Schedule award paid lump sum at OWCP discretion

A schedule award may be paid in lump-sum if the OWCP determines that such a payment is in the employee’s best interest. Lump-sum payments of schedule award generally will be considered in the employee’s best interest where the employee does not rely upon the schedule award as a substitute for lost wages. An employee does not possess an absolute right to a lump-sum payment of his or her schedule award.

Any individual who would like to request a lump-sum payment of his or her schedule award should be able to show consistent earnings by way of continued employment or receipt of disability payments from Social Security Disability and/or 0PM disability retirement. Without a showing of regular cash flow directly to the injured worker, it is unlikely that a lump-sum award will be granted.

In one case, ECAB upheld the denial of a lump sum payment for a schedule award where the individual showed no continuous income directed to him. He provided that his wife had a consistent salary. Also, that she had additional monthly income from an outside source. ECAB found that income only directed to a spouse was insufficient. It also noted, in that case, that the claimant also owed child support which was being garnished from his regular compensation payments.

Keep in mind that injured workers should return to work or secure ongoing disability or retirement payments before requesting a lump-sum payment of their schedule award.

To contact Steve Barszcz Esq. with additional questions or to get help in your case, please call him TOLL FREE @ 877-655-2667 or write him at Steve@theOWCPattorney.com

© Stephen V. Barszcz, P.A. 2013