Lifetime payments modified under OWCP

Posted on Jan 04, 2014

Numerous proposals are brought before Congress yearly to modify the structure or application of FECA.   The latest is a proposal to limit the lifetime benefits of totally disabled workers.

As the article explains, in fiscal year 2012, there were 115,697 new FECA cases opened.   Just about half, or 48.967 involved a worker who had at least some wage loss from their injury.  There were 48 fatalities, resulting in a payment of death benefits.   The FECA program paid out $3.025 billion dollars in benefits during fiscal year 2012, including 1.956 billion dollars in disability compensation, $929 million in medical benefits and payments, and $140 million in survivor’s benefits.  

Some of these funds are paid to injured workers who continue to be paid their 66 2/3 or 75% portions of their original wages long after they would have been retired had they never been injured in the first place.  The new plan would cap these benefits post retirement age at 50% of wages, and provide more of an incentive to the federal worker to leave the FECA program and receive their earned federal retirement benefits. 

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