Press Releases

The Subcommittee on Workforce Protections, chaired by Rep. Tim Walberg (R-MI), today held a hearing to examine ways to reform the Federal Employees’ Compensation Act  (FECA). Members discussed the need to improve the program in order to better serve taxpayers and federal employees.
 
“When you’re talking about a program of this size and cost, making sure that it is operating as efficiently and effectively as possible is imperative,” Chairman Walberg noted. “Concerns have been raised that FECA benefits are too generous and can discourage an employee’s return to work. So we are here today to explore how Congress can modernize the FECA program, to ensure taxpayer dollars are being used in a smart and responsible way, and to make certain this program is serving federal employees as intended.”

Witnesses agreed on the need to reform the FECA program, which has not been meaningfully updated in 40 years. They discussed a specific proposal included in the Obama administration’s fiscal year 2016 budget blueprint for the Department of Labor. The administration’s proposed reforms are intended to, among other changes, improve return-to-work procedures, streamline claims processing, and update benefits levels.

“The federal workforce comprises dedicated, hard-working women and men who are committed to serving the public,” said Leonard Howie III, director of the Office of Workers’ Compensation Programs (OWCP). Howie noted his office is “fully committed to seeing that all injured workers receive the medical care and compensation they deserve, as well as the assistance needed to return to work when able to do so. FECA reform will enable OWCP to achieve those goals more effectively.”

Scott Dahl, Inspector General of the Department of Labor, echoed these concerns, stating, “The department must ensure that FECA benefits are provided in a timely manner to eligible workers, but it must also strive to ensure that compensation benefits are only paid to those who are truly injured and unable to work, and medical benefits are paid for necessary services that were actually provided. We believe that the legislative recommendations we have proposed … would contribute to greater program integrity.”

Hearing participants acknowledged the need to carefully consider the impacts of proposed changes on current and future beneficiaries. “FECA continues to play a vital role in providing compensation to federal employees who are unable to work because of injuries sustained while performing their federal duties,” argued Andrew Sherrill, director of Education, Workforce, and Income Security at the Government Accountability Office. “As policymakers assess proposed changes to FECA benefit levels, they will implicitly be making decisions about what constitutes an adequate level of benefits for FECA beneficiaries before and after they reach retirement age.”

“Throughout this process,” Chairman Walberg concluded, “it’s important that we keep in mind both our responsibility to taxpayers and our commitment to the men and women who make up our federal workforce … I am hopeful that the insights and analysis of those here today will help us better understand the department’s proposal and continue to build on past bipartisan efforts to better meet the needs of a 21st century workforce and more effectively use taxpayer dollars.”

To learn more about today’s hearing, read witness testimony, or to watch an archived webcast, visit www.republicans-edlabor.house.gov/hearings.

 

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