The Federal Employees’ Compensation Act
(FECA): Workers’ Compensation for Federal
Employees
Scott Szymendera
Analyst in Disability Policy
June 4, 2013
Congressional Research Service
7-5700
www.crs.gov
R42107
CRS Report for Congress
Pr
epared for Members and Committees of Congress

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The Federal Employees’ Compensation Act (FECA)

Summary
The Federal Employees’ Compensation Act (FECA) is the workers’ compensation program for
federal employees. Like all workers’ compensation programs, FECA pays disability, survivors,
and medical benefits, without fault, to employees who are injured or become ill in the course of
their federal employment and the survivors of employees killed on the job. The FECA program is
administered by the Department of Labor (DOL) and the costs of benefits are paid by each
employee’s host agency. Employees of the U.S. Postal Service (USPS) currently comprise the
largest group of FECA beneficiaries and are responsible for the largest share of FECA benefits.
Elements of the FECA program include
• basic disability benefits equal to two-thirds of an injured worker’s pre-disability
wage, which rises to 75% of the pre-disability wage if the worker has any
dependents;
• disability benefits that continue for the duration of disability or the life of the
beneficiary and in cases of traumatic injuries, beneficiaries can receive a
continuation of their full pay for the first 45 days;
• disability benefits for persons with specific permanent partial disabilities, such as
the loss of a limb, for a set number weeks provided by schedules set by statute
and regulation;
• all medical costs associated with covered conditions without any copayments,
cost-sharing, or use of private insurance by the beneficiaries;
• cash benefits for the survivors of employees killed on the job based on the
worker’s wages and a modest benefit for funeral costs; and
• vocational rehabilitation services to assist beneficiaries in returning to work.
This report also focuses on several key policy issues facing the program, including the
disproportionate share of claims and program costs attributed to postal workers, the payment of
FECA benefits after retirement age, the overall level of FECA disability benefits as compared
with those offered by the states, and the administration of the FECA program.
The modern FECA program can trace its roots to 1916 but has not been significantly amended
since 1974. A legislative history of the FECA program is provided in the Appendix.


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Contents
Introduction ...................................................................................................................................... 1
Overview of the FECA Program ...................................................................................................... 1
Statutory and Regulatory Authorities ........................................................................................ 1
Program Financing .................................................................................................................... 1
FECA Benefit and Administrative Costs ............................................................................. 2
Employees Covered by FECA ................................................................................................... 2
Conditions Covered by FECA ................................................................................................... 2
FECA Claims Process ................................................................................................................ 3
Time Limit for Filing FECA Claims ......................................................................................... 3
FECA Compensation Benefits ................................................................................................... 3
Continuation of Pay ............................................................................................................. 3
Partial Disability .................................................................................................................. 3
Total Disability .................................................................................................................... 4
Death ................................................................................................................................... 5
FECA Medical Benefits ............................................................................................................. 5
Vocational Rehabilitation .......................................................................................................... 6
Coordination with Other Benefits .............................................................................................. 6
Coordination with Retirement Benefits for Federal Employees ......................................... 6
Coordination with Disability Retirement Benefits .............................................................. 7
Coordination with Social Security Disability Insurance Benefits ....................................... 7
Coordination with Social Security Retirement Benefits ..................................................... 8
Select Current Issues Facing the FECA Program ............................................................................ 8
FECA and the U.S. Postal Service ............................................................................................. 8
FECA and Retirement Age ...................................................................................................... 10
Policy Considerations ........................................................................................................ 11
FECA Benefit Levels ............................................................................................................... 11
Program Administration .......................................................................................................... 13
Insurance ........................................................................................................................... 13
Settlements ........................................................................................................................ 13
Limited Workers’ Compensation for the United States Life Saving Service and Other
Hazardous Federal Occupations ........................................................................................... 16
The Federal Employees’ Compensation Act of 1916 .............................................................. 17
Congressional Intent .......................................................................................................... 17
Major FECA Amendments ...................................................................................................... 18
1949 Amendments ............................................................................................................. 18
1960 Amendments ............................................................................................................. 20
1966 Amendments ............................................................................................................. 21
1974 Amendments ............................................................................................................. 21
Recent FECA Amendments ..................................................................................................... 23
Change to the FECA Waiting Period for Postal Employees .............................................. 23
Death Gratuity for Federal Employees Killed While Serving Alongside the
Armed Forces ................................................................................................................. 23

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Tables
Table 1. FECA Benefits, FY2010 .................................................................................................... 2
Table 2. FECA Cases, FY2012 ........................................................................................................ 9
Table 3. Lost Time FECA Cases and Lost Production Days due to Injuries, Illnesses, and
Deaths, FY2010 .......................................................................................................................... 10
Table A-1. FECA Scheduled Benefits for Partial Disability Compensation .................................. 15

Appendixes
Appendix A. FECA Scheduled Benefits ........................................................................................ 15
Appendix B. Legislative History of FECA .................................................................................... 16

Contacts
Author Contact Information........................................................................................................... 24

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Introduction
The Federal Employees’ Compensation Act (FECA) is the workers’ compensation system for
federal employees. Every civilian employee of the federal government, including employees of
the executive, legislative, and judicial branches, is covered by FECA, as are several other groups,
including federal jurors and Peace Corps volunteers. In FY2009, the FECA program paid out
more than $2.7 billion in benefits, including $1.8 billion in disability benefits, $847 million in
medical benefits, and $138 million in benefits to the survivors of federal employees killed on the
job.1 In FY2009, administrative expenses made up 4.9% of total program costs.2
Overview of the FECA Program
Statutory and Regulatory Authorities
The FECA program is authorized in statute at 5 U.S.C. Sections 8101 et seq. Regulations
implementing the FECA are provided at 20 C.F.R. Sections 10.00-10.826. The FECA program is
administered by the Department of Labor, Office of Workers’ Compensation Programs (OWCP).
Program Financing
Benefits under FECA are paid out of the federal Employees’ Compensation Fund. This fund is
financed by appropriations from Congress that are used to pay current FECA benefits and that are
ultimately reimbursed by federal agencies through the chargeback process.
Each quarter OWCP provides to all federal agencies with employees receiving FECA benefits an
estimate of the cost of these benefits to assist these agencies in preparing their budget requests.
By August 15 of each year, OWCP sends each agency a statement of their FECA costs for the
previous fiscal year. Each agency must include in its next budget request an appropriation to
cover its FECA costs for the previous fiscal year. Upon receiving this appropriation, or if a non-
appropriated entity of the government, by October 15, the agency must reimburse the Employees’
Compensation Fund for the costs of the FECA benefits provided to its employees.
The administrative costs associated with the FECA program are provided to the DOL through the
appropriations process. In addition, the USPS and certain other non-appropriated entities of the
federal government are required to pay for the “fair share” of the costs of administering benefits
for their employees. In 2010, the USPS paid approximately $61 million in FECA administrative
costs.3

1 Department of Labor, Office of Workers’ Compensation Programs, Annual Report to Congress: FY2009,
Washington, DC, April 27, 2011, p. 7.
2 Ibid., p. 15.
3 United States Postal Service, Office of Inspector General, Postal Service Workers’ Compensation Program Audit
Report, Report Number HR-AR-11-007, Washington, DC, September 30, 2011, p. 8.
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FECA Benefit and Administrative Costs
Table 1 provides data on the costs of providing FECA compensation and medical benefits as well
as administrative costs associated with the FECA program. In FY2010, compensation benefits
made up 68.4% of the nearly $2.9 billion in total FECA benefits and direct administrative costs
made up 5.1% of total program costs.4
Table 1. FECA Benefits, FY2010
Cost
Percentage of

(in thousands of dollars)
Total Benefit Costs
Compensation Benefits
1,976,439
68.4
Medical Benefits
912,882
31.6
Total Benefits
2,889,321
100.0
Source: Ishita Sengupta, Virginia Reno, and John F. Burton, Jr., Workers’ Compensation: Benefits, Coverage, and
Costs, 2010, National Academy of Social Insurance, Washington, DC, August 2012, p. 81.
Employees Covered by FECA
The FECA program covers all civilians employed by the federal government, including
employees in the executive, legislative, and judicial branches of the government. Both full-time
and part-time workers are covered, as are most volunteers and all persons serving on federal
juries. Coverage is also extended to certain groups, including state and local law enforcement
officers acting in a federal capacity, federal jurors, Peace Corps volunteers, students participating
in Reserve Officer Training Corps programs, and members of the Coast Guard Auxiliary and
Civil Air Patrol.
Conditions Covered by FECA
Under FECA, workers’ compensation benefits are paid to any covered employee for any
disability or death caused by any injury or illness sustained during the employee’s work for the
federal government. There is no list of covered conditions nor is there a list of conditions that are
not covered. However, no injury, illness, or death may be compensated by FECA if the condition
was
• caused by the willful misconduct of the employee;
• caused by the employee’s intention to bring about the injury or death of himself
or another person; or
• proximately caused by the intoxication of the employee.
In addition, any person convicted of a felony related to the fraudulent application for or receipt of
FECA benefits forfeits his or her rights to all FECA benefits for any injury that occurred on or

4 Ishita Sengupta, Virginia Reno, and John F. Burton, Jr., Workers’ Compensation: Benefits, Coverage, and Costs,
2010, National Academy of Social Insurance, Washington, DC, August 2012, p. 81. (Hereafter cited as Sengupta et al.,
2012.) Direct administrative costs are OWCP’s costs of administering the FECA program. Indirect administrative costs
are for activities, such as investigations or legal support, outside of OWCP.
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before the date of conviction. The benefits of any person confined in jail, prison, or an institution
pursuant to a felony conviction are suspended for the duration of the incarceration and may not be
recovered.
FECA Claims Process
All FECA claims are processed and adjudicated by OWCP. Initial decisions on claims are made
by OWCP staff based on evidence submitted by the claimant and his or her treating physician.
The law also permits OWCP to order a claimant or beneficiary to submit to a medical
examination from a doctor contracted to the federal government. An employee dissatisfied with a
claims decision may request a hearing before OWCP or an OWCP review of the record of its
decision. A final appeal can be made to the Employees’ Compensation Appeals Board (ECAB).
The decision of the ECAB is final, cannot be appealed, and is not subject to judicial review.
Time Limit for Filing FECA Claims
In general, a claim for disability or death benefits under FECA must be made within three years
of the date of the injury or death. In the case of a latent disability, such as a condition caused by
exposure to a toxic substance over time, the three-year time limit does not begin until the
employee is disabled and is aware, or reasonably should be aware, that the disability was caused
by his or her employment.
FECA Compensation Benefits
Continuation of Pay
In the case of a traumatic injury, an employee is eligible for continuation of pay.5 Continuation of
pay is paid by the employing agency and is equal to 100% of the employee’s rate of pay at the
time of the traumatic injury. Since continuation of pay is considered salary and not compensation,
it is taxed and subject to any deductions normally made against the employee’s salary. Any lost
work time beyond 45 days, or lost time due to a latent condition, is considered either a partial or
total disability under FECA.
Employees of the United States Postal Service must satisfy a three-day waiting period before
becoming eligible for continuation of pay.
Partial Disability
If an employee is unable to work full-time at his or her previous job, but is able to work either
part-time or at a job in a lower pay category, then he or she is considered partially disabled and
eligible for the following compensation benefits:

5 Continuation of pay is defined in the regulations at 20 C.F.R. § 10(ee) as “a condition of the body caused by a specific
event or incident, or series of events or incidents, within a single workday or shift.” Certain groups, including federal
jurors, Peace Corps volunteers, and Civil Air Patrol members, are not eligible for continuation of pay.
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• if the employee is single, a monthly benefit equal to two-thirds of the difference
between the employee’s pre-disability and post-disability monthly wage or
• if the employee has at least one dependent, a monthly benefit equal to 75% of the
difference between the employee’s pre-disability and post-disability monthly
wage.
The compensation benefits paid for partial disability are capped at 75% of the maximum basic
pay at rate GS-15 (GS-15, step 10), are not subject to federal taxation, and are subject to an
annual cost-of-living adjustment. Benefits are paid for the duration of the disability or the life of
the beneficiary.
If an employee’s actual wages do not accurately represent his or her true wage-earning capacity,
or if he or she has no wages, then his or her partial disability benefit is based on his or her wage-
earning capacity as determined by OWCP using a combination of vocational factors and “degree
of physical impairment.”
Scheduled Benefits
In cases in which an employee suffers a permanent partial disability, such as the loss of a limb, he
or she is entitled to a scheduled benefit. The scheduled benefit is in addition to any other partial
or total disability benefits received. An employee may receive a scheduled award even if he or
she has returned to full-time work.6 The list of scheduled benefits is provided in the Appendix A
to this report. If an employee suffers a disfigurement of the face, head, or neck that is of such
severity that it may limit his or her ability to secure or retain employment, the employee is
entitled to up to $3,500 in additional compensation.
Total Disability
If an employee is unable to work at all, then he or she is considered totally disabled and eligible
for the following compensation benefits:
• if the employee is single, a monthly benefit equal to two-thirds of the employee’s
pre-disability monthly wage or
• if the employee has at least one dependent, a monthly benefit equal to 75% of the
employee’s pre-disability monthly wage.
The compensation benefits paid for total disability are capped at 75% of the maximum basic pay
at rate GS-15 (GS-15, step 10), are not subject to federal taxation, and are subject to an annual
cost-of-living adjustment. Benefits are payable until it is determined that the employee is no
longer totally disabled and may continue until the employee’s death.

6 The list of FECA scheduled benefits are provided in statute at 5 U.S.C. Section 8107(c) and in regulation at 20 C.F.R.
Section 10.404(a).
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Death
If an employee dies on the job or from a latent condition caused by his or her employment, the
employee’s survivors are eligible for the following compensation benefits:
• if the employee’s spouse has no children, then the spouse is eligible for a
monthly benefit equal to 50% of the employee’s monthly wage at the time of
death or
• if the employee’s spouse has one or more children, then the spouse is eligible for
a monthly benefit equal to 45% of the employee’s monthly wage at the time of
death and each child is eligible for a monthly benefit equal to 15% of the
employee’s monthly wage at the time of death, up to a maximum family benefit
of 75% of the employee’s monthly wage at the time of death.
Special rules apply in cases in which an employee dies without a spouse or children or with only
children.
If a spouse remarries before the age of 55, then he or she is entitled to a lump-sum payment equal
to 24 months of benefits, after which all benefits cease. If a spouse remarries at the age of 55 or
older, benefits continue for life. A child’s benefits end at the age of 18, or age 23 if the child is
still in school. A child’s benefits continue for life if the child is disabled and incapable of self-
support.
The compensation benefits paid for death are capped at 75% of the maximum basic pay at rate
GS-15, are not subject to federal taxation, and are subject to an annual cost-of-living adjustment.
Additional Death Benefits
The personal representative of the deceased employee is entitled to reimbursement, up to $200, of
any costs associated with terminating the deceased employee’s formal relationship with the
federal government. The personal representative of the deceased employee is also entitled to a
reimbursement of funeral costs up to $800, and the federal government will pay any costs
associated with shipping a body from the place of death to the employee’s home. An employee
killed while working with the military in a contingency operation is also entitled to a special
gratuity payment of up to $100,000 payable to his or her designated survivors.
FECA Medical Benefits
Under FECA, all medical costs—including medical devices, therapies, and medications—
associated with the treatment of a covered injury or illness are paid for, in full, by the federal
government. A FECA beneficiary is not responsible for any coinsurance or any other costs
associated with his or her medical treatment and does not have to use any personal insurance for
any covered medical costs. A published fee schedule is used by OWCP to determine the rate or
reimbursement paid to medical providers.7

7 A copy of the current OWCP medical fee schedule can be found on the Department of Labor website at
http://www.dol.gov/owcp/regs/feeschedule/fee.htm.
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Generally, a beneficiary may select his or her own medical provider and is reimbursed for the
costs associated with transportation to receive medical services. Medical providers must be
authorized by OWCP and can have their authorization removed if it is determined that they are
violating program rules or are involved in fraud.
A FECA beneficiary who is blind, paralyzed, or otherwise disabled such that he or she needs
constant personal attendant care may receive an additional benefit of up to $1,500 per month.
Vocational Rehabilitation
The Secretary of Labor may direct any FECA beneficiary to participate in vocational
rehabilitation, the costs of which are paid by the federal government. While participating in
vocational rehabilitation, the beneficiary may receive an additional benefit of up to $200 per
month. However, any beneficiary who is directed to participate in vocational rehabilitation and
fails to do so may have his or her benefit reduced to a level consistent with the increased wage
earning capacity that likely would have resulted from participation in vocational rehabilitation.
Coordination with Other Benefits
Coordination with Retirement Benefits for Federal Employees
Most federal employees are covered by either the Civil Service Retirement System (CSRS) or the
Federal Employees’ Retirement System (FERS).8 The CSRS covers federal employees initially
hired before January 1, 1984. The FERS covers employees hired on or after that date and CSRS-
eligible employees who voluntarily switched to FERS coverage during “open seasons” held in
1986 and 1987. Employees contribute to the cost of the CSRS and FERS through payroll taxes.
Both the CSRS and FERS provide for defined benefit pensions for retired and disabled federal
employees. The FERS defined benefit pension is smaller than that provided by the CSRS,
however, the FERS also provides for participation in the Social Security system and the Thrift
Savings Plan (TSP), a federally managed defined contribution plan similar to a 401(k) plan
offered to private-sector workers.9
While an injured federal employee is receiving FECA benefits and not working, he or she does
not make any CSRS or FERS contributions, but does continue to accrue time in service for the
purposes of retirement eligibility.10 Because FECA benefits are not considered earnings under
either the Social Security Act or Internal Revenue Code, FECA beneficiaries generally may not
contribute to the Social Security system via the payroll tax or to the TSP.

8 Some federal employees, such as Foreign Service Officers or employees of non-appropriated fund instrumentalities,
are covered by federal retirement systems other than CSRS or FERS. For additional information on the more than 30
types of federal retirement systems, see U.S. General Accounting Office, Public Pensions: Summary of Federal
Pension Plan Data, GAO/AIMD-96-6, February 1996. For additional information on the FERS and CSRS, see CRS
Report 98-810, Federal Employees’ Retirement System: Benefits and Financing, by Katelin P. Isaacs.
9 For additional information on the TSP, see CRS Report RL30387, Federal Employees’ Retirement System: The Role
of the Thrift Savings Plan, by Katelin P. Isaacs.
10 The only payroll deductions taken from FECA benefits are for Federal Employee Health Benefits (FEHB) and basic,
optional, and post-retirement basic life insurance if the employee is enrolled in these programs.
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Once a FECA beneficiary becomes eligible for CSRS or FERS retirement benefits, he or she may
elect to receive these retirement benefits or remain in the FECA program for the duration of
disability. Once this election is made, it may be changed at any time.
That amount of the FERS basic annuity is increased from 1% of the employee’s high-three
average pay to 2% of the high-three average pay for any period during which the employee was
receiving FECA benefits rather than earnings. This provision, enacted in 2003, is designed to
partially replace retirement income lost because of the employee’s inability to contribute to the
Social Security system or the TSP while receiving FECA benefits.11
Coordination with Disability Retirement Benefits
Both the CSRS and FERS offer federal employees who are unable to continue working because
of disabilities the option to take a disability retirement annuity before reaching normal retirement
age.12 For the purposes of the CSRS and FERS disability retirement systems, an employee is
considered disabled and eligible for an annuity if he or she is unable to perform his or her current
federal job and cannot be accommodated with a job at the same rate of pay by his or her
employing-agency because of a medical condition that is expected to last at least one year. An
employee must have five years of service to qualify for disability retirement benefits under CSRS
and 18 months of service under FERS. Generally, the amount of an employee’s disability annuity
is lower than what the employee would have received had he or she worked until normal
retirement age and collected a CSRS or FERS retirement annuity.
As in the cases of a FERS or CSRS retirement annuity, a FECA beneficiary who is also eligible
for CSRS or FERS disability retirement benefits may elect to receive these disability retirement
benefits or remain in the FECA program for the duration of disability. Once this election is made,
it may be changed at any time.
Coordination with Social Security Disability Insurance Benefits
Because FECA is a workers’ compensation program, it is covered by the public disability offset
provisions of Section 224 of the Social Security Act.13 If a FECA beneficiary is also receiving
Social Security Disability Insurance (SSDI) benefits, then the total amount of the beneficiary’s
monthly SSDI benefit, all SSDI benefits paid to his or her spouse or dependents, and his or her
FECA benefit cannot exceed 80% of his or her average monthly wage at the time of his or her
disability.14 The FECA beneficiary’s SSDI benefits, or the benefits for his or her spouse or
dependents, are reduced until the 80% threshold is reached.

11 P.L. 108-92.
12 For additional information on disability retirement under CSRS and FERS, see CRS Report RS22838, Disability
Retirement for Federal Employees, by Katelin P. Isaacs.
13 42 U.S.C. §424a.
14 For additional information on the SSDI program, see CRS Report RL32279, Primer on Disability Benefits: Social
Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), by Umar Moulta-Ali.
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Coordination with Social Security Retirement Benefits
Federal employees covered by the FERS system are also covered by the Social Security system
for their periods of federal employment. If a federal employee covered by FERS is entitled to
both FECA and Social Security retirement benefits, the amount of his or her monthly FECA
benefit is reduced by the amount of his or her Social Security retirement benefit attributable to his
or her federal service.
Select Current Issues Facing the FECA Program
In recent years, Congress and the President have focused their attention on various issues facing
the FECA program. There was significant legislative activity regarding FECA program reform in
both the House and Senate in the 112th Congress. As part of larger U.S. Postal Service (USPS)
reform legislation, the House Committee on Oversight and Government Reform reported
legislation (H.R. 2309) that would have made changes to the FECA program as it applies to postal
workers. The Senate passed legislation (S. 1789) that would have made significant reforms to the
FECA program for all federal employees. The main vehicle for FECA program reform in the
House was H.R. 2465, which was passed by the House and which would have made changes to
the FECA program for all federal employees. Similar legislation is expected to be taken up during
the 113th Congress.
The President has included FECA reform proposals in his FY2012, FY2013, and FY2014
Budgets. The President’s FY2014 FECA reform proposal includes a lower base rate of FECA
compensation, reduced benefits at retirement age to encourage beneficiaries to convert to federal
retirement benefits, a requirement that all agencies pay their “fair share” of program
administrative costs, and provisions that address program integrity and ongoing management of
disability cases.15
FECA and the U.S. Postal Service
The USPS and its employees make up the largest component of the FECA program, and postal
workers are injured on the job at rates disproportionate to the rest of the federal government. As
shown in Table 2, although postal workers make up 21.5% of the federal workforce, they are
responsible for 39.3% of injuries, illnesses, and fatalities that resulted in FECA cases in
FY2012.16
The most significant area in which the experience of the USPS with the FECA program differs
from that of the rest of the government is in the severity and duration of injuries and illnesses that
result in FECA cases. As shown in Table 3, in FY2010, injuries and illnesses to postal workers
resulted in 218.7 lost production days per 100 employees, compared with 77.4 days for the entire
federal government and 34.8 days for non-postal federal entities.17 This means that for every one

15 Department of Labor, FY 2014 Congressional Budget Justification: Office of Workers’ Compensation Programs
Overview, April 2013, pp. 4-5.
16 Department of Labor, Occupational Safety and Health Administration, Federal Injury and Illness Statistics for Fiscal
Year 2012, http://www.osha.gov/dep/fap/statistics/fedprgms_stats12_final.html.
17 Department of Labor, Office of Workers’ Compensation Programs, FY2010 End of Year LPD Report for All
Government, http://www.dol.gov/owcp/dfec/share/lpd/FY20104thQtr/AllGovernment.htm.
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of the 593,850 postal workers, more than two days of work were lost due to injuries, illnesses, or
fatalities and that an estimated total of 1,298,750 production days, or 4,995 work years at the
USPS were lost in FY2010 due to injuries, illnesses, and fatalities.18
Table 2. FECA Cases, FY2012
Employeesa
FECA Casesb
Per 100
Category
Total Percentage Total Percentage
Employees
Federal
Government 2,829,998
100.0 97,238 100.0 3.4
U.S. Postal Service
607,814
21.5
38,206
39.3
6.3
Federal Government,
2,222,184 78.5 59,032 60.7
2.7
excluding U.S. Postal Service
Source: Congressional Research Service (CRS) table with data taken from Department of Labor, Occupational
Safety and Health Administration, Federal Injury and Illness Statistics for Fiscal Year 2012, http://www.osha.gov/dep/
fap/statistics/fedprgms_stats12_final.html.
Note: Numbers may not add due to rounding and the number of federal employees calculated at different times
during the year.
a. Average number of employees during period from December 2011 through March 2012.
b. Includes all new injury, illness, and fatality cases submitted to FECA, less any denied claims.
The USPS was the only federal entity with more than 200 lost production days per 100 employees
in FY2010, and in FY2010 the only two other entities that had at least 150 lost production days
were the Armed Forces Retirement Home and the International Boundary and Water Commission,
small entities with approximately 250 employees each. The USPS in FY2010 was responsible for
60% of the total number of lost production days by the entire federal government.
Given the disproportionate number of injuries and lost production days attributed to the USPS, it
is not surprising that benefits for postal workers make up a disproportionate share of the total
costs of the FECA program. In chargeback year 2009, the FECA program paid approximately
$2.7 billion in total benefits, with nearly $1.1 billion in benefits, or 40% of total benefits, being
paid for claims by postal workers.19
As discussed earlier in this report, in 2006, with the enactment of P.L. 109-435, Congress changed
the application of the three-day waiting period for postal workers with traumatic injuries with the
goal of reducing FECA costs to the USPS. Under this provision, postal workers now must satisfy

18 The total number of lost production days is calculated by CRS based on June 2010 employment data compiled by the
Occupational Safety and Health Administration (OSHA) from various sources and posted on its website at
http://www.osha.gov/dep/fap/statistics/fedprgms_stats10_final.html and on end-of-fiscal year injury data reported by
the Department of Labor on its website at http://www.dol.gov/owcp/dfec/share/lpd/FY20104thQtr/AllGovernment.htm.
Because the number of federal employees fluctuates throughout the year, and because no one agency of the federal
government collects data on employment in the executive, legislative, and judicial branches of the government, the
calculated number of total lost production days must be treated as an estimate. The estimated number of lost work years
is calculated based on 260 work days in a work year.
19 Department of Labor, Office of Workers’ Compensation Programs, Annual Report to Congress: FY2009,
Washington, DC, April 27, 2011, p. 11. A chargeback year runs from July 1 to June 30.
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the three-day FECA waiting period before the beginning of the continuation of pay period, rather
than after this period and before receiving FECA compensation.
Table 3. Lost Time FECA Cases and Lost Production Days due to Injuries,
Illnesses, and Deaths, FY2010
Lost Time Cases
Percentage of
Estimated Lost
Total Federal
Cases Per 100
Production Days
Category
Total Cases
Cases
Employees
Per 100 Employees
Federal Government
47,226
100.0
1.68a 77.4a
U.S. Postal Service
15,311
32.4
2.58b 218.7b
Federal Government,
31,915 67.6 1.44c 34.8c
excluding U.S. Postal Service
Source: The Congressional Research Service (CRS) with data taken from Department of Labor, Occupational
Safety and Health Administration, Federal Injury and Illness Statistics for Fiscal Year 2010, http://www.osha.gov/
dep/fap/statistics/fedprgms_stats10_final.html; and Department of Labor, Office of Workers’ Compensation
Programs, FY2010 End of Year LPD Report for All Government, http://www.dol.gov/owcp/dfec/share/lpd/
FY20104thQtr/Al Government.htm.
Note: Numbers may not add due to rounding and the number of federal employees calculated at different times
during the year.
a. Based on 2,804,206 employees in June 2010.
b. Based on 593,850 employees in June 2010.
c. Based on 2210356 employees in June 2010.
FECA and Retirement Age
Both FECA compensation and medical benefits are payable for the duration of a person’s
disability. There is no maximum duration of benefits and no maximum age at which benefits must
be terminated. Beneficiaries who are eligible for CSRS or FERS retirement or disability annuities
may chose to remain in the FECA program. Given the level of benefits, which can be as high as
75% of a worker’s pre-disability wage; the annual cost-of-living adjustment to benefits; and the
fact that FECA benefits are not taxed, in some cases the monthly FECA benefit is higher than
what would be paid by a CSRS or FERS annuity. In addition, because FECA beneficiaries who
are not working do not pay into either the Social Security system or the TSP, they may be unable
to rely on these programs as a significant source of retirement income.
The Department of Labor reports that although less than 2% of new injury cases stay on the
FECA rolls for more than two years, approximately 45,000 cases currently receive long-term
disability benefits and 15,000, or one-third of these cases involve beneficiaries aged 66 or older.20
The U.S. Postal Service Office of Inspector General reports that the FECA rolls include 9,554

20 U.S. Congress, Senate Committee on Homeland Security and Governmental Affairs, Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District of Columbia, Examining the Federal Workers’
Compensation Program for Injured Employees, 112th Cong., 1st sess., July 26, 2011 (statement of Gary Steinberg,
Acting Director, Office of Workers’ Compensation Programs).
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postal workers aged 55 or older; 3,389 aged 65 or older; and 928 aged 80 or older, including one
aged 99.21
The provision of FECA compensation benefits to workers after retirement age has changed during
the history of the FECA program. Although FECA benefits have always been paid for the
duration of disability, between 1949 and 1974, the administrator of the FECA program was
required to review the amount of benefits paid to each beneficiary at the age of 70 and was
authorized to reduce the amount of such benefits if it was determined that the beneficiary’s wage-
earning capacity had been reduced by his or her age, independent of his or her disability. This
provision was repealed in 1974 with the Senate Committee on Labor and Public Welfare calling
the reduction of benefits at the age of 70 “discriminatory.”22
Policy Considerations
The question of whether FECA benefits should continue past retirement age depends somewhat
on the intent of these benefits. If FECA disability benefits are intended solely to replace income
lost by a worker because of an injury or illness, then one can reasonably argue that these benefits
should stop at retirement age, when the worker would likely voluntarily stop working on his or
her own, and thus no longer have wages to be replaced. It could be argued that the provision of
FECA benefits for wage loss is analogous to the SSDI program, which stops paying benefits
when a disabled beneficiary reaches retirement age. However, SSDI benefits automatically
convert to Social Security retirement benefits at retirement age.
However, if FECA disability benefits are intended to provide some relief to the worker beyond
wage replacement, such as providing additional money that might have been paid by an at-fault
employer through the tort system or guaranteeing a certain minimum standard of living for a
disabled worker, then stopping benefits at any age while the disability continues would violate
this intent and deprive the beneficiary of deserved benefits.
Currently, 14 states and the District of Columbia place limitations on the duration of permanent
total disability benefits under their workers’ compensation systems. These limitations are in the
form of a maximum number of weeks benefits may be paid, a termination of benefits at
retirement or some other age, or a combination of both.23 Federal workers’ compensation benefits
paid through the Longshore and Harbor Workers’ Compensation Act are paid for the duration of
disability or the life of the beneficiary.
FECA Benefit Levels
In general, FECA disability benefits are greater than those offered by state workers’ compensation
systems. For workers with traumatic injuries, FECA offers continuation of pay, at full salary, for
the first 45 days. No state system currently provides any type of continuation of pay, absent the
use of some form of sick or personal leave. Disability benefits under FECA are adjusted annually
to reflect changes in the cost of living, a provision generally not found in state systems.

21 U.S. Postal Service Office of Inspector General, Postal Service Workers’ Compensation Program: Audit Report,
Report Number HR-AR-11-007, September 30, 2011, p. 1.
22 S.Rept. 93-1081, p. 7.
23 Sengupta et al., 2012, pp. 87-95.
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The maximum FECA benefit is based on 75% of the GS-15, Step 10 pay rate, without any
locality adjustments whereas state maximums are generally based on state average wages or the
worker’s own pre-disability wage.24 For 2013, the annual salary at GS-15, Step 10, is $129,517,
whereas the average federal salary for the executive branch in December 2012 was $76,913.25
Thus, the maximum FECA benefit under the current system is higher than it would be if the
FECA system based its maximum benefit level on average wages as is the case in the majority of
the states.
The FECA basic benefit rate for total disability is two-thirds of the worker’s pre-disability wage.
Currently, 36 states and the District of Columbia have total disability benefit rates that are set at
this level.26 Benefits under the federal Longshore and Harbor Workers’ Compensation Act are
also set at two-thirds of the pre-disability wage. New Hampshire’s benefit rate is 60% of the
worker’s pre-disability wage.
Currently, four states have total disability benefit rates that are based on pre-disability or average
wages and that exceed the two-thirds standard. In New Jersey and Oklahoma, benefits are paid at
70% of the worker’s wage at the time of injury whereas benefits in Texas are based on 75% of the
worker’s average wage. In Ohio, benefits are paid at 72% of the pre-disability wage for the first
12 weeks, then are reduced to the standard two-thirds rate.
Six states—Alaska, Connecticut, Iowa, Maine, Michigan, and Rhode Island—base benefits on
net, rather than gross wages. It is generally not possible to compare these benefits to FECA
benefits because of differences in tax rates that affect net income. Three states—Georgia,
Pennsylvania, and Washington—have systems in which there is no direct comparison to the
FECA total disability benefit rate.
Because of the augmented compensation provision of the FECA program, beneficiaries with
dependents, including spouses, may receive total disability benefits at a rate of 75% of their pre-
disability wages. No state pays augmented compensation for dependents, and the 75% benefit rate
is higher than that paid by any comparable state workers’ compensation system. Currently, more
than 70% of FECA beneficiaries are receiving augmented compensation, and thus benefits at the
rate of 75% of their pre-disability wages.27
One comparison of the benefit levels of the FECA program with state workers’ compensation
programs involves the amount of disability benefits paid as a percentage of total program
benefits. In 2010, disability benefits made up 49.9% of the total costs of benefits paid by state
workers’ compensation programs and 68.4% of total benefits paid by the FECA program.28 If one
assumes that the types of injuries faced by federal employees and workers in the private and non-

24 The maximum benefit is only paid to workers with wages at the high end of the GS scale or above, at the time of
injury.
25 Information on the GS-15 salary rate taken from the website of the Office of Personnel Management (OPM) at
http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2013/general-schedule/gs.pdf. Information on
average federal salary taken form the OPM FedScope system online at http://www.fedscope.opm.gov/.
26 Sengupta et al., 2012, pp. 87-95.
27 U.S. Congress, Senate Committee on Homeland Security and Governmental Affairs, Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District of Columbia, Examining the Federal Workers’
Compensation Program for Injured Employees, 112th Cong., 1st sess., July 26, 2011 (statement of Gary Steinberg,
Acting Director, Office of Workers’ Compensation Programs).
28 Sengupta et al., 2012, pp. 24-25.
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federal public sectors are not significantly different and that medical costs are also similar, this
difference can be attributed to the higher level of FECA disability benefits, especially for higher-
wage workers, compared with those offered by state workers’ compensation systems.29
Program Administration
Insurance
The administration of state workers’ compensation systems and the provision of insurance and
benefits differ significantly from the FECA program. The FECA program does not involve any
form of private insurance or private third-party administration of claims or benefits. Essentially,
each federal entity acts like a self-insured employer with OWCP in the role of claims and benefit
manager.
State workers’ compensation benefits are generally provided by private insurance, state insurance
funds, or through self-insurance. All but four states—North Dakota, Ohio, Washington, and
Wyoming—allow for private insurance. In Ohio and Washington, employers may either purchase
insurance from the state fund or self-insure, whereas employers in North Dakota and Wyoming
may not self-insure and must purchase coverage from the state fund. In 22 states, employers may
purchase insurance from either a state fund or private carriers. All states except North Dakota and
Wyoming allow self-insurance. Under the federal Longshore and Harbor Workers’ Compensation
Act, employers may purchase private insurance or self-insure.
Private insurance pays the majority of state workers’ compensation benefits. In 2010, private
insurers paid 56.7% of total state workers’ compensation benefits whereas state funds paid 18.5%
and self-insured firms paid 24.9%.30 Thus, nearly three-quarters of all state workers’
compensation benefits are paid through a system of third-party insurance rather than through the
self-insurance model used by the FECA program.
Settlements
In 43 states and the District of Columbia, workers’ compensation insurers or self-insured firms
may enter into compromise and release settlements with claimants.31 In these settlements, the
insurer or firm agrees to pay the claimant lump-sum or periodic payment in exchange for being
released from all future obligations under the claim. Compromise and release settlements are
commonly used to avoid protracted disputes or litigation involving claims and are common in
cases with potential for long-term payment of benefits. To accept a compromise and release
settlement, the claimant generally must agree to forgo future benefits, which may be higher over
his or her lifetime, in exchange for immediate payment. Insurers or firms must agree to forgo the
possibility of lower future payments because of successfully controverting parts of a claim or the

29 This conclusion is supported by Sengupta et al. who state “The share of benefits for medical care is lower than in
most state programs because federal cash benefits, particularly for higher-wage workers, replace a larger share of pre-
injury wages than is the case in most state programs” (Sengupta et al., 2012, p. 80).
30 Sengupta et al., 2012, pp. 24-25.
31 Peter S. Barth, Compromise and Release Settlements in Workers’ Compensation: Final Report, W.E. Upjohn
Institute for Employment Research, report prepared for the State of Washington, Department of Labor and Industries,
December 21, 2010, pp. 44-45, http://research.upjohn.org/reports/178/.
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death, medical improvement, or return to work of the claimant, in exchange for clearing a claim
off of their books with an immediate payment.
A 2010 study by the W.E. Upjohn Institute for Employment Research found that for 14 large
states (California, Florida, Iowa, Illinois, Indiana, Louisiana, Massachusetts, Maryland, Michigan,
North Carolina, Pennsylvania, Tennessee, Texas, and Wisconsin), for claims that originated
between October 2003 and September 2004, and that had at least seven days of total lost work
time, by March 2007, a median of 19% of these cases had been settled.32
Federal law does not provide for the settlement of FECA claims. Thus, the FECA program and
FECA claimants are not able to take advantage of a tool used in approximately one-fifth of claims
with the potential for long-term benefits, including the types of claims that are likely to result in
beneficiaries receiving benefits well after retirement age.


32 Ibid., p. 43.
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Appendix A. FECA Scheduled Benefits
Table A-1. FECA Scheduled Benefits for Partial Disability Compensation
Loss of Use of Body System
Number of Weeks of Compensation
Scheduled benefits provided by statute [5 U.S.C. § 8107(c)]
Arm 312
Leg 288
Hand 244
Foot 205
Eye 106
Thumb 75
First finger
46
Great toe
38
Second finger
30
Third finger
25
Toe other than great toe
16
Fourth finger
15
Loss of hearing in one ear
52
Loss of hearing in both ears
200
Scheduled benefits provided by regulation [20 C.F.R. § 10.404(a)]
Breast 52
Kidney 156
Larynx 160
Lung
156
Penis 205
Testicle 52
Tongue 160
Ovary
52
Uterus or cervix
52
Vulva or vagina
52
Source: The Congressional Research Service from 5 U.S.C. § 8107(c) and 20 C.F.R. § 10.404(a).
Note: Compensation is equal to two-thirds of the pre-disability wage of a single employee or 75% of the
pre-disability wage of an employee with dependents for the number of weeks indicated.
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Appendix B. Legislative History of FECA
The FECA program has its origins in a law from the late 1800s that covered only the employees
of a federal agency that has long since ceased to exist on its own. The modern FECA system has
its roots in legislation enacted in 1916; many of the basic provisions of this original law, such as
the basic rate of compensation, are still in effect today. Congress passed major amendments to the
1916 legislation in 1949, 1960, 1966, and most recently in 1974. Although these amendments
made significant changes to the FECA program, the basic framework of the program endures as
does the overall intent of Congress through the years to maintain a workers’ compensation system
for federal employees that is in line with the basic principles that have governed workers’
compensation in this country for a century.
Limited Workers’ Compensation for the United States Life Saving
Service and Other Hazardous Federal Occupations
The first workers’ compensation law for federal employees was enacted in 1882 and provided up
to two years of salary to any member of the federal United States Life Saving Service disabled in
the line of duty and two years of salary to his or her survivors in case of a line of duty death.33 In
1908, Congress passed a more comprehensive workers’ compensation law for federal employees
engaged in certain hazardous occupations, such as laborers at federal manufacturing facilities and
arsenals or workers at the construction of the Panama Canal. This law provided workers with up
to one year of salary, after a 15-day waiting period, if disabled due to an employment-related
injury and their survivors with up to a year of salary in case of death.
The 1882 and 1908 federal workers’ compensation laws did not provide universal coverage for all
federal employees. It is estimated that only one-fourth of the federal workforce was covered by
the 1908 law, and the law was clearly designed only to provide coverage for what were seen to be
the most hazardous jobs in the civil service.34 President Theodore Roosevelt recognized this
shortcoming of the law he would eventually sign. Before the 1908 law’s passage, he called on
Congress to pass a workers’ compensation bill that would cover “all employees injured in the
government service” and stated that the lack of such a comprehensive workers’ compensation law
was “a matter of humiliation to the nation.”35
In addition to only covering a small portion of the federal workforce, the 1882 and 1908 laws did
not provide for medical benefits for disabled workers, and the 1908 law only applied in cases of
disability or death arising from injuries and not illnesses.

33 Act of May 4, 1882, ch. 117, 22 Stat. 55 (1882). In 1915 the United States Life Saving Service was merged with the
Revenue Cutter Service to form the United States Coast Guard.
34 Willis J. Nordlund, “The Federal Employees’ Compensation Act,” Monthly Labor Review, September 1991, p. 5.
(Hereafter cited as Nordlund 1991.)
35 U.S. Congress, House Committee on Education and Labor, Subcommittee on Safety and Compensation, Amendments
to Federal Employees’ Compensation Act, hearings on H.R. 1196 and other bills to amend the Federal Employees’
Compensation Act, 86th Cong., 2nd sess., February 10, 23, 24 and March 8, 23, 24, 1960 (Washington: GPO, 1960), p.
124.
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The Federal Employees’ Compensation Act of 1916
President Woodrow Wilson signed the Federal Employees’ Compensation Act, P.L. 64-267, into
law on September 7, 1916, and in so doing extended the protections of the modern workers’
compensation system to nearly all federal employees. This original FECA law remains the basis
for the workers’ compensation system for the federal civil service.
The FECA law provided coverage for nearly all civilian employees of the federal government
injured or killed in line of duty. Coverage was not provided for occupational illnesses. The law
provided full medical coverage for covered injuries to be provided by government physicians and
hospitals or private medical services selected by the government. Disability compensation was
provided, after a three-day waiting period, at a rate of two-thirds of the worker’s wage for total
disability, with adjustments for partial disabilities. Disability benefits were subject to minimum
and maximum levels specified in the law and neither benefits nor these levels were subject to any
cost-of-living or other annual adjustments. The survivors of an employee killed on the job were
entitled to cash benefits based on the worker’s wage and were also entitled to a benefit to help
offset funeral costs.
The 1916 legislation created the Federal Employees’ Compensation Commission, with three
members appointed by the President with the advice and consent of the Senate, to administer the
FECA program. Benefit and administrative costs associated with the program were paid out of the
Employees’ Compensation Fund created by the law and financed with permanently authorized
appropriations.
Congressional Intent
Bringing the Federal System in Line with the States
Congress had several clear intentions when drafting the FECA program in 1916. One such
intention was to bring the protections offered to federal employees in line with those being
offered by a majority of the states at the time, with the House Judiciary Committee reporting that
such state laws were “working with most excellent results.”36 In addition, the committee reported
that the schedule of compensation for disability in FECA was “in line with the best precedents
found in State compensation acts,” especially those in Massachusetts, New York, and Ohio.37
Providing Coverage to all Federal Employees
An additional intention of Congress was to provide workers’ compensation coverage to all federal
employees regardless of occupation, thus correcting what was seen as a shortcoming of the 1908
act. The House Judiciary Committee’s report on the 1916 FECA legislation criticizes the limited
coverage of the 1908 law and states,

36 U.S. Congress, House Committee on the Judiciary, Compensation of Government Employees Suffering Injuries While
on Duty, report to accompany H.R. 15316, 64th Cong., 2nd sess., May 11, 1916, H. Rept. 64-678 (Washington: GPO,
1916), p. 7.
37 Ibid., p. 9.
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The present law, in denying compensation to an injured employee if his occupation was not
“hazardous” goes counter to the theory on which all compensation acts are based, viz, that
the industry shall bear the burden of injuries caused by it.38
This criticism of the limited coverage provided by the 1908 act, and the intention of the FECA
legislation to correct this shortcoming, was echoed by the FECA legislation’s sponsor in the
Senate, Senator George Sutherland. Senator Sutherland, in a Senate Judiciary Committee hearing
on the legislation, stated,
The theory upon which compensation laws are drawn is that you are to compensate for the
injury, not for the risk that the man ran in bringing about the injury; and under modern
thought there is no logical reason for making distinction between what is hazardous and non-
hazardous employment.39
Senator Sutherland reinforced his point with a rather graphic example stating “the clerk who has
his leg cut off in his work about a store is just as effectively deprived of his leg as if it was cut off
by a machine.”40
Major FECA Amendments
Congress has passed major amendments to the FECA program in 1949, 1960, 1966, and most
recently in 1974. In addition, coverage for occupational illnesses was added to the FECA program
in 1924 by P.L. 68-195.
1949 Amendments
The Federal Employees’ Compensation Act Amendments of 1949, P.L. 81-357, brought about the
first set of significant changes to the FECA program since its inception in 1916. The 1949
amendments, in the words of the House Committee on Education and Labor, sought to
“modernize and liberalize” the FECA program, which, according to the Senate Committee on
Labor and Public Welfare, provided “only illusory security for most workers or their families.”41
Increased FECA Coverage
The 1949 amendments expanded the scope of workers covered by the FECA program to include
those classified as “officers” of the United States. The amendments also doubled the maximum
disability benefit level, thus providing for a replacement of a larger portion of federal employee
pay.

38 Ibid., p. 8.
39 U.S. Congress, Senate Committee on the Judiciary, Accident Compensation to Government Employees, hearing on S.
2846, 64th Cong., 1st sess., February 26, 1916 (Washington: GPO, 1916), p. 27.
40 Ibid.
41 U.S. Congress, House Committee on Education and Labor, Amendments to Federal Employees’ Compensation Act,
report to accompany H.R. 3141, 81st Cong., 1st sess., June 6, 1949, H. Rept. 81-729 (Washington: GPO, 1949), p. 23,
hereafter cited as H.Rept. 81-729; and U.S. Congress, Senate Labor and Public Welfare, Amendments to Federal
Employees’ Compensation Act, report to accompany H.R. 3141, 81st Cong., 1st sess., August 4, 1949, S.Rept. 81-836
(Washington: GPO, 1949), p. 29, hereafter cited as S.Rept. 81-836.
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In addition to better meeting the goal of universal coverage of all employees, the inclusion of
federal government officers was intended to provide FECA protections to previously excluded
employees, such as Foreign Service Officers, who may serve in dangerous overseas areas. The
increase in the maximum benefit level was necessary since, at the time, it was estimated by the
Department of Labor (DOL) that 90% of FECA cases involved workers with wages that were
essentially not covered by the program because of the low maximum benefit level.42
Increased FECA Benefits
Several provisions of the 1949 amendments effectively increased FECA benefits for workers and
their survivors. The three-day waiting period for FECA disability compensation was eliminated in
cases of disability lasting more than 21 days. A schedule of benefits for permanent partial
disabilities was created for the first time, which permitted partial disability benefits to be paid
without regard to actual impairment or wage loss. The elimination of the waiting period and
creation of a benefits schedule were intended to bring the FECA program in line with state
workers’ compensation programs and the federal Longshore and Harbor Workers’ Compensation
Act program.43
The 1949 amendments provided for augmented compensation, in the amount of 8.33% of a
workers’ pre-disability wage, in cases in which an injured worker had at least one dependent. This
augmented compensation, along with the standard compensation rate of two-thirds of the
workers’ wage, brought the level of FECA benefits for workers with dependents up to the current
level of 75% of the worker’s pre-disability wage. The benefit level for survivors was similarly
increased. The intent of the augmented-compensation provision was to better ensure that disabled
workers and the survivors of workers killed on the job could provide economically for their
dependents. The two-thirds benefit level for dependents was criticized by the House and Senate
committees that reported the bill as “not sufficient as to ensure reasonable economic security to a
family of a deceased worker where there is a large family.”44 Similar concerns over the adequacy
of the two-thirds benefit level were expressed at a House Committee on Education and Labor
hearing on the 1949 amendments.45
Reduced Benefits at Age 70
Although the 1949 amendments generally increased the level of FECA benefits, the amendments
also required the FECA administrator to review the amount of compensation paid to any person
aged 70 or older. The administrator was provided the authority to reduce the amount of such
benefits if it was determined that the worker’s wage-earning capacity had been reduced because
of age, independent of his or her disability. This provision was opposed by several representatives
from federal employee organizations who testified before the House Education and Labor

42 Nordlund 1991, p. 10.
43 The Longshore and Harbor Workers’ Compensation Act Program was created in 1927. For additional information on
the Longshore and Harbor Workers’ Compensation Act, see CRS Report R41506, The Longshore and Harbor
Workers’ Compensation Act (LHWCA): Overview of Workers’ Compensation for Certain Private-Sector Maritime
Workers, by Scott Szymendera.
44 H.Rept. 81-279, p. 11; and S.Rept. 81-836, p. 20.
45 U.S. Congress, House Committee on Education and Labor, Special Subcommittee, Federal Employees’
Compensation Act Amendments of 1949, hearing on H.R. 3191 and companion bills, 81st Cong., 1st sess., April 11-13
and May 2, 1949.
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Committee. They testified that such a provision was inconsistent with the mandatory federal
employee retirement age of 70, in place at the time, and could cause undue hardships to workers
who, because of their disabilities, had not been able to reach their full-earning potential or who
had reduced pensions because of many years of limited or no earnings.46
Provisions for Vocational Rehabilitation
The 1949 amendments permitted the FECA program administrator to send beneficiaries to receive
vocational rehabilitation services at the government’s expense. The amendments also created a
special supplemental benefit for workers participating in vocational rehabilitation programs.
These provisions were intended to improve the return-to-work prospects of FECA claimants,
which, it was thought, would ultimately benefit both the employee through a return to earning
wages and the government through a reduction in FECA-benefit costs.47
The Exclusive Remedy Rule
The 1949 amendments established that the FECA program would be the exclusive remedy against
the federal government for federal workers with employment-related injuries, illnesses, and
deaths. This provision prohibited employees from seeking to recover economic or non-economic
damages from the government for injuries, illnesses, and deaths covered by FECA and brought
the FECA program in line with one of the general principles of workers’ compensation that was
already written into the workers’ compensation laws in the states.
When the FECA program was created, an exclusive remedy rule was seen as unnecessary because
of the general prohibition against suits against the federal government. However, by 1949, three
factors had combined to result in significant numbers of federal employees choosing to bring
lawsuits against the federal government rather than file for FECA benefits. First, the passage after
1916 of laws, such as the Federal Tort Claims Act, which permitted some suits against the
government.48 Second, some injuries to federal employees occurred while they worked for
government corporations subject to lawsuits. Finally, because FECA benefits are limited by
statute to partial wage replacement and medical benefits, employees felt that they could secure
greater financial benefits from the courts than from the FECA program.49
1960 Amendments
The Chargeback Process
The Federal Employees’ Compensation Act Amendments of 1960, P.L. 86-767, created the
chargeback process in which the Secretary of Labor is required to bill each federal agency for the
costs of FECA benefits provided to their employees in the previous fiscal year so that these
agencies may reimburse the Employees’ Compensation Fund. In addition, these amendments

46 Ibid.
47 H.Rept. 81-279, p. 16; and S.Rept. 81-836, p. 24.
48 For additional information on the Federal Tort Claims Act, see CRS Report 95-717, Federal Tort Claims Act
(FTCA), by Vivian S. Chu.
49 H.Rept. 81-279, p. 14; and S.Rept. 81-836, p. 23.
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required that government corporations also pay their “fair share” of FECA administrative costs to
the government. The chargeback process was intended by Congress to “further the promotion of
safety” among federal agencies by making the agencies ultimately responsible for the costs of
injuries, illnesses, and deaths of their employees.50
1966 Amendments
The Federal Employees’ Compensation Act Amendments of 1966, P.L. 89-488, made two
significant changes to the FECA program. These changes continue to be in effect today.
Use of the GS Scale to Set Minimum and Maximum Benefit Levels
Prior to the enactment of the 1966 amendments, the maximum and minimum levels of FECA
benefits were set by statute and not subject to any automatic adjustments. In 1966, FECA benefits
were still subject to levels enacted as part of the 1949 amendments. According to the Senate
Committee on Labor and Public Welfare, the statutory maximum provided for full benefits for
more than 99% of claimants in 1949, but only 85% of claimants by 1966.51 To address the
difficulty inherent in using statutory changes to keep pace with the growth in federal employees’
wages, the 1966 amendments provide for use of the general schedule (GS) scale as the basis for
the maximum and minimum FECA benefit levels with the maximum level set at 75% of the
highest rate of basic pay at the GS-15 level and the minimum level set at 75% of the lowest rate
of basic pay at the GS-2 level.
Cost-of-Living Adjustment for Benefits
The 1966 amendments provided for an annual cost-of-living adjustment for FECA benefits.52 This
annual adjustment is a unique feature of the FECA program not found in other workers’
compensation systems.
1974 Amendments
The Federal Employees’ Compensation Act Amendments of 1974, P.L. 93-416, made three major
changes to the FECA program. These three changes remain key elements of the program today.

50 U.S. Congress, House Committee on Education and Labor, Federal Employees’ Compensation Act Amendments of
1960, report to accompany H.R. 12383, 86th Cong., 2nd sess., June 2, 1960, H.Rept. 86-1743 (Washington: GPO, 1960),
p. 3; and U.S. Congress, Senate Committee on Labor and Public Welfare, Federal Employees’ Compensation Act
Amendments of 1960, report to accompany H.R. 12383, 86th Cong., 2nd sess., August 27, 1960, S.Rept. 86-1924
(Washington: GPO, 1960), p. 3.
51 U.S. Congress, Senate Committee on Labor and Public Welfare, Federal Employees’ Compensation Act Amendments
of 1966, report to accompany H.R. 10721, 89th Cong., 2nd sess., June 16, 1966, S.Rept. 89-1285, p. 3.
52 The current cost-of-living adjustment is made each year on March 1 and is based on changes in the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-W; all items-United States city average) as measured in
December of each year.
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Continuation of Pay
The 1974 amendments provided for up to 45 days of continuation of pay from a worker’s
employing agency in cases of traumatic injuries covered by FECA. During this period, an injured
employee may receive his or her full pay rather than FECA compensation. Because continuation
of pay is considered income rather than a benefit, it is subject to the federal income tax and is
reduced by all standard payroll deductions.
Congress felt that 45 days of continuation of pay were needed because of the time it often took
for FECA claims to be processed and compensation benefits to begin. In its report on the 1974
amendments, the Senate Committee on Labor and Public Welfare cited a General Accounting
Office report that stated that the average processing time for FECA claims was between 49 and 70
days, a delay that the committee found “creates economic hardship on the injured employee and
his or her family and causes difficult administrative problems for the Secretary of Labor and the
employing agencies.”53
Employee Choice of Physician
The 1974 amendments authorized employees to select their own treating physicians rather than
use doctors employed or selected by the federal government. The right of employees to have free
choice over who provides their medical care was one of the recommendations of the National
Commission on State Workmen’s Compensation Laws in 1972; this provision brought the FECA
program in line with that recommendation as well as with some other workers’ compensation
systems.
Elimination of Reduced Benefits After Age 70
The 1974 amendments removed the provision, enacted as part of the 1949 amendments, requiring
that FECA benefits be reviewed and permitting FECA benefits to be reduced after a claimant
reached the age of 70 to account for the reduced earning capacity that may come with age
independent of any disability. In its report on the 1974 amendments, the Senate Committee on
Labor and Public Welfare provided the following justification for eliminating the reduced benefit
provision:
The Committee finds that such a review places an unnecessary burden on both the employees
receiving compensation and the Secretary. Further, the fact that an employee reaches 70 has
no bearing on his or her entitlement to benefits and is considered discriminatory in the
Committee’s opinion.54

53 U.S. Congress, Senate Committee on Labor and Public Welfare, Federal Employees’ Compensation Act of 1970,
report to accompany H.R. 13871, 93rd Cong., 2nd sess., August 8, 1974, S.Rept. 93-1081 (Washington: GPO, 1974), pp.
3-4, hereafter cited as S.Rept. 93-1081; and U.S. General Accounting Office, Need for a Faster Way to Pay
Compensation Claims to Disabled Federal Employees, B-157593, November 21, 1973, p. 1.
54 S.Rept. 93-1081, p. 7.
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The Federal Employees’ Compensation Act (FECA)

Recent FECA Amendments
There have been no major amendments to the FECA program since 1974. However, the 109th and
110th Congresses did make changes to FECA that partially address two of the issues currently
facing the program.
Change to the FECA Waiting Period for Postal Employees
Section 901 of the Postal Accountability and Enhancement Act, P.L. 109-435, changed the way
the FECA three-day waiting period for compensation is applied to employees of the U.S. Postal
Service (USPS). This provision requires that postal employees satisfy the three-day waiting
period before the continuation of pay period can begin. All other federal employees continue to
serve the three-day waiting period after the conclusion of the continuation of pay period and
before FECA compensation benefits begin.
This provision was based on a recommendation of the President’s Commission on the USPS. The
commission’s recommendation was part of a larger package of FECA reforms for postal
employees intended to reduce the Postal Service’s workers’ compensation costs. Because of what
the commission termed the “unique businesslike charter” of the Postal Service, the commission
recommended that the service’s workers’ compensation system become more in line with the state
workers’ compensation systems that provide coverage for most private-sector businesses.55
Death Gratuity for Federal Employees Killed While Serving Alongside the
Armed Forces
American military operations in Iraq and Afghanistan have been supported by an unprecedented
number of civilian employees, some of whom are serving in hostile areas alongside the Armed
Forces. These deployed civilian employees are covered by FECA, but concerns have been raised
about the adequacy of FECA benefits for those injured or killed while serving in areas of combat,
especially when compared with the benefits available to members of the Armed Forces from the
Departments of Defense and Veterans Affairs.56
Section 1105 of the National Defense Authorization Act for Fiscal Year 2008, P.L. 110-181,
provides for a death gratuity of up to $100,000 to be paid to the survivors of any federal
employee, or employee of a non-appropriated fund instrumentality, who “dies of injuries incurred
in connection with the employee’s service with an Armed Force in a contingency operation.” This
death gratuity is paid in addition to the regular FECA compensation for survivors, but is offset by
any other death gratuities paid by the federal government.

55 President’s Commission on the United States Postal Service, Embracing the Future: Making the Tough Choices to
Preserve Universal Mail Service, Report of the President’s Commission on the United States Postal Service, July 31,
2003, p. 134.
56 See, for example, U.S. Congress, House Committee on Oversight and Government Reform, Subcommittee on
Federal Workforce, Post Office, and the District of Columbia, A Call to Arms: A Review of Benefits for Deployed
Federal Employees, hearing, 111th Cong., 1st sess., September 16, 2009; and U.S. Congress, Senate Committee on
Homeland Security and Governmental Affairs, Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia, Deployed Federal Civilians: Advancing Security and Opportunity in
Afghanistan, hearing, 111th Cong., 2nd sess., April 14, 2010.
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The Federal Employees’ Compensation Act (FECA)


Author Contact Information

Scott Szymendera

Analyst in Disability Policy
sszymendera@crs.loc.gov, 7-0014


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