope 1. Purpo
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(1) The precise time when the worke
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2-0802-8 Contract Job Cleaners Used
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2-0802-13 Volunteer Workers with th
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(1) Whether, prior to the transfer
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. The pay rate for compensation pur
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2-0802-24 U.S. Park Police and Secr
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a participant or crew leader servin
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2-0803 FACT OF INJURY TABLE OF CONT
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2-0803-4 Development of Factual Evi
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2-0804 PERFORMANCE OF DUTY TABLE OF
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time before or after the end of the
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(a) A diagram showing the boundarie
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d. Workers in a Travel Status. (1)
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2-0804-6 To and From Work 6. To and
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(a) The reason the employee was req
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(1) At the time of the injury, the
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(1) Martha G. List, 26 ECAB 200. Em
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duty, the CE may approve the case.
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action taken; and (4) Statements fr
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2-0804-14 Statutory Exclusions 14.
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would justify such disobedience. (c
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(2) The official superior should al
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c. Development. (1) It is the CE's
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such as soliciting new members or c
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c. Performance Ratings. The Board r
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Where an employee asserts that emot
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The Board noted that Cannon was unl
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Since both cases involve procedures
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Ashberry's disability was not compe
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no longer be considered so in light
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2-0804-18 Employing Agency Physical
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f. This matter was initially addres
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compensation would be payable for t
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limited to the period of work-relat
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(6) Certain other kinds of cases re
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(2) A nurse becomes disabled by pul
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the body originally injured is term
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2-0806 OCCUPATIONAL ILLNESS TABLE O
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the following steps, depending on w
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(4) Exposure to and Identification
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While records of past medical treat
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the medical connection between lift
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(b) The medical evidence presented
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2-080 Exhibit 2: Sample Letter to C
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TITLE _____________________________
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eason, you should call or write to
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9. [FREE FLOW IF DESIRED] We may wr
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If you do not understand any part o
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stressful situations in your person
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TITLE FECA-PT2 Printed: 06/08/2010
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I am writing in reference to your c
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We may write directly to a physicia
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2-0806 Exhibit 20: Sample Questions
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TA Amputation TB Back strain TC Con
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(D )Other Disability, Occupational
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a. Traumatic Injury. If an air traf
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2-0807-6 Period of Entitlement 6. P
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d. Return to Duty. The injured empl
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f. The injury was not reported on a
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W = Total number weeks worked P/W =
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COP is paid for the entire period o
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(c) When the physician's report ind
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(a) Assign or detail the employee t
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. Monitoring the Claim. (1) If Form
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(4) If conflicting information appe
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a. Permanent Total Disability (PTD)
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(1) Prior to December 7, 1940. No p
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(2) Impairment due to amputation is
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. Claims for Increased Schedule Awa
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compensation for temporary total di
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Medical. 2-0809-2 Introduction 2. I
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CE is ready to evaluate the evidenc
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the physician with a complete pictu
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(3) Personal habits such as smoking
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games or operating a construction b
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Jane Doe, date of birth 04/06/1965,
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elated to the employee’s duties;
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16. Physical Therapy 04/01 01-06 03
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evaluating the merits of medical re
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situation where ten days earlier th
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each opinion. The value of the evid
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manipulation of the body. They incl
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. The DMA's performance of these fu
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evidence from physicians who have n
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e. In cases involving a preexisting
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(1) The consultant should be asked
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value). Based on the results of thi
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However, if the impartial specialis
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2-0810-13 Exclusion of Medical Evid
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Leanna Garlington, 37 ECAB 849). Re
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(d) A suggested supplier, if any. (
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need for further treatment as detai
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2-0810-18 Transfer of Medical Care
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2-0810 Exhibit 1: Information from
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Dear CLAIMANT NAME: We need the fol
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2-0810 Exhibit 3: General Guideline
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2-0810 Exhibit 5: Sample Paragraph
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2-0810 Exhibit 7: Letter of Warning
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In addition, a primary goal of case
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(3) Release Form CA-1008 and Pamphl
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a. Where disability is present, the
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f. If the evidence obtained as a re
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eligible for disability benefits. A
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f. Physician's estimate of the date
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2-0812 PERIODIC REVIEW OF DISABILIT
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determine the status of dependents
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whether disability is related to th
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earnings or activity is in question
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eferred to the Office of Inspector
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. Suspension of Compensation. OWCP
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certification clauses on the CA-103
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SI Payment/Entitlement Suspension i
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with the return to work effort. CFF
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should be placed in a PN status. OP
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force. 10. If the business has had
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I am writing in follow up to the Fo
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2-0812 Exhibit 6 - Periodic Entitle
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Service. On 03/14/2003, the claiman
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Authorized Medical Care for Substan
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a. OPM's regulations on retention r
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d. To identify cases for early inte
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2-0813-7 Communication Among the CE
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d. Cooperative Agreement. The title
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ehabilitation process. 2-0813-11 Fa
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(2) To reduce compensation in this
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The specificity of the reasons offe
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in conjunction with graded conditio
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(1) Where the claimant cannot perfo
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2-0813 Exhibit 2: Non-Cooperation W
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2-0814 REEMPLOYMENT: DETERMINING WA
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Exhibits 1. Sample Letter to Claima
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. Preliminary Assessment of Positio
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(b) If the attending physician cont
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(3) The employing agency will be as
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e. Payment/Reimbursement of Relocat
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have no appeal rights attached. c.
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were not reported to OWCP or were o
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(3) If the employee can work only p
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this instance the CE will need to e
Page 449 and 450: d. Unacceptable Reasons for Abandon
Page 451 and 452: closure of an installation, cessati
Page 453 and 454: Code, and returns to duty under ret
Page 455 and 456: If you receive an increase in pay o
Page 457 and 458: 2-0814 Exhibit 3: Sample Letter To
Page 459 and 460: RATE DATE FOR SCHEDULE AWARDS 01/10
Page 461 and 462: (1) Kinds of Appointments. The Post
Page 463 and 464: year, in the teaching profession, w
Page 465 and 466: (b) Census enumerators; (c) Casual
Page 467 and 468: The CE should consider these factor
Page 469 and 470: The greatest of these pay rates wil
Page 471 and 472: the Department of Veterans Affairs
Page 473 and 474: degree of expense, hardship, and in
Page 475 and 476: (2) Basic bi-weekly pay x premium p
Page 477 and 478: 2-0900-9 Computing Daily Pay Rate 9
Page 479 and 480: 2-0900-11 Computing Monthly Pay Rat
Page 481 and 482: The salary for these employees may
Page 483 and 484: 2-0901 COMPUTING COMPENSATION TABLE
Page 485 and 486: 2-0901-2 Related Topics 2. Related
Page 487 and 488: (4) A GS-12 CE or designated CE may
Page 489 and 490: 2-0901-4 Factors in Computing Compe
Page 491 and 492: (3) For schedule award payments, th
Page 493 and 494: (4) Compensation payable for less t
Page 495 and 496: 2-0901-9 Special Determinations 9.
Page 497 and 498: 2-0901-11 Maximum Compensation 11.
Page 499: payment. a. Beginning Date. Schedul
Page 503 and 504: automatic pay increases. For exampl
Page 505 and 506: claimant to a higher pay rate under
Page 507 and 508: (a) the beneficiary's maintenance,
Page 509 and 510: Letter CA-1208 to the claimant, wit
Page 511 and 512: 01/01/76 4.4 10/10/76 18.96-28.44 9
Page 513 and 514: 01/02/2000 44.98-67.47 224.91-337.3
Page 515 and 516: 10/07/79 144.56 722.78 - (2,891.12)
Page 517 and 518: *Calendar Days 01/01/2001 3.3 365 1
Page 519 and 520: PERCENTAGE TABLE OF SCHEDULE AWARDS
Page 521 and 522: 2-0901 Exhibit 6: Activity Codes AC
Page 523 and 524: 12. Tennessee Valley Authority 02/9
Page 525 and 526: . Death Benefits. When compensation
Page 527 and 528: (3) Certification. The CE should ha
Page 529 and 530: elected, refer the case to the inac
Page 531 and 532: (b) If there is accrued compensatio
Page 533 and 534: Centers, and DVA Hospitals. If the
Page 535 and 536: (b) The claimant may be entitled to
Page 537 and 538: d. Obtaining Elections--Educational
Page 539 and 540: (3) The CE must advise the claimant
Page 541 and 542: c. Injuries On and After September
Page 543 and 544: Based on information contained in t
Page 545 and 546: 2-1000-16 Benefits for Judicial Off
Page 547 and 548: (a) Calculate the number of weeks w
Page 549 and 550: I. Claimants must elect between Fed
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2-1000 Exhibit 2: OPM Contact List
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When a third party is or may be leg
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(6) Ltr. CA-1109, Authorization to
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7. Administration of Third Party Ca
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(3) If not accurate or complete, th
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the DCE, is urgent should be sent i
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(3) Provide the claimant or attorne
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for a course of action. All formal
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In any other case, where a judgment
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(b) 5 percent of the total to be al
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To determine the amount to be liste
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(6) Section 8133(a) of the FECA pro
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(2) The initial demand letter in an
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of the employee. The USPS cannot re
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not be referred to the FEEWC until
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FECA-PT2 Printed: 06/08/2010 581
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a. Under 5 U.S.C. § 8127(b) and in
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. Should an application be submitte
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and the requested fee is reduced du
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2-1200 Exhibit 1: Sample Formal Dec
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2-1300 LUMP SUM PAYMENTS TABLE OF C
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2-1300-3 Requests for Lump-Sum Paym
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2-1300-4 Calculating Lump-Sum Sched
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2-1300 Exhibit 2: Sample Appealable
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3. REVIEW BY THE EMPLOYEES' COMPENS
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SIGNATURE _________________________
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We have received your request for a
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2-1400 DISALLOWANCES TABLE OF CONTE
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2-1400-1 Purpose and Scope Purpose
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a. Initial Disallowances. Such disa
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(1) Failure to Appear for Medical A
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(1) The name and location of the em
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injury caused no disability for wor
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(3) A specific service which the cl
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2-1400-7 How to Issue Pre-Terminati
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(a) The case is being referred beca
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(a) Compensation is being terminate
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. Source of Advice. District office
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usual rate, i.e., 75 percent of the
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objective findings to support your
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2-1400 Exhibit 3: Sample Notice of
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2-1400 Exhibit 4: Sample Letter Con
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2-1400 Exhibit 6: Sample Notice of
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2-1400 Exhibit 8: Sample Letter Con
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2-1400 Exhibit 10: Sample Letter De
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2-1500 RECURRENCES TABLE OF CONTENT
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(d) Closure of a base or other faci
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(1) The medical evidence needed to
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c. Case Management. The CE should c
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emains the same regardless of wheth
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2-1600 REVIEW PROCESS TABLE OF CONT
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c. Formal Decision. Chapter 2-1400
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the request. H&R will acknowledge r
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spouse or child prevents his or her
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OWCP shall pay fees requested by wi
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2-1601-9 Cases Returned from H&R 9.
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2-1601 Exhibit 2: Sample Letters Ac
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Exhibit 3, page 1 of 3: Hearing Not
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Exhibit 3, page 3 of 3: Hearing Ins
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2-1601 Exhibit 5: Request for Comme
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2-1602 RECONSIDERATIONS TABLE OF CO
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2-1602-2 Policy 2. Policy. The foll
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d. Decision. An untimely applicatio
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percentage of the award under the S
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(2) The cover letter to the agency
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2-1602 Exhibit 1: Sample Letter Ret
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Dear CLAIMANT NAME: We have reviewe
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2-1602 Exhibit 5: Sample Compensati
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2-1603 APPEALS TABLE OF CONTENTS Pa
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d. Timeliness of Filing. A person r
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2-1603-6 Cases Returned to District
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2-1700 SPECIAL ACT CASES TABLE OF C
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2-1700-4 Peace Corps 4. Peace Corps
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(2) Staff Spouses. (a) The spouses
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Compensation for loss of wages may
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(3) Return from Service Abroad. d.
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Section 5 U.S.C. 8101(4), which pro
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(1)While at a Job Corps Center, an
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(1)Enrollees are required to report
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coverage under 5 U.S.C. 8101. b. Co
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2-1800-2 Authority 2. Authority. Ho
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determined by the type of vehicle,
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greatest current fair market value
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Such certification from an architec
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over $10,000, and that amount must
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2-1800-7 Housing Modifications for
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send an approval letter along with
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By signing this agreement, all part
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By signing this agreement, all part
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Memorandum of Agreement - Modificat
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Memorandum of Agreement - Housing M
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