{"data":{"id":"us/20-cfr-10.422","jurisdiction":"us","citation":"20 CFR 10.422","heading":"May compensation payments be issued in a lump sum?","body":"(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:\n(1) The purpose of the FECA, which is to replace lost wages;\n(2) The prudence of providing wage-loss benefits on a regular, recurring basis; and\n(3) The high cost of the long-term borrowing that is needed to pay out large lump sums.\n(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.\n(c) Lump-sum payments to surviving spouses are addressed in 5 U.S.C. 8135(b); payments to beneficiaries under 5 U.S.C. 8137 payable as a lump sum pursuant to 5 U.S.C. 8135 are addressed in part 25 of this title.","path":["Title 20—Employees' Benefits","CHAPTER I—OFFICE OF WORKERS' COMPENSATION PROGRAMS, DEPARTMENT OF LABOR","SUBCHAPTER B—FEDERAL EMPLOYEES' COMPENSATION ACT","PART 10—CLAIMS FOR COMPENSATION UNDER THE FEDERAL EMPLOYEES' COMPENSATION ACT, AS AMENDED","Subpart E—Compensation and Related Benefits"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-20.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:45Z","sha256":"56f3b97e20927c6799bc395d0eec8eaf10b6415e5eac8e96ea7d063ad350989b","source_id":"us-cfr","stale":true,"prev":"us/20-cfr-10.421","next":"us/20-cfr-10.423"},"notice":"GroundRules: Original legal text. Not legal advice."}