OWCP Case Study

Amend provisions to require OWCP to work with USPS and other agencies to pursue Third Party collection on the behalf of their injured employees. In 2013, OWCP withdrew from the joint agreement for the USPS to pursue Third Party claims. Most interesting is that Third Party collection is an adjunct activity in relation to claim benefits. From the inception of the original joint agreement the between OWCP and USPS in November of 1980, USPS successfully negotiated third party settlements on behalf of USPS employees for 35 years. On March 10, 1985, the parties gave signature to a Memorandum of Agreement expanding the joint third party collect program for an indefinite period. The USPS injury compensation staff would negotiate millions of dollar

Amend provisions for adjusting Loss Wage Earning Capacity Ratings
Under current provisions, “once a formal “Loss of Wage-Earning Capacity (LWEC) decision has been issued, modification of such a determination is not warranted unless one of three criteria is met “, (1) there is no disability within the meaning of the Act if the claimant returns to work without wage loss, despite the existence of a prior LWEC decision. (2) Because the claimant was previously receiving compensation in accordance with a formal LWEC decision, (3) if the prior LWEC can be modified because the claimant 's medical condition has changed. As such, OWCP does not reduce partial wages paid as part of a LWEC rating until the employee’s salary exceeds 25% of the rating. In 2013, 2,572 USPS employees had loss was earning capacity ratings.
Include example.
This results in an unintentional salary increase for claimants returning to part-time employment. Claimants with a LWEC rating reflect as PW (Partial Wage Earn Capacity) on OWCP’s compensation roll. This provision requires amending FECA regulation to require OWCP to adjust the LWEC rating with to align with the employee’s actual wage and thereby eliminate the excess wages the additional compensation