2013 FECA Bulletins which have previously been issued by the DFEC but have since expired or been superseded by another Bulletin, Circular or inclusion in the FECA Procedure Manual.

Fiscal Year 2013

Bulletin

Subject

FECA Bulletin No. 13-01

This was a War Hazards Compensation Act Bulletin.

FECA Bulletin No. 13-02

Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments for March 1, 2013

FECA Bulletin No. 13-04

Third-Party Subrogation


Attention: This bulletin has been superseded and is inactive.

FECA BULLETIN NO. 13-02

Issue Date: March 21, 2013


Expiration Date: February 28, 2014


Subject: Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments for March 1, 2013.

Purpose: To furnish information on the CPI adjustment process for March 1, 2013.

The cost of living adjustments granted to a compensation recipient under the FECA are based on the "Consumer Price Index for Urban Wage Earners and Clerical Workers" (CPI-W) figures published by the Bureau of Labor Statistics (BLS). The annual cost of living increase is calculated by comparing the base month from the prior year to the base month of the current year, with the percentage of increase adjusted to the nearest one-tenth of 1 percent. 5 U.S.C. §8146(a) establishes the base month for the FECA CPI as December.

December 2011 had a CPI-W level of 222.166, and the December 2012 level was reported by BLS as 225.889. This means that the new CPI increase, adjusted to the nearest one-tenth of one percent, is 1.7 percent. The increase is effective March 1, 2013, and is applicable where disability or death occurred before March 1, 2012. In addition, the new base month for calculating the future CPI is December 2012.

The maximum compensation rates1, which must not be exceeded, are as follows:

$8,094.81 per month
7,472.13 each four weeks
1,868.03 per week
373.61 per day (for a 5-day week)

Applicability: Appropriate National Office and District Office personnel.

Reference: FECA Consumer Price Index (CPI) Amendment, dated January 6, 1981; Bureau of Labor Statistics Consumer Price Index Publication for December 2012 (USDL-13-0057)

Action: National Office Production staff will update the iFECS CPI tables and have all payment records re-calculated when the iFECS system is not in use by District Office personnel. This will occur on or about March 1, 2013. The March 9, 2013 check will be paid at the 2012 rate but will include the supplemental CPI payment for the period of March 1st to March 9th. The following periodic roll check will reflect the updated 2013 28-day amount. Please note that if there are any cases with fixed gross overrides, there will be no supplemental record created. These cases must be reviewed to determine if CPI adjustments are necessary, and, if so, a manual calculation will be required. If the gross override payment is in fact eligible for annual CPI increases, the payment plate should be adjusted in the iFECS system to pay as a "Gross Override with CPI."

1. CPI Minimum and Maximum Adjustments Listings. Form CA-841, Cost-of-Living Adjustments; Form CA-842, Minimum Compensation Rates; and Form CA-843, Maximum Compensation Rates, should be updated to indicate the increase for 2012. Attached to this directive is a complete list of all the CPI increases and effective dates for October 1, 1966 through March 1, 2013, for reference.

2. Forms.

a. All claimants will be provided a notice with their Benefit Statements, indicating the amount of this year's increase. The Treasury will include this notice as a "stuffer card" with every Benefit Statement issued for the March 9, 2013 rolls.

b. If claimants write or call for verification of the amount of compensation paid (possibly for mortgage verification; insurance verification; loan application; etc.), please continue to provide this data in letter form from the district office. Many times a Benefit Statement may not reach the addressee and regeneration of the form is not possible. A letter indicating the amount of compensation paid every four weeks will be an adequate substitute for this purpose.

Disposition: This Bulletin is to be retained in Part 5, Benefit Payments, Federal (FECA) Procedure Manual, until further notice or the indicated expiration date.

 

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation


1 Per Executive Order 13561 signed by President Obama on December 22, 2010, the GS pay schedules for Federal civilian employees will remain at 2010 levels for 2011 and 2012. There has not been a subsequent GS increase, so the current rate remains in place.

 

Attachment

Distribution: List No. 2 --Folioviews Groups A, B and D (Claims Examiners, All Supervisors, District Medical Advisors, Fiscal Personnel, Systems Managers, Technical Assistants, and Rehabilitation Specialists)

 

FB 13-02 EXHIBIT 1 –

 

COST-OF-LIVING ADJUSTMENTS UNDER 5 USC 8146(a)

EFFECTIVE DATE

RATE

EFFECTIVE DATE

RATE

10/01/66
01/01/68
12/01/68
09/01/69
06/01/70
03/01/71
05/01/72
06/01/73
01/01/74
07/01/74
11/01/74
06/01/75
01/01/76
11/01/76
07/01/77
05/01/78
11/01/78
05/01/79
10/01/79
04/01/80
09/01/80
03/01/81
03/01/82
03/01/83
03/01/84
03/01/85
03/01/86

12.5%
3.7%
4.0%
4.4%
4.4%
4.0%
3.9%
4.8%
5.2%
5.3%
6.3%
4.1%
4.4%
4.2%
4.9%
5.3%
4.9%
5.5%
5.6%
7.2%
4.0%
3.6%
8.7%
3.9%
3.3%
3.5%
N/A

03/01/87
03/01/88
03/01/89
03/01/90
03/01/91
03/01/92
03/01/93
03/01/94
03/01/95
03/01/96
03/01/97
03/01/98
03/01/99
03/01/00
03/01/01
03/01/02
03/01/03
03/01/04
03/01/05
03/01/06
03/01/07
03/01/08
03/01/09
03/01/10
03/01/11
03/01/12
03/01/13

0.7%
4.5%
4.4%
4.5%
6.1%
2.8%
2.9%
2.5%
2.7%
2.5%
3.3%
1.5%
1.6%
2.8%
3.3%
1.3%
2.4%
1.6%
3.4%
3.5%
2.4%
4.3%
0.0%
3.4%
1.7%
3.2%
1.7%

Prior to September 7, 1974, the new compensation after adding the CPI is rounded to the nearest $1.00 on a monthly basis, or the nearest multiple of $.23 on a weekly basis ($.23, $.46, $.69, or $.92). After September 7, 1974, the new compensation after adding the CPI is rounded to the nearest $1.00 on a monthly basis, or the nearest $.25 on a weekly basis ($.25, $.50, $.75, or $1.00).

Prior to 09/07/74

.08-.34 = .23
.35-.57 = .46
.58-.80 = .69
.81-.07 = .92

Eff. 11/01/74

.13-.37 = .25
.38-.62 = .50
.63-.87 = .75
.88-.12 = 1.00

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Attention: This bulletin has been superseded and is inactive.

FECA BULLETIN NO. 13-04

Issue Date: August 5, 2013


Subject: Third-Party Subrogation

Background: The Office of the Solicitor of Labor (SOL) has been delegated authority to administer the subrogation aspects of certain Federal Employees' Compensation Act (FECA) claims for the Office of Workers' Compensation Programs (OWCP).

Until 1980, the subrogation aspects of FECA claims were administered exclusively by OWCP (and delegated to SOL). In 1980 a Memorandum of Agreement (MOA) was entered into between the United States Postal Service (USPS) and OWCP concerning administration of USPS subrogation matters. That agreement was renewed in 1983 for a period of two years and in 1985 was extended indefinitely subject to the ability of either party to cancel the agreement by providing written notice to the other party.

On April 15, 2013, OWCP terminated the MOA with USPS. As a result, all USPS subrogation matters will be handled by SOL.

In addition, this bulletin revises Procedure Manual Section 2-1100.7(c)(2), which advises that District Offices should only refer cases to SOL with a $2,000 or more refund amount due; however, USPS has a significant number of cases that will fall under this threshold which USPS has previously handled. In connection with the transfer of responsibility for USPS subrogation matters, SOL will assume responsibility for all newly identified cases as having third-party potential, regardless of the amount of the disbursements or refund. All claimants and other parties with third-party inquiries should be referred to SOL.

References: 5 U.S.C. §§ 8131 and 8132; 20 C.F.R. § 10.705(b).

Purpose: To advise OWCP personnel of new subrogation referral procedures related to USPS cases and non-USPS cases with less than $2,000 due in refund, and to advise OWCP personnel regarding all third-party inquiries.

Applicability: All National Office and District Office personnel.

Action:

1. Effective July 1, 2013, all cases that are newly identified as having third-party potential are to be referred to SOL, regardless of the employing agency or the amount of refundable disbursements. However, the procedures for referring cases involving Census employees remain in effect. See 2-1100.7(a)(3).

2. Responsibility for administering any existing USPS case that had previously been identified as having third party potential will be transitioned to SOL on July 1, 2013.

3. District offices will refer all subrogation inquiries to SOL (including requests for disbursements and status inquiries) for all open subrogation cases starting July 1, 2013, and should continue to refer subrogation inquiries to SOL on any open third-party case until the third-party aspect has been closed by SOL via a memorandum in the file.

4. Claimants and representatives should be instructed to include the SOL address and fax number on all third-party correspondence to ensure SOL receipt of any correspondence.

Disposition: This bulletin is to be retained until the FECA PM has been updated.

DOUGLAS C. FITZGERALD
Director for Federal Employees' Compensation

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