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Incentive Would Offset OWCP Compensation

APWU Web News Article #116-09, Sept. 24, 2009

Postal employees on temporary total disability who are interested in applying for the $15,000 incentive should be aware of an opinion issued by the Office of Workers Compensation on Sept. 24:

According to the agency, the incentive would be offset by reduced payment of compensation under the Federal Employees’ Compensation Act (FECA). “The $15,000 amount will affect the amount of FECA (Federal Employees’ Compensation Act) compensation a claimant on total disability will be entitled to,” the Division of Federal Employees’ Compensation wrote [PDF].

However, compensation payments based on a formal OWCP lost wage earning capacity (LWEC) determination or compensation for a schedule award, would not be offset by the separation pay. In addition, medical benefits are payable concurrently with separation pay.

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