---
kind: "section"
citation: "20 C.F.R. § 10.422"
title: "20"
number: "10.422"
heading: "May compensation payments be issued in a lump sum?"
url: "https://uscodex.org/cfr/20/10.422"
---

# §10.422. May compensation payments be issued in a lump sum?

- (a) In exercise of the discretion afforded under [5 U.S.C. 8135(a)](/usc/5/8135.md?p=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](/usc/5/8105.md) and [8106](/usc/5/8106.md)). 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](/usc/5/8107.md) 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](/usc/5/8107.md).
- (c) Lump-sum payments to surviving spouses are addressed in [5 U.S.C. 8135(b)](/usc/5/8135.md?p=b); payments to beneficiaries under [5 U.S.C. 8137](/usc/5/8137.md) payable as a lump sum pursuant to [5 U.S.C. 8135](/usc/5/8135.md) are addressed in [part 25 of this title](/cfr/20/part25.md).

## Notes

### Authority

Authority: 5 U.S.C. 301, 8102a, 8103, 8145 and 8149; 31 U.S.C. 3716 and 3717; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64 Stat. 1263; Secretary of Labor's Order No. 10-2009, 74 FR 218; Pub. L. 117-263.

### Source

Source: 76 FR 37903, June 28, 2011, unless otherwise noted.