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Printing - FECA-PT2 - National Association of Letter Carriers

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2-1300 Exhibit 2: Sample Appealable Decision <strong>Letter</strong> for Claimant Who Request Lump-sum<br />

Disability Payment<br />

Dear CLAIMANT NAME:<br />

Your request for a lump sum payment <strong>of</strong> your wage-loss benefits under section 8105/8106 <strong>of</strong> the Federal<br />

Employees' Compensation Act (<strong>FECA</strong>) has been received by this <strong>of</strong>fice. Regulations governing the<br />

administration <strong>of</strong> the <strong>FECA</strong> at 20 CFR 10.422(a) provide:<br />

(1) In the exercise <strong>of</strong> the discretion afforded by section 8135(a), the Director has determined that<br />

lump-sum payments will no longer be made to individuals whose injury in the performance <strong>of</strong> duty<br />

as a federal employee has resulted in a loss <strong>of</strong> wage earning capacity. This determination is based<br />

on, among other factors:<br />

(i) The fact that <strong>FECA</strong> is intended as a wage-loss replacement program;<br />

(ii) The general advisability that such benefits be provided on a periodic basis; and<br />

(iii) The high cost associated with the long-term borrowing that is necessary to pay out large lump<br />

sums.<br />

(2) Accordingly, where applications for lump-sum payments for wage-loss benefits under section<br />

8105 and 8106 are received, the Director will not exercise further discretion in the matter.<br />

Based on the foregoing, your request for a lump-sum payment will not be considered and is hereby<br />

denied. Your appeal rights are attached.<br />

Sincerely,<br />

CLAIMS EXAMINER<br />

Case Number:<br />

<strong>FECA</strong>-<strong>PT2</strong> Printed: 06/08/2010 597

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