The Overpayment Path
OWCP's current procedure separates the preliminary overpayment process from the final debt determination. That gives the recipient an opportunity to challenge the debt, fault finding, and—when eligible—request waiver before recovery is finalized.
Read the Calculation Before Arguing About Fault
The preliminary determination should identify the amount of the alleged overpayment, explain how it was calculated and why it occurred, state whether OWCP preliminarily finds the recipient with or without fault, and explain the available response rights.
Does the Debt Exist?
Compare OWCP's dates, entitlement periods, compensation payments, work/earnings information, and other assumptions with the actual record.
Is the Amount Correct?
An overpayment can exist while the amount is still disputed. Review the calculation period and payment figures rather than assuming the stated total is correct.
Is the Fault Finding Correct?
Fault is a separate determination and can control whether waiver is even legally available.
The 30-Day Window Matters
Current FECA regulations and OWCP procedure provide 30 days from the written preliminary notice to present evidence or request a pre-recoupment hearing. Failure to request that hearing within the 30-day period waives that particular hearing right.
“OWCP Made the Mistake” Does Not End the Analysis
Waiver Is Not Available
Under current FECA regulations, a recipient can be found at fault for an overpayment by making a material incorrect statement, failing to provide material information, or accepting a payment the recipient knew or should have known was incorrect.
- Government error alone does not automatically eliminate repayment responsibility.
- OWCP considers the circumstances and the recipient's capacity to recognize the overpayment.
- If the final determination is “with fault,” recovery cannot be waived under the FECA waiver provisions.
Waiver Becomes Possible—not Automatic
A finding of without fault opens the door to waiver analysis, but it does not itself erase the debt.
- OWCP then considers whether recovery would defeat the purpose of FECA.
- OWCP also considers whether recovery would be against equity and good conscience.
- Financial and supporting documentation can become essential to the waiver decision.
Without Fault Is Only Step One
FECA §8129(b) permits recovery to be waived when an incorrect payment was made to an individual who is without fault and recovery would either defeat the purpose of FECA or be against equity and good conscience. OWCP can grant full or partial waiver depending on the circumstances.
If Waiver Depends on Finances, Prove the Finances
Current regulations place responsibility on the overpaid individual to provide requested information concerning income, expenses, and assets. Failure to provide the requested information within 30 days results in denial of waiver until the required information is furnished.
Income
Document wages, compensation, retirement, Social Security, household income, or other income requested by OWCP.
Expenses
Provide evidence supporting claimed ordinary and necessary living expenses rather than relying only on estimated totals.
Assets
Bank balances and other resources requested by OWCP can be relevant to whether recovery defeats the purpose of FECA and to repayment arrangements.
A Special Hearing Before Recovery Is Finalized
The recipient may request a pre-recoupment hearing with the Branch of Hearings and Review within the applicable 30-day period. The hearing can address the existence or amount of the overpayment, fault, and—when the recipient is without fault—waiver.
DECISIONS & APPEALS CENTERFinal Overpayment Determination → Debt Collection
If the overpayment is not repaid or waived, the final determination addresses recovery. Collection can differ depending on whether the individual is still receiving FECA compensation or has other federal payments available for offset.
Ongoing Compensation
OWCP can recover debt by deductions from continuing compensation, subject to the applicable recovery rules and financial circumstances.
Repayment Arrangement
When full repayment is not feasible, financial information can be used to determine a reasonable repayment schedule.
Delinquent Debt
If no good-faith repayment occurs, federal debt-collection tools can include administrative or salary offset and referral to Treasury, credit bureaus, or other collection channels as authorized.
2026 Debt-Collection Update
DOL issued FECA Bulletin 26-03 on March 31, 2026 updating FECA debt-collection procedures, including handling of delinquent debts when the debtor is no longer entitled to continuing FECA payments. That is another reason this Center directs visitors to current OWCP notices rather than relying on old debt-collection instructions.