BENEFITS UNDER THE

DEFENSE BASE ACT

Office of Workers’ Compensation Programs

(OWCP)

Division of Longshore and Harbor

Workers’ Compensation

(DLHWC)
Oct 08 OWCP/DLHWC 

Benefits Under the DBA

• Medical Treatment • Disability Compensation• Death Benefits• Vocational Rehabilitation
Oct 08 OWCP/DLHWC 

Medical Benefits

• Medical Treatment by a physician of 

employee’s choice.

• Medical care must be related to the 

employment injury or illness.

• Medical treatment is payable for 

as long as the injury or illness requir
Oct 08 OWCP/DLHWC 

Disability Benefits

• Temporary Total• Temporary Partial• Permanent Total with annual incre• Permanent Partial 

– Based upon wage loss (unscheduled)– Based upon percent of loss of use of s

body part (scheduled)
Oct 08 OWCP/DLHWC 

Compensation is Determined by Ave

Weekly Wage (AWW)

• Temporary Total (TTD): 2/3 of the AWW• Temporary Partial (TPD): 2/3 of employee’s 

wages

• Permanent Total (PTD): 2/3 of the AWW• Permanent Partial (PPD):

• 2/3 of loss of earning capacity ( 2/3 unscheduled PPD) 

• TTD for a defined number of weeks for a % of perm

impairment of a scheduled body part (scheduled P
Oct 08 OWCP/DLHWC 

Maximum & Minimum

• Compensation is subject to a Maxim

Compensation Rate, which is adjustannually.

• Current Maximum as of 10/01/08 = 

$1,200.62 per week.

• There is no Minimum Compensation 

under the DBA.
Oct 08 OWCP/DLHWC 

Example 1: Truck driver earning $37,700

w/injuries to back and right arm 

• AWW: $37,700 ÷ 52 = $725• TTD: 2/3 x $725 = $483

• PTD: 2/3 x $725 = $483• PPD Unscheduled wage loss:

2/3 x ($725 – 300) = $283

• PPD Scheduled body part:

50% x 312 weeks x $725 = $113,10
Oct 08 OWCP/DLHWC 

Example 2: Same truck driver earnin

$95,000/yr in Iraq

• AWW: $95,000 ÷ 52 = $1,826.92• TTD: 2/3 x $1,826.92 = $1,200.62 (• PTD: 2/3 x $1,826.92 = $1,200.62 (• PPD unscheduled wage loss: 

2/3 x ($1,826.92 – $300) = $1,017.9

• PPD scheduled body part: 

50% x 312 weeks x $1,200.62 = $187,29
Oct 08 OWCP/DLHWC 

CALCULATING AWW

• Section 10 – compensation is based 

AWW and calculated as follows:

• (a) earnings ÷ days worked x 300/26• (b) same as similarly situated emplo• (c) “reasonable” estimate of earning 

capacity at the time of injury
Oct 08 OWCP/DLHWC 

Death Benefits

• Burial Expenses of up to $3,000.• 50% of AWW for the surviving spous

if no spouse, for one surviving child.

• 16

2⁄3 of AWW for one or more surviv

children, shared equally, in addition 50% for spouse and one child.

• Child benefit is paid up to age 18, st

benefit through age 23 if in school futime.
Oct 08 OWCP/DLHWC 

Annual Adjustment

• Permanent total disability and death 

benefits are subject to annual adjust(increase) based on U.S. national avweekly earnings as reported by the Bureau of Labor Statistics.

• Annual adjustments are applied on 

October 1 of each year.
Oct 08 OWCP/DLHWC 

Lifetime Disability Payme

• Permanent disability is payable as lo

disability continues. Spousal death is payable for life, unless remarried.

• A 40 year old earning $1,500/week w

receive permanent total disability beover his 35 year life expectancy: 

@ $1,000 x 52 weeks x 35 years = $1,82

not including cost of living adjustments
Oct 08 OWCP/DLHWC 

Lifetime Death Benefits

• If the same employee had been killed, his 

year old widow and 2 infant children will rover the life of the claim in excess of $2,000,000, not including annual adjustm

• Widow @ $750 x 52 weeks x 45 years 

= $1,755,000

• Children @ $250 x 52 x 21 years

= $273,000
Oct 08 OWCP/DLHWC 

Commutation

• Permanent disability and death bene

payable to aliens and non-US citizenresiding outside the US may be commuted.

• Commuted benefit is equal to one h

the present value of future compenspaid in one lump sum.
Oct 08 OWCP/DLHWC 

Other Benefits

• Vocational Rehabilitation services fo

permanently disabled employees unto return to employment without assistance.

• Currently rehabilitation services are 

available to those permanently disabemployees residing in the United Sta