Printing - FECA-PT2 - National Association of Letter Carriers

compensation benefits. Rather than declare all compensation forfeit, CP/FEEWC may also
suspend compensation benefits until the beneficiary complies with the request.
When FEEWC believes that sanctions for failure to prosecute an action are appropriate, FEEWC
should prepare a referral memorandum to the owning DO which includes suggested findings of fact
and statements of reasons for the imposition of sanctions. The memorandum from SOL will also
make a specific recommendation whether suspension or forfeiture is the appropriate sanction in the
particular case, and should also contain an analysis of the expiration date of the statute of
limitations for the filing of the underlying third party action.
e. Release of Obligation to Prosecute an Action. In addressing requests from claimants and/or
their attorneys, FEEWC will use the same procedures set forth above in 2-1100.7.a.(6) for the
DCEs.
f. Notice of Settlement or Judgment. FEEWC should notify the DCE of all settlements and
judgments. If a settlement or judgment is expected to result in a surplus, SOL will notify the DCE
that payment of continuing compensation benefits should therefore be suspended pending
exhaustion of the surplus.
g. Approval of the SOR. Once the signed SOR is submitted, SOL will review it for accuracy and
compliance with the FECA and these procedures. If the SOR is signed and filled out completely and
correctly, it should be approved as submitted. If the claimant or the attorney does not sign the
SOR, or if the SOR must be revised or redrafted, it should be returned for a proper signature.
However, if a check is received, even if the check is not accompanied by a SOR, or by an incorrect
SOR, the check should be forwarded to OWCP. Upon approval of the SOR, it will be forwarded to
the claimant or his/her attorney, with a request that the government’s refund, if not already
received, be submitted within thirty days of the receipt of the letter. Also, an approved copy of the
SOR is forwarded to the owning DO. Detailed instructions for completing a SOR are contained in 20
C.F.R. § 10.711 and section 2-1100.9 of this subchapter. In case of disputed ssues, see subsection
i below.
h. Procedures for Processing Refund Checks Received in FEEWC. FEEWC must have, at a
minimum, a manual system for maintaining a log of all checks received. In addition, all third-party
refund checks received in the office must be kept in a secure location.
Upon receipt of the government’s refund by FEEWC, FEEWC will forward the check to the OWCP
National Office, which in turn will send the check and the approved SOR to the appropriate lockbox
depository. FEEWC should notify the DCE whether completion of this action closes the third party
subrogation aspects of the case. For any SOR for which a refund check has not been received, the
debt should be collected in accordance with the procedures described in 2-1100.11.
i. Actions on Disputed Issues. Where a claimant or an attorney expresses a disagreement
with the action of FEEWC in handling the third party aspects of a claim, and this disagreement
cannot be resolved, FEEWC should advise the claimant’s attorney to request that a formal
determination be issued regarding the disputed issue or issues. Where FEEWC receives such a
request, it should prepare a referral memorandum to the owning DO. This emorandum should
include suggested findings of fact and statements of reasons, as well as a specific recommendation
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