Printing - FECA-PT2 - National Association of Letter Carriers

To determine the amount to be listed on Line 10 of the SOR, multiply the court costs allowed by
the percentage shown at Line 4, and subtract this amount from the allowed court costs. Multiply
the balance by the percentage shown at Line 6 and enter this amount on Line 10. The United
States does not contribute to or pay costs associated with the third party action. The FECA does
not provide for or authorize the payment of costs other than as a deduction from the third party
recovery. See Alonzo R. Witherspoon, 43 ECAB 1120, 1124 (1992).
i. Releases. In any case where a claimant requests that OWCP execute a release in
connection with the subrogation aspects of a third-party case, that request should be referred to
FEEWC. Since the United States is not a party to the underlying litigation between the claimant
and the third party, it is not appropriate to execute a release of the liability of the third party to the
FECA claimant. It is appropriate, however, to furnish the claimant a letter acknowledging
compliance with the provisions of 5 U.S.C. §§ 8131 and 8132.
02-1100-10 Compensation Status Following Refund to the United States
10. Compensation Status Following Refund to the United States.
a. Under section 8116(a) of the FECA (5 U.S.C. § 8116(a)), a beneficiary may not receive
compensation under the FECA simultaneously with salary, pay, or remuneration from the United
States. With certain exceptions, a beneficiary must elect whether to receive benefits under the
FECA, or benefits to which the beneficiary is entitled by virtue of the employee’s status as a federal
employee. A beneficiary may receive OPM benefits for any period for which a refund has been
made, and is not considered in receipt of compensation during any such period (see Program
Memoranda Nos. 90, 130, and 277).
b. Exhaustion of Surplus.
(1) During the period of exhaustion of the third party surplus, the beneficiary is
not considered to be in receipt of compensation. If he or she elects OPM retirement
benefits, payment of this annuity does not constitute a prohibited dual benefit.
When the surplus has been exhausted, the beneficiary should be given the
opportunity to elect between FECA benefits and the OPM annuity. Compensation
benefits may be elected effective the day after the absorption of the third party
surplus (see Program Memorandum No. 130).
(2) Where a beneficiary who has received a recovery from a third party has made
the required refund, but subsequent events result in payment of compensation
benefits (including medical benefits) for a period of time during which a third party
surplus was in the process of being absorbed from continuing compensation
entitlement, this results in an overpayment of compensation. Such an overpayment
of compensation should be adjudicated and processed by OWCP according to the
usual overpayment procedures set forth in Part 6 of the Procedure Manual.
(3) Where a beneficiary has received a third party recovery resulting in a surplus,
this surplus is noted in the computer record, and the adjudication status code is
changed to A0 to prevent the further payment of benefits. Compensation payments
are calculated and continue to be charged against the surplus, as are medical
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