20 C.F.R. § 10.422 May compensation payments be issued in a lump sum?
Title 20 - Employees' Benefits
(a) In exercise of the discretion afforded under 5 U.S.C. 8135(a), OWCP has determined that lump-sum payments will not be made to persons entitled to wage-loss benefits (that is, those payable under 5 U.S.C. 8105 and 8106). Therefore, when OWCP receives requests for lump-sum payments for wage-loss benefits, OWCP will not exercise further discretion in the matter. This determination is based on several factors, including: (1) The purpose of the FECA, which is to replace lost wages; (2) The prudence of providing wage-loss benefits on a regular, recurring basis; and (3) The high cost of the long-term borrowing that is needed to pay out large lump sums. (b) However, a lump-sum payment may be made to an employee entitled to a schedule award under 5 U.S.C. 8107 where OWCP determines that such a payment is in the employee's best interest. Lump-sum payments of schedule awards generally will be considered in the employee's best interest only where the employee does not rely upon compensation payments as a substitute for lost wages (that is, the employee is working or is receiving annuity payments). An employee possesses no absolute right to a lump-sum payment of benefits payable under 5 U.S.C. 8107. (c) Lump-sum payments to surviving spouses are addressed in 5 U.S.C. 8135(b).
Title 20: Employees' Benefits
PART 10—CLAIMS FOR COMPENSATION UNDER THE FEDERAL EMPLOYEES' COMPENSATION ACT, AS AMENDED
Subpart E—Compensation and Related Benefits
Adjustments to Compensation
§ 10.422 May compensation payments be issued in a lump sum?
