and the previous Administration69 have identified serious problems in the FECA statute that have yet to be addressed. CBO has analyzed the budgetary implications of some of these proposals.70
On July 26, 2011, the Committee through, its Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia, held a hearing to examine the FECA program and consider proposals for improving it. The Subcommittee heard testimony from the DOL official in charge of administering FECA, the Deputy Director of the Office of Personnel Management, two representatives of employee organizations, and experts from the Government Accountability Office and from the International Association of Industrial Accident Boards and Commissions (IAIABC).71
Based on this record, the Committee found that FECA needs updating and reform in several respects. Because individuals can receive FECA benefits indefinitely, as long as their injury impairs their ability to work, and because those benefits are generally larger than federal retirement benefits, the program creates a financial incentive for injured workers to remain on the FECA rolls up to and beyond retirement age. In addition, the augmented compensation under FECA is out of line with other compensation systems. For example, no state workers compensation systems provide augmentation for dependents, and the 75 percent level of benefit far exceeds that of any comparable compensation program. Whereas state systems deter minor claims by imposing brief waiting periods between the time of injury and the time an employee becomes eligible for benefits, FECA‘s waiting period for non-postal employees does not come until after the 45-days of continuation of pay. The FECA statute also fails to allow the federal government to obtain reimbursement of continuation of pay when third parties are liable for
and the previous Administration69 have identified serious problems in the FECA statute that have yet to be addressed. CBO has analyzed the budgetary implications of some of these proposals.70On July 26, 2011, the Committee through, its Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia, held a hearing to examine the FECA program and consider proposals for improving it. The Subcommittee heard testimony from the DOL official in charge of administering FECA, the Deputy Director of the Office of Personnel Management, two representatives of employee organizations, and experts from the Government Accountability Office and from the International Association of Industrial Accident Boards and Commissions (IAIABC).71Based on this record, the Committee found that FECA needs updating and reform in several respects. Because individuals can receive FECA benefits indefinitely, as long as their injury impairs their ability to work, and because those benefits are generally larger than federal retirement benefits, the program creates a financial incentive for injured workers to remain on the FECA rolls up to and beyond retirement age. In addition, the augmented compensation under FECA is out of line with other compensation systems. For example, no state workers compensation systems provide augmentation for dependents, and the 75 percent level of benefit far exceeds that of any comparable compensation program. Whereas state systems deter minor claims by imposing brief waiting periods between the time of injury and the time an employee becomes eligible for benefits, FECA‘s waiting period for non-postal employees does not come until after the 45-days of continuation of pay. The FECA statute also fails to allow the federal government to obtain reimbursement of continuation of pay when third parties are liable for
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