NOTE 14. Federal Employees and Veteran's Benefits
The provision for workers’ compensation benefits payable,
as of September 30, 2006 and 2005 are as indicated below.
These liabilities are included in the Intragovernmental Other
Liabilities Line Item on the balance sheet and are not covered
by bugetary resources.
Accrued Unfunded Workers' Compensation Benefits
(Dollars in Thousands)
| |
FY 2006 |
FY 2005 |
| Liabilities Not Covered by Budgetary Resources |
|
|
| Future Workers' Compensation Benefits |
$23,438 |
$23,726 |
| Accrued Funded Payroll and Leave |
9,207 |
13,964 |
| Unfunded Leave |
– |
– |
| Total Accrued Unfunded Workers' Compensation Benefits |
$32,645 |
$37,690 |
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.
For FY 2006, USAID’s total FECA liability was $32.6
million and comprised of unpaid FECA billings for $9.2 million
and estimated future FECA costs of $23.4 million.
For FY 2005, USAID’s total FECA liability was $37.7
million and comprised of unpaid FECA billings for $14 million
and estimated future FECA costs of $23.7 million.
The actuarial estimate for the FECA unfunded liability is
determined by the Department of Labor using a method that
utilizes historical benefit payment patterns. The projected
annual benefit payments are discounted to present value using
economic assumption for 10-year Treasury notes and bonds and
the amount is further adjusted for inflation. Currently, the
projected number of years of benefit payments is 37 years.
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