2018 FECA Bulletins Archive

Attention: This bulletin has been superseded and is inactive.

FECA BULLETIN NO. 18-01

Issue Date: January 2, 2018

Expiration Date: January 1, 2019

Subject: Compensation Pay: Compensation Rate Changes Effective January 2018.

Background: On December 22, 2017, the President signed an Executive Order implementing a salary increase of 1.4 percent in the General Schedule basic pay. The applicability under 5 U.S.C. 8112 only includes the 1.4 percent increase in the basic General Schedule. Any additional increase for locality-based pay is excluded. The adjustment is effective at the start of the first full pay period after January 1, 2018.

Purpose: To inform the appropriate personnel of the increased minimum/maximum rates of compensation and the adjustment procedures for affected cases on the periodic disability and death payrolls.

The new rates are effective with the first compensation payroll period beginning on or after January 1, 2018. Thus, for daily roll supplemental payments January 7, 2018 is the specific effective date of the increase. The effective date for the increase of periodic and death roll payments will also be January 7, 2018. The new maximum compensation rate payable is based on the scheduled salary of a GS-15, Step 10, which is now $136,659 per annum. The basis for the minimum compensation rate is the salary of a GS-2, Step 1 which is now $21,121 per annum.

The minimum increase specified in this Bulletin is applicable to employees of the U.S. Postal Service.

The effect on 5 U.S.C. 8112 is to increase the payment of compensation for disability claims to:

The effect on 5 U.S.C. 8133(e) is to increase the monthly pay on which the compensation for death is computed to:

Applicability: Appropriate National and District Office personnel

Reference: Memorandum for Executive Heads of Departments and Agencies dated December 22, 2017 and the attachment for the 2018 General Schedule.

Action: The Integrated Federal Employees' Compensation System (iFECS) will update the periodic disability and death payrolls. It should be noted that this adjustment process re-calculates EVERY compensation record from its very beginning to current date. Thus, it may be that minor changes in the gross compensation are noted; this is not necessarily incorrect.

Any cases keyed as "Gross Overrides without CPI" in iFECS will not have a supplemental record or make a separate calculation of additional entitlement. Thus, these gross override cases must be reviewed to determine if adjustments are necessary. If an adjustment is necessary, a manual calculation will be required and the case record documented. A notice should be sent to the payee by the District Office, detailing the change in the rate of compensation. All cases keyed as "Gross Overrides with CPI" will be adjusted in the usual manner.

1. Adjustments Dates.
   1. As the effective date of the adjustment was January 7, 2018 for the periodic disability and death rolls, there was no supplemental payroll needed. The February 3, 2018 death and disability payments will include any necessary minimum or maximum compensation adjustments.
   2. The new minimum/maximum compensation rates will be available in iFECS after January 29, 2018.
2. Adjustment of Daily Roll Payments. The salary adjustments are not retroactive, so it is assumed that all Federal agencies have ample time to receive and report the new pay rates on claims for compensation filed on or after January 1, 2018. Therefore, it is not necessary to review any of these payments.
   However, if an inquiry is received then verification of the pay rate must be secured from the employing agency, and the necessary adjustment applied.

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

ANTONIO RIOS
Director for
Federal Employees' Compensation

Distribution: All DFEC Staff

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Attention: This bulletin has been superseded and is inactive.

FECA BULLETIN NO. 18-02

Issue Date: February 12, 2018

Expiration Date: February 28, 2019

Subject: Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments.

Purpose: To furnish information on the CPI adjustment process for March 1, 2018.

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 2016 had a CPI-W level of 235.390 and the December 2017 level was reported by BLS as 240.526. This means that the new CPI increase, adjusted to the nearest one-tenth of one percent, is 2.2 percent. The increase is effective March 1, 2018, and is applicable where disability or death occurred before March 1, 2017. In addition, the new base month for calculating the future CPI is December 2017.

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

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 2017 (USDL-18-0039)

Action: National Office Production staff will update the iFECS CPI tables and recalculate all payment records when the iFECS system is not in use by District Office personnel. This will occur prior to March 1, 2018. The March 3, 2018 check will be paid at the 2017 rate but include the supplemental CPI payment for the period of March 1st to March 3rd.

The following periodic roll check will reflect the updated 2018 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 2018. Attached to this directive is a complete list of all the CPI increases and effective dates since October 1, 1966 through March 1, 2018, for reference.
2. Verification of Compensation. 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.

ANTONIO RIOS
Director for
Federal Employees' Compensation

Attachment: Cost of Living Adjustments

Distribution: All DFEC Staff

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).

ATTACHMENT TO FECA BULLETIN NO. 18 - 02

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