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Printing - FECA-PT2 - National Association of Letter Carriers

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(1) OPM Annuity During Offset. There is no prohibition against receipt <strong>of</strong> an OPM<br />

annuity during the period that the third-party credit is being absorbed by OWCP. The<br />

claimant is not actually receiving compensation from OWCP during this period, so the<br />

payment <strong>of</strong> an annuity does not constitute a prohibited dual payment.<br />

(2) Election After Offset. Receipt <strong>of</strong> an annuity during the third-party credit period does<br />

not prejudice the claimant's rights. Thus, when the credit has been exhausted, the claimant<br />

should be given an opportunity to elect between <strong>FECA</strong> benefits and continuation <strong>of</strong> the OPM<br />

annuity.<br />

(3) As noted above, the OPM considers an informed election <strong>of</strong> OWCP death benefits (in<br />

lieu <strong>of</strong> OPM benefits) to be irrevocable. Thus, it is imperative that the claimant be informed<br />

fully <strong>of</strong> the available benefits, especially in cases involving possible third-party settlements.<br />

(a) To make an informed election, the claimant must be made aware <strong>of</strong> the<br />

opportunity to receive OPM survivor benefits while the third-party credit is being<br />

absorbed. If an election is made without this knowledge, the election will be<br />

considered null and void.<br />

(b) Inasmuch as the claimant is not required to make an election until after the<br />

third-party credit has been absorbed, the one-year time limitation <strong>of</strong> 5 U.S.C.<br />

8116(b) will not begin to run until the third-party credit has been exhausted.<br />

(4) Nonparticipants. Beneficiaries who do not participate in the third-party settlement<br />

are not affected by third-party credit <strong>of</strong>fsets. (See <strong>FECA</strong> ProM No. 125.)<br />

f. Refunds When Dual Benefits Have Been Paid.<br />

(1) Refund Action When Repayment is Due OPM. A refund due OPM may be paid from<br />

accrued and/or continuing compensation, provided that the amount <strong>of</strong> the debt is at least<br />

$25.<br />

(a) If there is an accrued amount <strong>of</strong> compensation payable by OWCP, OPM is not<br />

required to provide certification <strong>of</strong> due process before recovering the debt from the<br />

accrued OWCP benefits. Upon receipt <strong>of</strong> notification from OPM <strong>of</strong> the fact and<br />

amount <strong>of</strong> the debt, the district <strong>of</strong>fice will deduct the total amount <strong>of</strong> indebtedness<br />

from the accrued compensation and forward that amount to OPM.<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 530

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