OWCP Annual Report 

to Congress 

FY 2001

Submitted to Congress 2002 

U.S. Department of Labor 

Employment Standards Administration 

Office of Workers' Compensation Programs
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OWCP Annual Report 

to Congress 

FY 2001 

Submitted to Congress 2002 

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
SECRETARY OF LABOR 

WASHINGTON

THE HONORABLE PRESIDENT OF THE SENATE 

THE HONORABLE SPEAKER OF THE HOUSE OF REPRESENTATIVES 

Gentlemen:

I have enclosed the Department of Labor's annual report to Congress on 

the FY 2001 operations of the Office of Workers' Compensation Programs. 

The report covers administration of the Federal Employees’ Compensation 

Act as required by Section 8152 of that Act, the Black Lung Benefits Act as 

required by Section 426(b) of that Act, the Longshore and Harbor Workers’ 

Compensation Act (LHWCA) as required by Section 42 of that Act, and the 

Energy Employees Occupational Illness Compensation Program Act for 

the period October 1, 2000, through September 30, 2001. 

Separate enclosures contain reports on annual audits of the Longshore 

and Harbor Workers’ Compensation Act Special Fund and the District of 

Columbia Workmen’s Compensation Act Special Fund accounts as 

required by Section 44(j) of LHWCA. 

I trust that this report both fulfills the requirements of the respective laws 

and is useful to Congress and other interested parties as a comprehensive 

source of information on the administration and operation of Federal 

workers' compensation programs. 

Sincerely,

Elaine L. Chao 

Enclosures
 Contents

 Page 

Assistant Secretary's Message....................................................................................2 

Director’s Message ....................................................................................................3 

OWCP Accomplishments in FY 2001...................................................................... 5 

Federal Employees' Compensation Act .................................................................... 7 

Black Lung Benefits Act..........................................................................................15 

Longshore and Harbor Workers' Compensation Act...............................................26 

Energy Employees Occupational Illness Compensation Program Act....................34 

Medical and Vocational Rehabilitation Programs ...................................................41 

Appendix..................................................................................................................43 

Office Directory .......................................................................................................64 
2

ASSISTANT SECRETARY'S 

MESSAGE

I am very pleased to forward the Office of Workers’ Compensation Programs’ (OWCP) Annual Report for Fiscal 

Year (FY) 2001 to the Secretary, to be transmitted to the Congress. 

In FY 2001, OWCP began administering a new compensation statute, the Energy Employees Occupational Illness 

Compensation Program Act (EEOICPA). This Act provides compensation and medical benefits for employees or 

survivors of employees of the Department of Energy (DOE) and its contractors who suffer from radiation-related 

cancer, beryllium-related disease, or chronic silicosis as a result of their work in producing or testing nuclear 

weapons.

During FY 2001, OWCP also completed the installation of the OWCP Automated System for Imaging Services in 

its Division of Federal Employees’ Compensation offices, allowing every new claim created in the district offices to 

be managed and adjudicated in an electronic environment. 

The Longshore program took major steps to improve its dispute resolution process, while the Black Lung program 

began preparing claims for final adjudication under its new revised regulations. 

Despite the extraordinary amount of work required to establish a new program and the challenge of learning new 

skills, the OWCP staff has remained focused on providing high quality services to its customers. 

Victoria A. Lipnic 

Assistant Secretary for 

 Employment Standards
3

DIRECTOR’S MESSAGE

Fiscal Year (FY) 2001 was an extremely busy year for the Office of Workers' Compensation Programs (OWCP). 

The Office began administering a fourth compensation act, the Energy Employees Occupational Illness 

Compensation Program Act (EEOICPA). Signed into law on October 30, 2000, the Act provides compensation and 

medical benefits for employees or survivors of employees of the Department of Energy (DOE) and its contractors 

who suffer from radiation-related cancer, beryllium-related disease, or chronic silicosis as a result of their work in 

producing or testing nuclear weapons. Primary responsibility for administering the program was assigned to OWCP 

on December 7, 2000, with benefit provisions to become effective on July 31, 2001. Within this very short time 

frame, an OWCP-led task force published interim final regulations; established four district offices for processing 

claims; hired and trained over 135 employees; and drafted dozens of position descriptions, training materials, and a 

procedure manual. Because of the task force’s remarkable efforts, OWCP began receiving and processing claims 

on July 31, 2001, and the first payments of compensation were made to eligible claimants shortly after the effective 

date. 

During FY 2001, the Division of Federal Employees' Compensation (DFEC) completed installation of the 

Automated System for Imaging Services (OASIS). This modernization initiative uses document imaging 

technology to automate largely paper-based operations by converting that paper to electronic form. The "paperless" 

system allows DFEC to improve benefit delivery and customer service, and reduce costs. The Federal Employees’ 

Compensation (FEC) program also continued to produce savings through its Periodic Roll Management project and 

medical cost containment initiatives. The communications initiative begun in FY 2000 made good progress in FY 

2001 with the establishment of a toll-free call center and the addition in each FEC district office of a 

communications specialist to direct and coordinate the implementation of a plan to meet customer service needs. 

Also, FEC program rehabilitation counselors and contract nurses returned nearly 8,200 injured employees to work 

during FY 2001, an increase of seven percent from the previous year. 

The revised Black Lung regulations became effective on January 19, 2001, but were immediately challenged in 

court. The revisions are intended to streamline, update and clarify the program regulations. On August 9, 2001, the 

United States District Court upheld the revised regulations and as a result of this action, adjudicatory activities in 

over 6,000 claims have been initiated. On June 14, 2002, the United States Court of Appeals, District of Columbia 

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). In addition, in their servicing of beneficiaries of disabled coal miners under Part B of the Act, 

Black Lung district offices performed admirably as recognized by the American Customer Satisfaction Index survey 

results that earned the highest rating of any organization tested in FY 2001. 

In FY 2001, the Longshore program made major strides in establishing its Government Performance and Results 

Act goal of decreasing the time needed to resolve disputes and get claims back on track. 

To streamline its field presence and increase operational efficiencies, OWCP’s nine regions were consolidated into 

six during FY 2001. The new regional makeup conforms more closely to the administrative structure of other 

agencies in both the Employment Standards Administration and the Department and furthers the President’s 

workforce restructuring initiative to make the Federal government more “citizen-centered.” 

OWCP's staff performed extremely well in FY 2001, taking steps to improve its current services, successfully 

creating an entirely new program, and adapting to a new automated environment for adjudicating claims. The 
4

enthusiasm and commitment of OWCP's staff to serving its customers and stakeholders is reflected in this report. 

During the final weeks of FY 2001 OWCP staff were again called upon to address the needs of Federal workers 

injured and killed as a result of terrorism. Building on its experience in dealing with the Oklahoma City bombing 

victims, OWCP staff took extraordinary steps to gather and process the claims of the victims of the Pentagon and 

World Trade Center attacks, and subsequently for the postal and other workers exposed to anthrax. The more than 

2,000 Federal Employees’ Compensation Act claims flowing from these terrible events have received special and 

expedited handling from the beginning. 

It is particularly noteworthy that the staff of the OWCP Manhattan office - which is located just a few blocks north 

of the World Trade Center and was within the area closed off to the public - reported to work to start addressing 

their fellow Federal workers’ claims on September 12, while the Trade Center continued to burn. These events 

exemplify OWCP employees’ dedication and sense of purpose. 

 Shelby Hallmark 

 Director, Office of Workers’ 

 Compensation Programs 
5

OWCP Accomplishments in FY 2001 

x On July 31, 2001, the Office of Workers' Compensation Programs (OWCP) began processing claims under 

the Energy Employees Occupational Illness Compensation Program Act. This brand new Act provides 

benefits for Department of Energy (DOE) employees, or the survivors of the employees, who suffer from 

radiation-related cancer, beryllium-related disease, or chronic silicosis as a result of their work in 

producing or testing nuclear weapons. The Act applies as well to employees of private companies that 

worked under contract to DOE. Primary responsibility for administering the program was assigned to 

OWCP on December 7, 2000. Within a remarkably short time OWCP: published implementing 

regulations; established district offices in Jacksonville, Cleveland, Denver, and Seattle; hired and trained 

over 135 employees; and drafted dozens of position descriptions, training materials, and a procedure 

manual. District offices were open for business in August and the first compensation payments were 

issued by the date mandated by Congress. 

x The Federal Employees’ Compensation (FEC) program rose to the challenges presented by the September 

11 attack. OWCP staff ensured that Federal employees injured in the disasters in New York and at the 

Pentagon, and the survivors of those who died, received expedited benefits. The FEC program again 

responded to a unique crisis when the use of the postal system to distribute anthrax-laden envelopes hit 

United States Postal Service employees particularly hard. As with the earlier tragedies, OWCP made sure 

the affected employees promptly received needed benefits and medical care. 

x Periodic Roll Management teams within the FEC program completed reevaluation of 6,018 long-term 

cases. In addition to making sure that the injured workers continue to receive appropriate medical care, the 

reviews resulted in compensation cost savings of $31 million. 

x Fee schedules for outpatient hospital and physician services reduced FECA medical costs by $134.4 

million in FY 2001. An additional $13.3 million in savings was attributable to the Correct Coding 

Initiative (CCI) bill review. When combined with fee schedule savings for inpatient and pharmacy 

services, total medical savings from fee schedules and the CCI were $189.8 million, or 24.1 percent of all 

medical charges in FY 2001. 

x The FEC program completed implementation of the OWCP Automated System for Imaging Services. 

Using the latest in document imaging technology, the system allows claims to be decided and benefits paid 

much more efficiently than before. 

x The revised Black Lung regulations became effective January 19, 2001. In August 2001 a legal challenge 

was defeated when the United States District Court upheld the new regulations. On June 14, 2002, the 

District of Columbia 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). 

x The Division of Coal Mine Workers’ Compensation implemented improved procedures for claimant 

diagnostic testing, including the development of a list of authorized/qualified providers, giving claimants a 

choice of physician and facility for the tests, and requiring consistency in the type of testing. 
6

x With the support of the maritime industry, the Longshore program implemented an extensive outreach and 

educational initiative in the State of Florida to inform employers about their obligation to insure their 

workers and the consequences of neglecting to do so. 

x The Longshore program took a major step toward achieving a Government Performance and Results Act 

goal. By implementing an automated system that measures improvements in the speed with which 

disputed issues are resolved, DLHWC has added yet another tool to its customer service toolbox. 
7

FEDERAL EMPLOYEES' 

COMPENSATION ACT

Introduction

In 1916, President Wilson signed the first comprehensive law protecting Federal workers from the effects of work 

injuries. In the years following, the 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) 2001, 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 are also 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 two-thirds 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 workrelated death are also 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 2001, 165,915 new cases were created and the FEC program provided nearly 280,000 workers almost 

$2.2 billion in benefits for work-related injuries or illnesses. Of these benefit payments, nearly $1.5 billion were for 

wage-loss compensation, $617 million for medical and rehabilitation services, and $128 million in death benefit 

payments to surviving dependents. 

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. 
8

Funding

Benefit payments made by the program come from the Employees' Compensation Fund. Fund outlays are billed to 

employing agencies who each year replenish the Fund through a mechanism known as chargeback. 

Subsequent to chargeback, most agencies, except the U.S. Postal Service and other non-appropriated fund agencies, 

include workers' compensation costs in their next annual appropriation requests to Congress. Remittances to the 

Employees' Compensation Fund are not made until the first month of the subsequent fiscal year. This means that 

there is at least 15 months between the date of the chargeback "bill" and when the payment to the fund is completed. 

Given cost-of-living increases in wage-loss benefits and inflation affecting medical costs, by the time remittance is 

made it is usually 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 are also covered by the DOL 

appropriation. For FY 2001, these non-chargeback expenses were approximately $35 million. Most of these costs 

were for injuries that occurred before December 1, 1960, when the chargeback system was enacted. 

For FY 2001, the costs of administering the FEC program totaled $119.2 million, about 5.1 percent of total program 

costs. These costs are also covered from funds appropriated to DOL, and include $79.0 million in direct costs to 

OWCP. Approximately $9.9 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. Another 

$30.3 million are “fair share” funds used for OWCP capital investments for the design and development of 

automated management information support systems, periodic roll case management, and medical bill cost control.

Case Adjudication and Management 

Timely Decision-Making 

Nearly 166,000 injury claims were filed under FECA in FY 2001. Eighty-three percent were for traumatic injuries 

such as those caused by slips and falls. The rest of the injury claims involved more complex situations in which a 

medical condition arises because of long-term exposure or exertion. Disability extended beyond the 45-day 

continuation-of-pay period in 14 percent of all cases. The FEC program strives each year to meet a high standard of 

timeliness and accuracy in adjudication and payment of claims. In FY 2001, 83 percent of wage-loss claims were 

paid within 14 days of receipt and 95 percent within 60 days. For traumatic injury claims, 95 percent were 

adjudicated within 45 days of the day the OWCP received notice of the injury. 

A high rate of timeliness also was achieved for deciding non-traumatic injury claims. When the case was relatively 

simple, 87 percent were adjudicated within 90 days. Seventy-two percent of the more complex non-traumatic cases 

were adjudicated within 180 days. The average time for adjudication of all occupational disease cases was 83 days. 

Quality Case Management

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 
9

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 2001, nurses intervened in 15,113 lost time claims and 1,318 workers were referred for vocational 

rehabilitation services. Nearly 8,200 injured workers returned to work in FY 2001 with the assistance of contract 

nurses or rehabilitation counselors. Eighty-five percent of the cases with resolutions during FY 2001 were resolved 

within 30 months of the date disability began. The average length of disability during the year was 167 days. 

During FY 2001, the FEC program conducted a nationwide field nurse certification. The certification process 

provides a standardized approach for procuring the services of contract field nurses and ensures high quality 

intervention on behalf of the injured worker. The process consists of soliciting, recruiting, selecting, and 

contracting with registered nurses to work with FECA claimants. 

QCM has speeded returns-to-work, which has reduced the number of cases receiving long-term benefits. It is 

expected that this reduction of both cases entering the long-term compensation rolls and of the amount of time cases 

remain on the rolls will continue, which will provide both monetary savings and more positive, prompt outcomes 

for injured workers. 

Telephonic Case Management

OWCP continues to explore ways to speed up decision-making and to deliver benefits faster. Telephonic Case 

Management (TCM) is one new approach. TCM is limited to 30 days of telephone nurse intervention in cases with 

an initial work stoppage date no more than 30 days prior to the date the case is received. TCM offers several 

features that enhance the FEC program's ability to provide prompt and appropriate intervention at the earliest 

possible juncture. It places an injured worker in contact with a medical professional who is also well versed in the 

compensation system. Workers in rural or isolated areas will sometimes not have access to a field nurse who can 

visit their home. TCM provides early intervention for these workers. It is a relatively low-cost form of intervention 

that reaches a wider population than OWCP has been able to previously. TCM nurses intervened in 17,238 cases 

during FY 2001. 

Lost Production Days 

In FY 2001, the FEC program continued to focus on its strategic goal of reducing lost production days. Efforts are 

focused both on cases during the COP period (with the TCM program) and during the QCM period. The process 

begins with the timely, complete, and accurate submission of injury notices and claims for wage loss by the 

employing agency. The FEC program continues to emphasize the importance of returning injured workers to 

employment as soon as possible. It is in everyone's interest for an employer to provide suitable work as soon as 

medically appropriate. 

Lost production days (LPD) is a measure of the average number of workdays of paid compensation due to 

workplace injury and expressed as a rate per every 100 employees. The government-wide LPD in FY 2000 was 

68.1 days and 74.3 days in FY 2001. Roughly half of the FECA wage-loss time is attributable to U.S. Postal 

Service (USPS) cases. USPS’ average days lost rose more than 3 times the rate of all other agencies. 

Periodic Roll Management Project 

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 
10

rehabilitation and placement assistance, with a view toward reemployment of injured workers. PRM has proved 

hugely successful, with outcomes exceeding OWCP’s original estimates. In FY 2001, staff reduced compensation 

costs by $31.1 million. Over 6,000 cases were screened, and benefits were adjusted or terminated in over 3,000 

cases where beneficiaries’ disability had either resolved or lessened to the point that return to work was possible. 

Given the low administrative costs, PRM continues to be a most cost-effective means of reducing overall 

compensation costs and ensuring appropriate medical intervention for injured workers. 

Hearings and Review

The Branch of Hearings and Review continued in FY 2001 to follow a plan to reduce the backlog of cases pending 

review and scheduling as well as to reduce the average time from request for either hearing or review of the written 

record to a decision. The backlog of cases pending assignment continued to be reduced, falling from 948 on 

October 1, 2000, to 918 on October 1, 2001. 

The time a case is held in the Branch of Hearings and Review was further reduced. In FY 2000, it took 242 days 

from receipt of the case to a decision on a request for hearing. This was reduced to 241 days in FY 2001. The time 

lapse from receipt of case to remand/reversal before hearing met the standard of 100 days in FY 2001. The amount 

of time cases remained in the Branch from their receipt to issuance of a decision based upon a review of the written 

record was reduced from 128 days to 125.3 days in FY 2001. 

OWCP Automated System for Imaging Services (OASIS)

The FEC program completed implementation of the OASIS imaging system in FY 2001. This system allows decisions to 

be made and benefits authorized without the need to chase paper through the system. Correspondence is scanned, 

indexed, and referred on-line to an examiner and available to all staff members. This eliminates problems with file 

contention, improves document control, and greatly increases the efficiency of an examiner's work. 

Improvements to the Physicians Directory System 

The automated Physicians Directory System (PDS) continues to be an important tool for maintaining an unbiased 

system for facilitating OWCP-arranged referee medical examinations. For this reason, the FEC program continued 

to focus on ways to improve its usefulness during FY 2001. 

An enhanced version of the PDS (PDS32) was deployed in all of the FEC district offices. While the new version is 

substantially similar to the previous one in function, its operation is now Windows(TM)-based, allowing for the use 

of the mouse as well as keyboard commands. The enhancements of the PDS32 allow the user to print an 

appointment report at the time it is scheduled, and to produce a more detailed list of physicians in the next numerical 

zip code to the claimant’s when a physician within the claimant’s zip code can not be scheduled. These 

enhancements allow the user to schedule the closest possible appointment, while at the same time fostering strict 

adherence to a rotational system. 

Correct Coding Initiative

The FEC program cost containment efforts initiated in 1999 continued to reduce medical costs in FY 2001. 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. The CCI produced $13.3 million in savings against amounts billed in FY 2001. Combined with $176.5 
11

million saved from application of the fee schedule, total medical billings were reduced by 24.1 percent in FY 2001. 

Services to Claimants and Beneficiaries

In FY 2001, the FEC program continued its focus on improving customer service and customer satisfaction with 

wholesale changes to the way we do business. 

Communications Redesign Initiatives

OWCP continued to improve customer service by launching a comprehensive redesign of FEC communications, 

including new equipment, procedures, goals and measures, and new toll-free services. The Communications 

Steering Committee, created in FY 2000, was instrumental in facilitating systematic and measurable changes across 

the spectrum of communications and customer issues. 

Recommendations by the Steering Committee resulted in the centralization and improvement in service of the 

Interactive Voice Response (IVR) system. The IVR system provides automated entitlement information to callers. 

Information obtained by the committee through a three-day survey of callers to the FEC district offices for purposes 

of identifying frequently asked questions was later used in designing the Toll-Free Call Center. 

A new position of Communications Specialist was created to specifically address the problems identified by the 

Steering Committee and to work toward improving customer service. Each District office has a full-time 

communications specialist who will direct and coordinate all communications initiatives. 

In FY 2001, procedures were devised for utilizing the automated telephone system in handling medical 

authorizations; a written communications module was added to the basic claims examining training course, and; 

telephone training was developed for newly hired claims examiners and experienced staff members. 

In response to customer satisfaction surveys requesting more standardization in the way an office handled telephone 

calls, the committee developed two models, “phone bank” and “operator.” With the purchase and installation of 

new Definity(TM) equipment, these templates were used to program the district offices in order to provide 

customers with similar options and levels of access in each office. 

The Steering Committee finalized recommendations for more objective measures that could be used to support the 

goals of a customer bill of rights. The committee’s recommendations will be used in setting standards of telephone 

service for FEC customers in the FY 2002 strategic and performance plans. 

In summary, the efforts of the Communications Steering Committee will enable OWCP to implement for the first 

time a standard of telephone service that every FEC district office will have a plan to meet. The communications 

specialist will submit an office plan to meet the identified customer service goals on a quarterly basis and will 

include standards for access; availability of voice mail, and; courtesy and accuracy of response. 

Form Letter Project

Another communications-related initiative underway during FY 2001 has been a project to update form letters used 

in the FEC program. To this end, a team of FEC program staff has been working on improving the correspondence 

used by claims examiners. The goal is to eliminate duplication, simplify language, and to develop more useful, 

efficient and customer-friendly communications. 
12

The team revised the FEC publication CA-14 – About Your Injury, which replaced the post card notifications 

previously mailed to injured workers. Injured workers receive current information on how to contact OWCP via 

telephone (Call Center), the Internet (web site address), and in writing (district office mailing address), and 

information on case file review and adjudication, disability for work, and medical care. The work of the form letter 

group is ongoing and will likely continue until all automated form letters have been reviewed and updated. 

Services to Employing Agencies

During FY 2001, the Federal Employees’ Compensation (FEC) program continued to provide a variety of technical 

assistance and other services to employing agencies. 

Timely Submission of Notices and Claims

In FY 2001, the FEC program continued to provide outreach programs to employers emphasizing the need for 

improvement for timely submission of notices of injury and occupational illness (Forms CA-1 and CA-2) and 

claims for wage loss (Form CA-7). As a result of this emphasis, the data shows continuing improvement in the 

timeliness of submissions of notices, rising from 56.1 percent in FY 2000 to 56.6 percent in FY 2001. The Federal 

government as a whole also continued to improve in timeliness of submission of claims for wage loss, rising from 

40.2 percent in FY 2000 to 42.3 percent in FY 2001. 

Employing agencies are required by the FEC program’s regulations 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. The regulations also require that the employer 

submit the initial wage-loss claim (Form CA-7) no more than five working days (or seven calendar days) after 

receipt from the employee. 

The early submission of these forms is critical, as it directly affects OWCP’s ability to act promptly on medical bills 

and prevent any interruption of income. OWCP has long emphasized to employing agencies the vital nature of 

timely submission, and in return promised even earlier interventions. This emphasis has resulted in continued 

improvement in timely filing by many employing agencies. Because of this improvement, the TCM program was 

implemented, allowing very prompt nurse intervention by OWCP. 

The goals for timely submission of notices and lost production days are also a part of the Federal Employees’ Safety 

and Injury Initiative. Both the DFEC national office and regional offices have continued to emphasize the need for 

improvement in timeliness and explain to employers the benefits that such timeliness will provide. The FEC 

program also continues to provide data on the performance of the largest Federal agencies on the OWCP/DFEC 

home page (www.dol.gov/dol/esa/public/regs/compliance/owcp/fecaca.htm). 

Online Access and Electronic Data Interface 

Use of the Agency Query System, a vital tool by which agencies can access benefit entitlement information to 

answer inquires, continued to grow during FY 2001. The system is now being utilized by nearly 6,000 users in 107 

Federal agencies and by 139 Congressional offices. 

The FEC program’s electronic receipt of pharmacy bills switched entirely to a “real-time” service that offers on-line 

adjudication of pharmacy bills. This provides a higher degree of customer service to both the pharmacy and the 

injured worker as the pharmacy knows immediately whether or not the program will pay for a service. Pharmacies 

are more likely to bill the program on behalf of the injured worker if they know that they will be reimbursed for the 

services provided. The program also implemented a real-time authorization system so pharmacies can get certain 
13

prescriptions reviewed and approved over the telephone. The percentage of bills submitted electronically grew to 

approximately 60 percent of the total pharmacy bills received. 

FEC continues to expand the use of Electronic Data Interchange to receive notices of injury and occupational illness 

(Forms CA-1 and CA-2) electronically in an effort to expedite entitlement determinations. One new agency was 

brought up into production and several additional agencies are in the final phase of testing and will be operational in 

early FY 2002. 

The FEC program deployed a new centralized, toll-free Interactive Voice Response (IVR) system during FY 2001. 

The centralized IVR replaces individual systems previously installed in each district office. The centralized IVR 

provides answers to frequently asked questions in addition to allowing limited queries of the system. These queries 

include providing the status of a claim, the status of medical bills submitted for reimbursement, and the date and of 

the most recent compensation payment made to an injured worker. In the first three months of operation, the system 

processed over 40,000 calls that would have otherwise gone to the district offices. 

Response to Terrorist Actions

The FEC program was presented with special challenges by the tragedies of September 11, 2001, and the anthrax 

mailings. Although located in lower Manhattan, the New York District Office opened the day after the attack to 

immediately address workers’ compensation concerns for injured Federal employees and survivors. Staff members 

from the New York and Washington, D.C. offices met with multiple Federal agencies and employee groups to 

ensure that necessary information was disseminated. In the weeks that followed September 11, DFEC National 

Office staff volunteered at the Pentagon Crisis Center, providing daily coverage to ensure that victims’ families 

were fully informed of OWCP’s services. DFEC created a special number series for processing terrorist attack and 

anthrax related claims to ensure expeditious response and benefit approval. The timely and concerted response by 

OWCP staff was recognized by the Defense Department as contributing substantially to the overall recovery effort. 
14

FEDERAL EMPLOYEES' COMPENSATION ACT

Number of Employees (FTE Staffing Used) .............................................................................................................930 

Administrative Budget............................................................................................................................$109.3 Million*

Cases Created .....................................................................................................................................................165,915 

Wage-Loss Claims Initiated .................................................................................................................................23,386 

Total Compensation and Benefit Payments (Actual Obligations) ....................................... $2,199.3 

Million**

Number of Medical Bills Processed ................................................................................................................3,189,233 

 

* OWCP expenditures; excludes DOL support costs, but includes $30.3 million in “fair share” capital investments. 

** Compensation, medical, and survivor benefits.
15

 BLACK LUNG 

 BENEFITS ACT

Introduction

In 2001, OWCP’s Division of Coal Mine Workers' Compensation (DCMWC) completed its twenty-eighth year 

administering Part C of the Black Lung program. The 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. As of September 

30, 2001, approximately 67,000 beneficiaries were receiving total monthly cash benefits of $39 million from SSA. 

On September 26, 1997, officials from SSA and DOL signed a Memorandum of Understanding transferring 

responsibility for managing currently active SSA 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. At present, DOL manages all Federal black lung claims. However, formal appeals on Part B claims 

are referred to 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 
16

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. 

Benefits and Services

The Black Lung Part C program provides two types of benefits, monthly and medical. 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) 2001 were $396.9 million, a 

decrease of $25.8 million from FY 2000. In FY 2001, benefits were provided from the Trust Fund to approximately 

50,000 beneficiaries each month. The Trust Fund had a balance of $38.1 million at the end of FY 2001, with an 

outstanding debt to the Treasury of $7.3 billion.

In FY 2001, 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 79 fee petitions and paid approximately $0.6 million in attorneys’ fees from the Trust Fund.

In FY 2001, 1,236 claims were forwarded for formal hearings before the Office of Administrative Law Judges 

(OALJ) and 553 claims were forwarded for appeals to the Benefits Review Board (BRB). At the end of FY 2001, 

the OALJ had 1,404 claims pending while 498 were pending before the BRB. 

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 2001 were $60.1 million. This 

includes payments of $3.6 million for diagnostic services, $51.6 million for medical treatment, and $4.9 million in 

reimbursements to the UMWA Health and Retirement Funds for costs of treating Black Lung beneficiaries. 
17

Approximately 423,000 bills were processed during the year.

Accomplishments

Customer Satisfaction Surveys and Service Plan

Since 1995, DCMWC has surveyed primary customers (claimants, beneficiaries, coal mine operators, Congressional 

offices, claimant attorneys, and medical providers) to measure the quality and delivery of program services. 

In accordance with Executive Order No. 12862, DCMWC contracted with the University of Michigan to survey 

Part B Black Lung beneficiaries during FY 2001 using their American Customer Satisfaction Index methodology. 

Those conducting the survey telephoned a sample of 260 beneficiaries. The beneficiaries responded by telling the 

callers that they have substantial confidence in the services they receive from DCMWC regarding their Black Lung 

claims. Among the findings: 

x The quality of services received exceeded anticipated quality by 11 percent (94 percent v. 83 percent). 

x On a scale of 1 to 100, the process of receiving benefits and obtaining information from the Black Lung 

program showed scores of 91 percent and 88 percent, respectively. 

x Overall, confidence in the Black Lung program was 96 percent. This is the highest rating ever achieved on the 

University of Michigan survey, exceeding the scores of every other public and private sector institution 

surveyed.

The results of the survey will be used by DCMWC to: 

x Concentrate efforts on high impact areas where improvements can make a difference. 

x Identify gaps between current initiatives and desired outcomes. 

x Formulate a strategy for improving satisfaction results. 

Publication and Implementation of New Program Regulations

In accordance with the provisions of Executive Order 12866, DOL developed a package of proposed Black Lung 

regulatory changes, which were sent to the Office of Management and Budget at the end of FY 1996. The new 

rules went through several stages of review and revision. They were published on December 20, 2000, and affect 

all new claims filed after January 19, 2001. With certain exceptions, the new rules also apply to claims that were 

pending on January 19, 2001. 

On August 9, 2001, Judge Emmett Sullivan ruled against a challenge to the regulations 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 District of Columbia 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). 

DCMWC believes that the new regulations will foster a more streamlined claims review process, and be fairer to 

miners and other claimants. As a result of the new rules, receipts of new claims during FY 2001 were 45.5 percent 

higher than in FY 2000 (up from 5,065 to 7,824). The approval rate at the first level of administrative review 

increased slightly from 8.2 percent to 8.7 percent. 
18

Claimant Diagnostic Testing 

When a miner files a black lung claim, one of the first actions is to schedule the claimant for a series of four 

diagnostic tests (chest x-ray, pulmonary function study, arterial blood gas study, and physical examination) at the 

expense of the Trust Fund. As required by the new program regulations effective after January 19, 2001, DCMWC 

implemented improved procedures for this testing: 

x After conducting an extensive survey of pulmonary physicians during FY 2000, a list of authorized qualified 

providers was developed and published in the OWCP Program Manual. The list is updated on a quarterly basis 

and contains approximately 180 providers. 

x A miner can choose the physician or facility which will provide the tests, but the choice must be from the list of 

qualified providers. 

x The provider must practice within the miner’s state of residence or a contiguous state. 

x To prevent possible fraud or abuse, the miner may not choose any physician who has examined or treated him 

within one year prior to the date of filing, nor may he choose a physician who is a close relative. 

x All pulmonary function studies must be done using a flow-volume loop, which ensures greater accuracy in 

recording the results of the maneuvers performed by the patient. 

DCMWC believes that these revised procedures will improve the quality of the evidence submitted in Black Lung 

claims, making the entire claims review process fairer to all parties. 

Improvements in Initial Claims Processing

The revised Black Lung program regulations became effective January 19, 2001, and pertain to claims filed after 

that date. With certain exceptions, the revised regulations also apply to claims that were pending on January 19, 

2001. Representatives of the coal mine industry filed a suit in Federal court challenging these regulations shortly 

after they were published. The judge assigned to review the suit issued an injunction barring decisions based on the 

new regulations until after he had reviewed them. 

In accordance with this injunction, DCMWC issued no decisions on claims filed on or after January 20, 2001, for 

the duration of this injunction. However, the program took all possible action up to the point where a decision 

would be made, such as developing medical and employment evidence, as well as continuing adjudication of claims 

filed prior to that date. 

In August 2001, the judge issued a decision based on his review. He upheld the validity of the regulations, finding 

them fair and impartial. DCMWC resumed full claims processing activities after that decision. 

A backlog of undecided claims resulted from the injunction. As of September 30, 2001, more than 5,000 claims 

were pending a decision at the initial level. Adjudicating these claims now is a top DCMWC priority. One of the 

division’s long-established priorities is to make an initial decision on all claims within six months of receipt. Black 

Lung program records indicate that in the period leading up to the injunction, DCMWC was meeting that goal more 

than 95 percent of the time. 
19

Operation and Maintenance of Automated Support Package 

DCMWC’s contract with Computer Science Corporation provides the resources to operate and maintain the Black 

Lung program’s Automated Support Package (ASP). The ASP includes the client-server computer system, data 

processing operations, medical bill processing, telecommunications support, and certain administrative functions. 

During FY 2001, DCMWC has followed up automated data processing (ADP) enhancements of previous years with 

further advances: 

x Successfully tested and implemented the production ASP client-server system architecture and transitioned 

users and data to that architecture from the previous mainframe system. 

x Significantly improved the performance of the user interface, batch programs, and database of the production 

Black Lung client-server ASP. 

x Conducted exhaustive reviews of ASP information system security for the Office of Management and Budget 

and other agencies. 

x Installed and implemented Office of the Assistant Secretary for Administration and Management upgrades to 

the Automated Time and Attendance system. 

x Continuously enhanced the DCMWC correspondence application, known as CORS. 

x Developed and integrated the management information subsystem designed to assist DCMWC management in 

assigning and monitoring workloads under the new program regulations. 

x Began the process of upgrading the ASP servers. 

x Began a significant upgrade of the Black Lung WAN through installation of 100mbps ethernet switches. 

x Established the Black Lung web site as a repository of system and policy manuals and documentation. 

x Installed and implemented a powerful report-generating system called Crystal Reports. Key personnel have 

been trained and are creating production reports using this application. 

x Facilitated the moves of several district offices. 

x Replaced obsolete desktop personal computers with upgraded configurations. 

Part B Implementation and Operations 

A Memorandum of Understanding of September 26, 1997, between the Social Security Administration (SSA) and 

the Department of Labor (DOL), transferred the responsibility for managing Part B Black Lung claims from SSA to 

DOL. The transfer was aimed at ending confusion as to which Federal agency handles Part B claims and enhancing 

services provided to beneficiaries. The black lung claimant population now deals with a single agency. The payoff 

has been more efficient use of government resources. 

While DCMWC has performed all required maintenance actions since the beginning of FY 1998, formal appeals, of 

which there are few, are still being handled by SSA. Preliminary planning and the diligence of DCMWC staff 
20

resulted in a very smooth assimilation of the Part B workload. A joint DOL/SSA Office of the Inspector General 

audit report found that DCMWC had improved claims maintenance services and overall customer satisfaction. 

Significant accomplishments related to the Part B transition and operations during FY 2001 included:

x Completing approximately 12,000 maintenance actions, with an average completion time of four days from 

notification. 

x Managing the expenditure of more than $487 million in Part B benefits. 

At the end of FY 2001, DCMWC offices were responsible for 73,585 active Part B cases. 

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. Those claims 

approved by SSA, under Part B of the BLBA, continue to be paid from the Federal Government's general revenues. 

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 2001 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 2001, the Trust Fund received a total of $522.2 million in tax revenues. In comparison, the revenue levels in 

FY 2000 and FY 1999 were $518.5 million and $595.5 million, respectively. 

An additional $5.2 million was collected from RMOs in interim benefits, fines, penalties, and interest during FY 

2001. These funds directly contribute to reducing the amount of repayable advances needed by the Trust Fund. 

Trust Fund expenditures are made for: 

x Monthly and medical benefits to eligible miners and/or their families for approved claims involving miners 
21

whose mine employment ended before 1970, or for claims in which no operator liability can be determined. 

x Administrative costs incurred in the operation of the Black Lung program. 

x 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 2001, the Trust Fund's cumulative debt to the U.S. Treasury was $7.254 billion. While 

tax receipts to the Trust Fund were sufficient to cover everyday operating costs and over $60 million of interest 

charges, repayable advances from the Treasury in the amount of $505 million were required to fund the remainder 

of the interest payments due on this debt for FY 2001.

Total Trust Fund disbursements during FY 2001 were $1.0 billion. These expenditures included $396.9 million for 

benefits (income benefits of $336.8 million and medical benefits of $60.1 million), $567.8 million for interest 

payments, and $52.3 million to administer the program ($30.3 million in OWCP direct costs and $22.0 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). 

Insurance/Self-Insurance

Section 423 of BLBA 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 

$1,000 for each day of noncompliance. State workers' compensation laws also require coal mine operators to obtain 

insurance or qualify as a self-insured 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-fordollar basis. As of September 30, 2001, there were 2,088 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 2001 estimates by DOL's Mine Safety and Health Administration (MSHA), there were 976 coal 

mine operators subject to the requirements of the Act. The Secretary of Labor authorized approximately 360 coal 

mine operators and subsidiaries and/or affiliates to self-insure their obligations under the Act.

MSHA has provided direct computer access to its database system that enables DCMWC to continuously check to 

ascertain that currently operating entities are meeting the insurance requirements for the Federal liability. 
22

Litigation

District Court 

On August 9, 2001, the U.S. District Court for the District of Columbia rejected the coal industry’s sweeping 

challenge to the revised black lung regulations promulgated on December 20, 2000. National Mining Ass’n v. Dep’t 

of Labor, 160 F.Supp.2d 47 (D.D.C. 2001). The court first ruled that it had jurisdiction, rejecting the Department’s 

argument that it lacked jurisdiction because the Act contains an exclusive review scheme that does not include 

district courts. The court reasoned that the Act’s scheme applies to the review of compensation orders but does not 

deprive district courts of jurisdiction over challenges to regulations. 

Turning to the merits of the industry’s challenge, the court ruled in the Department’s favor as to every revised 

regulation, and upheld the Department’s decision not to revise others. The more important regulations include: the 

limitations on the quantity of medical evidence each party to a claim may introduce; the definition of 

pneumoconiosis; the rules defining and governing proof of total disability and total disability due to 

pneumoconiosis; the treating physician rule; the procedures governing additional claims filed after the denial of a 

prior claim; and the rebuttable presumption that when an entitled miner receives medical treatment for a respiratory 

condition, the treatment is compensable. 

On many of the issues, the court deferred to the Department’s interpretation of the Act and regulations. It also 

deferred to the Department’s judgment regarding choices it made in the revised rules, especially in matters of a 

scientific or technical nature. In addition, the court determined that its review of the regulations was confined to the 

record compiled before the Department, and that the Department permissibly relied on outside consultants to assist 

it in analyzing the comments and data received in the rulemaking process. Finally, the court dissolved its February 

preliminary injunction order, reported at 145 F.Supp.2d 1, which had prevented the Department from fully 

processing claims for benefits filed after the regulations became effective in January. The National Mining 

Association filed an appeal with the D.C. Circuit. On June 14, 2002, the court 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). 

Courts of Appeals 

During FY 2001, the courts of appeals issued 92 decisions in cases arising under the Black Lung Benefits Act. In 

addition, 114 appeals were filed. The following summarizes the most significant appellate decisions. 

Modification: 30 U.S.C. § 932(a) incorporating 33 U.S.C. § 922. In King v. Jericol Mining, 246 F.3d 822 (6th 

Cir. 2001), the Sixth Circuit rejected the claimant’s argument that the Act’s modification provision is unavailable to 

employers, holding that the provision is available to employers and employees alike. The court reasoned that 

nothing in the plain language of the statute or the implementing regulation, 20 C.F.R. § 725.310, supported the 

claimant’s argument. 

Weighing Medical Evidence: 20 C.F.R. § 718.202. In Peabody Coal Co. v. McCandless, 255 F.3d 465 (7th Cir. 

2001), the Seventh Circuit vacated an award of benefits to the miner’s widow, and remanded the case to the 

administrative law judge (ALJ) for reconsideration. The pathologist who performed the autopsy of the miner 

opined that the miner had pneumoconiosis. Other pathologists came to a contrary conclusion based upon slides of 

the miner’s lung tissue prepared by the autopsy pathologist. The ALJ was persuaded by the opinion of the autopsy 

pathologist simply because he performed the autopsy. The court rejected the ALJ’s automatic preference for the 

opinion of the autopsy pathologist, holding that the ALJ failed to supply any reason to believe that visual scrutiny of 

the miner’s body is more reliable than microscopic examination of tissue samples as a way to diagnose 

pneumoconiosis. 
23

Statute of Limitations: 30 U.S.C. § 932(f). In Tennessee Consolidated Coal v. Kirk, 264 F.3d 602 (6th Cir. 2001), 

the Sixth Circuit held that the miner’s claim was timely because it was filed within three years of his being informed 

of a medical determination that he is totally disabled due to pneumoconiosis. In dicta, however, the court opined 

that once the statute of limitations begins to run, it is not stopped even if the medical determination that triggered it 

is found to be unreliable and the miner’s claim is denied. In such a case, the court said, once the statute is triggered 

and three years expires, the miner will be unable to file subsequent claims against his employer even if he becomes 

totally disabled due to pneumoconiosis. 

Benefits Review Board 

During FY 2001, DOL filed over 980 pleadings with the Benefits Review Board. The Board issued several 

decisions that significantly affect the Secretary’s administration of the benefits program. 

Preliminary Injunction Order in National Mining Association v. Chao. On February 9, 2001, the district court 

adjudicating the National Mining Association’s challenge to DOL’s new black lung regulations issued a preliminary 

injunction order which required the Board to stay all pending black lung appeals except those in which it 

determined, after briefing by the parties, that the challenged regulations would not affect the outcome of the case. 

By the time the injunction was dissolved on August 9, 2001, DOL had filed over 445 supplemental briefs 

addressing the effect of the new regulations in cases in which formal briefing had been completed, and had also 

filed pleadings discussing the impact of the new regulations in numerous other cases during the regular briefing 

process. With only a few exceptions, the Director argued that the new regulations would not alter the outcome of 

the case, and that the Board therefore need not stay these appeals. The Board ordered a stay in only two cases. 

Medical Opinions Hostile to the Act. A medical opinion is considered “hostile” to the Act and may be discounted 

if it is fundamentally at odds with any of the principles expressed in the statutory and regulatory scheme. Two of 

these principles are that even the earliest form of coal workers’ pneumoconiosis, known as “simple” 

pneumoconiosis, may be totally disabling and that pneumoconiosis may cause an “obstructive” pulmonary 

impairment. In Chester v. Hi-Top Coal Company, __ Black Lung Rep. __ (July 31, 2001), the Board held that a 

physician’s statements that it would be “highly unusual” for simple pneumoconiosis to be totally disabling and that 

the disease would cause a mixed obstructive and restrictive impairment did not evidence hostility to the Act because 

the doctor did not categorically rule out that simple pneumoconiosis could be disabling and recognized that 

pneumoconiosis could cause an obstructive impairment. 

Pneumoconiosis. To prevail on a claim for benefits, a miner must establish that he suffers from pneumoconiosis 

which arose at least in part out of coal mine employment. The regulations recognize two forms of pneumoconiosis -

- “legal” and “clinical.” Clinical pneumoconiosis is diagnosed by chest x-ray, autopsy or biopsy. A miner with 10 

years of coal mine employment is entitled to a statutory presumption that his clinical pneumoconiosis arose out of 

that employment. Legal pneumoconiosis, in contrast, is established only if a physician credibly links a chronic lung 

disease to the miner’s coal mine employment. In Hapney v. Peabody Coal Company, 22 Black Lung Rep. 1-104 

(2001)(en banc), the Board agreed with the Director that a miner with 10 years of coal mine employment who is 

diagnosed with anthracosis by biopsy has established the existence of clinical pneumoconiosis which is presumed to 

be due to coal mine employment. The Board reasoned that the regulatory definition of pneumoconiosis identifies 

“anthracosis” as one of the clinical pneumoconioses – those diseases generally recognized by the medical 

community as characterized by a fibrotic reaction of the lungs to inhaled dust. 

Attorney Fees. A claimant who prevails is entitled to an award of reasonable attorney fees under the Act. The fees 

are payable by the party opposing entitlement, which may choose to contest all or part of a fee request. Reaffirming 

its earlier decision in Workman v. Director, OWCP, 6 Black Lung Rep. 1-1281 (1984), the Board has again held 

that a claimant’s attorney is also entitled to fees for work performed in the successful defense of his or her fee 

petition. Hawker v. Zeigler Coal Company, __ Black Lung Rep. __ (July 2, 2001)(Decision and Order on 
24

reconsideration). 

Enforcement

The Department has brought a civil money penalty proceeding against the Alabama Land and Mineral Corporation 

and its former officers. Although the company is now being liquidated under Chapter 7 of the Bankruptcy Code, it 

operated coal mines for over three years without securing its liability for black lung benefits. An operator may 

secure its liability by obtaining the Department's permission to self-insure or by purchasing commercial insurance. 

The Black Lung Benefits Act provides that an operator that operates a mine without appropriate security is liable, 

along with its officers, for a civil money penalty of up to $1,000 for each day of operation. The case was pending 

before the Office of Administrative Law Judges at the close of FY 2001. 
25

BLACK LUNG BENEFITS ACT


Number of Employees (FTE Staffing Used) .............................................................................................................208 

Administrative Budget............................................................................................................................ $30.3 Million**

Total Compensation and Benefit Payments......................................................................................... $396.9 Million***

Trust Fund Beneficiaries in Pay Status at End of Fiscal Year 

 Monthly ..............................................................................................................................................................48,342 

 Medical Benefits Only.........................................................................................................................................7,976 

Responsible Coal Mine Operator Beneficiaries in Pay Status at End of Fiscal Year 

 Monthly ................................................................................................................................................................6,463

 Medical Benefits Only..........................................................................................................................................1,960 

 




 Reflects expenditures for Part C claims only; Part B data is published in the Social Security Administration 

Bulletin. 

** Direct administrative costs to OWCP only; excludes DOL support costs of $22.0 million. 

*** 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. 
26

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 longshore, harbor and other maritime workers who are injured during 

their employment or who contract an occupational disease related to employment. Survivor benefits are also 

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: 

x The Defense Base Act of August 16, 1941, provided 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. 

x The Nonappropriated Fund Instrumentalities Act of June 19, 1952, covers civilian employees in post 

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

x 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. 

x 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 $528.6 million in Calendar Year (CY) 2000, a 2.3 percent increase compared to CY 1999. 

Operations

In Fiscal Year (FY) 2001, total expenditures for program operations and the overall administration of LHWCA 

were $25.0 million, of which $9.8 million were the direct costs of OWCP. The remaining $15.2 million were the 

costs of legal, audit, and investigative support provided by the Office of Administrative Law Judges (OALJ), 
27

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 106 people in 

the national office and 12 district offices. 

During FY 2001, 23,480 lost-time injuries were reported under the Act by approximately 330 self-insured 

employers and 410 insurance carriers. At year's end, 14,830 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 which 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 2001, the district offices conducted 3,028 informal conferences which 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 to 

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 carries on this tradition with program staff helping covered workers and their dependents 

process claims and required reports and get information on 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 740 insurance carriers and selfinsured employers. 

Accomplishments

ADP Systems/Automation 

In FY 2001, the Longshore program continued implementing enhancements to its automated Longshore Case 

Management System (LCMS) and Longshore Disbursement System by: 
28

x Initiating the LCMS Centralization Project. The focus of this project is the consolidation of the 12 regional 

LCMS databases into one central database that is housed on a single database server in the National Office. 

When completed, the centralized database will improve efficiency of automated systems operations and provide 

significant cost savings with the advent of the Employment Standards Administration’s (ESA) centralized 

Information Technology architecture. It also will provide added database security by allowing the Longshore 

program to take full advantage of ESA’s “mirrored site” contingency/disaster recovery capability. 

x Updating the publicly accessible Longshore internet site to include a listing of currently authorized insurance 

carriers and self-insured employers, Longshore program Industry Notices, and the Longshore (LHWCA) 

Procedure Manual, with a goal of improved customer service and enhanced information dissemination to the 

public. 

Claims Management Initiatives

The DLHWC took two major steps to improve its dispute resolution process, the primary function of the program’s 

district offices. First, an automated measurement system was successfully implemented to monitor improvements in 

the speed with which DLHWC resolves disputed claim issues. This Government Performance and Results Act goal 

focuses on decreasing the time needed to resolve disputes and get claims back on track. During FY 2001, DLHWC 

established a baseline, developed the automation system, and implemented the measure. The first results of this 

initiative will be reported in the spring of 2002. Secondly, DLHWC provided mediation training, focused 

specifically on workers’ compensation issues, to all its claims examiners and district directors. The training 

provides the entire staff with important new tools that will assist in the dispute resolution work in each of the 

Longshore program’s district offices. 

Longshore Coverage Compliance Initiatives

Uninsured employers, who leave their workers at risk for the costs of work-related injuries, and place themselves at 

risk of ruinous tort suits in case of such claims, are a growing problem in some parts of the country. The causes of 

the problem are typically the relatively high premium cost, or a lack of knowledge about the risk. During FY 2001, 

DLHWC initiated a three-pronged outreach and education initiative to inform employers about the obligation to 

insure their workers and about the severe costs for not doing so. First, DLHWC conducted a series of public 

seminars for employers, insurance agents, and others in the State of Florida, where the problem is most prevalent. 

Speakers at these seminars included Longshore district office staff, Florida Workers’ Compensation Division staff, 

the National Council on Compensation Insurance (the national premium rate setting organization), a leader in the 

maritime insurance agency industry, legal staff from DOL’s Solicitor’s Office, and the director of DLHWC. 

Second, DLHWC is working with the construction licensing agents of Florida’s counties to assist them in applying 

requirements for proof of coverage prior to issuing new construction permits. Finally, DLHWC accompanied state 

enforcement agents on inspection visits to a number of suspected work sites to examine proof of insurance 

coverage. Through these compliance initiatives, DLHWC is monitoring the coverage requirements, providing 

compliance assistance, and making itself available to assist employers. All of these initiatives were very well 

received by the maritime industry. 

Customer Survey Redesign

The DLHWC has used a mailed customer survey method to assess customer satisfaction with Longshore program 

services. Analysis of this methodology revealed inherent weaknesses in this approach, leading to an initiative to 

redesign DLHWC’s process for surveying its customers. The mailed survey method resulted in statistically 

insignificant and unreliable response rates, conflicting responses, and sample bias. The approach being evaluated 

would utilize telephone surveys immediately following the provision of services, and will rely on questions 

carefully
29

designed to eliminate any bias. DLHWC plans to design and test this new methodology during FY 2002, and to 

establish a baseline from which future service quality improvements will be measured. 

Rehabilitation Outcomes Study

Rehabilitating disabled workers is a key goal of the Longshore program. To this end, DLHWC undertook a study 

of its rehabilitation processes and systems in FY 2001 in order to collect information from participants, service 

providers, and case managers that will identify ways to increase participation and improve outcomes for future 

claimants. By the end of FY 2001, DLHWC had completed the surveys of on-staff rehabilitation specialists, and 

had developed the instruments for surveying injured workers and rehabilitation service providers. The goal is to 

complete the study by the end of calendar year 2001, and to analyze the results and develop a system enhancement 

plan during FY 2002. One specific goal of the improvements is the automation of the claimant referral process, 

using the LCMS to identify workers who may be ready for rehabilitation evaluation. 

Longshore Regulations to Implement a Medical Fee Schedule

During FY 2001, DLHWC evaluated the costs and benefits of promulgating rules that would standardize the OWCP 

medical fee schedule for use in all Longshore claims. The regulatory initiative was abandoned as being an 

unnecessary burden. Rather than promulgating new rules, system participants are encouraged to use the prevailing 

community charges for similar services and the provider’s customary charges; and the OWCP fee schedule, where 

appropriate, as the final reference when needed to resolve disputes. 

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 which 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 self-insurers 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 which is also administered by OWCP. Payments to and from 

this fund apply only to the DCCA. 

The LHWCA Fund paid $133.4 million in benefits in FY 2001, of which $120.0 million went for second injury 

(section 8(f)) claims. FY 2001 expenditures of the DCCA Special Fund totaled $11.3 million, of which $10.4 
30

million went for second injury cases. 

Litigation

The following summarizes the significant decisions issued in the Courts of Appeals during FY 2001 involving 

provisions of the LHWCA and its extensions. 

Administrative Procedures: Authority of ALJ and Board to Consider Contractual and Insurance Issues 

Between Putative Employers. The Fifth Circuit, in Temporary Employment Services v. Trinity Marine Group, 261 

F.3d 456 (5th Cir. 2001), held that LHWCA administrative tribunals are not authorized to consider contractual and 

insurance issues between labor-supply contractors and the customers to whom they lend employees. In dispute was 

whether contractual arrangements required TESI to bear liability under the Act for injuries sustained by the workers 

TESI supplied to Trinity in the course of Trinity’s work and under its supervision. The Court agreed with the 

Director that the LHWCA proceedings should simply fix liability on the employer as a matter of LHWCA law and 

leave any extra-statutory reallocation of the liability, including any contractual or equitable basis for 

indemnification, for proceedings before a court of general jurisdiction. 

Administrative Procedures: Board Jurisdiction. In a case arising under the now superceded District of Columbia 

extension of the LHWCA, the Court held that the Board lacked jurisdiction to review an OWCP district director’s 

order determining that the claimant’s employer underpaid its obligations under an earlier award when it reduced its 

ongoing periodic payments. Snowden v. Director, OWCP, 253 F.3d 725 (D.C. Cir. 2001). The court found that the 

district director’s order, which determined the meaning and effect of the earlier order making the award, could only 

be characterized as a “supplementary” order issued under section 18(a) of the LHWCA. It was therefore reviewable 

only in summary judicial enforcement proceedings under that provision, instead of by appeal to the Board. The 

court did not reach the question whether the supplementary order correctly calculated annual cost of living 

adjustments under section 10(f) of the Act for the years between the occurrence of the claimant’s injury and the date 

her disability was classified as permanent and total. 

Administrative Procedures: Time to Seek Reconsideration of an ALJ Decision. How to compute the ten-day 

time limit for filing a motion for reconsideration of an administrative law judge (ALJ) decision was determined in 

Ingalls Shipbuilding, Inc. v. Galle and Director, OWCP, 246 F.3d 440 (5th Cir. 2001). The Fifth Circuit deferred to 

the Director’s construction of the Secretary’s regulation, 20 C.F.R. § 802.206(b)(1), and held that the computation 

of time rule in Federal Rules of Civil Procedure Rule 6(a) applies to the determination whether a motion for 

reconsideration of an ALJ order is timely. Thus, the time limit for filing a motion to reconsider an ALJ order is ten 

business days, exclusive of intermediate weekends and legal holidays. The Court rejected the employer’s argument 

that the time computation should be governed by 29 C.F.R. § 18.4, which would include weekends and holidays in 

calculating time periods of more than seven days. 

Attorney Fees. The Fifth Circuit granted panel rehearing of its decision regarding attorney fees under section 28(b) 

in Staftex Staffing v. Director, OWCP (Loredo), 232 F.3d 431 (5th Cir. 2000). On rehearing, the Court reversed its 

initial holding that the claimant failed to submit the disputed issue of average weekly wage to the District Director at 

informal conference and thus did not obtain a recommendation for the employer to accept or reject. Recognizing 

that the claimant was satisfied with the wage rate employer was basing voluntary payments upon at the time, and the 

claimant therefore had no reason to raise this issue at the informal conference, the panel withdrew its original 

opinion, and affirmed the award of fees. Staftex Staffing v. Director, OWCP (Loredo), 237 F.3d 409 (5th Cir. 2000). 

Coverage: Status. In American Stevedoring Ltd. v. Marinelli, 248 F.3d 54 (2nd Cir. 2001), the Second Circuit 

agreed with the Director that a union representative, whose job consists primarily of enforcing work rules under a 

collective bargaining agreement, satisfies the maritime status requirement for coverage under the LHWCA. The 
31

Court found the Supreme Court’s decision in Chesapeake & Ohio Ry Co. v. Schwalb, 493 U.S. 40 (1989), 

controlling and that Marinelli’s shop steward position was integral or essential to ASL’s stevedoring operation.

Employer-Employee Relationship: Borrowed Employees. Earlier Fifth Circuit cases, decided in the context of 

the immunity against tort liability that the LHWCA grants to “the employer,” have held that where a company 

“borrows” its employees from a labor-supply contractor, the “employer” is the company whose work is being 

performed, on whose premises it is performed, and under whose supervision it is performed. This conclusion is not 

altered by that company’s attempt to avoid an employer-employee relationship through its contractual arrangement 

with the labor-supply contractor. In Temporary Employment Services v. Trinity Marine Group, 261 F.3d 456 (5th 

Cir. 2001), the Court agreed with the Director that those contractual arrangements, including any contractual or 

equitable basis for indemnification, need not be considered in making the employer-employee determination in the 

LHWCA proceedings. 

Employer-Employee Relationship: Relative Nature of Work Test. In Marinelli, the Second Circuit also 

addressed the question whether the stevedoring company or the union was a union shop steward’s employer. The 

court found the “right to control” test inappropriate and found that the inquiry should focus on the nature of the 

claimant’s work and the relation of that work to the stevedoring company’s regular business. Since Marinelli’s 

shop steward duties were a regular part of the stevedoring work, the stevedore was his employer and liable for his 

work-related disability despite his allegiance to the union. 

Last Employer Rule. In Newport News Shipbuilding and Dry Dock Co. v. Stilley and Director, OWCP, 243 F.3d 

179 (4th Cir. 2001), the Court of Appeals for the Fourth Circuit deferred to the Director’s construction of the 

LHWCA, and held that an employer of a worker who incurs a disabling and ultimately fatal lung disease due, in 

part, to exposure to asbestos fibers in the workplace may not evade liability on the ground that the worker’s asbestos 

exposure in subsequent non-maritime employment also contributed to the disease. As a result, the Court held that 

the employer was fully liable for the workers benefits under the LHWCA despite his potential claim against a 

subsequent employer, the National Aeronautics & Space Administration, for the same asbestos-related disease 

under the Federal Employees’ Compensation Act. 

Modification: Section 22. In Bath Iron Works Corp. v. Director, OWCP (Hutchins), 244 F.3d 222 (1st Cir. 2001), 

the court held that section 22, the Act’s provision governing modification of a prior award, authorized an ALJ to 

consider whether a subsequent insurer, different from the insurer that was previously found liable under the 

LHWCA for medical expenses, should be responsible for disability compensation for which the claimant recently 

became eligible. 

Nominal Awards. In Newport News Shipbuilding and Dry Dock Co. v. Stallings, 250 F.3d 868 (4th Cir. 2001), the 

Fourth Circuit found a worker who sustained an actual, but very small, loss of wage-earning capacity, but whose 

actual wages had increased since the occurrence of the injury due to additional overtime, to be partially disabled 

within the meaning of the LWHCA. The worker was a welder with metal fume fever, a work-related injury caused 

by the inhalation of welding fumes. On rainy days he lost wages because his medical restriction prevented him 

from working indoors. The ALJ held that his award of $3.78 a week was a “nominal” award of the nature approved 

by the Supreme Court in Metropolitan Stevedore Co. v. Rambo, 521 U.S. 121 (1997). However, the Board and the 

Fourth Circuit concluded that the award was not a “nominal” one because it was based upon actual wage loss. 

After an ALJ and the Board denied an injured worker’s claim for a nominal award, the Third Circuit reversed and 

found him entitled to such a de minimus award in Barbera v. Director, OWCP, 245 F.3d 282 (3rd Cir. 2001) 

because he proved he had a present medical disability and a reasonable expectation of future loss of wage-earning 

capacity.

Special Fund Liability: Absolute Defense. In Director, OWCP v. Newport News Shipbuilding and Dry Dock Co. 

(Dillard), 230 F.3d 126 (4th Cir. 2000), the Court considered whether the absolute defense of section 8(f)(3) applied 

where the employer amended its request for relief by adding a different medical condition as a basis for relief when 
32

the case was before the ALJ. The Court followed its earlier decision in Director, OWCP v. Newport News 

Shipbuilding and Dry Dock Co. (Elliot), 134 F.3d 1241 (4th Cir. 1998), holding that a factual determination was 

necessary on the question whether the employer could not have reasonably anticipated the liability of the special 

fund based on the evidence it possessed when the case was in front of the district director. 

Special Fund Liability: Contribution to an Insubstantial Award. In Newport News Shipbuilding and Dry Dock 

Co. v. Stallings, 250 F.3d 868 (4th Cir. 2001), a case where the worker sustained an actual, although very small, loss 

of wage-earning capacity, the Court declined to apply the rationale of the Ninth Circuit and reversed a denial of 

section 8(f) relief. Todd Shipyards Corp. v. Director (Porras), 792 F.2d 1489 (9th Cir. 1986) held that section 8(f) 

relief was not available as a matter of law where the injured worker was only entitled to compensation in the form 

of a “nominal” award. Here, the Board concluded that the award was not nominal but was nevertheless too “small 

in fact” to permit a finding that it was “substantially greater” than it would have been absent preexisting permanent 

partial disabilities. The Court recognized that the award itself was “insubstantial,” but held that the Act requires a 

factual finding that the award is not “materially and substantially greater” than it would have been and that a remand 

was necessary in this case because the ALJ denied 8(f) relief as a matter of law. 

Special Fund Liability: Late Raising. In Ceres Marine Terminal v. Hinton and Director, OWCP, 243 F.3d 222 

(5th Cir. 2001), the court held that an employer who seeks to transfer its liability for compensation payments to the 

special fund under section 8(f) must ordinarily raise that issue before the ALJ no later than the initial hearing on the 

compensation claim. The Court rejected the employer’s assertion that the 1984 amendments to the LHWCA and the 

implementing regulations, which expressly made an employer’s failure to raise the issue of section 8(f) relief during 

informal proceedings prior to an ALJ hearing an “absolute” affirmative defense, relieved the employer of the 

necessity of also subsequently raising the issue promptly before an ALJ. Thus, the employer waived its claim for 

section 8(f) relief when it failed to raise it until modification of the ALJ order awarding permanent disability 

compensation was sought. 

Special Fund Liability: Waiver. In Stallings, the Fourth Circuit also held that the ALJ did not abuse his discretion 

by permitting the Director, after the ALJ’s decision issued, to withdraw his concession that section 8(f) relief was 

appropriate. At the outset of the ALJ hearing, the Director informed the ALJ by letter that if the ALJ awarded 

compensation the Director conceded the employer’s entitlement to section 8(f) relief. The Director’s concession 

letter was not conditioned on the entry of other than a nominal award. In allowing the Director to reverse his 

position because the ALJ awarded only a trifling amount of compensation, the Court noted that the Director had not 

been aware that he had a legal defense to section 8(f) relief until the award was made. In addition, in connection 

with its motion for reconsideration, the employer had sufficient opportunity to respond to the Director’s explanation 

for withdrawing his concession. 

Suitable Alternate Employment. Newport News Shipbuilding and Dry Dock Co. v. Riley, 262 F.3d 227 (4th Cir. 

2001), involved a worker who was discharged from her shipyard job for poor performance in an apprentice program 

some months after sustaining an employment-related injury. The Court found that Norfolk Shipbuilding & Dry dock 

Corp. v. Hord, 193 F.3d 797 (4th Cir. 1999) was applicable, rather than Brooks v. Newport News Shipbuilding & 

Dry Dock Co., 2 F.3d 64 (4th Cir. 1993), and that Hord required the employer to establish that suitable alternate 

employment was available or pay total disability compensation for the period following the termination during 

which she showed that she was unable to perform her pre-injury work. This result obtained even though the 

employer was paying her a wage equal to her pre-injury wage at the time of the discharge and her injury played no 

part in the discharge. 
33

LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT 

Number of Employees (FTE Staffing Used) .............................................................................................................106 

Administrative Budget...............................................................................................................................$9.8 Million* 

Lost-Time Injuries Reported ................................................................................................................................23,480 

Total Compensation Paid.....................................................................................................................$675.2 Million** 

 Wage-Loss and Survivor Benefits.....................................................................................................$511.1 Million** 

 Medical Benefits................................................................................................................................$164.0 Million** 

Sources of Compensation Paid 

 Insurance Companies.........................................................................................................................$249.7 Million**

 Self-Insured Employers .....................................................................................................................$279.0 Million**

 LHWCA Special Fund ..........................................................................................................................$133.4 Million 

 DCCA Special Fund................................................................................................................................$11.3 Million

 DOL Appropriation ...................................................................................................................................$3.0 Million

*Direct administrative costs to OWCP only; excludes DOL support costs. 

**Figures are for CY 2000. 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 Act are reported to DOL for the previous 

calendar year. 
34

ENERGY EMPLOYEES

 OCCUPATIONAL ILLNESS

COMPENSATION PROGRAM ACT

Introduction

Since World War II, Federal nuclear activities have been explicitly recognized under Federal law as activities that 

are ultra-hazardous. Nuclear weapons production and testing have involved unique dangers that private insurance 

carriers have not covered. Recurring exposures to radioactive substances and beryllium, even in small amounts, can 

cause medical harm. From the beginning of the nation’s nuclear weapons program in 1942 with the Manhattan 

Project, through the Cold War effort, a large number of nuclear weapons workers were put at risk without their 

knowledge or consent. More than two dozen scientific findings indicate that these employees are experiencing 

increased risks of dying from cancer and non-malignant diseases. Several of these studies have also established a 

correlation between excess diseases and exposure to radiation and beryllium. Scientific evidence supports the 

conclusion that occupational exposure to dust particles or vapor of beryllium can cause beryllium sensitivity and 

chronic beryllium disease. Studies also indicated that 98 percent of radiation-induced cancers within the nuclear 

weapons complex have occurred at dose levels below existing maximum safe thresholds. Existing state workers’ 

compensation programs did not provide a means of ensuring adequate compensation for the types of occupational 

illnesses and diseases sustained by employees at those sites. 

The Energy Employees Occupational Illness Compensation Program Act of 2000, as amended (EEOICPA), 42 

U.S.C. § 7384 et seq., provides lump-sum payments and medical benefits to civilian workers who became seriously 

ill as a result of their exposure to radiation, beryllium or silica in the production or testing of nuclear weapons and, 

where applicable, survivors of such workers. The EEOICPA also provides for smaller lump-sum payments and 

medical benefits to individuals already found eligible for an award under section 5 of the Radiation Exposure 

Compensation Act (RECA) and, where applicable, their survivors. 

The EEOICPA is administered by four Federal agencies. As the lead agency, the Department of Labor (DOL) 

administers the claims adjudication and compensation program. Executive Order 13179 mandated promulgation of 

regulations to support program administration by May 31, 2001, to accommodate implementation of the program on 

July 31, 2001. DOL formed a task force in February 2001 to develop regulations, policies and procedures, training, 

compensation program forms and an automated system for processing claims of Energy employees and their 

families. Interim final regulations were published on May 25, 2001, and DOL began accepting claims on July 31, 

2001. The Department of Health and Human Services (HHS) is tasked with establishing methods for calculating 

radiation dose estimates and performing such calculations. HHS is also responsible for developing procedures to 

determine the probability that a given cancer was caused by exposure to radiation and for adding additional worker 

groups to the Special Exposure Cohort, as appropriate. The Department of Energy (DOE) is responsible for 

assisting DOL and HHS by providing access to relevant information on worker exposures, including access to 

restricted data, and providing records necessary to verify covered employment. In addition, DOE is responsible for 

establishing a program to assist DOE contractor employees in state workers’ compensation proceedings for 

conditions caused by toxic exposure during their employment in a DOE facility. The Department of Justice (DOJ) 

notifies beneficiaries under section 5 of the RECA of their possible EEOICPA entitlements and provides specific 

information needed by DOL to complete the claim development and adjudication process for RECA claimants. 
35

The EEOICPA provides for lump-sum compensation payments of up to $150,000 to covered employees and 

qualified survivors of such employees of DOE, its predecessor agencies (the Manhattan Project and the Atomic 

Energy Commission) and certain of its vendors, contractors and subcontractors. The Act also provides 

supplemental lump-sum payments of up to $50,000 to individuals already found eligible for benefits for illnesses 

covered under section 5 of the RECA and, where applicable, for their survivors. In addition, medical benefits are 

payable for treatment of covered conditions. 

Diseases covered under EEOICPA include radiogenic cancers, beryllium sensitivity, chronic beryllium disease, 

chronic silicosis, and those diseases covered under section 5 of the RECA. Cancers are divided into two categories: 

Special Exposure Cohort cancers (SEC) and non-Special Exposure Cohort cancers (non-SEC). SEC cancers are 

specified cancers contracted by a covered employee who worked in a gaseous diffusion plant for an aggregate of at 

least 250 days at the following identified sites: Paducah, Kentucky; Portsmouth, Ohio; and Oak Ridge, Tennessee. 

The SEC also includes individuals exposed to radiation as a result of the Long Shot, Milrow, and Cannikan tests 

conducted on Amchitka Island, Alaska. Employees meeting the requirements for covered employees at an 

identified SEC site who are diagnosed with a specified cancer are afforded a presumption of causation between the 

employment and the diagnosed cancer. Covered employees with cancer at all other locations and covered 

employees who are included in the SEC but are diagnosed with a non-specified cancer fall into the non–SEC cancer 

category. This category requires dose reconstruction and use of the probability of causation algorithm developed by 

the National Institute for Occupational Safety and Health (NIOSH) to determine whether the cancer is at least as 

likely as not caused by the covered employment exposure. 

Benefits and Services 

The mission of the Division of Energy Employees Occupational Illness Compensation (DEEOIC) is to provide 

lump sum compensation and medical benefits to covered employees suffering from designated illnesses and also 

provide compensation to certain qualified survivors of these covered employees. 

District offices issue recommended decisions on claims. If a claimant disagrees with a recommended decision, he 

or she may file objections to findings of fact and/or conclusions of law and request a hearing or review of the 

written record. All recommended decisions made by the district offices are forwarded to the Final Adjudication 

Branch (FAB). The FAB is responsible for conducting hearings or reviews of the written record and issuing final 

decisions on all claims. 

Any recommended decision still pending a hearing or a review of the written record one year from the date of the 

recommended decision will be considered affirmed. Claimants may request reconsideration or reopening of any 

final decision issued by the FAB. After exhausting these administrative review opportunities through OWCP, a 

claimant may seek judicial review of any final decision. 

Entitlement to benefits under the EEOICPA may be affected when tort suits are filed against beryllium vendors and 

atomic weapons employers. Any pending tort suit filed against either a beryllium vendor or an atomic weapons 

employer must be dismissed within specified time frames in order to receive benefits. Any award already received 

as a result of a civil action or settlement for a disease covered by the EEOICPA shall be offset from the payment 

made under EEOICPA. 

Following an extensive two-month outreach program that covered audiences in 30 cities, 10,123 claims were 

received in the period from July through September 30, 2001. In the two-month period from the date of 

implementation to the end of Fiscal Year (FY) 2001, district offices issued 457 recommended decisions and the 

FAB issued 180 final decisions. Lump sum compensation payments totaling $3.5 million were authorized for 35 

claims. Medical bills paid totaled $2,718 for three claims. The claims that were submitted covered the following 
36

medical conditions: 416 chronic beryllium disease; 330 beryllium sensitivity; 1,390 SEC cancer; 4,813 non-SEC 

cancer; 213 renal disease; 282 silicosis; and 1,750 other claimed conditions. In addition, 1,852 RECA claims were 

submitted. 

Program Operations 

The National Office, consisting of a Director, Deputy Director and four Branch Managers, and their staffs, is 

responsible for program management and administration. The Branch of Policies, Regulations and Procedures is 

responsible for implementing policy and procedures in support of the regulations and statute. The Branch of 

Outreach and Technical Assistance provides public outreach, training and assistance. It also responds to public and 

congressional inquiries. The Branch of Automated Data Processing (ADP) Coordination and Control provides 

management information system support to facilitate the EEOICPA vision and mission and ensure that fundamental 

EEOICPA legislative program requirements are met. The FAB conducts reviews of the written record, holds 

hearings and issues final decisions on all claims. By the end of FY 2001, the National Office had 36 employees. 

Four district offices located in Cleveland, Denver, Jacksonville and Seattle are responsible for adjudicating claims 

and administering benefits for claims falling within each jurisdiction. Staffing at the district offices totaled 108 

employees at the end of FY 2001. 

Ten Resource Centers, jointly sponsored by both DOL and DOE, were established and are strategically located near 

nuclear weapons production and testing facilities. These centers, staffed by contractor personnel, are designed to 

assist employees and survivors in applying for benefits under EEOICPA. Resource Centers accounted for 

approximately 40 percent of program initial claims activity through the end of FY 2001. Traveling Resource 

Centers provide claim-filing assistance to former and current employees or survivors in identified locations that do 

not have a permanent resource center. 

Program information and assistance also is available to the public at the EEOICPA toll-free Call Center, (866) 888-

3322, or the web site available at www.dol.gov/esa/regs/compliance/owcp/eeoicp/main.htm. Since the inception 

of the Call Center in May 2001, more than 14,000 contacts have been made through September 30, 2001. Contacts 

included explanation of EEOICPA benefits and mailing of information packets containing all of the required forms 

and various fact sheets. 

The web site contains a wide variety of information relevant to the EEOICPA. The home page includes the 

following: the Act; a listing of the SEC cancers; pertinent phone numbers; and various forms necessary to submit 

claims. The web site also provides links to other agencies’ home pages relevant to the Act; this includes links to 

DOJ, DOE and NIOSH. Further, the web site contains up-to-date press releases, town hall meeting schedules and 

locations, and information regarding current outreach and resource center activities. The site also provides 

information regarding the details of how the EEOICPA operates and what the program does. In addition, the web 

site outlines the EEOICPA mission statement, provides district and national office information and contains on-line 

claim forms. The site is updated frequently and provides access to information regarding important regulatory 

information. 

DOL received a FY 2001 appropriation of 250 full-time equivalent employees and $60.3 million. Of the $60.3 

million, $10 million was transferred to HHS to provide funding to fulfill its responsibility under EEOICPA. A total 

of $20.4 million was apportioned for DOL’s implementation activities during FY 2001. From this $20.4 million, 

$50,000 was transferred to DOJ for research to respond to DOL requests for verification of RECA awards necessary 

for the adjudication of EEOICPA claims and $920,000 was transferred to DOE’s Office of Worker Advocacy to 

defray DOL’s share of the costs for establishment and operation of Resource Centers. 
37

The DOL funding provides for operations and support in the Washington, D.C. National Office, four district offices 

and FAB offices; a toll-free call center; resource centers; IT support systems; medical bill processing; and on-going 

systems operations costs. A total of $30 million was reserved for future use. 

Case Adjudication and Management 

An important aspect of case management since the law was first introduced has been interaction between 

departmental agencies. Executive Order 13179 delegates the administration of the Act to the Department of Labor. 

Several other agencies, however, have prominent roles in the processing of claims. These include DOE, DOJ, and 

NIOSH within HHS. DEEOIC staff have worked closely with all of these agencies to create procedures for smooth 

handling and processing of cases. DEEOIC holds weekly teleconference calls with all three agencies to coordinate 

ongoing efforts. The Program has been in constant communication with DOE regarding employment verification 

issues, with NIOSH regarding dose reconstruction and the transfer of cases for proper handling, and with DOJ 

concerning all claims that involve the RECA. 

The DEEOIC has developed a specific system for case management. Claims are submitted to the district office 

having jurisdiction where the current or former employee last worked. When a claim is received, a case file is 

created and a new claim record is entered into the Energy Case Management System (ECMS). Claims are assigned 

to claims examiners in the district offices based on predetermined workload splits. Claims examiners are 

responsible for case development and making recommended decisions for acceptance or denial of benefits.

Although the claimant has the burden of proof to demonstrate the existence of all criteria necessary to establish 

eligibility under the EEOICPA, claims examiners are tasked with assisting claimants in obtaining information to 

support a claim. The case development process may include requesting factual or medical evidence from the 

employee or survivor and obtaining employment verification or medical information from the DOE. In addition, 

certain cancer claims (cancer claims not covered under the Special Exposure Cohort provision of the Act) are sent to 

NIOSH for a dose reconstruction. The dose reconstruction by NIOSH estimates the radiation dose that the 

employee was exposed to based on individual dose records, the type of position held, the duration of the 

employment, and the facility history. The claims examiner will use the dose reconstruction information to 

determine the probability of causation (the likelihood that cancer is at least as likely as not related to the work 

exposure) based on guidelines established by NIOSH. When all case development activities are completed, the 

claims examiner issues a recommended decision to accept or deny the claim. The recommended decision will 

include a discussion of the case, findings of fact and conclusions of law. All recommended decisions issued by the 

district office are forwarded to the FAB and are reviewed by hearing representatives for accuracy and consistency 

with the regulations. If the claimant disagrees with the recommended decision, the claimant has the option to 

request an oral hearing or review of the written record by the FAB. Thereafter, the FAB issues a final decision. If a 

claimant disagrees with the final decision of the FAB, the claimant may file suit in a U.S. district court. 

When a claim is accepted, in most cases, the claimant receives a lump sum compensation payment (cases approved 

for beryllium sensitivity receive medical monitoring). The covered employee is also entitled to receive all medical 

services, appliances or supplies that a qualified physician prescribes or recommends and DEEOIC considers 

necessary to treat the occupational illness. Payment for medical bills is retroactive to the date the employee filed a 

claim for benefits. 

Accomplishments

x Congress passed the EEOICPA in October 2000. A task force of qualified specialists was formed and worked 

together to create regulations. Interim final regulations were published in the Federal Register on May 25, 

2001.
38

x User-friendly forms were developed to obtain required program information. 

x By July 31, 2001, the task force had established district offices, employed staff in each office, created a 

computer system, and the Program was ready to begin receiving claims. 

x Training for claims examiners and resource center staff was developed and implemented. 

x Sixty public town hall meetings were jointly conducted by the Departments of Energy and Labor in 30 

locations throughout the nation to explain the EEOICPA and respond to questions. 

x Resource Centers to assist claimants in filing claims were established in 10 locations between July and August, 

2001.

x A web site to provide the public with EEOICPA information and forms was established on July 15, 2001. 

x A toll-free Call Center to answer routine program questions and process requests for forms and informational 

brochures was established on May 25, 2001. 

x The first lump sum payment of $150,000 was made on August 9, 2001. 

x By September 30, 2001, the DEEOIC had received 10,123 claims, issued 457 recommended decisions, and 

rendered final decisions on 180 cases. 

x In the two months between the July 31, 2001, implementation and the end of the fiscal year, the DEEOIC had 

issued 35 lump sum payments to eligible individuals and three medical benefit payments. 

x On July 31, 2001, the first release of an automated case management system was deployed. 

x Requirements and design work were completed for cloning and customizing an existing OWCP Black Lung 

medical bill processing system. 

Management Information Systems 

The Branch of ADP Coordination and Control was staffed and organized to provide ADP support, to facilitate 

program vision and mission, and to ensure that fundamental EEOICPA legislative program requirements are met. 

The ADP group coordinated with the Employment Standards Administration to establish automated connectivity for 

a central office and four new district offices and a full system development lifecycle process for building an Energy 

Case Management System software application. 

With two months to develop an ADP support solution for claims processing, DEEOIC adopted the philosophy of 

building the bones first – delivering the basic fundamentals, then incrementally building onto the claims, medical 

bill, and compensation processing software. By necessity, completion of these systems would be extended into FY 

2002 after evaluating the needs of the user community. The short-term objectives were developing a centralized 

case management system to allow capture and update of claims data, cloning and customizing the Federal Black 

Lung program’s medical bill processing system, and using the Electronic Certification System (ECS) provided by 

the U.S. Treasury to create, verify and transmit compensation payment transactions on accepted claims. 

On July 31, 2001, the first release of an automated case management system was deployed. This system provided 

claims processing staff in the DEEOIC district offices with rapid on-line entry, maintenance, and tracking of data on 

Energy worker claims submitted to the program. The system included an on-line case query that allows DEEOIC 
39

staff to respond quickly to phone queries about the claim’s status. Also, an ADP technical support group was 

established to respond to questions from district claims processing staff regarding claims processing software, user 

access and system operations. Both an e-mail group and a technical support phone number were set up for easy 

access to support staff. The majority of questions are answered within two hours. Members of the technical support

team also provide on-site training to new DEEOIC staff, develop job aids, and release notes to guide staff in the use 

of case management system operation. 

By September 30, 2001, the system enabled the following on-line activities: staff was able to view, add and 

maintain information on employees, survivors, work sites, medical conditions, and Special Exposure Cohort ; search 

cases and claims by case identification number, name, and date of birth; and add and maintain security features for 

users and functions. 

The case management system stores the claims data for all district offices on a centralized database in Washington, 

D.C. These data are then available for ad hoc query regarding the status of claims processing activities throughout 

the program, and across all district offices. 

The DEEOIC used the ECS provided by the U.S. Treasury to issue compensation payments on claims that have 

been adjudicated and accepted. In FY 2002, a compensation processing component will be built into the ECMS. 

To support timely payment of medical benefits on accepted employee claims, the DEEOIC negotiated a vendor 

agreement with Computer Sciences Corporation for development and testing of the bill processing system. It 

includes a dedicated front-end scanning/editing system and identifies processing requirements for each type of 

medical bill. On September 20, 2001, a final vendor agreement was negotiated for centralized medical bill 

processing operations. 
40

ENERGY EMPLOYEES OCCUPATIONAL ILLNESS

COMPENSATION PROGRAM ACT 

Number of Employees (as of end of FY 2001)...............................................................................144 

Administrative Budget...............................................................................................$60.3 Million


Cases Created....................................................................................................................10,123 

Recommended Decisions.........................................................................................................457 

Final Decisions.....................................................................................................................180 

Number of Claims Approved for Compensation.................................................................................35 

Number of Medical Payments.......................................................................................................3 

Total Lump Sum Compensation Payments Authorized.............................................................$3.5 

Million 

Total Medical Bill 

Payments..................................................................................................$2,718

 


 Includes $10 million transferred to the Department of Health and Human Services to assist in that agency’s 

responsibilities under EEOICPA. 
41

 MEDICAL AND VOCATIONAL 

 REHABILITATION PROGRAMS

Injured Employees Back to Work

Under the direction of OWCP staff nurses and rehabilitation specialists in Division of Federal Employees’ 

Compensation (DFEC) and DLHWC district offices, private sector registered nurses and vocational rehabilitation 

counselors provide assistance to injured workers in their recovery and return-to-work process. During Fiscal Year 

(FY 2001, OWCP’s medical and vocational rehabilitation program returned 8,440 injured employees to work, an 

increase of 7.2 percent over FY 2000. In large part this achievement was possible due to OWCP’s ongoing 

emphasis on the reduction of lost production days, a key Government Performance and Results Act performance 

goal for FY 2001. Additionally, OWCP’s commitment to enforce mandatory claimant participation and cooperation 

in the nurse intervention program and to expedite the submission of reports of injury and pertinent claim 

information to allow for earlier and more effective medical and/or vocational rehabilitation intervention has 

contributed to the continued increase in the number of injured employees going back to work.

Over 24,900 injured Federal and longshore employees received some form of medical or vocational rehabilitation 

service from OWCP during FY 2001. Nurses returned 7,439 employees to work under the Federal Employees’ 

Compensation Act (FECA) while vocational rehabilitation counselors placed 736 Federal and 265 longshore 

workers. Costs for vocational rehabilitation service and maintenance allowances were $9.6 million for FECA and 

$5.1 million for Longshore, while FECA nurse services were $20.4 million. 

Medical Cost Oversight 

Fee Schedules and Unbundling Medical Bills 

The FECA regulations (63FR 65284-345) permit the application of fee schedules to three different types of medical 

services paid by the Federal Employees’ Compensation (FEC) program on behalf of injured Federal workers. 

During FY 2001, the total charges for medical services for the FEC program subject to the fee schedules were 

reduced by 24 percent, or $176.5 million. The application of the professional fee schedule, which is based on the 

Centers for Medicare and Medicaid Services’ (CMS), formerly the Health Care Financing Administration, relative 

value scale, resulted in savings of $134.4 million, while the use of the inpatient fee schedule produced $32.5 million 

in savings and savings of $9.6 million were attributed to the pharmacy fee schedule. 

The Correct Coding Initiative, a system of algorithms developed by CMS to detect incorrect billing practices that 

was implemented by OWCP in FY 2000, produced savings of $13.3 million during FY 2001. Importantly, the 

medical coding specialists hired to carry out the resolution of bills failing the “unbundling” edits and other complex 

edits and appeals, have added a higher level of professional expertise to the DFEC district offices. They have

contributed significantly to improve the coding of diagnoses and medical procedures, and the resolution of medical 
42

bills, as well as to the quality and timeliness of our contacts with the provider community. 

Establishment of Focus Reviews 

In the FEC program, as in many other compensation systems, a significant portion of the volume and costs of 

medical services can be ascribed to a small number of treatments or services. Characteristically, these highutilization services are prescribed as ongoing treatments in a large number of cases. At present, although the 

OWCP fee schedules and automated medical bill processing edits monitor overpricing and other improper billing 

practices, they do not address utilization or medical appropriateness issues. To verify and monitor the 

appropriateness and utilization of these services, the program has devised procedures whereby cases that reach preset activity and/or cost thresholds for certain services are earmarked for standardized focus reviews. The goal of 

these reviews is to improve the medical management of FECA cases and reduce expenses. 

Since physical therapy is one of the major medical cost drivers in the FEC program, and because there is anecdotal 

information of cases with excessive or prolonged therapy, it was selected as the first group of services to be 

examined. In FY 2001, 89,459 claimants received physical therapy and the program paid $79.5 million, or an 

average of $1,145 per case. The above data serves as a baseline to measure improvements in this area in subsequent 

years.

Upper Extremity Disorders Study 

In 1998, the Robert Wood Johnson Foundation, Workers Compensation Initiative, awarded a grant to Georgetown 

University for studying methods to improve the return-to-work outcomes in upper extremity injuries and diseases. 

The project, which Georgetown and OWCP designed jointly, seeks to improve the OWCP Nurse Intervention 

Program by training nurses on special ergonomic and problem-solving techniques and introducing these techniques 

to the medical management process. Recruitment of cases began in May 1998 and ended in mid-October 2000. 

More than 200 injured workers who met the selection criteria participated in the study. Analysis of the outcomes is 

in progress and a final report should be available May 2002. At present, anecdotal information and a partial 

assessment of the data indicate that nurses who received the ergonomic training are more likely to address 

ergonomic issues and to recommend simple, effective and inexpensive work site modifications to facilitate the 

return to work. 

Contracts for Medical Second Opinion Services 

Medical second opinions are an important component of the claims adjudication and management process, and they 

play a critical role in assuring that medical and wage-loss compensation benefits are paid appropriately. Medical 

second opinions help claims examiners to determine the causal relationship between work factors and the injury or 

disease, help them to assess the extent and duration of a physical impairment or disability, help to determine the 

appropriateness of therapy, and help to determine when recovery has occurred and a return to work is feasible. 

During FY 2001, OWCP renewed contracts for the provision of medical second opinion services in support of 

DFEC operations at the District Offices in Boston, New York, Philadelphia, Jacksonville, Cleveland, Chicago, 

Kansas City, Denver, San Francisco, Seattle and Dallas. During the year, contractors provided more than 12,000 

second opinions at an estimated saving to the program of $2.4 million. The quality of reports provided by the 

contractors has been very good. Reports are clearly written, comprehensive, and responsive to claims examiners’ 

questions, and the average time for delivery of reports continues to be significantly shorter compared to the period 

before these contracts were in place.
43

 Appendix

 Page 

A. FECA Tables A1 - A4 ...................................................................................44 

B. Black Lung Tables B1 - B7 ...........................................................................48 

.

C. LHWCA Tables C1 - C5 ...............................................................................55 

D. EEOICPA Tables D1 – D3............................................................................60 

E. OWCP Rehabilitation Table E1 ....................................................................63 

Note: Unless otherwise stated, the financial information in the appendix tables below 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.
 Table A-1

 Federal Employees' Compensation Rolls, FY 1992 - FY 2001

 (Cases at End-of-Year)

 Fiscal Year

 Roll Type 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Periodic Roll 59,823 59,551 60,136 59,605 58,329 55,484 56,159 54,897 54,709 56,133

 % change v. prior yr. - -0.5% 1.0% -0.9% -2.1% -4.9% 1.2% -2.2% -0.3% 2.6%

 Long-Term Disability 51,763 50,312 50,538 50,685 50,021 49,319 50,105 48,957 48,870 50,409

 % change v. prior yr. - -2.8% 0.4% 0.3% -1.3% -1.4% 1.6% -2.3% -0.2% 3.1%

 Death 6,721 6,623 6,589 6,537 6,353 6,165 6,054 5,940 5,839 5,724

 Short-Term 1/ 1,339 2,616 3,009 2,383 1,95500000

1/ Beginning in FY 1997, short-term periodic roll cases are no longer tracked separately
 Table A-2

 Federal Employees' Compensation Program

Summary of Claims Activity, FY 1992 - FY 2001

 Fiscal Year

 Claim Activity 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

INCOMING CASES

Cases Created 177,098 179,357 185,927 180,350 175,052 173,319 165,135 166,544 174,471 165,915

Traumatic 154,533 154,424 160,560 154,250 150,204 146,489 138,975 140,383 145,915 137,877

 No Lost Time 78,449 71,987 71,999 74,602 75,829 78,642 75,321 83,472 91,620 86,402

 Lost Time 76,084 82,437 88,561 79,648 74,375 67,847 63,654 56,911 54,295 51,475

Occupational Disease 22,374 24,730 25,161 25,835 24,689 26,680 25,954 25,999 28,406 27,869

Fatal Cases 191 203 206 265 159 150 206 162 150 169

Wage-Loss Claims Initiated 21,527 20,735 21,402 21,755 20,392 19,181 19,315 19,759 21,899 23,386

HEARINGS AND REVIEW 1

Total Requests for Hearing 5,851 6,673 6,607 7,357 7,951 7,642 7,496 7,164 6,992 6,875

Total Hearing Dispositions 4,967 5,431 6,571 7,019 7,101 7,525 8,087 7,926 7,418 6,599

Pre-Hearing Remands 827 823 847 742 970 1,036 1,056 723 678 704

Dismissals 734 863 1,216 1,184 1,375 1,227 1,191 992 944 1,003

Affirmations 1,771 1,879 2,399 2,686 2,474 2,604 2,965 3,178 2,945 2,266

Post-Hearing Remands 692 696 807 906 876 958 910 958 1,068 944

Reviews of the Written Record 479 544 583 806 806 1,022 1,179 1,253 1,167 1,118

Withdrawals/No-Shows 464 626 719 695 600 678 786 822 616 564

 1/ As a result of an internal audit conducted by DFEC, various hearings and review data were revised for the years 1992 - 1996. Management reports were compared with automated system data that began in

 1992, and corrections were made to reconcile differences between the two sources
 Table A-3

 Federal Employees' Compensation Program Obligations, FY 1992 - FY 2001

 ($ thousands)

 Fiscal Year

 Type of Obligation 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Obligations $1,809,395 $1,884,094 $1,922,707 $1,953,952 ######### $1,968,256 $2,024,494 $2,076,475 $2,170,247 $2,308,595

 Total Benefits 1/ 1,751,396 1,822,338 1,859,349 1,886,038 1,997,180 2/ 1,900,953 1,955,287 2,008,908 2,099,613 2,229,624

 Compensation Benefits 1,197,417 1,236,927 1,284,380 1,309,562 1,375,808 1,314,603 1,343,879 1,370,206 1,403,154 1,453,740

 Medical Benefits 444,301 472,257 459,312 453,208 481,833 450,206 476,167 492,835 548,596 617,414

 Survivor Benefits 109,678 113,154 115,657 117,984 126,568 122,554 124,213 126,009 126,965 128,122

 Fair Share Capital Investmen 0 0 0 5,284 12,971 13,590 11,028 19,858 20,898 30,348

 Administrative Costs 3/ 57,999 61,756 63,358 67,914 65,145 67,303 69,207 67,567 70,634 78,971

1/ Total benefits and its components for FY 1992 - FY 1996 include "other" categories of benefits shown separately in the past. The actual amount of "fair share" capital inv

 is the only previous "other" obligation that is shown separately.

2/ Presentation of accrued liabilities was initiated in the FECA Special Benefits Fund in FY 1996. Implementation of this accounting adjustment requires an overstatement o

 benefit obligations compared with FY 1995 and prior years. The amount of the one-time (upward) adjustment is $85,498,000.

3/ Direct administrative costs for FEC program salaries and expenses.
 Table A-4

 Federal Employees' Compensation Program Chargeback Costs, by Major Federal Agency

 CBY 1992 - CBY 2001

 ($ thousands)

 Chargeback Year 1/

 Federal Agency 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Costs $1,666,431 $1,756,837 $1,813,931 $1,835,129 $1,840,811 $1,833,926 $1,887,980 $1,908,256 $2,024,634 $2,129,097

 U.S. Postal Service 474,891 508,881 521,456 536,643 547,141 551,142 577,159 594,503 666,310 720,518

 Department of the Navy 241,804 250,522 262,274 256,816 256,210 247,488 243,938 240,492 241,585 246,881

 Department of the Army 161,632 164,179 168,350 165,461 163,986 159,781 162,152 163,127 166,989 169,219

 Department of Veterans Affairs 133,381 142,486 145,471 143,047 140,729 136,607 140,118 137,865 143,221 145,909

 Department of the Air Force 114,417 114,196 115,993 119,184 116,141 117,242 124,302 123,349 128,134 134,106

 Department of Transportation 87,419 87,722 90,171 89,308 89,407 89,369 95,823 97,155 96,936 99,556

 Department of Justice 43,107 47,332 51,605 55,757 58,136 63,878 67,875 76,319 83,873 91,197

 Department of the Treasury 56,314 64,072 69,620 72,835 72,269 72,547 73,953 75,125 78,921 83,367

 Department of Agriculture 55,095 59,220 60,085 59,332 58,926 59,230 60,348 59,851 64,882 66,750

 Department of Defense 41,970 52,644 59,113 62,096 61,069 61,360 62,729 63,563 64,797 64,761

 All Other Agencies 256,401 265,583 269,793 274,650 276,797 275,282 279,583 276,908 288,987 306,834

1/ A year for chargeback purposes is from July 1 through June 30.
Table B-1

Part C Black Lung Claims Adjudication at the Initial Level, FY 2001

 First Initial Approval Approval All Initial Approval

Type of Claim Findings Rate Reconsiderations Rate Decisions Rate

TRUST FUND 626 211 837 Approved 61 9.74% 19 9.00% 80 9.56% Denied 565 192 757RESPONSIBLE OPERATOR 2,653 899 3,552

 Approved 223 8.41% 60 6.67% 283 7.97% Denied 2,430 839 3,269TOTAL FINDINGS 3,279 1,110 4,389 Total Approved 284 8.66% 79 7.12% 363 8.27% Total Denied 2,995 1,031 4,026

Note: Due to changes in DCMWC's automated support system, the format and data of Table B-1 has been revised for FY 2001.
Table B-2

Distribution of Part C Black Lung Claims and Disbursements, by State, FY 2001

 Total Claims MBO Total Benefits

State Received 1/ Claims 2/ In Payment 3/ ($ 000) 4/

Alabama 31,887 213 1,469 $10,612

Alaska 149 0 13 94

Arizona 1,974 52 216 1,560

Arkansas 3,779 18 300 2,167

California 6,403 43 455 3,287

Colorado 6,888 58 661 4,775

Connecticut 988 7 120 867

Delaware 760 2 103 744

District of Columbia 286 10 25 179

Florida 11,555 200 1,232 8,900

Georgia 1,539 26 197 1,423

Hawaii 16 0 1 7

Idaho 235 2 20 144

Illinois 30,201 185 2,018 14,578

Indiana 17,349 110 1,142 8,250

Iowa 5,085 31 386 2,789

Kansas 2,160 5 123 889

Kentucky 83,054 1,785 6,052 43,722

Louisiana 336 3 29 209

Maine 43 0 7 50

Maryland 6,531 60 549 3,966

Massachusetts 227 3 30 217

Michigan 10,373 52 695 5,021

Minnesota 140 0 16 116

Mississippi 341 6 36 260

Missouri 4,576 8 340 2,456

Montana 845 6 63 455

Nebraska 119 0 10 72

Nevada 403 3 55 397

New Hampshire 24 0 4 29

New Jersey 4,242 31 458 3,309

New Mexico 2,295 13 178 1,286

New York 3,957 27 346 2,500

North Carolina 3,168 56 409 2,955

North Dakota 157 0 10 72

Ohio 52,278 369 4,290 30,992

Oklahoma 3,737 41 264 1,909

Oregon 618 5 60 433

Pennsylvania 133,602 2,139 15,551 112,343

Rhode Island 41 0 4 29

South Carolina 823 18 139 1,004

South Dakota 47 0 5 36

Tennessee 19,841 340 1,429 10,323

Texas 1,650 13 185 1,336

Utah 3,902 44 351 2,536

Vermont 44 0 6 43

Virginia 40,029 1,000 4,325 31,245

Washington 1,577 8 124 896

West Virginia 104,858 2,197 10,123 73,132

Wisconsin 432 3 43 311

Wyoming 2,491 7 243 1,757

All Other 444 2 34 246

TOTAL 608,499 9,201 54,944 $396,928

1/ All filings since July 1, 1973, including terminated and nonapproved claim

2/ Active MBO claims as of 9/30/01

3/ Active claims currently in payment status, excluding MBO claims, as of 9/30/01

4/ Disbursements of income and medical benefits for all claims, including claims paid by the Trust Fund and claims interim pay status.
Table B-3

Black Lung Claims, by Class of Beneficiary, FY 1992 - FY 2001 1/

 Number of Beneficiaries 2/

 Class of Beneficiary 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Primary Beneficiaries: Miners 43,723 40,866 37,970 35,220 32,452 29,839 27,340 24,838 22,568 18,248

 Widows 43,967 44,103 44,073 43,688 43,155 42,468 41,585 40,517 39,053 35,660

 Others 1,225 1,280 1,332 1,362 1,393 1,444 1,476 1,508 1,497 1,467

 TOTAL PRIMARY BENEFICIARIES 88,915 86,249 83,375 80,270 77,000 73,751 70,401 66,863 63,118 55,375

Dependents of Primary Beneficiaries:

 Dependents of Miners 37,592 34,758 32,013 29,377 26,845 24,599 22,158 19,953 17,978 13,924

 Dependents of Widows 1,751 1,710 1,668 1,614 1,558 1,491 1,417 1,384 1,306 1,123

 Dependents of Others 503 496 513 508 520 511 512 516 508 108

 TOTAL DEPENDENTS 39,846 36,964 34,194 31,499 28,923 26,601 24,087 21,853 19,792 15,155

TOTAL, ALL BENEFICIARIES 128,761 123,213 117,569 111,769 105,923 100,352 94,488 88,716 82,910 70,530

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.
 Table B-4

 Department of Labor Black Lung Benefits Program Obligations, FY 1992 - FY 2001

 ($ thousands)

 Fiscal Year

 Type of Obligation 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Obligations $973,636 $984,666 $994,655 $995,722 $992,128 $1,004,672 $999,822 $1,005,246 $1,013,593 $1,016,994

 Total Benefits 1/ 574,850 562,035 554,349 525,563 499,622 487,910 459,061 439,442 422,656 396,928

 Income Benefits 2/ 452,581 448,395 444,276 423,736 404,623 392,546 376,985 363,871 350,266 336,813

 Medical Benefits 3/ 122,269 113,640 110,073 101,827 95,000 95,363 82,076 75,571 72,390 60,116

 Administrative Costs 4/ 56,314 56,016 52,550 51,502 47,314 46,128 46,035 50,788 49,820 52,252

 Interest Charges 5/ 342,472 366,616 387,756 418,656 445,192 470,635 494,726 515,016 541,117 567,814

Repayable Advances 6/ 340,329 343,000 413,925 375,100 373,500 375,000 370,000 402,000 490,000 505,000

Cumulative Debt 7/ $3,606,032 $3,949,032 $4,362,957 $4,738,057 $5,111,557 $5,486,557 $5,856,557 $6,258,557 $6,748,557 $7,253,557

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 Health Care Financing Administration 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.
Table B-5

Monthly Part C Black Lung Benefit Rates, 1973 - 2001

 Benefit Rates by Type of Beneficiary 

Claimant and Claimant and Claimant and 3 or

 Period Claimant 1 Dependent 2 Dependents More Dependents

7/1/73-9/30/73 $169.80 $254.70 $297.10 $339.50

10/1/73-9/30/74 177.60 266.40 310.80 355.20

10/1/74-9/30/75 187.40 281.10 328.00 374.80

10/1/75-9/30/76 196.80 295.20 344.40 393.50

10/1/76-9/30/77 205.40 308.10 359.50 410.80

10/1/77-9/30/78 219.90 329.80 384.80 439.70

10/1/78-9/30/79 232.00 348.00 405.90 463.90

10/1/79-9/30/80 254.00 381.00 444.50 508.00

10/1/80-9/30/81 279.80 419.60 489.60 559.50

10/1/81-9/30/82 293.20 439.80 513.10 586.40

10/1/82-12/31/83 304.90 457.30 533.60 609.80

1/1/84-12/31/84 1/ 317.10 475.60 554.90 634.20

1/1/85-12/31/86 328.20 492.30 574.30 656.40

1/1/87-12/31/87 338.00 507.00 591.50 676.00

1/1/88-12/31/88 344.80 517.20 603.40 689.60

1/1/89-12/31/89 358.90 538.30 628.10 717.80

1/1/90-12/31/90 371.80 557.70 650.60 743.60

1/1/91-12/31/91 387.10 580.60 677.40 774.10

1/1/92-12/31/92 403.30 605.00 705.80 806.60

1/1/93-12/31/93 418.20 627.30 731.90 836.40

1/1/94-12/31/94 427.40 641.10 748.00 854.80

1/1/95-12/31/95 427.40 641.10 748.00 854.80

1/1/96-12/31/96 435.10 652.70 761.50 870.20

1/1/97-12/31/97 445.10 667.70 779.00 890.20

1/1/98-12/31/98 455.40 683.10 796.90 910.70

1/1/99-12/31/99 469.50 704.30 821.60 939.00

1/1/00-12/31/00 487.40 731.00 852.80 974.70

1/1/01-12/31/01 500.50 750.80 875.90 1,001.00

1/ These 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 (1/1/84 through 6/30/84) were: $315.60 for a claimant only; $473.30 for a claimant and 1 dependent; $552.20 for a cla

 and 2 dependents; and, $631.10 for a claimant and 3 or more dependents.
 Table B-6

 Funding and Disbursements of the Black Lung Disability Trust Fund, FY 2001

 ($ thousands)

 Funding Disbursements

Coal Excise Treasury Income Medical Benefits Total Admin. Interest on

 Month Tax Revenue Advances Reimburse. 1/ Total Benefits 2/ Diagnostic Treatment 3/ Benefits Costs Advances Total

October 2000 $36,713 $0 $390 $37,103 $28,491 $225 $4,569 $33,284 $1,522 $0 $34,806

November 2000 49,037 0 441 49,478 28,413 312 5,196 33,922 2,935 0 36,857

December 2000 28,493 0 899 29,392 28,106 194 5,126 33,426 695 0 34,121

January 2001 49,206 0 466 49,672 27,849 285 5,632 33,766 5,461 0 39,227

February 2001 34,949 0 559 35,508 28,407 120 5,783 34,311 5,218 0 39,529

March 2001 35,405 0 383 35,788 28,150 229 5,092 33,471 5,216 0 38,687

April 2001 22,399 0 335 22,734 27,859 0 1,036 28,895 5,223 0 34,118

May 2001 48,987 0 672 49,659 27,949 349 6,541 34,839 5,216 0 40,055

June 2001 40,866 0 248 41,114 28,040 374 5,164 33,578 5,216 0 38,794

July 2001 38,285 0 356 38,641 27,736 386 3,760 31,883 5,215 0 37,098

August 2001 67,121 0 352 67,473 28,081 656 4,874 33,611 5,217 0 38,828

September 2001 70,736 505,000 356 576,092 27,732 452 3,761 31,944 5,118 567,814 604,876

TOTALS $522,197 $505,000 $5,457 $1,032,654 $336,813 $3,583 $56,533 $396,928 $52,252 $567,814 $1,016,994

1/ Reimbursements include collections from RMOs, fines, penalties, interest, and a refund of $304,000 for departmental management salaries and other administrative expenses.

2/ Includes monthly and retroactive benefit payments.

3/ Treatment expenditures include reimbursements to the United Mine Workers' Health and Retirement Funds.
 Table B-7

 Comparison of Benefit Payments Under the Black Lung

 Benefits Act (BLBA) Versus Payments for Permanent

 Total Disability Under Selected State Workers'

 Compensation Laws

 (As of September 30, 2001)

Maximum Monthly Maximum Monthly Minimum Monthly

Benefit Benefit Benefit

 Benefit Under: (Miners Only) (Incl. Dependents) (Miners Only)

BLBA $ 500.50 $1,001.00 $ 500.50

Alabama 2,377.17 2,377.17 653.83 1/

Alaska 3,325.44 3,325.44 476.30 2/

Arizona 1,702.56 1,702.56 N/A

Arkansas 1,775.30 1,775.30 86.60

Colorado 2,796.79 2,796.79 N/A

Illinois 4,209.28 4,209.28 1,578.50

Indiana 2,199.64 2,199.64 216.50 1/

Iowa 4,628.77 4,628.77 809.71 1/

Kansas 1,805.61 1,805.61 108.25

Kentucky 2,295.20 2,295.20 459.02

Maryland 2,892.44 2,892.44 216.50 1/

Missouri 2,723.14 2,723.14 173.20

Montana 1,965.82 1,965.82 N/A

New Mexico 2,134.60 2,134.60 155.88 1/

North Dakota 2,234.28 2,234.28 3/ 1,221.06 1/

Ohio 2,675.94 2,675.94 1,337.97 1/

Oklahoma 2,048.09 2,048.09 129.90 1/

Pennsylvania 2,788.52 2,788.52 1,549.19 1/

Tennessee 2,515.73 2,515.73 377.36

Texas 2,320.88 2,320.88 346.40

Utah 2,039.43 2,039.43 3/ 194.85

Virginia 2,792.85 2,792.85 698.21 1/

Washington 3,688.90 3,688.90 228.10 4/

West Virginia 2,193.10 2,193.10 731.03

Wyoming 1,620.63 1,620.63 N/A

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.

4/ Minimum compensation benefit ranges from $228.10 to $399.22, according to marital status and number of dependents.

N/A = Not Applicable
 Table C-1

 Total Industry Compensation and Benefit Payments Under LHWCA 1/

 CY 1991 - CY 2000 2/

($ thousands)

 Calendar Year

 Payments By: 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

 Self-Insured

 Employers $256,003 $267,078 $265,700 $273,667 $257,895 $272,688 $263,255 $261,559 $283,991 $278,952

 Insurance Carriers 243,120 235,251 240,449 247,157 238,474 226,592 219,352 238,464 232,778 249,671

Total Payments $499,123 $502,329 $506,149 $520,824 $496,369 $499,280 $482,607 $500,023 $516,769 $528,623

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.
 Table C-2

 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

Maximum Minimum Annual Adjustmen

Period NAWW Payable Payable (% Increase in NAWW)

11/26/72-9/30/73 $131.80 $167.00 $65.90 --

10/01/73-9/30/74 140.26 210.54 70.18 6.49

10/01/74-9/30/75 149.10 261.00 74.57 6.26

10/01/75-9/30/76 159.20 318.38 79.60 6.74

10/01/76-9/30/77 171.28 342.54 85.64 7.59

10/01/77-9/30/78 183.61 367.22 91.81 7.21

10/01/78-9/30/79 198.39 396.78 99.20 8.05

10/01/79-9/30/80 213.13 426.26 106.57 7.43

10/01/80-9/30/81 228.12 456.24 114.06 7.03

10/01/81-9/30/82 248.35 496.70 124.18 8.87

10/01/82-9/30/83 262.35 524.70 131.18 5.64

10/01/83-9/30/84 274.17 548.34 1/ 137.09 4.51

10/01/84-9/30/85 289.83 579.66 144.92 5.71 2/

10/01/85-9/30/86 297.62 595.24 148.81 2.69

10/01/86-9/30/87 302.66 605.32 151.33 1.69

10/01/87-9/30/88 308.48 616.96 154.24 1.92

10/01/88-9/30/89 318.12 636.24 159.06 3.13

10/01/89-9/30/90 330.31 660.62 165.16 3.83

10/01/90-9/30/91 341.07 682.14 170.54 3.26

10/01/91-9/30/92 349.98 699.96 174.99 2.61

10/01/92-9/30/93 360.57 721.14 180.29 3.03

10/01/93-9/30/94 369.15 738.30 184.58 2.38

10/01/94-9/30/95 380.46 760.92 190.23 3.06

10/01/95-9/30/96 391.22 782.44 195.61 2.83

10/01/96-9/30/97 400.53 801.06 200.27 2.38

10/01/97-9/30/98 417.87 835.74 208.94 4.33

10/01/98-9/30/99 435.88 871.76 217.94 4.31

10/01/99-9/30/00 450.64 901.28 225.32 3.39

10/01/00-9/30/01 466.91 933.82 233.46 3.61

1/ Maximum became applicable in death cases (for any death after September 28, 1984) pursuant to LHWCA Amendments of 1984. S

 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 be

 which the deceased would have been eligible to receive under section 6(b)(1). Maximum in death cases not applicable to DCCA cas

 (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 n

 applicable to DCCA cases (see note 1/, above)
 Table C-3

 LHWCA and DCCA Special Funds' Expenditures 1/

FY 1992 - FY 2001

 ($ thousands)

 LHWCA DCCA

 Expenditures ($) Number Expenditures ($) Number of of

Second Pre Second Second Pre Second

Injury Amend. Injury Injury Amend. Injury

FY Total Cases 2/ Cases 3/ Rehab. 4/ Other 5/ Cases Total Cases 2/ Cases 3/ Rehab. 4/ Other 5/ Cases

1992 $97,331 $86,312 $2,937 $4,392 $3,690 4,515 $11,683 $10,161 $922 $6 $594 700

1993 103,321 90,860 2,887 4,804 4,770 4,652 11,330 9,984 903 6 437 698

1994 107,611 95,856 2,829 4,228 4,699 4,842 11,382 10,318 872 0 193 683

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

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

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

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

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

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

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 disability and death cases, when the injury or death is caused by an employment event which 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 FY 1995 - FY 2001. 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

 year-end 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.
 Table C-4

 LHWCA and DCCA Special Funds' Assessments 1/

 CY 1992 - CY 2001

 ($ thousands)

 LHWCA DCCA

Total Industry Preceding Year Total Assessment Total Industry Preceding Year Total Assessment

CY Assessments 2/ Industry Payments 3/ 4/ Base Yr. Assessments 2/ Industry Payments Base Yr.

1992 $ 97,300 $340,141 CY 1991 $10,800 $ 9,097 CY 1991

1993 102,500 336,379 CY 1992 11,500 7,665 CY 1992

1994 116,000 346,490 CY 1993 11,500 9,970 CY 1993

1995 118,000 360,566 CY 1994 12,000 6,787 CY 1994

1996 113,000 344,103 CY 1995 11,300 6,754 CY 1995

1997 110,000 350,711 CY 1996 11,300 6,361 CY 1996

1998 111,000 334,339 CY 1997 11,000 5,911 CY 1997

1999 130,000 343,146 CY 1998 11,300 6,232 CY 1998

2000 133,000 353,462 CY 1999 12,700 5,179 CY 1999

2001 133,000 361,549 CY 2000 12,000 5,103 CY 2000

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, pay

 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 mo

 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

 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 which are receivable from employers and insur

 carriers based on the Special Fund assessment formula as prescribed under section 44(c) of the A

3/ Assessments prior 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 prece

 calendar year. Beginning with CY 1985, the assessment base also includes a factor for section 8(f) payments attributable to each employer/carrier, as required by the 1984 amendm

4/ Starting with CY 1986, industry assessments are based on disability compensation payments only, i.e., medical benefits are no longer included in the payment base used in determ

 annual assessments
 Table C-5

Summary of Case Processing Activities Under LHWCA 1/

 FY 1992 - FY 2001

 Adjudication Level Fiscal Year

 and Case Status 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

District Offices

Pending Inventory of Cases 6,957 5,309 5,720 5,401 6,207 7,759 6,974 9,006 8,675 6,489

OALJ

 Carryover from Previous FY 3,571 4,040 7,197 3,957 4,141 7/ 4,909 3,849 12/ 3,862 3,668 3,562

 New Cases 4,149 6,911 2/ 3,878 3,324 4,107 3,520 10/ 3,579 3,462 3,566 3,500

Total Docket 7,720 10,951 11,075 7,281 8,248 8,429 7,428 7,324 7,234 7,062

 (Dispositions) 3,680 3,754 7,118 3,527 3,339 3,557 3,566 3,656 3,672 3,674

Pending Inventory 4,040 7,197 3,957 3,754 4,909 4,872 3,862 13/ 3,668 3,562 3,388

BRB

 Carryover from Previous FY 1,667 1,786 3/ 1,781 3,745 1,661 8/ 399 348 318 326 295

 New Cases 835 782 2,772 4/ 885 481 457 419 421 423 317

Total Docket 2,502 2,568 4,553 4,630 2,142 856 767 739 749 612

 (Dispositions) 742 683 800 1,397 1,721 8/ 539 464 438 467 384

Pending Inventory 1,760 1,781 3,745 5/ 3,250 6/ 399 9/ 348 11/ 318 14/ 326 15/ 295 15/ 248 15/

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 

 Case processing and adjudication activities at the OALJ and BRB levels continue to include both LHWCA and DCCA cases.

2/ Includes 3,093 cases received on the basis of the Supreme Court's decision in Estate of Cowart v. Nicklos Drilling Co., 112 S.Ct. 2589 (1992)

3/ The differences between the carryover in FY 1993 and pending inventory at the end of FY 1992 and between the sum of activity in FY 1993 and that year's pending inventory at year-end are due t

 data adjustments made by the BRB.

4/ Includes 2,066 appeals filed in the so-called Ingalls Shipbuilding, Inc. cases, and involve various issues arising under section 33 of LHWCA

5/ This figure, as adjusted by BRB, excludes eight cases previously classified as new appeals

6/ 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.

7/ The difference between the carryover in FY 1996 and pending inventory at the end of FY 1995 is due to data adjustments made by the OALJ.

8/ 3,250 total appeals were carried over, but figures were adjusted by BRB to take into account 1,636 separate appeals which were consolidated and disposed of by 5 decisions.

9/ Number adjusted by BRB to account for misfiled, duplicate, or reinstated appeals.

10/ Excludes 116 new "33(g)" cases and 1,496 "33(g)" cases remanded from BRB being held in abeyance.

11/ Number adjusted by BRB to account for misfiled, duplicate, or reinstated appeals.

12/ 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.

13/ 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.

14/ 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.

15/ Data adjusted by BRB to account for misfiled, duplicate, or reinstated appeals.
 Table D-1

 Status of EEOICPA Cases for FY 2001 -- Claims Activity by District Office

District Office Case Status/Claims Activity Jacksonville Cleveland Seattle Denver TOTAL

Total Claims Received 3,107 2,013 1,560 3,443 10,123

Claims Received Weekly 225 90 110 149 574

Claims Pending Creation 0 10 0 6 16

Recommended Decisions-Approved 21 3 0 433 457

Recommended Decisions-Denied 00000

Number of Lump-Sum Payments Issued 1/ 35

Number of Medical Claims Approved 113

Medical Bills Paid 2/ 3

Final Decisions-Approved 180

Final Decisons-Denied 0

Final Decisions-Remanded 18

Total Final (FAB) Decisions 180

1/ A total of $3.5 million in lump-sum payments were authorized during FY 2001.

2/ Medical payments totaled $2,718 for FY 2001.
 Table D-2

 Types of EEOICPA Cases for FY 2001 -- Claims Submitted by District Office 1/

 District Office Type of Case Jacksonville Cleveland Seattle Denver Total

Radiation Exposure Comp. Act 137 176 34 1,505 1,852

Chronic Beryllium Disease 54 216 33 113 416

Beryllium Sensitivity 56 88 50 136 330

Total Cancers 2,308 1,284 1,125 1,486 6,203

 Special Exposure Cohort Cancer 1,022 342 24 2 1,390

 Non-Spec. Exp. Cohort Cancer 1,286 942 1,101 1,484 4,813

Renal Disease 34 72 45 62 213

Silicosis 9 40 45 188 282

Other 417 372 293 668 1,750

1/ "Claims" in this context refers to "claimed medical condition." Since claimants may allege multiple claimed medical conditions, the total for claims shown in this table exceeds the "Tota

 Received" from Table D-1.
Table D-3

Energy Employees Occupational Illness Compensation

Program Jurisdictions, by District Office

o

Marshall Islands

Cleveland Seattle "Denver

Virgin Islands

EEOICPA Table D3

Rhode

Island

Connecticut

New York

New Jerse

f

y

C

_

-

' -Deleware

Washington, D.C .

Maryland
Table E-1

 OWCP Reemployment and Rehabilitation

FY 1992 - FY 2001

 (cost in $ thousands)

FECA NURSE FECA REHABILITATION LONGSHORE REHABILITATION

 FY Cases 1/ Reemployments Cost Cases 1/ Rehabilitations Cost Cases 1/ Rehabilitations Cost

1992 0 0 $0 10,284 1,469 $15,409 2,067 318 $4,397

1993 9,883 2/ 691 1,541 9,883 2/ 1,000 14,662 2,201 364 4,810

1994 5,530 1,541 5,680 7,778 1,018 13,500 2,028 352 4,228

1995 10,574 3,275 10,136 6,465 893 13,163 1,815 408 4,328

1996 14,235 4,623 13,041 6,049 842 12,672 1,535 357 4,110

1997 15,515 5,735 14,484 5,628 888 11,827 1,606 309 4,171

1998 15,261 5,884 14,575 5,812 819 11,399 1,444 298 3,722

1999 16,304 6,449 14,783 5,441 907 11,814 1,464 273 4,895

2000 18,293 6,885 18,085 3/ 4,835 747 10,119 1,469 245 4,595

2001 18,825 7,439 20,413 4,633 736 9,568 1,446 265 5,121

1/ Number of Federal and longshore cases that received counseling, placement assistance, and training services during the Fiscal Year.

2/ Total FECA cases for FY 1993; a breakdown by nurse and rehabilitation specialist, other than reemployments and rehabilitations that return to work, is not available.

3/ FY 2000 revised to include continuation-of-pay, costs of which are also included in all later years.
57

U.S. Department of Labor

Office of Workers' 

Compensation Programs 

200 Constitution Avenue, NW. 

Washington, DC 20210 

202-693-0031

www.dol.gov/dol/esa/public/owcp_org.htm

Director, Office of Workers’ 

Compensation Programs 

Shelby Hallmark 

Deputy Director, Office of Workers’ 

Compensation Programs

Diane Svenonius 

Director, Division of Planning, 

Policy and Standards 

Cecily Rayburn 

Director for Federal Employees’ 

Compensation

Deborah Sanford 

Deputy Director, Federal Employees’ 

Compensation

Edward Duncan 

Director for Coal Mine 

Workers' Compensation

James L. DeMarce 

Deputy Director, Coal Mine 

Workers' Compensation

John DiSciullo 

Director for Longshore and Harbor 

Workers' Compensation

Michael Niss 

Director for Energy Employees Occupational 

Illness Compensation

Peter M. Turcic 

Deputy Director, Energy Employees 

Occupational Illness Compensation 

Roberta Mosier 

Region I/II -- Northeast

(Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, 

New York, Puerto Rico, Rhode Island, Vermont, Virgin Islands) 

Regional Office (New York)

Kenneth D. Hamlett, Regional Director 

U.S. Department of Labor, ESA/OWCP 

201 Varick Street, Room 750 

New York, NY 10014 

646-264-3000

New York FECA District Office

Jonathan G. Lawrence, District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

201 Varick Street, Room 750 

New York, NY 10014-0566 

646-264-3046

New York Longshore District Office

Richard V. Robilotti, District Director 

U.S. Department of Labor 

ESA/OWCP/DLHWC 

201 Varick Street, Room 750 

Post Office Box 249 

New York, NY 10014-0249 

646-264-3010

Sub-Regional Office (Boston)

Dorothy Reed, Deputy Regional Director 

U.S. Department of Labor, ESA/OWCP 

JFK Federal Building, Room E-260 

Boston, MA 02203 

617-624-6671

Boston FECA District Office

Michael Harvill, District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

JFK Federal Building, Room E-260 

Boston, MA 02203 

617-624-6677

Boston Longshore District Office

Marcia Finn, District Director 

U.S. Department of Labor 

ESA/OWCP/DLHWC 

JFK Federal Building, Room E-260 

Boston, MA 02203 

617-624-6767

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 

215-861-5401
58

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 

215-861-5408

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) 

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

Robert Hardesty, District Director 

U.S. Department of Labor 

ESA/OWCP/DCMWC 

Charleston Federal Center, Suite 110 

500 Quarries 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. 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 Road 

Morgantown, WV 26505 

304-291-4277

Region IV -- Jacksonville

(Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, 

South Carolina, Tennessee) 

Regional Office

Nancy L. Ricker, Regional Director 

U.S. Department of Labor, ESA/OWCP 

214 North Hogan Street, Room 1026 

Jacksonville, FL 32202 

904-357-4725
59

Jacksonville FECA District Office

Richard A Brettell, District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

214 North Hogan Street, Suite 1006 

Jacksonville, FL 32202 

904-357-4725

Jacksonville Longshore District Office

Charles Lee, District Director 

U.S. Department of Labor 

ESA/OWCP/DLHWC 

Edward Ball Bldg., Suite 1040, 10th Floor 

214 North Hogan Street 

Jacksonville, FL 32202 

904-357-4757

Jacksonville Energy District Office

William C. Franson, District Director 

U.S. Department of Labor 

ESA/OWCP/DEEOIC 

214 North Hogan Street, Suite 910 

Jacksonville, FL 32202 

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

EEOICPA Resource Center 

(Paducah Site) 

Stewart Tolar, Office Manager 

Barkely Center, Unit 125 

125 Memorial Drive 

Paducah, KY 42001 

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

Paducah.center@eh.doe.gov

EEOICPA Resource Center 

(Augusta Site) 

James Kirr, Office Manager 

1780 Bunting Drive 

North Augusta, SC 29841 

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

srs.center@eh.doe.gov

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@eh.doe.gov

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) 

Region V/VII -- Midwest

(Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, 

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, Acting District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

230 South Dearborn Street, Room 800 

Chicago, IL 60604 

312-596-7134

Chicago Longshore District Office

Thomas Hunter, District Director 

U.S. Department of Labor 

ESA/OWCP/DLHWC 

230 South Dearborn Street, Room 872 

Chicago, IL 60604 

312-596-7153

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 

216-357-5390

Cleveland Energy District Office

Robert M. Sullivan, Acting 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) 

Dan Charles, Office Manager 

4320 Old Scioto Trail 

Portsmouth, OH 45662 

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

Portsmouth.center@eh.doe.gov

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 
60

U.S. Department of Labor 

ESA/OWCP/DFEC 

City Center Square 

1100 Main Street, Suite 750 

Kansas City, MO 64105 

816-502-0344

Region VI/VIII -- Southwest

(Arkansas, Colorado, Louisiana, Montana, New Mexico, North Dakota, 

Oklahoma, South Dakota, Texas, Utah, Wyoming) 

Regional Office (Dallas)

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 

972-850-2330

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

Michael Brewer, District Director 

U.S. Department of Labor 

ESA/OWCP/DLHWC 

701 Loyola Avenue, Room 13032 

New Orleans, LA 70113 

504-589-2671

Sub-Regional Office (Denver)

Robert Mansanares, Deputy Regional Director 

U.S. Department of Labor, ESA/OWCP 

1999 Broadway, Suite 600 

P.O. Box 46550 

Denver, CO 80201-6550 

720-264-3160

Denver FECA District Office

Shirley Bridge, District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

1999 Broadway, Suite 600 

Denver, CO 80202-6550 

720-264-3007

Denver Black Lung District Office

Anne Brown, 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

Robert Mansanares, 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) 

Ray Malito, Office Manager 

8758 Wolff Court 

Suite 201 

Westminster, CO 80030 

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

denver.center@eh.doe.gov

EEOICPA Resource Center 

(Espanola Site) 

Floyd Archuleta, Office Manager 

412 Paseo De Onate, Suite D 

Espanola, NM 87532 

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

Espanola.center@eh.doe.gov

Region IX/X -- Pacific

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

Nevada, Oregon, Washington) 

Regional Office (San Francisco)

Edward Bounds, 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

Sharon Tyler, 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

Phil Williams, 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 
61

401 East Ocean Blvd., Suite 720 

Long Beach, CA 90802 

562-980-3577

Honolulu Longshore Sub-District Office

Phil Williams, 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

Sub-Regional Office (Seattle)

Edward Bounds, Deputy Regional Director 

U.S. Department of Labor, ESA/OWCP 

1111 Third Avenue, Suite 650 

Seattle, WA 98101-3212 

206-398-8201

Seattle FECA District Office

Doris Carender, District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

1111 Third Avenue, Suite 615 

Seattle, WA 98101-3212 

206-398-8220

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

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 

(Alaska Site) 

Colleen Ouzts, Office Manager 

2501 Commercial Drive 

Anchorage, AK 99501 

907-258-4070 (Toll-Free 1-888-908-4070) 

doecomp@acsalaska.net

EEOICPA Resource Center 

(Idaho Falls Site)

Larry 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@eh.doe.gov

EEOICPA Resource Center 

(Las Vegas Site)

Robert Agonia, Office Manager 

Flamingo Executive Park 

Suite W-156 

1050 East Flamingo Road 

Las Vegas, NV 89119 

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

Vegas.center@eh.doe.gov

EEOICPA Resource Center 

(Richland Site) 

Eunice Godfrey, Office Manager 

1029 N. Kellogg Street 

Kennewick, WA 99336 

509-783-1500 (Toll-Free 1-888-654-0014) 

hanford.center@eh.doe.gov

National Operations Office

(District of Columbia, Maryland, Virginia, overseas cases)

Herman Cain, District Director 

U.S. Department of Labor 

ESA/OWCP/DFEC 

National Operations Office 

800 N. Capitol St., NW. 

Room 800 

Washington, DC 20211 

202-513-6816