Note 7. Workers’ Compensation Benefits
The Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to covered Federal civilian employees injured on the job, employees who have incurred a work-related occupational disease, and beneficiaries of employees whose death is attributable to a job-related injury or occupational disease. The FECA program is administered by the Department of Labor (DOL), which initially pays valid claims and subsequently seeks reimbursement from the Federal agencies employing the claimants. DOL provides the actuarial liability for claims outstanding at the end of each fiscal year. This liability includes the estimated future costs of death benefits, workers’ compensation, and medical and miscellaneous costs for approved compensation cases. The present value of these estimates at the end of FY 2007 was calculated by DOL using a discount rate of 4.930 percent for FY 2007, and 5.078 percent for FY 2008 and thereafter. At the end of FY 2006, the discount rate used was 5.170 percent for FY 2006, and 5.313 percent for FY 2007 and thereafter. At both September 30, 2007 and 2006, GSA’s actuarial liability totaled $165 million.