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United States General Accounting Office:



GAO: Testimony:



Before the Subcommittee on Government Efficiency, Financial 

Management and Intergovernmental Relations, Committee on 

Government Reform House of Representatives:



For Release on Delivery at 10:00 a.m. EDT on Thursday May 9, 2002:



U.S. Postal Service:



Workers’ Compensation Benefits for Postal Employees:



Statement of Bernard L. Ungar, Director Physical Infrastructure Issues 

GAO- 02-729T:



Mr. Chairman and Members of the Subcommittee:



Thank you for the opportunity to testify on the Department of Labor’s 

(DOL) Office of Workers’ Compensation Program’s (OWCP) 

administration of the Federal Workers’ Compensation Program (WCP) 

as it pertains to Postal Service employees. In fiscal year 2000, Postal 

Service employees accounted for about one-third of both the federal 

civilian workforce and the $2.1 billion in total WCP costs. Postal 

Service employees also submitted about one-half, or about 85,000, of 
the 

claims during that year to OWCP for new work-related injuries. Because 

U.S. Postal Service employees account for such a large portion of the 

WCP, you asked us to determine whether Postal Service employees were 

receiving the benefits to which they were entitled in a timely manner. 

We provided an initial response to your request on December 21, 2001. 

[Footnote 1]



Among other things, we reported that about 7 percent of the Postal 

Service’s approximately 901,000 total employee workforce filed an 

annual average of 82,594 WCP claims during the period we reviewed. 

Of these claims, about 88 percent were approved and about 12 percent 

were denied annually. We also reported that the automated file records 

indicated a wide variance in the time between the date of injury and 
(1) 

the date of OWCP’s decision regarding the claimant’s entitlement to 

benefits [Footnote 2] and (2) the date of OWCP’s first compensation or 

schedule award payment. [Footnote 3] However, the automated records 

we reviewed did not contain the specific information we needed to 

identify how long it took the injured employees, Postal Service 

supervisors, and OWCP claims examiners to make and process WCP 

claims; nor did the records indicate the amount of time, if any, during 

which injured employees were without income while waiting for 

decisions regarding their claims.



For our current review, we agreed to:



determine the extent to which Postal Service employees provided all of 

the evidence required by OWCP regulations for establishing the 

claimants’ entitlement to WCP benefits; and:



identify the length of time taken by the claimant, Postal Service, and 

OWCP, where applicable, to perform the step-by-step process to (1) 

establish the claimant’s entitlement to benefits; and (2) subsequently 

apply for, approve, and make the first payments for compensation or 

schedule awards. Where applicable, we also compared these times to 

program requirements or performance standards.



We have not completed our analyses, but we are able to provide for this 

testimony some preliminary data on compensation for wage loss and 

schedule awards for injuries or diseases that occurred or were 

recognized as job-related during the 12- month period beginning July 1, 

1997. Because our review is still in process, the data we are 
presenting 

should be viewed as preliminary. We plan to complete our data analyses, 

discuss the results with Postal Service and OWCP officials, and provide 

a final report to you later this summer.



Results in Brief:



The preliminary results of our work so far indicate that the Postal 

Service employees covered by our review who had job-related traumatic 

injuries or occupational diseases almost always provided to OWCP the 

evidence required to make a determination on their entitlement to 

benefits. [Footnote 4] In about 2 percent of the cases, OWCP found that 

evidence was missing for one or more of the elements required by 

OWCP regulations. However, the length of time taken to process claims 

to determine a claimant’s entitlement to WCP benefits or to approve or 

deny claims for compensation varied widely even though all of the cases 

are subject to the same OWCP processing standards. [Footnote 5] 

Because of this variance, we are using the median time to report the 

results of our analyses to compensate for the extreme cases. The median 

time means that 50 percent of the cases were processed at the median 

time or less and 50 percent of the cases were processed in more time 

than the median time during the period covered by our review. 

Accordingly, 50 percent of the cases greater than the median time may 

or may not have met OWCP program requirements or processing 

standards.



The preliminary data indicated the following regarding the median time 

to process (1) claims establishing entitlement to WCP benefits and (2) 

claims for compensation for wage loss and schedule awards.



Specifically, for median claims processing times for establishing 

entitlement to WCP benefits:



Postal Service employees and Postal Service supervisors met the 

applicable time frames set forth by OWCP regulations to process these 

claim forms for both traumatic injuries and occupational diseases.



OWCP claims examiners took 59 days to process traumatic injury 

claims after receiving the notice of injury claim forms from the Postal 

Service. OWCP’s annual operational plan’s performance standards state 

that this process should take 45 days for all but the most complex 
cases. 

However, our data may include “administratively closed” cases, which 

could mean that the overall processing time for these cases is 
overstated. 

[Footnote 6] Prior to this hearing, we did not have time to consider 
what 

portion, if any, of our traumatic injury claims were administratively 

closed for any period of time, but we plan to do so when we complete 

our data analysis. For occupational disease claims, our analysis showed 

that OWCP processed these forms within the 6- to 12-month time limit 

for simple to complex occupational disease cases set by OWCP’s 

performance standards.



Regarding the median time to process compensation claims for wage 

loss or schedule award:



The case files did not contain the information that would enable us to 

determine whether the claims for compensation were prepared and filed 

by the employees within the time frame set forth by OWCP regulations.



Once a traumatic injury or occupational disease claim form for 

compensation was prepared and submitted to the Postal Service 

supervisor, the supervisor completed the agency portion of the forms 
and 

transmitted them to OWCP within the time limit set forth by OWCP 

regulations.



OWCP claims examiners took 23 days to process traumatic injury 

compensation claims for wage loss and schedule awards. OWCP’s 

performance standard for these claims, excluding schedule awards, state 

that all payable claims should be processed within 14 days, as measured 

from the date of receipt to date payment is entered into OWCP’s 

automated compensation payment system. Prior to this hearing, we did 

not have the time to consider what portion of our cases were claims for 

schedule awards nor their impact, if any, on the claims processing 
times. 

We plan to do so when we complete our analysis. For occupational 

disease claims, our analysis showed that upon receipt, OWCP claims 

examiners took 22 days to make the initial payment for the approved 

claims. OWCP did not establish an administrative performance standard 

for occupational disease claims.



Finally, the preliminary results of our case file review indicate that 

during the time between the date of injury or recognition of the 
disease 

as job-related to the date of the first compensation payment, injured 

employees often (1) continued working in a light-duty capacity, (2) 

received continuation of pay (COP) [Footnote 7], while absent from 

work for up to 45 days, or (3) went on paid annual or sick leave until 
the 

point at which they actually missed work and their pay stopped. We 

have not had time to determine prior to this hearing how many, if any, 

employees went without income while waiting for their first 

compensation payment or whether annual or sick leave was restored 

after compensation was approved.



Scope and Methodology:



Before presenting additional preliminary results, I would like to 
provide 

some information on our scope and methodology. Specifically, we are 

interviewing key OWCP and Postal Service officials in Washington, 

D.C., to discuss and collect pertinent information regarding the 

employees’ claims for WCP eligibility and for compensation for lost 

wages and schedule awards. Additionally, we collected and reviewed a 

total of 483 Postal Service employee WCP case files located at the 12 

OWCP district offices throughout the country. For the 12-month period 

beginning July 1, 1997, we randomly selected the claims and obtained 

case file records for injuries that occurred or were recognized as job-

related during this period on the basis of the type of injury involved: 

traumatic or occupational; and on the basis of their approval or 

nonapproval for WCP benefits and compensation or schedule award 

payments. We chose this period of time because we believed it was 

current enough to reflect ongoing operations, yet historical enough for 

most, if not all, of the claims to have been decided upon. Also, in 

discussing the preliminary results, we generally present our analyses 
of 

claim processing times in terms of the “median” time to process cases 

covered by our review. This means that 50 percent of the cases were 

processed in the median time or less, and 50 percent of the cases were 

processed in more time than the median.



We did our work from January to May 2002 in accordance with 

generally accepted government auditing standards. We have not had 

enough time to fully analyze all of the data we collected, including 

analyzing the total percentage of claims processed within specified 

processing standards, or to fully discuss the data with Postal Service 
or 

OWCP officials. Accordingly, we are limiting our discussion to median 

time intervals between the major steps in the WCP claims process up 

until the time of the decision on the claim and initial compensation 

payment.

 

Among other things, prior to this hearing, we did not have the time to 
(1) 

pinpoint and evaluate specific problems that may have affected the time 

to process the cases we reviewed, (2) address issues OWCP raised on 

how the claims processing times might be affected by “administrative 

closures” or schedule awards, or (3) evaluate numerous other factors 
that 

may have affected overall claims processing. Our work has not included 

an analysis of any time involved in the appeal process of any claim we 

reviewed, nor did we evaluate the appropriateness of OWCP’s decisions 

on approving or denying the claims. More detail about our sampling 

plan is presented in appendix I.



Background: Employing Agencies Partner With OWCP to Administer 

WCP:



Although OWCP is charged with implementing the WCP, there is a 

federal partnership between OWCP and the employing federal agencies 

for administering the WCP. In this partnership, federal agencies, 

including the Postal Service, provide the avenue through which injured 

federal employees prepare and submit their notice of injury forms and 

claims for WCP benefits and services to OWCP. Additionally, 

employing agencies are responsible for paying normal salary and 

benefits to those employees who miss work for up to 45 calendar days, 

during a 1- year period, due to a work-related traumatic injury for 
which 

they have applied for WCP benefits. After receiving the claim forms 

from the employing agencies, OWCP district office claims examiners 

review the forms and supporting evidence to decide on the claimant’s 

entitlement to WCP benefits or the need for additional information or 

evidence, determine the benefits and services to be awarded, approve or 

disapprove payment of benefits and services, and manage and maintain 

WCP employee case file records. If additional information or other 

evidence is needed before entitlement to WCP benefits can be 

determined, OWCP generally corresponds directly with the claimant or 

the WCP contact at the applicable Postal Service locations.



Evidence Required by OWCP Regulations to Determine Entitlement to 

WCP:

 

Benefits Is Nearly Always Provided:



OWCP regulations require that evidence needed to determine a 

claimant’s entitlement to WCP benefits meet five requirements. These 

requirements are as follows:



The claim was filed within the time limits specified by law.



The injured or deceased person was, at the time of injury or death, an 

employee of the United States.



The injury, disease, or death did, in fact, occur.



The injury, disease, or death occurred while the employee was in the 

performance of duty.



The medical condition for which compensation or medical benefits is 

claimed is causally related to the claimed job-related injury, disease, 
or 

death. [Footnote 8]



Such evidence, among other things, must be reliable and substantial as 

determined by OWCP claims examiners. If the claimant submits factual 

evidence, medical evidence, or both, but OWCP determines the evidence 

is not sufficient to meet the five requirements, OWCP is required to 

inform the claimant of the additional evidence needed. The claimant 

then has at least 30 days to submit the evidence requested. 
Additionally, 

if the employer-in this case, the Postal Service-has reason to disagree 

with any aspect of the claimant’s report, it can submit a statement to 

OWCP that specifically describes the factual allegation or argument 
with 

which it disagrees and provide evidence or arguments to support its 

position.



According to the files we reviewed, about 99 percent of the Postal 

Service employees’ traumatic injury claims contained evidence related 
to 

the five requirements set by OWCP regulations. About 1 percent of the 

traumatic injury claims were not approved, according to the case files 

we reviewed, because evidence was not provided for one or more of the 

requirements. About 97 percent of the claims filed by Postal Service 

employees for occupational disease claims contained evidence related to 

the five requirements. The remaining claims, or about 3 percent, did 
not 

include all of the required evidence. Generally, the evidence not 

provided for both types of claims pertained to either (1) the 
employee’s 

status as a Postal Service employee or (2) whether the claim was filed 

within the time limits specified by law. We did not evaluate OWCP’s 

decisions regarding the sufficiency of the information provided.



Median Processing Time to Determine Entitlement to WCP Benefits:



During the period covered by our review, OWCP regulations required an 

employee who sustained a work-related traumatic injury to give notice 

of the injury in writing to OWCP using Form CA-1, “Federal 

Employee’s Notice of Traumatic Injury and Claim for Continuation of 

Pay/Compensation,” in order to claim WCP benefits. To claim benefits 

for a disease or illness that the employee believed to be work-related, 
he 

or she was also required to give notice of the condition in writing to 

OWCP using Form CA-2, “Notice of Occupational Disease and Claim 

for Compensation.” Both notices, according to OWCP regulations, 

should be filed with the Postal Service supervisor within 30 days of 
the 

injury or the date the employee realized the disease was job-related. 

[Footnote 9] Upon receipt, Postal Service officials were supposed to 

complete the agency portion of the form and submit it to OWCP within 

10 working days if the injury or disease was likely to result in (1) a 

medical charge against OWCP, (2) disability for work beyond the day or 

shift of injury, (3) the need for more than two appointments for 
medical 

examination/or treatment on separate days leading to time lost from 

work, (4) future disability, (5) permanent impairment, or (6) COP. 

[Footnote 10]:



OWCP regulations, during the period covered by our review, did not 

provide time frames for OWCP claims examiners to process these 

claims. 

Instead, OWCP’s operational plan for this period specified performance 

standards for processing certain types of WCP cases within certain time 

frames. Specifically, the performance standard for processing traumatic 

injuries specified that a decision should be made within 45 days of its 

receipt in all but the most complex cases. The performance standards 
for 

decisions on occupational disease claims specified that decisions 
should 

be made within 6 to 12 months, depending on the complexity of the 

case.



The case files we reviewed indicated that the length of time taken to 

process a claim-from the date of traumatic injury or the date an 

occupational disease was recognized as job-related to the date the 

claimant’s entitlement to benefits was determined-varied widely. For 

example, we estimate that 25 percent of the claims were processed in up 

to 48 days for traumatic injury and in up to 78 days for occupational 

disease. We estimate that 90 percent of the claims were processed in up 

to 307 days for traumatic injury and in up to 579 days for occupational 

disease. Finally, we estimate that 50 percent of the claims were 

processed in up to 84 days for traumatic injuries and in up to 136 days 

for occupational disease. Specifically, Postal Service employee claims 

for injuries or diseases covered by our review took the median times 

shown in table 1 to complete.



Table 1. Median Length of Time to Process Claims to Determine 

Entitlement to WCP Benefits for Injuries or Diseases Recognized as 

Job-Related During the Period July 1, 1997, through June 30, 1998:



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Traumatic injury.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date of traumatic injury to date injured Postal 
Service 

employee prepared notice of injury form; OWCP regulations or 

performance standards: 30 days; Estimated median time to complete 

steps: 1 day.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date Postal Service employee prepared notice of 

injury form to date Postal Service supervisor signed form; OWCP 

regulations or performance standards: [Empty]; Estimated median time 

to complete steps: 1 day.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date Postal Service supervisor signed notice of injury 

form to date OWCP received form; OWCP regulations or performance 

standards: 10 working days; Estimated median time to complete steps: 9 

calendar days.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date OWCP received notice of injury form to date of 

notice that entitlement to benefits has been established; OWCP 

regulations or performance standards: 45 days; Estimated median time to 

complete steps: 59 days.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Occupational disease; OWCP regulations or 

performance standards: [Empty]; Estimated median time to complete 

steps: [Empty].



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date of occupational disease recognized as job-related 

to date Postal Service employee signed notice of occupational disease 

form; OWCP regulations or performance standards: 30 days; Estimated 

median time to complete steps: 23 days.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date Postal Service employee signed notice of 

occupational disease form to date Postal Service supervisor received 

notice of occupational disease form; OWCP regulations or performance 

standards: [Empty]; Estimated median time to complete steps: 3 days.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date Postal Service supervisor signed notice of 

occupational disease form to date OWCP received form; OWCP 

regulations or performance standards: 10 working days; Estimated 

median time to complete steps: 11 calendar days.



Points in time during the process to apply for and determine 
entitlement 

to WCP benefits: Date OWCP received notice of occupational disease 

form to date of notice that entitlement to benefits has been 
established; 

OWCP regulations or performance standards: 6 to 12 months; Estimated 

median time to complete steps: 63 days.



[A] Median processing time includes time to process both claims for 

wage loss and claims for schedule awards.



Source: GAO analysis of OWCP data:



[End of table]



The median elapsed time taken by Postal Service employees and Postal 

Service supervisors met the applicable time frames set forth in OWCP 

regulations. As shown in table 1, the median time taken by Postal 

Service employees to prepare and submit the claim forms needed to 

make a determination on their entitlement to WCP benefits for traumatic 

injuries to the Postal Service supervisor was 2 days from the date of 
the 

injury, well within the 30-day time frame set by OWCP regulations. 

For occupational disease, Postal Service employees signed and 

submitted the notice of disease form to the Postal Service supervisor 
in a 

median time of 26 days from the date the disease was recognized as job-

related, or 4 days less than the 30-day time frame set by OWCP 

regulations. Upon receipt, the Postal Service supervisor then took up 
to a 

median time of 11 calendar days-also within the time limit of 10 

working days set forth in the regulations-to complete the form and 

transmit it to OWCP.



Also as shown in table 1, once OWCP received the form from the Postal 

Service, our preliminary analysis showed that OWCP claims examiners 

processed these notice of injury forms for traumatic injuries in a 
median 

time of 59 days to determine a claimant’s entitlement to WCP benefits. 

As mention earlier, the performance standard for these types of cases 

was 45 days, or 14 days less than the median time taken. According to 

OWCP officials, the 59-day median processing time inappropriately 

included the time during which certain types of claims were 

“administratively closed,” then reopened later when a claim for 

compensation was received. We plan to determine the effect to which 

these types of claims may have affected the processing times as we 

complete our review. For occupational disease claims, the data showed 

that OWCP processed these forms at the median time of 63 days, which 

was within the 6 to 12-month time frame for simple to complex 

occupational disease cases specified by OWCP’s performance standards.



Median Processing Time to Approve and Make First Compensation 

Payments:



During the period covered by our review, OWCP regulations stated that 

when an employee was disabled by a work-related injury and lost pay 

for more than 3 calendar days, or had a permanent impairment, the 

employer is supposed to furnish the employee with Form CA-7, “Claim 

for Compensation Due to Traumatic Injury or Occupational Disease.” 

This form was used to claim compensation for periods of disability not 

covered by COP as well as for schedule awards. The employee was 

supposed to complete the form upon termination of wage loss-the period 

of wage loss was less than 10 days or at the expiration of 10 days from 

the date pay stopped if the period of wage loss was 10 days or more- 
and 

submit it to the employing agency. Upon receipt of the compensation 

claim form from the employee, the employer was required to complete 

the agency portion of the form and as soon as possible, but not more 

than 5 working days, transmit the form and any accompanying medical 

reports to OWCP.



For the period covered by our review, OWCP regulations did not 

provide time limits for OWCP claims examiners to process these claims. 

Instead, OWCP’s annual operational plan for the period of our review 

specified a performance standard for processing wage loss claims. 

Specifically, the performance standard stated that all payable claims 
for 

traumatic injuries-excluding schedule awards- should be processed 

within 14 days.

 

This time frame was to be measured from the date OWCP received the 

claim form from the employing agency to the date the payment was 

entered into the automated compensation payment system. No 

performance standard was specified for occupational disease 

compensation claims.



The case file data showed that the processing time--from the date the 

claim for compensation was prepared to the date the first payment was 

made-varied widely. For example, we estimate that to process 25 percent 

of the claims, it took up to 28 days for traumatic injuries and up to 

32 days for occupational diseases. To process 90 percent of the claims, 
it 

took up to 323 days for traumatic injuries and up to 356 days for 

occupational diseases. To process 50 percent of the claims, it took up 
to 

49 days for the traumatic injuries and up to 56 days for the 
occupational 

diseases. Specifically, the median times to process the claims for 

compensation for the traumatic injury and occupational disease claims 

covered by our review are shown in table 2.



Table 2. Median Length of Time to Process Claims, Step by Step, for 

Compensation for Injuries and Diseases, Recognized as Job-Related 

During the Period July 1, 1997, through June 30, 1998:



Traumatic Injury: 



Points in time to apply, review, and approve first compensation 

payment: Date of traumatic injury to date Postal Service employee 

signed claim for compensation; OWCP regulations or performance 

standards: See footnote [A]; Estimated median time for steps to be 

completed: 135 days.



Points in time to apply, review, and approve first compensation 

payment: Date Postal Service employee signed claim for compensation 

to date Postal Service supervisor signed claim; OWCP regulations or 

performance standards: See footnote [A]; Estimated median time for 

steps to be completed: 7 days.



Points in time to apply, review, and approve first compensation 

payment: Date Postal Service supervisor signed claim to date OWCP 

received claim; OWCP regulations or performance standards: 5 working 

days; Estimated median time for steps to be completed: 4 calendar days.



Points in time to apply, review, and approve first compensation 

payment: Date OWCP received claim for compensation to date of first 

compensation payment made; OWCP regulations or performance 

standards: 14 days; Estimated median time for steps to be completed: 23 

days.



Occupational Disease: 



Points in time to apply, review, and approve first compensation 

payment: Date occupational disease was recognized as job-related to 

date Postal Service employee signed claim for compensation form; 

OWCP regulations or performance standards: See footnote [A]; 

Estimated median time for 

steps to be completed: 320 days.



Points in time to apply, review, and approve first compensation 

payment: Date Postal Service employee signed the claim for 

compensation to date Postal Service supervisor signed the claim; OWCP 

regulations or performance standards: See footnote [A]; Estimated 

median time for steps to be completed: 11 days.



Points in time to apply, review, and approve first compensation 

payment: Date Postal Service supervisor signed claim to date OWCP 

received claim; OWCP regulations or performance standards: 5 working 

days; Estimated median time for steps to be completed: 7 calendar days.



Points in time to apply, review, and approve first compensation 

payment: Date OWCP received compensation claim to date payment 

entered into automated compensation payment system; OWCP 

regulations or performance standards: Standard not provided; Estimated 

median time for steps to be completed: 22 days.



Footnote [A] Data were not available for us to determine whether 

claimants filed for compensation within the time frame set forth in 

OWCP regulations. Specifically, the regulations provide that once 

entitlement to WCP benefits is established, the claimant should submit 
a 

claim for compensation up to 10 days from the day pay stops. Prior to 

this hearing, we were not able to obtain the information regarding the 

time the claimant’s pay stopped. We plan to do so and perform the 

analysis in our final report.



Source: GAO analysis of OWCP data.



[End of table]



The case files we reviewed did not contain the information that would 

have enabled us to determine whether the claims for compensation were 

prepared and filed by the employees within the time frame set forth by 

OWCP regulations. However, as shown in table 2, once a claim was 

prepared, at the median time, we found that after receipt of a claim 
for 

compensation for a traumatic injury, the Postal Service supervisor 

completed the agency portion of the form and transmitted it to OWCP in 

4 calendar days, which was less than the 5 working days required by 

OWCP regulations. For occupational disease compensation claims, we 

found that upon receipt of the claim form from the employee, the Postal 

Service supervisor took 7 calendar days, which was also within the 5 

working day requirement imposed by OWCP regulations, to transmit the 

claims to OWCP.



As also, as shown in table 2, once OWCP received a traumatic injury 

compensation claim form, the median time for OWCP claims examiners 

to process the claim was 23 days, which was longer than the 14 days 

specified by OWCP’s performance standard-excluding schedule awards. 

However, our data included claims for schedule awards. As mentioned 

earlier, prior to this hearing we did not have time to evaluate the 
effect 

that schedule awards might have had on the median processing time. We 

plan to do so in our analysis for the final report. For occupational 
disease 

claims, our analysis showed that upon receipt, OWCP claims examiners, 

at the median processing time, took 22 days to make the initial payment 

for the approved claims. OWCP did not specify a performance standard 

for occupational disease claims.



Finally, our preliminary analysis of case file data showed that during 
the 

time between the date of injury or recognition of a disease as job-
related, 

injured employees often (1) continued working in a light-duty capacity, 

(2) received COP while absent from work, or (3) went on paid annual or 

sick leave until the time they actually missed work and their pay 

stopped. In fact, the data showed that the median elapsed time from the 

date the injury occurred or the disease was recognized as job-related 
to 

the beginning date of the compensation period was 98 days for traumatic 

injuries and 243 days for occupational disease claims.



Mr. Chairman, this concludes my prepared statement. I will be pleased 

to answer any questions you or other Members of the Subcommittee 

may have.



Contacts and Acknowledgments:



For further information regarding this testimony, please contact 

Bernard Ungar, Director, or Sherrill Johnson, Assistant Director, 

Physical Infrastructure Issues, at (202) 512-4232 and (214) 777-5699, 

respectively. In addition to those named above, Michael Rives, 

Frederick Lyles, Melvin Horne, John Vocino, Scott Zuchorsky, Maria 

Edelstein, Lisa Wright-Solomon, Brandon Haller, Jerome Sandau, Jill 

Sayre, Sidney Schwartz, and Donna Leiss made key contributions to this 

statement.



Sample Plan:



The population from which we selected our sample reflects Postal 

Service employees who, as of June 30, 2001, submitted claims for 

compensation for lost wages or schedule awards (Form CA-7) for 

injuries that occurred, or were recognized as job-related, during the 
12-

month period beginning July 1, 1997. In order to report results for 

traumatic injury and occupational disease claims, and to report results 
on 

claims of both types whether compensation was paid or not, we 
stratified 

our population into the following four strata on the basis of 
information 

from the sample frame:



The employee filed a “Federal Employee’s Notice of Traumatic Injury 

and Claim for Continuation of Pay/Compensation (Form CA-1) and 

received payment for compensation of lost wages or a schedule award.



The employee filed a “Federal Employee’s Notice of Traumatic Injury 

and Claim for Continuation of Pay/Compensation (Form CA-1) and did 

not receive payment for compensation of lost wages or a schedule 

award.



The employee filed a “Notice of Occupational Disease and Claim for 

Compensation (Form CA-2), and received payment for compensation.



The employee filed a “Notice of Occupational Disease and Claim for 

Compensation (Form CA-2), and did not receive payment for 

compensation.



The size of the population in each of these four strata was 3,872; 
1,232; 

2967; and 873, respectively. The number of usable sample cases 

obtained from each of the four strata was 198, 106, 143, and 96, 

respectively. We initially selected somewhat higher numbers of sample 

cases. If we were not able to obtain the file for a particular sample 
case, 

we substituted cases from the additional randomly sampled cases.



We followed a probability procedure to obtain the 483 usable claim 
files 

in total from the four strata. Of the 543 claims files, 483 were usable 

(173, 97, 127, and 86 in each strata, respectively. The 95 percent 

confidence interval for proportion estimates of the total population 
was 

no greater than plus or minus 5 percentage points. The 95 percent 

confidence interval for proportion estimates applied to individual 
strata 

was no greater than plus or minus 10 percentage points. Confidence 

levels for other types of estimates, such as averages, medians, and 
totals, 

depended on the variability of the sample values. We used SAS and 

SUDAAN software to make population projections.



(543019):



FOOTNOTES



[1] U.S. General Accounting Office, Administration of the Workers’ 

Compensation Program by the Postal Service and the Department of 

Labor, 

(Washington, D.C.; December 21, 2001).



[2] WCP provides for payment of several types of benefits, including 

compensation for wage loss, schedule awards, medical and related 

benefits, and vocational rehabilitation services for conditions 
resulting 

from injuries sustained or occupational disease or illness contacted in 

performance of duty while in the service of the United States. WCP also 

provides for payment of monetary compensation to specified survivors 

of an employee whose death results from work-related injury or disease 

and for payment of certain burial expenses.



[3] An injured employee can claim compensation as a (1) wage 

replacement benefit for lost wages, (2) schedule award if the employee 

has a permanent impairment to a member or function of the body, or (3) 

both.



[4] WCP allows for two types of work-related injuries for which 
benefits 

and services can be claimed: “traumatic injury” and “occupational 

disease or illness.” Traumatic injury means a condition of the body 

caused by a specific event or incident, or series of events or 
incidents, 

within a single day or work shift. Such condition must be caused by an 

external force, including stress or strain, that is identifiable as to 
time 

and place of occurrence and member or function of the body affected. 

Occupational disease or illness is a condition produced by the work 

environment over a period longer than a single day or work shift.



[5] Unless stated otherwise, calendar days are used throughout this 

statement.



[6] OWCP officials told us that OWCP permits certain, uncontested 

types of injury claims-those having medical bills totaling less than 

$1,500, no claims for compensation, and no potential third-party 
liability 

after payment of any outstanding medical bills-to be closed without 

formal adjudication to establish a claimant’s entitlement to WCP 

benefits. If any of these factors change, then formal adjudication 
begins. 

Thus, processing time for such cases may prolong the overall processing 

time because of the “down time” experienced before the claim for 

compensation is received by OWCP.



[7] COP is a WCP benefit that is intended to provide workers income 

while their claims for WCP benefits are being processed by OWCP. 

COP is not considered WCP compensation.



[8] For wage loss benefits, the claimant must also submit medical 

evidence showing that the condition claimed is disabling.



[9] Generally, the employee has up to 3 years from the date of the 
injury 

to establish his or her entitlement to OWCP benefits.



[10] If none of these conditions exist, the employer is supposed to 

retain the CA-1 and CA-2 as a permanent record in the Employee 

medical Folder in accordance with Office of Personnel Management 

guidelines.