OWCP

Annual Report

to Congress

FY 2OO3

Submitted to Congress 2OO6

U.S. Department of Labor

Employment Standards Administration

Office of Workers’

Compensation Programs
Submitted to Congress 2OO6

U.S. Department of Labor

Elaine L. Chao, Secretary

Employment Standards Administration

Victoria A. Lipnic, Assistant Secretary

Office of Workers' Compensation Programs

Shelby Hallmark, Director

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(202)693-0031

Internet address:

www.dol.gov/esa/owcp_org.htm

OWCP Annual 

Report

to Congress

FY 2OO3

Contents

Assistant Secretary's Message

Director's Message

OWCP Accomplishments in FY 2003

Federal Employees' Compensation Act

Black Lung Benefits Act

Longshore and Harbor Workers' Compensation Act

Energy Employees Occupational Illness Compensation Program Act

Appendix

Office Directory

2

3

5

9

19

33

45

55

78
Director’s

Message

Assistant

Secretary’s Message

23

I am pleased to forward the Office of Workers’

Compensation Programs’ (OWCP) Annual Report

for Fiscal Year 2003 to the Secretary, to be

transmitted to Congress.

In FY 2003, OWCP took many steps to improve the

administration of its four programs. Its new central

bill pay system, commitment to compliance

assistance, and willingness to undergo independent

evaluations to assess the effectiveness of its

programs will all lead to improved services for its

customers and stakeholders.

I am proud of OWCP’s accomplishments and of its

hard working and dedicated staff, who have made

the accomplishments reflected in this report possible.

Victoria A. Lipnic

Assistant Secretary for

Employment Standards

FY 2003 was a very busy year for the OWCP

programs. In FY 2003, OWCP contracted with

Affiliated Computer Solutions (ACS) to provide

medical bill processing services for all OWCP

programs. In the first phase, the Federal Employees’

Compensation (FEC) program consolidated its

medical authorization and bill payment processes. 

ACS now processes all medical bills and handles

treatment authorizations for FECA medical

providers and beneficiaries. New service standards,

programming changes and telephone service

improvements enable the new centralized system to

provide more consistent, better controlled, and more

efficient bill payment services. Because bills are no

longer processed in our district offices, it has freed up

our field staff to focus on quality adjudication, case

management, and communications, thereby better

addressing workers’ needs. 

Also, in FY 2003, OWCP contracted with ICF

Consulting to evaluate the FEC program in order to

assess its effectiveness and to develop

recommendations for improvement. The study is

being conducted in response to a recommendation

which came out of the FY 2002 Program

Assessment Rating Tool review. While previous

studies have addressed specific aspects of the FEC

program, this evaluation is to address the

overarching issues of FEC design and strategic

goals, review the performance of program initiatives,

and provide state, other Federal, and private industry

benchmarks and best practices against which to

assess program performance.

The FEC program also continued to produce savings

through its Periodic Roll Management project and

medical cost containment initiatives. 

The Division of Energy Employees Occupational

Illness Compensation (DEEOIC), completing its

second full year of operation, has provided over

9,000 employees or their families with compensation

payments of approximately $660 million. Over $18

million in medical payments associated with

treatment services under the EEOICPA also have

been paid by the program.

The Division of Coal Mine Workers’ Compensation

initiated a major compliance assistance action by

contacting over 200 coal mine operators to reinforce

the importance of their statutory requirements to

insure and stay insured against their potential liability

for paying black lung benefits.

Because of the unusually high use of the Defense

Base Act during FY 2003 (due to the military

activities in Iraq and other parts of the Middle East),

the Division of Longshore and Harbor Workers’

Compensation (DLHWC) has provided numerous

educational seminars and coverage compliance

assistance to Federal agencies, insurance carriers,

and contractors.

The real and measurable progress we have made in

improving the administration of all OWCP programs

is due to the ingenuity, energy and hard work of the

entire OWCP staff. I am confident that as new

challenges arise, the staff’s enthusiasm, dedication

and commitment to its customers will enable them to

accomplish the tasks before them.

Shelby Hallmark

Director, Office of Workers' 

Compensation Programs
5

OWCPAccomplishments

In FY 2OO3

OWCP’s Government

Performance and

Results Act goal to

“minimize the human,

social, and financial

impact of work-related

injuries for workers and

their families” was

substantially achieved.
6 7

OWCP Accomplishments in FY 2OO3

Of the ten performance indicators included under

the performance goal, eight were achieved. In the

Federal Employees’ Compensation (FEC)

program, the goals to increase vocational

rehabilitation placements, produce Periodic Roll

Management savings, keep the indexed cost per

case of FECA cases below the comparable

measure for nationwide health care costs, and

improve FECA customer services were all met. 

Initial processing of claims for benefits and the

processing of final decisions in the Energy

program met the goal. The Longshore goal to

reduce the average time required to resolve

disputed issues was achieved, as was the Black

Lung goal to increase the percentage of benefit

claims in which there were no requests for

further action pending one year after claim

receipt. 

OWCP awarded a contract to

centralize all pharmacy and medical

bill processing activities for the FEC,

Black Lung, and Energy programs. 

Under the first phase of the contract,

FEC program system requirements

were identified and the design,

development and testing of a

consolidated system was completed. 

The OWCP Central Bill Processing

System began processing FEC bills

at the end of FY 2003. 

In FY 2003, the Division of Energy

Employees Occupational Illness

Compensation provided over 4,200

employees or their families with

compensation payments of

approximately $305 million. Over

$14 million in medical payments

associated with treatment services

under the EEOICPA also were paid

during the year.

The Secretary of Labor implemented the President’s

new three-year initiative – Safety, Health, and

Return-to-Employment or SHARE – which calls on

all Federal agencies to establish ambitious but

reachable goals to decrease total lost-time case rates,

increase claims filing timeliness, and reduce lost

production days for injuredworkers. SHARE is

jointly managed by OWCP and the Occupational

Safety and Health Administration. 

Quality Case Management (QCM) interventions

occurred in over 16,000 FECA cases. Lost

Production Days per QCM case decreased from 164

to 162 days. More than 86 percent of those cases

were resolved within 30 months of the date disability

began. Over 9,200 injured workers were returned to

work. 

FEC’s Periodic Roll Management project reviewed

and resolved over 4,200 long-term cases. OWCP

achieved nearly $25 million in first-year

compensation cost savings through PRM, while

continuing to ensure that injured workers receive

appropriate medical services and care. 

Application of the FECA medical fee schedule saved

the program $406.6 million compared to amounts

billed by providers. Bill review under the Correct

Coding Initiative identified $16.7 million in

improper billings and saved that amount in medical

costs. Together these reductions amounted to over 39

percent of the total charged by medical providers in

FY 2003.

The Division of Coal Mine Workers’ Compensation

initiated a major compliance assistance action by

contacting over 200 coal mine operators to reinforce

the importance of their statutory requirement to

insure and stay insured against their potential liability

for paying black lung benefits.

The Longshore program conducted numerous

educational seminars and provided critical

compliance assistance throughout the year to Federal

agencies, insurance carriers and contractors in the

areas of insurance coverage compliance,

insolvencies, and due to the military activities in Iraq

and other parts of the Middle East, coverage under

the Defense Base Act.

OWCP

Government Performance

And Results Act Accomplishments

In FY 2003

GOAL- Minimize The Human, Social, and Financial Impact Of

Work-Related Injuries For Workers And Their Families

RESULTS- Eight Of The Ten OWCP Performance Indicators Were

Achieved, Including:

Under The FEC Program, Vocational Rehabilitation Placements Were

Increased, Periodic Roll Management Savings Were Produced, Cost Per

Case Levels Were Kept Below Nationwide Health Care Costs, And

Overall Customer Service Improved.

Under The Energy Program, Initial Processing Of Claims For Benefits

And The Processing Of Final Decisions Were Achieved.

Under The Longshore Program, The Average Time Required To Resolve

Disputed Issues Was Reduced.

Under The Black Lung Program, The Percentage Of Benefit Claims With

No Requests For Further Action Increased.
9

Federal Employees’

Compensation Act

I ntroduction

In 1916, President

Wilson signed the

first comprehensive

law protecting

Federal workers from

the effects of work

injuries. In the years

following, the
made it usually is insufficient to cover current

outlays. The annual Department of Labor (DOL)

appropriation makes up any difference.

Expenses for a small number of cases are not

charged back to employing agencies but also are

covered by the DOL appropriation. For FY 2003,

these non-chargeback expenses were approximately

$31 million. Non-chargeable costs are attributable to

injuries that occurred before December 1, 1960,

when the chargeback system was enacted, to

employees of agencies that are no longer in

existence, or to injuries which have FECA coverage

under various “Fringe Acts” such as the Contract

Marine Observers Act, Law Enforcement Officers

Act, and the War Hazards Act, that did not contain

mechanisms for billing employers.

Administrative expenses for the FEC program

totaled $139.7 million for FY 2003. Of this amount,

$129.6 million, about 5.2 percent of total program

costs, was spent from direct appropriations to the

Office of Workers’ Compensation Programs

(OWCP), including $86.4 million in salaries and

expenses account and $43.3 million in “fair share”

expenditures out of the FECA Special Benefits

account. These latter funds are specifically

earmarked for OWCP capital

investments for the

development and operation of

automated data management

and operations support

systems, periodic roll case

management, and medical bill

cost control. The central bill

processing contract was

supported with these funds.

Another approximately $10

million are for legal,

investigative, and other support from the Employees'

Compensation Appeals Board (ECAB), Office of the

Solicitor, and the Office of the Inspector General.

Government Performance and Results Act

In FY 2003, the Division of Federal Employees’

Compensation (DFEC) achieved four out of the six

indicators under OWCP’s goal to “minimize the

human, social, and financial impact of work-related

injuries for workers and their families.” The DFEC

achieved its following goals:

Increase FECA Vocational Rehabilitation placements

with new employers for injured USPS employees by

five percent over FY 2002.

Through use of Periodic Roll Management, produce

$20 million in first-year savings in the FEC program.

The trend in the indexed cost per case of FECA cases

receiving medical treatment will remain below the

comparable measure for nationwide health care costs.

Improve FECA Customer Services in Key

Communications Areas.

DFEC was not successful in the following two lost

production days goals: For FECA cases of the United

States Postal Service, reduce the lost production days

Federal Employees’ Compensation

(FEC) program has continually changed to meet its

commitment to provide high quality service to

employees and their employing agencies while

also minimizing the human, social and financial

costs of work-related injuries.

During Fiscal Year (FY) 2003, the program provided

workers' compensation coverage for approximately

2.7 million Federal workers. Peace Corps and

VISTA volunteers, Federal petit and grand jurors,

volunteer members of the Civil Air Patrol, Reserve

Officer Training Corps Cadets, Job Corps, Youth

Conservation Corps enrollees, and non-Federal law

enforcement officers when injured under certain

circumstances involving crimes against the United

States also are covered.

Benefits and Services

The primary goal of the FEC program is assisting

Federal employees who have sustained work-related

injuries or disease by providing both appropriate

financial benefits and help in returning to work. 

Benefits provided to employees covered by the

Federal Employees’ Compensation Act (FECA)

include payment for all reasonable and necessary

medical treatment for work-related injury or disease. 

In timely-filed traumatic injury claims, the FECA

requires the employer to continue the injured

worker's regular pay during the first 45 calendar days

of disability. If the disability continues after 45

calendar days, or in cases of occupational disease,

the FEC program will make payments to replace lost

income. Compensation for wage loss is paid at twothirds of the employee's salary if there are no

dependents, or three-fourths if there is at least one

dependent. The FEC program compensates injured

workers for permanent impairment of limbs and

other parts of the body. Benefits to survivors in the

event of work-related death also are payable. The

FECA provides training and job placement

assistance to help injured workers return to gainful

employment. Monetary benefits (with the exception

of continuation of pay) are paid directly by the FEC

program to injured employees, their dependents or

survivors, and to service providers.

During FY 2003, the FEC program provided

284,000 workers nearly $2.4 billion in benefits for

work-related injuries or illnesses. Of these benefit

payments, nearly $1.6 billion were for wage-loss

compensation, $658 million for medical and

rehabilitation services, and $131 million for death

benefit payments to surviving dependents. In

addition, $20 million in contract nurse services were

provided to injured workers in their medical

recovery and return-to-work process.

The FECA is the exclusive remedy by which

Federal employees may obtain disability, medical,

and/or survivor benefits from the United States for

workplace injuries.

Funding

Benefit payments made by the program come from

the Employees' Compensation Fund. Fund outlays

are billed to employing agencies in August. Each

year these agencies replenish the Fund through a

mechanism known as chargeback.

Most agencies, except the U.S. Postal Service and

other non-appropriated fund agencies, include those

chargeback costs in their next annual appropriation

request to Congress. Remittances to the Employees'

Compensation Fund are not made until the first

month of the subsequent fiscal year (or later, if the

agency’s full-year appropriation is enacted later than

that). This means that there is at least 15 months

between the dates of the chargeback "bill" and when

the payment to the fund is completed. Given cost-ofliving increases in wage-loss benefits and inflation

affecting medical costs, by the time remittance is

10 11

Federal Employees’ Compensation Act

Benefit Outlays

Under FECA FY 2003

TOTAL BENEFITS*: $2,346 MILLION

Long Term Disability (Wage Loss) 53.0% $1,243 Million

Medical Benefits 27.7% $ 650 Million

Temporary Disability (Wage Loss) 13.4% $ 314 Million

Death Benefits 5.6% $ 131 Million

Vocational Rehabilitation 0.3% $ 8 Million

*Actual Obligations
rate (LPD per 100 employees) by one percent from

the FY 2002 baseline; and, for FECA cases of all

other government agencies, reduce the lost

production days rate (LPD per 100 employees) by

three percent from the FY 2001 baseline.

The increase in LPD reflects an increase in nonPostal Federal employment, particularly in the

security field, exposing additional workers to

potential injuries; an increase in new FECA injury

claims of six percent over FY 2002; continuing

increases in the number of wage-loss (severe) claims

(up to 30 percent since FY 2000); and, significantly,

an increase of 22 percent in total disability days

during the continuation-of-pay period (immediately

following injury and before OWCP takes jurisdiction

over the case).

Despite these negative external factors, the total

increase in LPD was kept modest by efforts to

manage FECA wage-loss claims. Through FEC’s

Quality Case Management (QCM) program,

average time loss in those cases was reduced to 162

days per case, a reduction of an average of

27 wage-loss days since 1997, saving $26

million in annual compensation costs for

affected cases.

To better address its lost production day

reduction goals, the FEC program will

employ additional Vocational

Rehabilitation strategies, including

increasing the number of workers placed

with new employers, continuing

assignment of nurses to assist new injury

cases under QCM, and reinvigorating a

joint program, the Safety, Health and

Return-to-Employment initiative, with the

Occupational Safety and Health

Administration to better publicize and

focus Federal employees on workplace

injuries, set government-wide

performance goals to reduce injury rates, speed time

of filing new injury notices, and reduce lost

production days.

Case Adjudication and Management

TIMELY DECISION-MAKING

Approximately 168,000 new injury and illness

claims were filed under FECA in FY 2003. Eightyfive percent were for traumatic injuries, such as those

caused by slips and falls. The remaining claims

were for medical conditions arising out of long-term

exposure, repeated stress or strain, or other

continuing conditions of the work environment. 

Disability extended beyond the 45-day continuationof-pay period in 14 percent of all cases. In FY 2003,

86 percent of wage-loss claims were paid within 14

days of receipt. For traumatic injury claims, 97

percent were adjudicated within 45 days of the day

the OWCP received notice of the injury.

In FY 2003, the FEC program also achieved a high

rate of timeliness in deciding non-traumatic injury

claims despite the complexities involved. When the

case was relatively simple, 94 percent were

adjudicated within 90 days. Eighty percent of the

more complex non-traumatic cases were adjudicated

within 180 days.

MANAGEMENT OF DISABILITY CASES

OWCP’s primary Government Performance and

Results Act goal, reduction of the rate of Lost

Production Days (LPD), guides its case management

strategy. The goal is based on measuring the

duration of disability for cases in the first year of lost

time from work, including continuation of pay and

compensation, and calculating a rate of disability

days per 100 employees for each agency. The

government-wide LPD was 83.1 days in FY 2003. 

The U.S. Postal Service’s LPD in FY 2003 was

147.6 days. At the same time, all non-postal

government agencies had an aggregate LPD of

56.0 days.

Quality Case Management (QCM) was

implemented in the FEC program in FY 1993 as

another means of reducing the number of days an

injured worker was out of work. Every injury case

with a wage-loss claim filed and no return-to-work

date is reviewed for assignment to an early

intervention nurse contracted by the FEC program. 

From the very earliest stages after the injury the

nurse meets with the injured worker and serves as

the human face of OWCP. Coordinating medical

care and return-to-work issues, the nurse works not

only with the injured employee but also the attending

physician and the employing agency. If it seems that

the injured worker will not return to work soon, the

nurse coordinates the transfer of the case for

vocational rehabilitation services and/or more

aggressive medical intervention.

In FY 2003, nurses intervened in 16,273 lost time

claims and 2,859 workers were referred for

vocational rehabilitation services. Over 9,200

injured workers returned to work in FY 2003 with

the assistance of contract nurses or rehabilitation

counselors. More than eighty-six percent of these

QCM cases during FY 2003 were resolved within

30 months of the date disability began. The average

length of disability measured for cases that had

begun wage-loss payments in the previous year was

162 days.

12 13

Federal Employees’ Compensation Act

FECA Benefit Expenditures

IN MILLIONS OF CONSTANT DOLLARS*

 FISCAL YEAR

$1,400

$1,200

$1,000

$800

$600

$400

$200

$0

*Actual Obligations in current dollars deflated by CPI-W (urban wage earners and clerical

workers, U.S. city average, all items), 1982-1984=100.

**FY 1996 excludes one-time (upward) adjustment of $85.5 million to implement

accrual-based accounting for benefit liabilities.

 1994 1995 1996** 1997 1998 1999 2000 2001 2002 2003

FECA Benefits Charged To

Employing Agencies

CHARGEBACK YEAR 2003

Chargeback Total: $2,323 Million

Postal Service $847 Million

Defense $628 Million*

Veterans Affairs $157 Million

Transportation $ 95 Million

Homeland Security $ 84 Million

Agriculture $ 72 Million

Justice $ 66 Million

All Other $ 374 Million

*Defense includes Navy ($245M), Army ($181M), Air Force ($136M),

and Deptartment of Defense ($65M).

Note: The sum of individual agencies may not equal total due to rounding.
14 15

Federal Employees’ Compensation Act

In addition to stressing early intervention, the FEC

program dedicated resources to thoroughly

reviewing long-term disability cases. The Periodic

Roll Management (PRM) project serves to provide

medical examinations, vocational rehabilitation and

placement assistance, with a view toward

reemployment of injured workers. PRM has proven

to be hugely successful, with outcomes exceeding

OWCP’s original estimates. In FY 2003, staff

reduced compensation costs by $24.6 million. Over

4,200 cases were screened, and benefits were

adjusted or terminated in over 2,300 cases where

beneficiaries’ disability had either resolved or

lessened to the point that return to work was

possible. Savings from these actions continue in

subsequent years.

CENTRAL MEDICAL BILL PROCESSING

OWCP contracted with Affiliated Computer

Solutions (ACS) to provide medical bill processing

services for all OWCP programs. ACS was selected

after an extensive review of contractors with proven

industry expertise in the processing of medical bills. 

 After several meetings with a number of medical

bill processors, a solicitation was released through

the General Services Administration. Proposals

were reviewed by a five-person technical panel from

OWCP and the contract was awarded to ACS in

May of 2002. The schedule developed by OWCP

called for the Division of Federal Employees’

Compensation to be implemented by the end of FY

2003 with the other OWCP programs to be

implemented in 2004.

Upon contract award ACS provided OWCP with a

project plan for the implementation. In the period

June 2002 through September 2002, OWCP and

ACS held a series of requirements meetings

designed to formalize the requirements from the

documentation ACS provided as part of the

solicitation. As a result of these meetings, OWCP

and ACS produced and jointly agreed to a Detailed

Design document that served as the basis for the

development of the new system.

System development, based on the Detailed Design

document occurred from October 2002 through

April 2003. During this period ACS modified its

core bill processing system to accommodate the

DFEC requirements and began developing both

automated and manual procedures for staffing and

running a Medical Bill Processing and Medical

Authorization Call Center. As both the automated

system and manual procedures were developed ACS

provided OWCP with regular status reports on

progress made and met frequently with the OWCP

team to answer design questions and refine

requirements. During this time OWCP was

provided opportunities to review ACS’ progress

towards completion of system development and

provide recommendations for changes and

refinements to the system design.

ACS completed system development in early May

2003. In May and June ACS performed internal

testing of the system components and completed

integration testing of the entire system. During the

integration testing OWCP had representatives

participating to ensure completeness of the testing

and to assist OWCP in preparing for DOL

acceptance testing. OWCP conducted its system

testing in July and August 2003. The system began

processing pharmacy bills in mid-August 2003 and

all other FECA bills in September 2003.

CORRECT CODING INITIATIVE

The FEC program cost containment efforts initiated

in 1999 continued to reduce medical costs in FY

2003. The Centers for Medicare and Medicaid

Services of the Department of Health and Human

Services developed the National Correct Coding

Initiative to promote national correct coding

methodologies and to control improper coding that

leads to inappropriate payment for outpatient

services. In addition to applying the Correct Coding

Initiative (CCI), OWCP uses the Diagnostic Related

Group methodology to reduce impatient costs and a

pharmacy fee schedule. Application of the FECA

medical fee schedule saved the program $406.6

million compared to amounts billed by providers.

Bill review under the CCI identified $16.7 million in

improper billings and saved that amount in medical

costs. Together these reductions amounted to 39.4

percent of the total charged by medical providers in

FY 2003.

Services to Claimants and Beneficiaries

During FY 2003, the FEC program continued its

focus on improved customer service and satisfaction

in keeping with the “Pledge to Our Customers.”

COMMUNICATIONS REDESIGN INITIATIVES

Communications enhancements by the FEC

program are giving callers easier access to claims

information and more responsive assistance with

procedural questions. To produce these results

required a top-to-bottom renovation of telephone call

handling and correspondence processes.

Investments in customer service personnel and

equipment were accompanied by concerted efforts to

standardize both the information provided and the

methods of delivery. OWCP also has made

information more readily available through

automated means via telephone and the Internet, and

that access is continually being expanded and

improved. Customer satisfaction is

routinely measured and tracked to assess

how well these communications and service

improvements have worked. Communication Specialists in each district office were

charged with directing and coordinating all

communications efforts with special focus on

addressing communications goals.

During FY 2003, 2,537,669 calls were

received in the 12 district offices. Each district office

averaged more than 17,600 calls each month. The

national average wait time was 2.96 minutes,

considerably below the pledged goal of five minutes. 

Of particular significance is that nationwide, 76.3

percent of all calls to the district offices were resolved

on first try, representing an improvement of 13

percentage points over the FY 2002 benchmark.

The use of local telephone surveys as a means to

assess telephone service in each office continued

during FY 2003. These survey results, along with

other measurements, are reported and monitored

through the Regional Quarterly Communications

Plans. During FY 2003, while the majority of

telephone caller questions were addressed at the time

of the initial call, survey respondents with issues

requiring a call-back reported receiving a response,

on average, within three days. More than 96 percent

of those surveyed indicated that the district office

staff was courteous. Nearly 95 percent of

respondents felt the district office staff provided

knowledgeable and accurate information. Ninetyseven percent of those surveyed reported that the

language used by the district office was clear and

understandable. In the National Call-Back Survey,

85 percent of respondents were somewhat or very

satisfied by the district office’s performance overall. 

This marks a three percent increase over FY 2002

survey results.

Quality Case Management

Results For FY 2003

Over 16,000 Injured Workers Were Referred To

Nurses For Early Intervention.

9,249 Injured Workers Returned To Work V. 8,796

In 2002.

86% of QCM Cases Resolved Within 30 Months

From Start Of Disability.
SHARE calls on all Federal agencies to establish

ambitious but reachable goals with regard to

decreasing total, lost-time and high-incidentworksite case rates; increasing timeliness of claims

filing; and reducing lost production days for injured

workers.

OWCP and DOL’s Occupational Safety and

Health Administration (OSHA) will jointly manage

the initiative and annually report on progress to the

President. OWCP and OSHA will partner with

Federal agencies to establish their 2003 baseline

performance in these areas and to provide guidance

and assistance in setting and meeting individual

agency goals.

TIMELY SUBMISSION OF NOTICES AND CLAIMS

FEC program regulations require employing

agencies to submit a Notice of Injury (Form CA-1)

or a Notice of Occupational Illness (Form CA-2)

within 10 working days (or 14 calendar days) of

receipt from an employee if lost time or medical

expenses are claimed or expected. In addition, the

employer is required to submit the initial wage-loss

claim (Form C-7) no more than five working days

(or seven calendar days) after receipt from the

employee. OWCP’s ability to act promptly on

medical bills and prevent any interruption of income

is directly and critically related to the early

submission of these forms. 

As part of the SHARE, all agencies were called

upon to improve timeliness of reporting of injuries

and illnesses by five percent each year. During FY

2003, the FEC program and OSHA collaborated on

ways to improve outreach programs to employers

emphasizing the need for improvement in the timely

submission of notices of injury and occupational

illness and claims for wage loss. Agency focus

groups convened in July and August of 2003 and

16 17

Federal Employees’ Compensation Act

In FY 2003, the FEC program consolidated its

medical authorization and bill payment processes

with a private sector company. This resulted in the

opportunity to redeploy staff previously performing

these functions in each of the district offices. In

keeping with our commitment to improving

customer service, the program shifted these staff

members to Customer Service Representative

positions. These positions were designed to provide

a high level of “front line” customer service to

injured workers, employing agency representatives,

and others contacting the district offices for

information and assistance. A comprehensive

training program was developed and implemented. 

In addition to specific FECA content, the training

sessions and materials addressed telephone customer

service skills. An important component of the

training program was the use of scenarios based

upon real life experiences for the Customer Service

Representatives to practice their phone skills and

computer applications simultaneously. The first

training sessions were held in August 2003, and by

the end of the fiscal year, over 125 Customer Service

Representatives had been trained. Due to the

dedication of additional resources in this area, the

FEC program determined that the district offices

would be capable of handling the volume of

telephone calls being routed to the National Call

Center. Effective October 2003, the FEC program

ended its contract with the call center and redirected

callers to their district office for service.

PERFORMANCE ASSESSMENT

OWCP continues to address recommendations

stemming from a FY 2002 Program Assessment

Rating Tool (PART) review. In that review, FEC

was rated “Moderately Effective” for having a

rational program design and clear, ambitious,

outcome-oriented goals that are properly aimed at

returning individuals to work and containing Federal

costs. To address the PART recommendations, OWCP

continued in FY 2003 to implement the following

reforms:

Re-proposed legislation to update the benefit structure,

improve benefit equity, and adopt best practices of state

workers’ compensation systems.

Began an independent evaluation of FEC program

effectiveness and review of industry best practices.

Used revised methods to estimate Federal agencies’

FECA liability to ensure timely submission of these data

to Federal employing agencies.

Participated in DOL efforts to develop a Managerial

Cost Accounting system.

Began measurement of communications services levels

and improvement of customer satisfaction.

Continued to develop the Safety, Health and Return-toWork (SHARE) initiative jointly with the Occupational

Safety and Health Administration to achieve

government-wide goals for reducing injuries and lost

production days and improving timeliness of injury

reporting.

Services to Employing Agencies

During FY 2003, the FEC program continued to

provide a variety of technical assistance and other

services to employing agencies.

SAFETY, HEALTH, AND RETURN-TO-EMPLOYMENT

In September 2002, the Secretary of Labor

implemented the President’s new three-year initiative –

Safety, Health, and Return-to-Employment or SHARE

– which builds on the accomplishments and outreach

efforts of the Federal Worker 2000 initiative over the

last four years.

Number of Employees

(FTE Staffing Used) 1,008

Administrative Expenditures* $ 129.6 M

Cases Created 168,174

Wage-Loss Claims Initiated 24,245

Total Compensation and Benefit

Payments (Actual Obligations)** $2,345.5 M

Number of Medical Bills Processed 3,094,691

*OWCP expenditures; excludes DOL support costs, but includes "fair share"

capital investment costs of $29.2 million in FY 2002 and $43.3 million

in FY 2003, respectively.

**Compensation, medical, and survivor benefits.

Federal Employees’

Compensation Act

 1,000

 $ 110.4 M

 158,118

 23,193

 $2,307.9 M

 3,425,810

provided valuable ideas about how to improve

performance in this area. There has been a notable

increase in the timeliness of submissions of notices,

from 57 percent in FY 2002 to 63 percent in FY

2003. Timeliness of submission of claims for wage

loss also increased during FY 2003 to 48 percent

from 43 percent in FY 2002. While all agencies are

provided with data on their timeliness and lost

production days performance, the FEC continues to

post data on the performance of the largest Federal

agencies on the OWCP/DFEC web site

(http://www.dol-esa.gov/share/).

In return for timely submission and in keeping with

the long-standing emphasis OWCP has placed on it,

OWCP has promised and delivered even earlier

interventions. The result has been continued

improvement in timely filing by many employing

agencies and an overall reduction in lost

production days.

 FY 2002 FY 2003
19

Black Lung Benefits Act

Introduction

In 2003, OWCP’s

Division of Coal Mine

Workers' Compensation (DCMWC)

completed its thirtieth

year administering

Part C of the Black

Lung program. The
20 21

Black Lung Benefits Act

initial Black Lung benefits program was enacted

as part of the Coal Mine Health and Safety Act of

1969, the first comprehensive Federal legislation

to regulate health and safety conditions in the coal

industry. This law created a temporary system to

compensate past victims of dust exposure in the

mines with public funds administered by the

Social Security Administration (SSA).

The number of claims filed in the early 1970's far

exceeded pre-enactment estimates. The Act was

amended by the Black Lung Benefits Act of 1972

(BLBA) to require the use of simplified interim

eligibility criteria for all claims filed with SSA, and

to transfer the receipt of new claims to the

Department of Labor (DOL) in 1973. OWCP

assumed responsibility for processing and paying

new claims on July 1, 1973. Most of the claims filed

prior to that date remained until recently within the

jurisdiction of SSA.

Early in 1978, Congress enacted two new statutes

that further amended the Act. The Black Lung

Benefits Reform Act of 1977 (Public Law 95-239)

again mandated the use of interim criteria based on

the use of presumptions to resolve old unapproved

claims. Public Law 95-227, the Black Lung

Benefits Revenue Act of 1977, created the Black

Lung Disability Trust Fund (Trust Fund), financed

by an excise tax on coal mined and sold in the

United States. The law authorized the Trust Fund to

pay benefits in cases where no responsible coal mine

operator could be located and transferred liability for

all claims filed with DOL based on employment in

the coal industry before 1970 from individual

employers to the Trust Fund. These amendments

made the Federal program permanent, although state

benefits would continue to offset Federal

compensation wherever they were available.

Current administration of the Black Lung Part C

program is governed by 1981 legislation: Title I is

the Black Lung Benefits Revenue Act of 1981, and

Title II is the Black Lung Benefits Amendments of

1981. The 1981 Amendments tightened eligibility

standards, eliminated certain burden of proof

presumptions, and temporarily increased the excise

tax on coal to address the problem of a mounting

insolvency of the Trust Fund, which was by then

indebted to the U.S. Treasury by over $1.5 billion.

The 1981 amendments slowed but did not stop the

growth of the Trust Fund debt, which by the end of

1985 had surpassed $2.8 billion. The Consolidated

Omnibus Budget Reconciliation Act of 1985,

enacted in 1986, increased the excise tax by an

additional 10 percent through December 31, 1995,

and put into effect a five-year moratorium on the

interest charges due the Treasury on the Trust Fund's

accumulated debt. In late 1987, Public Law 100-203

extended the duration of the increased tax rates

through December 31, 2013. These budget-related

legislative actions made no further changes in the

Act's eligibility criteria and adjudication procedures.

On September 26, 1997, officials from SSA and

DOL signed a Memorandum of Understanding

transferring responsibility for managing currently

active SSA (Part B) Black Lung claims to DOL. 

This change was aimed at ending confusion about

which Federal agency handles the claims and

enhancing customer service to all Black Lung

beneficiaries.

Benefits and Services

The Black Lung Part C program provides two types

of benefits, monthly wage replacement and medical

services. The program pays a standard monthly

benefit (income replacement) to miners determined

to be totally disabled from black lung disease, and to

certain eligible survivors of deceased miners. The

monthly rate of benefits is adjusted upward to

provide additional compensation for up to three

eligible dependents.

The program provides two types of medical services

related to pneumoconiosis (black lung disease): 

diagnostic testing for all miner claimants to

determine the presence or absence of black lung

disease, and the degree of associated disability; and

medical coverage for treatment of black lung disease

and directly related conditions for miners entitled to

monthly benefits.

Total DOL Black Lung program expenditures for

these benefits in Fiscal Year (FY) 2003 were $370.4

million, a decrease of $13.8 million from FY 2002. 

In FY 2003, benefits were provided from the Trust

Fund to approximately 43,000 beneficiaries each

month. The Trust Fund had a balance of $30.4

million at the end of FY 2003, with an outstanding

debt to the Treasury of $8.2 billion.

In FY 2003, the United Mine Workers of America

(UMWA) Health and Retirement Funds were

reimbursed $4.9 million from the Trust Fund for

black lung-related medical care provided by them to

UMWA/DCMWC joint beneficiaries.

As an additional benefit to claimants, the law

provides for payment of attorneys' fees and legal

costs incurred in connection with approved benefit

claims. The fees must be approved by adjudication

officers. During the past year DCMWC processed

86 fee petitions and paid approximately $0.6 million

in attorneys’ fees from the Trust Fund.

In FY 2003, 2,026 claims were forwarded for formal

hearings before the Office of Administrative Law

Judges (OALJ) and 411 claims were forwarded for

appeals to the Benefits Review Board (BRB). At the

end of FY 2003, the OALJ had 2,131 claims

pending while 391 were pending before the BRB.

In the Black Lung Part B program, nearly 59,000

active beneficiaries were receiving approximately

$33 million in monthly cash benefits as of

September 30, 2003. Part B benefits in FY 2003

totaled more than $416 million.

$400

$300

$200

$100

$0

*Current dollars deflated by CPI-W (urban wage earners and clerical workers, U.S. city

average, all items), 1982-1984=100.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Black Lung

Benefit Expenditures

IN MILLIONS OF CONSTANT DOLLARS*

 FISCAL YEAR
Black Lung Benefits Act

Medical Services

The Black Lung Part C program provides both

diagnostic and medical treatment services. 

Diagnostic testing is provided for all miner claimants

to determine the presence or absence of black lung

disease, and the degree of associated disability. 

These tests include a chest x-ray, pulmonary function

study (breathing test), arterial blood gas study, and a

physical examination.

Medical coverage for treatment of black lung disease

and directly related conditions is provided for miner

beneficiaries. This coverage includes prescription

drugs, office visits, and hospitalizations. Also

provided, with specific approval, are items of

durable medical equipment, like hospital beds, home

oxygen, and nebulizers; outpatient pulmonary

rehabilitation therapy; and home nursing visits.

Total medical expenditures under the Black Lung

Part C program during FY 2003 were $63.0 million. 

This includes payments of $5.1 million for

diagnostic services, $53.0 million for medical

treatment, and $4.9 million in reimbursements to the

UMWA Health and Retirement Funds for costs of

treating Black Lung beneficiaries. Approximately

401,000 bills were processed during the year.

Accomplishments

GOVERNMENT PERFORMANCE

AND RESULTS ACT

In FY 2003, DCMWC achieved its indicator under

OWCP’s goal to “minimize the human, social, and

financial impact of work-related injuries for workers

and their families.” The DCMWC achieved its

goal to:

Increase by four percent over the FY 2001

established baseline the percentage of Black Lung

benefit claims subject to the revised regulations for

which, following an eligibility decision by the district

director, there are no requests for further action from

any party pending one year after receipt of the claim.

In FY 2003, 86.6 percent of claims had no pending

requests for further action after one year (versus the

target of 70.5 percent). These results were largely a

factor of the large number of marginal cases that

were re-filed under the new regulations and

subsequently withdrawn. Sustaining these levels is

expected to be more difficult in the coming years.

The Black Lung program plans to continue to

provide technical assistance with stakeholder

communities, and work with Black Lung’s

authorized diagnostic provider community to

evaluate service delivery to ensure timeliness and

quality standards are maintained and performance

standards met.

IMPLEMENTATION OF

NEW PROGRAM REGULATIONS

On August 9, 2001, Judge Emmett Sullivan ruled

against a challenge to the regulations developed in

accordance with the provisions of Executive Order

12866 that was filed by the National Mining

Association and others. In upholding DOL’s

regulations, Judge Sullivan found in favor of the

Government on every count. Judge Sullivan also

lifted his partial stay order and the Black Lung

program began issuing schedules for the submission

of additional evidence. On June 14, 2002, the U.S.

Court of Appeals for the D.C. Circuit issued a

decision upholding all but one of the revised

regulations. National Mining Ass’n v. Chao, 292

F.3d 849 (D.C. Cir. 2002). During the first year the

revised regulations were in effect, claims receipts

increased to over 7,800. However, adjudication of

these claims was delayed because of the stay issued

by the court.

The revised regulations have streamlined the claims

review process for miners and other claimants. The

number of new claims declined from 6,998 during

FY 2002 to 5,224 during FY 2003. After having

gained a year of experience in developing and

adjudicating claims under the revised regulations in

FY 2002, DCMWC’s major emphasis in FY 2003

was placed on reducing the inventory of claims

awaiting decision which had built up during the

temporary surge in filings in FY 2001 and FY 2002.

The number of claims pending an initial

administrative review declined markedly, from 6,157

on September 30, 2002, to 2,299 on September 30,

2003. At the same time, the approval rate on initial

review decreased from 9.0 percent to 7.8 percent.

OPERATION AND MAINTENANCE OF

AUTOMATED SUPPORT PACKAGE

DCMWC’s contract with Computer Science

Corporation is the resource for the Black Lung

program’s Automated Support Package (ASP). The

ASP includes a client-server computer system for all

black lung claims, statistical and data processing,

medical bills processing, telecommunications

support, and administrative functions. During FY

2003, revisions and improvements were made in

several areas:

The Claimant and Payment Subsystem (CAPS) was

revised for processing under the new regulations; the

changes were in both data entry and reporting, for

searching claimant and beneficiary records by name,

and for processing claims retired to the Federal

Records Center.

The Black Lung Accounting System (BLAS) was

augmented by: (1) adding a new account status for

claimant overpayments held in abeyance because of

appeals on the issue of eligibility for benefits; and

(2) adding new reports for responsible operator

Accounts Receivable and responsible operator

Receivables in Litigation.

DCMWC’s automated correspondence system was

reconfigured so that data files reside in each staff

member’s desktop for faster and more efficient

retrieval of information by the desktop software.

New reporting software has enabled ad-hoc

reporting for users, supervisors and program

managers.

DCMWC participated in the ESA Government

Paperwork Elimination Act (GPEA) effort,

digitizing several of its most important standard

forms.

Obsolete personal computers were replaced with

up-to-date units.

PART B IMPLEMENTATION AND OPERATIONS

The Division of Coal Mine Workers’ Compensation

has been responsible for maintenance actions on

Part B (originally SSA) Black Lung claims since

October 1, 1997. A Memorandum of

Understanding between SSA and DOL was signed

on September 26, 1997, transferring the

responsibility. The purpose of the transfer was to

end confusion as to which Federal agency handles

Part B claims and to enhance services provided to

beneficiaries. The entire black lung claimant

population now deals with a single agency; the

payoff is more efficient use of governmental

resources.

22 23
To make the change permanent, the Administration

proposed legislation (“The Black Lung

Consolidation of Administrative Responsibilities

Act”), which was introduced in the Congress as H.R.

5542. President Bush signed this bill into law on

November 2, 2002. Responsibility for

administration of the Part B program was transferred

from the Social Security Administration to the

Department of Labor on October 1, 2003.

Significant accomplishments on Part B claims

during FY 2003 included:

Completing more than 9,400 maintenance actions,

on average less than one week from notification.

Managing the expenditure of more than $416 million

in Part B benefits.

At the end of FY 2003, DCMWC offices were

responsible for 58,683 Part B beneficiaries with

6,985 dependents.

BLACK LUNG PROGRAM

COMPLIANCE ASSISTANCE

During FY 2003, DCMWC sent form letters to 216

coal mine operators reminding them of their

statutory requirement to insure and stay insured

against their potential liability for paying black lung

benefits. Of the 216 operators, 114 were found to be

insured, 61 were insured through a parent entity or

not engaged in coal mining, 29 were out of business,

and five were uninsured. Seven letters were returned

unclaimed.

DCMWC staffs a Responsible Operator Unit

specifically assigned to keeping records on coal

mine operators and their insurance status. The staff

answers frequent written and telephone inquiries

from operators and insurance carriers, and evaluates

requests for self-insurance.

Black Lung Disability Trust Fund

The Trust Fund is administered jointly by the

Secretaries of Labor, Treasury, and Health and

Human Services. The Trust Fund was established

by the Black Lung Benefits Revenue Act of 1977, to

shift the responsibility for the payment of black lung

benefit claims from the Federal Government to the

coal industry. Claims approved by SSA under Part

B of the BLBA are paid from the general revenue of

the Federal Government.

Trust Fund revenues consist of monies collected

from the coal mine industry, under the provisions of

the Black Lung Benefits Revenue Act of 1977, as

amended, in the form of an excise tax on mined coal

that is sold or used by producers; funds collected

from responsible mine operators (RMOs) for monies

they owe the Trust Fund; payments from various

fines, penalties, and interest; refunds collected from

claimants and beneficiaries for overpayments; and

repayable advances obtained from Treasury's general

fund when Trust Fund expenses exceed revenues. 

Total receipts of the Trust Fund in FY 2003 were

over $1.0 billion.

The major source of revenue to the Trust Fund is an

excise tax on mined coal sold or used by producers. 

The tax is collected by the Internal Revenue Service

(IRS), U.S. Department of the Treasury, and

transferred to the Trust Fund on a monthly basis. In

1981, as an amendment to the IRS Code of 1954, the

Black Lung Benefits Revenue Provisions added a

temporary special tax, increasing the previous excise

tax to $1.00 per ton for underground coal and $0.50

per ton on surface mined coal, with a cap of four

percent of sales price.

In 1986, Congress passed the Consolidated Omnibus

Budget Reconciliation Act of 1985, which further

increased excise tax rates by 10 percent and imposed

a five-year moratorium on the accrual of interest on

all repayable advances, which expired on September

30, 1990. The rates (per ton) for underground and

surface mined coal were raised to $1.10 and $0.55

respectively, and the cap was increased to 4.4 percent

of the sales price, for the period October 1, 1985,

through December 31, 1995. In December 1987,

Public Law 100-203 lengthened the duration of these

increased tax rates to December 31, 2013, after

which the rates will revert to their original levels of

$0.50 underground, $0.25 surface, and a limit of two

percent of sales price.

In FY 2003, the Trust Fund received a total of $506.1

million in tax revenues. In comparison, the revenue

levels in FY 2002 and FY 2001 were $566.6 million

and $522.2 million, respectively.

An additional $6.8 million was collected from

RMOs in interim benefits, fines, penalties, and

interest during FY 2003. These funds directly

contribute to reducing the amount of repayable

advances needed by the Trust Fund. 

Trust Fund

expenditures are made

for:

Monthly and medical

benefits to eligible

miners and/or their

families for approved

claims involving miners

whose mine

employment ended

before 1970, or for

claims in which no

operator liability can be determined.

Administrative costs incurred in the operation of the

Black Lung program.

Accrued interest on repayable advances from the

Treasury.

Repayable advances are obtained from the U.S.

Treasury when Trust Fund resources are not

sufficient to meet program obligations. These

advances are to be repaid to Treasury's General Fund

with interest. Growth in the Fund's debt (advances

outstanding) slowed considerably during 1986-90

due to a legislated moratorium on the accrual of

interest on advances and larger than expected

increases in tax revenues. Interest payments

resumed in 1991, and by the end of FY 2003, the

Trust Fund's cumulative debt to the U.S. Treasury

was $8.244 billion. Although tax receipts to the

Trust Fund were sufficient to cover everyday

operating costs and approximately $90 million of

interest charges, repayable advances from the

Treasury in the amount of $525 million were

required to fund the remainder of the interest

payments due on this debt for FY 2003. 

24 25

Black Lung Benefits Act

Management Of SSA

Part B Black Lung Claims

In FY 2003

Professional And Timely Claims Maintenance Services

Provided To Part B Claimants By DCMWC Included:

Completing More Than 9,400 Maintenance

Actions, With Average Completion Time Of Less Than

One Week From Notification.

Managing The Expenditure Of More Than $416

Million In Benefits.

DCMWC Was Responsible For Nearly 59,000 Active Part B Cases.
26 27

Black Lung Benefits Act

Total Trust Fund disbursements during FY 2003

were $1.0 billion. These expenditures included

$370.4 million for benefits (income benefits of

$307.4 million and medical benefits of $63.0

million), $620.6 million for interest payments, and

$55.3 million to administer the program ($32.0

million in OWCP direct costs and $23.3 million for

legal adjudication and various financial management

and investigative support provided by the Office of

the Solicitor, Office of Administrative Law Judges,

Benefits Review Board (BRB), Office of the

Inspector General, and the Department of the

Treasury).

Legislative Proposal on Trust Fund Debt

The Black Lung Disability Trust Fund was created

by Congress in 1978 to provide compensation

benefits paid from revenue raised by an excise tax on

coal sold. When these revenues were insufficient to

meet benefit payments and other costs, the Trust

Fund could borrow funds from the U.S. Department

of the Treasury.

Benefit pay-outs in the late 1970’s and early 1980’s

far exceeded revenues, necessitating large advances. 

Although benefits and other operating costs are now

sufficiently covered by incoming revenues, the Trust

Fund’s debt continues to climb, reaching the $8.2

billion level by the close of FY 2003. The Trust

Fund now must borrow to cover its debt service,

which amounted to over $620 million at the end of

FY 2003.

To remedy this financial problem, DOL and

Treasury proposed a legislative package which

would:

Provide for the restructuring of the outstanding Trust

Fund debt, much of which was incurred at the higher

Treasury interest rates that prevailed during the

1980’s, thereby taking advantage of current and

lower Treasury interest rates.

Extend until the debt is repaid the Trust Fund excise

tax levels ($1.10 per ton for underground-mined coal

sold; $0.55 per ton for surface), which are set to

decline after December 31, 2013. The tax rate will

revert to the lower (original 1978) rates of $0.50 per

ton for underground-mined coal sold and $0.25 per

ton for surface in the year following the elimination

of the Trust Fund’s debt.

Provide a one-time appropriation to the Trust Fund

to cover the loss to the Treasury caused by the

restructuring.

Insurance/Self-Insurance

Section 423 of Black Lung Benefits Act requires that

each coal mine operator subject to the Act secure

payment of any benefits liability by either qualifying

as a self-insurer or insuring the risk with a stock or

mutual company, an association, or a qualified fund

or individual. Any coal mine operator failing to

secure payment is subject to a civil penalty of up to

$1,100 for each day of noncompliance. State

workers' compensation laws also require coal mine

operators to obtain insurance or qualify as a selfinsured employer to cover employee benefit

liabilities incurred due to occupational diseases that

are covered by state law. If state workers'

compensation is paid for pneumoconiosis, any

Federal black lung benefit received for that disease

would be offset or reduced by the amount of the state

benefit on a dollar-for-dollar basis. As of September

30, 2003, there were 1,769 Federal black lung claims

being offset due to concurrent state benefits.

Regulation of insurance carriers and the premium

rates they charge has been and continues to be the

responsibility of the states where they operate. 

Twenty-six states set occupational disease premium

rates for underground coal mine exposure. The rates

vary on a state-by-state basis due to such factors as the

population of miners in the state, the number of claims

filed, and the cost of benefits.

According to FY 2003 estimates by DOL's Mine

Safety and Health Administration, there were 1,537

active coal mine operators subject to the requirements

of the Act. The Secretary of Labor authorized 96

companies to self-insure. These authorizations cover

approximately 380 subsidiaries and affiliated

companies.

Performance Assessment

In 2003 the Black Lung program was assessed using

the Program Assessment Rating Tool (PART). The

PART found that:

The program purpose is clear.

DOL has achieved a relatively low erroneous payment

rate for the program (less than two percent).

The Trust Fund has a large and growing debt. Excise

tax revenue is now sufficient to cover the cost of

benefits and administration, but the Trust Fund must

borrow more each year to service its debt.

The program has one goal focused on reducing the

number of cases requiring lengthy appeals. In 2002

and 2003, performance exceeded the targets by a large

margin (although the PART found that 2002 and 2003

levels are anomalous and that performance will likely

drop in 2004 and future years). Case processing time

and medical cost containment goals are being added

in 2004 and 2005, respectively. While claims

processing goals are output goals, they reflect the core

purpose of the program: to provide benefits to

minimize the hardship imposed by black lung disease.

DOL’s Office of Administrative Law Judges

(OALJ), Benefits Review Board (BRB), and

Solicitor play critical roles in Black Lung claims

processing, but only BRB has established

performance goals for the adjudication of these

claims.

No data are available to compare the Black Lung

program’s outputs, outcomes, cost-effectiveness, or

efficiency with those of similar compensation

programs.

Based on the PART findings, DOL will:

Re-propose legislation to refinance and ultimately

retire the Trust Fund debt.

Periodically review actual performance vis-a-vis

targets and modify targets to ensure that they remain

challenging.

Determine what comparable medical cost trend

should be used to evaluate medical cost containment

performance.

Establish performance goals for the OALJ, BRB,

and Solicitor that are ambitious and contribute to

efficient adjudication of Black Lung claims.

Track and report on productivity (output per fulltime-equivalent employee) in order to guage

efficiency and year-to-year changes.

Conduct an independent evaluation of the Black

Lung program that includes a comparison of

program outcomes and efficiency to other similar

programs.
326 F.3d 894 (7th Cir. 2003), the Seventh Circuit

held that the claimant was entitled to witness fees

even though his medical experts did not appear in

person at the ALJ hearing. The court stated that the

statutory phrase "attending the hearing" is

ambiguous. It concluded that it would make no

sense to require the physical presence of the witness

before fees could be shifted because black lung cases

are almost always decided on the basis of written

reports and deposition testimony, and live testimony

would greatly increase the time and expense of each

hearing and therefore unduly burden the black lung

program.

BENEFITS REVIEW BOARD

During FY 2003, DOL filed over 475 pleadings with

the Benefits Review Board. The Board issued

several decisions which significantly affect the

Secretary’s administration of the benefits program.

Attorney Fees. The revised program regulations

include a new provision requiring responsible coal

mine operators to pay simple annual interest on

unpaid attorney fees from the date the fee is

awarded. The regulation applies to all claims

pending on or filed after its effective date – January

19, 2001. In Frisco v. Consolidation Coal Company,

22 Black Lung Rep. 1-321 (2003), the Board held

that the revised regulation is not impermissibly

retroactive and may be applied to pending claims. 

The Board reasoned that because pre-existing legal

precedent permitted imposition of interest for unpaid

attorney fees against coal mine operators, the

regulation imposed no new burdens on operators. 

The Board also held that the plain language of the

regulation requires that the interest be paid from the

date the fee is initially awarded.

28 29

Black Lung Benefits Act

Litigation

COURTS OF APPEALS

During FY 2003, the courts of appeals issued 73

decisions in cases arising under the Black Lung

Benefits Act. In addition, 59 appeals were filed. The

following summarizes the most significant appellate

decisions.

Settlement of Claims Prohibited. In Ramey v.

Director, OWCP, 326 F.3d 474 (4th Cir. 2003), the

Fourth Circuit held that the plain language of the

Black Lung Benefits Act prohibits the settlement of

claims. It explained that the Act incorporates

sections 15 and 16 of the Longshore and Harbor

Workers' Compensation Act, which prohibit the

waiver and release of compensation, but does not

incorporate section 8 of the Longshore Act, which

allows the settlement of claims in certain

circumstances. The court concluded, therefore, that

the Act "on its face, prohibits settlements." The court

recognized "that settlement is a generally accepted—

and often preferred—means of dispute resolution,"

but concluded that "the statute means what it says,

and it is for Congress to change the statute if

Congress intends a different result."

Requests for Admission. In Johnson v. Royal Coal

Co., 326 F.3d 421 (4th Cir. 2003), the Fourth Circuit

held that the Department's Office of Administrative

Law Judges rule (29 C.F.R. 18.20) that allows a

party to serve a request for the admission of a matter

of fact, and provides that the matter is admitted

unless the other party timely responds, applies in

black lung proceedings. In this case, the claimant

served requests for admission that would have

conclusively established his entitlement to benefits. 

The employer failed to respond. The ALJ denied

benefits without addressing the effect of the

admissions, and the Benefits Review Board

affirmed. The Fourth Circuit reversed and ordered

an award of benefits, holding that by failing to

respond to the requests for admission the employer

admitted that the claimant is entitled to benefits.

Benefits Commencement Date. In Amax Coal Co.

v. Director, OWCP, 312 F.3d 882 (7th Cir. 2002), the

Seventh Circuit rejected the employer's argument

that the Department's benefits-commencement-date

regulation is invalid because it violates the

Administrative Procedure Act by impermissibly

shifting the burden of proof to the employer. The

regulation provides that when evidence does not

establish the precise date upon which the miner

became totally disabled due to pneumoconiosis,

benefits should be paid from the date the claim was

filed. The court construed the regulation as a

rebuttable presumption; the employer can rebut the

presumption that the miner was totally disabled on

the filing date by producing evidence that the miner

was not totally disabled at some point after the filing

date. The court explained: (1) the regulation is not

inconsistent with the APA because it shifts only a

burden of production, not the burden of proof, to the

employer; and (2) even assuming the regulation is

inconsistent with the APA, it is not invalid because

the Secretary has statutory authority to deviate from

the APA by regulation.

Treating Physician Opinions. Following a theme

that began last year, the Sixth Circuit issued two

opinions discussing the weight to be accorded

treating physicians' medical opinions. In Eastover

Mining Co. v. Williams, 338 F.3d 501 (6th Cir. 2003),

the ALJ had awarded survivor benefits because he

was persuaded by the miner's treating physician that

pneumoconiosis was a contributing cause of the

miner's death. The court reversed the award. It

noted that a treating physician's opinion, like any

medical opinion, must be critically evaluated by the

ALJ. The court found several flaws in the treating

physician's opinion at issue here, including that the

opinion was equivocal and failed to explain how

pneumoconiosis contributed to the miner's death. 

On the other hand, the court concluded that the

medical opinions offered by the employer were

credible and required the denial of benefits.

In Peabody Coal Co. v. Odom, 342 F.2d 486 (6th

Cir. 2003), the court applied Eastover Mining, but

this time it affirmed an award of benefits. Here the

ALJ had been persuaded by the opinion of a treating

physician who is Board-certified in internal medicine

and pulmonary disease, and who had treated the

miner for a 16-year period. In addition, the court

agreed with the ALJ that the physician had authored

credible, well-documented medical reports and

treatment notes. It concluded that the ALJ properly

accorded additional weight to the physician's

opinion.

Issue Preclusion (i.e., Collateral Estoppel). In

Zeigler Coal Co. v. Director, OWCP, 326 F.3d 894

(7th Cir. 2002), the Seventh Circuit upheld the ALJ's

conclusion that the employer was precluded from

asserting in this case involving a claim for survivor

benefits that the miner, who had been awarded

benefits against the employer during his lifetime, did

not have pneumoconiosis. The finding of

pneumoconiosis had been necessary to the miner's

award, and the employer had actually litigated the

issue and lost in the miner's claim. Thus, the court

concluded that "straightforward application of

offensive non-mutual issue preclusion" bound the

employer to the finding of pneumoconiosis made in

the miner's claim.

Witness Fees. Section 28 of the Longshore and

Harbor Workers' Compensation Act is incorporated

into the Black Lung Benefits Act and provides that

in cases where an attorney's fee is awarded against

an employer, "fees and mileage for necessary

witnesses attending the hearing at the instance of

claimant" may also be assessed against the

employer. In Zeigler Coal Co. v. Director, OWCP,
Responsible Coal Mine Operator Beneficiaries in

Pay Status at End of Fiscal Year

 Monthly 6,226 6,079

 Medical Benefits Only 1,733 1,546

Number of Employees

(FTE Staffing Used) 212 227

OWCP Administrative Expenditures** $ 31.0 M $ 31.6 M

Total Compensation and

Benefit Payments*** $ 384.2 M $ 370.4 M

Trust Fund Beneficiaries in Pay Status at End of Fiscal Year

 Monthly 44,964 41,974

 Medical Benefits Only 6,300 5,322

30 31

Black Lung Benefits Act

*Reflects expenditures for Part C claims only; Part B data is published in

the Social Security Administration Bulletin.

**Excludes DOL and ESA management, Solicitor, Inspector General, and Treasury

administrative costs of $23.6 million in FY 2002 and $24.0 million in FY 2003,

respectively. Also excludes interest on the Trust Fund debt.

***Excludes collections from responsible coal mine operators for benefits

paid by Trust Fund on an interim basis, refunds for OWCP administrative

costs paid, and other miscellaneous reimbursements.

Black Lung Benefits Act* Collateral Estoppel. The doctrine of collateral

estoppel precludes a party from re-litigating an issue

identical to an issue decided against it in an earlier

claim. Offensive collateral estoppel refers to a

plaintiff foreclosing a defendant from litigating an

issue the defendant previously lost in an action with

another party. During FY 2003, the Board issued

two decisions limiting the use of offensive collateral

estoppel in black lung claims filed by the survivors

of miners who were awarded benefits. In Collins v.

Pond Creek Mining Company, 22 Black Lung Rep.

1-229 (2003), the Board held that a survivor could

not rely on offensive collateral estoppel to foreclose

litigation of whether the miner had coal workers'

pneumoconiosis. The Board reasoned that the issues

were not sufficiently identical because intervening

Fourth Circuit precedent, which controls the widow's

claim, altered the manner in which the fact finder

must weigh evidence of pneumoconiosis. The

second case involved a miner who had established

the existence of pneumoconiosis based on a rule that

allowed claimants to prevail when the evidence was

equally probative. The rule was later invalidated by

the Supreme Court, which held that claimants must

establish their claims by a preponderance of the

evidence. The Board held that because the widow

now faces a higher burden of proof than did the

miner, collateral estoppel does not apply. Sturgill v.

Old Ben Coal Company, 22 Black Lung Rep. 1-314

(2003).

Total Disability. The Director has long taken the

position that a non-pulmonary condition that causes

an independent disability unrelated to the miner's

pulmonary disability is not relevant to a

determination of whether the miner is totally

disabled due to pneumoconiosis. A revised

regulation codifies this position, but applies only to

claims filed after the regulation's January 19, 2001

effective date. In Bateman v. Eastern Associated

Coal Corporation, 22 Black Lung Rep. 1-255

(2003), the Board held that Fourth Circuit precedent

is consistent with the Director's position, and would

not preclude entitlement based on a pre-existing

totally disabling non-pulmonary impairment in

claims not controlled by the new regulation. 

Calculating Length of Coal Mine Employment.

The length of a miner's coal mine employment must

be determined to establish the identity of the

responsible coal mine operator, which among other

requirements, must have employed the miner for one

year. A program regulation describes one

permissible method of calculating the length of coal

mine employment in the absence of evidence of the

beginning and ending dates of that employment. 

The Director interprets that regulation to allow the

fact finder to infer a year of coal mine employment

based on evidence that the miner actually worked at

least 125 days with the operator. The Board held that

the Director's interpretation is unreasonable because,

in its view, it is inconsistent with another program

regulation that requires proof of a full calendar year

of employment to impose liability on the operator. 

Clark v. Barnwell Coal Company, 22 Black Lung

Rep. 1-275 (2003).

Medical Benefits. The Act requires that a

responsible coal mine operator pay for the medical

treatment of a miner's pneumoconiosis. In Kenner v.

Tennessee Consolidated Coal Company, 22 Black

Lung Rep. 1-287 (2003), a miner with terminal

pneumoconiosis requested that he be allowed to

undergo a lung transplant. The miner's physicians

stated that a transplant was the only treatment with

any hope of prolonging the miner's life. The

Department approved the procedure. The

responsible coal mine operator objected, arguing that

a Department of Labor manual issued to health care

providers states that organ transplants are not

covered medical treatment under the Act. The Board

held that the statute and regulations do not preclude

lung transplants as covered medical treatment, and

that they control over the non-binding statement in

the manual. The fact-finder must decide based on

the facts of each case whether a miner's lung

transplant is covered under the Act.

ENFORCEMENT

On September 22, 2003, the U.S. Attorney for the

Northern District of Alabama filed suit against the

former president and secretary of Alabama Land and

Mineral Corporation. The suit seeks $730,000 in

civil money penalties assessed against the president

and secretary based on the corporation's operation of

coal mines without insurance for two years. The

cases were pending before the court at the close of

FY 2003.

In Nowlin v. Eastern Associated Coal Corp., 266 F.

Supp. 2d 502 (N.D.W.V. 2003), a United States

district court in West Virginia addressed three

procedural issues in an enforcement action brought

by a black lung beneficiary under section 21(d) of

the Longshore and Harbor Workers' Compensation

Act. 33 U.S.C. 921(d) (incorporated into the Black

Lung Benefits Act by 30 U.S.C. 932(a), and

implemented by 20 CFR 725.604). The court held

that: (1) any statute of limitations applicable to a

section 21(d) action does not begin to run until the

award of benefits for which enforcement is sought

becomes final; (2) a beneficiary may seek

enforcement of an employer's liability for twentypercent additional compensation (which is based on

failure to timely pay benefits due) in a section 21(d)

action; and (3) section 21(d) does not require a

beneficiary to obtain a supplementary default order

from the OWCP district director before seeking

enforcement of an award in district court. The court

therefore denied the responsible operator's motion to

dismiss. The case was pending before the court on

the merits at the close of FY 2003. 

 FY 2002 FY 2003
33

Longshore and Harbor

Workers’ Compensation Act

Introduction

Enacted in 1927, the

Longshore and Harbor

Workers' Compensation Act (LHWCA)

compensates for lost

wages, medical

benefits, and rehabilitation services to
34 35

Longshore and Harbor Workers’ Compensation Act

longshore, harbor and other maritime workers

who are injured during their employment or who

contract an occupational disease related to

employment. Survivor benefits also are provided

if the work-related injury or disease causes the

employee's death. These benefits are paid

directly by an authorized self-insured employer,

through an authorized insurance carrier, or in

particular circumstances, by an industry financed

Special Fund.

In addition, LHWCA covers a variety of other

employees through the following extensions to the

Act:

The Defense Base Act of August 16, 1941, provides

the benefits of LHWCA to employees on overseas

military, air, or naval bases or other areas under a

public works contract performed by contractors with

agencies of the United States Government.

The Nonappropriated Fund Instrumentalities Act of

June 19, 1952, covers civilian employees in post

exchanges, service clubs, etc. of the Armed Forces.

The Outer Continental Shelf Lands Act of August 7,

1953, extended Longshore benefits to employees of

firms working on the outer continental shelf of the

United States engaged in exploration for and

development of natural resources, such as off-shore

drilling enterprises.

The District of Columbia Workmen's Compensation

Act (DCCA), passed by Congress on May 17, 1928,

extended the coverage provided by the Longshore

Act to private employment in the District of

Columbia. Since the District of Columbia passed its

own workers' compensation act effective July 26,

1982, OWCP handles claims only for injuries prior

to that date.

The original law, entitled the Longshoremen's and

Harbor Workers' Compensation Act, provided

coverage to certain maritime employees injured

while working over navigable waters. These

workers had been held excluded from state workers'

compensation coverage by the Supreme Court

(Southern Pacific Co. v. Jensen, 244 U.S. 205 (1917)).

Disability compensation and medical benefits paid

by insurers and self-insurers under LHWCA and its

extensions totaled approximately $557.5 million in

Calendar Year (CY) 2002, a 2.4 percent increase

compared to CY 2001.

Operations

In Fiscal Year (FY) 2003, total expenditures for

program operations and the overall administration of

LHWCA were $26.8 million, of which $10.2

million were the direct costs of OWCP. The

remaining $16.6 million were the costs of legal,

audit, and investigative support provided by the

Office of Administrative Law Judges (OALJ),

Benefits Review Board (BRB), Office of the

Solicitor, and the Office of the Inspector General.

At year’s end, the Division of Longshore and Harbor

Workers' Compensation (DLHWC) employed 101

people in the national office and 11 district offices.

During FY 2003, approximately 330 self-insured

employers and 410 insurance carriers reported

20,154 lost-time injuries under the Act. At year's

end, 15,425 maritime and other workers were in

compensation payment status.

Conferences and Appeals

A major function of the Longshore claims examiner

is the resolution of disputed issues that arise in

claims. While not a judge or hearing officer, a claims

examiner does function as a mediator in informal

proceedings designed to help the parties involved

reach amicable agreements and thereby avoid the

time and expense involved in formal litigation. In

FY 2003, the district offices conducted 2,894

informal conferences that were designed to establish

the facts in each case, define the disputed issues and

the positions of the parties in respect of those issues,

and encourage the voluntary resolution of those

issues by means of agreement and/or compromise. 

At the conclusion of each informal conference, a

recommendation for resolving the issues and

disposing of the claim is made by the claims

examiner. If either the claimant or the employer (or

insurance carrier) does not agree with the

recommendations made and requests a formal

hearing, the case is referred by the Longshore district

director to the OALJ. Decisions issued by

administrative law judges are appealable to the BRB

whose final decisions (except for those involving the

Defense Base Act (DBA)) are then subject to review

by the appropriate United States Court of Appeals. 

Initial review of BRB decisions involving the DBA

should be filed in the appropriate United States

District Court.

Constituent Services

DLHWC provides technical assistance to the

maritime industry and the workers whom the law is

designed to serve. Since the passage of the original

Act, administrative personnel have helped claimants

file and process injury reports and claims. DLHWC

program staff carries on this tradition by helping

covered workers and their dependents process

claims and required reports, and receive information

regarding medical and vocational rehabilitation. 

This aid is not a monetary benefit to the claimant, but

it is a valuable asset to an injured worker attempting

to seek compensation for an injury.

Longshore district offices also conduct seminars for

union members and officials, and for organizations

representing industry management. The offices

regularly schedule several seminars each year to

which employer and employee representatives are

invited.

Numbered notices are used by the national office to

disseminate information to approximately 600

insurance carriers and self-insured employers.

 CALENDAR YEAR**

Longshore

Benefit Expenditures

IN MILLIONS OF CONSTANT DOLLARS*

 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

$400

$300

$200

$100

$0

*Current dollars deflated by CPI-W (urban wage earners and clerical workers, U.S. city

average, all items), 1982-1984=100.

**Includes total industry compensation and benefit payments under LHWCA and its

extensions as reported on a calendar year basis.
36 37

Longshore and Harbor Workers’ Compensation Act

Accomplishments

GOVERNMENT PERFORMANCE

AND RESULTS ACT

In FY 2003, DLHWC achieved its indicator under

OWCP’s goal to “minimize the human, social, and

financial impact of work-related injuries for workers

and their families.” The DLHWC achieved its goal

to:

Reduce by two percent over the baseline the average

time required to resolve disputed issues in Longshore

and Harbor Workers’ Compensation program

contested cases.

In FY 2003, disputed issues covered by this measure

were resolved in an average of 266 days, 13 days

below the target of 279 days. The objective of this

indicator is to bring disputed issues to quick

resolution enabling earlier benefit delivery and

reduction of litigation costs for all parties. The

DLHWC has instituted management reforms to

focus on this indicator’s timeliness objectives and to

improve amicability in the proceedings of contested

cases and will continue to provide training to

Longshore claims staff in order to improve

mediation skills.

ADP SYSTEMS/AUTOMATION

In FY 2003, the Longshore program made several

enhancements to its automated Longshore Case

Management System (LCMS) including:

Finalizing the LCMS Centralization Project. The 12

separate regional LCMS databases were centralized

into one database in November and December,

2002. This change allows faster access, easier adhoc reporting, advanced back-up security, and better

performance reporting along with enhanced security

and recovery ability.

Enhancing the Longshore program’s internet site. 

DLHWC has added significant new information to

its website, including electronic form submission, the

Director’s legal briefs, revisions to the Procedures

Manual, national average weekly wage and benefit

level updates, Industry Notices, and a dedicated

email address for Longshore inquiries.

CLAIMS MANAGEMENT INITIATIVE

DLHWC continued its focus on improving its

claims management and dispute resolution services

during FY 2003.

DLHWC successfully achieved its Government

Performance and Results Act (GPRA) outcome

measure, significantly improving on the time needed

to resolve disputed claim issues.

The district offices focused on using previously

provided mediation training and telephonic

interventions to enhance the effectiveness of the

informal dispute resolution process.

In response to the new Medicare policies concerning

future benefit eligibility following claims

settlements, DLHWC initiated a comprehensive

informational process in which claimants and their

representatives are informed of these concerns and

possible future implications.

COMPLIANCE ASSISTANCE PLAN

DLHWC has regulatory responsibility in the areas of

assuring coverage compliance and overseeing the

availability of insurance benefits. To accomplish

these goals, DLHWC followed through on a review

of coverage compliance with the Tennessee Valley

Authority, and enhanced the technical assistance

services provided to insurers and employers in cases

of insolvencies. Additionally, because of the

unusually high use of the Defense Base Act during

FY 2003 (due to the military activities in Iraq and

other parts of the Middle East), DLHWC provided

educational seminars and coverage compliance

assistance to Federal agencies, insurance carriers, and

contractors.

CUSTOMER SURVEY REDESIGN

DLHWC has contracted with the University of

Michigan to implement the American Customer

Satisfaction Index. Following the FY 2002 survey to

evaluate claimants’ experiences in the Longshore

claims processing system, during FY 2003 the

Longshore program turned its focus to insurers and

self-insured employers to measure their satisfaction

with DLHWC services. The lessons gleaned from the

claimant survey were implemented during FY 2003,

and will be the subject of next year’s evaluation. 

These lessons include significant revisions to the

information sent to claimants early in the claims

process, earlier submissions of those materials, and

immediate follow-up on some claims following

rehabilitation. The results of this year’s

insurer/employer survey will be implemented during

FY 2004.

INSURANCE INDUSTRY OVERSIGHT

During FY 2003, the insurance industry continued to

experience serious economic impacts resulting from

ongoing negative influences. Included among these

was insufficient premium revenues dating from the

early to mid-1990s, recession impacts on investments,

higher than anticipated claims arising from old

policies covering asbestosis and other industrial

illnesses, and the costs of the September 11, 2001

terrorism attacks. The result of these financial

pressures has been a number of insolvencies as well

as declining financial stability ratings in the industry. 

In response to these impacts, the Longshore program

has initiated steps to secure the financial integrity and

security of the system by:

Continuing the rule promulgation process to address

insurance company security deposit requirements.

Improving DLHWC processes for handling

insolvencies to ensure seamless benefit delivery to

claimants.

Strengthening the review process of applications for

authorization to participate in the Longshore

program.

Increasing the security deposit requirements for

authorized companies that exhibit indications of

weakened financial security.

REHABILITATION REFORMS

During FY 2003, and based on the 2002 study of the

rehabilitation system, DLWHC implemented a

number of program enhancements. These include:

Automation of the rehabilitation referral process.

Revisions to the rehabilitation materials sent to

claimants.

Implementation of three separate pilot projects, each

focusing more acutely on the placement process and

cost control.
38 39

Longshore and Harbor Workers’ Compensation Act

Revision of existing policies to allow rehabilitation

services for disabled workers not currently receiving

compensation benefits and those who have settled

their compensation claims.

The results of the innovations will be used to

determine a GPRA goal for the Longshore

rehabilitation program.

Management of the Special Fund

The Special Fund under the Longshore Act was

established in the Treasury of the United States

pursuant to section 44 of the Act and is administered

by the national office of DLHWC.

Proceeds of the fund are used for payments under

section 10(h) of the Act for annual adjustments in

compensation for permanent total disability or death

that occurred prior to the effective date of the 1972

amendments, under section 8(f) for second injury

claims, under section 18(b) for cases involving

employer insolvency, under sections 39(c) and 8(g)

for providing rehabilitation assistance to persons

covered under the Act, and under section 7(e) to pay

the cost of medical examinations.

The Special Fund is financed through fines and

penalties levied under the Act; payment by

employers of $5,000 for each death case when it is

determined that there are no survivors eligible for the

benefits; interest payments on Fund investments; and

payment of annual assessments by authorized

insurance carriers and self-insurers. Fines, penalties,

and death benefit levies constitute a small portion of

the total amount paid into the Special Fund each

year. The largest single source of money for the fund

is the annual assessment.

Under section 44(c)(2) of the Act, the expenses of

the fund are estimated at the beginning of each CY

and each carrier and self-insurer makes prorated

payments into the fund. Payments are based on a

comparison of the total compensation payments

each made on risks covered by the Act and the total

of such payments made by all carriers and selfinsurers under the Act in the prior year, and a

comparison of payments under section 8(f)

attributable to the carrier/self-insurer and the total of

such payments during the preceding CY. There is a

separate fund under the District of Columbia

Workmen's Compensation Act that also is

administered by OWCP. Payments to and from this

fund apply only to the DCCA.

The LHWCA Fund paid $131.6 million in benefits

in FY 2003, of which $120.0 million went for

second injury (section 8(f)) claims. FY 2003

expenditures of the DCCA Special Fund totaled

$11.2 million, of which $10.0 million went for

second injury cases.

Litigation

The following summarizes the significant decisions

issued in the Courts of Appeals during FY 2003

involving provisions of the LHWCA and its

extensions.

Additional Compensation Under Section 14(f).

In Hanson v. Marine Terminals Corp., 307 F.3d

1139 (9th Cir. 2002), the Ninth Circuit held that a

district court may not consider equitable factors

when deciding whether to enforce an order requiring

the employer to pay twenty percent additional

compensation under section 14(f). The court

recognized that the provisions of section 14(f) are

self-executing and mandate the payment of the

twenty percent additional compensation if more than

10 days elapse between the date the underlying

compensation amount becomes due and the date it is

paid. The court reasoned that the fact a district

court’s review of a section 14(f) award is limited

solely to whether the award was in accordance with

law precluded consideration whether the employer

has a valid excuse for late payment.

Attorney Fees. In Richardson v. Continental Grain

Co., 336 F.3d 1103 (9th Cir. 2003), the Ninth Circuit

held that claimant’s attorney was not entitled to have

his fees paid by the employer where the Board

awarded less compensation than the employer had

previously offered to settle on one of two injuries and

the claimant failed to prevail on the other. Noting

that there were no reported cases addressing the

“successful prosecution” requirement of section

28(a) of the Act, the court looked to case law

interpreting 42 U.S.C. § 1988 for guidance. The

court further held that the failure of the employer to

formally refuse to pay the claim within thirty days

would not preclude claimant’s attorney from

recovering fees, were he otherwise entitled to them,

because the company did not specifically offer to

pay the claim. Finally, the court held that the

employer’s settlement offer was a “tender” for

attorney fee purposes, notwithstanding that the offer

was contingent on claimant agreeing to drop his

claim.

Coverage: Status. In Boomtown Belle Casino v.

Bazor, 313 F.3d 300 (5th Cir. 2002), the Fifth Circuit

held that a floating casino was a “recreational

operation” within the plain language of the section

2(3)(B) exclusion. The court held that application of

the 2(3)(B) exclusion turns on the nature of the

employing entity, not the nature of the duties an

employee performs. Accordingly, the surviving

spouse of a worker who suffered a fatal stroke in a

temporary tent adjoining the casino boat while it was

under construction could not recover benefits as the

worker was excluded from coverage as a maritime

employee. 

In Maher Terminals, Inc. v. Director, OWCP

(Riggio), 330 F.3d 162 (3rd Cir. 2003), the Third

Circuit held that an employee was covered under the

Act even though injured while doing exempt office

clerical work because half of his normal duties were

covered under the Act. The employee spent half of

his time on the job working as a non-covered

delivery clerk and half his time as a covered

checker. The court held that he was not excluded

from coverage under section 2(3)(A) even though he

was performing non-covered work on the day of the

injury, was not subject to reassignment to perform

covered employment that same day, and had not

worked as a checker during the two previous weeks. 

 FISCAL YEAR

DCCA LHWCA

 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

*Current dollars deflated by CPI-W (urban wage earners and clerical workers, U.S. city average, all

items), 1982-1984=100.

$100

$80

$60

$40

$20

$0

LHWCA and DCCA

Special Funds’ Expenditures,

FY 1994-FY 2003

IN MILLIONS OF CONSTANT DOLLARS*
40 41

Longshore and Harbor Workers’ Compensation Act

The court found him to have maritime status because

his engagement in indisputably maritime

employment was neither momentary nor episodic

but part of his regular duties.

Credit for Prior Settlement. In New Orleans

Stevedores v. Director, OWCP (Ibos), 317 F.3d 480

(5th Cir. 2003), the Fifth Circuit deferred to the

Director’s position that amounts that the claimant

received from LHWCA settlements with other

potentially responsible employers are irrelevant to

the amount owed by the responsible employer and

do not reduce its liability. The court held that the

doctrine established in Strachan Shipping Co. v.

Nash, 782 F.2d 513 (5th Cir. 1986), under which an

employer is entitled to a credit against its liability for

amounts paid on a prior scheduled award for an

injury to the same member, does not apply to

settlements that are an alternative to an entire award

against a settling employer.

Disobedience of Lawful Order. The Ninth Circuit

considered for the second time the case of A-Z

International v. Phillips, 323 F.3d 1141 (9th Cir.

2003). In its first decision, 179 F.3d 1187, the court

held that the district court, and not the Board, has

exclusive jurisdiction to review an ALJ’s certification

of facts regarding an alleged disobedience of a

“lawful order or process” under section 27(b) of the

Act. After that decision, the employer presented the

ALJ’s certification to the district court which

dismissed the complaint with prejudice. The Ninth

Circuit affirmed, holding that the filing of a

fraudulent claim for benefits under the LHWCA

does not constitute disobedience of a “lawful order

or process” within the meaning of section 27(b). 

Accordingly, a district court may not hold a claimant

in contempt of court for filing a fraudulent LHWCA

claim even where an ALJ has issued a certification

of fact to that effect.

In New Orleans Stevedores v. Director, OWCP

(Ibos), 317 F.3d 480 (5th Cir. 2003), the Fifth Circuit

deferred to the Director’s position that the Act’s

definition of “compensable injury” under section

2(2) does not require a claimant to show a causal link

between an occupational disease and employment

with a particular employer. Rather, the claimant only

needs to show that the disease “arises naturally out of

such employment.” Thus, an employer may not

rebut a finding under the “last employer rule” by

showing that there is an absence of a causal link

between an employee’s job and his injury.

Presumption: Section 20(a). In Ortco Contractors,

Inc. v. Director, OWCP (Charpentier), 332 F.3d 283

(5th Cir. 2003), the Fifth Circuit overturned the

Board and held that a widow could not recover

benefits where her husband’s heart attack was not

related to his employment. The court held that the

Board applied the wrong evidentiary standard in

requiring the employer to “rule out” every

conceivable connection between the decedent’s

cardiac arrest and his employment. Several

physicians provided uncontradicted testimony that

decedent’s heart attack began the night before his

shift and, if he had not sought medical treatment, he

would have reached full-blown cardiac arrest

whether he was at work or not. 

Special Fund: Contribution. The Fourth Circuit

issued four opinions within the span of four days

applying Director, OWCP v. Newport News

Shipbuilding and Drydock Co. (Carmines), 138 F.3d

134 (4th Cir. 1998). In all four decisions, the court

reiterated its position that in order for an employer to

limit its liability under section 8(f) of the Act, the

employer must demonstrate that a claimant’s most

recent injury alone would not have rendered him

permanently disabled. 

In Newport News Shipbuilding and Drydock Co. v.

Director, OWCP (Cherry), 326 F.3d 449 (4th Cir.

2003), the Fourth Circuit upheld the Benefits

Review Board’s denial of section 8(f) relief to the

employer on the ground that the employer failed to

Last Employer Rule. The Ninth Circuit roiled the

already murky waters of the “last employer rule” in

Metropolitan Stevedore Company v. Crescent Wharf

& Warehouse Co. (Price), 339 F.3d 1102 (9th Cir.

2003). The court held that the employer where the

claimant worked at the time he aggravated a prior

knee injury is his “last employer,” fully responsible

for the claimant’s compensation under the Act, even

where the aggravation resulted from just one day’s

work and the claimant had previously scheduled

knee surgery prior to that single day of employment. 

The Ninth Circuit applied its “two-injury” variant of

the last employer rule to reach this result and rejected

the argument that the claimant’s disability was not

increased by the single day of employment. Instead,

the court found the fact that the work caused the

medical condition to be aggravated enough to

impose liability. The employer found liable to pay

benefits has petitioned the Supreme Court for a writ

of certiorari.

In New Haven Terminal Corp. v. Director, OWCP

(Lake), 337 F.3d 261 (2nd Cir. 2003), the Second

Circuit overturned the Administrative Law Judge’s

decision that the claimant had completely healed

from a prior back injury. The court held that the

claimant’s previous employer was still liable for

payment of disability benefits and could not argue

that the amount of benefits should be reduced on the

ground that the claimant’s weekly wage would have

decreased as he aged.

establish a pre-existing permanent partial disability. 

However, the court went on to discuss the

contribution element in an effort to further explain its

holding in Carmines. One member of the panel

concurred in the result but dissented over the

inclusion of the contribution discussion because it

was not necessary to the decision.

In a case involving a retiree with a pulmonary

occupational disease, the Fourth Circuit faced a

factual scenario very similar to that in Carmines and

reiterated the holding that in order for an employer to

obtain section 8(f) relief, it must present evidence

assessing the degree of disability that claimant would

have suffered from the compensable disease alone. 

Newport News Shipbuilding and Drydock Co. v.

Director, OWCP (Pounders), 326 F.3d 455 (4th Cir.

2003). Such evidence is required to quantify the

extent to which claimant’s ultimate disability

materially and substantially exceeded the disability

that would have resulted from the compensable

disease alone. Employer does not satisfy its burden

under Carmines simply by subtracting the

percentage of impairment suffered as a result of a

prior lung disease from the current percentage of

impairment. In a separate concurrence, one member

of the panel expressed sympathy with the

employer’s claim that it is difficult to obtain evidence

that satisfies the quantification requirement. 

In a 2-1 decision, the Fourth Circuit upheld the

Board’s decision affirming an ALJ’s denial of section

8(f) in a case where the employee suffered two

separate back injuries. Newport News Shipbuilding

and Drydock Co. v. Director, OWCP (Ward), 326

F.3d 434 (4th Cir. 2003). The court agreed with the

determination that the employer failed to quantify

the extent to which claimant’s ultimate permanent

partial disability materially and substantially
42 43

Longshore and Harbor Workers’ Compensation Act

Number of Employees

(FTE Staffing Used) 105 101

Administrative Expenditures* $ 11.9 M $ 12.3 M

Lost-Time Injuries Reported 22,293 20,154

Total Compensation Paid** $692.2 M $703.6 M

 Wage-Loss and Survivor Benefits $523.9 M $513.1 M

 Medical Benefits $168.3 M $190.5 M

Sources of Compensation Paid

 Insurance Companies** $236.7 M $246.6 M

 Self-Insured Employers** $307.7 M $310.9 M

 LHWCA Special Fund $131.7 M $131.6 M

 

 DCCA Special Fund $ 11.4 M $ 11.2 M

 DOL Appropriation $ 2.9 M $ 2.8 M

*Direct administrative costs to OWCP only; excludes DOL support costs of 14.9

million in FY 2002 and 16.6 million in FY 2003.

**Figures are for CY 2001 and CY 2002, respectively. Note: Total compensation

paid does not equal the sum of the sources of compensation due to the different

time periods (CY v. FY) by which the various data are reported. For Special Fund

assessment billing purposes as required by section 44 of LHWCA, compensation

and medical benefit payments made by insurance carriers and self-insured

employers under the Acts are reported to DOL for the previous calendar year.

Longshore and Harbor Workers’

Compensation Act exceeded the disability that would have resulted

from the most recent injury alone. Where

employer’s physician failed to quantify the

percentage of disability created by the second back

injury alone, section 8(f) relief was not available.

Newport News Shipbuilding and Drydock Co. v.

Director, OWCP (Winn), 326 F.3d 427 (4th Cir.

2003) resembled Pounders in many pertinent

aspects. The court held that the employer did not

demonstrate that claimant had a prior disability that

aggravated his asbestosis even though claimant

admitted to smoking a pack of cigarettes a day for

forty-five years because the employer’s medical

reports failed to quantify the percentage of disability

claimant would suffer from asbestosis alone. The

court reiterated that an employer must demonstrate

the degree of disability claimant would have from

his most recent occupational disease alone,

independent of any prior disease and that this

quantification requirement may not be met through

the “subtraction method” discredited in Carmines.

Special Fund: Pre-existing Permanent Partial

Disability. In Newport News Shipbuilding and

Drydock Co. v. Director, OWCP (Cherry), 326 F.3d

449 (4th Cir. 2003), the Fourth Circuit upheld the

Benefits Review Board’s denial of section 8(f) relief

to the employer for failure to establish the existence

of a pre-existing permanent partial disability within

the meaning of section 8(f). The only evidence

employer submitted on this point consisted of a

written medical opinion that was riddled with factual

and medical errors.

Suitable Alternative Employment. The Fourth

Circuit joined the Fifth Circuit in adopting the

Director’s view that a claimant may be found

entitled to receive total disability benefits while

participating in a vocational rehabilitation program

even though he was physically capable of

performing suitable alternative employment that

would have paid more than he was expected to earn

after completing rehabilitation. In Newport News

Shipbuilding and Drydock Co. v. Director, OWCP

(Brickhouse), 315 F.3d 286 (4th Cir. 2002), the

Fourth Circuit followed the Fifth’s Circuit’s similar

holding in Louisiana Insurance Guaranty

Association v. Abbot, 40 F.3d 122 (5th Cir. 1994). 

The court also held that an Administrative Law

Judge may consider the lack of job security in the

alternative employment in determining whether such

employment is reasonably available.

Statute of Limitations. In Bath Iron Works Corp. v.

Knight, 336 F.3d 51 (1st Cir. 2003), the First Circuit

held that a widow had no reason to suspect her

husband’s death was related to his asbestos exposure

until she read a doctor’s report more than two years

after his death was correct. Accordingly, the

“discovery rule” of section 13(b)(2) of the Act

permitted the widow to bring her claim within two

years of her awareness of the relationship between

the employment, the disease and her husband’s

death. 

Statutory Construction: Vessel. In its second

reported decision involving a dredge worker injured

while working on the Ted Williams tunnel in Boston

Harbor, the First Circuit affirmed the district court’s

grant of summary judgment to the employer thereby

denying relief under LHWCA section 5(b). Stewart

v. Dutra Construction Co., Inc., 343 F.3d 10 (1st Cir.

2003). Although the court previously held that the

special purpose watercraft (a large dredge called the

Super Scoop) that claimant worked upon was not a

“vessel” for the purpose of determining whether the

Claimant was a “seaman” under the Jones Act, 230

F.3d 461, the employer conceded that it was a vessel

for purposes of LHWCA section 5(b). The Supreme

Court has granted certiorari, 124 S.Ct. 1414 (2004),

and will decide the proper legal standard for

determining when a special purpose watercraft is a

“vessel.” The Supreme Court’s decision will impact

LHWCA coverage because section 2(3)(G) excludes

“a master or member of a crew of any vessel” and

instead reserves to such masters or members a

remedy under the Jones Act.

 FY 2002 FY 2003
45

Energy Employees

Occupational Illness

Compensation Program Act

Introduction

Congress passed the

Energy Employees

Occupational Illness

Compensation Program

Act (EEOICPA or Act)

in October 2000; Part B

of the Act became

effective on July 31,
46 47

Energy Employees Occupational Illness Compensation Program Act

2001. Part B of EEOICPA was enacted to

compensate current and former employees (or

their eligible survivors) of the Department of

Energy (DOE), its predecessor agencies, and

certain of its vendors, contractors and

subcontractors who were diagnosed with

radiogenic cancer, chronic beryllium disease,

beryllium sensitivity or chronic silicosis as a result

of their exposure to radiation, beryllium or silica

while employed at covered facilities. Covered

workers receive a lump-sum payment of $150,000

and medical benefits for the covered illness. 

Qualified survivors of deceased covered

employees may also be eligible for the lump-sum

compensation. The EEOICPA also provides

compensation in the amount of $50,000 to

individuals (or their eligible survivors) awarded

benefits by the Department of Justice (DOJ) under

Section 5 of the Radiation Exposure Compensation

Act (RECA).

During FY 2003, the Division of Energy Employees

Occupational Illness Compensation (DEEOIC)

provided over 4,200 employees or their families with

compensation payments of approximately $305

million. In addition, the program paid $14.4 million

for medical expenses associated with treatment of

accepted medical conditions.

Funding

The Department of Labor (DOL) spent $40.1

million for program administration under EEOICPA

in FY 2003, which included support for 241 fulltime equivalent staff. Additional funding ($18.0

million) was transferred to support activities of the

Department of Health and Human Services,

National Institute for Occupational Safety and

Health (NIOSH). The DOL costs covered direct

expenses by DEEOIC for program administration,

including operations and support for the Washington,

D.C. National Office; the Final Adjudication Branch

(FAB); four district offices; a toll-free call center;

completion of the build-out of the IT support system;

on-going system operations costs; and contribution

to the operation of ten DOL/DOE jointly-run

Resource Centers to provide assistance to claimants

seeking information or wishing to file a claim under

the EEOICPA. The NIOSH portion included

funding for the radiation dose reconstruction process

and support of the Advisory Board on Radiation and

Worker Health..

Administration

Executive Order 13179 designated four Federal

agencies to administer the program: DOL,

Department of Health and Human Services (HHS),

DOE, and DOJ. As the lead agency, DOL has

primary responsibility for administering Part B of the

EEOIC program and deciding all questions arising

under the Act not assigned to other agencies,

including adjudicating claims for compensation and

paying benefits for those conditions covered under

Part B of the Act.

HHS is tasked with establishing procedures for

estimating radiation doses and developing guidelines

to determine the probability that a cancer was caused

by workplace exposure to radiation. These “dose

reconstruction” methods are applied by NIOSH,

which is also responsible for producing the radiation

dose estimates that DOL uses in adjudicating certain

cancer claims under the Act.

NIOSH is charged with the development of

guidelines to determine whether a claimant’s cancer

meets the criterion for causation by workplace

exposure to ionizing radiation (i.e., a 50 percent or

greater probability of causation). The basis for this

determination is a set of tables (Interactive Radio

Epidemiological Program) used to take into account

uncertainty concerning the information being used to

estimate individualized exposure and to calculate the

probability of causation.

HHS also provides the Advisory Board on Radiation

and Worker Health with administrative services and

other necessary support. The Advisory Board

advises HHS on the scientific validity and quality of

dose reconstruction efforts and receives and provides

recommendations on petitions submitted by classes

of employees for inclusion as members of the

Special Exposure Cohort (SEC). In addition, HHS

is responsible for designating additional classes of

employees to be added to the SEC and for selecting

physicians for appointment to the DOE physician

panels under Part D as needed.

Amendments to the EEOICPA required NIOSH to,

with the cooperation of DOE and DOL, conduct a

study on the following:

Whether or not significant contamination remained

in any atomic weapons employer or beryllium

vendor facility after such a facility discontinued

activities relating to the production of nuclear

weapons.

If so, whether or not such contamination could have

caused or substantially contributed to the cancer of

a covered employee with cancer or a covered

beryllium illness, as the case may be.

DOE is responsible for providing DOL and HHS

with relevant information on worker exposures,

including access to restricted data, and verification of

covered employment. In addition, DOE is

responsible for establishing a program to assist DOE

contractors and subcontractors in state workers’

compensation proceedings for conditions caused by

toxic exposure during their employment in the

nuclear weapons industry under Part D of the Act.

DOJ notifies beneficiaries who have received an

award of benefits under Section 5 of the RECA of

their possible EEOICPA entitlement and provides

specific information required by DOL to complete

the claim development and adjudication process for

RECA claimants. There are three categories of

claimants under Section 5: uranium miners,

uranium millers and ore transporters.

Benefits and Services

The statute, until recently, provided two different, but

potentially overlapping benefit programs:

The Part B program for Federal benefits,

implemented on July 31, 2001, and administered by

DOL with support from DOE and HHS, provides

the lump-sum compensation payment of $150,000

and payment of covered medical expenses to

covered workers. Qualified survivors also are

entitled to the lump-sum compensation payment.
48 49

Energy Employees Occupational Illness Compensation Program Act

In addition to supporting DOL’s implementation of

the Federal benefit program, DOE administered a

program - designated as Part D - under which DOE

assisted DOE contractor or subcontractor employees

(or their survivors) to apply for state workers’

compensation benefits if it was determined that the

worker sustained an illness as a result of exposure to

a toxic or hazardous substance at a DOE facility. 

DOE provided assistance to and would not oppose

the worker’s claim for state workers’ compensation

benefits if an independent Panel of Physicians

selected by HHS determined that the illness was

related to work at a DOE facility.

There are several different types of claims under Part

B of the Act, which require different processing

steps. Claims for the $50,000 RECA supplement are

the least complex, involving verification via DOJ

that a RECA award has been made, and

documentation of the identity of the claimant

(including survivor relationship issues). For claims

involving beryllium disease, silicosis, or a “specified

cancer” for workers at a SEC facility, the

employment and illness documentation is evaluated

in accordance with the criteria in the EEOICPA.

DEEOIC can move directly to a decision on cases

involving a “specified cancer” at a SEC facility

because the Act provided a presumption that any of

the listed cancers incurred by a SEC worker who

meets the duration of employment requirement was

caused by radiation exposure. For cases involving a

claimed cancer not covered by the SEC provisions

(that is, either a cancer incurred at a non-SEC facility

or a cancer incurred at a SEC facility that is not one

of the specified cancers listed in the Act or was

incurred by an employee who does not meet the

duration of employment requirement), there is an

intervening step in the process to determine

causation, called “radiation dose reconstruction.” In

these instances, once DEEOIC determines that a

worker was a covered employee and that he or she

had a diagnosis of cancer, the case is referred to

NIOSH so that the individual’s radiation dose – the

total amount and character of radiation to which the

individual was exposed related to his or her

employment in the nuclear weapons complex – can

be estimated. In FY 2003, the DEEOIC district

offices referred 6,381 cases to NIOSH for dose

reconstruction.

After NIOSH completes the radiation dose

reconstruction and calculates their dose estimate for

the worker, DEEOIC takes this estimate and applies

methodology also developed by NIOSH in its

“probability of causation” regulations, to determine

if the statutory causality test is met. That is,

DEEOIC determines whether the individual’s cancer

was at least as likely as not (at least 50 percent

probability) related to covered employment.

The DEEOIC operates four district offices which

adjudicate and process claims and make

compensation payments. When a claim is filed, it is

assigned to one of the four District Offices located in

Jacksonville, Florida; Cleveland, Ohio; Denver,

Colorado; and Seattle, Washington, based on the

geographical location of the worker’s last covered

place of employment. It is assigned to a claims

examiner who reviews the documentation and

determines if the criteria established by the Act for

covered employment and covered illnesses are met. 

The claims examiner works with the claimant, DOE

and/or private employer or employers involved to

develop the case file as thoroughly and completely

as necessary.

The DEEOIC district office issues a recommended

decision (recommending either acceptance or denial

of the claim) to the claimant. The claimant may

agree with the recommended decision, or may object

and request either a review of the written record or

an oral hearing (the latter will normally be held at a

location near the claimant’s residence). In either

case, the Final Adjudication Branch (FAB), a

separate entity within the DOL’s DEEOIC that

issues final decisions on behalf of DEEOIC in all

claims, reviews the recommended decision and any

evidence/testimony submitted by the claimant and

issues a final decision, either awarding or denying

benefits (or the FAB may remand the decision to the

district office should further development of the case

be necessary). A final decision may be appealed to

the U.S. District Courts. In FY 2003, district offices

issued 12,520 claim-level recommended decisions

and the FAB issued 14,924 claim-level final

decisions. Of that FAB total, 4,650 were approvals

and 10,274 were denials.

Services to Claimants

In FY 2003, the DEEOIC continued its relationship

with DOE to jointly establish and sponsor a

network of Resource Centers at major DOE sites

where workers and their families can receive

assistance in filing claim forms for both the DOE

and DOL programs and also be informed about the

Act. Not only do these centers provide valuable

information about the claims process to claimants,

they also assist the claimant in completing the

necessary forms and transmitting documents to the

DEEOIC district offices. The Resource Centers

can provide assistance either in person or over the

telephone, and thus are able to service individuals

who are outside the immediate geographical area. 

All of the Resource Centers have toll-free telephone

numbers. In FY 2003, these Resource Centers

helped 8,907 claimants file EEOICPA claims.

Additional assistance is provided to claimants and

families in locations outside the immediate area of a

Resource Center through Traveling Resource

Centers (TRCs). A major outreach activity of the

EEOIC program is planning and conducting the

TRCs as a means of providing claimant assistance

in geographical areas of the country where there is

no permanent Resource Center, but where covered

facilities either presently exist or formerly existed,

and a significant number of current or former

workers reside. In FY 2003, TRCs conducted six

two- or three-day meetings at locations around the

country. Prior to each outreach event, various

media outlets such as radio and newspaper are

utilized to advertise the upcoming traveling

resource center. The TRCs helped 1,007 claimants

file their claims in FY 2003.
50 51

Energy Employees Occupational Illness Compensation Program Act

In FY 2003, the DEEOIC website was updated and

expanded. This website provides Energy employees, claimants, potential claimants, and other

interested parties with up-to-date information on the

DEEOIC, including: its mission, the statute and

regulations governing the program, policy and

procedures, claim reporting forms, Resource Center

and district office locations and hours, press releases

about the program, medical provider enrollment

information, links to the DOE, DOJ, and NIOSH

websites, and toll free hot-line numbers where additional information and assistance can be obtained. 

Weekly content updates to the site were established

with the posting of medical and compensatio

 benefit statistics along with data on the status of the

program’s claims processing activities. 

The EEOIC program is committed to conducting

significant outreach efforts to find as many potential

claimants as possible and inform them of the

program. These efforts will continue to include a

significant number of strategically located traveling

resource centers to provide assistance to potential

claimants, as well as coordination with former

worker programs, pension funds, unions, and other

groups which may be able to extend the message

about the program to retirees and workers or their

survivors who no longer live in proximity to a

DOE facility.

Interagency Cooperation

The administration of EEOICPA is coordinated by

each department’s program staff. The respective

program staffs conduct weekly conference calls to

discuss matters of mutual interest and concern. The

DOL staff works closely on a daily basis with all of

the agencies to refine procedures for handling and

processing cases. In addition, DOL staff is in

constant communication with DOE regarding

employment verification issues, with NIOSH

regarding dose reconstruction, probability of

causation calculations and the exchange of

information required for dose reconstruction, and

with DOJ concerning claims that involve RECA. 

An interagency group has been established to discuss

and resolve issues related to access of records in the

possession of the various agencies.

Accomplishments

GOVERNMENT PERFORMNCE

AND RESULTS ACT

DOL is committed to measuring the

accomplishment of outcomes and being accountable

for achieving the fundamental goals of all the

programs administered. With respect to the EEOIC

program, high performance standards focusing on

moving claims rapidly through the initial and

secondary adjudication stages were established. The

Government Performance and Results Act (GPRA)

goals were met in FY 2003, in spite of the

challenging first full year’s (FY 2002) large number

of claims and program start-up activities.

DEEOIC’s two indicators achieved under OWCP’s

goal to “minimize the human, social, and financial

impact of work-related injuries for workers and their

families” were as follows:

For initial processing, make initial decisions in 75

percent of the cases within 120 days for cases from

DOE facilities and in RECA claims, and within 180

days for atomic weapons employer, beryllium

vendor, and subcontractor cases (for which

employment and other critical information is

generally more difficult to obtain). DEEOIC has

received over 47,000 Part B claims from program

inception through the end of FY 2003, and has made

recommended decisions or a referral to NIOSH for

dose reconstruction in 95 percent of these claims,

and had a working inventory of only 2,277 claims as

of September 30, 2003. Through the efforts of the

four district office and FAB staff, timely initial

decisions in 79 percent of the cases were made,

which exceeds the 75 percent goal.

With regard to final decisions, 77 percent of the

decisions were within the program standards, also in

excess of the goal of 75 percent. Achieving these

goals took the persistent, case-by-case effort of the

entire staff of DEEOIC, as well as the continuing

support of DOL’s Solicitor’s Office and DOE.

FY 2003 is the second performance tracking year for

DEEOIC. Management’s constant review and

improvement of programmatic processes has

enhanced the district offices’ ability to process claims

more timely, and it is continually monitoring and

assessing its processes for issuing final decisions.

PROGRAM OPERATIONS

DOL also has focused on issuing quality decisions

and on providing clear and effective

communications to the customers and stakeholders. 

The EEOIC program instituted an intensive

Accountability Review process to ensure that

samples of case work are scrutinized by objective

reviewers, and when issues are identified, immediate

corrective action is taken. The national office staff

has developed effective and comprehensive

procedural and policy guidance, a difficult task

considering the DEEOIC is a new and still evolving

compensation program. Although no workers’

compensation program is without conflict, the level

of objections to recommended decisions has been

relatively low. During FY 2003, 319 hearings were

requested by claimants dissatisfied with the district

office’s recommended decisions. FAB Hearing

Representatives conducted 253 hearings during the

same period.

In FY 2004 DOL is prepared to adjudicate the

thousands of cases that will be returned by NIOSH

with completed radiation dose reconstructions. An

operational plan performance goal to issue a

recommended decision within an average of 21 days

of receiving a dose reconstruction report from

NIOSH is in place for DEEOIC district offices. 

Thus far, the goal is being exceeded. A list of FY

2003 program highlights follows:

A key member of DEEOIC’s Branch of Policies,

Regulations and Procedures (BPRP) was detailed to

DOE for a period of four months resulting in the

development of DOE’s procedure manual for

processing Part D claims.

Procedures were developed for all aspects of claim

processing, which are currently available on the

DEEOIC website.

The DEEOIC website continued to be updated and

expanded. The updates include medical and

compensation benefit statistics, upcoming events,

bulletins, and press releases.

A Statistics by State feature was added to the

DEEOIC website enabling interested parties to

determine numbers of cases, claims and benefit

payment amounts by state and worksite.

A DEEOIC news feature was added to the main

page of the website.

Refined and updated procedures were issued,

including 30 bulletins, 3 transmittals, and 1 circular. 

Streamlining procedures related to employment

verification resulted in the issuance of 10 related

bulletins.
Number of Employees

(FTE staffing used) 191 241

Administrative Expenditures* $ 35.0 M $ 40.1 M

Claims Created 23,674 12,413

Recommended Decisions (Claims) 12,825 12,520

Final Decisions (Claims) 8,358 14,924

Number of Claims Approved (Final) 5,199 4,650

Total Lump Sum

Compensation Payments $351.0 M $305.0 M

Number of Medical Bill Payments 4,104 18,510

Total Medical Payments $ 3.8 M $ 14.4 M

*Includes Department of Labor expenditures only; excludes funds transferred

to the Department of Health and Human Services for that agency’s responsibilities

under EEOICPA ($37.5 million in FY 2002 and $18.0 million in FY 2003,

respectively).

52 53

Energy Employees Occupational Illness Compensation Program Act

Energy Employees Occupational

Illness Compensation Program Act BPRP developed a new EE-5 form in an effort to

clarify DOL requirements for employment

verification resulting in significant decreases in the

time frames for return of such verifications

from DOE.

BPRP implemented new procedures related to

subcontractors in an effort to properly track related

cases and streamline the process.

BPRP solidified procedures related to certain cancers

in joint effort with the National Cancer Institute.

Between October 1, 2002 and September 30, 2003,

the DEEOIC responded to 397 congressional

inquiries.

DOL outsourced a fully staffed and operational

system for processing and paying provider and

beneficiary medical bills for entitled beneficiaries.

The DEEOIC created an accountability review

process for the FAB, and conducted reviews in the

national office FAB and district office FAB

locations.

In cooperation with NIOSH, all claims staff was

trained on the application and use of Interactive

Radio Epidemiological Program (IREP) which is

used to calculate probability of causation for

employees’ cancers, and other NIOSH-related

topics.

BPRP created quality control checklists and

procedures to be used internally with the district

office to ensure the highest quality of output.

The DEEOIC revised and updated procedures

related to the use of the Energy Case Management

System (ECMS). The database was updated with

the ability to better reconcile compensation and

medical payments with the U.S. Department of the

Treasury. In addition, automated transaction void

and cancellation processes were enhanced.

Requirements were defined for providing expanded

medical bill processing support within ECMS. The

ECMS will enable staff to: enter medical-related

travel authorizations, approve metastatic cancers for

payment, authorize special medical services and

drugs, and issue prior approvals for payment related

to examiner-requested medical review services.

DEEOIC placed great emphasis on training this past

year, including providing process-specific training on

medical coding, customer service skills, employment

verification, (NIOSH/IREP) dose reconstruction,

ECMS, and basic and advanced claims examiner

training.

A training lead to coalesce the training efforts was

hired by DEEOIC. A Bulletin Training plan was

developed to ensure that all DEEOIC policy staff is

appropriately trained.

DEEOIC’s automated query and reporting

capabilities evolved into sophisticated and

indispensable tools, allowing claims and

management personnel to manage and report on

program and workload statistics.

DEEOIC’s compensation payment system was

enhanced to provide management with more

sophisticated methods for monitoring payments

efficiently and accurately, and to provide more

automated and procedural safeguards for system

integrity and security.

FAB increased its emphasis and efforts to assist

claimants in establishing employment at facilities

associated with DOE as part of the adjudication of

claims at the final decision level. This required

considering the evidence available to claimants in

circumstances in which claims rested on determining

proof by examining information that had to be

measured from records that were over 50 years old

or where evidence had to be reconstructed from

records coming from various sources.

In adjudicating cases in which claims of stepchildren

and natural children could conflict, the FAB

provided assistance in defining disparate facts and

questions to be considered in examining conflicting

rights and claims.

More than 700 FAB decisions were migrated to the

Web and linked to the DOL search engine.

Regulatory Activities

During FY 2003, the DEEOIC completed the

regulatory development process that began with the

May 2001 publication of the Interim Final

Regulations governing its administration of the

program. This development process included

careful evaluation of the 216 comments that the

DEEOIC received on the Interim Final regulations,

extensive policy discussions on these comments, and

development of appropriate additions to, deletions

from and alterations to the existing regulatory

language for inclusion in the draft final regulations,

which were submitted to the Office of Management

and Budget for its review prior to the December

2002 publication of the final regulations in the

Federal Register. The final regulations governing the

administration of the EEOICPA by the DEEOIC

went into effect on February 24, 2003, and are

codified at 20 CFR part 30.

 FY 2002 FY 2003
Appendix

A. FECA Tables A1–A4

B. Black Lung Tables B1–B7

C. LHWCA Tables C1–C5

D. EEOICPA Tables D1–D5

E. OWCP Rehabilitation Table E1

Note: Unless otherwise stated, the financial information in the following appendix tables may differ from what

is reported in the Department of Labor’s Consolidated Financial Statement. These differences are due to accrual

versus cash basis financial reporting requirements and adjustments made during statement compilation.

56

60

67

72

77

55
56 57

 Fiscal Year

Federal Employees' Compensation Rolls

FY 1994—FY 2003

(Cases at End-of-Year)

Table A—1

1994

60,136

–

50,538

–

6,589

3,009

1995

59,605

-0.9%

50,685

0.3%

6,537

2,383

1996

58,329

-2.1%

50,021

-1.3%

6,353

1,955

1997

55,484

-4.9%

49,319

-1.4%

6,165

0

1998

56,159

1.2%

50,105

1.6%

6,054

0

1999

54,897

-2.2%

48,957

-2.3%

5,940

0

2000

54,709

-0.3%

48,870

-0.2%

5,839

0

2001

56,133

2.6%

50,409

3.1%

5,724

0

2002

56,751

1.1%

51,092

1.4%

5,659

0

2003

58,621

3.3%

53,099

3.9%

5,522

0

Roll Type

Total Periodic Roll

% change v. prior yr.

 Long-Term Disability

 % change v. prior yr.

 Death

 Short-term1

 Fiscal Year

Federal Employees' Compensation Program

Summary of Claims Activity

FY 1994—FY 2003

Table A—2

Claim Activity

Incoming Cases

Cases Created

 Traumatic

 No Lost Time

 Lost Time

 Occupational Disease

 Fatal Cases

Wage-Loss Claims Initiated

Hearings and Review1

Total Requests for Hearing

Total Hearing Dispositions

 Pre-Hearing Remands

 Dismissals

 Affirmations

 Post-Hearing Remands

 Reviews of the Written Record

 Withdrawals/No-Shows

1994

185,927

160,560

71,999

88,561

25,161

206

21,402

6,607

6,571

847

1,216

2,399

807

583

719

1995

180,350

154,250

74,602

79,648

25,835

265

21,755

7,357

7,019

742

1,184

2,686

906

806

695

1996

175,052

150,204

75,829

74,375

24,689

159

20,392

7,951

7,101

970

1,375

2,474

876

806

600

1997

173,319

146,489

78,642

67,847

26,680

150

19,181

7,642

7,525

1,036

1,227

2,604

958

1,022

678

1998

165,135

138,975

75,321

63,654

25,954

206

19,315

7,496

8,087

1,056

1,191

2,965

910

1,179

786

1999

166,544

140,383

83,472

56,911

25,999

162

19,759

7,164

7,926

723

992

3,178

958

1,253

822

2000

174,471

145,915

91,620

54,295

28,406

150

21,899

6,992

7,418

678

944

2,945

1,068

1,167

616

2001

165,915

137,877

86,402

51,475

27,869

169

23,386

6,875

6,599

704

1,003

2,266

944

1,118

564

2002

158,118

132,250

80,439

51,811

25,739

129

23,193

6,820

6,272

543

980

2,170

848

1,209

522

1

 Beginning in FY 1997, short-term periodic roll cases are no longer tracked separately.

2003

168,174

142,325

84,368

57,957

25,747

102

24,245

6,751

6,743

605

1,032

2,266

983

1,344

523

1

 As a result of an internal audit conducted by DFEC, hearings and review data were

revised for the years 1994-1996. Management reports were compared with automated

system data that began in 1992, and corrections were made to reconcile differences between

the two sources.

FECA Tables A1-A2
58 59

 Fiscal Year

Federal Employees' Compensation Program Obligations

FY 1994—FY 2003

($ thousands)

Table A—3

1994

$1,922,707

1,859,349

1,284,380

459,312

115,657

63,358

63,358

1995

$1,953,952

1,880,754

1,309,562

453,208

117,984

73,198

67,914

1996

$2,062,325

1,984,209

1,375,808

481,833

126,568

78,116

65,145

1997

$1,968,256

1,887,363

1,314,603

450,206

122,554

80,893

67,303

1998

$2,024,494

1,944,259

1,343,879

476,167

124,213

80,235

69,207

1999

$2,076,475

1,989,050

1,370,206

492,835

126,009

87,425

67,567

2000

$2,170,247

2,078,715

1,403,154

548,596

126,965

91,532

70,634

2001

$2,308,595

2,199,276

1,453,740

617,414

128,122

109,319

78,971

2002

$2,418,364

2,307,942

1,509,275

667,797

130,870

110,422

81,210

2003

$2,475,108

2,345,472

1,556,845

658,121

130,506

129,636

86,358

Type of

Obligation

Total

Obligations

 Total Benefits1

 Compensation

 Benefits

 Medical

 Benefits

 Survivor

 Benefits

 Total

 Administrative

 Expenditures

 Salaries and

 Expenses

 Chargeback Year1

Federal Employees' Compensation Program Chargeback Costs,

by Major Federal Agency

CBY 1994—CBY 2003

($ thousands)

Table A—4

1994

$1,813,931

521,456

262,274

168,350

145,471

115,993

90,171

N/A

60,085

51,605

59,113

339,413

1995

$1,835,129

536,643

256,816

165,461

143,047

119,184

89,308

N/A

59,332

55,757

62,096

347,485

1996

$1,840,811

547,141

256,210

163,986

140,729

116,141

89,407

N/A

58,926

58,136

61,069

349,066

1997

$1,833,926

551,142

247,488

159,781

136,607

117,242

89,369

N/A

59,230

63,878

61,360

347,829

1998

$1,887,980

577,159

243,938

162,152

140,118

124,302

95,823

N/A

60,348

67,875

62,729

353,536

1999

$1,908,256

594,503

240,492

163,127

137,865

123,349

97,155

N/A

59,851

76,319

63,563

352,033

2000

$2,024,634

666,310

241,585

166,989

143,221

128,134

96,936

N/A

64,882

83,873

64,797

367,907

2001

$2,129,097

720,518

246,881

169,219

145,909

134,106

99,556

N/A

66,750

91,197

64,761

390,201

2002

$2,219,448

785,199

248,250

174,832

151,612

132,538

101,716

N/A

69,563

95,620

63,888

396,230

2003

$2,323,288

846,876

245,461

181,298

157,315

135,509

94,682

83,975

72,312

66,131

65,429

374,299

Federal Agency

Total Costs

 U.S. Postal

 Service

 Department

 of the Navy

 Department

 of the Army

 Department of

 Veterans Affairs

 Department

 of the Air Force

 Department

 of Transportation

 Department of

 Homeland Security

 Department

 of Agriculture

 Department

 of Justice

 Department

 of Defense

 All Other

 Agencies

1

 A year for chargeback purposes is from July 1 through June 30. 

FECA Tables A3-A4

 Fair Share 0 5,284 12,971 13,590 11,028 19,858 20,898 30,348 29,212 43,278
60 61

Part C Black Lung Claims Adjudication

at the Initial Level

FY 2003

Table B—1

Distribution of Part C

Black Lung Claims and Disbursements, by State

FY 2003

Table B—2

1

 All filings since July 1, 1973, including terminated and nonapproved claims.

2

 Active Medical Benefits Only (MBO) claims as of 9/30/03

3

 Active claims currently in payment status, excluding MBO claims, as of 9/30/03.

4

 Disbursements of income and medical benefits for all claims, including

claims paid by the Trust Fund and claims in interim pay status.

Note: Data in column no. 1 may not be consistent with changes from previous years due

to a change in computer systems.

Black Lung Tables B1-B2

Type of Claim

Trust Fund

 Approved

 Denied

Responsible Operators

 Approved

 Denied

Total Findings 

 Total Approved

 Total Denied

1

 PDO is “Proposed Decision and Order”.

Total Claims

Received1

32,649

149

1,991

3,788

6,426

6,948

992

766

285

11,717

1,591

16

241

30,569

17,556

5,103

2,162

87,115

339

44

6,596

231

10,423

143

355

4,596

852

128

415

26

4,259

2,333

3,975

3,281

157

52,812

3,754

624

134,850

40

851

50

20,352

1,673

3,999

47

41,347

1,580

107,346

445

2,554

447

620,988

MBO

Claims2

139

0

12

31

35

38

3

6

1

148

19

0

1

124

81

21

4

1,383

1

0

48

2

39

1

4

8

3

0

2

0

27

6

17

44

0

260

31

4

1,492

0

9

0

253

11

30

0

782

7

1,731

2

5

3

6,868

In Payment

3

1,273

13

179

253

368

578

96

88

24

1,072

193

1

21

1,676

1,006

326

98

5,509

26

7

475

25

596

11

36

287

51

13

52

5

382

147

296

379

7

3,705

210

54

13,664

3

129

8

1,321

153

323

7

4,008

102

9,084

44

213

29

48,626

Total Benefits

($ 000)

4

$9,696

99

1,363

1,927

2,803

4,404

731

670

183

8,166

1,470

8

160

12,767

7,663

2,483

746

41,965

198

53

3,618

190

4,540

84

274

2,186

388

99

396

38

2,910

1,120

2,255

2,887

53

28,221

1,600

411

104,079

23

983

61

10,062

1,165

2,460

53

30,529

777

69,194

335

1,622

221

$370,389

State

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

All Other

Total

PDO’s Issued1

1,521

142

1,379

7,095

531

6,564

8,616

673

7,943

Approval Rate

9.34%

7.48%

7.81%
62 63

 Number of Beneficiaries2

Black Lung Claims, by Class of Beneficiary

FY 1994—FY 20031

Table B—3

1994

37,970

44,073

1,332

83,375

32,013

1,668

513

34,194

117,569

1995

35,220

43,688

1,362

80,270

29,377

1,614

508

31,499

111,769

1996

32,452

43,155

1,393

77,000

26,845

1,558

520

28,923

105,923

1997

29,839

42,468

1,444

73,751

24,599

1,491

511

26,601

100,352

1998

27,340

41,585

1,476

70,401

22,158

1,417

512

24,087

94,488

1999

24,838

40,517

1,508

66,863

19,953

1,384

516

21,853

88,716

2000

22,568

39,053

1,497

63,118

17,978

1,306

508

19,792

82,910

2001

18,248

35,660

1,467

55,375

13,924

1,123

108

15,155

70,530

2002

16,395

34,236

1,221

51,852

12,432

1,077

386

13,895

65,747

2003

14,773

32,615

1,238

48,626

11,131

1,052

353

12,536

61,162

Class of Beneficiary

Primary Beneficiaries:

 Miners

 Widows

 Others

Total Primary Beneficiaries

Dependents of Primary

Beneficiaries:

 Dependents of Miners

 Dependents of Widows

 Dependents of Others

Total Dependents

Total, All Beneficiaries

1

 As of September 30 of each year.

2

 Active claims, including those paid by a RMO, cases paid by the Trust Fund, cases

in interim pay status, cases that are being offset due to concurrent Federal or state

benefits, and cases that have been temporarily suspended. Does not include MBO

beneficiaries.

 Fiscal Year

Department of Labor Black Lung Benefits Program Obligations

FY 1994—FY 2003

($ thousands)

Table B—4

1994

$994,655

554,349

444,276

110,073

52,550

387,756

413,925

$4,362,957

1995

$995,722

525,563

423,736

101,827

51,502

418,656

375,100

$4,738,057

1996

$992,128

499,622

404,623

95,000

47,314

445,192

373,500

$5,111,557

1997

$1,004,672

487,910

392,546

95,363

46,128

470,635

375,000

$5,486,557

1998

$999,822

459,061

376,985

82,076

46,035

494,726

370,000

$5,856,557

1999

$1,005,246

439,442

363,871

75,571

50,788

515,016

402,000

$6,258,557

2000

$1,013,593

422,656

350,266

72,390

49,820

541,117

490,000

$6,748,557

2001

$1,016,994

396,928

336,813

60,116

52,252

567,814

505,000

$7,253,557

2002

$1,034,096

384,234

320,039

64,196

54,273

595,589

465,000

$7,718,557

2003

$1,046,303

370,389

307,371

63,018

55,332

620,582

525,000

$8,243,557

Type of

Obligation

Total

Obligations

 Total

 Benefits1

 Income

 Benefits2

 Medical

 Benefits3

 Administrative

 Costs4

 Interest

 Charges5

Repayable

Advances6

Cumulative

Debt7

1

 Excludes collections from responsible mine operators for benefits paid by

Trust Fund on an interim basis, refunds for OWCP administrative costs paid,

and other miscellaneous reimbursements.

2

 Monthly and retroactive benefit payments.

3

 Includes diagnostic and treatment costs, and reimbursements to the Centers

for Medicare & Medicaid Services of the Department of Health and Human

Services and the Health and Retirement Funds of the UMWA.

4

 Administrative expenses include reimbursements to SSA.

5

 Starting in 1979, the Trust Fund had to borrow funds from the Treasury

Department to pay operating costs not covered by revenues. Interest charges

reflect the cost to the Trust Fund for those advances from the Treasury.

6

 Reflects advances from the Treasury Department during the fiscal year.

7

 Shows the cumulative debt of the Trust Fund to the Treasury.

Note: Detail may not add to totals due to rounding.

Black Lung Tables B3-B4
64 65

 Benefit Rates by Type of Beneficiary

Monthly Part C Black Lung Benefit Rates

1973—2003

Table B—5

Claimant

$169.80

177.60

187.40

196.80

205.40

219.90

232.00

254.00

279.80

293.20

304.90

317.10

328.20

338.00

344.80

358.90

371.80

387.10

403.30

418.20

427.40

427.40

435.10

445.10

455.40

469.50

487.40

500.50

518.50

534.60

Claimant and

1 Dependent

$254.70

266.40

281.10

295.20

308.10

329.80

348.00

381.00

419.60

439.80

457.30

475.60

492.30

507.00

517.20

538.30

557.70

580.60

605.00

627.30

641.10

641.10

652.70

667.70

683.10

704.30

731.00

750.80

777.80

801.90

Claimant and

2 Dependents

$297.10

310.80

328.00

344.40

359.50

384.80

405.90

444.50

489.60

513.10

533.60

554.90

574.30

591.50

603.40

628.10

650.60

677.40

705.80

731.90

748.00

748.00

761.50

779.00

796.90

821.60

852.80

875.90

907.40

935.50

Claimant and 3 or

More Dependents

$339.50

355.20

374.80

393.50

410.80

439.70

463.90

508.00

559.50

586.40

609.80

634.20

656.40

676.00

689.60

717.80

743.60

774.10

806.60

836.40

854.80

854.80

870.20

890.20

910.70

939.00

974.70

1,001.00

1,037.00

1,069.20

Period

7/1/73-9/30/73

10/1/73-9/30/74

10/1/74-9/30/75

10/1/75-9/30/76

10/1/76-9/30/77

10/1/77-9/30/78

10/1/78-9/30/79

10/1/79-9/30/80

10/1/80-9/30/81

10/1/81-9/30/82

10/1/82-12/31/83

1/1/84-12/31/841

1/1/85-12/31/86

1/1/87-12/31/87

1/1/88-12/31/88

1/1/89-12/31/89

1/1/90-12/31/90

1/1/91-12/31/91

1/1/92-12/31/92

1/1/93-12/31/93

1/1/94-12/31/94

1/1/95-12/31/95

1/1/96-12/31/96

1/1/97-12/31/97

1/1/98-12/31/98

1/1/99-12/31/99

1/1/00-12/31/00

1/1/01-12/31/01

1/1/02-12/31/02

1/1/03-12/31/03

1These benefit rates include the additional one - half percent increase that was

granted retroactive to January 1, 1984. The rates in effect prior to the retroactive

payments (1/l/84 through 6/30/84) were: $315.60 for a claimant only; $473.30

Funding

Funding and Disbursements

of the Black Lung Disability Trust Fund

FY 2003

($ thousands)

Table B—6

Month

October 2002

November 2002

December 2002

January 2003

February 2003

March 2003

April 2003

May 2003

June 2003

July 2003

August 2003

September 2003

Totals

$7,674

56,370

60,877

21,850

43,979

42,400

45,132

49,790

4,881

43,849

48,933

80,346

$506,801

$0

0

0

0

0

0

0

0

0

0

0

525,000

$525,000

$548

735

265

662

325

601

532

540

765

550

846

458

$6,827

$8,222

57,105

61,142

22,512

44,304

43,001

45,664

50,330

5,646

44,399

49,779

605,804

$1,037,908

$26,130

25,732

25,556

25,671

25,909

25,949

25,933

25,566

25,435

25,297

25,020

25,174

$307,371

$579

572

472

544

470

417

441

343

383

341

269

250

5,081

$5,315

3,934

4,551

7,030

4,458

5,170

6,213

3,990

5,041

5,500

3,090

3,645

$57,937

$32,023

30,238

30,579

33,245

30,837

31,536

32,587

29,899

30,859

31,138

28,379

29,069

$370,389

$2,636

3,545

5,611

4,019

2,830

5,183

5,396

5,222

5,221

5,225

5,222

5,223

$55,332

$0

0

0

0

0

0

0

0

0

0

0

620,582

$620,582

$34,659

33,783

36,190

37,264

33,667

36,719

37,983

35,121

36,080

36,363

33,601

654,874

$1,046,303

1

 Reimbursements include collections from RMOs, and fines, penalties, and interest.

2

 Includes monthly and retroactive benefit payments.

3

 Treatment expenditures include reimbursements to the United Mine Workers' Health

and Retirement Funds.

Disbursements

Medical Benefits

Coal Excise

Tax

Revenue

Treasury

Advances Reimburse1 Total

Income

Benefits2 Diagnostic Treatment

3

Total

Benefits

Admin.

Costs

Interest on

Advances Total

for a claimant and 1 dependent; $552.20 for a claimant and 2 dependents; and,

$631.10 for a claimant and 3 or more dependents.

Black Lung Tables B5-B6
66 67

Comparison of Benefit Payments Under the Black Lung

Benefits Act (BLBA) With Payments for Permanent Total

Disability Under Selected State Workers’ Compensation Laws

(As of September 30, 2003)

Table B—7

Benefit Under:

BLBA

Alabama

Alaska

Arizona

Arkansas

Colorado

Illinois

Indiana

Iowa

Kansas

Kentucky

Maryland

Missouri

Montana

New Mexico

North Dakota

Ohio

Oklahoma

Pennsylvania

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wyoming

1

 Actual wage paid if less than monthly minimum.

2

 Minimum is $476.30, or $731.77 if employee shows proof of wages, or

worker’s spendable weekly wage if less.

3

 Additional weekly compensation is paid for each dependent, not to exceed

the worker's net wage in North Dakota, and 85 percent of the state average

weekly wage in Utah.

Maximum Monthly

Benefit

(Miners Only)

Maximum Monthly

Benefit

(Incl. Dependents)

Minimum Monthly

Benefit

(Miners Only)

 Calendar Year

Total Industry Compensation

and Benefit Payments Under LHWCA

1

CY 1993—CY 20022

($ thousands)

Table C—1

$265,700

240,449

$506,149

$273,667

247,157

$520,824

$257,895

238,474

$496,369

$272,688

226,592

$499,280

$263,255

219,352

$482,607

$261,559

238,464

$500,023

$283,991

232,778

$516,769

$278,952

249,671

$528,623

$307,708

236,726

$544,434

$310,940

246,603

$557,543

Payments By:

 Self-Insured

 Employers

 Insurance Carriers

Total Payments

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

1

 Includes disability compensation and medical benefit payments under LHWCA, DCCA, and all

other extensions to the Act.

2

 Industry payments are reported to the Department of Labor on a calendar year basis.

$ 534.60

2,463.77

3,524.62

1,619.46

1,905.20

2,797.00

4,321.85

2,199.64

4,775.99

1,870.56

2,474.24

3,126.24

2,811.56

2,048.09

2,338.50

2,325.21

2,788.52

2,286.24

2,922.75

2,593.67

2,325.21

2,069.74

2,948.73

3,761.38

2,281.08

1,578.80

$1,069.20

2,463.77

3,524.62

1,619.46

1,905.20

2,797.00

4,321.85

2,199.64

4,775.99

1,870.56

2,474.24

3,126.24

2,811.56

2,048.09

2,338.50

2,325.213

2,788.52

2,286.24

2,922.75

2,593.67

2,325.21

2,069.743

2,948.73

3,761.38

2,281.08

1,578.80

$ 534.60

675.481

476.302

N/A

86.60

N/A

1,620.71

216.501

574.331

108.25

494.83

216.501

173.20

N/A

155.881

1,268.691

1,394.261

129.901

1,623.701

389.05

350.73

194.85

737.181

186.924

624.38

N/A

Black Lung Table B7 LHWCA Table C1

4

 Minimum compensation benefit ranges from $185.00 to $352.00, according

to marital status and number of dependents.

N/A=Not Applicable
1994 $107,611 $95,856 $2,829 $4,228 $4,699 4,842 $11,382 $10,318 $872 $0 $193

698

683

1998 129,777 118,496 2,699 3,718 4,864 5,208 12,521 10,810 802 4 904 638

1999 131,152 117,574 2,439 4,888 6,251 5,145 11,879 10,748 747 6 377 617

417.87 835.74 208.94 4.33

1

 Maximum became applicable in death cases (for any death after September

28, 1984) pursuant to LHWCA Amendments of 1984. Section 9(e)(1) provides

that the total weekly death benefits shall not exceed the lesser of the average

weekly wages of the deceased or the benefits that the deceased would have

been eligible to receive under section 6(b)(1). Maximum in death cases not

435.88 871.76 217.94 4.31

applicable to DCCA cases (Keener v. Washington Metropolitan Area Transit

Authority, 800 F.2d 1173 (D.C. Cir. (1986)).

2

 Five percent statutory maximum increase applicable in FY 1985 under section

10(f) of LHWCA, as amended. Maximum increase not applicable to DCCA

cases (see note1, above).

68 69

National Average Weekly Wage (NAWW) and Corresponding

Maximum and Minimum Compensation Rates and Annual

Adjustments Pursuant to Sections 6(b), 9(e), and 10(f) of LHWCA

Table C—2

Period

11/26/72-9/30/73

10/01/73-9/30/74

10/01/74-9/30/75

10/01/75-9/30/76

10/01/76-9/30/77

10/01/77-9/30/78

10/01/78-9/30/79

10/01/79-9/30/80

10/01/80-9/30/81

10/01/81-9/30/82

10/01/82-9/30/83

10/01/83-9/30/84

10/01/84-9/30/85

10/01/85-9/30/86

10/01/86-9/30/87

10/01/87-9/30/88

10/01/88-9/30/89

10/01/89-9/30/90

10/01/90-9/30/91

10/01/91-9/30/92

10/01/92-9/30/93

10/01/93-9/30/94

10/01/94-9/30/95

10/01/95-9/30/96

10/01/96-9/30/97

10/01/97-9/30/98

10/01/98-9/30/99

10/01/99-9/30/00

10/01/00-9/30/01

10/01/01-9/30/02

10/01/02-9/30/03

NAWW

$ 131.80

140.26

149.10

159.20

171.28

183.61

198.39

213.13

228.12

248.35

262.35

274.17

289.83

297.62

302.66

308.48

318.12

330.31

341.07

349.98

360.57

369.15

380.46

Maximum

Payable

$ 167.00

210.54

261.00

318.38

342.54

367.22

396.78

426.26

456.24

496.70

524.70

548.341

579.66

595.24

605.32

616.96

636.24

660.62

682.14

699.96

721.14

738.30

760.92

Minimum

Payable

$ 65.90

70.18

74.57

79.60

85.64

91.81

99.20

106.57

114.06

124.18

131.18

137.09

144.92

148.81

151.33

154.24

159.06

165.16

170.54

174.99

180.29

184.58

190.23

Annual Adjustment

(% Increase in NAWW)

——

6.49

6.26

6.74

7.59

7.21

8.05

7.43

7.03

8.87

5.64

4.51

5.712

2.69

1.69

1.92

3.13

3.83

3.26

2.61

3.03

2.38

3.06

DCCA

Expenditures ($)

LHWCA

Expenditures ($)

FY Total

Second

Injury

Cases2

Pre

Amend.

Cases3 Rehab.4 Other5

Number

of

Second

Injury

Cases Total

Second

Injury

Cases

2

Pre

Amend.

Cases

3 Rehab.4 Other5

Number

of

Second

Injury

Cases

LHWCA and DCCA Special Funds’ Expenditures

1

FY 1994—FY 2003

($ thousands)

Table C—3

1

 Special Fund expenditures shown in this table are reported on a cash basis,

i.e., expenses are recognized when paid.

2

 Section 8(f) payments to employees who sustain second injuries which,

superimposed on a pre-existing injury, results in the employee's permanent

disability or death.

3

 Section 10(h) of the Act requires that compensation payments to permanent

total disabilily and death cases, when the injury or death is caused by an

employment event that occurred prior to enactment of the 1972 amendments,

be adjusted to conform with the weekly wage computation methods and

compensation rates put into effect by the 1972 amendments. Fifty percent of

any additional compensation or death benefit paid as a result of these adjustments

are to be paid out of the Special Fund accounts.

4

 In cases where vocational or medical rehabilitation services for permanently

disabled employees are not available otherwise, and for maintenance allowances

for employees undergoing vocational rehabilitation, sections 39(c) and 8(g)

of the Act authorize the cost of these services to be paid by the Special Fund.

5 For cases where impartial medical exams or reviews are ordered by the

Department of Labor (section 7(e) of Act) and where a compensation award

cannot be paid due to employer default (section 18(b)), the expenses or

payments resulting from these actions may be covered by the Special Fund.

Also included as "Other" expenditures of the Funds are disbursements under

section 44(d) to refund assessment overpayments in FY 1991 - FY 1993,

and FY1995 - FY 2003. Excluded are disbursements from proceeds of

employer securities redeemed under section 32 of the Act. These monies are

exclusively for payment of compensation and medical benefits to employees

of companies in default.

Note: Special Fund expenditure totals for some years as shown above may differ from those

reported to Congress in the Appendix to the President's budget. The figures here are from yearend Status of Funds reports while the President's budget reflects total outlays as reported to the

Department of Treasury and may include technical adjustments made by Treasury or the Office

of Management and Budget.

1995 116,656 104,317 2,738 4,328 5,272 5,023 11,435 10,284 845 0 305 641

391.22 782.44 195.61 2.83

1996 118,260 106,536 2,627 4,110 4,987 5,126 11,868 10,266 819 0 783 659

400.53 801.06 200.27 2.38

1997 123,772 111,732 2,570 4,170 5,300 5,209 11,548 10,375 807 1 366 651

LHWCA Tables C2-C3

450.64 901.28 225.32 3.39

2002 131,715 119,661 2,240 4,801 5,013 4,880 11,386 10,214 702 0 469 585

466.91 933.82 233.46 3.61

2000 131,564 119,198 2,459 4,595 5,313 5,025 11,804 10,521 728 0 555 612

483.04 966.08 241.52 3.45

2001 133,374 119,952 2,295 5,121 6,006 4,953 11,341 10,368 708 0 265 601

498.27 996.54 249.14 3.15

2003 131,589 119,965 2,153 4,628 4,844 4,778 11,184 9,997 664 0 523 572
133,000 361,549 CY 2000 12,000 5,103 CY 2000

70 71

LHWCA DCCA

Total Industry

Assessments2

Preceding Year Total

Industry Payments3

 Assessment

Base Year

Total Industry

Assessments2

Preceding Year Total

Industry Payments

Assessment

Base Year

LHWCA and DCCA Special Funds’ Assessments1

CY 1994—CY 2003

($ thousands)

Table C—4

1

 Annual assessments of employers and insurance carriers are the largest single

source of receipts to the Special Funds. Other receipts to the Funds include

fines and penalties, payments for death cases where there is no person entitled

under the Act to the benefit payments, interest earned on Fund investments,

overpayment and third party recoveries, and monies received from redemption

of securities under section 32 of the Act to pay compensation due employees

of companies in default. These payments constitute a small portion of the total

receipts of the Special Funds.

2

 Assessments as shown here are not receipts to the Fund which were received

during a given calendar year, but total assessments that are receivable from

CY

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

employers and insurance carriers based on the Special Fund assessment formula

as prescribed under section 44(c) of the Act.

3

 Annual industry assessments pryor to CY 1985 were based on each employer’s

or insurance carrier’s total disability compensation and medical benefit payments

under the Act during the preceding calendar year. The LHWCA Ammendments

of 1984 revised the method for computing assessments in two ways. Effective

in CY 1985, assessments are based on disability compensation payments only,

thereby excluding medical benefits from the computation. Also, a factor for

section 8(f) payments attributable to each employer/carrier was added to the

assessment base.

 Fiscal Year

Summary of Case Processing Activities Under LHWCA

1

FY 1994—FY 2003

Table C—5

5,720

7,197

3,878

11,075

7,118

3,957

1,781

2,7722

4,553

800

3,7453

5,401

3,957

3,324

7,281

3,527

3,754

3,745

885

4,630

1,397

3,2504

6,207

4,1415

4,107

8,248

3,339

4,909

1,6616

481

2,142

1,7216

3997

7,759

4,909

3,5208

8,429

3,557

4,872

399

457

856

539

3489

6,974

3,84910

3,579

7,428

3,566

3,86211

348

419

767

464

31812

9,006

3,862

3,462

7,324

3,656

3,668

318

421

739

438

326

13

8,675

3,668

3,566

7,234

3,672

3,562

326

423

749

467

295

13

6,489

3,562

3,500

7,062

3,674

3,388

295

317

612

384

248

13

7,391

3,388

3,276

6,664

3,529

2,980

14

248

260

508

319

208

13

5,495

2,980

3,036

6,016

3,499

2,517

208

332

540

282

267

13

Adjudication Level

and Case Status

District Offices

Pending Inventory of Cases

OALJ

 Carryover from Previous FY

 New Cases

Total Docket

 (Dispositions)

Pending Inventory

BRB

 Carryover from Previous FY

 New Cases

Total Docket

 (Dispositions)

Pending Inventory

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

1 Beginning in FY 1988, DCCA cases are excluded from DLHWC's

District Offices' inventory as administration of these cases was delegated to the

District of Columbia government effective July 18, 1988. Case processing

and adjudication activities at the Office of Administrative Law Judges (OALJ)

and Benefits Review Board (BRB) levels continue to include both LHWCA

and DCCA cases.

2

 Includes 2,066 appeals filed in the so-called Ingalls Shipbuilding, Inc. cases,

and involve various issues arising under section 33 of LHWCA.

3

 This figure, as adjusted by BRB, excludes eight cases previously classified

as new appeals.

4

 Data adjustments by the BRB account for the difference between the sum of

activity in FY 1995 and that year's pending inventory at year-end.

5

 The difference between the carryover in FY1996 and pending inventory at

the end of FY1995 is due to data adjustments made by the OALJ.

6 3,250 total appeals were carried over, but figures were adjusted by BRB to

take into account 1,636 separate appeals that were consolidated and disposed

of by 5 decisions.

7 Number adjusted by BRB to account for misfiled, duplicate, or

reinstated appeals.

8 Excludes 116 new "33(g)" cases and 1,496 "33(g)" cases remanded from BRB

being held in abeyance.

9 Number adjusted by BRB to account for misfiled, duplicate, or

reinstated appeals.

10 The difference between the carryover in FY 1998 and pending inventory

at the end of FY 1997 is due to data modifications and corrections made by

the OALJ.

11 The FY 1998 numbers do not include 2,877 section 33(g) cases that

were pending at the beginning of the year, or the 30 dispositions that occurred

in such cases.

12 Data adjustments by the BRB account for the difference between the sum of

activity in FY 1998 and that year's pending inventory at year-end.

13 Data adjusted by BRB to account for misfiled, duplicate, or reinstated appeals.

14 Includes dispositions of Boone 33(g) cases.

113,000 344,103 CY 1995 11,300 6,754 CY 1995

110,000 350,711 CY 1996 11,300 6,361 CY 1996

111,000 334,339 CY 1997 11,000 5,911 CY 1997

LHWCA Tables C4-C5

$116,000

118,000

$346,490

360,566

CY 1993

CY 1994

$11,500

12,000

$9,970

6,787

CY 1993

CY 1994

130,000 343,146 CY 1998 11,300 6,232 CY 1998

133,000 353,462 CY 1999 12,700 5,179 CY 1999

125,000 372,376 CY 2001 11,000 5,552 CY 2001

125,000 364,194 CY 2002 10,800 4,746 CY 2002
72

Status of All EEOICPA Applications

at the End of FY 20031

Table D—1

Case Status/Claims Activity

Total Received-Program Inception Through 9/30/2003

 Final Decisions Completed by

 Final Approved

 Final Denied

 Recommended Decisions by District Offices5

 Recommended Decisions Only, to Approve

 Recommended Decisions Only, to Deny

 Completed Initial Processing-

 Referred to NIOSH

 Pending Initial Processing In District Office6

1

 Statistics show the status of all applications filed from program inception through

September 30, 2003.

2

 “Case” counts are numbers of employees (or survivors of employees) whose work and

illness or death are the basis for a “claim.” (One case may have multiple survivor claims).

3

 “Claim” counts are greater than case counts because they include numbers of employees

and all survivors of employees who filed for benefits.

4

 Each case or claim also received recommended decision by district office.

5

 Each case or claim still pending final decision by FAB.

6

 Includes remanded cases now in development and closed cases.

Processing Activity During FY 2003 on All EEOICPA

Cases/Claims Received Since Program Inception

1

Table D—2

73

EEOICPA Tables D1-D2

Case2

35,924

18,844

7,107

11,737

1,959

184

1,775

13,748

1,373

Claim3

47,133

23,416

10,170

13,246

2,181

308

1,873

19,259

2,277

Processing Activity

Total Cases/Claims Received-FY 2003

Final Decisions by FAB Offices in FY 2003

 Final Approved

 Final Denied

Modification Orders in FY 2003

Recommended Decisions by District Offices in FY 2003

 Recommended Decisions Only, to Approve

 Recommended Decisions Only, to Deny

Referrals to NIOSH in FY 2003

Lump Sum Compensation Payments in FY 2003

1

 Activity statistics capture actions made during FY 2003 only, therefore the number of

activities reported do not add up to the total number of cases/claims received during FY

2003. (Many activities recorded occurred on cases/claims received prior to FY 2003).

2

 “Case” counts are numbers of employees (or survivors of employees) whose work and

illness or death are the basis for a “claim.” (One case may have multiple survivor claims).

3

 “Claim” counts are greater than case counts because they include numbers of employees

and all survivors of employees who filed for benefits.

4

 Total includes cases with recommended decisions in FY 2002.

Case2

9,301

12,1464

3,121

9,025

90

9,977

2,763

7,214

6,381

see claim statistics

Claim3

12,648

15,139

4,765

10,374

125

12,956

4,278

8,678

see case statistics

4,006

Final Adjudication Branch (FAB)4
74 75

EEOICPA Cases With Final Decision To Deny,

Program Inception Through September 30, 2003

Table D—4

EEOICPA Tables D3-D4

EEOICPA Cases With Approved Decisions and Payments,

by Category, Program Inception Through September 30, 2003

Table D—3

Category

Radiation Exposure Comp. Act (RECA)3

Special Exposure Cohort Cancer (CN)

Dose Reconstructed Cancer (CN)

Beryllium Disease (CBD)4

Beryllium Sensitivity-Only (BS)

Silicosis (CS)

Multiple Conditions5

Total

1

 There is not a direct correlation between number of approved cases and

number of paid claimants for two reasons: (1) more than one claimant can

receive payment on a single approved case, and (2) some cases were approved

prior to 9/30/2003, but payments were not issued.

2

 Represents total lump sum compensation payments from EEOIC program

inception to September 30, 2003.

Approved Cases1

2,606

2,537

320

858

847

48

27

7,243

Final Approvals

36.0%

35.0%

4.4%

11.8%

11.7%

0.7%

0.4%

100.0%

Paid Claimants1

4,337

3,446

196

983

N/A

54

27

9,043

($ thousands)

$129,940

377,056

22,020

124,875

N/A

7,200

3,750

$664,841

Compensation Paid

19.5%

56.7%

3.3%

18.8%

N/A

1.1%

1.6%

100.0%

Number of Percentage of Total Number of Compensation Paid2 Percentage of Total

Total

3

 RECA cases are not counted in any other category of this table.

4

 Cases approved for both CBD and BS are counted in the CBD category, only.

5

 Cases counted in the Multiple Conditions category were approved for CN and

CBD, or CN and CS, or CBD and CS, or CN and BS, or CS and BS.

Reason for Denial

Employee Did Not Work at a Covered DOE Facility, Atomic Weapons Employer, or Beryllium Vendor

During a Covered Time Period

Alleged Survivor Not an Eligible Beneficiary

Claimed Condition Not Covered Under Part B of EEOICPA

Dose Reconstruction Reveals the Probability That the Cancer is Related to Employment is Less

Than 50 Percent

Medical Evidence is Insufficient to Establish Entitlement

Total

Number of Cases

1,900

235

7,957

183

1,500

11,775

1

1

 A case may have more than one final decision. (For example, a request for

modification may result in a second final decision on a case). Therefore, the

total number shown does not represent the number of cases with final decisions

to deny.
76

1

 Number of Federal and longshore cases that received counseling, placement

assistance, and training services during the Fiscal Year.

2

 FY 2000 revised to include continuation-of-pay, costs of which are also

included in all later years.

77

Longshore

FECA Nurse FECA Rehabilitation Rehabilitation

OWCP Reemployment and Rehabilitation

FY 1994— FY 2003

(Cost in $ thousands)

Table E—1

FY

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Cases1

5,530

10,574

14,235

15,515

15,261

1,541

3,275

4,623

5,735

5,884

Cost

$5,680

10,136

13,041

14,484

14,575

Cases1

7,778

6,465

6,049

5,628

5,812

1,018

893

842

888

819

Cost

$13,500

13,163

12,672

11,827

11,399

Cases

1

2,028

1,815

1,535

1,606

1,444

352

408

357

309

298

Cost

$4,228

4,328

4,110

4,171

3,722

16,304

18,293

18,825

17,186

6,449

6,885

7,439

8,088

14,783

18,0852

20,413

21,769

5,441

4,835

4,633

4,431

907

747

736

708

11,814

10,119

9,568

7,860

1,464

1,469

1,446

1,384

273

245

265

256

4,895

4,595

5,121

4,801

Reemployments Rehabilitations Rehabilitations

EEOICPA Table D5 OWCP Rehabilitation Table E1

Most Prevalent Non-Covered Medical Conditions,

EEOIC Program Inception Through September 30, 2003

Table D—5

Non-Covered Medical Condition

Other Lung Conditions

Heart Condition/Failure/Attack/Hypertension

Renal Condition or Disorder (Kidney Failure, Kidney Stone)

Chronic Obstructive Pulmonary Disease & Emphysema

Asbestosis

Hearing Loss

Benign Tumors, Polyps, Skin Spots

Neurological Disorder

Diabetes

Thyroid Conditions (e.g., Hypothyroidism)

Anemia

Back or Neck Problems

Parkinson’s Disease

Psychological Conditions

All Other Non-Covered Conditions (Each Less Than 1%)

No Condition Reported on Claim Form

For This Condition1

25%

8

6

6

5

4

2

2

2

1

1

1

1

1

26

10

Percentage of All Denials

1

 Based on 7,957 cases that were denied because claimed condition was not

covered under Part B of EEOICPA.

Note: The sum of individual items may not equal 100 percent due to rounding.

20,000 8,337 20,418 4,965 912 8,342 1,303 220 4,628
Region III—Philadelphia

(Delaware, District of Columbia, Maryland,

Pennsylvania, Virginia, West Virginia)

Regional Office

R. David Lotz, Regional Director

U.S. Department of Labor, ESA/OWCP

Curtis Center, Suite 780 West

170 S. Independence Mall West

Philadelphia, PA 19106-3313

215-861-5402

Philadelphia FECA District Office

William J. Staarman, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

Curtis Center, Suite 715 East

170 S. Independence Mall West

Philadelphia, PA 19106-3308

215-861-5481

Baltimore Longshore District Office

Emma Riley, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

The Federal Building, Room 410-B

31 Hopkins Plaza

Baltimore, MD 21201

410-962-3677

Norfolk Longshore District Office

Basil Voultsides, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

Federal Building, Room 212

200 Granby Mall

Norfolk, VA 23510

757-441-3071

Johnstown Black Lung District Office

Stuart Glassman, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

Penn Traffic Building

319 Washington Street

Johnstown, PA 15901

814-533-4323, Ext 401 (Toll-Free 1-800-347-3754)

79

U.S. Department of Labor

Office of Workers’ Compensation Programs

200 Constitution Avenue, NW., Washington, D.C. 20210

202-693-0031

www.dol.gov/esa/owcp_org.htm

Director,

Office of Workers' Compensation Programs

Shelby Hallmark

Deputy Director,

Office of Workers' Compensation Programs

Nancy M. Flynn

Director,

Division of Planning, Policy and Standards

Cecily Rayburn

Division of Federal Employees' Compensation

(www.dol.gov/esa/regs/compliance/owcp/fecacont.htm)

Douglas C. Fitzgerald, Director

Edward Duncan, Debuty Director

Division of Coal Mine Workers' Compensation

(www.dol.gov/esa/regs/compliance/owcp/bltable.htm)

James L. DeMarce, Director

Division of Longshore and Harbor Workers'

Compensation 

(www.dol.gov/esa/owcp/dlhwc/lstable.htm)

Michael Niss, Director

Division of Energy Employees Occupational Illness

Compensation

(www.dol.gov/esa/regs/compliance/owcp/eeoicp/main.htm)

Peter M. Turcic, Director

Roberta Mosier, Debuty Director

LuAnn Kressley, Chief, Final Adjudication Branch

Region I /II—Northeast

(Connecticut, Maine, Massachusetts,

New Hampshire, New Jersey, New York, Puerto Rico,

Rhode Island, Vermont, Virgin Islands)

Regional Office (New York)

Jaye Weisman, Regional Director

U.S. Department of Labor, ESA/OWCP

201 Varick Street, Room 750

New York, NY 10014

646-264-3100

New York FECA District Office

Zev Sapir, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

201 Varick Street, Room 740

New York, NY 10014-0566

646-264-3000

New York Longshore District Office

Richard V. Robilotti, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

201 Varick Street, Room 740

Post Office Box 249

New York, NY 10014-0249

646-264-3010

EEOICPA Resource Center (New York Site)

David San Lorenzo, Office Manager

6000 North Bailey Avenue, Suite 2A, Box #2

Amherst, NY 14226

716-832-6200 (Toll-Free 1-800-941-3943)

newyork.center@rrohio.com

Boston FECA District Office

Carol Adams, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

JFK Federal Building, Room E-260

Boston, MA 02203

617-624-6600

Boston Longshore District Office

David Groeneveld, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

JFK Federal Building, Room E-260

Boston, MA 02203

617-624-6750

78

Office

Directory
80 81

Wilkes-Barre Black Lung District Office

Maribeth Girton, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

100 N. Wilkes-Barre Blvd., Room 300 A

Wilkes-Barre, PA 18702

570-826-6457 (Toll-Free 1-800-347-3755)

Charleston Black Lung District Office

Richard Hanna, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

Charleston Federal Center, Suite 110

500 Quarrier Street

Charleston, WV 25301

304-347-7100 (Toll-Free 1-800-347-3749)

Greensburg Black Lung District Office

Colleen Smalley, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

Wellington Square, Suite 405

1225 South Main Street

Greensburg, PA 15601

724-836-7230 (Toll-Free 1-800-347-3753)

Parkersburg Black Lung Sub-District Office

Loretta Bird, Supervisory Claims Examiner

U.S. Department of Labor, ESA/OWCP/DCMWC

Federal Building, Suite 3116

425 Juliana Street

Parkersburg, WV 26101

304-420-6385 (Toll-Free 1-800-347-3751)

DCMWC Field Stations

U.S. Department of Labor

ESA/OWCP/DCMWC

Mine Safety & Health Academy, Rm. G-100

Airport Road

Beckley, WV 25802

304-255-6195

U.S. Department of Labor

ESA/OWCP/DCMWC

601 Federal Street

Bluefield, WV 24701

304-325-2164

U.S. Department of Labor

ESA/OWCP/DCMWC

Randolph Co. Senior Citizens' Center

Fifth and Railroad Avenue

Elkins, WV 26241

304-636-4747

U.S. Department of Labor

ESA/OWCP/DCMWC

513 Dingess Street

P.O. Office Box 1979

Logan, WV 25601

304-752-9514

U.S. Department of Labor

ESA/OWCP/DCMWC

Post Office Box 790

Uneeda, WV 25205

304-369-6050

U.S. Department of Labor

ESA/OWCP/DCMWC

Coal Mine Safety & Health District 3

5012 Mountaineer Mall

Morgantown, WV 26505

304-291-4277

Region IV—Southeast

(Alabama, Florida, Georgia, Kentucky, Mississippi,

North Carolina, South Carolina, Tennessee)

Regional Office

Richard A. Brettell, Regional Director

U.S. Department of Labor, ESA/OWCP

214 North Hogan Street, Room 1026

Jacksonville, FL 32202

904-357-4725

Jacksonville FECA District Office

Magdalena Fernandez, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

400 West Bay Street, Room 826

Jacksonville, FL 32202

904-357-4777

Jacksonville Longshore District Office

Charles Lee, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

Charles E. Bennett Federal Bldg.

400 West Bay Street, Room 63A

Jacksonville, FL 32202

904-357-4788

Jacksonville Energy District Office

William C. Franson, District Director

U.S. Department of Labor, ESA/OWCP/DEEOIC

400 West Bay Street, Room722

Jacksonville, FL 32202

904-357-4705 (Toll-Free 1-877-336-4272)

EEOICPA Resource Center (Paducah Site)

Katherine Fuller, Office Manager

Barkely Center, Unit 125

125 Memorial Drive

Paducah, KY 42001

270-534-0599 (Toll-Free 1-866-534-0599)

paducah.center@rrohio.com

EEOICPA Resource Center (Savannah River Site)

Larry Warren, Office Manager

1708 Bunting Drive

North Augusta, SC 29841

803-279-2728 (Toll-Free 1-866-666-4606)

srs.center@rrohio.com

EEOICPA Resource Center (Oak Ridge Site)

Shirley White, Office Manager

Jackson Plaza Office Complex

800 Oak Ridge Turnpike - Suite C 103

Oak Ridge, TN 37830

865-481-0411 (Toll-Free 1-866-481-0411)

or.center@rrohio.com

Pikeville Black Lung District Office

Harry Skidmore, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

164 Main Street, Suite 508

Pikeville, KY 41501

606-432-0116 (Toll-Free 1-800-366-4599)

Mt. Sterling Black Lung Sub-District Office

Brenda K. Jamison, Assistant District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

402 Campbell Way

Mt. Sterling, KY 40353

859-498-9700 (Toll-Free 1-800-366-4628)

Office Directory
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Region V/VII—Midwest

(Illinois, Indiana, Iowa, Kansas, Michigan,

Minnesota, Missouri, Nebrasksa, Ohio, Wisconsin)

Regional Office (Chicago)

Nancy Jenson, Regional Director

U.S. Department of Labor, ESA/OWCP

230 South Dearborn Street, Room 800

Chicago, IL 60604

312-596-7131

Chicago FECA District Office

Joan Rosel, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

230 South Dearborn Street, Room 800

Chicago, IL 60604

312-596-7157

Cleveland FECA District Office

Robert M. Sullivan, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

1240 East Ninth Street, Room 851

Cleveland, OH 44199

216-357-5100

Cleveland Energy District Office

Annette Prindle, District Director

U.S. Department of Labor, ESA/OWCP/DEEOIC

North Point Tower

1001 Lakeside Avenue, Suite 350

Cleveland, OH 44114

216-802-1300 (Toll-Free 1-888-859-7211)

EEOICPA Resource Center (Portsmouth Site)

Kevin Clausing, Office Manager

1200 Gay Street

Portsmouth, OH 45662

740-353-6993 (Toll-Free 1-866-363-6993)

Portsmouth.center@rrohio.com

Columbus Black Lung District Office

Don Dopps, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

1160 Dublin Road, Suite 300

Columbus, OH 43215

614-469-5227 (Toll-Free 1-800-347-3771)

Kansas City FECA District Office

Lois Maxwell, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

City Center Square

1100 Main Street, Suite 750

Kansas City, MO 64105

816-502-0301

Region VI/VIII—Southwest

(Arkansas, Colorado, Louisiana, Montana, New

Mexico, North Dakota, Oklahoma, South Dakota,

Texas, Utah, Wyoming)

Regional Office

E. Martin Walker, Regional Director

U.S. Department of Labor, ESA/OWCP

525 South Griffin Street, Room 407

Dallas, TX 75202

972-850-2409

Dallas FECA District Office

Frances Memmolo, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

525 South Griffin Street, Room 100

Dallas, TX 75202

972-850-2300

Houston Longshore District Office

Chris Gleasman, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

8866 Gulf Freeway, Suite 140

Houston, TX 77017

713-943-1605

New Orleans Longshore District Office

David Duhon, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

4436 Veterans Blvd., Suite 17

Metaire, LA 70006

504-457-6310

Denver FECA District Office

Shirley Bridge, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

1999 Broadway, Suite 600

Denver, CO 80202

720-264-3000

Denver Black Lung District Office

Debra Thurston, District Director

U.S. Department of Labor, ESA/OWCP/DCMWC

1999 Broadway, Suite 690

P.O. Box 46550

Denver, CO 80202-6550

720-264-3100 (Toll-Free 1-800-366-4612)

Denver Energy District Office

Kevin Peterson, District Director

U.S. Department of Labor, ESA/OWCP/DEEOIC

1999 Broadway, Suite 1120

P.O. Box 46550

Denver, CO 80201-6550

720-264-3060 (Toll-Free 1-888-805-3389)

EEOICPA Resource Center (Rocky Flats Site)

Janele Horner, Acting Office Manager

8758 Wolff Court, Suite 101

Westminster, CO 80031

720-540-4977 (Toll-Free 1-866-540-4977)

denver.center@rrohio.com

EEOICPA Resource Center (Espanola Site)

Karen Martinez, Office Manager

412 Paseo De Onate, Suite D

Espanola, NM 87532

505-747-6766 (Toll-Free 1-866-272-3622)

espanola.center@rrohio.com

Office Directory
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Region IX/X—Pacific

(Alaska, Arizona, California, Guam, Hawaii, Idaho,

Nevada, Oregon, Washington)

Regional Office (San Francisco)

Sharon Tyler, Regional Director

U.S. Department of Labor, ESA/OWCP

71 Stevenson Street, Room 1705

San Francisco, CA 94105

415-848-6880

San Francisco FECA District Office

Andy Tharp, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

71 Stevenson Street, Room 305

San Francisco, CA 94105

415-848-6700

San Francisco Longshore District Office

R. Todd Bruininks, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

71 Stevenson Street, Room 1705

Post Office Box 193770

San Francisco, CA 94119-3770

415-848-6675

Long Beach Longshore District Office

Eric Richardson, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

401 East Ocean Blvd., Suite 720

Long Beach, CA 90802

562-980-3577

Honolulu Longshore Sub-District Office

R. Todd Bruininks, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

300 Ala Moana Blvd., Room 5-135

Post Office Box 50209

Honolulu, HI 96850

808-541-1983

Seattle FECA District Office

Marcus Tapia, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

1111 Third Avenue, Suite 650

Seattle, WA 98101-3212

206-398-8100

Seattle Longshore District Office

Karen Staats, District Director

U.S. Department of Labor, ESA/OWCP/DLHWC

1111 Third Avenue, Suite 620

Seattle, WA 98101-3212

206-398-8255

l

Seattle Energy District Office

Christy Long, District Director

U.S. Department of Labor, ESA/OWCP/DEEOIC

719 2nd Avenue, Suite 601

Seattle, WA 98104

206-373-6750 (Toll-Free 1-888-805-3401)

EEOICPA Resource Center (Idaho Falls Site)

Bertha Jones, Office Manager

1820 East 17th Street, Suite 375

Exchange Plaza

Idaho Falls, ID 83404

208-523-0158 (Toll-Free 1-800-861-8608)

idaho.center@rrohio.com

EEOICPA Resource Center (Las Vegas Site)

John Krachenfels, Office Manager

Flamingo Executive Park

1050 East Flamingo Road, Suite W-156

Las Vegas, NV 89119

702-697-0841 (Toll-Free 1-866-697-0841)

vegas.center@rrohio.com

EEOICPA Resource Center (Hanford Site)

Steve Beehler, Office Manager

303 Bradley Blvd., Ste.104

Richland, WA 99352

509-946-3333 (Toll-Free 1-888-654-0014)

hanford.center@rrohio.com

EEOICPA Resource Center (California Site)

Ernest Rios, Office Manager

2600 Kitty Hawk Road, Suite 101

Livermore, CA 94551

925-606-6302 (Toll-Free 1-866-606-6302)

california.center@rrohio.com

National Operations Office

(District of Columbia, Maryland, Virginia,

overseas cases)

Linda DeCarlo, District Director

U.S. Department of Labor, ESA/OWCP/DFEC

National Operations Office

800 N. Capitol St., NW.

Room 800

Washington, DC 20211

202-513-6800

85

Office Directory