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Printing - FECA-PT2 - National Association of Letter Carriers

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(1) A statement as to which benefit (severance or separation pay) the employee is to<br />

receive. If any doubt exists, a copy <strong>of</strong> the pertinent law (or a citation to it) should be sent.<br />

(2) A statement as to the period and/or total amount <strong>of</strong> payments, and the date <strong>of</strong><br />

retirement or separation.<br />

(3) A copy <strong>of</strong> the claimant's acceptance <strong>of</strong> the <strong>of</strong>fer <strong>of</strong> separation or severance pay (if<br />

applicable), and a copy <strong>of</strong> the retirement or separation papers.<br />

c. Entitlement. The kinds <strong>of</strong> benefits allowed and prohibited are identical for separation and<br />

severance pay.<br />

(1) Compensation for temporary total disability (TTD) may not be paid for the period<br />

covered by severance or separation pay. For example, if a claimant receives 13 weeks<br />

worth <strong>of</strong> severance pay, compensation is not payable until the fourteenth week.<br />

(2) Compensation for LWEC may be paid concurrently with severance or separation pay,<br />

since the pay is based on the employee's salary, not the payments for LWEC. If an<br />

employee who is receiving compensation for LWEC receives severance or separation pay<br />

and then retires, an election <strong>of</strong> benefits will be required at the time <strong>of</strong> retirement.<br />

(3) Compensation for a schedule award may be paid concurrently with severance or<br />

separation pay.<br />

(4) Medical benefits are payable concurrently with severance and separation pay.<br />

d. Methods <strong>of</strong> Offset. All severance payments are based on a specified number <strong>of</strong> weeks <strong>of</strong><br />

pay. Some separation payments are based on a specific number <strong>of</strong> weeks <strong>of</strong> pay, while others are<br />

capped at a specified amount <strong>of</strong> money. However, in order to be equitable to all claimants, <strong>of</strong>fsets<br />

for both types <strong>of</strong> payments should be computed in the same manner regardless <strong>of</strong> the way the<br />

employing agency has <strong>of</strong>fered separation pay. (Lynne M. Schaack, Docket No. 05-695, issued<br />

November 9, 2005.)<br />

(1) Where the severance or separation payment is based on weeks <strong>of</strong> pay, the CE should<br />

suspend compensation payments for the period in question, effective the date <strong>of</strong> separation<br />

or retirement, by 100% <strong>of</strong>fset for the number <strong>of</strong> weeks (not the amount <strong>of</strong> money)<br />

which the severance or separation pay represents. (See paragraph e. below concerning<br />

health benefits and optional life insurance.)<br />

(2) Where the separation payment is based on an amount <strong>of</strong> money, the CE should:<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 546

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