NOTE 14. Federal Employees and Veteran's Benefits
The provision for workers' compensation benefits payable, as of September 30, 2005 and 2004 are as indicated below.
Accrued Unfunded Workers' Compensation Benefits
(Dollars in Thousands)
| |
FY 2005 |
FY 2005 |
| Liabilities Not Covered by Budgetary Resources |
|
|
| Future Workers' Compensation Benefits |
$ 23,726 |
$ 24,523 |
| Accrued Funded Payroll and Leave |
13,964 |
6,985 |
| Total Accrued Unfunded Workers' Compensation Benefits |
$ 37,690 |
$ 31,508 |
The Federal Employees Compensation Act (FECA) program is administered by the U.S. Department of Labor (DOL) and provides income and medical cost protection to covered Federal civilian employees who have been injured on the job or have incurred a work-related occupational disease. Compensation is given to beneficiaries of employees whose death is attributable to a job-related injury or occupational disease. DOL initially pays valid FECA claims for all Federal government agencies and seeks reimbursement two fiscal years later from the Federal agencies employing the claimants.
Estimated future FECA costs are determined by the Department of Labor. This liability is determined using a paid losses extrapolation method calculated over a 37 year period. This method utilizes historical benefit payment patterns related to a specific incurred period to predict the ultimate payments related to that period. These annual benefit payments have been discounted to present value.
The interest rate assumptions used for discounting were 4.883% in year 1 and 5.235% in Year 2 and thereafter.
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