Division of Federal Employees' Compensation (DFEC)
FECA Bulletins have been divided into five-year groups to make it easier for you to search and find the information you are looking for. Active War Hazards Compensation Act (WHCA) Bulletins have been moved to their own location.
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Bulletin |
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Offset of Social Security Retirement or Survivor Benefits Attributable to Federal Service from Disability Compensation or Death Benefits Paid under the Federal Employees’ Compensation Act (FECA). |
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Permanent Pay Reform for Wildland Firefighters |
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Debt Collection Updates for the Federal Employees’ Compensation Act (FECA) Program |
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Consumer Price Index (CPI) Cost-of-Living Adjustments |
Back to FECA Bulletins (2025-2026) Table of Contents
Bulletin |
Subject |
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Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments |
Back to FECA Bulletins (2025-2026) Table of Contents
FECA BULLETIN NO. 26-01
Issue Date: December 19, 2025
Subject: Offset of Social Security Retirement or Survivor Benefits Attributable to Federal Service from Disability Compensation or Death Benefits Paid under the Federal Employees' Compensation Act (FECA).
Background: The FECA at 5 U.S.C. § 8116 sets out basic limitations on a claimant's rights to receive compensation and the general circumstances under which the claimant must elect between any FECA entitlement and certain prohibited dual benefits and when an offset of benefits is required.
5 U.S.C. § 8116(d) addresses required offsets where a claimant is in receipt of benefits from the Social Security Administration (SSA), stating specifically at 5 U.S.C. § 8116(d)(2) that:
...in the case of benefits received on account of age or death under title II of the Social Security Act, compensation payable under [the FECA] based on the Federal service of an employee shall be reduced by the amount of any such social security benefits payable that are attributable to Federal service of that employee...
A FECA beneficiary may receive OWCP and SSA benefits concurrently, but SSA retirement or survivor benefits based on Federal service are considered dual benefits requiring offset from disability compensation or death benefits paid under the FECA and will reduce the amount of FECA entitlement.
Purpose: There is a misconception that this offset only applies to those claimants under the Federal Employees' Retirement System (FERS), but that is not accurate. While the offset has been referred to as a "FERS Offset" in the past since that is most of the applicable cases, it is not the only retirement system to which this offset applies. The purpose of this bulletin is to provide clarity regarding the applicability of the offset provision of 5 U.S.C. § 8116(d)(2) to any SSA benefits that are attributable to Federal service, regardless of the retirement system under which the Federal employee was covered.
Actions:
1. Identify the Retirement System. When reviewing FECA and SSA claims of a claimant who is 62 years of age or older, the claims examiner (CE) should first ascertain the retirement system under which the Federal employee was covered. In existing death cases, the CE should identify the controlling retirement system if either the surviving spouse is aged 60 or over or there are minor children.
When the initial claim forms do not identify the retirement system, there are other documents that may provide needed information. These include:
a. Form CA-7, Claim for Compensation, or Form CA-6, Official Superior's Report of Death.
b. SF-50 or PS-50, Notification of Personnel Action.
c. Correspondence from OPM. FERS retirement claim numbers begin with 7 in death cases and 8 in retirement cases. Civil Service Retirement System (CSRS) claim numbers begin with 1, 2, 3 or 4. This numbering system does not distinguish between CSRS and CSRS-offset retirees, but it does allow the CE to identify those claimants or deceased employees who were in FERS.
d. The claimant's or survivor's responses to the appropriate questions on Form EN-1032 or Form CA-12.
e. Other correspondence from the claimant, survivor, or employing agency that identifies the retirement system.
2. Determine if the Retirement System Requires Offset: Retirement systems where an SSA offset is needed include, but are not limited to, the list below. If any uncertainty exists as to the applicability of a certain retirement system, the claims examiner should inquire with SSA as to whether the employee (or their dependents) is in receipt of SSA benefits specifically attributable to the Federal employee's Federal service.
a. The Civil Service Retirement System (CSRS) Interim Offset. Since Federal employees enrolled in CSRS are not enrolled in Social Security there are no dual benefit restrictions for these employees or beneficiaries because any SSA entitlement did not originate from Social Security credits earned from Federal employment. However, a Federal employee enrolled in the CSRS Interim/Offset system – which is a different system, and which is governed by different regulations than CSRS alone – makes contributions to both CSRS and Social Security; and therefore, offset is required.
b. Federal Employees' Retirement System (FERS)
c. Foreign Service Retirement System (FSRS)
d. Federal Reserve System (FRS)
e. Retirements in association with the Federal Insurance Contributions Act (FICA)
f. Tennessee Valley Authority (TVA) Retirement System
The offset mandated by 5 U.S.C. § 8116(d)(2) should be applied with respect to any Federal employee covered under a retirement system where – as a part of, or in addition to, the plan's benefits – the employee is entitled to receive SSA retirement benefits specifically attributable to his or her Federal service.
3. Development. Development should be undertaken in accordance with established procedures. See FECA Procedure Manual 2-1000. A response from SSA indicating that any of the employee's (or their dependents') SSA benefits are attributable to the Federal employee's Federal service should be taken as an indication that offset under 5 U.S.C. § 8116(d)(2) is necessary absent clear absent clear, contrary evidence of record.
Reference: FECA Procedure Manual Chapter 2-1000; 5 U.S.C. 8116(d)
Applicability: All DFEC Staff
Disposition: This Bulletin is to be retained until otherwise revised or incorporated into Part 2 of the FECA Procedure Manual.
JENNIFER VALDIVIESO
Director for
Federal Employees' Compensation
Distribution: All DFEC Program Staff
FECA BULLETIN NO. 26-02
January 29, 2026
Subject: Permanent Pay Reform for Wildland Firefighters
Background: On March 14, 2025, Congress passed the Full-Year Continuing Appropriations and Extensions Act, 2025 (Public Law 119-4); Section 1807 includes permanent pay reform for all federal wildland firefighters in both U.S. Department of the Interior and U.S. Department of Agriculture.
Upon passage of this new legislation, the retention pay provided in FECA Bulletin 22-08 in accordance with the Bipartisan Infrastructure Law passed on November 15, 2021, ceased as of March 22, 2025. Instead, this new permanent pay reform for wildland firefighters is effective March 23, 2025.
Under this new reform, the general schedule alongside previously authorized retention pay has been replaced with a new pay table, the General Wildland Firefighter (GW) pay table, specifically for wildland firefighters. The new legislation also creates an Incident Response Premium Pay which provides extra pay for all federal incident responders on qualifying deployments.
Purpose: To provide instructions to claims staff on computing the pay rate for federal wildland firefighters per the provisions of the permanent pay reform referenced above.
Applicability: All DFEC Staff
Action: The firefighters who are affected by this legislation are those who have effective pay dates of March 23, 2025, or later.
A. Pay Rate
1. Pay Rate Using the GW Scale:
a. The firefighter’s pay rate should be established by identifying the annual salary as reported on the GW scale and using the applicable firefighter calculation in accordance with the Federal Firefighters Overtime Pay Reform Act of 1998 (Public Law No. 105-277), effective October 1, 1998.
b. Similar to the GS schedule, any premium pay as outlined in DFEC PM 2-900.6 is included.
2. Incident Response Premium Pay is excluded from workers’ compensation per 5 U.S.C. § 5545c, Subsection (d)(3), which states: “Incident response premium pay under this section may not be used in determining pay under section 8114 (relating to compensation for work injuries)”.
B. Retroactive Adjustments
The Department of the Interior and Department of Agriculture have provided pay rate information aligning with the new legislation since inception. Any request for a retroactive adjustment in accordance with this new legislation should be reviewed and verified with the employing agency on a case-by-case basis.
Disposition: This bulletin supersedes FECA Bulletin 22-08 and is to be retained until otherwise revised or incorporated into the DFEC Procedure Manual.
JENNIFER VALDIVIESO
Director for
Federal Employees' Compensation
Distribution: All DFEC Staff
FECA BULLETIN NO. 26-03
Issue Date: March 31, 2026
Subject: Debt Collection Updates for the Federal Employees’ Compensation Act (FECA) Program
Background: When an overpayment is identified, the FECA program issues a preliminary finding to the claimant outlining the amount of the overpayment and how it was calculated, the reason for the overpayment, and a determination regarding whether the claimant was found to be with or without fault in the creation of the overpayment. The claimant can submit additional evidence or request a pre-recoupment hearing. After reviewing the evidence submitted, or the pre-recoupment hearing, the FECA program issues a final decision addressing waiver, and if the overpayment cannot be waived, directs repayment. See 20 CFR §10.431-440.
If the claimant receives compensation from the FECA program, deductions are entered to satisfy the required repayment. However, when an overpayment has been made to an individual who is not entitled to further payments, 20 CFR §10.441(b) provides that:
...the individual shall refund to OWCP the amount of the overpayment as soon as the error is discovered or his or her attention is called to same. The overpayment is subject to the provisions of the Federal Claims Collection Act of 1966 (as amended) and may be reported to the Internal Revenue Service as income. If the individual fails to make such refund, OWCP may recover the same through any available means, including offset of salary, annuity benefits, or other Federal payments, including tax refunds as authorized by the Tax Refund Offset Program, or referral of the debt to a collection agency or to the Department of Justice.
Historically if payment was not received after issuing a final determination, DFEC issued multiple demand letters requesting repayment, and usually when claimants submit repayment, it is via paper check. Tracking individual payments to ensure the debt is being repaid timely and processing paper checks and reconciling them to the claimant’s debt record are laborious processes and prone to error. If the claimant does not repay the debt, it is ultimately referred to the Department of Treasury for cross-serving, but the aforementioned processes often add months to the debt collection process.
In June, 2020, the FECA program issued Bulletin 20-06, outlining the intent to update its debt collection procedures and begin using the Department of Treasury’s Bureau of Fiscal Service Centralized Receivables Service (CRS) for all collection, but this process was never fully implemented.
Actions:
Consistent with the Debt Collection Improvement Act, and to further implement Executive Order 14247, Modernizing Payments To and From America’s Bank Account by reducing receipt of paper checks, the FECA program will begin fully using the Department of Treasury’s Bureau of Fiscal Service Centralized Receivables Service (CRS). CRS helps federal agencies manage their accounts receivable and focuses on collecting current, non-tax, administrative debts prior to delinquency. For more information on the Treasury’s CRS program, reference https://fiscal.treasury.gov/crs/
1. Debt that cannot be recouped from ongoing compensation payments (or via recoupment from the Office of Personnel Management if the claimant is receiving ongoing benefits) will be referred to CRS once the final decision is issued. Final overpayment decisions will be updated to include this information.
2. Once the debt has been referred to CRS, the FECA program will not take any action to recover the overpayment. All debt recoupments will occur via CRS.
3. Payments received through CRS will be posted to the claimant’s debt. Agencies will continue to receive chargeback credits on their annual bill.
4. The FECA program can recall a debt from CRS if needed, e.g. if the Employees’ Compensation Appeals Board (ECAB) issues a decision reversing the program’s debt determination.
5. If a claimant does not pay through the CRS program, the debt will be referred by CRS for Cross Servicing, similar to the current process used by DFEC to refer delinquent debt for Cross Servicing. Treasury’s Cross-Servicing program collects delinquent nontax debt owed to federal agencies. It is administered by the Bureau of the Fiscal Service’s Disbursing and Debt Management division. For more information on the Treasury’s Cross-Servicing program, reference https://fiscal.treasury.gov/cross-servicing/
6. DFEC will also begin transitioning to CRS for existing debts where repayment is not from ongoing compensation. Claimants will be issued a notice advising them of this update for ongoing collection prior to the referral.
Reference: 20 C.F.R. §10.441, Federal (FECA) Procedure Manual Chapter 6-0100, Introduction and Chapter 6-0500, Debt Liquidation.
Disposition: This Bulletin is to be retained until otherwise revised or incorporated into the FECA Procedure Manual.
JENNIFER VALDIVIESO
Director for
Federal Employees' Compensation
FECA BULLETIN NO. 26-04
Issue Date: March 31, 2026
Subject: Consumer Price Index (CPI) Cost-of-Living Adjustments
Purpose: To provide notification of the CPI adjustment effective March 1, 2026.
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.
The CPI increase, as determined by BLS, is 2.6 percent. The increase is effective March 1, 2026, and is applicable where disability or death occurred before March 1, 2025.
The maximum compensation rates1, which must not be exceeded, are as follows:
$10,268.81 per month
$9,478.88 each four weeks (disability payments)
$2,369.72 per week
$473.94 per day (for a 5 day week)
The first payment with the adjusted rate will be paid on March 20, 2026.
Reference prior FECA Circulars for the historical CPI adjustments.
JENNIFER VALDIVIESO
Director for
Division of Federal Employees’ Compensation
1 Per 2026 General Schedule (Base).
Back to FECA Bulletins (2025) Table of Contents
FECA BULLETIN NO. 25-03
Issue Date: August 27, 2025
Subject: Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments
Purpose: To furnish information on the CPI adjustment process for March 1, 2025.
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 2023 had a CPI-W level of 300.728 and the December 2024 level was reported by BLS as 309.067. This means that the new CPI increase, adjusted to the nearest one-tenth of 1 percent, is 2.8 percent. The increase is effective March 1, 2025, and is applicable where disability or death occurred before March 1, 2024. In addition, the new base month for calculating the future CPI is December 2024.
The maximum compensation rates1, which must not be exceeded, are as follows:
$10,167.00 per month
$9,384.92 each four weeks
$2,346.23 per week
$469.25 per day (for a 5 day week)
Applicability: Appropriate FECA Program personnel.
Reference: FECA Consumer Price Index (CPI) Amendment, dated January 6, 1981; Bureau of Labor Statistics Consumer Price Index Publication for December 2023 (USDL-24-0019).
Action: National Office Production will update the iFECS CPI tables and recalculate all payment records when the iFECS system is not in use by Office personnel. The March 21, 2025, payment will be the first one paid at the 2025 rate.
Please note that if there are any cases with fixed gross overrides, those cases must be reviewed to determine if CPI adjustment is necessary. 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."
- Attached to this directive is a complete list of all the CPI increases and effective dates since October 1, 1966 through March 1, 2025, for reference. BLS convention is to calculate percent changes from published precision index levels, then round the percent change up or down to one-tenth of one percent. Historical CPI rates may have been adjusted by the FECA program by rounding or truncation. Negative percentages as calculated by BLS result in a 0.0% rate.
- 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. 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.
JENNIFER VALDIVIESO
Director for
Division of Federal Employees’ Compensation
Attachment: Cost of Living Adjustments
Distribution: All FECA Program Staff
1 Per 2025 General Schedule (Base).
ATTACHMENT TO FECA BULLETIN NO. 25-03
| EFFECTIVE DATE | RATE | EFFECTIVE DATE | RATE |
|---|---|---|---|
| 10/01/66 | 12.5% | 03/01/90 | 4.50% |
| 01/01/68 | 3.7% | 03/01/91 | 6.1% |
| 12/01/68 | 4.0% | 03/01/92 | 2.8% |
| 09/01/69 | 4.4% | 03/01/93 | 2.5% |
| 03/01/94 | 2.5% | ||
| 06/01/70 | 4.4% | 03/01/95 | 2.7% |
| 03/01/71 | 4.0% | 03/01/96 | 2.5% |
| 05/01/72 | 3.9% | 03/01/97 | 3.3% |
| 06/01/73 | 4.8% | 03/01/98 | 1.5% |
| 01/01/74 | 5.2% | 03/01/99 | 1.6% |
| 07/01/74 | 5.3% | ||
| 11/01/74 | 6.3% | 03/01/00 | 2.8% |
| 06/01/75 | 4.1% | 03/01/01 | 3.3% |
| 01/01/76 | 4.4% | 03/01/02 | 1.3% |
| 11/01/76 | 4.0% | 03/01/03 | 2.4% |
| 07/01/77 | 4.9% | 03/01/04 | 1.6% |
| 05/01/78 | 5.3% | 03/01/05 | 3.4% |
| 11/01/78 | 4.9% | 03/01/06 | 3.5% |
| 05/01/79 | 5.5% | 03/01/07 | 2.4% |
| 10/01/79 | 5.6% | 03/01/08 | 4.3% |
| 03/01/09 | 0.0% | ||
| 04/01/80 | 7.2% | ||
| 09/01/80 | 4.0% | 03/01/10 | 3.4% |
| 03/01/81 | 3.6% | 03/01/11 | 1.7% |
| 03/01/82 | 8.7% | 03/01/12 | 3.2% |
| 03/01/83 | 3.9% | 03/01/13 | 1.7% |
| 03/01/84 | 3.3% | 03/01/14 | 1.5% |
| 03/01/85 | 3.5% | 03/01/15 | 0.3% |
| 03/01/86 | N/A | 03/01/16 | 0.4% |
| 03/01/87 | 0.7% | 03/01/17 | 2.0% |
| 03/01/88 | 4.5% | 03/01/18 | 2.2% |
| 03/01/89 | 4.4% | 03/01/19 | 1.8% |
| 03/01/20 | 2.3% | ||
| 03/01/21 | 1.4% | ||
| 03/01/22 | 7.8% | ||
| 03/01/23 | 6.3% | ||
| 03/01/24 | 3.3% | ||
| 03/01/25 | 2.8% |
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 | Eff. 11/1/74 |
|---|---|
| .08-.34 = .23 | .13-.37 = .25 |
| .35-.57 = .46 | .38-.62 = .50 |
| .58-.80 = .69 | .63-.87 = .75 |
| .81-.07 = .92 | .88-.12 = 1.00 |
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