FECA Reform in Congress – Updated October 2011
For the latest on FECA Reform in Congress, click here Federal Legislative Update – FECA reform 10-25-11
Following hearings in April and May 2011 held by two different Committees in the House of Representatives, staffers for one of the committees is reportedly working on a piece of legislation to be proposed after the July 4th holiday that would reform the system of workers’ compensation for federal employees (known ass “FECA”).
Earlier this year, OWCP unveiled its “FIERA” [Federal Injured Employees' Reemployment Act] proposal, which would effect many changes in the law including an overall decrease in workers’ compensation benefits. OWCP’s proposal, however, met with opposition from federal unions and some members of Congress at the hearings. At this point, there is an effort to create a bipartisan reform bill that reportedly will differ from OWCP’s proposal.
QUICK SUMMARY OF OWCP’S FIERA PROPOSAL PACKAGE
Vocational rehabilitation – can start six months after an injury, even if the employee is not yet considered permanently disabled. Increases maintenance allowance paid to workers in rehab by 50%. Allows OWCP to reimburse employers who hire a previously injured federal worker for up to three years, and allows OWCP to reimburse federal agencies that reemploy injured workers after they suffer a recurrence of disability.
Total disability rates for new injuries payable at 70% of wages for all employees instead of at the current 66-2/3% or 75% of wages (for employees with dependents).
Total disability rates, for new injuries or periods of disability, reduced from 75% or 66-2/3% of wages to 50% of wages after the employee reaches Social Security retirement age and has been receiving benefits for at least a year.
Schedule award benefits payable at 70% of wages for all employees instead of at 66-2/3% or 75% of wages. All awards to be calculated on the pay rate of a GS-11 step 3 employee regardless of the injured employee’s actual wages. Awards to be paid in a lump sum, and also may be paid while employee is receiving wage-loss benefits.
Schedule awards for disfigurement increased from maximum of $3,500.00 to maximum of $50,000.00, for new injuries, with this maximum adjusted yearly for cost-of-living increases.
Requires all disabled claimants receiving benefits for total or partial disability to report earnings, but eliminates this requirement, and the requirement to participate in vocational rehabilitation, after employee’s benefits are reduced due to reaching Social Security retirement age.
Death benefits payable at a maximum of 70% of deceased employee’s wages for all dependents, reduced from current 75% maximum. Adds domestic partners as eligible survivors.
Continuation of Pay [COP] to be recouped by OWCP from third party settlements and credited to federal employing agency that paid it – currently COP cannot be recouped. 45-day period of COP increased to 135 days for employees injured in a zone of armed conflict, and COP for those employees is available for both traumatic and occupational disease claims.
Burial expense reimbursement maximum increased from $800.00 to $6,000.00 for new death claims.
Adds physicians’ assistants and nurse practitioners to the list of recognized medical providers.
Requires employees who have retired to permanently elect to receive either OWCP benefits or retirement (CSRS or FERS) benefits within a reasonable time after retiring.
Imposes a new sanction (suspension of benefits) against employees who fail to cooperate with OWCP field nurses.
Allows new automatic matching of FECA recipients to those receiving earnings per Social Security records to eliminate improper payments.
Allows reimbursement of claims administration expenses to be paid from the Employees’ Compensation Fund and requires federal agencies to pay their fair share of these costs back to OWCP.
MAIN CRITICISMS THAT HAVE BEEN VOICED ABOUT OWCP’S FIERA PROPOSALS
Total disability benefits should not be reduced from 75% to 70% for employees with dependents, as those employees have higher living expenses.
Schedule award benefits should not be calculated on the pay rate of a GS-11 step 3 employee, as that would drastically reduce awards for higher-paid employees.
Death benefits should not be reduced from current maximum of 75% of deceased employee’s wages for all dependents to a maximum of 70%, since some deceased employees have several dependents and the number of such claims is relatively small.
Employees who have retired should not be required to permanently elect to receive either OWCP benefits or retirement (CSRS or FERS) benefits, since some of them retired early on disability retirement while their OWCP claim was not yet even decided, and they should not lose the much higher OWCP benefit if and when it is granted.
CURRENT STATUS
Our office will continue to monitor any legislative proposals that are being discussed, and will be voicing our comments on how such changes might affect injured workers.
© 2011 by Steven E. Brown, A Professional Law Corporation – all rights reserved.
