Federal Employees' Compensation Act

The Federal Employees' Compensation Act (FECA) program provides wage loss compensation and payments for medical treatment to federal civilian employees. Administered by the Department of Labor (DOL), FECA covers over 2.7 million federal employees in more than 70 different agencies. FECA costs rose from $1.4 billion in 1990 to $2.6 in 2006, while the federal workforce remained essentially unchanged. While federal civilian employees represent only 2.1% of all workers eligible for workers' compensation benefits, federal programs account for 6% of the benefits paid. Disability benefits under FECA are far greater than those in the state workers' compensation programs. The benefit payments often exceed the former salary of the injured employee. The last congressional hearings on the FECA program were held over thirty years ago. It is unlikely that Congressional review will occur any time soon, as the entrenched bureaucracy that benefits from the FECA program defines and protects its future.