NTEU, AFGE, NARFE Raise Concerns About Health Care And Workers Compensation Provisions in Postal Bill

Press Release September 9, 2013

Washington, D.C.—Three organizations representing current and retired federal workers—including the National Treasury Employees Union (NTEU)—have called on Congress to reject provisions in pending legislation that would sharply undercut the federal employee health care and workers’ compensation programs.

The groups expressed their deep concerns about provisions in pending postal reform legislation in a letter to members of the Senate Homeland Security and Governmental Affairs Committee.

That legislation, they wrote, would allow the Postal Service “to cherry-pick the largest areas of cost savings from the (Federal Employees Health Benefits Program), which will destabilize the FEHBP and raise costs for federal employees, retirees and their families.”

They pointed out that one section of S. 1486, the Postal Reform Act of 2013 would provide the Postmaster General with “extraordinary authority” to withdraw active postal employees from the FEHBP—approximately 25 percent of FEHBP’s enrollment, adding that “FEHBP keeps costs low by spreading risks among all its participants.”

The groups noted the Office of Personnel Management has estimated that one provision in S. 1486, (Section 105) would increase premiums for employees and retirees remaining covered under FEHBP by two percent across-the-board, and could be as high as 35 percent for some plans.

FEHBP is the nation’s largest employer-sponsored health care program, with more than eight million federal employees, retirees and their families enrolled. In addition to NTEU, the letter was signed by the National Active and Retired Federal Employees Association and the American Federation of Government Employees.

Separately, NTEU President Colleen M. Kelley emphasized the potential impact of increased health care costs on a workforce that already is reeling from a three-year pay freeze, unpaid furlough days and the pressures generated on their agencies by sequestration.

“It would be not only unwise to dilute FEHBP in this way,” she said, “it would be another enormously unfair blow to these dedicated public servants and their families.”

The letter to committee members also took issue with a section of the pending bill which would amend the Federal Employees’ Compensation Act (FECA) to reduce benefits when they reach their Social Security retirement age. At present, an employee injured in the course of his or her duties receives FECA payments equal to 67 or 75 percent of their wages at the time of the injury.

Under the postal reform bill, that payment would be reduced to 50 percent of their former wages. The bill also contains other harmful FECA changes.

“Forcing a worker at retirement age to give up regular FECA benefits earned as a result of an on-the-job injury,” the groups wrote, “would cause grave economic hardship to many disabled workers.” They noted a Government Accountability Office report earlier this year showed these cuts would hurt particularly lower-wage workers and those injured early in their work lives.

“These proposed changes are especially problematic, given that many federal employees have already been driven to the brink by furloughs and wages that have been stagnant for years,” the organizations said. “In addition, the draconian FECA provisions are federal government-wide and have no place in Postal Service reform legislation.”

NTEU is the nation’s largest independent federal union, representing 150,000 employees in 31 agencies and departments.

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