U.S. Department of Labor

Office of Workers’ Compensation 

Programs

November 2020
2

TABLE OF CONTENTS

TAB 1: AGENCY ORGANIZATIONAL OVERVIEW ........................................................ 1

TAB 2: STATE OF PLAY .................................................................................................... 10

TAB 3: CALENDAR ............................................................................................................ 20

TAB 4: BUDGET.................................................................................................................. 18

TAB 5: AGENCY PERFORMANCE................................................................................... 42
TAB 1: Agency Organizational Overview

1

TAB 1: AGENCY ORGANIZATIONAL OVERVIEW

Mission

Every day, the Department of Labor’s (DOL’s) Office of Workers’ Compensation Programs1

(OWCP) employees touch the lives of thousands of injured or ill workers and their families by 

providing or overseeing the delivery of workers’ compensation benefits. Regardless of which 

particular worker group they serve, OWCP’s four programs have a unifying mission2.

Authorizing Legislation

Federal Employees Program:

• Federal Employees’ Compensation Act3, as amended, 5 United States Code (U.S.C.) §

8101 et seq.

• War Hazards Compensation Act4, as amended, 42 U.S.C. § 1701 et seq.

Longshore Program:

• Longshore and Harbor Workers’ Compensation Act5, as amended, 33 U.S.C. § 901 et 

seq. 

• Defense Base Act6, 42 U.S.C. § 1651 et seq.

• Outer Continental Shelf Lands Act7, 43 U.S.C. § 1333(b).

• Non-Appropriated Fund Instrumentalities Act8, as amended, 5 U.S.C. § 8171 et seq.

Black Lung Program: 

• Black Lung Benefits Act, as amended, 30 U.S.C. § 901 et seq.

• Black Lung Benefits Revenue Act of 1977, as amended, P.L. 97-119.

• Federal Coal Mine Health and Safety Act of 19699, as amended, P.L. 91-173 (now called 

the Federal Mine Safety and Health Act of 197710, P.L. 107-275).

• Black Lung Consolidation of Administrative Responsibility Act11, P.L.107-275.

 1 https://www.dol.gov/owcp/

2 https://www.dol.gov/owcp/owcpmisvisgols.htm

3 https://www.dol.gov/owcp/dfec/regs/statutes/feca.htm

4 https://www.dol.gov/owcp/dlhwc/whca.htm

5 https://www.dol.gov/owcp/dlhwc/lhwca.htm

6 https://www.dol.gov/owcp/dlhwc/dba.htm

7 https://www.dol.gov/owcp/dlhwc/ocsla.htm

8 https://www.dol.gov/owcp/dlhwc/nfia.htm

9 https://arlweb.msha.gov/solicitor/coalact/69act.htm

10 https://arlweb.msha.gov/REGS/ACT/ACTTC.HTM 11 https://www.dol.gov/owcp/dcmwc/pl107-275.pdf
TAB 1: Agency Organizational Overview

2

• Emergency Economic Stabilization Act of 2008, P.L. 110-343.

• Patient Protection and Affordable Care Act of 2010, P.L. 111-148 § 1556, amended the 

Black Lung Benefits Act to reinstate 30 U.S.C. § 921(c)(4) and 30 U.S.C. § 932(l).

Energy Workers Program:

• Energy Employees Occupational Illness Compensation Program Act12, P.L. 113-291.

Advisory Board on Toxic Substances and Worker Health:

• National Defense Authorization Act of 201513, as amended, P.L. 113-291, amended the 

Energy Employees Occupational Illness Compensation Program Act to include Section 3687, 

creating the Advisory Board on Toxic Substances and Worker Health14. The National 

Defense Authorization Act of 202015 recently expanded those duties to include advice on the 

claims adjudication process among other areas. 

The Advisory Board appointed 12 members on July 17, 2020, for a term of two years. The 

Advisory Board held its last meeting in June 2020, and preparations for the next meeting are 

pending. Currently, no actions from the Advisory Board are pending before the Secretary. The 

Board is anticipated to sunset by December 2024, based on statute. 

 12 https://www.dol.gov/owcp/energy/regs/compliance/law/EEOICPAALL.htm 13 https://www.dol.gov/owcp/energy/regs/compliance/NDAASection_3141.pdf 14 https://www.dol.gov/owcp/energy/regs/compliance/AdvisoryBoard.htm 15 https://www.dol.gov/owcp/energy/regs/compliance/NDAA_2020.pdf
TAB 1: Agency Organizational Overview

3

Organizational Structure

OWCP consolidates, in one umbrella organization, the four federal workers’ compensation 

programs described above. Following its 2019 Leadership Reorganization, OWCP’s 

organizational structure is now policy centric, rather than geographic. This structure allows for 

line-of-sight reporting from the Program Directors to field office operations, eliminating the 

disconnect between the policy and goals of each unique program and regional control of program 

resources. The reorganization also facilitates the balancing of program resources and workload 

across geographic lines. 

Organizational Chart

Director

Julia Hearthway 

(Non-Career SES)

Deputy Director

Nancy Griswold

(Career SES)

Division of Financial 

Administration, Acting

Shanti Ananthanayagam 

(GS-15)

Division of Federal Employees’, 

Longshore and Harbor Workers’ 

Compensation

Antonio Rios

(Career SES)

Division of Coal Mine 

Workers’ Compensation 

Michael Chance

(Career SES)

Division of Administrative 

Operations

Vincent Alvarez

(Career SES)

Division of Energy 

Employees Occupational 

Illness Compensation

Rachel Pond

(Career SES)

Senior Policy Advisor

Michael Vovakes

(Non-Career SES)

FECA Claims 

Administration

National Administrator of Field 

Operations, Acting

William Walter

(GS-15)

12 District Offices

LHWCA Claims 

Administration

District Directors

(3 Districts, w/ 9 sub-offices)

Division of Coal Mine 

Workers’ Compensation 

National Administrator of 

Field Operations

Dean Woodward

(Career SES)

8 District Offices

Division of Energy 

Employees 

Occupational Illness 

Compensation

National Administrator of 

Field Operations

Christy Long

(Career SES)

4 District Offices

Office of the Director (Headquarters) 

Office of the Director: The OWCP Director, Deputy Director, and Senior Advisor, in concert 

with the Secretary and the agency’s leadership team, set the agency’s direction and provide 

oversight to ensure that OWCP leverages its collective strengths to solve both internal and 

external challenges. 

Administrative Divisions (Headquarters)

Two administrative divisions support the overall functioning of the agency and oversee the joint 

administrative operations of its four programs.

• Division of Administrative Operations: The Division of Administrative Operations is led 

by the OWCP Administrative Officer (Director) and Deputy Director. The division provides 

administrative support for OWCP, including the development of policies, procedures, and 

standards in the areas of traditional administrative functions (e.g., personnel, procurement, 
TAB 1: Agency Organizational Overview

4

travel, etc.), medical policy, and coordinates the monitoring of information technology 

shared services provided by the Office of the Chief Information Officer. The division also 

supports the Office of the Director on priority initiatives.

• Division of Financial Administration: The Division of Financial Administration is led by 

the OWCP Comptroller (Director) and Deputy Director. It provides support for strategic and 

operational planning functions, performance reporting, budget formulation and execution, 

and serves a coordinating function for financial statements and audit activities. 

Program Divisions (Headquarters and Field Offices)

OWCP has three program divisions responsible for program management including setting 

policy direction, outreach, information technology, and fiscal operations for the four covered 

programs.

• Division of Federal Employees’, Longshore and Harbor Workers’ Compensation16, led 

by a single Director, administers claims covered by the Federal Employees' Compensation 

Act, War Hazards Compensation Act, and the Longshore and Harbor Workers’ 

Compensation Act. 

o The Federal Employees Program17 administers the Federal Employees’ 

Compensation Act, which provides wage-loss compensation, medical benefits, 

survivor benefits in the case of death, return-to-work assistance, and vocational 

rehabilitation to civilian employees of the federal government injured at work and to 

certain other designated groups. The Program also administers the War Hazards 

Compensation Act which provides compensation or reimbursement to Defense Base 

Act insurers and self-insured employers for the injury, disability, or death, of 

employees of contractors with the United States working outside of the United States, 

when the injury is the result of a war risk hazard as well as compensation for these 

same employees who are detained by a hostile force. Two Deputy Directors manage 

six branches including Technical Assistance; Fiscal Operations; Regulations and 

Procedures; Program Integrity, Fraud Prevention, and Prescription Management; 

Information Technology; and Hearings and Review. 

o The Longshore Program18 provides oversight and implements four worker 

protection programs:

 The Longshore and Harbor Workers’ Compensation Act provides for the payment 

of compensation, medical care, and vocational rehabilitation services to 

employees disabled from on the job injuries that occur in various maritime 

industries pursuant to. It also provides survivor benefits to dependents. 

 The Defense Base Act provides workers' compensation protection to civilian 

employees working outside the United States on military bases or under a contract 

with the U. S. Government for public works or for national defense. 

 The Outer Continental Shelf Lands Act, an extension to the Longshore and 

Harbor Workers’ Compensation Act, covers employees working on the Outer 

 16 https://www.dol.gov/owcp/dfec/index_DFELHWC.htm 17 https://www.dol.gov/owcp/dfec/ 18 https://www.dol.gov/owcp/dlhwc/index.htm
TAB 1: Agency Organizational Overview

5

Continental Shelf of the United States in the exploration and development of 

natural resources.

 The Non-Appropriated Fund Instrumentalities Act covers civilian employees of 

non-appropriated fund instrumentalities of the Armed Forces (for example, 

military base exchanges and morale, welfare, and recreational facilities).

The Deputy Director for Longshore Claims oversees the development of all policy and 

operations for the Longshore program, including management of its two branches: 

Branch of Financial Management, Insurance, and Assessment and the Branch of Policy, 

Regulations, and Procedures. 

• Division of Coal Mine Workers' Compensation19 administers claims under the Black Lung 

Benefits Act, which provides or ensures the delivery of monetary and medical benefits to 

totally disabled miners suffering from pneumoconiosis stemming from coal mine 

employment, and monetary benefits to their dependent survivors. Led by the Director and 

Deputy Director, the division has two branches: Policy Analysis & Program Standards, and 

Fiscal Operations & Technical Support.

• Division of Energy Employees Occupational Illness Compensation20 administers claims 

under the Energy Employees Occupational Illness Compensation Program Act. Part B of the 

Act compensates current or former employees (or their survivors) of the Department of 

Energy, its predecessor agencies, and certain vendors, contractors and subcontractors, who 

were diagnosed with a radiogenic cancer, chronic beryllium disease, beryllium sensitivity, or 

chronic silicosis, as a result of exposure to radiation, beryllium, or silica while employed at 

covered facilities. It also covers individuals (or their eligible survivors) awarded benefits 

under Section 5 of the Radiation Exposure Compensation Act for any occupational illnesses 

that are causally linked to toxic exposures in the uranium mining, milling or ore transporter 

work environment. Part E of the Act compensates Department of Energy contractor and 

subcontractor employees, eligible survivors of such employees, and uranium miners, millers, 

and ore transporters as defined by the Radiation Exposure Compensation Act Section 5, for 

any occupational illnesses that are causally linked to toxic exposures in the Department of 

Energy or mining work environment. Led by the Director, and Deputy Director, the division 

contains six branches: Medical Benefits; Automated Data Processing Systems; Outreach and 

Technical Assistance; Policy; Division of Energy Employees Occupational Illness 

Compensation Management Unit; and Final Adjudication. 

 19 https://www.dol.gov/owcp/dcmwc/index.htm 20 https://www.dol.gov/owcp/energy/index.htm
TAB 1: Agency Organizational Overview

6

Workforce At-A-Glance

Organizational Changes during the Past Four Years

OWCP has implemented several significant reorganizations or realignments in order to increase 

the efficiency of its programs, increase program integrity, support modernization of its programs, 

and increase program oversight and accountability. 
TAB 1: Agency Organizational Overview

7

2018 Division of Energy Employees Occupational Illness Compensation Reorganization

In 2018, OWCP reorganized the Division of Energy Employees Occupational Illness 

Compensation to establish the Branch of Medical Benefits Adjudication and Bill Processing and 

to streamline the Branch of Automated Data Processing Systems. The reorganization was 

necessary to improve the management of home health care and other medical billing services, 

enhance the Division of Energy Employees Occupational Illness Compensation’s ability to

identify and reduce fraud, waste, and abuse, and enable a management structure that is consistent 

with the mission and functions the division performs. 

OWCP Leadership Reorganization

In 2019, the leadership structure for OWCP was reorganized to allow line-of-sight reporting of 

field office operations directly to the Program Directors, eliminating the disconnect between the 

policy and goals of each unique program and the regional control of program resources. Prior to 

the reorganization, OWCP had a regional structure in which six regional offices provided 

oversight for the operations of all programs within each of six geographic regions. The 

reorganization eliminated this geographically based leadership structure and established a single 

Field Operations Administrator in each division, providing OWCP with a framework to apply 

best practices consistently across the country. In addition to ensuring policy accountability, the 

reorganization also facilitates the balancing of program resources and workload across

geographic lines. This fundamental reorganization of the national leadership structure made 

subsequent reorganization and restructuring of the divisions possible. 

Division of Federal Employees’ Compensation Reorganization 

In 2019, OWCP reorganized the Division of Federal Employees’ Compensation to eliminate 

geographic claims distribution, allow for a more equitable workload distribution nationwide, and 

centralize key program functions such as customer service phone lines, disability management 

services, and fiscal operations. This reorganization also established the Branch of Program 

Integrity, Fraud Prevention, and Prescription Management.

2020 Division of Energy Employees Occupational Illness Compensation Reorganization

In fiscal year 2020, the division created the Performance Management Branch to improve 

oversight and management of performance and program improvement activities. The branch 

ensures performance and accountability through monitoring and reporting adjudicatory quality, 

auditing medical bill payment activities of providers, supporting all data and business analytics 

reporting, and providing information technology services.

Division of Coal Mine Workers’ Compensation Reorganization

In 2020, the Division Coal Mine Workers’ Compensation realigned all National Office 

operations into two balanced, complementary organizational units, eliminated an obsolete 

information technology section, centralized all fiscal operations and benefit delivery functions 

into a single work unit, and established a dedicated section to perform critical internal and 

external assessment functions including the evaluation of coal mine operator self-insurance 

applications. 
TAB 1: Agency Organizational Overview

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Division of Longshore and Harbor Workers’ Compensation Reorganization

In April 2020, the Division of Longshore and Harbor Workers’ Compensation redesignated and 

consolidated nine existing Longshore district offices into three compensation districts. This 

organizational structure improved operational efficiency and better positioned the agency to 

perform its mission, facilitate coordination, and implement program decisions and activities 

while enhancing the quality and timeliness of services, and ensuring appropriate management 

and oversight of all program operations.

Consolidation of Division of Federal Employees’ Compensation and Division of Longshore 

and Harbor Workers’ Compensation 

In August 2020, OWCP consolidated the program administration of two of its programs – the 

Division of Longshore and Harbor Workers’ Compensation (which administered the Longshore 

program) with the Division of Federal Employees’ Compensation (which administered the 

Federal Employees program), forming a new Division of Federal Employees’, Longshore and 

Harbor Workers’ Compensation. This reorganization allows the Longshore program to benefit 

from the Federal Employees program’s administrative resources and infrastructure, such as its 

information technology platforms. It also benefits the Federal Employees program, which can 

leverage the Longshore program’s experience with the new OWCP-wide claims management 

system. This reorganization was a natural progression as many staff already share office space, 

the same appropriation account funds the majority of staff in both programs, and the programs 

have statutory interrelationships requiring interaction while administering federal benefits for the 

same injury, which can be optimized under the new structure.

Division of Financial Administration Reorganization

In 2020, OWCP restructured the Division of Financial Administration to appropriately align and 

effectively staff the division to carry out its mission by dividing its flat organizational structure 

into two branches: the Branch of Budget Execution and Formulation, and the Branch of 

Financial Analysis and Performance. The new structure allowed for appropriate management and 

oversight of financial program operations. 

Division of Administrative Operations Reorganization

In 2020, OWCP restructured its Division of Administrative Operations to appropriately align and 

staff the division to support the agency and its programs in effectively carrying out their 

missions. The new Branch of Medical Policy and Operations supports the increased focus on 

pharmaceutical and medical benefit controls by realigning existing staff to the applicable unit 

based on their positions, and updating the Division's mission and functions to align with the 

services supporting pharmaceutical and medical benefits. The division also realigned the Branch 

of Administrative Services to reflect the full range of administrative management functions and 

to improve supervisor to staff ratios. 
TAB 1: Agency Organizational Overview

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Key Leaders 

OWCP’s senior leadership team includes:

Office of the Director

• Julia Hearthway, Director

• Nancy Griswold, Deputy Director

• Michael Vovakes, Senior Policy Advisor

Division of Federal Employees’, Longshore and Harbor Workers’ Compensation

• Antonio Rios, Director

• Jennifer Valdivieso, Deputy Director, Program and System Integrity

• Tirzah Leiman-Carbia, Deputy Director, Operations and Federal Employees’ 

Compensation Act Claims Management

• Kristi Hall, Deputy Director, Longshore Claims (Acting)

• William Walter, National Administrator of Field Operations (Acting)

Division of Coal Mine Workers’ Compensation

• Michael A. Chance, Director

• Ryan Jansen, Deputy Director

• Dean Woodard, National Administrator of Field Operations

Division of Energy Employees Occupational Illness Compensation

• Rachel Pond, Director

• Douglas Pennington, Deputy Director

• Christy Long, National Administrator of Field Operations

Division of Administrative Operations

• Vincent Alvarez, Director/Administrative Officer

• Megan Hylton, Deputy Director/Deputy Administrative Officer

Division of Financial Administration

• Shanti Ananthanayagam, Comptroller/Director (Acting)

• Shanti Ananthanayagam, Deputy Comptroller/Director
TAB 2: State of Play

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TAB 2: STATE OF PLAY 

Key Meetings, Decisions, and Announcements

By end of December 2020 – OWCP plans to publish three rulemakings by the end of calendar 

year 2020: two for the Longshore program and one for the Federal Employees program. The 

Policy and Regulatory Issues section provides the details of rulemaking.

Policy and Regulatory Issues 

National Initiatives

Over the past four years, OWCP has been working to implement policies to help the programs 

better manage medical care and control costs. At the agency level, OWCP is working on 

implementing three strategies that would improve medical care and reduce costs. These 

strategies are described below: 

• Acquire Pharmacy Benefits Management Services: OWCP proposes to acquire Pharmacy 

Benefits Management services. The Pharmacy Benefits Management contractor will develop 

appropriate formularies, contract with pharmacies and manufacturers to obtain and deliver 

prescription medications, and oversee both the use of medications by claimants and the 

pricing and billing of medications by providers.

• Medical Provider Network: Procuring a medical provider network will guarantee a 

sufficient number of physicians who are willing and available to treat injured workers. 

• Evidence-Based Treatment Guidelines: OWCP proposes to acquire evidence-based 

treatment guidelines that the agency can embed into OWCP’s medical bill processing and 

claims systems to facilitate appropriate payment of medical bills and the clinical decisionmaking of the bill processing system and of Claims Examiners, thus providing more 

consistent and supportable outcomes for OWCP’s claimants. These guidelines will replace 

OWCP’s “treatment suites” which were developed and maintained “in house” and are a 

legacy of early attempts by OWCP to automate its medical bill pay processes. The 

commercially available evidence-based treatment guidelines are a comprehensive, evidence 

based product that will also provide a more cost effective solution. 

OWCP is also taking administrative actions to reduce rent costs and office space that will result 

in cost savings for its programs. 

• Space Optimization: In today’s budget-constrained environment, reallocating funds 

currently dedicated to rent costs is one of the few ways to contain costs in what is usually 

perceived as a mission-critical expense. OWCP is digitizing old, hardcopy files to reduce the 

current file room footprint annual cost of approximately $1 million. OWCP is also 

transitioning from antiquated geographically-based district office jurisdictions toward 

nationwide case assignment, to reduce reliance on brick and mortar offices, and to allow 

more flexibility to address fluctuations in workloads. 
TAB 2: State of Play

11

It is in this environment that OWCP is implementing a plan to significantly reduce its 

physical footprint, reduce rent costs, and reallocate that funding to more mission-focused 

capabilities. Over the past five years, OWCP accomplished space reductions totaling 80,467 

usable square feet, resulting in $2.42 million initial reduction to annual rent costs. In 

continued pursuit of cost reduction and efficient use of space, OWCP is pursuing several 

short term and long-term projects that will result in significant physical footprint and rent 

cost reductions.

• COVID-19 Operations: OWCP staff have been successfully teleworking for six years, and 

due to the COVID-19 pandemic, since March 2020, all OWCP staff have been successfully 

teleworking 100%. This includes supervisors and managers, who continue to remotely lead 

staff and to address poor performance, when the need arises. Significantly, OWCP has 

demonstrated that performance during the transition to 100% telework has not only remained 

level, but has improved. For example, the Federal Employees program increased the number 

of performance goals met during the 100% telework period than that same period the prior 

year. The Energy Workers program tripled the amount of quality indicators reviewed per 

claims examiner compared to fiscal year 2019, and still exceeded quality results over last 

year, with an average quality rating of 97% in fiscal year 2020. In addition, the Energy 

Workers program exceeded all of its timeliness performance goals reported to the 

Department. Although the number of claims increased in 2020, the Longshore program met 

more performance goals during the 100% telework period than the same period the prior 

year. In spite of the difficult operational environment created by the pandemic including the 

widespread cancelation of black lung exams, the Black Lung program met or exceeded the 

targets for each of its new innovative timeliness metrics which focus on employee "touch 

times"—the key points in the claims process that are within the direct control of claims staff.

During first two months of 100% telework (March/April of 2020), the number of item 

processed by the Division of Administration and Operations increased an average of 27% 

across all branches compared to last year’s items processed during the same period.

OWCP has a phased plan to resume on-premises work as the pandemic subsides. The Office 

of the Assistant Secretary for Administration and Management approved the plan and it is 

available on the Department’s intranet page.

Federal Employees Program

• Processing COVID-19 Claims: Federal employees who contract COVID-19 while in the 

performance of their job duties are covered by the Federal Employees’ Compensation Act. 

The Federal Employees program implemented a policy on March 31, 2020 that recognizes 

that for certain high-risk jobs that involve significant public contact or risk of exposure (law 

enforcement, first responders, etc.), the agency can conclude that a person likely contracted 

COVID-19 at work. However, exposure alone is not covered and the Federal Employees’ 

Compensation Act does not authorize payment for the provision of solely preventive 

measures such as self-quarantine or isolation, which are the employing agency’s 

responsibility.

• Combating Opioid Misuse: Since 2017, the Federal Employees program has taken a fourpoint approach to combating the misuse of opioid medications: effective controls, tailored 
TAB 2: State of Play

12

treatment, impactful communications, and aggressive fraud detection. Recent policy changes 

include imposing stricter controls limiting all newly prescribed opioids to seven-days, with 

three subsequent seven-day fills before prior authorization is required to obtain opioids 

beyond 28 days. Results have been impressive and have included a 49% decline in overall 

opioid use and a 30% decline in new opioid prescriptions. 

• Improved Fraud Prevention: The Federal Employees program utilizes a robust analytics 

platform to detect problematic trends and anomalous billing patterns from medical providers 

and works with Inspectors General government-wide to support prosecution efforts. These 

efforts have led to exception-based controls on medication “convenience kits” and other 

physician-dispensed drugs. Other efforts have included controls on: unnecessary 

prescriptions that have an inexpensive over-the-counter alternative available, “prescription 

medical devices” that were being billed to bypass controls on convenience kits and 

compounded medications, and shutting down a loophole on unlisted physician-dispensed 

drugs that began to be used to bypass other controls. 

• Reform of the Federal Employees’ Compensation Act: On April 9, 2020, OWCP Director 

Hearthway submitted a Federal Employees’ Compensation Act Reform bill to the House 

Education and Labor Committee and the Senate Health, Education, Labor, and Pensions 

Committee at the direction of Office of Management and Budget. On April 17, 2020, the 

Department of Defense submitted DOL’s Federal Employees’ Compensation Act Reform bill 

to the House and Senate Armed Services Committees as part of their FY 2021 National 

Defense Authorization Act transmittal. The proposal simplifies Federal Employees’ 

Compensation Act benefit rates, introduces controls to prevent fraud and limit improper 

payments, and modernizes benefit administration. No current legislation has been introduced 

containing the proposal. If the submitted bill is moved forward, it would likely lead to debate 

and additional media mentions.

• Regulatory Action: Performance of Functions; Claims for Compensation Under the 

Federal Employees’ Compensation Act; Compensation for Disability and Death of 

Noncitizen Federal Employees Outside the United States (RIN 1240-AA14): The 

proposed regulatory changes will provide increased economic savings, more efficient claims 

processing and payment of benefits, more choices and quicker access to healthcare, and will 

strengthen anti-fraud efforts.

Status: OWCP anticipates publishing the rule in calendar year 2020.

Longshore Program

• Regulatory Action: Electronic Filing, Settlement, and Civil Money Penalty Procedures 

(RIN 1240-AA13): OWCP is amending its existing regulations to improve program 

administration, promote accountability, and ensure fairness. 

Status: OWCP anticipates publishing the rule in calendar year 2020.

• Regulatory Action: Longshore and Harbor Workers' Compensation Act: Definition of 

Recreational Vessel (RIN 1240-AA15): OWCP will propose amendments to the current 
TAB 2: State of Play

13

regulatory definition of recreational vessel and related regulations that apply when 

determining whether these workers are excluded from Longshore Act coverage. The 

revisions will clarify implementation of this exclusion.

Status: OWCP anticipates publishing the rule in calendar year 2020.

Black Lung Program

• Regulatory Action: Black Lung Quality Standards Notice of Proposed Rulemaking

(RIN: 1240-AA12): In 2019, the Division of Coal Mine Workers’ Compensation published a 

Request for Information seeking public input on updating the standards for administering and 

interpreting medical testing done in connection with claims under the Black Lung Benefits 

Act. The existing standards, last amended in 2000, have fallen out of date and no longer 

reflect current medical technology or practice.

Status: The Division of Coal Mine Workers’ Compensation is evaluating the comments 

received in response to the Request for Information, and expects to proceed with a Notice of 

Proposed Rulemaking in early 2021.

• Revised Self-Insurance Process: The Division of Coal Mine Workers’ Compensation has 

updated the process by which self-insured operators provide security for their liabilities under 

the Black Lung Benefits Act. The Department notified all actively mining operators who 

self-insure their liabilities of this new process and asked them to submit documentation for 

reassessment and reauthorization. The Division of Coal Mine Workers’ Compensation has 

received financial information from operators and is currently working to establish security 

amounts.

Energy Workers Program

• Managing Home Health Care Costs: The increasingly large number of providers entering 

the marketplace to provide home health care coverage to Division of Energy Employees 

Occupational Illness Compensation claimants and the relatively expansive coverage for in 

home health care under the law has resulted in exponential growth in this sector. The 

program has directed increasing resources to improve timeliness and quality of home health 

care management including the centralization of medical benefit case adjudication activities, 

development of improved case management resources, and publication of more clear 

procedural guidance. 

• Response to the Office of the Ombudsman Report: DOL’s Office of the Ombudsman for 

the Energy Employees Occupational Illness Compensation Program submits an annual report 

to Congress identifying the number and types of complaints, grievances, and requests for 

assistance received by the Office during the preceding year and providing an assessment of 

the most common difficulties encountered by claimants and potential claimants during the

preceding year concerning the Energy Employees Occupational Illness Compensation 

Program Act. The Department transmitted the Office of the Ombudsman’s 2019 report to 

Congress on July 8, 2020. The Energy Workers program will draft a response for 

consideration by the Secretary within the next six months.
TAB 2: State of Play

14

• COVID-19 Response Bulletins – Telemedicine for Home and Residential Health Care, 

Routine Physician Appointments, and Durable Medical Equipment: In response to the 

COVID-19 public health emergency, the Division of Energy Employees Occupational Illness 

Compensation issued Bulletins that are comprised of temporary procedures to provide 

physicians, who have the ability to use telemedicine, with an alternative method to satisfy the 

regulatory requirement for a face-to-face examination. The procedures described are 

optional.

Enforcement 

Longshore Program Enforcement of Compliance of Timely Reporting of Injuries and 

Payment of Compensation: The Longshore program can assess a monetary penalty when an 

employer or insurance carrier fails to timely report a work-related injury or death (33 U.S.C. 

930(e)) or fails to timely report its final payment of compensation to a claimant (33 U.S.C. 

914(g)). The program notifies employers and insurance carriers subject to assessment of a civil 

penalty of the late or missing report and they are provided an opportunity to explain why a 

penalty is not warranted before a civil penalty is assessed. The program plans to issue a 

rulemaking by the end of the calendar year to that will set out procedures for assessing and 

reviewing penalties. The program has suspended the assessment of civil penalties until the 

Department finalizes the rule. 

Audits and Reports

• Office of Inspector General Audit of the District of Columbia Workmen’s 

Compensation Act Special Fund Financial Statements for the Years Ended September 

30, 2019 and 2018 – initiated March 30, 2020. Annual review of financial statements and 

internal control over financial reporting for the District of Columbia Workmen’s 

Compensation Act Special Fund. 

Status: Audit in process. OWCP continues to gather information to support the audit.

• Office of Inspector General Audit of the Longshore and Harbor Workers’ 

Compensation Act Special Fund Financial Statements for the Years Ended September 

30, 2019 and 2018 – initiated March 30, 2020. Annual review of financial statements and 

internal control over financial reporting for the Longshore and Harbor Workers’ 

Compensation Act Special Fund managed by the Longshore program.

Status: Audit in process. OWCP continues to gather information to support the audit.

• Office of Inspector General Audit of Home Healthcare Costs in the Office of Workers’ 

Compensation Programs Energy Employees Occupational Illness Compensation 

Program – initiated April 21, 2020. The Office of Inspector General is looking at the 

policies and controls in place to prevent improper payments of home healthcare costs. 

Status: Audit in process. OWCP continues to gather information to support the audit.

• Office of Inspector General Audit of OWCP’s Response to the COVID-19 Pandemic 

(Phase 2) – initiated August 6, 2020. The Office of Inspector General is analyzing to what 

extent the COVID-19 pandemic has impacted OWCP’s ability to meet established timeliness 
TAB 2: State of Play

15

and quality performance standards for Federal Employees’ Compensation Act claims, and the 

response to the pandemic has impacted its management of opioid claims.

Status: Audit in process. OWCP continues to gather information to support the audit. 

• Government Accountability Audit of Black Lung Benefits Program: Improved 

Oversight of Coal Miner Operator Insurance Is Needed. The Government Accountability 

Office issued a report calling for improved oversight of coal mine operator insurance in order 

to better protect the Black Lung Disability Trust Fund (Trust Fund). OWCP evaluates 

requests from coal mine operators to self-insure their Black Lung Benefits Act 

obligations. Recently, OWCP updated its procedures for how self-insurance applications are 

evaluated and created new forms to assist with this process. The updated process, which 

includes analysis of both the operators' financial health and projected black lung liabilities, 

will help protect the Trust Fund from future operator bankruptcies and fulfills the Secretary's 

fiduciary duty to protect Trust Fund assets.

Status: The Government Accountability Office issued the report on February 26, 2020. 

Key Agency Stakeholders

Agency Level

National Academy of Social Insurance: William M. Rodgers, III, Chair; William J. Arnone, 

Chief Executive Officer. OWCP works closely with the National Academy of Social Insurance 

on federal and state workers’ compensation issues. National Academy of Social Insurance is a 

nonprofit, nonpartisan organization composed of the nation's leading experts on social insurance. 

Federal Employees Program

United States Postal Service: Louis DeJoy, Postmaster General, Thomas Marshall, General 

Counsel and Executive Vice President, and Isaac Cronkhite, Chief Human Resources Officer and 

Executive Vice President. The U.S. Postal Service historically accounts for approximately half of 

program costs and U.S. Postal Service management remains interested in actions OWCP takes to 

decrease Fair Share costs. 

Law Enforcement, First Responder, and Other Position Advocacy Groups: OWCP 

implemented a policy on March 31, 2020, that recognizes that for certain high-risk jobs that 

involve significant public contact or risk of exposure, the agency can conclude that the person 

likely contracted COVID-19 at work. Various law enforcement advocacy groups like the Federal 

Law Enforcement Officers Association were frequently contacting the Department and have 

been supportive of OWCP thus far. Various firefighter advocacy groups have also recently 

contacted the Department. 

Longshore Program 

Longshore and Harbor Workers’ Insurance Industry: The Longshore program is responsible 

for overseeing the private administration of claims and implementing the plans, policies, 

regulations, and procedures necessary for the authorization and monitoring of the approximately 

550 insurance carriers and self-insured employers that write Longshore coverage. The Longshore 
TAB 2: State of Play

16

program maintains over $3.2 billion in employers’ and insurance carriers’ securities to ensure the 

continuing provision of benefits for covered workers in case of their insolvency. The Longshore 

program also collects annual assessments to cover the Special Fund. 

Black Lung Program

National Coalition of Black Lung & Respiratory Disease Clinics: Funded by the Department 

of Health and Human Services, Health Resources and Services Administration, the clinics 

program provides treatment and rehabilitation to Black Lung patients and others with 

occupationally related pulmonary diseases. The clinics also provide claim filing assistance, 

outreach, preventive and health promotion services, education for patients and their families, and 

testing to determine eligibility for benefits. 

National Mining Association: The National Mining Association is a trade group composed of

250 corporations or organizations involved in the mining industry. The association represents the 

interests of mine operators, and its headquarters is located in Washington, D.C.

Media Coverage and Interest

COVID-19 Federal Employees’ Compensation Act Claims

In July 2020, the results of a DOL Office of Inspector General audit titled, “COVID-19: OWCP 

Should Continue to Closely Monitor Impact on Claims Processing,” were reported by numerous 

news outlets including the Washington Post and Forbes. The reports cited statistics indicating 

that 4,000 workers had filed claims for disability compensation on the grounds that they 

contracted COVID-19 at work and the survivors of 60 deceased employees had filed for death 

benefits. It is probable that media interest will continue or intensify in the coming months. 

Black Lung Disability Trust Fund

Over the last two years, media outlets including CNN and the Associated Press have published 

reports on the solvency of the Black Lung Disability Trust Fund. These reports have focused on 

the cause of the debt, the impact of coal mine operator bankruptcies, the coal excise tax that 

produces revenue for the Trust Fund, and the potential impacts on benefits to miners and their 

survivors. The most recent coverage has focused primarily on industry efforts to reduce the 

excise tax levied on coal mined and used domestically (under current law, the tax rate will 

automatically be reduced by approximately 55% at the beginning of 2021). It is likely that 

periodic media interest will continue. 
TAB 3: Calendar

17

TAB 3: CALENDAR

Event Date

Division of Energy Employees Occupational Illness Compensation Virtual 

Outreach Event

November & 

December 2020

Federal Employees Program Federal Agency Partners Meeting (Joint 

Meeting with Occupational Safety and Health Administration)

December 2020

Division of Energy Employees Occupational Illness Compensation Virtual 

Outreach Event

January & 

February 2021

Quarterly Energy Workers Program Medical Teleconference January 2021

National Coalition of Black Lung & Respiratory Disease Clinics Annual 

Washington, D.C. Meeting

March 2021

Division of Energy Employees Occupational Illness Compensation 

Outreach Event

March & April 

2021

Annual Longshore Conference (co-hosted by Loyola University of New 

Orleans College of Law)

March 2021

Quarterly Energy Workers Program Medical Teleconference March 2021

Black Lung Program National Council of Compensation Insurance 

Conference

May 2021

Longshore Program SIGNAL Maritime Conference May 2021

West Virginia Black Lung Association’s Annual Conference June 2021

Longshore Program National Shipbuilding Research Project Conference June 2021

Longshore Program Workers’ Compensation Institute August 2021

Annual Federal Workers’ Compensation Conference (coordinated by nonprofit organization, Chesapeake Health and Education Program)August 2021

National Coalition of Black Lung & Respiratory Disease Clinics Annual 

Conference

September 

2021

Institute for Continuing Legal Education at Loyola University New Orleans 

College of Law Longshore Program “A Day With DOL” Workshop

September 

2021
TAB 4: Budget

18

TAB 4: BUDGET

Office of Workers’ Compensation Programs – Overview

BUDGET AUTHORITY AND FTE SUMMARY

(Dollars in millions)

Agency Budget Overview

The Office of Workers’ Compensation Programs’ (OWCP) national office consists of the OWCP 

Director and Deputy Director, the directors and staff of three program divisions, and directors 

and staff of two administrative divisions. 

The funding accounts managed by OWCP include:

• Salaries and Expenses Federal Programs for Workers’ Compensation: Provides 

funding, through direct appropriation and transfers from Trust Funds, for the 

administration of the Federal Employees’ Compensation Act, Longshore Harbor 

Workers’ Compensation Act, and for OWCP’s administration of the Black Lung 

Disability Trust Fund and claims filed under Part C of the Black Lung Benefits Act. 

• Special Benefits: Finances payments to Federal civilians and Longshore and Harbor 

Workers and their dependents for work-related injuries and illnesses. Under legislative 

amendments to extensions of Federal Employees’ Compensation Act, benefits are also 

paid to certain groups such as War Hazards claimants, non-Federal law enforcement 

officers, Job Corps enrollees, and certain federally supported volunteers. The Special 

Benefits account also provides for Federal Employees program administration using “Fair 

Share” funds collected pursuant to Federal Employees’ Compensation Act Section 8147 

(c).

• Special Benefits for Disabled Coal Miners: Finances income maintenance to miners 

suffering from Black Lung disease and eligible survivors for claims filed under Part B of 

the Black Lung Benefits Act between December 30, 1969, and June 30, 1973, and 

associated administrative costs.

• Energy Employees Occupational Illness Compensation Program Act: Part B and Part 

E funding provides compensation to Department of Energy employees and their 

survivors, as well as contractors, for illness or death stemming from work in the 

Department of Energy nuclear weapons complex. Funding is also provided for the 

associated administrative costs of the program.

• Black Lung Disability Trust Fund: Established under the Black Lung Benefits Reform 

Act of 1977 to provide for payment of Part C benefits (income maintenance and medical 

payments to miners suffering from Black Lung disease and eligible survivors), 

administrative expenses, and interest on repayable advances.

• The Panama Canal Commission Compensation Fund: Established to provide for the 

accumulation of funds to meet the Commission’s Federal Employees’ Compensation Act 

workers’ compensation cost obligations that extend beyond the dissolution of the Panama 

Canal Commission on December 31, 1999, under the Panama Canal Treaty of 1977. This 

Fund was established in conjunction with the transfer of the administration of the Federal 

Employees program from the Commission to DOL (OWCP) effective January 1, 1989.

• The Special Workers’ Compensation Fund: Consists of amounts received from 

employers pursuant to an annual assessment of the industry and for the death of an 
TAB 4: Budget

19

employee where no person is entitled to compensation for such death, and for fines and

penalty payments under the Longshore and Harbor Workers’ Compensation Act, as 

amended. Fund expenses include benefit payments in second injury cases, costs for 

vocational rehabilitation services to injured workers, and benefits for cases involving 

insolvency or other circumstances precluding payment by the employer.

Budget and Full-time Equivalent (FTE) Trends

• The total budget authority for OWCP has increased from $341.1 million in fiscal year 

2012 to $362.3 million in fiscal year FY 2020. The largest increase over that time is in 

the Special Benefits account of about $15 million. All other accounts have not varied 

significantly.

• During that time, the total FTE has decreased from 1,604 in fiscal year 2012 to 1,356 in 

fiscal year 2020. The decrease in FTE and increase in total budget authority can mostly 

be attributed to higher costs per FTE, as well as higher overhead costs for expenses like 

rent, the Working Capital Fund, and information technology charges.

• Specific program dollar and FTE changes are discussed in their respective summaries and 

analyses.

Staff Contacts

Shanti Ananthanayagam, Agency Budget Officer/Acting Comptroller

OWCP

Ananthanayagam.Shanti@dol.gov

202-354-9692
TAB 4: Budget

20

Office of Workers’ Compensation Programs – Federal Programs for 

Workers’ Compensation

(Dollars in millions)

FY 2017

Enacted

FY 2018

Enacted

FY 2019

Enacted

FY 2020

Enacted

FY 2021

Request

Budget Authority $153.2 $153.3 $153.5 $153.6 $160.0

FTE 891 879 868 845 839

At-A-Glance

• The Office of Workers’ Compensation Programs (OWCP) Federal Programs for 

Workers’ Compensation account is financed with both general funds and trust funds. 

General funds finance a portion of the funding for the Division of Federal Employees’, 

Longshore and Harbor Workers’ Compensation (in August 2020, OWCP merged the 

Division of Federal Employees’ Compensation and the Division of Longshore and 

Harbor Workers’ Compensation into one division). Trust funds finance the Longshore 

Trust account and the Division of Coal Mine Workers’ Compensation’s Black Lung 

Benefits Part C account. The Division of Federal Employees’, Longshore and Harbor 

Workers’ Compensation has discretionary funding that is appropriated annually and were 

only subject to sequestration in fiscal year 2013.

• The Division of Coal Mine Workers’ Compensation’s funding is mandatory, however, 

the amounts for expenses of operation and administration of the Black Lung Benefits 

program are definite and need to be appropriated. Funding for Black Lung Benefits Part 

C is transferred from the Black Lung Disability Trust Fund to OWCP for the 

administration of Black Lung benefits. The Division of Coal Mine Workers’ 

Compensation Black Lung Disability Trust Fund account has been subject to 

sequestration each year since it began in fiscal year 2013. Annual sequestration 

reductions have made it increasingly difficult for the program to keep pace with 

operational and inflationary cost increases, eroding its ability to achieve its mission with 

each passing year.

Budget and Full-time Equivalent (FTE) Trends

• The total Federal Programs for Workers’ Compensation budget has only increased 

slightly from $150.7 million in fiscal year 2013 to $153.6 million in fiscal year 2020. The 

agency has received small increases and decreases in budget authority during that time. 

Any change in budget authority is generally attributable to changes in the Federal 

Employees program, which accounts for about two-thirds of Federal Programs for 

Workers’ Compensation.

• Over the same time, total FTE has decreased from 1,004 in fiscal year 2013 to 845 in 

fiscal year 2020. An increase in cost per FTE and inflationary increases in contract costs

has decreased the agency’s ability to finance FTE, despite a slightly higher budget. 

• OWCP has taken steps to unify their claims processing systems over the past several 

years. The Longshore program began the deployment of the OWCP Workers’ 

Compensation System in May 2020. OWCP will continue modernization efforts in fiscal 
TAB 4: Budget

21

year 2021 as the Federal Employees program begins to work on the development of 

system requirements. 

• OWCP transferred $4.4 million and 24 FTE for the Shared Services initiative in fiscal 

year 2021 from the Federal Programs for Workers’ Compensation, Special Benefits, Fair

Share, and Energy Employees Occupational Illness Compensation Program Act accounts. 

The Office of the Chief Information Officer will serve as a conduit of communications 

and information sharing with OWCP, provide solution-focused advisory services, 

facilitate information technology strategic planning, conduct continual performance 

management and monitoring of the service level agreement, understand client goals and 

needs, and learn the functional and technical issues faced by OWCP, and facilitate 

resolution within the Office of the Chief Information Officer.

Upcoming Issues

• OWCP requested $4 million and 24 FTE for supplemental funding to handle Federal 

Employees’ Compensation Act claims related to COVID-19. OWCP did not receive any 

supplemental funding but has gone through the Human Resources process and is ready to 

bring those new hires onboard. OWCP will need to ensure that some combination of 

attrition, deferred hires that may have been planned for next year, and contract reductions 

are sufficient to fully fund the COVID-19 related hires. In the fiscal year 2021 

President’s Budget, OWCP requested:

o $2,000,000 and 0 FTE in Black Lung Disability Trust Fund administrative funding 

for the Black Lung program to improve the efficiency and cost-effectiveness of 

program operations, and to comply with National Archives and Records 

Administration’s new paperless mandate. The funding will provide the Division of 

Coal Mine Workers’ Compensation with resources to convert approximately 40 

million pages of paper case files to a digital format to transition from a paper-based 

system to a fully digital environment in fiscal year 2021.

o $235,000 and 2 FTE in Black Lung Disability Trust Fund administrative funding for 

the Black Lung program to timely and accurately identify liable coal mine operators 

and insurance carriers, process self-insurance applications, conduct appropriate 

monitoring of self-insured operators, and support the revised self-insurance 

evaluation process.

o The fiscal year 2021 Request is for $6.4 million more than fiscal year 2020 Enacted.
TAB 4: Budget

22

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Req.

Request $156.4 $155.1 $153.6 $148.4 $154.8 $164.4 $153.5 $153.5 $156.0 $156.0

Enacted $150.7 $143.0 $142.4 $143.9 $148.3 $153.2 $153.3 $153.5 $153.6

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

OWCP - Federal Programs for 

Workers' Compensation

Request vs. Enacted, FY 2012-FY 2021

(Dollars in millions)

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

Enacted $150.7 $143.0 $142.4 $143.9 $148.3 $153.2 $153.3 $153.5 $153.6

Inflation Adjusted $150.7 $153.0 $155.4 $155.6 $157.6 $161.0 $164.8 $167.8 $167.8

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

OWCP - Federal Programs for 

Workers' Compensation

FY 2012 Inflation Adjusted Budget Authority vs. FY 

2012-FY 2020 Enacted Budget Authority

(Dollars in millions)
TAB 4: Budget

23

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $150.7 $143.0 $142.4 $143.9 $148.3 $153.2 $153.3 $153.5 $153.6

Obligations $150.6 $142.3 $141.9 $143.0 $147.5 $152.6 $152.7 $153.2

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

OWCP - Federal Programs for 

Workers' Compensation

Budget Authority vs. Obligations, FY 2012-FY 2020

(Dollars in millions)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Req.

Authorized 1,015 1,004 999 983 983 891 879 868 845 849

Actuals 990 998 937 938 937 901 854 856

0

200

400

600

800

1,000

1,200

OWCP - Federal Programs for 

Workers' Compensation

Authorized FTE vs. Actuals, FY 2012-2021
TAB 4: Budget

24

Office of Workers’ Compensation Programs – Special Benefits

BUDGET AUTHORITY AND FTE SUMMARY

(Dollars in millions)

FY 2017

Enacted

FY 2018

Enacted

FY 2019 

Enacted

FY 2020 

Enacted

FY 2021 

Request

Budget Authority $66.7 $71.2 $74.8 $74.8 $80.3

FTE 104 128 158 158 154

At-A-Glance

• Spending authority is provided for Federal Employees program administration out of 

annual “Fair Share” collections. Fair Share assessments are mandated under Section 

8147(c) of the Federal Employees’ Compensation Act for 23 non-appropriated agencies, 

including the Postal Service, with each paying a pro rata share of the Office of Workers’ 

Compensation Programs’ (OWCP) cost to administer Federal Employees’ Compensation 

Act claims filed by their employees. 

• This fund is financed by appropriations from Congress that are used to pay current 

Federal Employees’ Compensation Act benefits and that are ultimately reimbursed by 

Federal agencies and non-appropriated agencies through the chargeback process.

• Each quarter, OWCP provides to all federal agencies and non-appropriated agencies with 

employees receiving Federal Employees’ Compensation Act benefits an estimate of the 

cost of these benefits to assist these agencies in preparing their budget requests. By 

August 15 of each year, OWCP sends each agency a statement of their Federal 

Employees’ Compensation Act costs for the previous fiscal year. Each agency must 

include in its next budget request resources to cover its Federal Employees’ 

Compensation Act costs for the previous fiscal year. For non-appropriated agencies, they 

must pay the amount by October 15.

• In addition to an amount appropriated for Special Benefits Fair Share, this account also 

receives a small amount in carryover funding each year.

Budget and Full-time Equivalent (FTE) Trends

• On average, OWCP collects approximately $8-$10 million more per year than they are 

allowed to use in their appropriations language. OWCP submitted budget requests to the

Office of Management and Budget for full use of Fair Share funding in fiscal years 2012 

and 2013. Both times, the Office of Management and Budget denied the request. More 

recent requests have been denied by the Office of Management and Budget which 

questions the need for full use of Fair Share funding. The number of actual FTE has 

steadily declined from a high of 123 in fiscal year 2009 to 107 in fiscal year 2015. A 

significant reason for the decline is due to higher costs for compensation and benefits 

combined with a relatively flat funding level.

• The Special Benefits budget and FTE has increased substantially from fiscal year 2016 to 

fiscal year 2020 to help fund the fight against opioid and compound drug abuse. In fiscal 

year 2018, OWCP received $4.2 million and 37 FTE for a Federal Employees’ 

Compensation Act Opioid Control and Prevention Unit. In fiscal year 2019, OWCP 
TAB 4: Budget

25

received $2.6 million and 26 FTE for a Federal Employees’ Compensation Act 

Prescription Management Unit and $1 million and 5 FTE for a Pharmacy Benefit 

Manager.

Upcoming Issues

• In FY 2021, OWCP is requesting $5.4 million to modernize and enhance OWCP’s 

Employees’ Compensation Operations and Management Portal to meet growing customer 

demand and provide workers’ compensation case management services. The Employees’ 

Compensation Operations and Management Portal is an online portal used nationwide by 

injured federal employees and their employing agencies to electronically file new injury 

claims, disability claims, check existing case statuses, and to manage the case for return 

to work efforts.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Req.

Request $59.5 $58.5 $60.0 $60.3 $62.2 $64.0 $71.2 $74.8 $74.8 $80.3

Enacted $64.0 $61.4 $60.0 $60.5 $62.6 $67.8 $72.4 $75.4 $78.7

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

OWCP - Special Benefits

Request vs. Enacted, FY 2012-FY 2021

(Dollars in millions)
TAB 4: Budget

26

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $64.0 $61.4 $60.0 $60.5 $62.6 $67.8 $72.4 $75.4 $78.7

Inflation Adjusted $64.0 $64.9 $66.0 $66.1 $66.9 $68.3 $70.0 $71.2 $71.2

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

OWCP - Special Benefits

FY 2012 Inflation Adjusted Budget Authority vs. FY 

2012-FY 2020 Enacted Budget Authority

(Dollars in millions)
TAB 4: Budget

27

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $64.0 $61.4 $60.0 $60.5 $62.6 $67.8 $72.4 $75.4 $78.7

Obligations $62.1 $59.2 $59.9 $60.1 $62.0 $67.6 $72.1 $74.9 $78.5

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

OWCP - Special Benefits

Budget Authority vs. Obligations, FY 2012-FY 

2020

(Dollars in millions)

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

Req.

Authorized 109 116 114 110 110 104 128 158 158 158

Actuals 119 114 110 107 103 105 122 150 149

0

20

40

60

80

100

120

140

160

180

OWCP - Special Benefits

Authorized FTE vs. Actuals, FY 2012-2021
TAB 4: Budget

28

Office of Workers’ Compensation Programs – Energy Employees 

Occupational Illness Compensation Program Act

BUDGET AUTHORITY AND FTE SUMMARY

(Dollars in millions)

FY 2017

Enacted

FY 2018

Enacted

FY 2019 

Enacted

FY 2020 

Enacted

FY 2021 

Request

Budget Authority $122.7 $124.9 $125.2 $125.4 $140.1

FTE 470 440 445 433 427

At-A-Glance

• The Energy Employees Occupational Illness Compensation Program Act provides 

benefits coverage to covered Department of Energy employees or survivors under Part B 

of Energy Employees Occupational Illness Compensation Program Act, and private 

companies under contract with Department of Energy who have been afflicted with 

diseases resulting from their work in producing or testing nuclear weapons under Part E 

of Energy Employees Occupational Illness Compensation Program Act. 

• Benefits under Part B of Energy Employees Occupational Illness Compensation Program 

Act are administered and financed through an annual appropriation each year plus 

carryover amounts. Benefits under Part E of Energy Employees Occupational Illness 

Compensation Program Act are administered and financed through an indefinite 

appropriation. An indefinite appropriation is an amount for "such sums as may be 

necessary" to fulfill the purpose of the appropriation. 

• Funding is also appropriated annually for Ombudsman Part B and Ombudsman Part E, in 

addition to these offices’ carryover funding. The Ombudsman offices are intended to 

provide information and address the concerns of claimants and potential claimants 

relating to the benefits available under Energy Employees Occupational Illness 

Compensation Program Act. The Ombudsman is not technically a part of Office of 

Workers’ Compensation Programs and is not represented in the Budget Authority 

amounts above, but the funding for the Ombudsman offices is included as part of the 

Energy Employees Occupational Illness Compensation Program Act appropriation. 

Budget and Full-time Equivalent (FTE) Trends

• The total enacted budget authority has increased slightly from $117.0 million in fiscal 

year 2013 to $126.9 million in fiscal year 2020. Sequestration took effect in fiscal year 

2013 and has remained every year since, creating an obstacle for the Energy Workers 

program. As a mandatory defense program, the funding for the Energy Employees 

Occupational Illness Compensation Program Act has been subject to a higher level of 

sequestration every year than non-defense, ranging from 7.9% to 9.8%. This has made it 

increasingly difficult for the program to fulfill its mission.

• The number of actual FTE has declined significantly since fiscal year 2013 when it was 

at a high of 519 FTE. In fiscal year 2020, the authorized FTE was down to 437. Flat 

funding levels and increased cost per FTE has led to the decreased FTE level. 
TAB 4: Budget

29

• Beginning in fiscal year 2015, the Energy E account began receiving funding for the 

Energy Advisory Board on Toxic Substances and Worker Health. The Advisory Board 

will receive funding every year to advise the Secretary of Labor with respect to technical 

aspects of the Energy Employees Occupational Illness Compensation Program Act. In 

fiscal year 2015, the account received $0.2 million to begin implementation of the Board, 

and $0.5 million in fiscal year 2016.
TAB 4: Budget

30

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

Req.

Request $125.6 $128.8 $129.2 $130.8 $133.4 $136.6 $138.8 $138.1 $138.8 $141.8

Enacted $124.0 $115.5 $114.8 $117.0 $119.8 $122.7 $124.9 $125.2 $125.4

$0

$20

$40

$60

$80

$100

$120

$140

$160

OWCP - Energy Employees 

Occupational Illness 

Compensation Program Act

Request vs. Enacted, FY 2012-FY 2021

(Dollars in millions)
TAB 4: Budget

31

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

Enacted $124.0 $115.5 $114.8 $117.0 $119.8 $122.7 $124.9 $125.2 $125.4

Inflation Adjusted $124.0 $125.8 $127.9 $128.0 $129.7 $132.4 $135.6 $138.0 $138.0

$0

$20

$40

$60

$80

$100

$120

$140

$160

OWCP - Energy Employees 

Occupational Illness 

Compensation Program Act

FY 2012 Inflation Adjusted Budget Authority vs. 

FY 2012-FY 2020 Enacted Budget Authority

(Dollars in millions)
TAB 4: Budget

32

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $124.0 $115.5 $114.8 $117.0 $119.8 $122.7 $124.9 $125.2 $125.4

Obligations $122.9 $117.7 $119.0 $118.5 $120.9 $128.6 $127.9 $125.0 $125.8

$105

$110

$115

$120

$125

$130

OWCP - Energy Employees 

Occupational Illness 

Compensation Program Act

Budget Authority vs. Obligations, FY 2012-FY 

2020

(Dollars in millions)

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

Req.

Authorized 464 514 500 493 484 470 440 445 433 432

Actuals 466 500 493 475 474 467 435 406 399

0

100

200

300

400

500

600

OWCP - Energy Employees 

Occupational Illness 

Compensation Program Act

Authorized FTE vs. Actuals, FY 2012-2021
TAB 4: Budget

33

Office of Workers’ Compensation Programs – Special Benefits for Disabled 

Coal Miners

BUDGET AUTHORITY AND FTE SUMMARY

(Dollars in millions)

FY 2017

Enacted

FY 2018

Enacted

FY 2019 

Enacted

FY 2020 

Enacted

FY 2021 

Request

Budget Authority $5.0 $5.0 $5.0 $4.9 $5.0

FTE 16 16 16 13 13

At-A-Glance

• Special Benefits for Disabled Coal Miners provides benefits for coal miners totally 

disabled by pneumoconiosis who filed claims on or before December 31, 1973. The 

benefit payments for the Office of Workers’ Compensation Programs (OWCP) Special 

Benefits for Disabled Coal Miners account is financed through a definite appropriation 

and an advance appropriation from the previous fiscal year. Special Benefits for Disabled 

Coal Miners provides benefits for coal miners totally disabled by pneumoconiosis who 

filed claims on or before December 31, 1973. The advance appropriation is authorized in 

the current fiscal year and is eligible to be used in the first quarter of the following fiscal 

year to ensure that beneficiaries will continue to receive benefits in the event of a 

temporary funding hiatus.

• Administrative expenses are funded through an annual appropriation each year plus 

carryover amounts.

Budget and Full-time Equivalent (FTE) Trends

• Benefits payments have decreased from $97 million in fiscal year 2016 to $67million in 

fiscal year 2019 due to a declining population of beneficiaries. Administrative expenses 

have not changed significantly between fiscal year 2013 and fiscal year 2020. In fiscal 

year 2020, the Office of Management and Budget cited a declining beneficiary 

population to reduce Special Benefits for Disabled Coal Miners from 16 to 13 FTE. 

• Special Benefits for Disabled Coal Miners’ administrative account has been sequestered 

each year since fiscal year 2013. 
TAB 4: Budget

34

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Req.

Request $5.2 $5.2 $5.2 $5.3 $5.3 $5.3 $5.3 $5.3 $5.0 $5.0

Enacted $5.6 $5.0 $4.9 $4.9 $4.9 $4.9 $5.0 $5.0 $4.9

$4.0

$4.5

$5.0

$5.5

$6.0

OWCP - Special Benefits for 

Disabled Coal Miners

Request vs. Enacted, FY 2012-FY 2021

(Dollars in millions)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $5.6 $5.0 $4.9 $4.9 $4.9 $4.9 $5.0 $5.0 $4.9

Inflation Adjusted $5.6 $5.7 $5.8 $5.8 $5.9 $6.0 $6.1 $6.2 $6.2

$0

$1

$2

$3

$4

$5

$6

$7

OWCP - Special Benefits for 

Disabled Coal Miners

FY 2012 Inflation Adjusted Budget Authority vs. 

FY 2012-FY 2020 Enacted Budget Authority

(Dollars in millions)
TAB 4: Budget

35

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $5.6 $5.0 $4.9 $4.9 $4.9 $4.9 $5.0 $5.0 $4.9

Obligations $5.6 $4.9 $4.8 $4.8 $4.9 $5.1 $5.0 $5.0 $4.7

$4.0

$4.5

$5.0

$5.5

$6.0

OWCP - Special Benefits for 

Disabled Coal Miners

Budget Authority vs. Obligations, FY 2012-FY 

2020

(Dollars in millions)
TAB 4: Budget

36

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

Req.

Authorized 16 15 15 16 16 16 16 16 13 13

Actuals 17 15 16 16 16 16 16 15 13

12

13

14

15

16

17

18

OWCP - Special Benefits for 

Disabled Coal Miners

Authorized FTE vs. Actuals, FY 2012-2021
TAB 4: Budget

37

Office of Workers’ Compensation Programs – Black Lung Disability Trust 

Fund

BUDGET AUTHORITY AND FTE SUMMARY

(Dollars in millions)

FY 2017

Enacted

FY 2018

Enacted

FY 2019 

Enacted

FY 2020 

Enacted

FY 2021 

Request

Budget Authority $66.0 $64.6 $66.5 $67.5 $74.4

FTE 299 310 262 278 280

At-A-Glance

• The Black Lung Disability Trust Fund is jointly administered by the Secretaries of Labor, 

Treasury, and Health and Human Services and provides for payment of benefits, 

administrative expenses, and interest on advances related to the operation of the program. 

Resources for the Trust Fund are derived from: an excise tax on each ton of coal sold and 

used domestically; reimbursements from responsible mine operators for interim 

payments; interest, fines, and penalties assessed to responsible mine operators; and shortterm advances from the Treasury.

• Within the Department of Labor, there is an administrative component and a payment of 

benefits component. The Office of Workers’ Compensation Programs (OWCP), 

Departmental Management’s Solicitor and Adjudication activities, and the Office of 

Inspector General all receive funding to support and oversee the administration of Black 

Lung Disability Trust Fund benefits. Additionally, a small amount is paid for Treasury 

administrative costs.

• Mandatory Black Lung Disability Trust Fund payments are made out of this account, as 

well as the payment of bond interest and payment of interest on advances in financing the 

Black Lung Disability Trust Fund.

Budget and Full-time Equivalent (FTE) Trends

• Total administrative funding between OWCP, Departmental Management, and Office of 

Inspector General has not increased between fiscal year 2013 ($58.4 million) and fiscal 

year 2020 ($67.5 million). The payment of Black Lung benefits has decreased during that 

same time from fiscal year 2013 ($191 million) to fiscal year 2019 ($146.5 million). The 

payment of benefits has decreased overall over time as the pool of Black Lung Disability 

Trust Fund beneficiaries has diminished. 

• The FTE level has, in general, stayed about the same from fiscal year 2017. The number 

of Black Lung claims has increased in recent years. As several unsecured self-insured 

coal companies have become insolvent and unable to pay benefits, the Trust Fund has 

become responsible for these claims, which require ongoing benefit maintenance and 

administrative costs. 

• The Emergency Economic Stabilization Act of 2008 authorized the restructuring of the 

Black Lung Disability Trust Fund debt. But due to decreases in revenue from coal excise 

taxes, the Black Lung Disability Trust Fund has had to borrow a rapidly increasing 
TAB 4: Budget

38

amount of money each year to fully fund the trust fund. This will continually increase the 

costs for payment of interest on bonds and advances alone.

• Since fiscal year 2013, the administrative funds for Black Lung Disability Trust Fund

have been subject to sequestration. The Department requests restoration of sequestered 

funds each year in the President’s Budget, but the account still operates at a sequestered 

level in the current year. In fiscal year 2019, the Black Lung Disability Trust Fund was 

sequestered at 6.2% resulting in a reduction of $2.4 million for OWCP’s administrative 

funds. 

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Req.

Request $58.5 $58.5 $58.7 $59.2 $65.9 $69.5 $69.5 $70.9 $71.4 $74.4

Enacted $58.5 $55.5 $54.5 $59.4 $61.4 $66.0 $66.2 $66.5 $67.5

$0

$10

$20

$30

$40

$50

$60

$70

$80

Black Lung Disability Trust 

Fund

Request vs. Enacted, FY 2012-FY 2021

(Dollars in millions)
TAB 4: Budget

39

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

Enacted $58.5 $55.5 $54.5 $59.4 $61.4 $66.0 $66.2 $66.5 $67.5

Inflation Adjusted $58.5 $59.4 $60.3 $60.4 $61.2 $62.5 $64.0 $65.1 $65.1

$0

$10

$20

$30

$40

$50

$60

$70

$80

Black Lung Disability Trust 

Fund

FY 2012 Inflation Adjusted Budget Authority vs. 

FY 2012-FY 2020 Enacted Budget Authority

(Dollars in millions)
TAB 4: Budget

40

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Enacted $58.5 $55.5 $54.5 $59.4 $61.4 $66.0 $66.2 $66.5 $67.5

Obligations $58.4 $55.3 $54.2 $59.1 $61.0 $65.6 $65.7 $65.3 $67.1

$0

$10

$20

$30

$40

$50

$60

$70

$80

Black Lung Disability Trust 

Fund

Budget Authority vs. Obligations, FY 2012-FY 

2020

(Dollars in millions)

FY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

Req.

Authorized 288 271 274 291 310 299 310 262 274 280

Actuals 268 278 266 272 305 306 251 236 268

0

50

100

150

200

250

300

350

Black Lung Disability Trust 

Fund

Authorized FTE vs. Actuals, FY 2012-2021
TAB 4: Budget

41

The Panama Canal Commission Compensation Fund: Established in conjunction with the 

transfer of the administration of the Federal Employees program from the Panama Canal 

Commission to the Department of Labor, effective January 1, 1989. The fund provides for the 

accumulation of funds to meet the Panama Canal Commission’s Federal Employees’ 

Compensation Act workers’ compensation cost obligations that extend beyond the dissolution of 

the Panama Canal Commission on December 31, 1999, under the Panama Canal Treaty of 1977.

The Special Workers’ Compensation Fund: Consists of amounts received from employers and 

insurance carriers pursuant to an annual assessment of the industry, for the death of an employee 

where no person is entitled to compensation for such death, and for fines and penalty payments 

under the Longshore and Harbor Workers’ Compensation Act, as amended. Fund expenses 

include benefit payments in second injury cases, costs for vocational rehabilitation services to 

injured workers, and benefits for cases involving insolvency or other circumstances precluding 

payment by the employee. 

Contract Administration: OWCP administers 32 non-information technology contracts for 

various services that total more than $64.5 million annually and 13 medical services contracts 

totaling over $18.5 million annually across all programs. 
TAB 5: Agency Performance

42

TAB 5: AGENCY PERFORMANCE

The Federal Employees program provides workers' compensation coverage under Federal 

Employees’ Compensation Act to approximately 2.6 million federal employees around the world 

for employment-related injuries and occupational diseases. The program focuses on measuring 

three fundamental tenets of workers’ compensation oversight: Learn about the injury as soon as 

possible, provide timely access to treatment, and return the injured worker to pre-injury status 

both economically and medically as soon as possible. The results of two measures covering the 

third tenant are included below:

• The program increased the timeliness of processing wage-loss claims that do not require 

further development from 91.8% percent in fiscal year 2016 to 94.0% in fiscal year 2020. 

• The number of Federal and U.S. Postal Service employees that are reemployed within 

two years of their Disability Management start date had been decreasing from 90.1% in 

2018 to 87.3% as of the first quarter of fiscal year 2020. In response, the Office of 

Management and Budget and the Department of Labor announced the creation of the 

Protecting Employees, Enabling Reemployment (PEER) Initiative21 on January 9, 2020. 

Since inception, this initiative has increased the score to 91.1%, underscoring the need for 

continued support of the PEER Initiative.

 21 https://www.dol.gov/owcp/dfec/peer/index.htm

91.8% 91.9% 92.4% 93.2% 94.0%

0%

20%

40%

60%

80%

100%

2016 2017 2018 2019 2020

Percent

Fiscal Year

Percent Of Wage-loss Claims Timely Processed Within 14 Days: 

Claims Not Requiring Further Development
TAB 5: Agency Performance

43

The Longshore program ensures the provision of workers' compensation protection to 

employees engaged in maritime work or in maritime occupation on the navigable waters of the 

United States or adjoining areas. Non-Defense Base Act cases include those that fall under the 

Longshore Act, which covers harbor workers, shipbuilders, and marine construction workers; the 

Non-appropriated Fund Instrumentalities Act, which covers employees working on U.S. military 

bases in non-appropriated facilities, like the post exchanges; and the Outer Continental Shelf 

Land Act, which mainly covers workers on oil rigs. 

Eighty-four percent of First Payments of Compensation were issued for non-Defense Base Act 

cases within 28 days from the date disability in fiscal year 2020.

In fiscal year 2018, the Black Lung program initiated a five-year strategic objective to reduce 

the percentage of claims pending for more than 365 days. This effort resulted in a reduction from 

20% to 12% in just two years, exceeding key targets in the Department’s Strategic Plan and 

facilitating the program’s commitment to timely, accurate decisions. In fiscal year 2020, 

operational challenges associated with the COVID-19 pandemic, including historically low 

incoming claims volumes for several months which dramatically reduced the total pending 

claims inventory, have made it difficult to maintain the percentage at the target level. However, 

the program reallocated resources and reprioritized work to achieve the revised fiscal year 2020 

target of 15%.

90.1% 89.7% 87.3% 88.2% 88.6% 91.1%

0%

20%

40%

60%

80%

100%

2018 2019 2020 (Q1) 2020 (Q2) 2020 (Q3) 2020 (Q4)

Percent

Fiscal Year

Percent Of Federal And United States Postal Service Employees 

With Work-related Injuries Or Illnesses Under FECA's Disability 

Management Who Are Reemployed Within Two Years Of Their 

Disability Management Start Date

Start of 

PEER

Initiative
TAB 5: Agency Performance

44

The Energy Workers program measures its timeliness and accuracy in adjudicating claims. 

The average number of days between filing date and final decision for cases not sent to the 

National Institute for Occupational Safety and Health when a hearing is not held fell from 167 

days in fiscal year 2016 to 161 days in fiscal year 2020.