OWCP Overpayment Repayment Estimator

Got an OWCP overpayment notice? Before you respond, use this tool to see how long repayment will take at different withholding percentages — so you can request the rate that works for your budget.

Total Overpayment Amount ($)

The total amount shown in your OWCP overpayment decision letter.

Current Weekly Compensation Rate ($)

Your current OWCP weekly compensation payment. Found on your benefit statement or ECOMP.

Withholding Percentage (%)

OWCP's default is typically 15% for periodic roll cases. You can request a lower rate if it causes financial hardship.

Understanding OWCP Overpayments Under FECA

1

What causes an OWCP overpayment? Overpayments occur when OWCP pays more compensation than you were entitled to receive — typically because you returned to work and didn't report it, earnings changed without notification, or a retroactive decision changed your entitlement period.

2

OWCP issues a formal overpayment decision. The decision will state the overpayment amount, the basis for the finding, and whether you were found to be at fault. It will also inform you of your right to request waiver if you were not at fault and repayment would cause financial hardship.

3

You have the right to request waiver. If you were not at fault in causing the overpayment, and recovery would be against equity and good conscience or would cause financial hardship, you may request that OWCP waive (forgive) the overpayment entirely. Submit a waiver request within 30 days of the decision.

4

If waiver is denied or not applicable, repayment begins. For periodic roll cases (OP status), OWCP typically withholds a percentage of your ongoing compensation — the default is often 15% but can be adjusted. For non-periodic roll cases (ON status), you repay directly.

5

You can request a lower withholding rate. If the standard withholding rate causes financial hardship, submit a written request to OWCP with documentation of your financial situation. OWCP has discretion to reduce the withholding rate — this is not automatic, but it is commonly granted.

Tips for Handling an OWCP Overpayment

Act within 30 days. If you believe you were not at fault, request waiver promptly — the clock starts from the date of the overpayment decision, not the date you receive it.
Don't ignore the notice. Failure to respond to an OWCP overpayment can result in referral to the Department of Treasury for collection, including tax refund offsets and wage garnishment.
Request a lower withholding rate in writing. Include documentation of monthly expenses, income, and any financial hardship. OWCP is more likely to approve a reduction with supporting documentation.
Verify the overpayment amount. Request your complete claim file and verify the calculation. OWCP's overpayment calculations can sometimes contain errors.
You can appeal the overpayment decision. If you dispute the finding of fault or the amount, use the Appeal Assistant to determine the right appeal path.
Use the Claims Status Decoder to understand what the ON or OP status code on your claim means.

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