Updates to Federal Employees’ Compensation Act (FECA)

1. Updates to Federal Employees’ Compensation Act (FECA) Effective for 2013

2. Federal Employees’ Compensation Act (FECA) • Administered by DOL. • FECA pays Federal civilian employees for certain income and medical costs associated with job related injuries, disease or death. • Federal appropriated agencies generally fund their FECA payments using appropriated funds • Agencies’ annual budget requests should include amount equal to the FECA chargeback costs at the fiscal year beginning in the next calendar year. • Once the appropriation is received, FECA payments are due to DOL within 30 days.

3. Updated FECA Implementation Guide provides: • Budgetary and Proprietary accounting entries and reporting • Both employer agency and DOL entries • Posting logic for appropriation received by employer agency. • Posting logic to record employer agency receipt of quarterly and annual chargebacks from DOL. • Posting logic to record when the employer agencies receive funding.

4. New USSGL Accounts for DOL New accounts proposed for DOL will improve intragovernmental eliminations. • 132100 – Unfunded FECA Benefit Contributions Receivable • 540500 – Unfunded FECA Benefit Revenue • 540600 – Contra Revenue for Unfunded FECA Benefit Revenue

5. To record DOL’s Quarterly Chargeback bill • Employer agency • Dr 685000 Employer • Contributions to Employee • Benefit Prog not Requiring • Cy Budget Authority • Cr 222500 Unfunded FECA • Liability • DOL • DR 132100 Unfunded • Employee Benefit Contribution • Receivable • CR 540500 Unfunded Benefit • Program Revenue

6. Changes to the Existing USSGL accounts for DOL Changes to existing USSGL accounts are also proposed to improve intragovernmental eliminations • 132000 – Funded Employment Benefit Contributions Receivable (title and definitions) • 540000 – Funded Benefit Program Revenue (title and definition) • 540900 - Contra Revenue for Funded Benefit Program Revenue (title and definition)

7. FECA Cycle for Appropriated Agencies Qtrly estimated bill Agency 030 Appropriated Agency Newly established agency in Fiscal year X1 Pool of FECA reimbursements From Agencies Annual chargeback DOL No year Fund Funding DOL FECA Reimbursements Approximately 2 fiscal year FECA Claim payments Agency 030 Injured employees

8. Note: Discrepancies with chargebacks • If an agency finds a discrepancy on a chargeback bill they should contact DOL. Once the difference is verified and confirmed, it will be reflected on the next chargeback bill. • An agency should not make any adjustments since DOL is adjusting the next chargeback. An independent agency correction would result in an error because it would be reflected twice.