Long-term Disability Under FECA
The Federal Employees’ Compensation Act (FECA) provides long-term disability coverage for federal employees. These employees may receive long-term wage replacement for no limit to the number of weeks. Long-term disability benefits under FECA are paid every 28 days, whereas short-term benefits are paid weekly.
In 2019, FECA paid $3 billion in benefits. Most of the payments—$2 billion—were wage loss payments. Long-term disability is the greatest share of FECA disability payments; however, only 2% of new FECA cases pay benefits for more than two years.
Attorney Daren Sarphie of Sarphie Law explains long-term disability under FECA.
What is long-term disability under FECA?
Under FECA, long-term disability is wage replacement income when the recipient is expected to be disabled for more than 60 to 90 days. In addition to wage replacement, the person may be entitled to other benefits, such as medical care and disability compensation.
FECA Long-term Disability Payments
FECA long-term disability is when a person is:
- A federal employee
- Eligible for FECA benefits because of a workplace traumatic injury or occupational illness
- Receiving wage-loss compensation
- Expected to be disabled for more than 60 to 90 days
The duration of the disability is determined by medical evidence. When a person becomes disabled, it may not be immediately apparent whether the disability is short-term or long-term. Therefore, a person may start on short-term FECA payments and transition to long-term if the disability continues.
Long-Term Disability Benefits Under FECA
Long-term disability benefits under FECA pay 2/3 (66 2/3%) of the person’s previous wages. If the person has a dependent, it pays 3/4 (75%) of past income. Amounts may be adjusted for inflation.
A person who suffers a traumatic injury receives their full pay for the first 45 days. After that, they receive their entitled percentage of income.
Are FECA long-term disability benefits subject to taxation?
No. FECA long-term disability benefits are not federally taxed.
Top employers for FECA long-term disability recipients
| Employer | Percentage of Total
FECA Long-Term Disability Recipients |
| U.S. Postal Service | 45% |
| Other employers combined | 22% |
| Department of Defense | 19% |
| Veterans Affairs | 8% |
| Homeland Security | 5% |
How long can a person receive FECA long-term disability payments?
While there is no limit to the number of weeks that a person may receive FECA long-term disability payments, some states have a maximum number of weeks that a person may receive long-term wage replacement. A person may receive FECA indefinitely if they continue to qualify.
Total or partial long-term disability
A recipient may be considered long-term disabled if they have total or partial disability. A person with little or no likelihood of reemployment or one with extended disability is considered totally disabled. If a person may return to work in some capacity or if they are determined to have the ability to return to work, they are considered partially disabled.
Partial disability—unemployed or underemployed
If a person has partial disability but chooses not to work or is voluntarily underemployed, an income will be credited to them for the purposes of calculating partial disability. The amount credited will be what the person could earn for the appropriate job placement.
Types of Long-Term Disability Benefits Available
The term long-term disability under FECA primarily relates to wage loss replacement. However, many types of benefits may be available through FECA:
- Wage loss replacement
- Medical care
- Disability award for permanent impairment
- Attendant allowance, nursing services
- Vocational rehabilitation
Medical benefits may continue to the extent that they are doctor-prescribed to cure, give relief, reduce the period of disability, or aid in reducing monthly compensation. That means medical care may continue indefinitely if appropriate.
Vocational rehabilitation, employment efforts may be required
Benefits may stop if the person refuses to participate in vocational rehabilitation or seek employment where it is appropriate.
Managing Your Long-Term Disability Claim
Thrift Savings Plan (TSP)
You may keep any Thrift Savings Plan (TSP) contributions made before your injury. However, you can’t contribute additional TSP contributions while receiving FECA benefits.
Social Security
You may receive Social Security benefits while on FECA, but the amount will be offset.
FERS enhancement
FECA long-term disability recipients may receive a 1% enhancement to their Federal Employees Retirement System (FERS) benefits. The purpose of the enhancement is to account for the fact that the person could not contribute to their TSP or add to their Social Security earnings while they could not work.
A FECA recipient may opt to receive FERS benefits whenever they are eligible. However, they cannot receive both FECA and FERS.
Do FECA long-term disability benefits stop at a certain age?
No. FECA long-term disability may continue past retirement age. In fact, 1/3 of long-term recipients are age 66 or older.
It used to be that benefits could be reduced after age 70. Administrators could decide that a person’s wage earning capacity was reduced because of their age. Later, that practice was determined to be discriminatory and ended in 1974.
Can FECA long-term disability be settled by a compromise and release?
No. Unlike state workers’ compensation claims, FECA does not allow for compromise and release settlements. Compromise and release are common ways to resolve long-term state workers’ compensation cases. However, it is not an option for workers in the federal program.
Challenges and Appeals in Long-Term Disability Claims
A person facing long-term disability in their FECA claim may face numerous challenges. There may be disputes about the ability to work, receipt of continued medical care, and the payment amount. The recipient may appeal, ask for reconsideration, and request a hearing. They may have assistance from an experienced FECA attorney throughout the process.
Contact an Experienced FECA Claims Lawyer
Sarphie Law is an attorney for long-term disability under FECA, representing people at all stages of the claims process. If you are facing a new injury or occupational illness or have a problem with your ongoing benefits, contact us for a free consultation. Call or message us to begin.
