5 U.S.C. § 8131 — Subrogation of the United States

Page 947 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8131 Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface of the report. § 8129. Recovery of overpayments (a) When an overpayment has been made to an individual under this subchapter because of an error of fact or law, adjustment shall be made under regulations prescribed by the Secretary of Labor by decreasing later payments to which the individual is entitled. If the individual dies before the adjustment is completed, adjustment shall be made by decreasing later benefits pay- able under this subchapter with respect to the individual’s death. (b) Adjustment or recovery by the United States may not be made when incorrect pay- ment has been made to an individual who is without fault and when adjustment or recovery would defeat the purpose of this subchapter or would be against equity and good conscience. (c) A certifying or disbursing official is not liable for an amount certified or paid by him when— (1) adjustment or recovery of the amount is waived under subsection (b) of this section; or (2) adjustment under subsection (a) of this section is not completed before the death of all individuals against whose benefits deduc- tions are authorized. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 546.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 788. Sept. 7, 1916, ch. 458, § 38, 39 Stat. 749. Oct. 14, 1949, ch. 691, § 206, 63 Stat. 864. In subsection (a), the words ‘‘Subject to the provi- sions of sections 786 and 787 of this title’’ and ‘‘if any’’ are omitted as surplusage. In subsection (c), the word ‘‘official’’ is substituted for ‘‘officer’’ as the definition of ‘‘officer’’ in section 2104 excludes a member of a uniformed service. Administration of this subchapter was transferred to the Secretary of Labor by section 1 of 1950 Reorg. Plan No. 19, 64 Stat. 1271 (see section 8145). Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. § 8130. Assignment of claim An assignment of a claim for compensation under this subchapter is void. Compensation and claims for compensation are exempt from claims of creditors. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 546.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 775. Sept. 7, 1916, ch. 458, § 25, 39 Stat. 747. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. § 8131. Subrogation of the United States (a) If an injury or death for which continu- ation of pay or compensation is payable under this subchapter is caused under circumstances creating a legal liability on a person other than the United States to pay damages, the Secretary of Labor may require the beneficiary to— (1) assign to the United States any right of action he may have to enforce the liability or any right he may have to share in money or other property received in satisfaction of that liability; or (2) prosecute the action in his own name. An employee required to appear as a party or witness in the prosecution of such an action is in an active duty status while so engaged. (b) A beneficiary who refuses to assign or pros- ecute an action in his own name when required by the Secretary is not entitled to compensation under this subchapter. (c) The Secretary may prosecute or com- promise a cause of action assigned to the United States. When the Secretary realizes on the cause of action, he shall deduct therefrom and place to the credit of the Employees’ Compensation Fund the amount of continuation of pay or compensa- tion already paid to the beneficiary and the ex- pense of realization or collection. Any surplus shall be paid to the beneficiary and credited on future payments of compensation payable for the same injury. However, the beneficiary is en- titled to not less than one-fifth of the net amount of a settlement or recovery remaining after the expenses thereof have been deducted. (d) If an injury or death for which compensa- tion is payable under this subchapter is caused under circumstances creating a legal liability in the Panama Canal Company to pay damages under the law of a State, a territory or posses- sion of the United States, the District of Colum- bia, or a foreign country, compensation is not payable until the individual entitled to com- pensation— (1) releases to the Panama Canal Company any right of action he may have to enforce the liability of the Panama Canal Company; or (2) assigns to the United States any right he may have to share in money or other property received in satisfaction of the liability of the Panama Canal Company. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 546; Pub. L. 90–83, § 1(60), Sept. 11, 1967, 81 Stat. 211; Pub. L. 117–263, div. E, title LIII, § 5305(b)(1), Dec. 23, 2022, 136 Stat. 3254.) HISTORICAL AND REVISION NOTES 1966 ACT Derivation U.S. Code Revised Statutes and Statutes at Large (a)–(c) ....... 5 U.S.C. 776. Sept. 7, 1916, ch. 458, § 26, 39 Stat. 747. Sept. 13, 1960, Pub. L. 86–767, § 207, 74 Stat. 908. (d) ............. 5 U.S.C. 791. Sept. 7, 1916, ch. 458, § 41, 39 Stat. 750. In subsection (d), the first 45 words of section 41 of the Act of Sept. 7, 1916, are omitted as executed. The words ‘‘Panama Canal Company’’ are substituted for ‘‘Panama Railroad Company’’ on authority of the Act of Sept. 26, 1950, ch. 1049, § 2(a) (2), 64 Stat. 1038. Administration of this subchapter was transferred to the Secretary of Labor by section 1 of 1950 Reorg. Plan. No. 19, 64 Stat. 1271 (see section 8145). Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. Page 948 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8132 1967 ACT Section of title 5 Source (U.S. Code) Source (Statutes at Large) 8131(c) ....... 5 App.: 776 (proviso). July 4, 1966, Pub. L. 89–488, § 10(a), 80 Stat. 255. Editorial Notes REFERENCES IN TEXT For definition of Panama Canal Company, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Intercourse. AMENDMENTS 2022—Subsec. (a). Pub. L. 117–263, § 5305(b)(1)(A), in- serted ‘‘continuation of pay or’’ before ‘‘compensation’’ in introductory provisions. Subsec. (c). Pub. L. 117–263, § 5305(b)(1)(B), inserted ‘‘continuation of pay or’’ before ‘‘compensation already paid’’. Statutory Notes and Related Subsidiaries PERSONNEL NOT AFFECTED BY 1967 INCREASE Increases authorized under amendment by Pub. L. 90–83 not applicable to specified personnel, see section 7 of Pub. L. 90–83, set out as a note under section 8103 of this title. § 8132. Adjustment after recovery from a third person If an injury or death for which continuation of pay or compensation is payable under this sub- chapter is caused under circumstances creating a legal liability in a person other than the United States to pay damages, and a beneficiary entitled to continuation of pay or compensation from the United States for that injury or death receives money or other property in satisfaction of that liability as the result of suit or settle- ment by him or on his behalf, the beneficiary, after deducting therefrom the costs of suit and a reasonable attorney’s fee, shall refund to the United States the amount of continuation of pay or compensation paid by the United States and credit any surplus on future payments of com- pensation payable to him for the same injury. No court, insurer, attorney, or other person shall pay or distribute to the beneficiary or his designee the proceeds of such suit or settlement without first satisfying or assuring satisfaction of the interest of the United States. The amount refunded to the United States shall be credited to the Employees’ Compensation Fund. If con- tinuation of pay or compensation has not been paid to the beneficiary, the money or property shall be credited against continuation of pay or compensation payable to him by the United States for the same injury. However, the bene- ficiary is entitled to retain, as a minimum, at least one-fifth of the net amount of the money or other property remaining after the expenses of a suit or settlement have been deducted; and in addition to this minimum and at the time of distribution, an amount equivalent to a reason- able attorney’s fee proportionate to the refund to the United States. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 547; Pub. L. 90–83, § 1(61), Sept. 11, 1967, 81 Stat. 211; Pub. L. 93–416, § 15, Sept. 7, 1974, 88 Stat. 1147; Pub. L. 117–263, div. E, title LIII, § 5305(b)(2), Dec. 23, 2022, 136 Stat. 3254.) HISTORICAL AND REVISION NOTES 1966 ACT Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 777. Sept. 7, 1916, ch. 458, § 27, 39 Stat. 747. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. 1967 ACT Section of title 5 Source (U.S. Code) Source (Statutes at Large) 8132 ........... 5 App.: 777(b) (pro- viso). July 4, 1966, Pub. L. 89–488, § 10(b), 80 Stat. 255. The words ‘‘However, * * * is entitled to retain * * * plus’’ are substituted for ‘‘Provided, That * * * shall have the right to retain * * * and, in addition, to re- tain’’. Editorial Notes AMENDMENTS 2022—Pub. L. 117–263 inserted ‘‘continuation of pay or’’ before ‘‘compensation is payable’’, before ‘‘com- pensation from the United States’’, and before ‘‘com- pensation paid by the United States’’ and substituted ‘‘on his behalf’’ for ‘‘in his behalf’’ and ‘‘If continuation of pay or compensation has not been paid to the bene- ficiary, the money or property shall be credited against continuation of pay or compensation payable to him by the United States for the same injury.’’ for ‘‘If com- pensation has not been paid to the beneficiary, he shall credit the money or property on compensation payable to him by the United States for the same injury.’’ Amendment directing insertion of ‘‘continuation of pay or’’ before ‘‘ ‘compensation paid by the United States’’ was executed to reflect the probable intent of Congress due to the extra opening quotation mark in the quoted text. 1974—Pub. L. 93–416 made minor changes in phrase- ology and inserted provision prohibiting a court, etc., from distributing proceeds of suit or settlement with- out satisfying or assuring satisfaction of the interests of the United States. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–416 effective Sept. 7, 1974, and applicable to any injury or death occurring on or after Sept. 7, 1974, see section 28(a) of Pub. L. 93–416, set out as a note under section 8101 of this title. PERSONNEL NOT AFFECTED BY 1967 INCREASE Increases authorized under amendment by Pub. L. 90–83 not applicable to specified personnel, see section 7 of Pub. L. 90–83, set out as a note under section 8103 of this title. § 8133. Compensation in case of death (a) If death results from an injury sustained in the performance of duty, the United States shall pay a monthly compensation equal to a percent- age of the monthly pay of the deceased em- ployee in accordance with the following sched- ule: (1) To the widow or widower, if there is no child, 50 percent. (2) To the widow or widower, if there is a child, 45 percent and in addition 15 percent for each child not to exceed a total of 75 percent for the widow or widower and children.