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Printing - FECA-PT2 - National Association of Letter Carriers

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(3) The CE must advise the claimant <strong>of</strong> the full amount and terms <strong>of</strong> <strong>FECA</strong> entitlement<br />

and obtain an election in narrative form, between the two benefits.<br />

(4) If <strong>FECA</strong> benefits are elected and OWCP and DVA made concurrent payments before<br />

the election, the CE will determine the amount paid by the DVA and deduct this amount<br />

from future payments. The deduction should be made from each monthly payment using a<br />

method which will result in minimum financial hardship for the claimant, yet will recover the<br />

amount within a reasonable period.<br />

(5) If <strong>FECA</strong> benefits are elected and only the DVA made payments before the election,<br />

the CE will determine the amount paid by the DVA, deduct that amount from accrued OWCP<br />

payments, and pay the balance to the claimant.<br />

(6) If DVA benefits are elected, the CE should advise the DVA <strong>of</strong> the amount <strong>of</strong> any<br />

OWCP payment to be deducted from future DVA payments. The letter transmitting the<br />

election form to the DVA will reflect the amount <strong>of</strong> the OWCP payments, and the periods for<br />

which payments were made.<br />

(7) A copy <strong>of</strong> the election form must always be sent to the DVA. A narrative letter must<br />

also be written to the claimant, with a copy to the DVA, explaining the payments,<br />

deductions, or method <strong>of</strong> recovery <strong>of</strong> dual payments.<br />

(8) When OWCP benefits are terminated, a copy <strong>of</strong> the termination letter should be sent<br />

to the DVA.<br />

(9) OWCP and DVA have agreed that no funds will be transferred between agencies.<br />

2-1000-9 Military Reservists<br />

9. Military Reservists.<br />

a. Statutory Provisions. Before January 1, 1957, the benefits <strong>of</strong> the <strong>FECA</strong> were extended<br />

under certain circumstances to reservists <strong>of</strong> the armed forces and their beneficiaries where the<br />

injury or death <strong>of</strong> the reservist occurred in line <strong>of</strong> duty while on active duty. Public Law 81-881,<br />

approved August 1, 1956, terminated the <strong>FECA</strong> entitlement to these persons effective January 1,<br />

1957.<br />

Public Law 81-881 provided that the termination <strong>of</strong> coverage did not deprive any person <strong>of</strong> benefits<br />

to which there was eligibility by reason <strong>of</strong> disability or death occurring prior to January 1, 1957. It<br />

further provided that beneficiaries eligible for compensation for death occurring before January 1,<br />

1957, could continue to receive benefits under the <strong>FECA</strong> or they could elect benefits from the DVA<br />

under PL 81-881.<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 539

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