How to Fill Out DOL Form CA-1108 (w/Examples) + FAQs

If you are a federal employee who got hurt on the job and then sued a third party for that same injury, you must fill out DOL Form CA-1108 to tell the Office of Workers’ Compensation Programs (OWCP) how much money you recovered and how much you must refund to the United States. The form is the official Statement of Recovery under the Federal Employees’ Compensation Act (FECA), and it locks in the refund the government claims under 5 U.S.C. § 8132.

The problem is simple to state but hard to live with. When a third party (not your federal agency) causes your work injury, FECA pays your medical bills and lost wages first, but the government has a statutory right of reimbursement against your tort recovery under 20 C.F.R. § 10.711, and the U.S. Supreme Court in United States v. Lorenzetti, 467 U.S. 167 (1984) confirmed that this refund applies even to settlement money paid for losses (like pain and suffering) that FECA itself never covers. Miss the form, miscalculate the refund, or pocket the money and you can lose all future FECA benefits, face debt collection from Treasury’s offset program, and trigger personal liability for your attorney under 20 C.F.R. § 10.719.

According to the DOL Office of Inspector General’s Semiannual Report, OWCP recovers tens of millions of dollars each year through FECA third-party subrogation, and the CA-1108 is the single document that drives those numbers. Here is what you will learn in this guide:

• 📝 How to complete every line of CA-1108 without triggering an OWCP rejection
• ⚖️ Why 5 U.S.C. § 8132 and Lorenzetti force you to refund money even for non-economic damages
• 💰 How OWCP calculates the net refund using the FECA Procedure Manual Chapter 2-1100
• 🚫 Seven mistakes that cost claimants thousands and can terminate benefits
• 🧾 Real-world examples with named claimants, dollar figures, and state-law quirks from California to New York

What DOL Form CA-1108 Really Is

The CA-1108 is the OWCP-prescribed Statement of Recovery a FECA claimant (or the claimant’s attorney) signs after settling or winning a third-party tort claim. It tells OWCP the gross recovery, the attorney’s fee, the litigation costs, and the math that produces the federal refund under the formula in the FECA Procedure Manual Part 2, Chapter 2-1100. Without it, the Solicitor of Labor cannot close the third-party file, and your benefits stay frozen.

The form sits inside a small family of OWCP documents that work together. The CA-1045 is your election to pursue or assign the third-party claim, the CA-1122 is the OWCP-issued worksheet that confirms the refund amount, and the CA-1108 is the claimant’s signed statement that closes the loop. The plain-English meaning is this: the government gave you money up front, you sued someone else for the same injury, and now you must pay the government back from what you collected.

The consequence of skipping or fudging the CA-1108 is severe. Under 20 C.F.R. § 10.713, OWCP can suspend, reduce, or terminate compensation until you account for the recovery, and under 20 C.F.R. § 10.719 your attorney is personally liable for the refund if the funds are disbursed without OWCP’s written approval. Picture Maria Alvarez, a Postal Service letter carrier rear-ended on her route in Phoenix; she settled for $250,000 but spent the money before filing CA-1108, and OWCP both terminated her wage-loss benefits and sent her debt to Treasury’s TOP offset program. A common misconception is that pain-and-suffering money is “yours” and off-limits, but Lorenzetti flatly rejected that view.

Who Must File CA-1108

Any FECA beneficiary who recovers money from a third party for the same injury must file. That includes the injured worker, a surviving spouse collecting death benefits, a guardian for a minor child, and the personal representative of a deceased employee’s estate, all under 20 C.F.R. § 10.705. The duty also reaches the claimant’s attorney, who must certify the figures and disburse funds only after OWCP’s written authorization.

If you elected to keep your FECA benefits and pursue the third party (the most common path), you owe the refund. If you assigned the claim to the United States under 5 U.S.C. § 8131, the Solicitor of Labor prosecutes the case and you still get a Statement of Recovery, but the math runs in reverse. The consequence of guessing wrong on who files is delay; OWCP will reject the form and re-issue a CA-1122 worksheet, often months later.

When CA-1108 Is Due

Under 20 C.F.R. § 10.711(b), the form is due within 30 days of receiving the recovery, and the funds must be held in trust until OWCP issues written approval. Picture David Chen, a TSA officer who settled a slip-and-fall claim against an airport contractor in Newark; his lawyer filed CA-1108 within two weeks, OWCP issued the refund letter in 45 days, and David walked away with the statutory one-fifth credit intact.

The consequence of late filing is interest, penalties, and possible referral to Treasury’s Bureau of the Fiscal Service for collection. A misconception is that the 30-day clock starts at settlement signing; it actually starts when the funds clear, per the FECA Procedure Manual.

The Statutory Backbone: Why the Refund Exists

The refund duty flows from three nested rules. 5 U.S.C. § 8131 gives the United States subrogation rights, 5 U.S.C. § 8132 requires the claimant to refund FECA payments out of any third-party recovery, and 20 C.F.R. §§ 10.705–10.719 implement the formula. The plain-English version: Congress did not want injured federal workers to collect twice for the same injury.

The consequence of these rules is that even tax-free pain-and-suffering money is fair game for the refund. The Supreme Court said so in United States v. Lorenzetti, 467 U.S. 167 (1984), holding that § 8132 reaches the entire tort recovery, not just the slice that mirrors FECA benefits. Lower courts have echoed this, including the Federal Circuit’s discussion in Green v. United States and the ECAB’s decisions cataloged in the OWCP database.

A real-world example brings this home. Linda Park, a VA nurse in Los Angeles, sued a non-federal physician for medical malpractice and recovered $600,000; even though California’s MICRA cap on non-economic damages shaped her settlement, OWCP still applied § 8132 to the entire net recovery. A common misconception is that state collateral-source statutes (like New York CPLR § 4545 or Florida § 768.76) reduce the federal refund; they do not, because federal law preempts state offset rules in FECA cases.

The Refund Formula in Plain English

OWCP starts with the gross recovery, subtracts the attorney’s fee actually paid, subtracts allowable litigation costs, and then gives the claimant a credit equal to one-fifth (20%) of the net under 5 U.S.C. § 8132. The remaining four-fifths is the refundable surplus, applied first to FECA disbursements to date, with any leftover credited against future benefits.

The consequence of this formula is that the claimant always keeps something, but the credit shrinks fast when fees and costs are low. Picture a $300,000 settlement with a 33⅓% contingency fee ($100,000) and $15,000 in costs; the net is $185,000, the one-fifth credit is $37,000, and the surplus available to OWCP is $148,000. If FECA paid $90,000 to date, OWCP takes $90,000 and the remaining $58,000 becomes a future-benefits credit per Procedure Manual Chapter 2-1100.

A misconception is that “costs” includes anything the lawyer spent. OWCP allows only court-recognized litigation costs (filing fees, expert witnesses, depositions, medical records); it disallows office overhead, travel meals, and contingency-case financing charges, and the DOL Solicitor’s office routinely audits the cost ledger.

Line-by-Line Walkthrough of CA-1108

The current CA-1108 has five functional parts. Each part exists to capture a discrete piece of information OWCP needs to verify the refund. Skipping any line forces a re-issue and resets the 30-day clock.

Part A — Claimant and Case Identification

Enter the claimant’s full legal name, OWCP file number (the nine-digit number on every CA-7 you have filed), date of injury, and employing federal agency. Use the name exactly as it appears on the CA-1 or CA-2 initial claim, because OWCP’s iFECS system matches files by name and number.

The consequence of a typo is rejection and refiling. Picture James O’Connor, a VA police officer in Boston who entered “James OConnor”; iFECS flagged a mismatch and the refund sat in trust for an extra 60 days. A common misconception is that the date of injury is the date you stopped working; it is the date the injury occurred, even if symptoms appeared later, per 20 C.F.R. § 10.5(ee).

Part B — Third-Party Recovery Details

This part captures the gross recovery, the date funds cleared, the identity of the third-party defendant, the court or forum (if any), and the case caption. Attach a copy of the settlement agreement, release, or judgment. If the recovery is structured (annuity payments), describe the present value calculation and attach the annuity contract.

The consequence of incomplete disclosure is a fraud referral to the DOL Office of Inspector General, which has criminal jurisdiction under 18 U.S.C. § 1920. Picture Robert Singh, a Customs officer who hid a $40,000 medical-payments policy recovery; he was indicted, pleaded guilty, and lost five years of FECA benefits. A misconception is that confidential settlement clauses override the FECA disclosure duty; they do not, because 20 C.F.R. § 10.711 is federal law and a private NDA cannot trump it.

Part C — Attorney Fees and Litigation Costs

List the attorney’s fee actually paid (not just the contingency percentage), the basis of the fee (contingency, hourly, or court-awarded), and an itemized list of allowable costs. The fee must be reasonable under the FECA Procedure Manual Chapter 2-1100, and OWCP can challenge fees above 33⅓% of the gross recovery.

The consequence of inflated fees or padded costs is a downward adjustment that increases the refund. Picture a Texas case where the lawyer billed 40% plus $25,000 in vague “case management” costs; OWCP capped the fee at 33⅓% and disallowed $9,000 of the costs, raising the refund by $19,000. A misconception is that a common-fund doctrine reduces the federal share; in FECA cases it does not, because the United States is not a “fund” beneficiary in the equitable sense, as the Sixth Circuit explained in United States v. Hayes.

Part D — The Refund Calculation

This is the math section. Line 1 is the gross recovery, Line 2 is the attorney’s fee, Line 3 is allowable costs, Line 4 is the net (Line 1 − Line 2 − Line 3), Line 5 is the one-fifth credit (Line 4 × 0.20), Line 6 is the refundable surplus (Line 4 − Line 5), Line 7 is the FECA disbursement to date (provided by OWCP on the CA-1122), and Line 8 is the lesser of Line 6 or Line 7 — that is the refund.

The consequence of math errors is automatic rejection. OWCP cross-checks Line 7 against iFECS disbursement totals, and any discrepancy over $1 stops processing. Picture Aisha Brown, an IRS revenue agent who transposed two digits on Line 7; the form bounced, and her benefits paused for three weeks.

A misconception is that you can round to the nearest hundred; OWCP requires exact dollars and cents, because the surplus is dollar-for-dollar offset against future compensation under 20 C.F.R. § 10.711(d).

Part E — Certifications and Signatures

Both the claimant and the attorney must sign under penalty of perjury. The attorney’s certification triggers personal liability under 20 C.F.R. § 10.719 for any disbursement made before OWCP approval. If the claimant is deceased, the personal representative signs and attaches Letters Testamentary.

The consequence of an unsigned form is that OWCP treats it as not filed, and the 30-day clock keeps running. A common misconception is that an electronic signature via DocuSign is automatically valid; OWCP accepts e-signatures only when accompanied by an audit trail compliant with the E-Sign Act, 15 U.S.C. § 7001.

Three Scenarios With Full Math

Each scenario assumes a $300,000 gross recovery, a 33⅓% contingency fee ($100,000), and $15,000 in allowable costs, producing a $185,000 net, a $37,000 one-fifth credit, and a $148,000 refundable surplus. The differences come from how much FECA paid before the recovery cleared.

Scenario 1 — Postal Auto Accident in Phoenix

Step in Maria’s Case	Dollar Outcome
Gross third-party recovery from at-fault driver	$300,000
Less attorney fee at 33⅓% under contingency contract	−$100,000
Less allowable costs (filing, experts, depositions)	−$15,000
Net recovery on Line 4 of CA-1108	$185,000
Claimant’s one-fifth credit under § 8132	$37,000
Refundable surplus available to OWCP	$148,000
FECA paid to date per CA-1122	$90,000
Cash refund to United States	$90,000
Future-benefits credit OWCP keeps	$58,000

Scenario 2 — VA Nurse Medical Malpractice in Los Angeles

Step in Linda’s Case	Dollar Outcome
Gross malpractice settlement against non-federal physician	$300,000
MICRA cap on non-economic damages already applied at settlement	Embedded in gross
Attorney fee (California MICRA fee schedule)	−$100,000
Allowable costs (medical expert, life-care planner)	−$15,000
Net recovery on Line 4	$185,000
One-fifth claimant credit	$37,000
Refundable surplus	$148,000
FECA paid to date	$200,000
Cash refund to United States (capped at surplus)	$148,000
Future-benefits credit	$0

Scenario 3 — TSA Slip and Fall in Newark

Step in David’s Case	Dollar Outcome
Gross premises-liability recovery from airport contractor	$300,000
Attorney fee at 33⅓%	−$100,000
Costs (site inspection, biomechanical expert)	−$15,000
Net recovery on Line 4	$185,000
One-fifth credit	$37,000
Refundable surplus	$148,000
FECA paid to date	$25,000
Cash refund to United States	$25,000
Future-benefits credit OWCP holds in reserve	$123,000

Mistakes to Avoid

Each mistake below has cost real claimants real money, and each has a fix you can implement before signing the form.

• Filing late after the 30-day window in 20 C.F.R. § 10.711(b); the consequence is interest, penalties, and possible suspension of benefits.
• Disbursing settlement funds before OWCP’s written approval; the consequence under 20 C.F.R. § 10.719 is personal attorney liability for the full refund.
• Excluding pain-and-suffering allocations from the gross recovery; the consequence per Lorenzetti is automatic re-calculation and a fraud flag.
• Padding “costs” with overhead, travel meals, or contingency financing; the consequence is OWCP disallowance and a higher refund.
• Using a state collateral-source offset (like NY CPLR § 4545) to reduce the federal refund; the consequence is rejection because federal law preempts.
• Forgetting the one-fifth credit on Line 5; the consequence is overpaying the United States by 20% of the net.
• Hiding a structured-settlement annuity or med-pay recovery; the consequence is criminal exposure under 18 U.S.C. § 1920.
• Signing for a deceased claimant without Letters Testamentary; the consequence is rejection and probate-court delay.
• Treating the federal refund as a tax deduction; the consequence is an IRS audit because the refund is not a deductible expense.
• Ignoring the CA-1045 election step; the consequence is loss of FECA benefits during the third-party suit.

Do’s and Don’ts

The do’s protect your refund credit; the don’ts protect your benefits.

• Do request the CA-1122 worksheet from OWCP before drafting CA-1108, because the worksheet sets Line 7.
• Do hold settlement funds in the attorney’s IOLTA trust account until OWCP signs off, because that is the rule in § 10.719.
• Do attach the full settlement agreement, release, and cost ledger, because OWCP audits every line.
• Do calculate the one-fifth credit on the net, not the gross, because the statute uses the post-fee figure.
• Do document the date funds cleared, because that starts the 30-day clock.
• Don’t accept a confidential settlement clause that bars FECA disclosure, because federal law overrides private NDAs.
• Don’t agree to a fee above 33⅓% without OWCP pre-approval, because the excess is disallowed.
• Don’t include Medicare or private-insurance liens in the cost line, because those are separate recoveries.
• Don’t sign Part E electronically without an E-Sign Act–compliant audit trail.
• Don’t assume the refund is final until OWCP issues the closing letter, because audits can reopen the case for two years.

Pros and Cons of Filing CA-1108 Promptly

Prompt filing produces leverage; delay produces pain.

• Pro: triggers the one-fifth statutory credit immediately, putting cash in the claimant’s hand.
• Pro: stops the Treasury offset clock and prevents debt referral.
• Pro: preserves future FECA medical benefits, because OWCP applies the surplus as a credit, not a termination.
• Pro: limits attorney personal liability under § 10.719.
• Pro: closes the third-party file with the Solicitor of Labor, allowing the claimant to move forward.
• Con: requires disclosure of confidential settlement terms, which some defendants resist.
• Con: forces immediate refund of cash that the claimant may have planned to spend.
• Con: locks in the math even if later medical bills change the picture.
• Con: triggers OWCP audit rights for two years, extending oversight.
• Con: can shrink contingency fees if OWCP challenges reasonableness under the Procedure Manual.

State-Law Nuances That Affect the Numbers

Federal law sets the refund formula, but state tort rules shape the gross recovery that feeds Line 1. In California, the MICRA non-economic damages cap limits malpractice settlements, which lowers the gross and therefore the refund. In New York, CPLR § 4545 lets defendants offset collateral sources, but federal preemption blocks that offset from reducing the FECA refund.

Florida’s § 768.76 collateral-source rule works the same way, and Texas’s Chapter 41 damages caps on punitive damages can shrink the gross. The consequence is that two identical injuries in two states can produce two very different CA-1108 numbers.

A misconception is that workers’ compensation lien-reduction statutes (like Pennsylvania’s Frazier doctrine) apply to FECA. They don’t, because FECA is exclusively federal and state workers’ compensation rules are irrelevant to § 8132. Practitioners who try to import state lien-reduction theories invariably lose at the Employees’ Compensation Appeals Board (ECAB).

Court Rulings That Shape Every CA-1108

Three decisions dominate the landscape. United States v. Lorenzetti, 467 U.S. 167 (1984) confirms that § 8132 reaches the entire tort recovery, including non-economic damages. Eastern Associated Coal Corp. v. Director, OWCP, 531 U.S. 57 (2000) addresses OWCP’s broad discretion in benefits administration and informs how courts review CA-1108 disputes. ECAB decisions consistently uphold OWCP’s authority to disallow inflated fees and costs.

The consequence of these rulings is that practitioners who challenge the refund formula almost always lose. Picture a Tenth Circuit appeal where the claimant argued Lorenzetti should not apply to wrongful-death proceeds; the court rejected the argument and ordered the full refund. A misconception is that newer cases narrow Lorenzetti; they do not, because Congress has never amended § 8132 to override it.

How CA-1108 Connects to CA-1045 and CA-1122

The CA-1045 is your election form, signed at the start of the third-party claim under 5 U.S.C. § 8131. The CA-1122 is the OWCP-issued worksheet that confirms the FECA disbursement total feeding Line 7 of CA-1108. The CA-1108 closes the file.

The consequence of skipping the CA-1045 is that OWCP can declare your claim assigned to the United States and take over the litigation, leaving you with no fee leverage. Picture Carlos Mendoza, a Border Patrol agent who never filed CA-1045; the Solicitor of Labor intervened, settled for less than Carlos wanted, and Carlos lost his choice of counsel.

A misconception is that filing CA-1108 alone is enough; it isn’t, because OWCP needs the CA-1045 election on file to validate the refund credit. The forms work as a chain, and missing any link breaks the recovery.

FAQs

Do I have to file CA-1108 if I lose the third-party case?

No. If there is no recovery, there is nothing to refund, but you should still notify OWCP in writing under 20 C.F.R. § 10.711 so the file closes cleanly.

Can OWCP waive the refund?

No. OWCP has no statutory authority to waive a § 8132 refund, although it can compromise the amount under the Federal Claims Collection Standards when collection is uneconomical or hardship is proven.

Does pain-and-suffering money count toward the refund?

Yes. Under United States v. Lorenzetti, the entire tort recovery is subject to § 8132, including non-economic damages, even though FECA itself never pays for pain and suffering.

Is the one-fifth credit calculated on gross or net?

No, it is not on gross. The one-fifth credit under 5 U.S.C. § 8132 is calculated on the net recovery after attorney fees and allowable costs are subtracted.

Can I deduct Medicare or private-insurance liens from the gross?

No. Those are separate liens with their own statutes, like the Medicare Secondary Payer Act, and OWCP will not reduce the FECA refund to satisfy them.

Is my attorney personally liable if funds are released early?

Yes. Under 20 C.F.R. § 10.719, the attorney is personally liable for any disbursement made before OWCP issues written approval of the CA-1108.

Can a confidential settlement clause block CA-1108 disclosure?

No. Federal law under 20 C.F.R. § 10.711 preempts private confidentiality agreements, and you must disclose the full settlement terms to OWCP.

Does the refund reduce my future FECA benefits?

Yes, indirectly. Any surplus left after the cash refund becomes a credit against future compensation under 20 C.F.R. § 10.711(d) until the credit is exhausted.

Can I appeal OWCP’s refund calculation?

Yes. You can request reconsideration, a hearing, or review by the Employees’ Compensation Appeals Board (ECAB) within statutory deadlines that range from 30 days to one year.

Do state collateral-source rules reduce the federal refund?

No. State statutes like NY CPLR § 4545 or Florida § 768.76 cannot reduce a § 8132 refund because federal law preempts state offset rules in FECA cases.

Is the CA-1108 refund taxable income to the United States?

No, and it is not deductible to you either; the IRS treats the refund as a return of previously non-taxed FECA benefits, not a deductible loss.

Can a surviving spouse file CA-1108 for a deceased federal worker?

Yes, with Letters Testamentary or equivalent probate authority, and the refund formula in Procedure Manual Chapter 2-1100 applies to wrongful-death proceeds the same way it applies to personal-injury recoveries.