Why is Form CA-1032 Important and Powerful?
In a prior Frasco release, we explained how the CA-1032 Form can help an agency confirm if a claimant is alive or deceased. We also showed how Frasco supports agencies with a death index search.
However, Form CA-1032 provides more information than most Workers’ Compensation Specialists (WCS) use when reviewing it. This often means missed opportunities to reduce compensation costs.
In federal workers’ compensation cases, the duty to report occurs less frequently, but the disclosure requirements are broad. When a claimant reports information, OWCP may suspend benefits, forfeit benefits, or demand repayment if overpayments exist.
What is Form CA-1032?
The CA-1032 Form is sent annually to claimants on the periodic roll. Agencies use it to decide whether claimants continue receiving benefits or if benefits should change.
Claimants must answer all questions fully and return the form within 30 days. If they fail to do so, OWCP suspends benefits under 20 CFR 10.525 until the form is submitted. The CA-1032 Form covers the 15 months before the claimant signs it.
WCS should track whether the claimant files the form on time. If not, OWCP issues a reminder. Continued failure to respond results in suspension until the form arrives completed.
OWCP warns claimants that false or evasive answers, or skipped questions, may lead to forfeiture of benefits. Claimants may also face civil liability. Fraudulent answers may result in criminal prosecution. All statements on the CA-1032 Form are subject to investigation for accuracy.
How Each Section of Form CA-1032 Works
Part A – Employment
This section asks claimants if they worked or were self-employed during the past 15 months. Claimants must name their employer, describe their work, and report their earnings.
WCS should compare this information with medical notes, witness statements, or social media posts. Medical records sometimes reveal a claimant is working even when the CA-1032 Form shows otherwise. Witnesses or social media may also provide proof of unreported work.
When investigation confirms employment not disclosed on the CA-1032 Form, OWCP may place the claimant on Loss of Wage Earning Capacity (LWEC). This often results in overpayment recovery. In severe cases, it may lead to criminal prosecution and forfeiture of benefits.
Part B – Volunteer Work
Volunteer work resembles employment in how it shows a claimant’s ability to perform services. Even without pay, this activity can support a Constructed Loss of Wage Earning Capacity (CWEC).
If a claimant fails to disclose volunteer work that investigators later confirm, OWCP may treat it as a fraudulent statement. This can reduce or suspend benefits.
Part C – Dependents
This section requires WCS to carefully review dependent claims. Compare the CA-1032 Form with past Form CA-7s to confirm accuracy.
For instance, if a claimant claims dependents beyond a spouse or reports a divorce, OWCP may reduce benefits from 75% to 66⅔%.
Specialists should also check the ages of dependent children. Benefits remain at 75% until a child turns 18. If the child attends college, dependency can extend to age 23 with verification.
Workers’ Compensation Specialists must also confirm marital status and court mandates. If no ex-spouse payments exist and there are no dependents, OWCP may reduce compensation and recover overpayments.
Part D – Other federal Benefits or Payments.
- OPM Benefits:
In most cases, claimants do not receive both OWCP and Office of Personnel Management (OPM) benefits. However, reviewing whether the claimant has a Civil Service Annuity (CSA) number remains essential.
While receiving OWCP compensation, a claimant may receive a job offer. Instead of accepting it, they may elect OPM benefits. As the WCS, continue pursuing the job offer. If the claimant declines, OWCP may terminate compensation under 20 CFR §10.515.
Claimants with a CSA number may also file for a schedule award while electing OPM benefits. This does not create dual benefits but affects chargeback reports when OWCP issues lump-sum payments. After the lump-sum period ends, claimants often return to OWCP benefits, so agencies should expect them back on chargeback reports.
- SSA Benefits.
Claimants must report any SSA benefits tied to the Federal Employees’ Retirement System (FERS). This section often provides an opportunity to reduce workers’ compensation benefits.
As the WCS, check whether claimants report SSA retirement benefits. If not, and they are approaching age 67, monitor them closely. At full retirement age, confirm whether compensation benefits have been reduced.
If benefits were not reduced, request that the Department of Labor (DOL) contact SSA for a calculation. While OWCP should complete this automatically, follow-up is sometimes necessary. Once SSA replies, ensure offsets are applied and review for overpayments.
This rule comes from Section 8116(d) of FECA, which requires OWCP to reduce compensation by the portion of SSA benefits based on age, disability, or death tied to federal service.
The rule also applies to SSA disability benefits (SSDI). When claimants on SSDI reach age 62, OWCP must convert benefits to retirement and apply the offset. If OWCP does not apply it, WCS must notify the Claims Examiner (CE) to fix the error and recover overpayments.
- VA Benefits.
Claimants must report any VA disability award related to the same injury for which they receive FECA benefits.
If the VA award is not a basic pension, the CE must investigate. They must decide whether:
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The VA award is based on the same disability or death covered by FECA and caused by military service, or
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The VA increased or granted benefits because of a civilian employment injury tied to the FECA claim.
If either applies, the claimant must choose between benefits under 5 U.S.C. 8116(a)(3).
As a WCS, track increases in VA awards and record the date of any change if the claimant continues receiving FECA benefits. More details are in the OWCP Procedure Manual, Section 2-1000.
Part E – Third Party Settlement
Claimants must disclose third-party settlements. If the claim was not subrogated, WCS should contact the Claims Examiner (CE). Settlements may lead to overpayment or benefit suspension until surplus funds are used.
During suspension, OWCP calculates unpaid monthly compensation and medical bills against the surplus. When the surplus is exhausted, compensation benefits resume.
For more information, review 5 USC §8131, §8132, and 20 CFR Parts §10.705-10.719 in the FECA Procedure Manual 2-1100.
Part F – Fraud/Felony Offenses
Fraud Convictions are covered under 5 USC §8148, individuals convicted of fraud related to benefit applications or receipt under specific federal subchapters (including Section 1920 of Title 18) forfeit all entitlements to benefits for injuries occurring on or before the conviction date.
This forfeiture is in addition to any other actions the Secretary of Labor may take under Sections 5 USC §8106 or §8129.
Felony Incarceration Individuals incarcerated due to felony convictions are not eligible for benefits during their incarceration. These benefits are not retroactively payable after release.
However, if the incarcerated individual has dependents (as defined in Section 8110(a)), the Secretary of Labor may pay a percentage of the forfeited benefits to those dependents, based on the rates in Section 8133(a)(1)-(5)
It is important as the WCS to look for any other benefits that the claimant reports. A review of the file will determine if the CE has investigated the potential for a benefits offset. If any other benefit is noted such state workers’ compensation or Unemployment Compensation the CE should be notified to investigate any potential for offset.
Conclusion
The CA-1032 Form provides agencies with a yearly opportunity to review claims in detail. It helps confirm employment, volunteer work, dependents, and other benefits.
Agencies can use the form to uncover fraud, recover overpayments, reduce costs, and adjust benefits fairly. For WCS, the CA-1032 Form is far more than an administrative requirement—it is a critical tool to protect program integrity and manage workers’ compensation costs.
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Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Please consult your general counsel for specific legal guidance. Frasco investigators are licensed, and our operations comply with US industry, federal, state, and local laws.