The IG recommended that the Department of Labor, which administers the program, continue pursuing legislative changes to FECA.
Labor has proposed changing the basic rate of compensation for total disability to 70 percent of the employee’s monthly pay and converting benefits to 50 percent of monthly pay when the employee reaches retirement age, or 1 year after the employee begins receiving compensation, whichever is later.
According to the report, management agreed with the findings and recommendations, adding that FECA reform would likely reduce the Postal Service’s future liabilities associated with on–the-job injuries.
The ranking member of the Senate Homeland Security and Governmental Affairs Committee, Susan Collins, R-Maine, has also introduced FECA reform legislation that would require disabled employees receiving workers’ comp to retire under their applicable retirement program when they reach full-retirement age, as defined by the Social Security Act.
