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Printing - FECA-PT2 - National Association of Letter Carriers

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(a) Calculate the number <strong>of</strong> weeks worth <strong>of</strong> salary that the separation pay<br />

represents by dividing the total amount <strong>of</strong> separation pay by the salary used to compute<br />

it.<br />

(b) Suspend compensation payments for the number <strong>of</strong> weeks calculated, effective<br />

the date <strong>of</strong> separation or retirement, by 100% <strong>of</strong>fset for the number <strong>of</strong> weeks (not the<br />

amount <strong>of</strong> money) which the separation pay represents. (See paragraph e. below<br />

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

(3) The claimant should be advised that benefits for TTD will cease immediately because<br />

he or she has elected to receive severance or separation pay. The claimant should also be<br />

advised <strong>of</strong> the date on which the <strong>of</strong>fset will end.<br />

(4) Where the OWCP later discovers that a severance or separation payment was made<br />

for a period when compensation was paid, an overpayment must be declared and the usual<br />

due process rights given.<br />

e. Health Benefits (HB) and Optional Life Insurance(OLI).<br />

(1) For claimants with HB and/or OLI coverage, it may continue during the period <strong>of</strong><br />

severance or separation pay as long as the claimant remains eligible for compensation<br />

benefits but for the severance or separation pay and OWCP eventually makes the premium<br />

deductions for the time period covered by the severance or separation pay.<br />

(2) The agency will transfer the HB enrollment to OWCP effective the date that<br />

employment ceases. The claimant is responsible only for his or her own share <strong>of</strong> the<br />

premiums.<br />

(3) The Temporary Continuation <strong>of</strong> Coverage (TCC) program allows involuntarily<br />

separated employees to continue HB coverage for a short period. The TCC program will not<br />

allow a person who is entitled to compensation to enroll, and it will terminate the enrollment<br />

<strong>of</strong> a person entitled to these benefits.<br />

f. Claims for Additional Compensation.<br />

(1) If a schedule award ends during the period covered by the separation or severance<br />

payment, the employee may claim additional compensation for disability (see subparagraph<br />

(2) below). If the claimant was not receiving compensation for disability before the<br />

schedule award, he or she would not be entitled to receive compensation afterwards unless<br />

the medical condition had worsened such that it disabled him or her from the regular or<br />

limited duty job performed before separation. Should entitlement to further compensation<br />

be established, the employee would need to elect between OWCP and OPM retirement<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 547

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