Lawmakers push to reform federal workers’ comp program
Bill introduced by Rep. John Kline would update the benefits for the first time in nearly four decades.
House lawmakers are set to consider reforms to the government's compensation program for federal workers injured on the job.
Rep. John Kline, R-Minn., on July 8 introduced legislation that would alter the federal workers' compensation program for the first time since 1974. The bill would streamline the claims process, update the benefits available to government employees and improve accountability for federal agencies.
"Leaving government programs on autopilot for decades is simply unacceptable," Kline said in a statement. "Congress has a responsibility to ensure the agencies and programs under our jurisdiction serve the best interests of taxpayers and the individuals they were created to serve."
The 1916 Federal Employees' Compensation Act provides basic compensation and medical rehabilitation for government workers who are injured on the job and benefits for surviving dependents in cases of work-related deaths. It covers 2.7 million federal employees and postal workers and from July 1, 2009, to June 30, 2010, paid out $2.78 billion in benefits.
To boost program integrity, the legislation would allow the Labor Department, which administers workers' compensation, to verify federal employees' salaries against Social Security Administration data and collect administrative fees from employing agencies.
The bill also would label injuries sustained due to terrorism as war-risk hazards and provide $6,000 in benefits for funeral expenses and $50,000 for facial disfiguration. The proposal also would permit physician assistants and advanced practice nurses to certify disability for traumatic injuries and ensure that they are reimbursed for their services.
The proposal is not the first to recommend changes to FECA, however. Sen. Susan Collins, R-Maine, in February sponsored legislation that would convert employees on workers' compensation to the appropriate retirement system when they reach retirement age.
At an April hearing, witnesses told House lawmakers that the workers' compensation program is too generous and should be reformed so that employees receive fewer benefits and return to work faster. Currently, workers disabled on the job can receive 66 2/3 percent -- or 75 percent for those with dependents -- of their basic salary tax-free, plus medical-related expenses. There is no age limit for receiving FECA benefits.
Labor is recommending a uniform compensation rate of 70 percent for all claimants and a "conversion entitlement benefit" for FECA recipients when they reach Social Security retirement age that would reduce their wage-loss benefits to 50 percent of their gross salary at the time of injury, but keep it tax-free.
The House Education and Workforce Committee will mark up Kline's bill on Wednesday.