The Bush administration once again is seeking to change the
way costs are accounted for in the Federal Employees
Compensation Act program, a system that long has been
nettlesome to federal managers who have employees go out
on injury compensation.
Under current policy, most of the costs of FECA benefits–
which go to employees who suffer job-related injuries or
illnesses–the first 45 days of disability typically are
covered by keeping those workers in pay status with their
employing agencies, called the continuation-of-pay period.
For longer-term compensation, most of the costs are charged
back to the beneficiaries’ employing agencies.
Managers have long complained that due to this system, their
budgets are reduced for employees on FECA, even long after
the employee would normally be in retirement–where the
employing agency no longer bears costs. The budget estimates
that in 2006, 163,000 employees will file claims and 57,000
of them will receive long-term benefits at a cost of some
$234 million.
The administration proposes, as it has before, to convert
prospectively retirement-age beneficiaries to an annuity
benefit, as well as to impose an up-front waiting period
before benefits begin, which it says is the rule in state
injury compensation programs. It also seeks to allow the
Department of Labor, which oversees FECA, to recapture
compensation costs from any third parties that might be
held responsible for federal worker injuries or illnesses.
Similar provisions were considered last year as part of
legislation to reform the U.S. Postal Service, although
that bill never reached final enactment due to other issues;
sponsors expect to try again in the current Congress.
Beyond a few hearings, though, Congress has shown only
minimal interest in the FECA program in general and in those
proposals in particular.
