Safe Workplaces Bring Down FECA Costs—Add One
For Immediate Release Contact: Dina Long
May 12, 2011 (202) 572-5500, ext. 7058
Ensuring Safe Workplaces is the Best Way
To Reduce Workers’ Compensation Costs
Washington, D.C. —As a congressional panel today meets to consider the federal program that provides workers’ compensation benefits to federal employees injured on the job, the National Treasury Employees Union (NTEU) makes clear that the best way to improve the program and reduce its costs is by preventing the occurrence of injuries that would lead to claims.
“NTEU is committed to a safe and healthy federal workplace where employees are less likely to ever suffer the injuries that lead to Federal Employees Compensation Act (FECA) claims,” said NTEU President Colleen M. Kelley.
The NTEU leader also noted, in submitted testimony to the House Education and Workforce Subcommittee on Workforce Protections, that this month marks the 100th anniversary of the first workers’ compensation program enacted into law in this country by the state of Wisconsin. The federal government followed suit five years later with a program covering federal employees.
NTEU welcomes congressional review of the federal workers’ compensation program, so long as such a review is broad and comprehensive and never starts or is rigidly limited to benefit payments, President Kelley said.
“The first principle should be making the federal workplace safe by actions to move us toward the goal where no worker need come to work with the possibility it will be his last day on the job because of a workplace injury,” she said.
Kelley underscored NTEU’s opposition to proposals that would cut benefits, and in particular institute a forced retirement provision.
Under FECA, an employee injured on the job and unable to work receives payments equal to 67 percent of his or her wages at the time of injury; the amount is slightly higher if the injured party has family obligations. Kelley pointed out that once receiving payments under FECA, the injured individual receives no further retirement credit or contribution matches, nor is able to make elective contributions to the federal Thrift Savings Plan.
“Forcing a worker at retirement age to give up regular FECA benefits and live on the income from retirement savings put aside up until his or her work life was interrupted by an on-the-job injury would cause grave economic hardship to many disabled employees,” she said.
She also reiterated NTEU’s continuing opposition to elimination of the family benefit, currently an element of FECA. “Because FECA benefits are not taxed, the family allowance does little more than create some equity between the after tax income a worker with dependents and one without would have if not injured,” Kelley said.
The NTEU leader emphasized the union’s willingness to work with policymakers to find ways to reduce the costs of FECA and improve the program’s integrity, but believes the best way make improvements is not by reducing benefits or denying claims, but by preventing the occurrence of injuries.”
She noted that NTEU “has been one of the strongest forces for innovation in the federal workplace,” despite the all-too-often displayed resistance and disinterest of managers in light duty assignments, alternative worksites, disability accommodations “and other actions that could allow FECA recipients to return to work.”
Kelley called for “a change in management practices and culture,” and said “the first step is to end the myth that able-bodied workers are receiving FECA payments, and accept the fact that many injured workers would like to return to work and could do so with open-minded and innovative agency practices.”
NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.
For more information, visit www.nteu.org
Additional contacts: Sheila McCormick, Mike Drapkin, (202) 572-5500