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HRD-84-29 1 (1984-03-26)

handle is hein.gao/gaobabelj0001 and id is 1 raw text is: 






BY THE US, GENERAL ACCOUNTING OFFICE




Report To The Secretary Of Labor








Labor Needs To Adjust Compensation

Benefits It Pays Injured Federal

Employees To Levels Appropriate

To Their Disabilities


The Department of Labor could have reduced federal workers' com-
pensation costs by establishing wage earning capacities for partially
disabled federal employees. From reviewing a sample of injured em-
ployees' claims at five district offices, GAO estimated that about one-third
of the employees for whom Labor was paying benefits for total disability
were partially disabled based on the medical evidence in their files.

GAO recognizes that in addition to a finding of partial disability, Labor
must consider other factors--such as suitability and availability of
employment--before it can establish an employee's wage earning capa-
city and these other factors would likely preclude Labor from reducing
some employees' benefits. However, if Labor had been able to establish
an earning capacity for all these partially disabled employees, GAO
estimates that annual workers' compensation costs could have been
reduced by as much as $12.5 million.

In addition, some employees had actual earnings at least 12 percent
above their established wage earning capacity. Increased earnings
indicate that conditions may exist for further reducing an employee's
benefits.

In early 1984, Labor was taking actions which, if effectively implemented,
should resolve many of the problems discussed in this report.




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                                                                 GAO/HRD-84-29
      lnCY                                '                   MARCH 26, 1984

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