Printing - FECA-PT2 - National Association of Letter Carriers

. Death Benefits. When compensation for death is payable under the FECA and fatal benefits
are payable under CSRS or FERS, the eligible survivor(s) must make an election between OWCP
benefits and OPM benefits. This includes the lump sum death benefit paid under the FERS, though
any beneficiary may concurrently receive benefits from OWCP and the Thrift Savings Fund.
The Employees' Compensation Appeals Board held in the case of Adeline Etzel, 21 ECAB 151, that
the statutory language concerning irrevocability of election was intended to apply only to those
cases where:
the disability or death of an employee has resulted from an injury sustained in civilian
employment by the United States and the Veterans Administration has held that the same
disability or death was caused by military service.
Therefore, except for those few cases where an election of veterans' benefits and FECA benefits is
required for the reason stated in Etzel, the OWCP considers any election of death benefits provided
by OWCP and OPM to be revocable. However, OPM considers an informed election of OWCP
benefits in lieu of OPM benefits to be irrevocable.
Where a survivor is entitled to both an annuity from OPM in his or her own right because of his or
her own Federal service, and an entitlement to death benefits under the FECA, no election is
required between these two benefits. Similarly, if the money paid by the OPM is paid to the
(former) employee and/or his or her estate, death benefits paid to the survivor would not
constitute a dual benefit (unless the OPM benefit were paid directly to the survivor in his or her
own right).
c. Communications with OPM's Office of Retirement Programs. All correspondence with OPM,
whether by form or narrative letter, shall contain the claimant's full name, OPM claim number, date
of birth and Social Security number. Where closed benefit periods are involved, they should be
shown clearly in terms of inclusive dates (e.g., "Compensation was paid from (date) through
(date), inclusive."). The type of FECA benefit (i.e., disability, schedule award, or death) must be
identified also. Where OPM so requests, the CE should provide a copy of any later formal decisions
or letters describing benefits to OPM.
d. Effect of Lump Sum Payment by OPM. 5 U.S.C. 8343a(b) provides that OPM shall offer
alternative forms of annuities for employees retiring under the Civil Service Retirement Act. These
forms include payment of a lump-sum credit plus payment of an actuarially reduced annuity. Since
the lump-sum credit is clearly part of the retirement benefit (and not simply a refund to the
employee of the contributions the employee made to CSRS), it is considered a dual benefit which is
prohibited under 5 U.S.C. 8116(a). Similarly, the lump-sum death benefit under FERS authorized
in 5 U.S.C. 8442 is also considered a prohibited dual benefit.
e. Social Security Act Benefits. Social Security benefits are payable concurrently with FECA
benefits, but the following restrictions apply:
(1) Social Security Act benefits paid for disability shall be reduced by the compensation
payable;
(2) In disability cases, FECA benefits will be reduced by the Social Security Act benefits
FECA-PT2 Printed: 06/08/2010 525