Does a Workers Compensation Specialist (WCS) continue pursuing a job offer when a claimant elects OPM benefits after the agency issued a job offer while the claimant was collecting OWCP benefits? The answer is Yes.
Why this situation can seem “solved”—but isn’t
This situation occurs often and, at first sight, seems like a good thing. After the agency offers the claimant a job offer, the claimant then elects to collect OPM benefits in lieu of their OWCP benefits. This allows the agency to save money on the chargeback, and the case no longer needs to be managed. Sounds good, right?
Keep managing the job offer—even after OPM election
Partially, since it creates immediate chargeback savings. However, when this occurs the WCS must continue pursuing the job offer. Regardless of the fact the claimant elected OPM benefits after receiving an agency job offer, what is worth noting is that the job offer was issued to the claimant while they were receiving OWCP benefits, and case management action needs to be continued through a final decision of the agency’s job offer. Below, we discuss the two reasons why the WCS needs to continue to manage a claim regarding the situation above.
Reason 1: Prevent a later return to OWCP benefits
The first reason the WCS needs to pursue the job offer is to ensure the claimant cannot elect to come back in the future and receive OWCP benefits. At first thought the WCS may think, “great, the claimant elected OPM benefits, and the agency no longer has to pay the chargeback,” which is true. However, when this occurs it does not create finality to the claim and the claimant can elect to return to collect OWCP benefits.
In this circumstance, since the job offer was issued while the claimant was still receiving OWCP benefits, the WCS needs to continue to pursue the job offer that leads to final termination of the claimant’s benefits. When OWCP issues the termination of benefits, the case becomes closed, and the claimant cannot return to OWCP to collect benefits.
Reason 2: Block costly schedule awards under 5 U.S.C. § 8106(c)
The second reason the WCS needs to continue pursuing the job offer after a claimant has elected OPM benefits is related to the claimant’s ability to receive a schedule award.
When OWCP issues a termination of benefits for failure to accept suitable employment, this prevents the claimant from receiving a scheduled award. When a claimant is terminated for failure to accept suitable employment, this action invokes 5 U.S.C § 8106(c) of the Federal Employees Compensation Act. Under 5 U.S.C § 8106(c) a partially disabled employee who refuses to seek suitable work; or refuses or neglects to work after suitable work is offered to, procured by, or secured for him; is not entitled to compensation.
Scheduled awards can be extremely expensive, in many instances continuing for years or leading to an extremely expensive lump-sum payment. However, by the WCS continuing to pursue the job offer through termination of benefits—thus invoking 5 U.S.C § 8106(c)—the agency will save thousands, if not hundreds of thousands, of dollars in compensation payment and prevents the claimant from returning to OWCP for workers’ compensation benefits.
Appeals: Keep monitoring until the process ends
As a reminder, the claimant can always appeal DOL’s decision. When this occurs the WCS must continue to manage the claim until the appeal process is exhausted. It is important that the WCS monitor the claim until the claimant no longer has any appeal options available; this can require the WCS to monitor the claim for years. Nevertheless, by being proactive in this approach, the agency may save hundreds of thousands of dollars in retroactive compensation payments—even when OPM benefits are in play.
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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.