Schedule Awards under FECA
Information for Federal Employees About Schedule Awards under FECA
From: Steven E. Brown, A Professional Law Corporation
Voicemail: 1-805-496-9777; 1-800-USA-6927
If you are a Federal (including U. S. Postal Service) civilian employee and have had an on-the-job injury or disease that resulted in permanent impairment to certain parts of your body, you may be entitled to a cash award to compensate you for that loss.
We are frequently contacted by Federal and Postal employees who tell us they have suffered such a permanent injury, but when we ask them if they have applied for a schedule award they say that no one has ever told them about this kind of award. Unfortunately this is not unusual, as it is common for federal HR and workers’ compensation specialists at employing agencies to give out incomplete or simply incorrect information to employees about their workers’ compensation rights under the Federal Employees’ Compensation Act (FECA). Even some union officials appear to be uninformed about these benefits, which can be quite substantial and important to injured workers.
The following is a summary of the Schedule Award provisions of FECA, including how such benefits relate to other pay and benefits federal employees might receive.
1. What is a schedule award? A schedule award is a monetary benefit payable to federal employees, under 5 U.S.C. §8017(c), whose work-related injury or disease permanently affects the function of specific body parts. This award is different from, and can be in addition to, any benefits payable for lost wages.
2. What parts of the body are listed on the schedule? The following body parts, along with the number of weeks of compensation payable for 100% loss of each, are listed on the schedule:
The statute, 5 U.S.C. §8107(c), lists the following body parts on the schedule:
Body part [“member”] ____ # weeks:
(1) arm ………………………………….. 312
(2) leg …………………………………….. 288
(3) hand ………………………………….. 244
(4) foot …………………………………… 205
(5) eye ……………………………………. 160
(6) thumb …………………………………. 75
(7) 1st finger ………………………………. 46
(8) great toe ………………………………… 38
(9) 2nd finger ……………………………… 30
(10) 3rd finger ……………………………… 25
(11) any other toe ………………………….. 16
(12) 4th finger …………………………….. 15
(13) loss of hearing
(A) complete, one ………………… 52
(B) complete, both …………………. 200
A regulation, 20 C.F.R. §10.404 (quoted here in its entirety), interprets the statute and adds to the schedule the following body parts:
Sec. 10.404 When and how is compensation for a schedule impairment paid?
Compensation is provided for specified periods of time for the permanent loss or loss of use of certain members, organs and functions of the body. Such loss or loss of use is known as permanent impairment. Compensation for proportionate periods of time is payable for partial
loss or loss of use of each member, organ or function. OWCP evaluates the degree of impairment to schedule members, organs and functions as defined in 5 U.S.C. 8107 according to the standards set forth in the specified (by OWCP) edition of the American Medical Association’s
Guides to the Evaluation of Permanent Impairment.
(a) 5 U.S.C. 8107(c) provides a list of schedule members. Pursuant to the authority provided by 5 U.S.C. 8107(c)(22), the Secretary has added the following organs to the compensation schedule for injuries that were sustained on or after September 7, 1974:
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Member Weeks
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Breast (one)…………………………………………. 52
Kidney (one)…………………………………………. 156
Larynx………………………………………………. 160
Lung (one)…………………………………………… 156
Penis…………………………………………………. 205
Testicle (one)……………………………………….. 52
Tongue………………………………………………. 160
Ovary (one)………………………………………….. 52
Uterus/cervix and vulva/vagina…………………… 205
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(b) Compensation for schedule awards is payable at 66-2/3 percent of the employee’s pay, or 75 percent of the pay when the employee has at least one dependent.
(c) The period of compensation payable under 5 U.S.C. 8107(c) shall be reduced by the period of compensation paid or payable under the schedule for an earlier injury if:
(1) Compensation in both cases is for impairment of the same member or function or different parts of the same member or function, or for disfigurement; and
(2) OWCP finds that compensation payable for the later impairment in whole or in part would duplicate the compensation payable for the pre-existing impairment.
(d) Compensation not to exceed $3,500 may be paid for serious disfigurement of the face, head or neck which is likely to handicap a person in securing or maintaining employment.
3. When can a federal employee receive a schedule award?
An injured employee cannot receive a schedule award while he or she is receiving temporary total disability – for lost earnings – because of the same injury. An injured employee can, however, receive a schedule award for a period of time in which he or she:
A. Is working, either at his or her normal federal job or elsewhere;
B. Is receiving retirement benefits – either “regular” (optional) or disability benefits under CSRS or FERS;
C. Is receiving retirement benefits under CSRS or FERS and wages from non-federal employment;
D. Is receiving temporary total disability benefits from OWCP for a different injury to a different part of the body;
E. Is receiving another schedule award from OWCP for a different injury to a different part of the body.
If an employee is receiving temporary partial disability benefits – for example, if he or she is working part time and OWCP is paying for the lost hours in workers’ compensation, the employee can opt to receive the larger schedule award and the partial wages for that period instead. This would result in a partial loss of the award, however.
4. How are schedule awards computed?
The award is generally computed on the same basis as total disability benefits for that employee, namely, it is based on the employee’s weekly pay rate, times the compensation rate (2/3, or 3/4 if the employee is married or has another dependent); then, to compute the schedule award, that amount is multiplied by the number of weeks on the schedule, and multiplied again by the percentage of impairment. Example: A schedule award for 25% impairment of an arm to a worker with a $50,000.00 annual salary and a spouse and/or dependent(s) would be: $50,000.00 per year, divided by 52 weeks per year, times 3/4, times 312, times 0.25 = $56,250.00.
5. How can an employee make a claim a schedule award?
Assuming the employee’s claim for the injury or disease has already been accepted by OWCP, the employee can file an OWCP form CA-7, claim for compensation, and indicate in the appropriate box that it is a claim for a schedule award. Medical documentation stating the degree of permanent impairment should accompany the claim form; legal assistance is often helpful in obtaining such medical documentation.
6. How are schedule awards paid?
The award can be paid in payments, once every four weeks like normal “automatic roll” workers’ compensation payments for long-term total disability, or it can be paid in a lump sum under certain conditions. If paid in a lump sum, the total amount will be reduced by 4% true discount and paid at one time.
7 What if the employee’s claim for an award is denied?
as with any OWCP decision reducing or denying benefits, the employee can legally challenge a decision denying a schedule award in a number of ways. The assistance of an attorney is recommended to effectively challenge such a decision.
8. What if the employee does not agree with the amount of the award?
again, as with any OWCP decision, the employee can challenge the amount of the award legally; but he or she should be aware that the percentage loss of use stated by a treating doctor may not be the same percentage that is awardable under the statute and regulation. That percentage is determined by the current edition of the American Medical Association’s Guide to the Evaluation of Permanent Impairment, known as the “AMA Guides”. Often the percentage is determined on the basis of a report from one of OWCP’s doctors, however, and these reports can be successfully challenged by legal counsel.
9. What if the employee no longer works for the federal government or the Postal Service?
As stated above, schedule awards are payable to former employees who are now retired and receiving retirement (pension) benefits. Assuming the disability from performing the employee’s last federal job is permanent – namely, it is expected to last for at least another year – the employee is also entitled to apply for early retirement under FERS or CSRS based on disability. Our office represents federal and Postal employees in both workers’ compensation and disability retirement cases.
CONCLUSION:
Schedule award benefits are often overlooked, but they are an important part of the package of benefits that injured federal workers are entitled to under the law. Coordination of these benefits with pay and other types of benefits is essential in order to maximize the total monetary compensation the employee can receive.
IF YOU NEED ASSISTANCE ABOUT ANY OF THESE MATTERS, PLEASE CALL US.