Section 8116(d) of the FECA requires that compensation benefits be reduced by the portion of SSA benefits based on age, disability or death that are attributable to Federal service and that, if an employee received SSA benefits based on Federal service, his or her compensation benefits shall be reduced by the amount of SSA benefits attributable to his or her Federal service.
OWCP procedures provide that, while SSA benefits are payable concurrently with FECA benefits, the following restrictions apply: In disability cases, FECA benefits will be reduced by the SSA benefits paid on the basis of age or disability which are attributable to the employee’s Federal service.
The offset of the FECA benefits by SSA benefits attributable to employment under FERS is calculated as follows:
Where a claimant had received SSA benefits, the OWCP will obtain information from SSA on the amount of the claimant’s SSA benefits beginning with the date of eligibility to FECA benefits. SSA will provide a hypothetical SSA benefit computed with the FERS covered earnings. The OWCP will then deduct the hypothetical benefit from the actual benefit to determine the amount of benefits which are attributable to Federal service and that amount will be deducted from the FECA benefits to obtain the amount of compensation payable.