July 2000
July 2000
Schedule Awards of Compensation
Schedule awards are a poorly understood compensation benefit provided under the Federal Employees’ Compensation Act. When a condition of permanent impairment of a member of the body arises from an injury in the course of Federal (or Postal) employment, a schedule award is a payment of actual wage compensation for the determined number of weeks for the loss of use or permanent partial impairment of an injured portion of the body.
Schedule awards are paid for all parts of the body that extend from the trunk, including genitalia. The are not paid for injuries to the back, neck, or head unless impairment to a covered member arises, such as arm or leg impairment including paralysis from a back or neck injury. Significant disfigurement to the face may be covered if serious enough to impair one’s prospects for employment. Although basic injuries to the head are not covered, coverage is extended for injuries to the eye, ear, or tongue, as well as actual loss of sensory ability.
Stewards take note that injured letter carriers know little or nothing about schedule award benefits. You should discuss schedule awards with every seriously or permanently injured letter carrier in your bargaining unit. This is especially true when a carrier has received a permanent job offer, because the evidence of record has established that the carrier has reached maximum medical improvement from a work injury.
The responsible parties who are knowledgeable on schedule awards, the OWCP District Office and USPS Injury Control Point, seldom offer information on these benefits to the injured worker.
One could debate the fairness of this situation, but the Act does expect reasonable awareness on the part of the injured worker. Put simply, there is no law against not filing for a schedule award either, so the injured worker needs to be a good customer and learn what his or her rights are.
The NALC can and does play a key role in educating its members, primarily through educating its Stewards and Officers. Once again, Stewards must carry the news to the workroom floor.
Presenting the Claim to OWCP
There are at least three ways to pursue a claim for a schedule award. One way is to simply submit a Form CA-7, checking Box D in Section 2 of the current version of the form (Nov. 1998).
This makes some sense administratively because the CA-7 is the claim form for compensation benefits. A second approach is to write a letter of inquiry, introducing the claimant and the issue and then requesting the assistance of OWCP in helping the claimant and physician in development of the schedule award. This method has been found successful in that most physicians are also not very familiar with schedule award claims, and the written guidance can be very clarifying and helpful. A third possibility would be to submit an introductory letter or Form CA-7 with the physician’s narrative report identifying and fairly rating the actual permanent impairment of the claimant according to established formulas. This method would be ideal, except again that most physicians are not that familiar with how to rate impairment and any omissions could reduce the award significantly.
In most cases the percentage of impairment is determined by the physician in accordance with the American Medical Association's Guides to the Evaluation of Permanent Impairment (4th Edition), and the evaluation on which the award is based must conform to the rules set forth there.
Miscellaneous Provisions and Issues
A schedule award is the only form of wage loss compensation under the FECA which can be paid concurrently with either earned wages or while in receipt of an annuity. A schedule award cannot be paid concurrently with receipt of compensation benefits. If the period of maximum medical improvement is established during a period while the claimant was in receipt of compensation benefits, the schedule award is effectively cancelled for that period of time.
A schedule award is a compensation benefit, and would be applied against any surplus funds remaining after collection of a third party lawsuit..
Often the Office of Workers’ Compensation Programs will agree that a schedule award is proper, but will significantly reduce the percentage of impairment, which dramatically reduces the award. Such actions may be taken by the District Medical Advisor for OWCP, who applies the provisions of the American Medical Association's Guides to the Evaluation of Permanent Impairment. and marks down the percentage of impairment based on available medical evidence. OWCP can also use a second medical opinion from a local physician to rate the impairment. When the award is reduced by OWCP, appeal rights for an Oral Hearing before a hearing representative or Reconsideration at the District Office are options extended to the injured worker. An Oral Hearing is strongly recommended due to the technical nature of the issues involved in appealing a medical determination. Strong medical evidence is vital. A schedule award can easily reach tens of thousands of dollars. The injured worker who will not fully recover deserves this rightful benefit. We can make the difference!
§8107. Compensation schedule
(a) If there is permanent disability involving the loss, or loss of use, of a member or function of the body or involving disfigurement, the employee is entitled to basic compensation for the disability, as provided by the schedule in subsection (c) of this section, at the rate of 66 2/3 percent of his monthly pay.
The basic compensation is--
(1) payable regardless of whether the cause of the disability originates in a part of the body other than that member;
(2) payable regardless of whether the disability also involves another impairment of the body; and
(3) in addition to compensation for temporary total or temporary partial disability.
(b) With respect to any period after payments under subsection (a) of this section have ended, an employee is entitled to compensation as provided by--
(1) section 8105 of this title if the disability is total; or
(2) section 8106 of this title if the disability is partial.
(c) The compensation schedule is as follows:
(1) Arm lost, 312 weeks' compensation.
(2) Leg lost, 288 weeks' compensation.
(3) Hand lost, 244 weeks' compensation.
(4) Foot lost, 205 weeks' compensation.
(5) Eye lost, 160 weeks' compensation.
(6) Thumb lost, 75 weeks' compensation.
(7) First finger lost, 46 weeks' compensation.
(8) Great toe lost, 38 weeks' compensation.
(9) Second finger lost, 30 weeks' compensation.
(10) Third finger lost, 25 weeks' compensation.
(11) Toe other than great toe lost, 16 weeks' compensation.
(12) Fourth finger lost, 15 weeks' compensation.
(13) Loss of hearing--(A) complete loss of hearing of one ear, 52 weeks' compensation; or (B) complete loss of hearing of both ears, 200 weeks' compensation.
(14) Compensation for loss of binocular vision or for loss of 80 percent or more of the vision of an eye is the same as for loss of the eye.
(15) Compensation for loss of more than one phalanx of a digit is the same as for loss of the entire digit. Compensation for loss of the first phalanx is one-half of the compensation for loss of the entire digit.
(16) If, in the case of an arm or a leg, the member is amputated above the wrist or ankle, compensation is the same as for loss of the arm or leg, respectively.
(17) Compensation for loss of use of two or more digits, or one or more phalanges of each of two or more digits, of a hand or foot, is proportioned to the loss of use of the hand or foot occasioned thereby.
(18) Compensation for permanent total loss of use of a member is the same as for loss of the member.
(19) Compensation for permanent partial loss of use of a member may be for proportionate loss of use of the member. The degree of loss of vision or hearing under this schedule is determined without regard to correction.
(20) In case of loss of use of more than one member or parts of more than one member as enumerated by this schedule, the compensation is for loss of use of each member or part thereof, and the awards run consecutively. However, when the injury affects only two or more digits of the same hand or foot, paragraph (17) of this subsection applies, and when partial bilateral loss of hearing is involved, compensation is computed on the loss as affecting both ears.
(21) For serious disfigurement of the face, head, or neck of a character likely to handicap an individual in securing or maintaining employment, proper and equitable compensation not to exceed $3,500 shall be awarded in addition to any other compensation payable under this schedule.
(22) For permanent loss or loss of use of any other important external or internal organ of the body as determined by the Secretary, proper and equitable compensation not to exceed 312 weeks' compensation for each organ so determined shall be paid in addition to any other compensation payable under this schedule.
Disclaimer: The material in these articles is not presumed or intended to reflect an official position of the
National Association of Letter Carriers, of
Branch #1, NALC, or the Michigan State Association of Letter Carriers. These articles contain opinion statements of the writer offered for basic informational purposes only. There is no substitute for consultation with or representation by a trained advocate. The writer cannot assume responsibility of any type for the use of this material by others.
