Rep. John Hall, D-NY, has introduced legislation that would put on hold fiscal 2007 performance bonuses for top officials in the Department of Veterans Affairs — $16,000 on average according to the Associated Press — until it reduces its disability claims backlog, currently over 600,000, to under 100,000.
The VA Oversight and Investigation Subcommittee is planning a hearing to ask why performance awards are so high given a large budget shortfall in the last Congress due to faulty accounting on the part of some of those receiving large payouts, as well as a bloated claims backlog.
"I do not understand how an under-funded agency has the resources to award a generous bonus package of $3.8 million to its employees at the same time it shoulders a backlog of 600,000 claims and asks veterans to wait months for necessary medical care," Filner said.
The VA reportedly said that the bonuses are necessary to retain and motivate talent to tackle problems.
Hall, who is the chairman of the disability assistance and memorial affairs subcommittee, said the $3.8 million in bonuses, much of it paid to appointees — including a $33,000 bonus for the deputy undersecretary for benefits — reflects poorly on the concept of pay-for-performance.
Disability claims cases average delays of 177 days. Payout for fiscal 2007 bonuses is scheduled for September, leaving about four months to reduce a backlog likely to take far longer, should the ban make it into law by then.
