Other FECA Changes Proposed

The administration budget further proposes to: add an administrative surcharge to the amount billed to federal agencies for FECA compensation costs related to their employees, “bolstering their incentive to improve workplace safety;” amend FECA to move the waiting period for benefits to immediately following an injury, and apply it to all claims in line with state workers’ compensation systems in order to “deter illegitimate claims;” and for future beneficiaries only, change the program so that individuals over age 65 receive the same benefits as are available under federal retirement programs. The budget says that because FECA benefits are tax-free, they are on average about 25 percent more generous than an individual could receive under retirement benefits, “possibly providing an incentive for individuals to remain on the FECA rolls past when they would otherwise have retired.”