Should SS count a Schedule Award as income even though IRS, OWCP and OPM doesn''t?

The rules that coordinate benefits between SSA and OWCP or whoever made your decision for federal retirement benefits are not always nice, and don't always coordinate.  However, as you describe it, the left hand doesn't know what the right hand is doing, or the timing of the sharing of information isn't up-to-date. My recommendation is to appeal both decisions and clearly state the facts for both entities.  It may take a lot of paperwork and more than one appeal, but it should sort itself out.  The SSA outcome will likely not change, but I should think you won't have to reimburse money to the Federal Government dollars that you were not paid. Click here for more information about "Reduction to Offset Workers' Compensation or Public Disability Benefits."