	Background

		Federal Employees’ Compensation Act Program

The Federal Employees’ Compensation Act (FECA) and its implementing  regulations provide compensation for federal civilian employees who  suffer disabilities resulting from work-related injuries or diseases. An incentive to return to work within the FECA program is the reduction of  benefits for partial-disability beneficiaries, as noted in our prior work. DOD Represented 17 Percent of All Claimants Government-Wide in 2015, and Total- Disability DOD Beneficiaries Were Older Than Non-DOD Beneficiaries

		DOD Accounted for about 17 Percent of All FECA Claimants, and DOD Beneficiaries Received Various Types and Levels of Benefits

In 2015, DOD’s FECA claimants represented 17 percent of all FECA  claimants government-wide, and DOD beneficiaries received  approximately $553.7 million worth of benefits (see fig. 2). In  comparison, DOD’s more than 720,000 employees represented about 35  percent of the federal civilian workforce. For  example, in 2015 approximately 35 percent of DOD beneficiaries received  medical benefits only, and about 20 percent received partial- or total- disability benefits. About 31 percent of DOD claimants received cash benefits in 2015,  compared to 26 percent of non-DOD claimants (see fig. In addition, about 56 percent of DOD beneficiaries were at or above their  full Social Security retirement age, compared to 32 percent of non-DOD  beneficiaries. For more information on the age of DOD and non-DOD  beneficiaries, as well as a discussion of total-disability beneficiaries at full  Social Security retirement age, see appendix I.

	DOD Officials We Interviewed Reported Claims Data Are Generally Available to Process FECA Claims, but Said They Experience Challenges Regarding Process Timelines

		DOD Officials Report Generally Sufficient Access to FECA Claims Data and Information Necessary to Carry Out Responsibilities

Most of the DOD injury compensation specialists, liaisons, and program  offices we interviewed reported they had the necessary FECA-related  information to effectively conduct their work. Moreover, without a full understanding of any issues that  may exist, DOD is unable to communicate the scope of any such  problems to DOL. Employing agencies are responsible for returning employees to work, but  DOL is responsible for determining whether a job offer is suitable to return  an employee to work and to obtain a second opinion on an employee’s  medical condition or work capacity. For instance, according to Defense  Civilian Personnel Advisory Service officials, DOD has experienced what  they perceive as lengthy periods waiting for suitability determinations from  DOL, in some instances over a year. DOL officials told us that the  process can take several months due to the exchange of information  among each of the parties involved, including DOL, the employing agency  (such as DOD), and the claimant. However, waiting for such long periods,  according to DOD officials, creates a hardship on the employing agency,  as it must both keep the position open for the injured employee, as well  as continue to pay the claimant until a decision is made. DOL officials stated that if DOD is experiencing ongoing challenges, more  information about these challenges would be helpful to find a solution. Defense Civilian Personnel Advisory Service officials  stated that monitoring information like response times could help them  further understand any issues or problems they may experience and help  inform future communication with DOL. Facilitating return-to-work outcomes can depend on timely job-suitability  determinations. While not generalizable, our discussions with the military  departments’ injury compensation specialists, DOD liaisons, and FECA  program managers indicate that the department may face challenges in  its efforts to work with DOL to effectively manage DOD’s FECA process. However, without monitoring the timelines associated with injury  compensation specialists’ processing of FECA claims—particularly the  significant claims-management actions over which DOL has approving  authority—the department is not positioned to identify the extent to which  delays or inefficiencies are present, at what points in the process they  occur, or any reasons or resolutions for such issues. Recommendation for Executive Action

To help support DOD management of its FECA responsibilities, we  recommend that the Secretary of Defense direct the Office of the Under  Secretary of Defense for Personnel and Readiness, in collaboration with  the Secretaries of the military departments and other defense agency  leaders, to monitor timelines associated with significant FECA claims- management actions in order to identify the extent to which delays or  inefficiencies may be occurring and at what points in the process; to  identify any known reasons for the delays; and to communicate this  information to DOL as appropriate for consideration and action.
Why GAO Did This Study

DOD employs more than 720,000 civilians—approximately 35 percent of the federal civilian workforce—in an array of critical positions worldwide. DOD civilians who are injured or ill as a result of a work-related incident are covered under the DOL-administered FECA program. DOL, along with employing agencies like DOD, works to return injured employees to work and provides compensation for work-related disabilities. In 2015, about 90 percent of DOD's injured workers returned to work within 2 years of injury.
Senate Report 114-49 included a provision that GAO review DOD's use of the FECA program. This report analyzes (1) characteristics of DOD's 2015 FECA claimants and how they compared to non-DOD claimants and (2) the extent to which DOD experiences any challenges managing its FECA responsibilities and facilitating return-to-work outcomes.
GAO analyzed 2015 DOL data to identify characteristics, such as the age and benefit type, of FECA claimants, including those who received benefits that year (beneficiaries). GAO also analyzed relevant law, policies, and guidance on DOL and DOD's management of FECA, and interviewed DOL and DOD officials—including a nongeneralizable sample of DOD program officials.

What GAO Found

The Department of Defense's (DOD) 47,340 civilian employees who filed claims under the Federal Employees' Compensation Act (FECA) made up 17 percent of FECA claimants in 2015, and DOD total-disability beneficiaries (i.e., with no capacity to work) were generally older than those from the rest of government. About 35 percent of DOD beneficiaries received medical benefits only, and 31 percent received cash payments for injury or death—including the nearly 20 percent receiving partial- or total-disability benefits. About 56 percent of DOD total-disability beneficiaries were at or above their full Social Security Retirement age, compared to 32 percent of non-DOD beneficiaries (see figure).
DOD FECA officials that GAO interviewed generally had sufficient access to Department of Labor (DOL) data to manage their FECA responsibilities; however, they reported perceived delays with receiving certain decisions from DOL. As the administrator of FECA, DOL has responsibility and authority for managing all claims, but employing agencies have roles in returning employees to work. DOD FECA program managers, injury compensation specialists, and liaisons GAO interviewed reported experiencing some challenges in instances requiring DOL action or approval, such as determining whether a potential job is suitable in order to return an injured employee to work. According to DOD officials, in some instances such determinations have taken over a year, which could affect DOD as it must both hold the job unfilled and continue to pay compensation until a decision is made. According to DOL, this process can take several months due to the amount of information and communication required among the employing agency, the injured employee, DOL, and other parties, such as an employee's physician. Additionally, DOD has not monitored the timelines associated with requesting DOL action to determine the extent to which delays or related issues may exist across DOD, any known reasons for these issues, and any effect possible delays may have on DOD's return-to-work efforts. DOD officials said that such monitoring could help them understand any issues. DOL officials stated that if DOD experiences challenges, more information could help DOL find a solution. Without monitoring timelines, DOD is not positioned to identify the nature and extent of any problems, make any improvements, or communicate such issues to DOL.

What GAO Recommends

GAO recommends that DOD monitor timelines associated with significant FECA claims-management actions to identify the extent to which delays may occur and any known reasons, and communicate with DOL as appropriate. DOD agreed with the recommendation.