Disability Benefits: Benefit Amounts for Military Personnel and
Civilian Public Safety Officers Vary by Program Provisions and
Individual Circumstances (07-APR-06, GAO-06-4).
Military personnel, as well as civilian public safety officers
(PSO), risk their lives and face the prospect of incurring
disabilities as they protect and defend the general public on a
daily basis. To help assess the appropriateness of disability
benefits available to military personnel, Congress mandated that
GAO study the disability benefits available to federal, state,
and local government employees who serve the public in high-risk
occupations and are injured in the line of duty. In response, GAO
compared the disability benefits available to military personnel
with the disability benefits available to civilian PSOs at the
federal level, and in six states and six cities that were
selected to illustrate the range of benefits provided. This study
focuses on benefits provided to law enforcement officers and
firefighters at the federal level, to state police at the state
level, and to firefighters at the local level. For each program
included in the review, GAO identified the benefits available for
temporary disability, permanent partial disability, and permanent
total disability, and then calculated the lifetime present value
of the benefits provided to various hypothetical individuals in
different circumstances. Cognizant agency officials provided only
technical suggestions, which were incorporated as appropriate.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-4
ACCNO: A51197
TITLE: Disability Benefits: Benefit Amounts for Military
Personnel and Civilian Public Safety Officers Vary by Program
Provisions and Individual Circumstances
DATE: 04/07/2006
SUBJECT: Aid for the disabled
Comparative analysis
Disability benefits
Employees with disabilities
Fire fighters
Military personnel
Persons with disabilities
Police
Public safety
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-06-4
* Injuries to Military Personnel Are More Likely to Qualify as
* Continuation of Pay Provisions for Military Personnel Are Ge
* Military Personnel Have Access to Temporary Disability Retir
* Degree of Impairment Affects Benefits for Permanent Partial
* When Able to Return to Duty, Compensation Benefits for Milit
* When Unable to Return to Duty, Amount of Disability Benefits
* Military Veterans and Civilian PSOs with Total Disabilities
* Military Veterans with Certain Types of Impairments Receive
* Disability Compensation Benefits
* Disability Retirement Benefits
* Continuation of Pay
* Compensation for Service-Connected Disability, Department of
* Federal Employees' Compensation Act
* Social Security Disability Insurance
* Public Safety Officers' Benefits Program, Bureau of Justice
* Workers' Compensation, California
* Workers' Compensation, Florida
* Disability Benefits, State Police, Indiana
* Workers' Compensation, Montana
* Workers' Compensation, New Jersey
* Disability Retirement for Law Enforcement, Texas
* Workers' Compensation, Texas
* Order by Mail or Phone
Report to Congressional Committees
United States Government Accountability Office
GAO
April 2006
DISABILITY BENEFITS
Benefit Amounts for Military Personnel and Civilian Public Safety Officers
Vary by Program Provisions and Individual Circumstances
GAO-06-4
Contents
Letter 1
Results in Brief 4
Background 5
Temporary Disability Program Provisions Offer Certain Advantages for
Military Personnel Compared with Civilian PSOs 10
Permanent Partial Disability Benefits Are Greater over a Lifetime for
Military Personnel or Civilian PSOs, Depending on Individual Circumstances
21
Permanent Total Disability Benefits Are Greater over a Lifetime for
Military Veterans or for Civilian PSOs, Depending on the Type of
Impairment 36
Concluding Observations 47
Agency Comments 48
Appendix I Disability Compensation Benefit Programs 50
Appendix II Disability Retirement Benefits Programs 64
Appendix III Other Disability Benefit Programs 82
Appendix IV Hypothetical Scenarios and Calculation of Lifetime Disability
Benefits-Methods and Results 85
Appendix V Impact of Varying Salary Levels on Monthly Benefit Payments 115
Appendix VI Federal Income Tax Treatment of Disability Benefits 119
Appendix VII Progression of Disability Benefits Following a Line-of-Duty
Injury, by Occupation 122
Appendix VIII Definitions of Total Disability 125
Appendix IX GAO Contacts and Staff Acknowledgments 128
Related GAO Products 129
Tables
Table 1: Continuation of Pay Provisions 13
Table 2: Basic Monthly Compensation Rates for VA Disability in 2005 14
Table 3: Temporary Compensation Payment Formulas and 2005 Payment Caps for
Selected Civilian PSOs 15
Table 4: Time Limits on Temporary Disability Benefits 21
Table 5: Time Limits on Compensation for Permanent Partial Disabilities 24
Table 6: Disability Retirement Benefit Formulas for Military Personnel and
Selected PSOs 26
Table 7: Concurrent Receipt Provisions for Permanent Partial Disabilities
28
Table 8: Post-Retirement Employment and Earnings Restrictions on Receipt
of Disability Retirement Benefits 35
Table 9: Basic Total and SMC Rates for VA Disability in 2005 37
Table 10: Benefits Provided for Tinnitus 89
Table 11: Benefits Provided for a Leg Amputation 92
Table 12: Benefits Provided for Quadriplegia and Other Permanent Total
Disabilities 104
Table 13: Base Annual Starting Salaries by Occupation and Experience
Level, 2000 115
Table 14: Monthly Temporary Compensation Payments Based on Actual versus
Hypothetical Salary Levels 116
Table 15: Monthly Disability Retirement Payments Based on Actual versus
Hypothetical Salary Levels 117
Figures
Figure 1: Progression of Disability Benefits Following a Line-of-Duty
Injury 6
Figure 2: Military and Civilian Temporary Monthly Compensation Benefits in
Two Contrasting Scenarios (2005 Payment Rates) 16
Figure 3: Military and Civilian Temporary Monthly Benefits for 40 Percent
Disability Ratings, including Temporary Disability Retirement Benefits for
Servicemembers (2005 Payment Rates) 19
Figure 4: Comparison of Present Value of Compensation Benefits over a
Lifetime for Tinnitus 31
Figure 5: Comparison of Present Value of Combined Disability Benefits over
a Lifetime for a Leg Amputation 34
Figure 6: Comparison of Present Values of Combined Disability Benefits
over a Lifetime for Quadriplegia and Other Permanent Total Disabilities 45
Abbreviations
AMA American Medical Association
COLA cost-of-living adjustment
DOD Department of Defense
DROP Deferred Retirement Option Plan
FECA Federal Employees' Compensation Act
FERS Federal Employees' Retirement System
GS General Schedule
OWCP Office of Workers' Compensation Programs
PSO public safety officer
SMC special monthly compensation
SSDI Social Security Disability Insurance
VA Department of Veterans Affairs
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
United States Government Accountability Office
Washington, DC 20548
April 7, 2006
Congressional Committees
Since the September 11, 2001, terrorist attacks, the United States has
increased the deployment of military forces in armed conflict and the use
of both military and civilian personnel in national preparedness and
fighting terrorism. As with military personnel on active duty status,
civilian public safety officers (PSO), including law enforcement officers
and firefighters, also risk their lives and face the prospect of incurring
disabilities as they protect and defend the general public on a daily
basis.1 GAO's designation of federal disability programs as a high-risk
area requiring urgent attention and modernization, combined with the
heightened risk of disability for both military personnel and civilian
PSOs, underscores the importance of ensuring that those who serve our
nation and who sustain injuries in the line of duty have fair and
appropriate benefits available to them.2 At the same time, any discussion
of modernizing federal disability programs or changing the benefit
structure for military servicemembers or federal civilian PSOs will take
place within the context of the large fiscal imbalances facing the federal
government.3
As part of an ongoing, multi-faceted effort to assess the appropriateness
of disability benefits available to military personnel, the National
Defense Authorization Act for Fiscal Year 2005 mandated that GAO identify
the disability benefits available to federal, state, and local government
employees who serve the public in high-risk occupations and are injured in
the line of duty.4 In response, this report compares the service-connected
disability benefits provided military personnel with the benefits provided
for line-of-duty injuries to civilian PSOs at the federal, state, and
local level, focusing on the benefits provided for three main categories
of disability: (1) temporary disability, (2) permanent partial disability,
and (3) permanent total disability.
1Provisions in 42 U.S.C. S:3796b(8) define "public safety officers" for
Department of Justice's Public Safety Officers' Benefits Program to
include law enforcement officers (such as police, corrections, probation,
parole, and judicial officers), firefighters, and members of rescue squads
and ambulance crews, among others.
2Military personnel in combat are now surviving injuries that would have
been fatal in past conflicts, but along with this survival has come an
increased rate of disabilities. See GAO, VA Disability Benefits and Health
Care: Providing Certain Services to the Serious Injured Poses Problems,
GAO-05-444T (Washington, D.C.: Mar. 17, 2005).
3In 2003, GAO designated federal disability programs as a high-risk area.
See GAO, High Risk Series: An Update, GAO-05-207 (Washington, D.C.: Jan.
1, 2005), and GAO, 21st Century Challenges: Reexamining the Base of the
Federal Government, GAO-05-325SP (Washington, D.C.: Feb. 1, 2005).
To compare the disability benefits available, we examined the major
programs providing compensation and disability retirement benefits for
military personnel, for civilian PSOs at the federal level, and for
civilian PSOs at the state and local level in six states and six cities.
Active-duty military servicemembers generally have access to disability
benefits under program provisions that apply to all the various services,
and federal PSOs (including federal law enforcement officers and
firefighters) generally have access to disability benefits for this group
of employees under program provisions that apply to all the various
federal agencies. However, disability benefit program provisions vary
widely for state and local PSOs depending on the specific occupation and
location. At the state level, we focused on benefits available to state
police officers (such as highway patrol or state troopers) in a
nonprobability sample of six states. To illustrate the range of benefits
available, we selected these states based on various indicators of benefit
levels5 and geographic diversity. At the local level, we focused on
benefits available to firefighters in six large cities, one within each of
the selected states. The six states and six cities we selected are:
California and Los Angeles; Florida and Miami; Indiana and Indianapolis;
Montana and Billings; New Jersey and Newark; and Texas and Houston. The
programs selected provide examples of a wide range of policies and
practices for determining disability benefits; however, they may not be
representative of the full extent of the variation nationwide.
4Pub. L. No. 108-375 (2004). This law also mandated that DOD conduct a
study comparing the disability benefits for servicemembers with the
disability benefit plans for commercial and other private-sector
employees. In addition, under the National Defense Authorization Act for
Fiscal Year 2004, Congress established the Veterans' Disability Benefits
Commission to study the appropriateness of benefits for servicemembers for
service-connected disability and death.
5These indicators included, for example, the state median monthly Social
Security Disability Insurance (SSDI) benefit, salary levels for state
PSOs, and the amount of cash survivor benefits available to PSOs.
We documented and compared program provisions for compensation and
disability retirement benefits for military personnel, federal PSOs, and
the selected state and local PSOs, relying primarily on statutes,
regulations, and agency guidance and reports. (For descriptions of
disability compensation benefit programs, see app. I. For descriptions of
disability retirement benefit programs, see app. II. For descriptions of
other disability benefit programs, see app. III.) To gain an initial
understanding of how disability programs work, we conducted site visits
with federal program officials at the Department of Defense (DOD),
Department of Veterans Affairs (VA), Department of Labor, and Office of
Personnel Management in Washington, D.C.; and with state and local program
officials in California and New Jersey. We interviewed officials at all
other agencies and locations by phone.
To demonstrate the effect of different types of injuries and other
individual characteristics on the provision of benefits under each
program, we constructed hypothetical scenarios for military personnel and
the selected civilian PSOs at different ages, lengths of service, and
salary levels. (For more detailed descriptions of these hypothetical
scenarios, see app. IV.) We requested cognizant agency staff to review our
characterization of program provisions and calculation of hypothetical
benefit amounts to ensure the validity of our information. To compare
different types of benefits, such as lump-sum and monthly payments, we
calculated the present value of the lifetime disability benefits
available, including disability compensation and disability retirement
benefits, for each of our hypothetical scenarios. (See app. IV for a more
detailed discussion of our methods for calculating present values.)
Our analysis focused on cash disability benefits that include government
contributions rather than on other benefits and services such as medical
care and vocational rehabilitation services, or benefits that are solely
employee- or privately-funded. We did not include benefits from programs
in which employees may or may not choose to participate and that provide
variable benefits depending on how much an employee chooses to contribute
(such as life insurance plans, savings plans, and alternative retirement
options).6 In addition, our analysis focused on the differences in how
benefits are calculated given equal salaries, rather than on the
differences in salary levels across locations for comparable jobs and
years of service or on the differences in administrative processes for
obtaining benefits. (For a more detailed discussion of the difference in
benefit calculations based on the hypothetical salary levels compared with
actual salary levels, see app. V.) We conducted our research from March
2005 to November 2005 in accordance with generally accepted government
auditing standards.
6As a result, our analysis excludes, for example, the potential benefits
received from the Traumatic Servicemembers Group Life Insurance Program,
enacted in May 2005.
Results in Brief
During the initial period of treatment, recovery, and evaluation, program
provisions for temporary disability benefits offer certain advantages for
military personnel compared with provisions for the civilian PSOs we
reviewed. For example, whenever an active-duty servicemember incurs an
injury or becomes ill and is found unfit for duty, the injury or illness
almost always qualifies as line-of-duty, enabling the servicemember to
receive compensation benefits. The injury can occur at any time, 24 hours
a day, 7 days a week. The coverage for civilian PSOs we reviewed is not
considered around-the-clock in this way. To be considered a line-of-duty
injury eligible for compensation, usually the injury must occur during
working hours when the PSO is performing assigned duties. In addition, the
military generally has more flexibility in its provision of 100 percent
salary replacement (referred to as continuation of pay) than do most of
the civilian programs we reviewed, because unlike the provisions for PSOs,
the time limit on this benefit for servicemembers is not fixed in law. In
addition, servicemembers can have temporary access to disability
retirement benefits as well as VA compensation benefits for up to 5 years
in some cases. In contrast, on the civilian side, federal PSOs and the
selected state and local PSOs we reviewed generally have access only to
temporary compensation payments, not disability retirement, during this
phase of benefit receipt.
When a partial disability incurred in the line of duty is determined to be
permanent, the timing and amount of benefits provided over a lifetime
varies, depending on the individual's circumstances. In most cases of
permanent partial disability, servicemembers and civilian PSOs are
eligible to receive compensation benefits, and in some cases, they also
may be eligible to receive disability retirement benefits, but the
criteria for benefit receipt and amount of benefits provided vary across
programs. In some circumstances, when a permanent partial disability still
allows a return to duty, the civilian PSOs we reviewed generally can
receive compensation benefits immediately in addition to their salaries,
whereas military personnel cannot receive compensation benefits until they
are released from service through separation or retirement. Nevertheless,
because the compensation benefits for permanent partial disabilities for
the selected PSOs are generally time-limited, whereas compensation
benefits for military veterans are for the remainder of life, the present
value of the compensation benefits available over a lifetime for veterans
can be substantially greater than the present value of benefits available
for the PSOs. In other circumstances, when a permanent partial disability
prevents a return to duty, disability retirement benefits are often
provided in addition to compensation benefits. We found that the present
value of the combined compensation and disability retirement benefits
available over a lifetime for veterans is sometimes higher and sometimes
lower than the combined benefits available for the civilian PSOs we
reviewed, depending on the specific provisions for calculating benefits
and for the concurrent receipt of both types of benefits. In addition, if
the individual is able to work at another job, the military and several
disability retirement programs we reviewed require post-injury employment
to be under a different retirement system, but most programs do not place
any limits on the amount of post-retirement earnings.
When the disability incurred in the line of duty is severe enough to be
determined to be permanent and total, the amount of benefits provided over
a lifetime is greater for military veterans in some cases, and for
civilian PSOs in others, depending on the specific program provisions and
the type of impairment. In cases of permanent total disability, military
veterans and civilian PSOs have access to a range of benefits that are
enhanced compared with those available for permanent partial disability.
These may include enhanced compensation and disability retirement
benefits, a special lump-sum benefit available only to civilian PSOs, or
additional benefits such as Social Security Disability Insurance (SSDI).
Benefits received over a lifetime for permanent total disability are
greater for military veterans than for the selected civilian PSOs in some
situations and not in others, depending on such factors as the program's
provisions for concurrent receipt of compensation and disability
retirement benefits, and whether the veteran's type of injury qualifies
for special compensation.
Cognizant agencies reviewed a draft of this report and provided only
technical suggestions which were incorporated as appropriate.
Background
Government-provided disability benefits for military personnel and
civilian PSOs generally fall into two broad categories: disability
compensation benefits and disability retirement benefits. (See fig. 1.)
o Disability compensation. Under workers' compensation and
veterans' compensation programs, benefits typically include
medical treatment for the injury, vocational rehabilitation
services, and a cash payment to replace a percentage of the
individual's loss in wages while injured and unable to work.
Disability compensation benefits are exempt from federal income
tax.
o Disability retirement. Disability retirement programs typically
provide benefits that allow qualified individuals who are unable
to return to work to retire earlier and/or to retire with a higher
percentage of their pre-injury salary level than would otherwise
be permitted with normal retirement based on age and length of
service at the time of injury. Disability retirement benefits
generally are not exempt from federal income tax, but there are
exceptions. (For details, see app. VI.)
Figure 1: Progression of Disability Benefits Following a Line-of-Duty
Injury
Note: For a more comprehensive summary of disability benefits available,
by occupation, see app. VII.
When an individual is eligible to receive both disability compensation and
disability retirement benefits, programs sometimes place limits on the
combined amount of benefits received. Some programs do not allow both
types of benefits to be received concurrently, instead requiring the
individual to choose which one to receive. Other programs may allow both
types of benefits to be received, but they reduce (offset) either all or a
portion of one of the benefits.7
For military personnel who incur a service-related disability, VA provides
service-connected disability compensation benefits and DOD provides
disability severance or retirement benefits, depending on level of
disability and length of service. Military personnel found unfit for duty
are evaluated and assigned disability ratings ranging from 0 to 100
percent, in 10 percentage-point increments. Those who have a disability
rated at 20 percent or less and who have served at least 6 months, but
less than 20 years, may be entitled to a lump-sum disability payment
(disability severance). Those who have a disability rated 30 percent or
more, or who have served 20 years or more, may be entitled to disability
retirement. Once released from service through separation or retirement,
military veterans can receive monthly VA compensation payments based on
their disability rating, with added amounts for particularly severe
injuries (referred to as special monthly compensation). In fiscal year
2004, VA provided about $20.6 billion in cash disability compensation
benefits to more than 2.5 million veterans and their dependents, and DOD
spent $1.25 billion on disability retirement benefits for approximately
93,000 recipients.
When military personnel are eligible for both VA compensation and DOD
disability retirement benefits, in most cases, the retirement benefit is
offset dollar-for-dollar by the amount of the compensation benefit.8
Exceptions to this offset are provided for those who are eligible for
normal retirement based on 20 years or more of service and who have either
a disability rating of 50 percent or more, or combat-related
disabilities.9 Military personnel with 20 years or more of service and
with a disability rating of 50 percent or more can qualify for Concurrent
Retirement and Disability Payments. Under this program, the offset is
being phased out over a 10-year period that began on January 1, 2004;
thus, by January 1, 2014, veterans who qualify will be able to receive the
full amount of their VA compensation and DOD disability retirement
benefits concurrently with no offset. Alternatively, military personnel
with 20 years or more of service and with combat-related disabilities can
qualify for Combat-Related Special Compensation. Under this program, which
became effective in May 2003, a special tax-exempt benefit is provided
equal to the amount of the offset.10
7Previously, we reported that while the specific rationales for offset
provisions vary, they generally focus on restoring equity and fairness by
treating beneficiaries of more than one program in a similar manner as
beneficiaries who qualify for benefits under only one of the programs. See
GAO, Military and Veterans' Benefits: Observations on the Concurrent
Receipt of Military Retirement and VA Disability Compensation, GAO-03-575T
(Washington, D.C.: Mar. 27, 2003).
8When eligible for both VA compensation and DOD disability severance
benefits (as opposed to retirement benefits), the compensation benefit is
offset.
On the civilian side, federal PSOs receive workers' compensation benefits
under the Federal Employees' Compensation Act (FECA), and those with at
least 18 months of service may be eligible for disability retirement
benefits under the Federal Employees' Retirement System (FERS).11 Benefits
are generally the same as for all other civilian employees of the federal
government, except that federal law enforcement officers and firefighters
belong to a special group of employees who can take normal retirement at
an earlier age and have their retirement benefits calculated
differently.12
At the state and local level, all 50 states and the District of Columbia
have workers' compensation statutes that cover virtually all industrial
employees, and in many states this coverage is extended to public
employees such as PSOs. Moreover, nearly all employees in state and local
governments participate in employment-based retirement plans that
generally include provisions for disability retirement. Among the PSOs
included in our study, we found that disability compensation benefits were
provided under the states' workers' compensation programs in all but one
state: Indiana.13 We also found that the provisions that govern workers'
compensation benefits for PSOs at the state level are, in general, the
same as those at the local level. In addition, among the state and local
governments we reviewed, all provide some type of disability retirement
benefits to qualified PSOs injured in the line of duty if the injury
prevents a return to work.
9Combat-related disabilities are defined as disabilities incurred as a
direct result of armed conflict, while engaged in hazardous service, while
performing duty simulating war, or through an instrumentality of war.
10According to DOD records, about 1,170 (about 1.3 percent) of those
receiving disability retirement were receiving special compensation for
combat-related disabilities at the end of fiscal year 2004, following the
first year of the program's implementation.
11FERS generally covers all federal employees hired after January 1, 1984.
Those hired before 1984 still may be covered by the Civil Service
Retirement System; however, that system has been closed to new members
since FERS was implemented in 1984.
12Federal law enforcement officers and firefighters can take normal
retirement at age 50. The minimum retirement age for other federal
employees is between the ages of 55 and 57, depending on the employee's
year of birth. For details on benefit calculations, see app. II, federal
PSOs.
At all levels of government, compensation and disability retirement
programs often provide added benefits in cases of permanent total
disability. Among the programs included in our study, most define
permanent total disability as a disability that prevents an individual
from engaging in any substantial gainful activity.14 VA defines total
disability as a disability rated at 100 percent;15 however, a total
disability rating may also be assigned when a veteran is unable to secure
or follow a substantially gainful occupation as a result of
service-connected disabilities.16 Of the veterans being compensated at the
100 percent disability level in 2004, just under half qualified on the
basis of individual unemployability.
In addition, other agencies and organizations may provide other cash
benefits in cases of permanent total disability. For example, military
personnel and civilian PSOs who participate in the Social Security system
may be eligible to receive SSDI benefits. Also, the Department of Justice
administers a Public Safety Officers' Benefits Program that provides a
lump-sum benefit to civilian PSOs at the federal, state, and local level
when totally incapacitated in the line of duty. In fiscal year 2005, this
lump-sum benefit was set at $275,658.
13In Indiana, state statutes allow some public employers to opt out of the
state's workers' compensation program, and we found that both the Indiana
State Police and the Indianapolis Fire Department had opted to provide
disability benefits only from their pension funds.
14See app. VIII for the various definitions of permanent total disability
used across programs.
15California's workers' compensation program also defines total disability
as a disability rated at 100 percent, but adjusts its disability ratings
to account for diminished future earning capacity. California's rating
guide states that permanent total disability is a level of disability at
which an employee has sustained a total loss of earning capacity.
16In addition, current law specifies that benefit levels are to be based
on disability ratings that reflect the average loss of earning capacity
for the particular injury. However, we have noted in prior reports that
the labor market information used in determining these benefits has not
been updated since 1945. See GAO, VA Benefits: Fundamental Changes to VA's
Disability Criteria Need Careful Consideration, GAO-03-1172T (Washington,
D.C.: Sept. 23, 2003).
Temporary Disability Program Provisions Offer Certain Advantages for Military
Personnel Compared with Civilian PSOs
During the initial period of treatment, recovery, and evaluation following
a line-of-duty injury, temporary disability benefit provisions for
military personnel offer certain advantages compared with provisions for
the civilian PSOs we reviewed. When a military servicemember or civilian
PSO is injured, the first and most immediate concern is to ensure that
appropriate medical treatment is provided. If the servicemember or PSO is
unable to return to duty, however, another concern soon follows: ensuring
that lost wages are replaced during the period of treatment, recovery, and
evaluation. All programs reviewed provide benefits to replace a portion of
lost wages for individuals injured in the line of duty up until the time
the injury is determined to be permanent and/or the individual can return
to duty. However, compared with program provisions following a
line-of-duty injury to a civilian PSO, injuries to servicemembers are more
likely to qualify as line-of-duty injuries; continuation of pay provisions
for servicemembers are generally more flexible; and, unlike civilian PSOs,
servicemembers can have access to temporary disability retirement benefits
in some cases.
Injuries to Military Personnel Are More Likely to Qualify as Line-of-Duty
Injuries
In the military, whenever an active-duty servicemember incurs an injury or
becomes ill and is found unfit for duty, it is almost always considered a
line-of-duty injury that would enable the servicemember to receive
service-connected disability benefits. The injury or illness can occur at
any time, 24 hour a day, 7 days a week, and does not have to occur while
the servicemember is engaged in a duty-related activity. A pre-existing
injury or illness also can be covered if it becomes aggravated during
service.17 Even a non-line-of-duty injury that is similar to the
line-of-duty injury may be included in the determination of the disability
level in some cases.18 For the most part, the only exceptions to coverage
are when the injury or disease is a result of the servicemember's own
willful misconduct or abuse of alcohol or drugs,19 or if the servicemember
received a dishonorable discharge from the military for the period of
service giving rise to the injury. Moreover, federal statutes and related
regulations governing VA compensation benefits specify that many chronic
diseases and other conditions are presumed to be caused by military
service once the servicemember has served for 90 days. These presumptive
conditions include, for example, arteriosclerosis, diabetes mellitus,
epilepsy, leukemia, multiple sclerosis, and tuberculosis, among others.20
17VA provides disability compensation for pre-existing injuries aggravated
during service with no length of service requirement. Also, DOD can
provide disability retirement benefits for a pre-existing condition, but
only after the servicemember has completed 8 years or more of active
service.
18For example, if a servicemember sustains deafness in one ear as a result
of service-connected disability and deafness in the other ear from a
non-line of duty injury, VA may combine both injuries to obtain a total
level of compensable disability.
Federal PSOs' coverage for injuries and illness is not considered
line-of-duty around-the-clock as in the military. Usually the injury or
illness must occur during working hours when the PSO is performing
assigned duties or engaging in an activity that is reasonably associated
with employment. In addition, there are no presumptive conditions
specified. All claims must establish a link between the injury or illness
and employment. But similar to the provisions for servicemembers, federal
PSOs are provided line-of-duty disability benefits for any pre-existing
injury or disease that is aggravated, accelerated, or precipitated by
employment, and similar exceptions to coverage apply if the injury is
caused by willful misconduct, intoxication, or the employee's intention to
harm himself or others.
The selected state and local PSOs have similar coverage-and exceptions to
coverage-as described above for federal PSOs. Provisions governing
line-of-duty disability benefits for PSOs typically specify that any
injury or disease arising out of employment is covered. Unlike at the
federal level, however, some states have established some illnesses as
presumptive conditions for PSOs. We found this to be the case in
California, Florida, and New Jersey.21
19However, military officials noted that the effects of drug abuse can be
compensable if the servicemember develops human immunodeficiency virus
(HIV) or acquired immunodeficiency syndrome (AIDS) from such use.
20If exposed to radiation, presumptive conditions can include certain
cancers. Additional presumptions also are provided, depending on the years
and location of service.
21See app. I for more detailed descriptions of these states' provisions.
Continuation of Pay Provisions for Military Personnel Are Generally More
Flexible
Following a line-of-duty injury, the military's provisions for allowing
servicemembers to continue to receive their full pre-injury salary,
whether or not they are able to return to duty, are generally more
flexible than the policies for the civilian PSOs we reviewed. In the
military, and across all the selected civilian PSO programs, agency
officials indicated that in most cases, they encourage individuals to
return to work during the period of treatment, recovery, and evaluation to
the extent their medical conditions allow; and that even if the individual
is only able to work in a light-duty capacity, the full pre-injury salary
is still provided. Moreover, the full pre-injury salary generally
continues to be provided for a period of time, even if the individual
cannot return to duty, through explicit continuation of pay policies or
special sick leave allocations. The length of time this benefit is
provided varies, but, in general, we found the military's continuation of
pay policy to be more flexible than most of the civilian programs we
reviewed.
The military will replace 100 percent of the servicemember's salary until
the individual either returns to duty or is released from service through
separation or retirement. DOD instructions call for cases to be referred
for evaluation no later than 1 year following injury, but this time frame
may be extended in some cases. For example, DOD officials told us that
extensions may be provided when there is an indication the servicemember
may be able to return to duty within a foreseeable amount of time. They
also noted that continuation of pay is extended to cover the time between
evaluation and final disposition, which can take up to 90 days.
Federal PSOs and most state and local PSOs we reviewed all have some type
of continuation of pay provisions, either explicitly or through special
sick leave allocations, but the length of time this benefit is provided
varies widely. For example, federal PSOs have continuation of pay for up
to 45 days in cases of traumatic injury. Among the state and local
programs with these provisions, some have a 1-year time limit, but others
range from 90 days to 2 years. (See table 1.) In most cases, these time
limits are set in state statutes, and as a result, are less flexible than
in the military; however, we found that some programs were willing to make
extensions. For example, according to a Montana Highway Patrol official,
although continuation of pay generally is provided for up to 1 year, in
one recent case it was provided for 2 years before it was determined that
the officer would not be able to return to duty.
Table 1: Continuation of Pay Provisions
Availability of continuation of pay (100%
salary replacement) for line-of-duty
Occupation injuries
Military personnel Yes: Until return to duty or release from
service.
Federal PSOs Yes: 45 days maximum (for traumatic
injury only).a
Selected state and local PSOs
o California Highway Patrol Yes: 1 year maximum for state Highway
and Los Angeles Firefighters Patrol and for Los Angeles Firefighters.
o Florida Highway Patrol and Yes: 2 year maximum for State Police;b
Miami Firefighters 210 days maximum for Miami Firefighters.
o Indiana State Police and No, but 365 days per year of sick leave
Indianapolis Firefighters provided for State Police; 90 days per
year for Indianapolis Firefighters, and
can be extended.a
o Montana Highway Patrol and Yes: Generally 1 year and can be extended
Billings Firefighters for state Highway Patrol and Billings
Firefighters.
o New Jersey State Police No, but State Police and Newark
and Newark Firefighters Firefighters may take up to a year of
sick leave, with extensions in some
cases.
o Texas State Troopers and Yes: 1 year maximum for State Troopers;c
Houston Firefighters also 1 year for Houston Firefighters,
with possible extensions up to 2 years.
Source: GAO analysis of state statutes and policies, and interviews with
cognizant agency officials.
aThese leave allocations for federal PSOs, Indiana State Police, and
Indianapolis Firefighters are in addition to normally accrued sick leave.
bFor Florida Highway Patrol and Miami Firefighters to qualify for these
benefits, the injury must be a "malicious injury caused by another
person." According to agency officials, this requirement is interpreted
very broadly.
cThe Texas statute providing continuation of pay for law enforcement
officers became effective June 17, 2005.
Military Personnel Have Access to Temporary Disability Retirement Benefits in
Some Cases
When an individual's ability to return to duty is still uncertain after a
period of continuation of pay or sick leave expires, some types of
prolonged temporary benefits often are provided. In the military, a
servicemember can be temporarily released from service and have access to
temporary disability retirement benefits for up to 5 years, as well as
disability compensation benefits, in some cases. In contrast, the civilian
PSOs included in our study generally have access only to temporary
disability compensation benefits, not disability retirement. The different
way compensation benefits are calculated, combined with the availability
of temporary disability retirement benefits, results in higher monthly
payments for servicemembers in some cases, and lower monthly payments in
others, when compared with the benefits provided selected civilian PSOs.
Specifically, we found that the monthly payments for servicemembers with
either higher disability ratings or with 20 years or more of service are
generally higher than the monthly payments for the selected PSOs in
similar circumstances, while the monthly payments for servicemembers with
either lower disability ratings or less than 20 years or service are
generally lower. However, the length of time temporary benefits can be
provided varies widely across programs.
The basis for calculating compensation benefits for military personnel is
different from that used for calculating civilian compensation benefits.
Servicemembers are provided VA service-connected disability compensation
benefits determined on the basis of the degree of injury, not salary
level. VA evaluates the level of injury and assigns a disability rating
ranging from 0 to 100 percent, in 10 percentage point increments, and each
rating level corresponds to a fixed monthly payment amount, adjusted
annually.22 (See table 2.) Additional benefits are provided for each
dependent if the disability is rated 30 percent or more; for certain types
of severe injuries such as the loss of use of a limb or sensory organ; and
for various special circumstances such as the need for attendant care,
inability to maintain gainful employment, having a spouse with a
disability, or having a child age 18 or older attending school. In
addition, VA can reassess a veteran's condition over time and may increase
or decrease the disability rating as health deteriorates or improves.23
Table 2: Basic Monthly Compensation Rates for VA Disability in 2005
Disability rating Monthly payment Disability rating Monthly payment
10% $108 60% $839
20% $210 70% $1,056
30% $324 80% $1,227
40% $466 90% $1,380
50% $663 100% $2,299
Source: Department of Veterans Affairs.
On the civilian side, federal PSOs receive temporary disability
compensation benefits under FECA, and state and local PSOs generally
receive temporary disability compensation benefits under state workers'
compensation statutes, with payments determined on the basis of a
percentage of pre-injury salary up to a set maximum. Among the state and
local PSOs included in our study, we found that all are provided workers'
compensation benefits, with payments based on a percentage of their salary
up to a cap, except in Indiana. (See table 3.) As noted earlier, in
Indiana, both the Indiana State Police and the Indianapolis Fire
Department have opted to provide disability benefits only from their
pension funds.
22A cost-of-living adjustment (COLA) is not guaranteed, but Congress has
historically passed annual COLAs based on a percentage equal to the Social
Security increase.
23Re-examinations are required when it is likely a disability will improve
over time, or when there is evidence of an error or a material change in a
disability.
Table 3: Temporary Compensation Payment Formulas and 2005 Payment Caps for
Selected Civilian PSOs
Compensation payment
formula for temporary total Maximum monthly
Occupation disability payment cap in 2005
Federal PSOsa Employee's average weekly $6,473 per month
wage times 66-2/3%, without without dependents;
dependents; 75% with $7,283 per month with
dependents. dependents.
Selected state and local
PSOsb
o California Highway Maximum allowable average $3,460 per month.
Patrol and Los weekly earnings times
Angeles Firefighters 66-2/3%.
o Florida Highway Employee's average weekly $3,033 per month for
Patrol and Miami wage times 66-2/3% in most the first 6
Firefighters cases. months;$2,821 per
month thereafter.
o Montana Highway Employee's average weekly $2,253 per month.
Patrol and Billings wage times 66-2/3%.
Firefighters
o New Jersey State Employee's average weekly $2,886 per month.
Police and Newark wage times 70%, or the
Firefighters statewide average weekly
wage times 75%, whichever
is less.
o Texas State Employee's average weekly $2,336 per month.
Troopers and Houston earnings times 70%.
Firefighters
Source: GAO analysis of state statutes and policies.
aPayment caps for federal PSOs are based on the pay level for a General
Schedule (GS)-15, step 10, position, which was $116,517 per year ($9,710
per month) in 2005.
bFor all of the selected state and local PSOs that have access to
temporary disability compensation benefits, payment caps are based on a
percentage of the state's average weekly wage.
Thus, if an individual is temporarily unable to work due to a line-of-duty
injury or illness, compensation payments for servicemembers are based on
the disability rating, regardless of salary level; in contrast,
compensation payments for the selected civilian PSOs are based on salary
level, regardless of disability level. As a result, as illustrated in
figure 2, if an individual has more severe injuries and lower wages, VA
compensation payments are generally higher than the PSOs' compensation
benefits. But if an individual has less severe injuries and higher wages,
VA compensation payments are generally lower than the PSO's compensation
benefits.
Figure 2: Military and Civilian Temporary Monthly Compensation Benefits in
Two Contrasting Scenarios (2005 Payment Rates)
Note: Calculations are based on the assumption that the individual is
temporarily unable to return to duty due to a line-of-duty injury or
illness. In such circumstances, payments for the selected PSOs are based
on a percentage of salary regardless of disability rating.
aIndiana State Police and Indianapolis Firefighters are not included in
the figure because they are not provided prolonged temporary compensation
benefits following the period of special sick leave allocation.
bCalifornia state statutes call for PSOs to have their benefits calculated
based on the maximum allowable average weekly wage, regardless of actual
earnings.
cFlorida payment amounts shown here are based on the higher benefit rate
allowed for the first 6 months. (After 6 months, the benefit levels would
drop to $1,111 for the individual earning $20,000, and to $2,821 for the
individuals earning $60,000 and $85,000.)
dPayment amount is based on a cap.
However, unlike the civilian PSOs included in our study, military
personnel whose ability to return to duty remains uncertain after the
period of continuation of pay expires also may have access to DOD
temporary disability retirement benefits. As with permanent disability
retirement payments, servicemembers are eligible to receive temporary
disability retirement payments if they are found unfit for duty and they
have either (1) a disability rating of 30 percent or more, or (2) 20 years
or more of service. Those who qualify may elect to have their temporary
disability retirement payments calculated based on:
o basic pay times 50 percent,
o basic pay times the percentage of disability, or
o basic pay times 2.5 percent times years of service.24
Regardless of which calculation method is used, the maximum
temporary disability retirement payment that can be received is 75
percent of basic pay.
When servicemembers are eligible to receive VA compensation
benefits and DOD disability retirement benefits at the same time,
the amount of the retirement payment is reduced (offset)
dollar-for-dollar by the amount of the VA compensation payment,
unless they have at least 20 years of service and can qualify for
an exception to this offset due to a disability rating of 50
percent or more, or combat-related disabilities. (See earlier
background section for further details.) Nevertheless, the added
increment available from disability retirement, even with
applicable offsets, can increase servicemembers' monthly benefits
significantly. As illustrated in figure 3, if a servicemember with
a 40 percent disability rating has an annual salary of $60,000 and
12 years of service, including the increment for temporary
disability retirement boosts the temporary monthly payment above
that of some of the comparable civilian PSOs included in our
study. With an annual salary of $85,000 and 32 years of service,
the increment boosts the monthly payment above that of all the
comparable PSOs.
24For those who entered military service on or after September 8, 1980,
basic pay is the average of the highest 3 years of basic pay. For reserve
component members, it is the average of the last 36 months of basic pay as
though the member were on full-time active duty. Basic pay does not
include subsistence and housing allowances that often comprise a
significant portion of a servicemember's total pay.
Figure 3: Military and Civilian Temporary Monthly Benefits for 40 Percent
Disability Ratings, including Temporary Disability Retirement Benefits for
Servicemembers (2005 Payment Rates)
Note: Calculations are based on the assumption that the individual is
temporarily unable to return to duty due to a line-of-duty injury or
illness. In such circumstances, payments for the selected PSOs are based
on a percentage of salary regardless of disability rating.
aIndiana State Police and Indianapolis Firefighters are not included in
the figure because they are not provided prolonged temporary compensation
benefits following the period of special sick leave allocation.
bCalifornia state statutes call for PSOs to have their benefits calculated
based on the maximum allowable average weekly wage, regardless of actual
earnings.
cFlorida payment amounts shown here are based on the higher benefit rate
allowed for the first 6 months. (After 6 months, the benefit levels would
drop to $1,111 for the individual earning $20,000, and to $2,821 for the
individuals earning $60,000 and $85,000.)
dPayment amount is based on a cap.
eDisabilities are assumed not to be combat related; thus, there is no
exception to the offset.
As was the case with continuation of pay, provisions regarding the length
of time that temporary disability payments are provided while an
individual's condition remains uncertain also vary widely across programs.
Military servicemembers may receive these payments for up to 5 years after
the period of continuation of pay expires.25 At the federal level, PSOs
may receive compensation payments indefinitely, as long as they are unable
to work. At the state and local level, if the injured PSO's condition is
still uncertain following the period of continuation of pay or use of sick
leave, temporary compensation payments are generally provided only up to a
set time limit, even if the ability to return to duty remains unclear.
Among the state and local programs we reviewed, these time limits ranged
from 104 weeks (2 years) to 400 weeks (7.7 years) (see table 4).26 Only in
Montana did officials indicate that temporary compensation benefits would
be provided indefinitely until maximum medical improvement was achieved,
similar to the benefits for federal PSOs.
25During temporary disability retirement, the servicemember is treated the
same as a regular retiree, and as such, no longer has access to certain
benefits, such as subsistence and housing allowances.
26In some programs, the clock on these temporary disability payments
starts following the end of continuation of pay (such as the programs for
federal PSOs and California Highway Patrol). In other programs, these
payments are made simultaneous to continuation of pay, with the employer
recouping the payments from employees to help defray some of the cost of
providing the employee with continuation of pay while injured employees
are not working (such as the programs for Florida and Montana Highway
Patrol). In these programs, injured employees could only continue to
receive temporary compensation payments for the amount of time left after
the period of continuation of pay expires.
Table 4: Time Limits on Temporary Disability Benefits
Length of time disability benefits may be
provided following the period of
Occupation continuation of pay or sick leave
Military personnel Up to 5 years, if disability is rated 30%
or more, or if 20 years or more of
service; also eligible to receive VA
compensation benefits during this time,
with applicable offsets.
Federal PSOs Indefinitely, as long as the individual
experiences wage loss or is unable to
work.a
Selected state and local PSOs
o California Highway Patrol Up to 104 weeks (2 years) in most cases,
and Los Angeles Firefighters following the period of continuation of
pay.b
o Florida Highway Patrol Up to 2 years.c
and Miami Firefighters
o Indiana State Police and Not applicable. (No temporary compensation
Indianapolis Firefighters benefits are provided following the period
of special sick leave allocation.)
o Montana Highway Patrol Indefinitely, until maximum medical
and Billings Firefighters improvement is achieved.c
o New Jersey State Police Up to 400 weeks (7.7 years).
and Newark Firefighters
o Texas State Troopers and Up to 104 weeks (2 years) following
Houston Firefighters continuation of pay.
Source: GAO analysis of state statutes and policies.
aFor federal PSOs to qualify indefinitely, the individual must be unable
to work at any job, not just the previous position held pre-injury.
bIn California, benefits can be extended for up to a total of 240 weeks
over 5 years for certain disabilities, such as hepatitis, amputations,
severe burns, HIV, high velocity eye injuries, chemical burns to the eyes,
pulmonary fibrosis, and chronic lung disease.
cIn Florida and Montana, these benefits run concurrently with continuation
of pay.
Permanent Partial Disability Benefits Are Greater over a Lifetime for Military
Personnel or Civilian PSOs, Depending on Individual Circumstances
Once a line-of-duty injury is determined to be permanent, program
provisions governing the benefits available for partial disabilities
sometimes result in greater benefits for military personnel, and at other
times result in greater benefits for the civilian PSOs we reviewed,
depending on an individual's circumstances. Key factors affecting the
amount of benefits provided over a lifetime include the type and degree of
impairment, and whether the impairment prevents the individual from
returning to duty. In most cases of line-of-duty permanent partial
disability, servicemembers and civilian PSOs can receive disability
compensation benefits. If unable to return to duty, they may also be
eligible to receive disability retirement benefits. However, we found the
criteria for benefit receipt, the way benefits are calculated, and the
combined amount of benefits provided over a lifetime vary widely across
programs for individuals with the same age, years of service, and salary
level.
Degree of Impairment Affects Benefits for Permanent Partial Disabilities in
Different Ways across Programs
For both military personnel and the selected civilian PSOs, the type and
degree of impairment are key factors in determining the amount of
compensation benefits for permanent partial disabilities. In addition,
whether the type and degree of impairment prevents an individual from
returning to duty is the key factor in determining eligibility for
disability retirement benefits. But the specifics of how benefits are
calculated vary considerably across programs.
Disability compensation benefits for permanent partial disability
Compensation benefits for permanent partial disability are based on the
type and degree of impairment for both military personnel and for civilian
PSOs. However, the way the impairment level is factored into the
calculation of benefits for military personnel differs significantly from
the way it is factored into the calculation of benefits for the civilian
PSOs we reviewed.
For military personnel with permanent partial disabilities, the degree of
impairment determines the monthly VA compensation payment amount, the same
as described earlier for temporary VA compensation benefits. These
compensation payments for permanent disabilities are provided only after
the servicemember has been released from service through separation or
retirement. But the payments are provided for the remainder of life,
adjusted annually, as long as the impairment persists.
Civilian PSOs with permanent partial disabilities also receive
compensation based on the degree of impairment (sometimes referred to as
an impairment or schedule award). In contrast with military personnel,
however, the degree of impairment does not affect the amount of the
recurring compensation payments, but rather the length of time the
payments are provided. The amount of the monthly payment is generally
based on a percentage of the pre-injury salary up to a cap and, among the
programs we reviewed, is generally the same as the monthly payment
provided for temporary compensation. The payments for permanent
disabilities are provided immediately, once the disability is determined
to be permanent, regardless of whether or not the individual returns to
duty. But the length of time payments are provided varies widely,
depending on degree of impairment. A relatively minor impairment may
result in benefits for a few weeks, while a more severe impairment may
result in benefits for several years. In addition, some programs provide
wage loss benefits based on a percentage of the difference between
pre-injury and post-injury salary levels.27
In general, civilian workers' compensation programs use one of two basic
methods to determine the length of time to provide compensation benefits
for permanent partial disabilities. The first method relies on a schedule
of weeks that benefits are to be paid for specific types of impairments.
This is the method used for federal PSOs. The second method uses one or
more of the following factors to determine a disability rating: (1) the
physical or psychological impairment, (2) an estimate of future wage loss,
and/ or (3) actual wage loss. In assessing the physical or psychological
impairment, many state workers' compensation programs require physicians
to use the American Medical Association (AMA) Guides to the Evaluation of
Permanent Impairment, while other states have developed guides unique to
their states. An initial impairment rating based on the AMA Guides or its
equivalent is then used, either directly or indirectly, to determine the
disability rating that is correlated with a specific length of time
compensation benefits will be provided. This is the method generally used
by the selected state workers' compensation programs included in our
study. Table 5 describes the maximum length of time compensation payments
can be provided for permanent partial impairments among the programs we
reviewed.
27VA does not provide wage loss benefits per se; however, veterans with
disability ratings of 60 percent or more who are unable to secure
employment due to their service-connected disabilities may be eligible to
receive additional compensation at the 100 percent disability rate
(referred to as Individual Unemployability benefits).
Table 5: Time Limits on Compensation for Permanent Partial Disabilities
Maximum period of time compensation payments
can be provided for permanent partial
Occupation disabilities
Military personnel No time limit regardless of degree of
impairment (10% to 90%); payments are
provided for the remainder of life, as long
as the impairment persists.
Federal PSOs Up to 312 weeks (6 years) for schedule awards
due to the loss of an arm, or the loss (or
loss of use) of any other important external
or internal organ of the body. In the case of
multiple impairments, benefits can be
received for each loss and the awards run
consecutively, with no specified limit.
Following a schedule award, wage loss
benefits may be received indefinitely, as
long as post-injury wages are less than wages
earned pre-injury.
Selected state and local
PSOsa
o California Highway Up to 429.25 weeks (8.25 years) for an
Patrol and Los Angeles adjusted permanent disability rating of
Firefighters 69.75%; payments for the remainder of life
for a rating of 70% or more.
o Florida Highway Patrol Up to 535 weeks (10.3 years).
and Miami Firefighters
o Montana Highway Patrol Up to 375 weeks (7.2 years).
and Billings Firefighters
o New Jersey State Up to 600 weeks (11.5 years).
Police and Newark
Firefighters
o Texas State Troopers Up to 300 weeks (5.8 years).b
and Houston Firefighters
Source: GAO analysis of program provisions.
aIn Indiana, both the Indiana State Police and the Indianapolis Fire
Department have opted to provide disability benefits only from their
pension funds following a period of special sick leave.
bAlternatively, in Texas, when the permanent impairment rating is at least
15% and the post-injury wage is less than 80% of the pre-injury wage,
supplemental benefits may be received for up to 401 weeks (7.7 years),
including weeks of benefit receipt for temporary, impairment, and
supplemental benefits combined.
Disability retirement benefits for permanent partial disability
The eligibility criteria for disability retirement benefits due to a
line-of-duty injury or illness vary across programs. In most programs
reviewed, line-of-duty permanent partial disabilities that prevent
individuals from returning to duty in their current jobs generally would
enable them to receive disability retirement benefits. In the military,
servicemembers who are unfit for duty are eligible for disability
retirement benefits if they have a disability rating of 30 percent or more
regardless of length of service, or if they have 20 years or more of
service regardless of disability rating.28 Federal PSOs must be unfit for
duty and have 18 months of service under FERS to qualify for disability
retirement benefits. Among the selected state and local PSOs we reviewed,
most would have access to disability retirement benefits regardless of
length of service if they are found unfit for duty.29 In Florida, however,
in addition to being unfit for duty in the current position, in order to
qualify for disability retirement benefits, Highway Patrol Officers must
be unable to be gainfully employed by any employer.
28If servicemembers are unfit for duty but they have fewer than 20 years
of service, and they have a disability rating of less than 30 percent,
they may be eligible to receive a lump-sum disability severance payment.
See app. II, military personnel, for details.
Programs generally calculate disability retirement benefits based on a
percentage of salary. In the military, servicemembers may elect to have
their disability retirement benefit calculated using length of service or
their disability rating,30 whichever is greater, up to a cap of 75
percent.31 Among the civilian PSOs we reviewed, some programs use
different formulas for calculating disability retirement benefits,
depending on the individual's circumstances, such as length of service, or
the type or degree of impairment. For example, as shown in table 6,
programs for federal PSOs, and for PSOs in Montana and Texas, use a higher
percentage for calculating disability retirement benefits for those with
20 years or more of service compared to those with fewer years of
service.32 Other programs, such as for Indianapolis and Houston
Firefighters, use different calculations depending on the type or degree
of disability sustained. For example, benefits for Indianapolis
Firefighters are calculated differently based on whether the disability is
due to injury or disease. Benefits for Houston Firefighters are calculated
differently depending on whether the disability prevents them from
returning to duty as a firefighter, or prevents them for engaging in any
gainful employment.
29In several locations, state and local PSOs can opt into a special
retirement program, referred to as a Deferred Retirement Option Plan
(DROP). DROP programs have been established across the country as a means
of retaining experienced PSOs beyond when they would be eligible for
normal retirement. These programs create an additional retirement account
with a guaranteed rate of return that produces a new benefit in addition
to the standard retirement benefit. However, when PSOs opt into a DROP
program, they generally are no longer eligible to receive disability
retirement benefits.
30Once a servicemember is found to be unfit for duty, DOD assigns a
disability rating using the VA's rating schedule to determine the degree
(percent) of disability.
31Unlike with temporary disability retirement payments; however, there is
no minimum payment of 50 percent of basic pay.
32Where provided, the alternative formulas for those with more years of
service generally result in disability retirement benefits that are at
least equal to, if not more than, the benefits available under normal
retirement based on age and length of service. For federal PSOs, however,
disability retirement benefits are less than normal voluntary retirement
benefits, despite the use of the same formula. This is because under
normal voluntary retirement, a special retirement supplement is provided
until age 62 that approximates the Social Security benefit earned in
federal service. This benefit is not provided for those taking disability
retirement. As a result, officials told us that virtually no one eligible
for both disability retirement and normal voluntary retirement chooses to
take disability retirement benefits.
Table 6: Disability Retirement Benefit Formulas for Military Personnel and
Selected PSOs
Occupation Disability retirement benefit formulas
Military personnel The greater of:
o 2.5% of basic pay or high 36-month
average, as applicable, at the time of
injury for each year of service or
o basic pay or high 36-month average, as
applicable, multiplied by the percent of
impairment.
Benefits are capped at 75% of basic pay
regardless of calculation method.
Federal PSOs o If under age 50 with fewer than 20 years
of service: 60% of average high-3 salary for
first year of disability; 40% of average
high-3 salary thereafter, until the
individual reaches age 62. Benefits are
recalculated at age 62 based on the normal
retirement formula for regular federal
employees (not PSOs).
o If age 50 or over with 20 years of
service, or any age with 25 years of
service: 1.7% of average high-3 salary for
each year of service up to 20, plus 1.0% of
the average high-3 salary times years of
service exceeding 20.
Selected state PSOs
o California Highway The greater of:
Patrol
o 50% of the employee's final compensation
or
o 3% of final compensation for each year of
service.
Benefits are capped at 90% of final
compensation regardless of calculation method.
o Florida Highway 65% of average final compensation.
Patrol
o Indiana State Police 70% of the officer's average high-3 salary for
first 2 years of receipt, 50% of the officer's
average high-3 salary thereafter, until
eligible for normal retirement.
Benefits end when the individual is eligible
for normal retirement, based on 25 years of
service (including years receiving disability
retirement), and normal retirement benefits are
then provided instead.
o Montana Highway o If fewer than 20 years of service: 50% of
Patrol average highest salary.
o If 20 years of service or more: 2.5% of
average highest salary for each year of
service.
o New Jersey State 66-2/3% of salary at the time of injury.
Police
o Texas State Troopers o If fewer than 20 years of service: 50% of
average highest salary.
o If 20 years of service or more: 2.8% of
average highest salary for each year of
service.
Selected local PSOs
o Los Angeles 30% to 90% of final salary, depending on the
Firefighters level of disability (but no less than 2% for
each year of service).
Benefits are capped at 90% of final average
salary.
o Miami Firefighters 66-2/3% of salary at the time of injury or
highest salary, whichever is greater.
o Indianapolis o If duty-related disability due to injury:
Firefighters 55% to 90% of base salary, depending on the
degree of impairment. Benefits are capped at
90% of a first-class firefighter's monthly
salary.
o If duty-related disability due to
disease: 22% of base salary, plus 0.5% for
each year of service up to 30 years, plus an
additional amount based on the degree of
impairment. Benefits are capped at 82% of a
first-class firefighter's monthly salary.
At age 52, benefits are recalculated based on
the formula for normal service retirement: 50%
of base salary, plus 1% for each 6 months of
active service over a 20-year period. Benefits
are capped at 74% of base salary.
o Billings o If fewer than 20 years of service: 50% of
Firefighters average highest salary.
o If 20 years of service or more: 2.5% of
average highest salary for each year of
service.
o Newark Firefighters 66-2/3% of salary at the time of injury.
o Houston Firefighters If injury prevents employment as a firefighter
(occupational disability), the greater of:
o 50% of average monthly salary or
o 50% of average monthly salary for 20
years of participation, plus 3% of average
monthly salary for each year of
participation over 20 years.
If injury prevents any gainful employment
(general disability), the greater of:
o 75% of average monthly salary or
o 50% of average monthly salary for 20
years of participation, plus 3% of average
monthly salary for each year of
participation over 20 years.
Benefits are capped at 80% of average monthly
salary.
Source: GAO analysis of selected disability retirement provisions.
Concurrent receipt provisions for permanent partial disability
When an individual with permanent partial disabilities is eligible to
receive both compensation and disability retirement benefits, we found
that offset provisions among the programs we reviewed represent the range
of possible policies: concurrent receipt permitted with an offset,
concurrent receipt permitted with no offset, and concurrent receipt not
permitted. For example, DOD disability retirement benefits generally are
reduced (offset) dollar-for-dollar when VA disability compensation
benefits are received; however, military veterans with 20 years or more of
service and a disability rating of 50 percent or more are having this
offset phased out over a 10-year period, and those with 20 years or more
of service and combat-related disabilities may be eligible for a special
benefit equal to the offset. (See earlier background section for further
details.)
On the civilian side, federal PSOs may receive disability retirement
benefits and compensation benefits with no offset in some situations, but
not in others, depending on the type of benefits. Two types of
compensation benefits are available to federal PSOs with permanent partial
disabilities: impairment awards (referred to as schedule awards) and wage
loss benefits (which are provided after the schedule award expires if an
individual is unable to earn as much as could be earned pre-injury).
Schedule awards may be received concurrently with disability retirement
benefits with no offset. In contrast, wage loss benefits may not be
received concurrently with disability retirement benefits.
As summarized in table 7, offset provisions also vary among the programs
providing benefits to the state and local PSOs we reviewed. For example,
California Highway Patrol Officers can receive compensation benefits for
permanent partial disability and disability retirement benefits without an
offset, but Los Angeles Firefighters cannot. In Miami, an offset comes
into effect only if the total combined benefits exceed the amount of the
PSO's pre-injury salary.
Table 7: Concurrent Receipt Provisions for Permanent Partial Disabilities
Concurrent receipt of disability compensation and
disability retirement benefits
Allowed with no Allowed with
Occupation offset offset Not allowed
Military personnel 0Ma
Federal PSOs 0Mb 0Mb
Selected state PSOsc
o California Highway 0M
Patrol
o Montana Highway 0Mb 0Mb
Patrol
o New Jersey State 0Md
Police
o Texas State 0M
Troopers
Selected local PSOse
o Los Angeles 0Mf
Firefighters
o Miami Firefighters 0Mg
o Billings 0Mb 0Mb
Firefighters
o Newark 0Md
Firefighters
o Houston 0M
Firefighters
Source: GAO analysis of program provisions.
aIn general, military disability retirement benefits are reduced
dollar-for-dollar for any compensation benefits received; however, this
offset is being phased out for veterans with a disability rating of 50% or
more and with 20 years or more of service. (See app. II, military
personnel, for details.)
bFor federal PSOs, Montana Highway Patrol, and Billings Firefighters,
concurrent receipt is allowed with no offset for an impairment award, but
concurrent receipt is not allowed with wage loss benefits.
cFlorida is not included in the table because disability retirement
benefits are provided only for permanent total disability. Indiana is not
included in this table because compensation benefits are not provided to
Indiana State Police.
dIn New Jersey and Newark, disability retirement benefits are reduced
dollar-for-dollar for any compensation benefits received.
eIndianapolis is not included in this table because compensation benefits
are not provided to Indianapolis Firefighters.
fNot only is concurrent receipt not allowed, when Los Angeles Firefighters
take disability retirement, they must repay any compensation payments
received for any disability incurred throughout their careers.
gIn Miami, workers' compensation is offset to prevent benefits from
totaling more than 100 percent of pre-injury income.
When Able to Return to Duty, Compensation Benefits for Military Personnel Are
Not Paid Immediately, but Amount Received over a Lifetime Is Generally Greater
When servicemembers or civilian PSOs are able to return to duty in their
previous position with a permanent partial impairment, such as may be the
case with tinnitus (ringing in the ears), disability retirement benefits
would not be available, but disability compensation payments generally
would be provided. The selected state and local PSOs we reviewed can
receive compensation benefits for permanent disabilities immediately,
whereas servicemembers cannot receive VA compensation benefits until they
are released from service through separation or retirement. Nevertheless,
because the PSOs' benefits are generally time limited, whereas military
veterans can receive benefits for the remainder of life, our analysis
shows that veterans often would receive a greater amount of compensation
benefits over a lifetime, even when the monthly benefit payment is
substantially lower and receipt of benefits is delayed for several years.
With respect to our hypothetical scenarios, officials administering
disability programs for servicemembers and PSOs told us that in most
circumstances, an individual with tinnitus would not be found unfit for
duty.33 In the military, no disability compensation would be paid until
the servicemember is released from military service. Once released from
service, however, a servicemember with tinnitus would be assigned a 10
percent disability rating, which corresponds to a VA compensation benefit
amount of $108 per month based on rates effective in 2005. This benefit
then would be provided for the remainder of life, adjusted annually.
On the civilian side, according to the AMA Guides, up to 5 percent can be
added to a disability rating for tinnitus in the presence of measurable
hearing loss if it affects activities of daily living. Some program
officials-such as from the U.S. Department of Labor and from California's
Labor and Workforce Development Agency-indicated that they most likely
would not provide any compensation for tinnitus alone. However, to compare
benefits across programs, we asked program officials to assume that
civilian PSOs with tinnitus are rated by physicians as having a 5 percent
impairment due to hearing loss (which can be rated and compensated
independently) and to calculate compensation benefits at a 5 percent
level.
33Across all programs, we were told that whether an individual is found
unfit for duty depends on the specific duties of his or her position, and
the extent to which the disability prevents successful performance of
those duties.
Among the civilian PSOs we studied, an individual with a 5 percent
impairment rating from a physician would receive compensation benefits for
set periods of time ranging from 2.3 months (10 weeks) in Florida and New
Jersey to 9.8 months (just over 42 weeks) for more senior California PSOs
(that is, those age 55 with 32 years of service). Despite equal
hypothetical salaries across programs, the payment amounts vary due to
different formulas and caps. For example, compensation payments for PSOs
with an annual salary of $85,000 ranged from $770 per month in New Jersey
to $4,722 per month for those in federal law enforcement, based on payment
rates effective in 2005.34 In addition, unlike the payments for
servicemembers, these payments would begin immediately upon the
determination that the injury is permanent, even when the PSOs return to
duty and receive their salaries at the same time.
To compare the compensation benefits available to military veterans with
the benefits available to the selected civilian PSOs, we calculated the
present value of the lifetime payments that would be provided for tinnitus
to five individuals with varying ages, lengths of service, and salary
levels (see fig. 4). Because we are assuming the injury is not sufficient
to prevent an individual from returning to duty, when the servicemember
chooses to leave the military is an important factor in determining the
lifetime present value of benefits for military personnel as VA
compensation benefits would not be available until the servicemember is
released from service. Therefore, in one scenario, we assume that the
servicemember chooses to separate from service at the earliest
opportunity.35 In a second scenario, we assume that the servicemember
chooses to leave the military only after reaching 20 years of service. As
illustrated in figure 4, in the first scenario, when leaving service at
the earliest opportunity, military veterans receive more benefits over a
lifetime than the selected civilian PSOs by a substantial margin due to
the longer period of time they would receive benefits. In the second
scenario, when leaving after 20 years of service, military veterans still
receive more benefits than the PSOs, but by a smaller margin.
34For more detailed information across all hypothetical scenarios and
programs reviewed, see app. IV, table 10.
35For purposes of our analysis, we assume that the servicemembers' tours
of duty are such that, although still fit for duty, they can choose to
separate immediately upon the determination of a permanent disability,
with one exception: We assume that the servicemember with only 1 year of
service must complete 2 years of service before being able to choose to
separate.
Figure 4: Comparison of Present Value of Compensation Benefits over a
Lifetime for Tinnitus
Note: Calculations for federal PSOs, and the selected state and local
PSOs, are based on the assumption that tinnitus is rated by physicians as
a 5% hearing impairment that can be rated and compensated independently.
See app. IV for details on methods and table 10 for more detailed data for
the selected state and local PSOs.
aWe assume that the servicemembers, though still fit for duty, choose to
leave the military at the earliest opportunity. We assume that the
servicemember with only 1 year of service must complete 2 years of service
before being able to choose to separate. For all others, we assume that
the servicemembers' tours of duty are such that they can choose to
separate immediately upon the determination of a permanent disability.
When Unable to Return to Duty, Amount of Disability Benefits over a Lifetime for
Military Veterans Is Sometimes More and Sometimes Less than the Amount of
Benefits for the Selected PSOs
Due to the physical demands of military service, law enforcement, and
firefighting, individuals in these occupations who sustain a permanent
partial disability often are not able to return to duty in their previous
positions. In such circumstances, disability retirement benefits may be
provided in addition to compensation benefits. We found that when
servicemembers and the civilian PSOs we reviewed are unable to return to
duty due to a permanent partial disability, such as a leg amputation, the
combined compensation and retirement benefits provided to military
personnel over a lifetime are sometimes more, and sometimes less, than the
combined benefits provided to the selected PSOs we reviewed. In addition,
although servicemembers and PSOs who sustain a permanent partial
disability may not be able to return to duty, they may still be able to be
gainfully employed in another type of job. We found that disability
retirement programs for servicemembers and most of the selected PSOs we
reviewed require post-injury employment to be under a different retirement
system, but most do not place any limits on the amount of post-retirement
earnings.
With respect to our hypothetical scenarios, officials administering
disability programs for servicemembers and PSOs told us that in most
circumstances, an individual with an amputated leg would be found unfit
for duty. In the military, once found unfit, a leg amputated below the
knee would be assigned a 40 percent disability rating, thus entitling a
servicemember to DOD disability retirement benefits, and VA monthly
compensation benefits of $466, plus $84 per month in special compensation
for this type of injury, based on rates effective in 2005. Total VA
compensation benefits of $550 per month, adjusted annually, would be
provided for the remainder of life, in addition to disability retirement
benefits, taking into account any applicable offsets. The added increment
for military disability retirement benefits would vary based on the
servicemember's salary and years of service.
On the civilian side, according to the AMA Guides, a leg amputated below
the knee less than 3 inches would be rated at 32 percent. Among the
civilian PSOs we studied, a 32 percent impairment rating from a physician
would correlate with compensation benefits being provided for set periods
of time ranging from just under 22 months (just under 2 years) for Texas
PSOs, to 73.7 months (just over 6 years) for more senior California PSOs
(that is, those age 55 with 32 years of service). Despite equal
hypothetical salaries across programs, monthly compensation payment
amounts would vary due to different formulas and caps, as was the case
with tinnitus. In addition, most of the PSOs included in our study would
be eligible for disability retirement benefits, except for Florida Highway
Patrol Officers.36 The added increment for civilian disability retirement
benefits varies based on the program's concurrent receipt provisions, and
the PSO's age, length of service, and salary level.
To compare the combined compensation and disability retirement benefits
available to military veterans with the benefits available to the selected
civilian PSOs, we calculated the present value of the combined payments
that would be provided over a lifetime for a leg amputated below the knee
to five individuals with varying ages, lengths of service, and salary
levels, taking into account the relevant concurrent receipt and offset
provisions. Although these individuals could not return to duty in their
previous positions, we assumed that they secure employment with an
alternative employer and earn 75 percent of their previous pay. As
illustrated in figure 5, the combined benefits received over a lifetime
for military veterans are more than the combined benefits for some of the
selected PSOs, but less than others, in these circumstances. For example,
Florida Highway Patrol Officers and Texas State Troopers generally would
receive less combined benefits than comparable military veterans, whereas
Indianapolis and Houston Firefighters generally would receive more
combined benefits than comparable military veterans. (For detailed data
for the selected state and local programs, see app. IV, table 11.)
36Florida PSOs are not eligible for disability retirement benefits unless
they are unable to engage in any employment, not just their pre-injury
occupation.
Figure 5: Comparison of Present Value of Combined Disability Benefits over
a Lifetime for a Leg Amputation
Note: See app. IV for details on methods and table 11 for more detailed
data for the selected state and local PSOs.
A key factor affecting the combined benefits amounts illustrated above is
whether or not the programs place restrictions on post-retirement
employment and earnings. When servicemembers or civilian PSOs are unable
to return to their previous positions due to permanent partial
disabilities, they may still be capable of gainful employment in other
positions or occupations. If disability retirement programs place
restrictions on post-retirement employment and earnings, such restrictions
can have an impact on an individual's benefit amounts and ability to earn
future income. As shown in table 8, several programs we reviewed require
post-injury employment to be under a different retirement system, but most
do not place any limits on the amount of post-retirement earnings. Those
that do limit earnings include programs for federal PSOs, and for state
PSOs in California, Florida, Montana, and Texas.
Table 8: Post-Retirement Employment and Earnings Restrictions on Receipt
of Disability Retirement Benefits
Post-retirement employment Post-retirement earnings
Occupation restrictions restrictions
Military veterans No military employment.a No restrictions.
Federal PSOs If re-employed in federal If under age 60, may not
government, salary is have earnings of 80% or
offset by the amount of more of salary for
the disability retirement pre-injury position.
payment.
Selected state PSOs
o California No employment in a Earnings combined with
Highway Patrol position similar to the the disability retirement
one from which retired on cannot exceed 100% of the
disability. maximum compensation of
the pre-injury position.c
o Florida Highway No gainful employment. May not have any
Patrolb substantial earnings.
o Indiana State No work activities that No restrictions.
Police are similar to those that
the person is unable to
perform as a State Police
Officer due to the
disability.
o Montana Highway No law enforcement No wages from a law
Patrol employment. enforcement position.
o New Jersey No employment covered by No restrictions.
State Police the State Police
Retirement System.
o Texas State No employment that Cannot receive earnings
Troopers provides comparable pay to equal to or greater than
the pre-injury position. earnings in the
pre-injury position.
Selected local PSOs
o Los Angeles No employment that No restrictions.
Firefighters violates the restrictions
of the disability.
o Miami No restrictions on No restrictions.
Firefighters employment outside of the
Miami Fire Department.
o Indianapolis No employment that is No restrictions.
Firefighters associated with an
accommodation or light
duty with the same
employer.
o Billings Employment under the same No restrictions.
Firefighters retirement system limited
to 960 hours per year.
o Newark No employment covered by No restrictions.
Firefighters the Police and
Firefighters Retirement
System.
o Houston No restrictions on No restrictions.
Firefighters alternative employment for
receipt of occupational
disability benefits.d
Source: GAO analysis of program provisions.
aRestrictions for military veterans include federal judgeships and certain
types of employment with foreign governments.
bIn Florida, disability retirement benefits are available only for
officers with total and permanent disabilities.
cIn California, an officer's earnings, when combined with disability
retirement, are offset if they exceed 100% of maximum earnings of the
pre-injury occupation.
dHouston Firefighters receiving general disability benefits (for total
disability) may not maintain any gainful employment.
Permanent Total Disability Benefits Are Greater over a Lifetime for Military
Veterans or for Civilian PSOs, Depending on the Type of Impairment
When a permanent injury is severe enough to be deemed a total
disability,37 military veterans may receive more or less benefits than
civilian PSOs, depending on the type of impairment and individual
circumstances. The military and civilian programs we reviewed provide
various enhanced benefits for certain cases of permanent total disability,
including increased disability compensation benefits, concurrent receipt
of compensation and disability retirement benefits with no offset, or
special lump-sum benefits for certain civilian PSOs. The amount of the
combined benefits over a lifetime for military veterans and civilian PSOs
with permanent total disabilities depends on the extent to which
individuals qualify for these various enhanced benefits.
Military Veterans and Civilian PSOs with Total Disabilities Have Access to a
Range of Enhanced Benefits
In cases of permanent total disability, military veterans and the selected
civilian PSOs we reviewed have access to a range of enhanced benefits.
Depending on an individual's specific circumstances, these benefits may
include higher disability compensation and retirement payments, a special
lump-sum benefit for civilian PSOs only, or several other types of
additional benefits, including SSDI.
Disability compensation benefits for permanent total disability
Among the programs we reviewed that provide disability compensation
benefits, all provide greater benefits for permanent total disability than
for permanent partial disability.38 For military veterans, the monthly
payment for total disability is increased substantially over the amounts
available for partial disabilities. For instance, the $2,299 monthly
payment in 2005 for a 100 percent disability rating is over $900 per month
more than the payment for a 90 percent disability rating (see earlier
table 2). In addition, VA provides an enhanced set of compensation
payments for certain severe injuries above and beyond the compensation
provided for permanent total disability with a 100 percent rating. These
higher special monthly compensation (SMC) payments are for military
veterans who sustain particularly severe injuries, such as amputations,
blindness, or other loss of use of organs and extremities. As described in
table 9, the SMC rates are designed to account for attendant care or other
special needs deriving from the disability.
37Across the programs we reviewed, permanent total disability generally
means that an individual is unable to maintain gainful employment. See
app. VIII for individual program definitions of what qualifies for
permanent total disability.
38In Indiana, both the Indiana State Police and the Indianapolis Fire
Department have opted to provide disability benefits only from their
pension funds following a period of special sick leave allocation.
Table 9: Basic Total and SMC Rates for VA Disability in 2005
Basic Total Disability Compensation Rate Monthly payment
Disability rating: 100% $2,299
SMC Rate Category Description
SMC-L: Loss of use of more than one extremity (hand or
foot), blindness, permanently bedridden, or in need of
regular aid and attendance. $2,860
SMC-M: Loss of use of extremities (hand or foot) with
complications, or more severe blindness, rendering need
for regular aid and attendance. $3,155
SMC-N: Loss of use of extremities (arms or legs) and
unable to use prostheses, or even more severe blindness. $3,590
SMC-O/P: More severe injuries, or multiple injuries each
entitled to special compensation. $4,012
SMC-R.1: Any injury entitled to special compensation in
categories SMC-N or SMC-O/P and in need of regular aid and
attendance. $5,734
SMC-R.2: Any injury entitled to special compensation in
categories SMC-N or SMC-O/P and in need of a higher level
of care. $6,576
SMC-S: Multiple injuries, one rated at 100% plus another
rated at 60% or more, or injuries causing the veteran to
be permanently housebound. $2,573
Source: Department of Veterans Affairs.
Note: Plus, SMC-K provides for an added $84 for each loss due to certain
types of injuries (such as anatomical loss of use of certain organs or
extremities), up to a total maximum monthly payment of $4,012, not
including dependents. Added increments are also provided for each
dependent if the disability is rated 30% or more (with the amount of the
increment varying by level of injury and type of dependent).
For civilian PSOs, the monthly payment amounts for total disability are
generally the same as for permanent partial disability, but are provided
for life rather than for a limited time period.39 Civilian payment rates
are not increased to account for attendant care; however, federal PSOs may
be eligible for an additional attendant allowance-up to $1,500 per month
during 2005-if such care is needed. This amount is not incorporated into
the compensation payment, but rather is provided separately to the care
provider. Among the state and local programs we reviewed, it is possible
that attendant care costs may be covered as a medical expense, but state
and local statutes and program rules do not address such costs
specifically.
39In California, benefits are received for life for injuries rated 70
percent or higher, but the calculation of benefits for injuries rated 70
to 99 percent is different than for injuries rated 100 percent.
Disability retirement benefits for permanent total disability
In addition to disability compensation, military veterans and nearly all
the selected civilian PSOs we reviewed have access to disability
retirement benefits for permanent total disability (see earlier table 6
for disability retirement benefit formulas).40 Military veterans who
retire due to permanent total disability may receive enhanced benefits
compared with veterans who retire due to permanent partial disabilities
rated at 70 percent or less, but payments are the same as those with
partial disabilities rated at 80 percent or more because DOD disability
retirement payments are capped at 75 percent of the individual's basic
pay.
Most of the disability retirement programs for the civilian PSOs we
reviewed do not offer enhanced disability retirement benefits due to
permanent total disabilities, but there are some exceptions. For example,
Florida Highway Patrol Officers may retire on disability only if they are
unable to perform any gainful employment. Thus, for Florida Highway Patrol
Officers, disability retirement is itself an enhanced benefit, provided
only to those with permanent total disabilities. Other examples include
state police officers in Indiana and Texas, who can receive an enhanced
disability retirement payments if they have permanent total disabilities:
100 percent of monthly salary in certain cases of total disability,
compared with 50 percent in most cases of partial disability.41 In
addition, disability retirement benefits for firefighters in Indianapolis
and Los Angeles are based in part on the degree of impairment; therefore,
those with permanent total disabilities may receive higher disability
retirement benefits than those with partial disabilities.
40Federal PSOs must have at least 18 months of service to be eligible for
disability retirement benefits. See app. II, federal PSOs, for more
information.
41In Indiana, State Police receive disability retirement payments of 100
percent of monthly salary when they sustain a catastrophic injury and are
unable to perform any gainful work; otherwise, they receive a disability
retirement payment of 70 percent for the first 2 years and 50 percent
thereafter. In Texas, State Troopers receive disability retirement
payments of 100 percent of monthly salary when they are incapable of
substantial gainful activity due to an occupational disability that is
considered a total disability under federal Social Security law;
otherwise, they receive a regular disability retirement payment of 50
percent if they have less than 20 years of service, and a payment
calculated at 2.8 percent of average monthly compensation for each year of
service if they have 20 years or more of service.
Concurrent receipt provisions for permanent total disability
The provisions for concurrent receipt of disability compensation and
disability retirement benefits in cases of permanent total disabilities
are similar to the provisions in cases of permanent partial disabilities
(see earlier table 7). As with partial disabilities, most military
veterans have their DOD disability retirement reduced (offset)
dollar-for-dollar by the amount of their VA compensation, except those
with 20 years or more of service. However, as of January 1, 2005, those
with a 100 percent disability rating were allowed concurrent receipt of
both benefits with no offset immediately, whereas those with 20 years or
more of service and disability ratings between 50 and 90 percent are
having this offset phased out over a 10-year period.42
On the civilian side, disability compensation programs for federal PSOs,
Montana Highway Patrol, and Billings Firefighters include provisions that
specify that total disability benefits-like wage loss benefits-cannot be
received concurrently with disability retirement benefits. These PSOs must
choose which type of benefit to receive. Provisions for concurrent receipt
for Florida Highway Patrol, who must have a total disability to be
eligible to receive disability retirement, are similar to the provisions
for Miami Firefighters: an offset comes into effect only if the total
combined benefits exceed the amount of the PSO's pre-injury salary.
Public Safety Officers' Benefits Program
Civilian PSOs with permanent and total disabilities also may be eligible
to receive a certain lump-sum benefit that is not available to military
veterans. The Public Safety Officers' Benefits Program, administered by
the Bureau of Justice Assistance in the Department of Justice, provides a
lump-sum benefit to PSOs at the federal, state, and local levels who incur
total permanent disabilities in the line of duty. Qualifying recipients of
the disability benefit must have a catastrophic injury, defined as the
consequence of an injury that permanently prevents an individual from
performing any gainful work.43 The disability benefit program was
established in 1990 and provides the same cash benefit that a
previously-established death benefit program provides to the survivors of
public safety officers killed in the line of duty. During fiscal year
2005, the benefit amount was set at $275,658.44 PSOs can receive these
benefits concurrently with most other benefits with no offset. From
October 2002 through June 2005, the Bureau of Justice Assistance had paid
disability benefits to 41 PSOs nationwide.
42Those with 20 years or more of service being compensated at the 100
percent disability level due to individual unemployability were initially
excluded from this provision; however, legislation enacted in 2006
authorizes these veterans to qualify for full concurrent receipt with no
offset as well, beginning in fiscal year 2010.
43See app. VIII for comparable definitions of total disability in the
other programs we examined.
Social Security Disability Insurance
Another benefit that is available to military veterans and federal PSOs
with permanent total disabilities, and to some of the selected state and
local PSOs we reviewed, is Social Security Disability Insurance (SSDI).45
SSDI benefits are available to individuals who incur a physical or mental
impairment that prevents them from performing substantial gainful activity
and that is expected to last at least 1 year or to result in death. The
benefit is based on the employee's earnings history and lifetime
contributions to Social Security; therefore the benefit amount varies
widely among individuals.46 Military veterans and federal PSOs pay into
Social Security and thus may be eligible to receive SSDI benefits. State
and local PSOs are eligible to receive SSDI benefits if they contribute to
Social Security; however, many state and local PSOs do not participate in
the program.47 Of the selected state and local PSOs we reviewed, only
Florida Highway Patrol and Texas State Troopers pay into Social Security.
In general, under federal law, public disability benefits, such as
workers' compensation and disability retirement provided through a public
retirement system, cannot exceed 80 percent of the pre-injury wage when
combined with SSDI. When workers' compensation benefits are received in
addition to SSDI and the combined benefit exceeds 80 percent of the
pre-injury wage, one of the benefits is offset. In most states the Social
Security Administration reduces the SSDI benefit to adhere to the
80-percent limit, while in 14 states the workers' compensation benefit may
be reduced instead of the SSDI benefit. However, when disability
retirement benefits are received from federal, state, or local government
employment in which the employee contributed to Social Security, the
Social Security Administration does not reduce the SSDI benefit to adhere
to the 80-percent limit. Nevertheless, the retirement programs may opt to
reduce the disability retirement benefit in such cases.
44The date of injury determines the benefit amount, which is adjusted
annually based on the Consumer Price Index.
45The Social Security Administration does not use the terms "permanent" or
"total" in its definition of eligibility for SSDI benefits. (See app. III
for details.) However, most individuals who would qualify for SSDI would
be considered as having permanent total disabilities by most other
programs we reviewed.
46The maximum benefit in 2005 was $1,939 per month. Added benefits may
also be payable to eligible family members. (See app. III, SSDI, for
details.)
47State and local government employees who are members of a public
retirement system are not required to pay into Social Security. Across all
50 states, 72 percent of state and local government employees were covered
by Social Security as of 2002.
Among the programs included in our study, we found that military veterans
may receive SSDI benefits with no reduction to their VA compensation and
military disability retirement benefits. Federal PSOs, however, have their
disability retirement payment reduced when receiving SSDI benefits.48 At
the state and local level, Florida is 1 of the 14 states where workers'
compensation benefits may be reduced for recipients of SSDI. According to
agency officials in Florida, workers' compensation benefits are reduced by
SSDI if total benefits (including workers' compensation, disability
retirement, and SSDI) exceed 100 percent of the pre-injury average weekly
wage. In Texas, the SSDI benefit is reduced for those receiving workers'
compensation benefits, but Texas State Troopers may receive both
disability retirement and SSDI benefits concurrently with no offset.
Additional benefits for permanent total disability
Finally, there are a number of additional benefits that may be available
in cases of permanent total disabilities. One such benefit is additional
compensation for dependents. For example, military veterans can receive an
added increment to their VA compensation benefit for each dependent, and
the amount is slightly larger for total disabilities than for partial
disabilities.49 In 2005, for instance, military veterans with a 100
percent disability receive $224 more for a dependent spouse and one child
than if they were single; in contrast, military veterans with a 90 percent
disability receive $201 more per month for a dependent spouse and child.50
(Of the civilian PSOs we reviewed, federal PSOs and Indiana State Police
also receive additional benefits for dependents, but they receive the same
increment for both permanent partial and permanent total disability.51)
48In the first year of FERS disability retirement benefits for federal
PSOs, FERS reduces the retirement payment by the full amount of any SSDI
payment. In subsequent years, FERS reduces the disability retirement
payment by 60 percent of the SSDI payment.
49The increment for dependents is available only for disabilities rated 30
percent or higher.
50The additional amount changes with the number and type of additional
dependents.
Another additional benefit is educational assistance. Both military
veterans and civilian PSOs may receive educational benefits for their
families in cases of total disability. For veterans, the military offers a
monthly payment for spouse and dependent education, up to $803 during
2005. For civilian PSOs, the Public Safety Officers' Benefits Program also
offers a need-based educational benefit to spouses and children of
recipients, up to $803 per month during fiscal year 2005. In addition,
California and Indiana provide a tuition-free higher education for
dependents of PSOs with permanent total disabilities.
Other additional benefits that military veterans with certain types of
severe disabilities may be eligible for include VA grants up to $50,000
for adapting existing housing or purchasing a new home, and grants up to
$11,000 for modifying a vehicle. Military veterans with a total disability
rating also are eligible for a waiver of the premium on their life
insurance costs, up to $10,000. Federal PSOs may be entitled to house or
vehicle modifications in some cases, but fewer of these kinds of benefits
are specified for the selected state and local civilian PSOs we reviewed.
For example, in Texas, according to agency officials, the workers'
compensation program at the state and local level permits modifications to
housing if a line-of-duty injury requires it. In Montana, by contrast,
agency officials told us that under state law, housing modifications are
not covered by workers' compensation benefits. In most civilian programs
we reviewed, statutes and program rules did not specify such additional
benefits.
51Federal PSOs' disability retirement payments are calculated at 75
percent of salary for those with dependents, and 66-2/3 percent of salary
for those without dependents. Indiana State Police receive an additional
$40 per month per dependent.
Military Veterans with Certain Types of Impairments Receive Greater Benefits for
Permanent Total Disability over a Lifetime than Most of the Selected PSOs
When military veterans and civilian PSOs incur injuries that are
permanently and totally disabling, they may receive monthly disability
compensation and retirement benefits, and, for civilian PSOs, a lump-sum
benefit. Our analysis showed that, when veterans with total disabilities
are receiving the highest VA SMC rates due to the type of their
impairment, the present value of combined benefits provided over their
lifetimes is higher than the combined benefits for most civilian PSOs.
However, many military veterans who are rated as having permanent and
total disabilities (that is, with a 100 percent disability rating) do not
receive SMC. Of veterans receiving VA compensation for total disability in
2004, 86 percent received payments based on the basic monthly compensation
rate and 14 percent received payments based on a higher SMC rate. When
veterans are receiving the basic VA compensation for a 100 percent
disability rating, the amount of benefits received over a lifetime is
lower than some of the selected civilian PSOs' benefits due to the
additional lump-sum benefit available to civilian PSOs and the varying
provisions for concurrent receipt of benefits.
With respect to our hypothetical scenarios, officials administering
programs for military veterans and PSOs told us that in most
circumstances, quadriplegia would be considered a permanent total
disability, and that an individual with this impairment would receive both
permanent total disability compensation benefits and disability retirement
benefits. Military officials told us that military veterans with
quadriplegia would qualify for the highest VA special compensation rate
(SMC-R.2--$6,576 per month in 2005, see earlier table 9) in addition to
DOD disability retirement benefits. Agency officials in the Department of
Justice told us that most civilian PSOs in this situation would be
eligible for the lump-sum benefit under the Public Safety Officers'
Benefits Program. Federal PSOs would also be eligible for up to an
additional $1,500 per month for attendant costs that would be paid
directly to the care provider.
To compare the different benefit streams for quadriplegia available to
military veterans and the selected civilian PSOs, we calculated the
present value of combined payments that would be provided to individuals
over a lifetime in five scenarios of varied ages, lengths of service, and
salary levels. These calculations include the combined amount of
disability compensation and disability retirement payments, taking into
account the relevant concurrent receipt and offset provisions, as well as
any lump-sum payments that may be available.52 For military veterans, we
calculated benefits with special compensation, and for federal PSOs, we
calculated benefits with the $1,500 attendant allowance.53 As illustrated
in figure 6, military veterans with quadriplegia are eligible for SMC, and
therefore receive a higher present value of combined payments over a
lifetime than most of the civilian PSOs we reviewed. Only for the
hypothetical individual age 35, with 12 years of service and a salary of
$60,000, do federal PSOs and selected PSOs in California, Texas, and
Houston receive more benefits than their military counterparts with the
same age, years of service, and salary level. When incurring a total
disability at this point in their careers, the present value of military
veterans' benefits dips because they would not receive benefits as long as
would younger servicemembers, and do not have enough years of service to
qualify for concurrent receipt of benefits with no offset.
52We were not able to include SSDI in this analysis of benefits received
over a lifetime, due to the complexity of how SSDI benefits are calculated
based on an individual's entire work history. Among the civilian PSOs we
reviewed, additional SSDI benefits would not likely affect the outcome of
our analysis. Few participate in Social Security, and if they should
qualify for SSDI, their SSDI benefits would be offset. However, military
personnel participate in Social Security, and if they should qualify for
SSDI, their SSDI benefits are not offset. As a result, over a lifetime,
military veterans could receive significant additional SSDI benefits over
and above the disability compensation and retirement benefits discussed
here.
53As state and local statutes and program rules for the programs we
reviewed do not specify whether attendant care benefits are covered and in
what amount, we could not include attendant care benefits for the selected
state and local PSOs.
Figure 6: Comparison of Present Values of Combined Disability Benefits
over a Lifetime for Quadriplegia and Other Permanent Total Disabilities
Note: See app. IV for details on methods and table 12 for more detailed
data for the selected state and local PSOs.
aBenefits are calculated using VA's highest SMC rate ($6,576 in 2005).
bIncludes $1,500 per month for attendant costs. Benefits are calculated
using FECA's schedule awards for loss of use of all four limbs.
cBenefits are calculated using VA's basic compensation rate for a 100%
disability rating ($2,299 in 2005).
dDoes not include $1,500 per month for attendant costs. Benefits are
calculated using FECA total disability benefits.
We also calculated the benefit streams for permanent total disabilities
for military veterans without special compensation, and for federal PSOs
without the $1,500 per month allowance for attendant costs. As illustrated
in figure 6, when military veterans receive the basic VA compensation rate
for a 100 percent disability rating (set at $2,299 per month in 2005), as
would be expected, the present value of the combined benefits over a
lifetime is lower than the present value of benefits for veterans who
qualify for the higher SMC rates. For the hypothetical veterans with fewer
than 10 years of service, the amount of combined benefits over a lifetime
is lower by more than half.
Compared with the benefit packages provided civilian PSOs with permanent
total disabilities, military veterans receiving payments based on the
basic VA compensation rate for a 100 percent disability rating would
receive benefits over a lifetime that are greater than for some of the
selected PSOs, but less than for others. Five factors account for the
higher present value of the civilian benefit packages in some cases:
o The lump-sum benefit that is available only to civilian PSOs.
o The calculation of compensation payments for PSOs based on
salary, as opposed to the calculation of VA compensation for
military veterans based on the degree of injury, which can result
in civilian PSOs with high salaries receiving higher compensation
payments than their military counterparts with the same salary for
the same injury.54
o The enhanced disability retirement benefits provided for
permanent total disability for some PSOs, including Indiana State
Police, and Indianapolis and Los Angeles Firefighters.
o The 75 percent cap on military disability retirement payments
that is more restrictive than the caps placed on payments by
several of the PSOs' disability retirement programs.55
o Provisions allowing the concurrent receipt of disability
retirement and compensation payments with no offset for some PSOs,
but not for their military counterparts of the same age and years
of service.
54This is the case for a hypothetical civilian PSO age 35, with a salary
of $60,000 and 12 years of service, serving as a state police officer in
California, Florida, or New Jersey. See app. IV, table 12, for more
details.
55Several of the civilian disability retirement programs we reviewed have
no caps on payments, or have caps ranging from 80 to 100 percent of
pre-injury salary. See table 6 in earlier section for details.
Concurrent receipt provisions are particularly important in determining
the benefits received over a lifetime. For example, California Highway
Patrol, Texas State Troopers, and Houston Firefighters all may receive
both compensation and disability retirement payments concurrently, with no
offset. The present value of benefits received over a lifetime for these
three groups is higher than for military veterans who are receiving basic
VA compensation for a 100 percent disability rating. In addition, Florida
State Police and Miami Firefighters may receive benefits concurrently with
no offset up to 100 percent of the pre-injury wage, and this contributes
in some circumstances to greater benefits for these two groups than for
military veterans.
Concluding Observations
Neither military personnel, nor any of the civilian PSOs we reviewed,
consistently have more line-of-duty disability benefits available to them
in all situations. Rather, our analysis illustrates the variation in
benefit packages across programs, depending on specific program provisions
and individual circumstances. In some situations, military benefits are
greater; in other situations, one or more of the selected PSOs' benefits
are greater. Provisions that govern continuation of pay and temporary
disability benefits for servicemembers offer certain advantages. But
provisions that govern permanent partial disability benefits sometimes
result in more benefits over a lifetime for military personnel, and at
other times for the selected civilian PSOs, depending on such factors as
the type and degree of impairment, and whether the impairment prevents the
individual from returning to duty. Similarly, provisions that govern
permanent total disability benefits can result in greater benefits for
PSOs in some circumstances, and for military veterans in others, such as
when veterans qualify for special compensation.
The ongoing efforts to assess disability benefits may lead Congress and
other policymakers to consider modifying disability programs. We are not
taking a position on how disability benefits should be modified. However,
we believe that any deliberations on this topic should include an
examination of how such changes would affect ensuring adequate and
appropriate benefits for those who serve our country, as well as the
long-term fiscal well-being of our nation.
Agency Comments
We provided a draft of this report to the Departments of Defense, Labor,
Justice, and VA; the Social Security Administration; and the Office of
Personnel Management. All comments received were technical in nature and
were incorporated as appropriate.
We are sending copies of this report to relevant congressional committees,
the Secretary of Defense, the Secretary of Veterans Affairs, and other
interested parties. The report will also be available on GAO's Web site at
http://www.gao.gov . If you or your staff have any questions regarding
this report, please contact me at (202) 512-7215. Contact points for our
Offices of Congressional Relations and Public Affairs may be found on the
last page of this report. Staff acknowledgments are listed in appendix IX.
Cristina T. Chaplain Acting Director, Education, Workforce, and Income
Security Issues
List of Congressional Committees
The Honorable John Warner Chairman The Honorable Carl Levin Ranking
Minority Member Committee on Armed Services United States Senate
The Honorable Larry E. Craig Chairman The Honorable Daniel K. Akaka
Ranking Minority Member Committee on Veterans' Affairs United States
Senate
The Honorable Duncan L. Hunter Chairman The Honorable Ike Skelton Ranking
Minority Member Committee on Armed Services House of Representatives
The Honorable Steve Buyer Chairman The Honorable Lane Evans Ranking
Minority Member Committee on Veterans' Affairs House of Representatives
Appendix I: Disability Compensation Benefit Programs Appendix I:
Disability Compensation Benefit Programs
Temporary Permanent
Program name/ disability disability
administering compensation compensation
agency Injuries covered payments payments
Military personnel
Compensation for Service-connected Not VA provides
Service-Connected injuries from applicable. recurring monthly
Disability/ active military, (No payments that vary
Department of naval, or air distinction is with the degree of
Veterans Affairs service, during made between disability and
(VA) either wartime or temporary and number of
peacetime.a permanent dependents.
Includes personal benefits.) Payments are made
injury suffered or for the remainder
disease contracted of life, as long as
in the line of the condition
duty, or persists.
aggravation of a
preexisting Payment calculation
injury.b
o Partial
No compensation is disability:
paid if the Basic payment
disability is a amounts
result of the established
veteran's own annually for
willful misconduct disability
or abuse of alcohol ratings ranging
or drugs, or if the from 10% to 90%.
veteran received a During 2005,
dishonorable amounts ranged
discharge from the from $108 to
period of service $1,380 per
giving rise to the month.
injury. No length o Total
of service disability:
requirement, but Defined as those
must be a veteran rated at 100%.
(that is, released During 2005,
from military payment was set
service) to be at $2,299 per
eligible to receive month.
benefits.c
"Add-ons" to basic
payments
Special monthly
compensation (SMC)
is provided for
particularly severe
injuries, such as
amputations,
blindness, or other
loss of use of
organs and
extremities.
If the disability
rating is 30% or
more, a veteran is
entitled to
additional
compensation for
each dependent.
During 2005, the
additional amounts
ranged from
$39-$130 for a
spouse, and $26-$88
for a child,
depending on the
level of
disability.
If the disability
rating is 60% or
more, and the
veteran is unable
to secure
employment due to
service-connected
disabilties,
compensation may be
increased to the
100% rate.
Payment cap
During 2005, the
maximum monthly
payment amount,
including SMC, was
$6,576 for a
veteran with
multiple severe
injuries requiring
a high level of
attendant care (not
including
additional amounts
for dependents).
Federal PSOs
Federal Employees Any injury or Recurring No distinction is
Compensation Act disease arising out payment made between
(FECA)/ Department of employment. provided every temporary and
of Labor, Office of However, if an 28 days when permanent
Workers' injury arises from an employee is disability. An
Compensation willful misconduct not able to employee can
Programs (OWCP) of the employee, return to work continue to receive
caused by the full time,a the recurring
employee's and the 28-day temporary
intention to bring employee is partial or
about the injury or not eligible temporary total
death of himself or for disability
another, or is continuation compensation
proximately caused of pay or is payment (and an
by the intoxication entitled to attendant
of the injured temporary allowance, if
employee, OWCP total benefits needed) as long as
beyond the the employee
period of continues to
continuation experience wage
of pay.b An loss or is unable
attendant to return to work.
allowance, not
to exceed In addition,
$1,500 per however, an injured
month, is also employee may
provided, if receive a "schedule
an attendant award" for the
is necessary. permanent
impairment of
certain members,
functions, and
(continued)
Receipt of other income and benefits
Disability
Cost-of-living retirement
Tax exemptions adjustments Post-injury wages payments
VA compensation A COLA is not Veterans who return Veterans may
benefits are guaranteed, but to military duty are receive
federally Congress has not eligible to concurrently
tax-exempt. historically receive disability military
passed annual compensation retirement pay,
COLAs based on a payments. However, military
percentage equal veterans may receive disability
to the Social non-military severance pay, and
Security increase. earnings in addition other military
to compensation separation
payments with no incentive pay;
restrictions.d however, such pay
will be offset by
the amount of the
compensation
payment in most
cases.e
FECA A COLA is provided If able to work and Cannot receive
compensation on a yearly basis, have earnings, total disability
benefits are equal to the cannot receive total or partial
federally change in the disability disability
tax-exempt. Consumer Price compensation compensation
Index. payments. But can payments (based on
receive earnings in wage loss)
addition to partial concurrently with
disability disability
compensation retirement benefit
payments (based on payments. However,
wage loss), and in can receive a
addition to a schedule award for
schedule award for a a permanent
permanent impairment
impairment. concurrently with
disability
retirement
benefits with no
offset.
Temporary Permanent
Program name/ disability disability
administering compensation compensation
agency Injuries covered payments payments
(Federal PSOs - continued)
may reject the claim Payment organs of the body
for compensation. No calculation such as the eye,
length of service arm, or kidney,
requirement. o Partial and for serious
disability disfigurement of
(when able to the head, face, or
work, but at a neck.
reduced
salary): Payment
Payments are calculation for
66-2/3% of the schedule award
wage loss (that
is, the Payments are
difference provided for a
between part specified period
time and full of time depending
time wages) if on the type and
the employee degree of
has no permanent
dependents, 75% impairment of a
if the employee member, organ, or
is married or function. For the
has dependents. prescribed period
o Total of time, an
disability employee receives
(when unable to 66-2/3% of his or
work): Payments her average weekly
are 66-2/3% of wage if no
the employee's dependents, 75% if
average weekly married or has
wage if no dependents. For
dependents, 75% any one loss or
if the employee loss of use of a
is married or member, organ, or
has dependents. function, 312
weeks is the
Payment cap maximum length of
time benefits may
No injured be received.
employee may However, in the
receive more than case of multiple
75% of the regular impairments,
GS-15, step 10, benefits can be
pay level.c received for each
loss and the
awards run
consecutively,
with no specified
limit.
Payment cap
No injured
employee may
receive more than
75% of the regular
GS-15, step 10,
pay level.c
Selected state and local PSOs
o California State Highway
Patrol Officers and City of Los
Angeles Firefighters
Workers' Any injury or disease Following the Once the
Compensation arising out of period of employee's
Program/ employment. The continuation of condition is
California injury may be either pay,a temporary determined to be
Department of specific, occurring disability permanent and
Personnel as the result of one payments are stationary,
Administration incident or exposure, provided on a recurring
and Department or cumulative. For recurring biweekly permanent
of Industrial various state and basis until: disability
Relations local safety payments are
officers, specific o the provided to
injuries are presumed employee's compensate for a
compensable. These condition is diminished future
include hernia, determined to earnings capacity.
pneumonia, heart be permanent
trouble, cancer, and stationary; Payment
leukemia, o the employee calculations
tuberculosis, has received
blood-borne benefits for 2 o Permanent
infectious disease, years;b partial
exposure to a o the employee disability:
biochemical returns (or is Payments are
substance, medically 2/3 of the
meningitis, Lyme authorized to maximum
disease, and lower return) to work allowable
back impairment. The full time; or average weekly
injury cannot be o the employee earnings for a
intentionally returns to work set time period
self-inflicted or be part time and ranging from 3
caused by the earnings exceed weeks to about
employee's use of the maximum 17 years, based
alcohol or unlawful allowable. on an adjusted
use of controlled disability
substance, by the Payment rating.d After
employee's initial calculation this set time
period has
o Temporary expired, those
partial with an
disability adjusted
(able to work disability
part time at rating of at
current job): least 70%, but
Payments are less than 100%,
2/3 of the continue to
difference receive
between the payments for
amount of the remainder
actual earnings of life,
and the maximum calculated at
allowable 1.5% of the
amount of maximum
average weekly allowable
earnings average weekly
($1,260 in earnings b for
2005).c each percent of
o Temporary their
total disability
disability rating over
(unable to work 60%.
at current o Permanent
job): Payments total
are 2/3 of the disability:
maximum Payments are
allowable 2/3 of the
amount of maximum
average weekly allowable
earnings. amount of
average weekly
earningsb for
the remainder
of life.
Payment caps
o For partial
disability of
less than 70%,
the maximum
average weekly
earnings to be
used in the
payment
calculation in
2005 was $330
(times 2/3
equals $220).
(continued)
Receipt of other income and benefits
Disability
Cost-of-living retirement
Tax exemptions adjustments Post-injury wages payments
Workers' An annual COLA is Can receive earnings Can receive
compensation provided only for with permanent concurrently
benefits are those receiving compensation payments, with permanent
federally permanent disability even if receiving disability
tax-exempt. life pensions (for compensation for total compensation
ratings 70% and disability. Can benefits with
higher) based on the receive earnings in no offset.
percentage increase addition to partial
in the state's disability
average weekly wage.f compensation payments
with the following
restrictions:
o Same employer:
Can receive
earnings in
addition to
permanent partial
disability
benefits, but if in
a comparable
position, then
benefits are
reduced by 15%
after 60 days.
o Different
employer: Can
receive earnings in
addition to
permanent partial
disability benefits
with no reduction
in benefits.g
Temporary Permanent
Program name/ disability disability
administering compensation compensation
agency Injuries covered payments payments
(California-continued)
aggression in a Payment cap o For partial
physical disability of
altercation, by 2/3 of the maximum 70-99%, the
the commission of allowable amount maximum average
certain specified of average weekly weekly earnings
crimes, or by earnings ($1,260 to be used in
voluntary in 2005-times 2/3 the payment
participation in equals $840 per calculation in
off-duty week). 2005 was $405
recreational, (times 2/3
social, or equals $270).
athletic o For total
activities for the disability, the
most part. No maximum average
length of service weekly earnings
requirement. to be used in
the payment
calculation in
2005 was $1,260
(times 2/3
equals $840).
Other benefits
A supplemental job
displacement
benefite and
education
assistance for
dependents may
also be provided
under some
circumstances.
o Florida State Highway Patrol
Officers and City of Miami
Firefighters
Risk Management's Any injuries or Recurring biweekly Two types of
Workers' occupational temporary recurring
Compensation diseases that disability bi-weekly payments
Program/ Florida develop because of payments are are available for
Department of conditions on the provided for up to permanent
Financial job.a 2 years, or until disability,
Services Tuberculosis, maximum medical depending on
heart disease, and improvement is degree of
hypertension are reached, at which impairment. If
presumed to be point a physician eligible for both
work-related for must assess the types of benefits,
members of the amount of an employee must
special risk permanent choose which to
class.b No impairment receive (permanent
compensation is according to the impairment
provided if the Florida Impairment benefits cannot be
injury is caused Ratings Guide.c received in
by intoxication, conjunction with
use of Payment permanent total
non-prescribed calculations disability
drugs, or willful benefits).
intention to kill o Temporary
or injure another partial Payment
person, or if the disability: calculations
disease the Payments are
employee suffers 80% of the o Permanent
from is associated difference impairment
with fear or between 80% of benefits (to
dislike of a the employee's compensate
person based on pre-injury employees for
individual average weekly loss of use of
characteristics waged and the a body part or
such as race, sex, salary the function due to
color, or employee is an injury):
religion. No able to earn Payments are
length of service post-injury. 75% of the
requirement. o Temporary employee's
total average weekly
disability: temporary total
Payments are disability
66-2/3% of the benefits, and
employee's are provided
average weekly for a length of
wage. Employees time ranging
suffering from 2 weeks up
particularly to 535 weeks,
serious depending on
injuries, such the degree of
as blindness or impairment.e
loss of a limb, o Permanent
receive total
temporary total disability (to
disability of compensate
80% of average employees
weekly wage for considered not
up to 6 months. capable of
(After 6 engaging in at
months, least sedentary
payments are employment):
the same as Payments are
regular 66-2/3% of the
temporary total employee's
disability average weekly
benefits.) wage and are
provided for as
Payment caps long as the
disability
o Temporary continues or
partial until 75 years
disability of age.f
payment cannot
be in an amount Payment cap
greater than
66-2/3% of the Both types of
pre-injury permanent benefits
wage, and is are capped at 100%
capped at the of the statewide
statewide average weekly
average weekly wage ($651 in
wage ($651 in 2005).
2005).
o Temporary
total
disability
payment is
capped at the
statewide
average weekly
wage ($651 in
2005). Payments
for certain
more serious
injuries have a
higher weekly
cap ($700 in
2005).
Receipt of other
income and
benefits
Disability
Cost-of-living retirement
Tax exemptions adjustments Post-injury wages payments
All workers' A COLA is provided Can receive According to
compensation for permanent total earnings with program officials,
benefits are disability benefits temporary partial can receive
federally in the form of a and permanent disability
tax-exempt. supplement. The impairment retirement
supplement equals 3% benefits, but with benefits
of the weekly some restrictions. concurrently with
compensation benefit For temporary workers'
times the number of partial benefits, compensation
calendar years since earnings are benefits. However,
injury. Supplemental factored into the with the exception
payments cease at age payment of permanent
62.g calculation (see impairment
previous column).h benefits,i the
For permanent compensation
impairment benefits are
benefits, when offset if the
post-injury combined total of
earnings are equal benefits exceeds
to or greater than 100% of the
the pre-injury pre-injury average
average weekly weekly wage.
wage, permanent
impairment
benefits are
payable at 37.5%
of the average
weekly temporary
total disability
benefits (instead
of 75%).
To receive
permanent total
compensation, the
individual must
not be capable of
engaging in at
least sedentary
employment due to
the disability.
Temporary Permanent
Program name/ disability disability
administering compensation compensation
agency Injuries covered payments payments
o Indiana State Police and
City of Indianapolis
Firefighters
Not applicablea
o Montana State Highway Patrol
Officers and City of Billings
Firefighters
Workers' All injuries and A recurring A recurring
Compensation/ illnesses bi-weekly payment bi-weekly payment
Montana sustained during provided until provided after
Department of work or when "maximum healing" "maximum healing"
Labor and performing is achieved, and/or is achieved if the
Industry - work-related the employee is employee
Employment activities. released to work experiences a wage
Relations, Workers' and is able to loss and has a
Workers' compensation return to the same permanent
Compensation benefits may be employer at an impairment, or is
Claims Assistance denied to those equal or higher unable to work due
Bureau with injuries wage.a to the injury.
resulting from
intoxication. Payment calculation Payment calculation
However, if an
employer had o Temporary o Permanent
knowledge of an partial benefits partial benefits
employee's use (when able to (when able to
of intoxicants work prior to work with a
on the job and maximum healing, permanent
made "no effort but at a reduced impairment, but
to stop it," the salary): at a reduced
employee still Payments are salary): Payment
qualifies for equal to the of 66-2/3% of
workers' total loss in wages at time of
compensation wages, up to the injury are
benefits. No amount of the provided for a
length of worker's length of time
service temporary total based on a
requirement, disability percentage
according to benefit rate. derived from
agency Benefits may be injury, wage
officials. received for up loss, and other
to 26 weeks, factors,b which
with further is then
extensions multiplied by
possible. 375 weeks.
o Temporary o Permanent
total benefits total benefits
(when unable to (when unable to
work): Payments work): Payment
are of 66-2/3% of 66-2/3% of
of wages at the wages at the
time of injury. time of injury
Benefits may be provided for the
received for the duration of the
duration of disability.c
healing.
Payment caps
Payment cap
o 50% of state
State average average weekly
weekly wage ($520 wage for partial
in 2005). disability
payments ($520
in 2005-times
50% equals $260
per week).
o 100% of state
average weekly
wage for total
disability
payments ($520
in 2005).
Additional benefits
Employees with a
face, head, or neck
disfigurement may
qualify for a
lump-sum benefit of
up to $2,500.
o New Jersey State Police and
City of Newark Firefighters
Workers' All occupational Recurring weekly Recurring weekly
Compensation/ New injuries and payments are payments for
Jersey Department illnesses provided while an injuries causing
of Labor and arising out of injured employee is any degree of
Workforce and in the temporarily unable permanent
Development course of to work and has not disability, either
employment. In reached maximum "scheduled" or
addition, for medical "non-scheduled," as
police and improvement, up to determined by a
firefighters, a maximum of 400 physician.b
the state weeks. a
statute provides Payment calculation
a rebuttable Payment calculation
presumption of o Partial
compensability o Temporary disability (able
for all partial to return to
cardiovascular disability: No previous work):
and benefits are The percentage
cerebrovascular provided for of employee's
injuries. temporary average weekly
However, partial wage and number
work-related disability. of weeks
injuries may not o Temporary payments are
be covered if an total provided are
employee was disability: 70% determined based
willfully of the injured on type and
negligent at the employee's degree of
time of injury. average weekly impairment.
No length of wage, or 75% of Payments can be
service the state received for up
requirement. average weekly to a maximum of
wage, whichever 600 weeks.c
is less. o Total
disability
(unable to
return to
previous work):
Payments are 70%
of employee's
average weekly
wage for up to
450 weeks. After
450 weeks,
payments
continue only if
it is determined
that the
employee's
(continued)
Receipt of other
income and benefits
Tax Cost-of-living Disability
exemptions adjustments Post-injury wages retirement payments
Workers' For permanent total o Can receive The Montana
compensation disability benefits, earnings with Workers'
benefits are there is a COLA temporary Compensation Act
federally after 2 years, and partial does not address
tax-exempt. then annually. The compensation receipt of
adjustment is equal benefits if the disability
to the percentage benefit and the retirement benefits
increase in the new salary, when from
state average weekly combined, do not employer-sponsored
wage. exceed the programs. (See app.
employee's II, Montana State
pre-injury wage. Highway Patrol
o Can receive Officers and City
earnings with of Billings
permanent Firefighters, under
partial "Disability
benefits. compensation
o Cannot payments," for
receive earnings relevant
while receiving provisions.)
either temporary
or permanent
total
compensation
benefits, unless
written consent
is obtained from
the insurer.
.
Workers' No COLA provided. Cannot receive Can receive
compensation Rates are based on earnings with concurrently with
benefits are the year of injury either temporary compensation
federally and remain fixed for total or permanent benefits, but the
tax-exempt. the entire period of total disability benefits may be
disability.d payments for the offset.f
first 450 weeks.
After 450 weeks,
can receive
earnings only in
very limited
circumstances.e Can
receive earnings
while receiving
permanent partial
disability
payments.
Temporary Permanent
Program name/ disability disability
administering compensation compensation
agency Injuries covered payments payments
(New Jersey - continued)
Payment cap disability
precludes
75% of the state's performance of any
average weekly wage gainful employment.
($888 in 2005-times
75% equals $666 per Payment cap
week).
75% of the state's
average weekly wage
($888 in 2005-times
75% equals $666 per
week).
o Texas State Troopers and
City of Houston Firefighters
Workers' All work-related Following the Upon reaching
Compensation/ injuries and period of maximum medical
Texas illnesses, continuation of improvement, three
Department of provided that the pay,a recurring types of permanent
Insurance, employer payments are disability benefits
Division of participates in provided to injured are available.
Workers' the program. State employees until
Compensation Troopers are they attain Payment
covered, and, "maximum medical calculations
according to City improvement" or for
of Houston a maximum of 104 o Impairment
officials, Houston weeks. At 104 Income Benefits:
Firefighters are weeks, the state Payments are 70%
also covered. considers the of the
Injuries are not injury to have employee's
covered, however, achieved a average weekly
if incurred as a statutory "maximum wage, and are
result of medical received for a
intoxication, improvement." length of time
intentional determined by
injury, injury Payment calculation the degree of
caused by another impairment. An
person for Temporary income employee
personal reasons, benefits are based receives 3 weeks
an "act of God," on 70% of the of benefits for
or "horseplay." employee's loss in each percentage
wages, calculated point of
by subtracting the impairment.
employee's weekly o Supplemental
earnings after the Income Benefits:
injury from the Payments begin
employee's average upon expiration
weekly wage before of impairment
the injury.b For income benefits
employees making if an employee
less than $8.50 per meets certain
hour, the payments criteria, such
are based on 75% of as having an
the employee's loss impairment
in wages for up to rating of at
26 weeks, then least 15% and
drops to 70%. earning less
than 80% of the
Payment cap pre-injury wage.
Payments are 80%
100% of statewide of the
average weekly wage employee's loss
($539 per week in in wages,
2005). calculated by
subtracting the
employee's
weekly earnings
after the injury
from the
employee's
average weekly
pre-injury wage.
An employee can
receive this
benefit until
reaching a
cumulative total
of 401 weeks of
temporary,
impairment, and
supplemental
workers'
compensation
benefits.
o Lifetime
Income Benefits:
Payments
provided for
certain types of
extreme injuries
such as
dismemberment,
severe burn, or
brain trauma.
Payments are 75%
of the
employee's
average weekly
wage, and are
increased 3%
annually. These
payments are
provided for the
remainder of
life.
Payment caps
o Impairment
and supplemental
income benefits
are capped at
70% of the
statewide
average weekly
wage ($539 in
2005-times 70%
equals $377 per
week).
o Lifetime
income benefits
are capped at
100% of the
statewide
average weekly
wage ($539 per
week in 2005).
Receipt of other income and benefits
Disability
Cost-of-living retirement
Tax exemptions adjustments Post-injury wages payments
Workers' A COLA of 3% per o Can receive According to
compensation year is provided earnings with program
benefits are only for those impairment and officials, can
federally receiving lifetime supplemental income receive
tax-exempt. income benefits.c benefits. Earnings concurrently
are one of the with
factors considered compensation
in the determination benefits with no
of the benefit offset.
amount.
o No restrictions
on earnings are
specified with
respect to lifetime
income benefits.
Source: GAO analysis based on statutes, regulations, program policies, and
interviews with program officials.
Military personnel
aGroups considered to be covered in this definition include Coast Guard
and Public Health Officers, among others.
bAn alternative program, VA Disability Pension, is available for veterans
of wartime service with low-incomes, and permanent and total disabilities,
but whose disabilities are not service-connected. Payments under this
program generally are lower than the compensation payable for
service-connected disabilities. Veterans cannot receive benefits from both
programs simultaneously.
cVeterans may be eligible for benefits if released from service only on a
temporary basis, as when receiving temporary disability retirement
benefits. See app. II, military personnel, for more details.
dExcept when the veteran's compensation is based on an inability to secure
employment due to a service-connected disability. In such cases, earnings
may suggest a return to employment and might result in a reduction in the
compensation payment.
eSee app. II, military personnel, for exceptions to the offset
requirements.
Federal PSOs
aThere may be deviations from the 28-day cycle in certain circumstances.
bWhen totally disabled due to a traumatic injury, an injured employee may
receive continuation of pay for a period of up to 45 calendar days. OWCP
considers continuation of pay to be regular pay, not workers'
compensation, and the salary is subject to the usual taxes and payroll
deductions. Continuation of pay can run consecutively or intermittently.
cCurrently, the GS-15, step 10, pay level is $116,517. This maximum does
not apply to any employee whose disability is a result of an assault that
occurs during an assassination or attempted assassination of a federal
official.
Selected state and local PSOs
California
aState and local safety workers injured in the line of duty are entitled,
regardless of length of service, to 1 year's leave of absence without loss
of salary, tax-exempt.
bFor most injuries, receipt of temporary disability benefits is limited to
104 weeks (2 years). However, benefit receipt can be extended for up to
240 weeks over 5 years for hepatitis, amputations, severe burns, HIV, high
velocity eye injuries, chemical burns to the eyes, pulmonary fibrosis, and
chronic lung disease.
cFor state and local safety workers, the maximum allowable amount of
average weekly earnings is always used in the calculation, regardless of
actual earnings. For other non-safety workers, the calculation is based on
the employee's average weekly earnings prior to injury (up to the
maximum).
dThe disability rating is based on the nature of the physical injury or
disfigurement, then adjusted based on the employee's occupation, age at
time of injury, and diminished future earning capacity.
eVocational rehabilitation services were eliminated effective January 1,
2004, and replaced with this job displacement benefit, which provides a
voucher for training ranging from $4,000 to $10,000 based on the
employee's level of injury.
fThe temporary disability payment rate is adjusted periodically by the
state legislature to reflect salary increases. Beginning January1, 2006,
the maximum temporary disability payment rate will be adjusted annually to
reflect the percentage increase in the state average weekly wage (or
remain at $1,260, whichever is greater). However, an individual's payment,
once determined, generally does not change. An employee must receive
temporary disability benefits for 2 years before being eligible to have
their payment adjusted; therefore, only those qualifying for extended
benefits (see endnote a above) would be eligible for such an increase.
Similarly, an individual's permanent disability payment, once determined,
does not change, except for life pensions.
gIf no offer of comparable work from previous employer, benefits are
increased 15% after 60 days.
Florida
aLaw enforcement officials are covered if they are discharging duties
under the aegis of the state and in circumstances consistent with their
responsibilities.
bMembers of the special risk class include certain law enforcement
officers, firefighters, and correctional officers.
cCertain law enforcement officers, including Highway Patrol Officers, are
eligible to continue in full-pay status if they sustain a malicious injury
caused by another person. According to officials, officers are eligible to
receive full pay for up to 2 years. There are also provisions for
disability leave with full pay, at the employer's discretion. Under their
collective bargaining agreement, Miami Firefighters can receive
continuation of pay for up to 210 days, depending on the seriousness of
the injuries. The clock on these benefits runs concurrently with workers'
compensation temporary disability benefits.
dAverage weekly wage is calculated based on the 13 weeks prior to the
injury.
eBenefits are provided according to the following schedule: 2 weeks for
each percentage point of disability from 1 to 10%; 3 weeks for each
percentage point of disability from 11 to 15%; 4 weeks for each percentage
point of disability from 16 to 20% and 6 weeks for each percentage point
of disability from 21% and higher. According to agency officials, most
employees would not receive benefits for the maximum length of time. (This
schedule is established separately by the state of Florida, and
incorporates, but expands upon, the AMA Guides.)
fThe supplements cease unless the employee is not eligible for Social
Security benefits (in which case the supplements continue), or unless the
injury occurred after the age of 70 (in which case benefits are payable
for a maximum of 5 years after the determination of permanent total
disability). Florida State Highway Patrol Officers pay into Social
Security, while Miami Firefighters do not.
gPermanent total disability supplements together with permanent total
disability may not exceed the statewide average weekly wage.
hFor each week that the employee earns income equal to or greater than his
or her average weekly wage, permanent impairment benefits are payable at
37.5% of the average weekly temporary total disability benefits.
iThere is no offset with permanent impairment benefits.
Indiana
aIn Indiana, state statutes allow some public employers to opt out of the
state's workers' compensation program, and we found that both the Indiana
State Police and the Indianapolis Fire Department had opted to provide
disability benefits only from their pension funds.
Montana
aMontana Highway Patrol Officers and Billings Firefighters have
continuation of pay for up to 1 year. An official told us this policy was
flexible with respect to Highway Patrol Officers and that extensions can
be granted. The clock on these benefits runs concurrently with workers'
compensation temporary disability benefits.
bAge, education, and manual versus sedentary labor are the other factors.
cOr until eligible for either Social Security retirement benefits or
benefits from an alternative system to Social Security. However, Montana
Highway Patrol Officers and Billings Firefighters do not pay into Social
Security, and program officials advised us that there is no case law
defining an alternative to Social Security.
New Jersey
aAccording to officials from the New Jersey State Police, Division of
Human Resource, and the Newark Fire Department, there is no provision for
continuation of pay for State Police Officers or Newark Firefighters.
However, State Police Officers may take sick leave until they are able to
return to duty or retire, generally for a maximum of 1 year, but longer if
it appears they will be able to return to duty with more time. Newark
Firefighters may take up to a year of sick leave for any injury (either
work-related or non-work-related) that prevents them from working.
bA "scheduled" loss is one involving arms, hands, fingers, legs, feet,
toes, eyes, ears, or teeth. A "non-scheduled" loss is one involving any
area or system of the body not specifically identified in the schedule,
such as the back, the heart, or the lungs.
cAn additional amount of 30% of the award is added as a lump-sum payment
for individuals with an amputation of a body member.
dHowever, workers whose total disabilities occurred prior to 1980 are
entitled to a special adjustment.
eIf an injured employee participates in physical or educational
rehabilitation as ordered, and can show that because of the disability it
is impossible to obtain wages or earnings equal to those earned at the
time of the accident, further weekly payments can be made, minus the
amount the employee is able to earn compared with the wages received at
the time of injury. If the employee's wages or earnings equal or exceed
wages received at the time of injury, then the compensation rate is
reduced to $5.00.
fAccording to a program officials, if a government worker in New Jersey
has an accidental disability pension (that is, covering only work-related
injuries), the pension plan would take the offset. If the government
worker has an ordinary disability pension (that is, covering
non-work-related injuries), workers' compensation would take the offset.
However, the additional lump-sum amount for amputation of a body member is
not subject to offsets.
Texas
aEffective June 17, 2005, a new state law (HB 1428) allows law enforcement
officers, including State Troopers, injured in the line of duty as a
result of an "assaultive" offense to receive up to 1 year of leave without
a reduction in salary before collecting workers' compensation benefits.
Municipal firefighters injured in the line of duty can receive full pay
for 1 year, with an extension at the discretion of the local governing
body. According to officials, the Houston City Council can extend this
leave up to 2 years in total, with proper medical documentation and a
clear expectation of the firefighter returning to work.
bThe average weekly wage equals 13 weeks' pre-injury salary divided by 13.
cAccording to officials, benefit levels are set according to the law in
effect at the date of injury, and historically do not change for those
already receiving benefits at the time of a change in the law, except for
those receiving lifetime income benefits.
Appendix II: Disability Retirement Benefits Programs Appendix II:
Disability Retirement Benefits Programs
Program name/
administering Disability retirement
agency Injuries covered payments Tax exemptions
Military
personnel
Disability Injuries covered Recurring monthly Military
Retirement and are those which: payment available for disability
Disability servicemembers who are retirement
Severance Pay/ o are incurred found unfit for duty, benefits are
Department of or aggravated and who have either 20 taxable, with
Defense (DOD) while member is years of service or some exceptions.
entitled to have a disability rated A portion of
basic pay; at least 30%.c disability
o are incurred retirement pay
in line of duty Payment calculation still may be
while member is tax-exempt under
on active duty; Basic payd times the the following
and greater of either: conditions:c
o are or may
be permanent.a o the percentage of 1 - If the
disability or member's
Injury cannot be o 2.5% times the disabilities are
the result of number of years of combat-related.
intentional service.
misconduct or 2 -
willful neglect, Payment cap Alternatively,
and not incurred if the member
during a period of Cannot exceed 75% of was entitled to
unauthorized basic pay, regardless receive a
absence.b of calculation method. disability
payment before
Length of service September 24,
requirements vary 1975; or on
for different active duty, a
types of benefits. member of a
reserve
component, or
under a binding
written
commitment to be
a member on
September 25,
1975.
Federal PSOs
Federal Any disease or A recurring monthly FERS benefits
Employees' injury, payment is provided. are federally
Retirement occupational and taxable.
System (FERS)/ non-occupational, Payment calculation
Office of causing a civilian (continued)
Personnel federal employeea If not yet eligible for
Management to become unable normal retirement,
to perform useful disability retirement
and efficient payments are calculated
service in their as follows:
position.b
Employees must o During the first
have at least 18 year, disability
months of retirement payments
creditable service are 60% of the
to qualify. average high-3
salary,c minus 100%
of any Social
Security disability
benefits to which
entitled (but not
less than the normal
retirement benefit
based on age and
length of service).
o During the second
and subsequent years
of disability until
reaching age 62,
payments are 40% of
the average high-3
salary, minus 60% of
any Social Security
disability benefits
to which entitled
(but not less than
the normal
retirement benefit
based on age and
length of service).
o Once reaching age
62 disability
retirement payments
are calculated based
on the formula for
normal retirement
benefits:
o If less
than 20
years of
service,
including
time on
disability:
1.0% times
high-3
average
salary times
years and
months of
service.
Receipt of other income and benefits
Cost-of-living Disability compensation
adjustments Post-injury wages payments
COLAs are provided Cannot receive with Can receive concurrently with
annually, based on the military earnings, VA service-connected
increase in the most foreign disability compensation, with
Consumer Price Index. government offset.f Exceptions to the
employment, or offset are made for the
federal judgeships. following special groups:
Can receive with most
other public and 1 - For those with a
private employment. disability rating of 50% or
more, and who either were
retired for length of
service,g or retired for
disability but with a length
of service retirement
entitlement (that is, with 20
years or more of service),
the offset is being phased
out.h
2 - For those with a
disability rating of 100% and
length of service retirement
entitlement (that is, with 20
years or more of service),
there is no offset).i
3 - Alternatively, retired
servicemembers with
combat-related injuries and
20 years or more of service
may be eligible to receive a
special benefit equal to the
amount of the offset,
tax-exempt.j
FERS benefits are Can receive earnings Cannot receive concurrently
adjusted annually for in addition to FERS with total or partial
cost of living based disability retirement disability compensation
on the Consumer Price benefits if age 60 or benefits based on wage loss.
Index, generally over, or if under age However, can receive
beginning after the 60 and earnings are concurrently with a schedule
first year of less than 80% of the award, with no offset.
entitlement.e current basic rate of
pay for the previous
position.f
Program name/
administering Disability retirement
agency Injuries covered payments Tax exemptions
(Federal PSOs - continued)
o If 20 years of
service or more,
including time on
disability: 1.1%
times high-3
average salary
times years and
months of service.
In addition to
counting years on
disability as years
of service, a new
high-3 average salary
is calculated taking
into account salary
increases based on
COLAs during the
period of time
receiving disability.
If eligible for
normal retirement
under the special
rules that apply to
most federal
PSOs-that is, age 50
with 20 years of
service, or at any
age with 25 years of
service-then
disability retirement
payments are
calculated using a
different formula, as
follows:
o 1.7% of the
average high-3
salary times years
of service up to
20, plus 1.0% of
the average high-3
salary times years
of service
exceeding 20.d
Payment cap
None specified.
Selected state
PSOs
o California State Highway Patrol Officers
Industrial A work-related A monthly industrial According to
Disability illness or injury disability retirement program
Retirementa/ that is of a payment is paid for officials, the
California Public permanent or the remainder of life amount of
Employees' extended and (or until the payment based on
Retirement System uncertain employee recovers and the first 50% of
duration, and returns to work). final
that prevents the compensation is
officer from Payment calculation treated as
performing his or federally
her job for the o For those not tax-exempt. Any
current employer yet eligible for additional
or any other normal retirement amount received
employer under based on age and based on years
the same length of service of service is
retirement (age 50 with at treated as
system. Highway least 5 years of federally
Patrol Officers service for taxable.
can qualify for Highway Patrol
industrial Officers),
disability industrial
retirement disability
regardless of age retirement
or length of payments are
service.b generally 50% of
final
compensation.
o For those
eligible for
normal retirement,
industrial
disability
retirement
payments are
calculated based
on the formula for
normal retirement:
for Highway Patrol
Officers, this
formula is 3% of
final compensation
for each year of
service.
Payment cap
90% of final
compensation.
o Florida State Highway Patrol Officers
Florida Any illness or Recurring monthly According to
Retirement injury causing payment provided for state officials,
System/ Florida total and the remainder of the disability
Department of permanent life. portion of a
Management disability that disability
Services, arises out of the Payment calculation retirement
Division of performance of pension is
Retirement job duties. Must Payments are 65% of treated as
have total and average final federally
permanent compensation,b or tax-exempt (that
disabilities that normal retirement is, 65% of
prevent any benefits (based on average final
useful and age and length of compensation is
efficient service service), if greater. treated as
as an officer or The formula for tax-exempt). If
employee. normal retirement
benefits is 3% of (continued)
average final
compensation for each
year of special risk
service.c
Receipt of other income and benefits
Disability
Cost-of-living compensation
adjustments Post-injury wages payments
COLAs are based Cannot receive earnings with Can receive
on the Consumer industrial disability retirement concurrently with
Price Index for payments if the individual continues industrial
all United States to work in a position similar to the disability
cities, up to a one from which retired on disability. retirement
maximum of 2% per Otherwise, can receive earnings with payments with no
year. The such payments up to a combined amount offset.
adjustments are that is 100% of the maximum earnable
paid the second compensation of the pre-injury
calendar year of position. If earnings, plus the
retirement, then industrial disability retirement
every year payment, exceed the maximum earnable
thereafter. compensation level, then the
retirement payment will be reduced to
stay within the 100% earnings
limitation.c
An annual COLA of Cannot receive substantial earnings According to
3% is provided, with disability retirement benefits, program officials,
pro-rated for the as recipients cannot be gainfully workers'
first year of employed by any employer. compensation
benefit receipt. payments can be
received
concurrently with
disability
retirement
payments, but the
workers'
compensation
benefit is offset
if combined
benefits exceed
100% of the
employee's
pre-injury average
weekly wage.
Program name/
administering Disability retirement
agency Injuries covered payments Tax exemptions
(Florida - continued)
Tuberculosis, heart Payment cap payments are
disease, greater based
hypertension, 100% of pre-injury on the normal
hepatitis, or average weekly wage. retirement
meningococcal formula, the
meningitis are added portion
presumed to be is treated as
incurred in the federally
line-of-duty.a No taxable.
length of service
requirement.
o Indiana State Police Officers
Police Benefit Any injury incurred Recurring monthly According to a
Fund, by a State Police payments are provided program
Supplemental Officer while in until the disability manager,
Trust Agreement the performance of no longer exists, disability
of 1987a/ Indiana duty that results death occurs, retirement
State Police in disability. No retirement occurs, or benefits are
Department, length of service the later of the date treated as
Pension Advisory requirement. the officer is federally
Board credited with 25 tax-exempt.
years of service or
the date the officer
has received all
available sick leave
benefits and
long-term disability
insurance payments
(but not to exceed 2
such years).
Payment calculation
o Unable to
return to duty:
Payments are 70%
(50% provided by
the supplemental
trust plus 20%
provided by
insurance
coverage) of the
officer's average
high-3 salary for
the first 2 years
of disability
beyond 365 days of
sick pay.b After
the first 2 years
at 70%, officers
receive 50% of
their average
high-3 salary.
o Unable to
perform any
gainful work
(permanent total
disability by
catastrophic
injury): Payments
are 100% of the
officer's salary
at the time of
injury.
For both categories,
an extra $40 is
provided for each
dependent parent and
child under 18 years
of age.c
After 25 years of
service including
years receiving
disability
retirement, benefits
are recalculated as
normal service
retirement benefits
at 50% of average
salary. d
Payment cap
Disability payments
may not exceed the
officer's basic
monthly retirement
payment at normal
retirement age.e
o Montana State Highway Patrol Officers
Highway Patrol Line-of-duty A recurring monthly Board
Officers' injuries that payment is provided. officials told
Retirement prevent an officer us that
System/ State of from performing Payment calculation disability
Montana, Public police duties. No retirement
Employees' length of service An employee with less benefits are
Retirement Board requirement. than 20 years of treated as
service credit federally
receives 50% of the taxable.
highest 36-month
average compensation.
An employee with 20
or more years of
service receives 2.5%
of highest 36-month
average compensation
for each year of
service.
Payment cap
None specified.
Receipt of other income and benefits
Cost-of-living Disability
adjustments Post-injury wages compensation payments
The benefit is According to a program Not applicable. State
recomputed annually manager, officers can Police Officers do not
based on the prior 36 receive earnings while receive recurring cash
months average monthly receiving disability payments from the
salary as of the retirement benefits state workers'
beginning of each fiscal provided that their new compensation program.
year for the officer's work activities are not
pre-injury position, as similar to those unable to
if the officer were be performed as a State
still on the force. Police Officer and that
all applicable department
rules are followed.
A guaranteed annual Can receive earnings if Cannot receive
benefit adjustment of 3% from a job outside of law disability retirement
is provided each year. enforcement. benefits concurrently
with compensation
benefits except for a
permanent partial
benefit award based on
a permanent
impairment.
Program name/
administering Disability
agency Injuries covered retirement payments Tax exemptions
o New Jersey State Police Officers
State Police Accidental disability A recurring monthly Accidental
Retirement benefits are provided payment is disability
System/ New for traumatic injuries provided. benefits are
Jersey Treasury sustained as a direct treated as
Department, result of an officer's Payment calculation federally
Division of duties, causing mental tax-exempt.
Pension and or physical Payments are equal According to a
Benefits incapacitation for the to 2/3 of final program
performance of the compensation. official, the
usual duties of a benefits also
police officer.a To Payment cap are treated as
qualify as a traumatic exempt from
injury, the injury None specified. state taxes
must not be caused by until the
the officer, must not officer reaches
be induced by normal age 65, at
work efforts, and must which point the
have a violent or benefits are
uncontrollable source. treated as
The injury is not taxable the
covered if an officer same as normal
is willfully negligent retirement
in causing the benefits.
disabling injury. No
length of service
requirement.
o Texas State Troopers
Occupational Any career-ending A monthly annuity According to
Disability injury or illness is provided for the program
Retirement sustained by a state life of the officials,
Program/ law enforcement officer, unless the benefits are
Employees officer while officer either treated as
Retirement performing duties returns to work or federally
System of Texas specifically related is found to be no taxable.
to law enforcement. No longer
length of service incapacitated.
requirement.
Payment calculation
o Less than 20
years of
service:
Payments are
equal to the
officer's
average monthly
compensation for
the highest 36
months of
service,
multiplied by
50%.
o 20 or more
years of
service:
Payments are
equal to the
officer's
average monthly
compensation for
the highest 36
months of
service,
multiplied by
2.8% for each
year of service
credit.
o Incapable of
substantial
gainful activity
(due to an
occupational
disability that
is considered a
total disability
under federal
Social Security
law): Payments
are increased to
100% of the
officer's
average monthly
compensation.
Payment cap
Benefits may not
total more than
100% of the
employee's average
monthly
compensation.
Receipt of other income and benefits
Cost-of-living Disability compensation
adjustments Post-injury wages payments
A COLA is added to Can receive earnings Can receive concurrently
benefits in the 25th from a new job not with accidental disability
month after the date covered by the State retirement benefits, but
the employee's Police Retirement the retirement benefit is
retirement, and then System. Also, if a offset dollar-for-dollar
with the first benefit member proves that the for any recurring workers'
issued each February disability no longer compensation benefits
after that.b exists, or no longer received.c
prevents a return to
duty as a police
officer, the member may
be re-employed and
re-enrolled in the
retirement system.
According to program Can receive earnings According to program
officials, with disability officials, can receive all
cost-of-living retirement benefits, but workers' compensation
increases are not only if the new position benefits and disability
automatic, but can be does not provide retirement benefits
granted by the state comparable pay to the concurrently with no
legislature on an ad pre-injury position, and offset.
hoc basis.a the state determines
that the officer is
unable to hold a
position offering
comparable pay as a
result of the injury.b
Disability
Program name/ administering retirement Tax
agency Injuries covered payments exemptions
Selected local PSOs
o California: City of Los Angeles Firefighters
Service-Connected The injury must A recurring The portion
Disabilitya/ Los Angeles leave the monthly of the
Department of Fire and firefighter retirement disability
Police Pensions incapable of payment is payment
performing the provided.b that is
duties of a based on
sworn employee Payment the
of the Fire calculation disability
Department, rating is
including light Payments range tax-exempt.
or restricted from 30% to 90% Any portion
duties, and be of the based on
caused by the employee's final years of
firefighter's compensation service is
duties. No depending on the subject to
length of level of taxation.
service disability, but
requirement. can be no less
than 2% for each
year of service
(for example, an
employee with 25
years of service
can receive no
less than a 50%
disability
payment).c
Payment cap
90% of the
employee's final
average salary.
o Florida: City of Miami Firefighters
Accidental/Service-Incurred Disabling injury A recurring According
Disability Retirementa/ City as a result of monthly payment to program
of Miami Fire Fighters' and an accident is provided. officials,
Police Officers' Retirement occurring on the benefits
Trust job, or as a Payment are treated
result of heart calculation as
disease, federally
hypertension or Payments are 2/3 tax-exempt.
tuberculosis. of final
Employee must be compensation, or
less than 60 average final
years of age to compensation,
be eligible, and whichever is
must be greater.b
permanently
incapacitated so Payment cap
that unable to
return to duty. None specified.
No length of
service
requirement.
o Indiana: City of Indianapolis Firefighters
1977 Police Officers' and Any impairment Recurring Based on a
Firefighters Pension and that prevents monthly payments private
Disability Fund/ Public police officers are provided for letter
Employees' Retirement Fund or firefighters two classes of ruling from
of Indiana from permanently duty-related the
or temporarily disability Internal
performing their benefits. Revenue
normal duties, Service,
or their normal Payment benefits
duties with calculations are treated
reasonable as
accommodation. o Class 1 federally
No length of benefits: tax-exempt
service Injuries until age
requirement. sustained 55, at
while on which time
duty, while the
off duty disability
though benefits
responding to are
an incident considered
as if on taxable
duty, or an normal
occupational service
disease.a retirement
Payments benefits.
range from 55
to 90% of (continued)
base salary,b
depending on
the degree of
impairment.
o Class 2
benefits: A
duty-related
diseasec
arising
directly out
of
employment.d
Payments are
22% of base
salary, plus
0.5% times
the number of
years of
service up to
30 years,
plus an
additional
amount of 10
to 45% based
on the degree
of
impairment.
o
Recalculation
at age 52:
When
employees
reach age 52,
both Class 1
and Class 2
benefits are
recalculated
based on the
formula for
normal
service
retirement:
50% of base
salary, plus
1% for each 6
months of
active
service over
a 20-year
period.
Calculation
is based on
the greater
of either
Receipt of other income and benefits
Cost-of-living Disability
adjustments Post-injury wages compensation payments
A COLA is provided Can receive outside Cannot receive
yearly based on the earnings with no statutory concurrently with
Consumer Price Index. restrictions. According to disability retirement
The adjustment can be city officials, pensioners benefits. Moreover, a
either a decrease or an are permitted to hold other firefighter who is
increase, up to a jobs and earn income as granted disability
maximum of 3%. long as they are not retirement after
violating the restrictions receiving workers'
of their disability (that compensation benefits
is, engaging in physical must repay all the
activities that their workers' compensation
disability retirement claim cash benefits received
indicated that they could to date.d
not do).
A COLA is provided for Can receive earnings from Can receive
disability retirees age alternative employment compensation benefits
50 years or older. The while receiving disability concurrently with
amount of the COLA is retirement benefits.c retirement benefits,
determined by the with offset if the
difference between combined benefit
projected and actual amount exceeds 100% of
earnings of the Trust, the pre-injury average
and the retiree's years wage.
of service and years
retired.
Benefits may be According to program Not applicable.
increased or decreased officials, firefighters on Firefighters in
in accordance with the disability may receive Indianapolis do not
Consumer Price Index, earnings from other receive recurring cash
capped at 3%. employment, as long as it payments from the
is not associated with an state's workers'
accommodation or light duty compensation program.
with the same employer.
Program name/
administering Disability retirement
agency Injuries covered payments Tax exemptions
(Indianapolis - cont'd)
normal service
retirement with 20
years of service, or
service retirement
with the total number
of years from start
of employment to age
52.
Payment caps
o Class 1: 90% of
a first-class
firefighter's
monthly salary.
$9,480 for 23
years
o Class 2: 82% of
a first-class
firefighter's
monthly salary.
$6,222 thereafter
o Recalculation
at age 52: 74% of
base salary.
$275,658
10.931
(compensation)
o Montana: City of Billings Firefighters
Firefighters' Any disability that A recurring monthly Board officials
Unified occurs while the payment is provided. told us that
Retirement employee is in a disability
System/ State position covered under Payment calculation retirement
of Montana the Firefighters' benefits are
Public Unified Retirement An employee with less treated as
Employees' System and that causes than 20 years of federally
Retirement the termination of service credit taxable.
Board service. The receives 50% of the
disability does not highest 36-month
have to be average compensation.
work-related. Periodic
reviews are conducted An employee with 20
by the Board to or more years of
determine whether the service receives 2.5%
employee still of the highest
qualifies for 36-month average
disability retirement. compensation for each
No length of service year of service.
requirement.
Payment cap
None specified.
o New Jersey: City of Newark Firefighters 10.051 (retirement)
Police and Accidental disability A recurring monthly According to
Firemen's benefits are provided payment is provided. program
Retirement for traumatic injuries officials,
System/ New sustained as a direct Payment calculation accidental
Jersey result of a disability
Department of firefighter's duties,a Payments are 2/3 of retirement
the Treasury, causing total the firefighter's benefits are
Division of permanent inability to salary at the time of treated as
Pensions and perform the functions the traumatic injury exempt from
Benefits of a firefighter.b To or at the time of state taxes
qualify as a traumatic retirement, whichever until the
injury, the injury is greater. firefighter
must not be caused by reaches age 65,
the firefighter, must Payment cap at which point
not be induced by the benefits
normal work efforts, None specified. are treated as
and must have a taxable the
violent or same as normal
uncontrollable power. retirement
No length of service benefits. With
requirement. respect to
federal
taxability,
recipients are
directed to
contact the
Internal
Revenue
Service.
Not applicable
Receipt of other income and benefits
Cost-of-living Disability compensation
adjustments Post-injury wages payments
A guaranteed annual Can receive earnings from Cannot receive disability
benefit adjustment of a new position outside of retirement benefits
3% is provided each the retirement system with concurrently with
year. no restrictions. However, compensation benefits
according to city except for a permanent
officials, employees who partial benefit award
are hired back into a city based on a permanent
position where they are impairment.
covered by the same
retirement system may work
no more than 960 hours per
year.
A COLA is added to Can receive earnings from Can receive concurrently
benefits in the 25th a new job not covered by with accidental
month after the date the Police and Firemen's disability retirement
the employee's Retirement System. Also, benefits, but the
retirement, and then if a member proves that retirement benefit is
with the first the disability no longer offset dollar-for-dollar
benefit issued each exists, or no longer for any recurring
February after that.c prevents a return to duty workers' compensation
as a firefighter, the benefits received.d
member may be re-employed
and re-enrolled in the
retirement system.
o Indianapolis Firefighters
Program name/
administering Disability retirement
agency Injuries covered payments Tax exemptions
o Texas: City of Houston Firefighters $5,667
On-Duty On-duty disability Two types of recurring According to
Disability benefits are monthly on-duty program
Retirement/ provided for disability retirement officials,
Houston injuries received benefits are disability
Firefighters' while on duty as a available. retirement
Relief and firefighter with no benefits are
Retirement Fund length of service Payment calculations treated as
requirement. For federally
firefighters with o Occupational tax-exempt.
at least 6 years of disability However, any
service, heart (incapable of amount received
disease, lung performing the due to the
disease, and cancer duties of a normal
are presumptive firefighter, but retirement
on-duty may be capable of calculation
disabilities if a other employment): that is greater
physical Payments are based than the
examination showed on either 50% of disability
no signs of the average monthly retirement
disease prior to salary, or the benefit
employment or prior formula for normal otherwise
to claiming the retirement based on calculated is
disability. length of service, subject to
whichever is taxation.
greater.a
o General
disability (unable
to maintain any
gainful
employment):
Payments are based
on either 75% of
average monthly
salary, or the
formula for normal
retirement,
whichever is
greater. o Newark
Firefighters
Payment cap
80% of average monthly
salary (the maximum a
firefighter can
receive for normal
retirement based on
length of service).
Additional benefits
o A lump-sum
payment of $5,000
is provided to most
firefighters
retiring on either
disability
retirement or
normal retirement.b
$4,722
o A monthly
supplemental
payment of $150 is
paid to retirees,
including
disability
recipients.
$275,658
o An annual
supplemental
benefit is provided
that varies
depending on the
monthly payment
amount and length
of time retired.
8.632
(compensation)
o Houston Firefighters
$2,336
$5,817
No offset
$8,153
$275,658 plus $5,000j
10.051
Receipt of other income and benefits
Cost-of-living Disability
adjustments Post-injury wages compensation payments
A 3% annual COLA is Can receive earnings from According to program
provided to other employment while officials, can receive
occupational receiving occupational workers' compensation
disability retirees disability benefits. benefits concurrently
beginning at age 48, However, can receive general with disability
and to general disability benefits only if retirement benefits
disability retirees at cannot maintain any gainful with no offset of the
any age. employment, and the Board of retirement benefit.
Trustees requires annual
income reports to be
submitted to monitor
compliance.
Source: GAO analysis based on statutes, regulations, program policies, and
interviews with program officials. $13,529
$30,272
Military personnel $84,186
aInjured members continue to draw their regular salary while undergoing
fitness evaluation until they return to duty or are released from service.
(Release from service may be due to separation, retirement, or placement
on the temporary disability retirement list.) According to DOD
instructions, referral for evaluation shall occur within 1 year, but there
is no binding time limit for the end of continuation of pay. Pay received
during this time is taxable, the same as pay received pre-injury. Under
temporary disability retirement, recurring monthly payments are available
in situations following the period of continuation of pay if the member is
still unfit for duty, but the disability is not determined to be of a
permanent nature and stable. Qualifications and payment amounts are the
same as for permanent disability retirement, except that the minimum
payment is 50% of basic pay or of the high 3-year average, whichever is
applicable. Disability can be considered temporary for up to 5 years
maximum. After 5 years, the member must be: (1) placed either on the
permanent disability retirement list or 20-year (normal service)
retirement list; (2) separated with disability severance; or (3) returned
to active duty or reserve service. During temporary disability retirement,
the member is treated the same as a regular retiree. On the one hand,
housing benefits are no longer provided, and the time does not count
toward a regular service retirement. On the other hand, the member is
eligible to receive VA service-connected compensation benefits (with
offset to the temporary disability retirement payment, as appropriate).
The servicemember is subject to medical examination at least once every 18
months.
bGenerally, servicemembers must have 8 years of active service prior to
the date of disability separation or retirement for any disability
associated with a pre-existing condition to be covered. Selected federal
PSO
cThis applies to servicemembers on active duty for more than 30 days, and
servicemembers on active duty for 30 days or less and reserve component
members performing inactive-duty training or funeral honors duty, with
some restrictions. Those who do not meet these requirements may be
eligible for disability severance: a lump-sum payment for servicemembers
who have at least 6 months of service and are found unfit for duty, but
who have fewer than 20 years of service and whose disability is rated less
than 30%. (According to DOD officials, both inactive duty and active duty
service can count toward the 6-month requirement, the same as computed for
entitlement to retirement pay.) Disability severance is calculated based
on the highest monthly basic pay the member would have been entitled to by
law, times twice the number of years of service (up to 12), or in the case
of a reserve component member, the equivalent number of years creditable
toward a reserve retirement. Trainee(GS-10)
dFor servicemembers with a date of initial entry into military service on
or after September 8, 1980, the high-3 average of basic pay is used in the
computation. For reserve component members, it is the average of the last
36 months of basic pay as though the member were on full-time active duty.
Field, non-supervisory position (GS-13)
eOnly the amount of payment calculated based on basic pay and disability
rating is tax-exempt. If the actual payment received is greater because it
is calculated based on length of service, then the portion of the payment
in excess of the basic pay and disability rating calculation is taxable.
Supervisory/management position (GS-14)
fSee app. I, military personnel, for details on this program.
gIncluding reserve retirees eligible to receive retired pay. o FBI agent
hThe phase out is taking place over a 10-year period, beginning on January
1, 2004, under a program entitled Concurrent Retirement and Disability
Payments. $35,658
iTo qualify for this exception to the offset, currently veterans cannot be
receiving compensation at the 100% disability level due to
unemployability. However, in 2006, legislation was enacted authorizing
these veterans to qualify for the exception to the offset as well,
beginning in fiscal year 2010. $55,837
jThis benefit, called Combat-Related Special Compensation, is provided to
servicemembers who have a disability incurred as a direct result of armed
conflict, especially hazardous service, training exercises that simulate
war, or caused by an instrumentality of war. Servicemembers must have 20
years or more of service (that is, be eligible for normal retirement); if
part of the reserve component, members must be age 60 and have 20
qualifying years of service (that is, be eligible for reserve retirement).
$65,983
Selected state PSOs
Federal PSOs Entry-level officer
aUnless hired before 1984 and opting to remain under the Civil Service
Retirement System. FERS generally covers all federal employees hired on or
after January 1, 1984. Sergeant
bThe disabling injury must be expected to continue for at least 1 year
from the date the application for disability retirement is filed,
accommodation of the disabling medical condition in the position held must
be unreasonable, and the individual must not have declined an offer of
reassignment to a vacant position. Chief or sheriff
cAverage high-3 salary is the average of the greatest 3 consecutive years
of earned wages in creditable service. If the employee did not work for 3
years, the average salary for the total period of creditable service is
applied.
dIf the PSO chooses to take normal voluntary retirement, instead of
disability retirement, the retirement benefit is calculated the same way,
but a special retirement supplement is also provided until age 62 that
approximates the Social Security benefit earned in federal service. After
the PSO reaches the minimum retirement age, if earnings from wages or
self-employment exceed the Social Security annual exempt amount, the
supplement will be reduced or stopped. o California Highway Patrol
eThe COLA is equal to the Consumer Price Index increase when the index
increase is between 0 and 2%; the COLA increase is 2% if the index
increase is between 2 and 3%; the COLA increase is equal to the index
increase less 1% when the index increase is greater than 3%. The COLA does
not apply to disability retirees receiving benefits equal to 60% of their
average high-3 salary (that is, in the first year of benefit receipt).
Those taking disability retirement after normal retirement age would begin
to receive the COLA immediately. $42,600
fThe Office of Personnel Management considers income from self-employment
and earned wages only. $51,804
$117, 960
Selected state PSOs
California o Florida Highway Patrol
aThis benefit is for work-related injuries only. A separate disability
retirement benefit exists for non-work-related injuries. $21,063
bMost non-safety workers only have access to disability retirement (not
industrial disability retirement) and must have 5 or 10 years of service
to qualify, depending on the specific provisions relevant to the plan for
that occupation. $26,084
cHowever, industrial disability retirement payments can be received with
earnings for up to 960 hours annually, with no limitation or offset, if
the individual is appointed during an emergency or to provide specialized
work for a limited duration. $56,484
Florida o Indiana State Police
aMembers who have previously retired under the normal retirement
provisions, or who have participated in the Deferred Retirement Option
Plan, are not eligible for disability benefits. $28,804
bBased on the highest 5 years under the Florida Retirement System. $33,758
cMembers of the special risk class, which includes State Highway Patrol
Officers, must be age 55 (or age 52 with 25 years of creditable special
risk service) to retire without having benefits reduced for not yet being
normal retirement age. $78,258
Indiana o Montana Highway Patrol
aThe Pension Trust Agreement has two systems: one covers employees hired
prior to July 1, 1987; the second covers employees hired on or after July
1, 1987, and after, or employees hired before July 1, 1987, who have
elected to receive coverage under the second system. This appendix
describes the benefits available for employees under the second, post-1987
benefit system. $23,000
bAccording to a program manager, officers with line-of-duty disabilities
are provided sick pay for 365 days, in addition to their sick leave
normally accrued. $31,000
cIn cases of permanent and total disability by catastrophic injury, an
officer's dependents may also attend a state higher education institution
at no cost. $40,000
dIf more than 25 years of service, then additional monthly retirement
benefits are provided as follows: 5% of the basic pension amount for each
additional year up to 28; plus 6% for each additional year up to 30; plus
7% for each additional year up to 32; plus 8% for each additional year up
to 34, up to a maximum of 78.5% of the average monthly salary.
eIf the officer has more than 25 years of service at the time of
retirement, the officer's normal retirement benefits would include
additional benefits with a higher cap, as noted above. o New Jersey
State Police
$39,255
$51,393
New Jersey $104,202
aMultiple types of retirement benefits are available, depending on the
circumstances. Accidental disability benefits are provided for
line-of-duty injuries caused by a traumatic event. The benefits provided
for accidental disability are greater than those provided for ordinary
(non-line-of-duty) disability.
bThe amount of the adjustment equals 60% of the percentage of change
between the average Consumer Price Index for the year in which the person
retired and the average Consumer Price Index for the 12-month period
ending August 31, immediately preceding the year the adjustment is
payable. o Texas State Troopers
cThe lump-sum compensation payments provided in cases of amputations are
excluded from this provision and may be received with no offset. $29,000
$43,400
Texas $78,258
aProgram officials noted that no COLAs have been granted for the past 3
years, nor are any projected for the next 3 to 5 years.
bProgram officials told us that even if an individual is working and
earning less than the pre-injury wage, disability retirement benefits may
still be withheld if it is determined that the individual is capable-based
on training, education, and experience-of earning comparable pay to the
pre-injury wage. Sources: Department of Defense, Office of Personnel
Management, and Department of Justice.
a For military personnel, the entry level salary is that of an E-2
enlisted member with less than 2 years of service, the midlevel salary is
that of a W-1 warrant officer with over 12 years of service, and the
senior level salary is that of an O-6 commissioned officer with over 26
years of service.
Selected local PSOs
Los Angeles To indicate how the difference between hypothetical and actual
salary levels would affect disability benefits provided, we compared the
monthly disability compensation and retirement payments generated in our
hypothetical scenarios for entry level ($20,000), midlevel ($60,000), and
senior level ($85,000) salaries, with the payment amounts that would be
generated based on the actual salaries in table 13 (assuming the same age
and length of service as in the corresponding hypothetical scenario). As
shown in table 14, the difference in monthly temporary compensation
payments based on the hypothetical salary levels compared with the actual
salary levels is relatively minor, in most cases, due to the use of a set
amount based on the disability rating (as in the military), or due to the
imposition of caps on maximum payment amounts in several states based on
the statewide average wage.
aThis summary covers members of Tier 5, which applies, according to
program officials, to most of the currently-employed firefighters.
However, some firefighters are covered under other tiers and other
provisions would apply. Table 14: Monthly Temporary Compensation Payments
Based on Actual versus Hypothetical Salary Levels
bOnce an employee has been on disability retirement for at least 5 years
and is subsequently determined to have recovered, the disability pension
can be reduced to a minimum of 30%, but it cannot be discontinued.
cTo determine the level of disability, the Board of Fire and Police
Pension Commissioners uses a disability rating worksheet developed by the
Department of Fire and Police Pensions. Entry level
dThis payback applies to all injuries previously claimed under workers'
compensation, regardless if the same or different from the injury claimed
as the basis for disability retirement benefits. The payback also includes
any attorney fees paid out of workers' compensation.
Mid level
Miami
aThere is also a lump-sum benefit provided to all firefighters by a
different state retirement program, the Miami Firefighters' Relief and
Pension Fund Board. The Pension Fund Board receives funds from state taxes
on property insurance premiums, and distributes them annually on an equal
basis to an individual account for each firefighter. Upon retirement, a
firefighter cashes out of the system and receives the amount in the
individual account, plus interest. In 2003, Miami received $4.4 million
from this fund and had approximately 500 active firefighters. Therefore,
each firefighter received approximately $8,800 in 2003 in his or her
Pension Fund account. According to officials, Miami Police Officers
receive a similarly-structured benefit through another program. Senior
level
bFinal compensation is the compensation rate at the time of injury.
Applicants are not eligible for additional benefits based on normal
service retirement eligibility: they must choose to take either normal
retirement or disability retirement. To take normal retirement, applicants
must be 50 years old with at least 10 years of creditable service, or have
combined age and creditable service of 64 years or more. Service
retirement is calculated at 3% per year of final average compensation for
the first 15 years of service, and 3.5% per year for every year beyond the
first 15 years.
cThe only restriction on earnings for an individual on accidental
disability retirement is that, if employed as a firefighter or police
officer elsewhere, or performing similar duties, the sum of current
earnings and the disability pension cannot exceed 100% of the pre-injury
earnings. If it does exceed 100%, then the disability pension may be
offset for any amount over 100% of the pre-injury earnings.
Payment based on actual entry level starting salary in 2000
Indianapolis Payment based on hypothetical salary of $20,000
aOccupational disease is "a disease arising out of and in the course of
employment."
bBase salary is stipulated in the bargaining contract between the union
and the city. As of 2005, base salaries ranged from $48,410 for a
third-year firefighter to $66,688 for a battalion chief. Payment based on
actual midlevel starting salary in 2000
cAccording to program officials, there are no internal guidelines to
differentiate between duty-related and occupational disease, and the
decision would be made on a case-by-case basis. Payment based on
hypothetical salary of $60,000
dThere must be a connection between the conditions under which the
firefighter performed his or her duties, the disease must be a natural
incident resulting from exposure during duties, and the job must be the
proximate cause of the disease.
Payment based on senior level starting salary in 2000
Newark Payment based on hypothetical salary of $85,000
aMultiple types of retirement benefits are available, depending on the
circumstances. Accidental disability benefits are provided for
line-of-duty injuries caused by a traumatic event. The benefits provided
for accidental disability are greater than those provided for ordinary, or
non-line-of-duty, disability.
bAccording to a program official, total and permanent disability for the
Police and Firemen's Retirement System means an inability to perform the
functions of a firefighter or police officer specifically, and does not
necessarily preclude future work in alternative occupations. Military
personnela
cThe amount of the adjustment equals 60% of the percentage of change
between the average Consumer Price Index for the year in which the person
retired and the average Consumer Price Index for the 12-month period
ending August 31, immediately preceding the year the adjustment is
payable.Set amount based on disability rating
dThe lump-sum compensation payments provided in cases of amputations are
excluded from this provision and may be received with no offset. (same)
Houston (same)
a The formula for calculating normal service retirement is 50% of average
monthly salary for 20 years of participation, plus 3% of average monthly
salary for each year of participation over 20 years up to a maximum of
80%. (same)
bThe lump-sum payment is not issued to deferred retirees-that is, members
working 10 to 20 years who do not start receiving their pensions until age
50.
(same)
(same)
No offset (because 20 or more years of service and a 100% disability
rating)
$7,612
$1,466,866
o Without attendant allowance
10.931 (compensation)
$1,522,015
o Indiana State Police
Not applicable
$7,083 for 2 years
1.864 (for 2 years)
o Montana Highway Patrol
(Table 12: Quadriplegia-continued)
No offset
$275,658
10.051
$2,253
Cannot be received concurrently
$796,056
bAnnuity factors take into account mortality rates, discount rates, and
cost-of living adjustments, as appropriate. Where different provisions or
changes in benefits over time require different annuity factors, the
factors are used proportionately as appropriate.
cAccording to VA officials, a veteran with quadriplegia would qualify for
the SMC rate of R-2 (the highest compensation rate provided) for loss of
use of multiple extremities and in need of a high level of care.
fIn Florida, the COLA for permanent total disability compensation benefits
ends at age 62.
jHouston provides a lump-sum payment of $5,000 to most firefighters
retiring on either disability retirement or normal retirement. An
additional annual retirement benefit is also provided depending on the
monthly payment and length of time retired. Due to variability from
year-to-year and person-to-person, this additional benefit is not included
in these calculations. (See app. II, City of Houston Firefighters, for
details.)
Appendix III: Other Disability Benefit Programs Appendix III: Other
Disability Benefit Programs Federal FBI agent
$1,961
Administering Disability
agency Injuries covered payments Tax exemptions
Public Safety Officers' Benefits Program
Department of All line-of-duty A one-time The Internal
Justice, Bureau injuries to a federal, lump-sum payment Revenue Service
of Justice state, or local PSO is provided to has issued a
Assistance that are permanently all qualifying decision letter
and totally disabling PSOs.b indicating that
(that is, injuries the program's
that permanently Payment death benefit is
prevent a PSO from calculation not federally
performing any gainful taxable. According
work).a To qualify, The payment to Department of
the injuries must be amount is the Justice officials,
the direct and same for all the Internal
proximate result of a qualifying PSOs Revenue Service
catastrophic injury injured in a has not issued a
sustained in the line given year. For comparable
of duty, and not injuries decision letter
result from incurred in with regard to the
intentional fiscal year program's
misconduct, 2005, the disability
intoxication, or gross payment amount benefit. $3,640
negligence. No length was set at
of service $275,658.c $3,640
requirement.
o California
Highway Patrolb
Payment cap
$3,640
Not applicable.
$3,640
Social Security Disability Insurance (SSDI) $3,640
Social Security Any physical or mental A monthly SSDI benefits
Administration impairment that disability receive the same
precludes an employee payment is federal tax
from performing provided treatment as
substantial gainful beginning the Social Security
activity, which is sixth month retirement/old age
expected to last at after the date benefits. Portions
least 1 year or result of onset of the of SSDI benefits
in death.a All disability.d are federally
employees who $1,170 taxable if they
contribute into the exceed monetary
Social Security system $1,111 thresholds. For
and who have at least example, in 2005,
40 quarters of Payment if an individual's
coverage are calculation income is between
eligible.b Younger $25,000 and
employees may qualify The amount of $34,000, up to 50%
with fewer quarters of benefits of benefits may be
coverage.c If received is taxable. If income
alcoholism or drug dependent on is above $34,000,
addiction is lifetime average up to 85% of
determined to be a earnings and benefits may be
contributing material contributions taxable. $2,821c
factor to the into Social
disability, then the Security. Added
Social Security benefits may
Administration may also be payable
deny benefits. o to certain
Florida Highway Patrol eligible family
members.e $1,449
$2,821c
Payment cap
The cap is based
on the formula
for calculating
benefits. In
2005, the
maximum payment
was $1,939 per
month.f $2,821c
o Indiana State Policed
Receipt of other income and benefits
Cost-of-living Disability compensation and
adjustments Post-injury wages retirement payments
Not applicable o Montana Highway Patrol
Not applicable. To qualify for the Can be received
(Single lump-sum program's disability concurrently with most
payment.) $1,111 benefit, a PSO must not other benefits, with no
be able to perform any offset in most cases.d
gainful work. $1,722
$2,253c
$2,222
$2,253c
o New Jersey State Police
$2, 290
$1,167
$2,886c
$2,886c $2,886c
A yearly COLA is Can receive SSDI with Can receive concurrently
provided based on the earnings, up to certain with disability
Consumer Price Index. limits. Generally, in compensation benefits, but
o Texas State 2005, earnings could the combined amount of
Troopers not exceed $830 per benefits cannot exceed 80%
month (or $1,380 per of pre-injury earnings. In
month in cases of most cases, the SSDI
blindness). $1,692 benefit is offset to adhere
to this limit.g $1,167
Can receive SSDI
concurrently with
disability retirement
benefits. Offsets to
disability retirement
benefits vary.
$2,336c
$2,336c
$2,336c
$2,336c
Source: GAO analysis based
on data in table 13,
program summaries in app.
I, and the hypothetical
scenarios in app. IV.
aVA compensation benefits
for military personnel do
not differentiate between
temporary and permanent
disability.
bIn California, statutes
call for PSOs to be paid
the maximum allowable
payment, regardless of
actual earnings.
cBased on a payment cap.
dIndiana State Police do
not receive compensation
payments from the state's
workers' compensation
program.
Source: GAO analysis based on statutes, regulations, program policies, and
interviews with program officials. Table 15: Monthly Disability Retirement
Payments Based on Actual versus Hypothetical Salary Levels
Public Safety Officers' Benefits Program
aThe Public Safety Officers' Benefits Program also provides a death
benefit that is the same dollar amount as the disability benefit. Entry
level
bIn addition, the program offers an educational benefit, capped at $803
per month in fiscal year 2005, to spouses and dependents of PSOs who
qualify for either the death or disability benefit.
cThe availability of the disability benefit is subject to federal
appropriation. By statute, the payment amount is adjusted annually based
on the Consumer Price Index. Mid level
dBenefits provided by the Public Safety Officers' Benefits Program are
reduced (offset) by benefits authorized by District of Columbia Code S:
4-622, and issued by the District of Columbia to employees who generally
qualify as PSOs. FECA benefits for non-federal law enforcement officers
who incur total and permanent disabilities resulting from law enforcement
activities while interceding in crimes against the United States are
offset by the amount of the Public Safety Officers' Benefits Program
benefit.
SSDI Senior level
aThere is no requirement that the injury by work-related.
bThe Social Security Administration bases quarters of coverage on
earnings, using work history to determine eligibility for retirement,
disability benefits, or survivor benefits. Twenty of the quarters of
coverage must have come within 10 years of the date of onset of the
disability. In 2005, the Social Security Administration awarded one credit
for each $920 of earnings, up to the maximum of 4 quarters of coverage per
year.
cFor individuals who are not yet age 31, they must have quarters of
coverage in at least half the quarters during the period that begins with
the quarter after attaining age 21 and ends with the quarter prior to
incurring the disability. Payment based on actual entry level starting
salary in 2000
dIndividuals may be eligible for Supplemental Security Income benefits if
they meet income and asset limits. Payment based on hypothetical salary of
$20,000
eAccording to the Commissioner, the amount of the additional benefits
payable to family members of an individual with disabilities varies, but
generally does not exceed 50% of the individual's benefit, and is limited
by law. She noted that in December 2005, the average monthly disability
benefit paid to an individual without dependents was $938, while the
average monthly disability benefit paid to an individual with dependents
(spouse and children) was $1,571.
fThis amount assumes the person is at full retirement age and has made the
maximum earnings contributions. For retirees born in 1939, full retirement
age is 65 and 4 months; for those born in 1940, it is 65 and 6 months.
Full retirement age will gradually increase to age 67 for those born in
1960 or later. Added benefits may also be payable to eligible family
members (see note e above). Payment based on actual midlevel starting
salary in 2000
gIn 14 states, the workers' compensation benefit is allowed the offset to
adhere to this limit, instead of the SSDI benefit. Payment based on
hypothetical salary of $60,000
Payment based on senior level starting salary in 2000
Payment based on hypothetical salary of $85,000
$3,640
Not applicable
$1,278
$2,886c
In contrast, disability retirement payments are generally calculated as a
percentage of pre-injury salary with more generous caps on maximum payment
amounts, if any. As a result, the difference in disability retirement
payments based on the hypothetical salary levels compared with the actual
salary levels is much more significant, as shown in table 15. Those
earning lower wages than in the hypothetical scenarios receive much lower
disability retirement payments, and those earning higher wages than in the
hypothetical scenarios receive much higher disability retirement payments.
Appendix IV: Hypothetical Scenarios and Calculation of Lifetime Disability
Benefits-Methods and Results Appendix IV: Hypothetical Scenarios and
Calculation of Lifetime Disability Benefits-Methods and Results Military
personnela
This appendix identifies the package of disability benefits available to
eligible military personnel and selected civilian PSOs injured in the line
of duty under varying circumstances. To illustrate the benefits available
to military personnel and civilian PSOs of varying ages, lengths of
service, and salary levels, we constructed five hypothetical profiles of
individuals, as follows: $338
(1) Age 20, 1 year of service, average salary: $20,000. $500
(2) Age 25, 6 years of service, high-3 average salary: $40,000.
(3) Age 35, 12 years of service, high-3 average salary: $60,000. $757
(4) Age 45, 22 years of service, high-3 average salary: $85,000. $1,500
(5) Age 55, 32 years of service, high-3 average salary: $85,000.
We selected the salary levels to reflect the general range of pay provided
to those in the military, and to those serving as PSOs across the country.
These salaries do not reflect the actual pay scales for servicemembers or
for any specific PSOs. For example, according to the military's pay scales
for 2005, an enlisted servicemember with 1 year of service would have
basic pay of $14,822; an officer with 1 year of service, $28,124. Entry
level salaries for state police officers in 2000 ranged from a low of
$21,063 in Florida to a high of $45,696 in Alaska. (See app. V for a more
detailed discussion of the impact of salary differentials.) $5,262
We selected the various ages and lengths of service to capture differences
that may exist in the benefits available to those employed for only a
year, compared with the benefits available to those who incur disabilities
after being employed long enough to qualify for normal retirement based on
age and/or years of service. We did this to be able to describe more fully
how the benefit programs work. No distribution of disabilities across the
various ages and lengths of service should be inferred from the
construction of these hypothetical profiles. $5,313
In addition, we created scenarios surrounding three different levels of
injury, as follows:
Injury level 1: Tinnitus. A ringing, swishing, or other type of noise that
seems to originate in the ear or head. Only the patient can hear the
noise. Federal FBI agentb
o 10 percent VA and DOD disability rating. $1,189
o Up to 5 percent can be added to a disability rating for
tinnitus in the presence of measurable hearing loss if it affects
activities of daily living, based on the AMA Guides for whole
person impairment. $667
o GAO assumption: physician assessment determines that the
civilian PSOs with tinnitus have a 5 percent impairment due to
hearing loss.
o GAO assumption: physician assessment determines that the
individual is able to perform a substantial portion of his or her
current job duties. $1,861
o GAO assumption: able to return to duty in previous position.
Injury level 2: Leg amputated below the knee. Removal of the lower
leg and foot due to injury, diabetes, frostbite, arteriosclerosis,
or other illness. $2,529
$2,000
o 40 percent VA and DOD disability rating. $3,258
o 32 percent physician disability rating based on AMA Guides for
whole person impairment.
o GAO assumption: physician assessment determines that the
individual is no longer able to perform a substantial portion of
his or her current job duties, but could be gainfully employed in
alternative job. Selected state PSOs
o GAO assumption: not able to return to duty in previous
position, but secures employment with alternative employer (not
under same retirement system) and earns 75 percent of previous
pay.
Injury level 3: Quadriplegia. Paralysis of all four limbs (both
arms and both legs) as from a high spinal cord accident or stroke.
o 100 percent VA and DOD disability rating.
o 100 percent physician disability rating based on AMA Guides for
whole person impairment.
o GAO assumption: physician assessment determines that the
individual is no longer able to perform the duties of his or her
current job and could not be gainfully employed in alternative
job.
o GAO assumption: Not able to return to duty in previous
position, nor secure gainful employment with alternative employer.
We selected these injuries to illustrate the range of benefits
provided based on degree of impairment: from a relatively minor
injury (tinnitus) that generally would not prevent an individual
from returning to duty; to a more serious injury (leg amputation)
that generally would prevent an individual from returning to duty,
but not from being employed in some other type of occupation; to a
very serious injury (quadriplegia) that generally prevents an
individual from any type of employment. o California Highway
Patrol
For each occupation and site, we calculated the monthly and
lump-sum benefits that would be provided for each individual
profile at each injury level from each relevant program, and had
our calculations reviewed and confirmed by cognizant agency staff.
We then calculated a combined monthly benefit amount of
compensation and disability retirement benefits. We took into
account any provisions requiring the offset of one benefit against
another, which is sometimes required when an individual is
eligible to receive benefits from multiple sources. Although
available from some programs, no added increments for dependents
were included. $1,775
Finally, we calculated the present value of the lifetime benefit
stream of monthly and lump-sum payments for each scenario. Present
value analysis relies on two basic assumptions: the expected
length of time benefits will be received, and the rate at which
future payments will be discounted (on the basis that a dollar
today is worth more than a dollar received a year from today). For
the first assumption, we used Social Security Administration
mortality data to estimate how long each hypothetical individual
would be expected to live. For the quadriplegia cases, we used
mortality data for males from the SSDI program to account for a
shorter expected lifespan.1 For the leg amputation and tinnitus
cases, we used general population mortality tables for males.2 In
all cases, we used data for males only as males account for a
sizable majority of both military personnel and civilian
PSOs.3$833
The second assumption about the discount rate involves assumptions
about inflation,4 the rate of interest absent inflation, and
cost-of-living adjustments (COLA). We assumed the rate of interest
absent inflation (the real interest rate) is 3 percent and that
inflation is constant at 3 percent annually, resulting in an
assumed nominal interest rate (which is the sum of the real
interest rate and inflation) of 6 percent. In specifying a
discount rate, our present value analysis takes into account
whether the program has a COLA provision and the specific
provisions for how the COLA is calculated. If the COLA is equal to
the Consumer Price Index, we categorized it as full. If the COLA
is capped or otherwise limited, we categorized it as partial. We
assumed that a full COLA is equal to the rate of inflation, and
that a partial COLA is worth 1 percentage point less. Following
the rule that a nominal rate of interest is used to discount
nominal quantities, and that real rates of interest (equal to the
nominal rate minus inflation) are used to discount real
quantities,5 we used a discount rate of 6 percent for benefit
programs with no COLA, 4 percent for programs with a partial COLA,
and 3 percent for programs that provide a full COLA.
We did not adjust benefit payment, or annuity streams, for various
survivorship options. We assumed an annuity stream for disability
retirement payments for the recipient's remainder of life with no
survivor benefits to follow. $2,159
$2,500
$8,847c
$6,375c
o Florida Highway Patrol
$1,141
1Social Security Administration, Social Security Disability Insurance
Program: Worker Experience, Actuarial Study No. 118, June 2005, SSA Pub.
No. 11-11543.
2Social Security Administration, Life Tables for the United States Social
Security Area, Actuarial Study No. 120, Aug. 2005, SSA Pub. No. 11-11536.
3As of 2000, 85.4 percent of the active-duty force was male and 14.6
percent was female. In 2001, it was estimated that about 89 percent of law
enforcement officers nationwide were male and about 11 percent female.
4By inflation, we mean the rate of aggregate price change as measured by
an index, such as the Consumer Price Index.
5GAO, Discount Rate Policy (GAO/OCE-17.1.1, May 1991), 18.
Table 10: Benefits Provided for Tinnitus $1,083
Disability Total disability
Hypothetical individuals, by compensation monthly compensation benefits
occupation benefit provideda
Age 20, 1 year of service, salary of $20,000 $4,519c
Military personnel o Indiana State $1,200
Policec
o Leaving service at $108 for lifec $1,407 $33,036 (annuity
earliest opportunityb factor: 25.491)
$2,500
o Leaving service only $108 for lifec $3,542 $15,669 (annuity
after 20 years of service factor: 12.091)
$3,261
Federal PSOs $958 $1,111 for 2.3 monthsd $2,564
$833
Selected state PSOs $2,500 $2,667c
o California Highway $810 for 5.5 months o $4,486 $2,181
Patrole New Jersey State
Police
o Florida Highway Patrol $833 for 2.3 months $1,922 $3,333
$2,855
o Indiana State Policef Not applicable $4,722 Not applicable
$5,789
o Montana Highway Patrol $1,111 for 8.8 months $9,743
$1,208 $833
o New Jersey State Police $770 for 2.3 months $1,777 $5,843c
$2,500
o Texas State Troopers $1,167 for 3.5 months $4,040 aMilitary
Source: GAO analysis personnel can elect
based on data in table to have their
13, program summaries retirement payments
in app. II, and the calculated based on
hypothetical scenarios average high-3 salary
in app. IV. times either (1) 2.5%
for each year of
service or (2) their
disability rating. In
this table, we
assumed the
disability rating to
be 30%, the lowest
rating that qualifies
for disability
retirement.
Nevertheless, use of
the formula with the
disability rating
provides the higher
monthly retirement
benefit for the
entry-level
servicemember, and
the same monthly
benefit as the years
of service formula
for the midlevel
servicemember, with
respect to both the
hypothetical and
actual salaries.
Selected local PSOs cEligible
for enhanced payments due to
age or length of service.
o Los Angeles $810 for 5.5 months A $4,486 Provisions in
Firefighterse of Disabilit Appendix 26 U.S.C. S: 104(a)
VI: Federal Income Tax set forth the types
Treatment of of disability
Disability Benefits benefits that may be
excluded from gross
income subject to
federal income tax.
These include, among
others:
o Miami Firefighters o $833 for 2.3 months $1,922 The federal
amounts received as a tax treatment of the
pension, annuity, or disability benefits
similar allowance for examined in this
personal injuries or report is based on
sickness resulting from whether the benefits
active service in the received fall within
armed forces if due to the categories set
combat-related injuries.1 forth in 26 U.S.C. S:
104(a), as discussed
below.
o Indianapolis Not applicable Amounts Not applicable
Firefightersf Disability received as workers'
Compensation Benefits compensation for an
occupational sickness
or injury are fully
exempt from federal
income tax if they are
paid under a workers'
compensation act or a
statute in the nature
of a workers'
compensation act.
Disability
compensation payments
from VA (for military
veterans) and from
FECA (for federal
PSOs) fall under this
category and are not
taxable. Across all
programs we reviewed,
we found workers'
compensation benefits
and disability
compensation benefits
treated as federally
tax-exempt.
o Billings Firefighters $1,111 for 8.8 months $9,743 The disability
Individuals who retire on In general, military retirement program
disability must include as disability retirement for federal PSOs
taxable income any pay is subject to (FERS) does not
disability pension federal income tax distinguish between
received under a plan that unless the work-related and
is paid for by the servicemember's non-work-related
employer.2 If a disability disabilities are disability, and
pension is paid under a combat-related. In disability retirement
statute that provides addition military benefits are treated
benefits only to employees disability retirement as taxable.
with service-connected pay is not subject to
disabilities, the part federal income tax if
based on level of the member was
disability may be entitled to receive a
considered workers' disability payment
compensation, exempt from before September 24,
tax. The part based on 1975; or on active
years of service, however, duty, a member of a
is taxable. Since the reserve component, or
disability retirement under a binding
programs we reviewed written commitment to
varied as to whether only be a member on
those with September 25, 1975.
service-connected Finally, if the
disabilities were veteran would have
included, and whether the been entitled to
benefits were calculated receive VA
based on level of compensation benefits,
disability or years of the amount of
service, we found the tax retirement benefits
treatment of disability that would have been
retirement benefits varied received if calculated
among the programs. based on a percentage
of disability (that
is, the amount of VA
compensation benefits)
is not subject to
federal income tax.
o Newark Firefighters $770 for 2.3 months $1,777 Pay received
Continuation of Pay from an employer
while an employee is
sick or injured is
part of salary or
wages and should be
included as taxable
income. Among the
programs we reviewed,
for the most part,
program officials
told us that
continuation of pay
and/or sick leave
provided following a
line of duty injury
is subject to federal
income tax the same
as if the injured
person were still
working,3 with one
exception. In
California, program
officials providing
benefits to State
Highway Patrol
Officers and to Los
Angeles Firefighters
told us that
continuation of pay
is treated as
federally tax-exempt
based on a court
decision and an
Internal Revenue
Service revenue
ruling.4
o Houston Firefighters $1,167 for 3.5 months $4,040
Age 25, 6 years of service, salary of $40,000
Military personnel Appendix VII:
Progression of
Disability Benefits
Following a
Line-of-Duty Injury,
by Occupation Appendix
VII: Progression of
Disability Benefits
Following a
Line-of-Duty Injury,
by Occupation
o Leaving service at $108 for lifec $33,034 (annuity
earliest opportunityb factor: 25.489)
o Leaving service only $108 for lifec $18,290 (annuity
after 20 years of service Decision point about factor: 14.112)
Temporary disability: permanent effects of
period of treatment, disability and ability
recovery, and evaluation to return to duty
Federal PSOs $2,222 for 2.3 monthsd $5,128
Selected state PSOs Military
benefits, including:
o California Highway $810 for 6.2 months $5,047 o Attainment
Patrole o Medical Based on: of optimal medical
treatment for injury. treatment benefits.
o Florida Highway Patrol $1,667 for 2.3 months $3,847
o Time period for
Temporary Disability
Retirement expires.
o Indiana State Policef Not applicable o Not applicable o
FECA benefits including: Continuation of pay up Medical treatment for
to 45 days, followed injury.
by a recurring payment
for wage loss (based
on a percentage of
pre-injury salary, up
to a cap).
o Montana Highway Patrol $1,127 for 8.8 months $9,883
o Injury has reached o Physician
"maximum medical assessment whether
improvement" (no time able to return to
limit). previous job, or any
job.
o New Jersey State Police $770 for 2.3 months $1,777
Selected state and Employer/Workers'
local PSOse compensation
benefits, including:
o Texas State Troopers o $1,634 for 3.5 months $5,656 o Injury has
Medical treatment for Based on: reached "maximum
injury. medical improvement"
or is "permanent and
stable;" or a set
time limit has been
reached.
Selected local PSOs o
Availability of job offer
from current employer.
o Los Angeles $810 for 6.2 months $5,047
Firefighterse
o Miami Firefighters $1,667 for 2.3 months $3,847
Continued benefits
based on level of
disability and ability
to return to duty
o Indianapolis Not applicable Not applicable
Firefightersf Permanent Permanent partial Permanent total
partial disability, able disability, unable to disability, unable to
to return to duty, return to duty be gainfully employed
pre-injury salary resumes
(Table 10: Military benefits,
Tinnitus-continued) Benefits including:
cease.
o Billings Firefighters $1,127 for 8.8 months $9,883 Military
o Vocational benefits, including:
rehabilitation.b
o Newark Firefighters VA $770 for 2.3 months o $1,777 o Medical
benefits, including: Monthly compensation treatment for injury.
payment for the
remainder of life.
o Houston Firefighters $1,634 for 3.5 months $5,656 VA benefits,
Military benefits, o Disability including:
including: retirement.
Age 35, 12 years of service, salary of $60,000 Medical treatment for
injury.
Military personnel Benefits cease. FECA benefits,
including:
o Leaving service at $108 for lifec o $29,801 (annuity
earliest opportunityb o Vocational factor: 22.995) FERS
Medical treatment for rehabilitation. benefits, including:
injury
o Leaving service only $108 for lifec o $20,629 (annuity
after 20 years of service Continued recurring factor: 15.917) o
FECA benefits, including: payments for wage Specified amount for
loss, if applicable.d permanent impairments
(schedule award).
Federal PSOs o Vocational $3,333 for 2.3 monthsd $7,692 o Disability
rehabilitation. FERS benefits, retirement.c
including:
Selected state PSOs o
Continued recurring payments
for wage loss, if
applicable.d
o California Highway $810 for 7.0 months o $5,654
Patrole o Medical Various other
treatment for injury. enhanced benefits.
o Florida Highway Patrol $2,500 for 2.3 months $5,769 o Permanent
Workers' compensation disability.
benefits, including: compensation payment
based on disability
rating (usually for a
set time period
and/or dollar
amount).
o Indiana State Policef Not applicable Not applicable o
o Vocational Employer benefits, Disability
rehabilitation. including: retirement.
o Montana Highway Patrol $1,127 for 8.8 months $9,883 o Vocational
o Disability compensation o Medical treatment rehabilitation.
payment based on for injury.
disability rating (usually
for a set time period
and/or dollar amount).
o New Jersey State Police $770 for 2.3 months $1,777 o Recurring
o Disability retirement. Workers' compensation disability
benefits, including: compensation payment
for the remainder of
life.
o Texas State Troopers o $1,634 for 3.5 months $5,656
Various other enhanced
benefits.
Selected local PSOs aNo VA
compensation benefits are
provided until or unless the
servicemember is released
from military service. If
receiving temporary
disability retirement
benefits, however, the
servicemember is considered
temporarily released from
service, with access to VA
compensation benefits, with
offsets, as applicable. (See
earlier background section
for further details on
offsets.)
o Los Angeles $810 for 7.0 months $5,654 eBased on a
Firefighterse cFederal dFederal PSOs cannot review of benefits
PSOs must have 18 months receive wage loss available to selected
of service to qualify for compensation benefits state and local PSOs,
disability retirement concurrently with including state
under FERS. Also, they can disability retirement. police officers in
earn up to 80% of However, if unable to California, Florida,
pre-injury salary and qualify for disability Indiana, Montana, New
still qualify. retirement (for Jersey, and Texas;
example, because and local
cannot meet the firefighters in Los
18-month service Angeles, Miami,
requirement, or Indianapolis,
because earning more Billings, Newark, and
than 80%, but less Houston.
than 100%, of
pre-injury salary),
FECA will continue to
provide a percentage
of the difference
between old and new
salaries, with no time
limit.
o Miami Firefighters $2,500 for 2.3 months $5,769
o Indianapolis Not applicable Not applicable
Firefightersf Definitions Compensation for
are provided for programs Service-Connected
reviewed that offer Disability,
additional benefits for Department of
total disability. Veterans Affairs
(Programs reviewed that do
not distinguish between
total disability and other
types of disability are
not included.)
o Billings Firefighters $1,127 for 8.8 months $9,883 Permanent
Federal Employees' total disability is
Compensation Act presumptively loss of
use of both hands,
arms, feet, legs,
eyes. "Temporary
total disability is
defined as the
inability to return
to the position held
at the time of injury
or earn equivalent
wages, or to perform
other gainful
employment."
Disability is always
presumed temporary
unless it fits under
the definition of
permanent total
disability. (20
C.F.R. S: 10.400.)
o Newark Firefighters $770 for 2.3 months $1,777
Social Security Disability "Disability
Insurance means...inability to
engage in any
substantial gainful
activity by reason of
any medically
determinable physical
or mental impairment
which can be expected
to result in death or
which has lasted or
can be expected to
last for a continuous
period of not less
than 12 months" (42
U.S.C. S:
423(d)(1)(A).)
o Houston Firefighters $1,634 for 3.5 months $5,656 Workers'
Permanent and total Compensation,
disability is "medically California
determinable consequences
of a catastrophic,
line-of-duty injury that
permanently prevent a
former public safety
officer from performing
any gainful work."
Catastrophic injury is one
in which the "consequences
of an injury...permanently
prevent an individual from
performing any gainful
work." (28 C.F.R. S:
32.2(h); 42 U.S.C. S:
3796b.)
Age 45, 22 years of service, salary of $85,000
Military personnel To qualify $108 for lifec $25,759 (annuity
for permanent total factor: 19.876)
disability benefits, an Disability Benefits,
employee must be "not able to State Police, Indiana
engage in at least sedentary
employment." (Fla. Stat. Ann.
S: 440.15(1)(b).)
Federal PSOs $4,722 for 2.3 monthsd $10,897 Permanent
Workers' Compensation, total disability
Montana benefits are
available when there
is a "physical
condition resulting
from injury...in
which a worker does
not have a reasonable
prospect of
physically performing
regular employment."
(Mont. Code Ann. S:
39-71-116(25).)
Selected state PSOs Workers'
Compensation, New Jersey
o California Highway $810 for 8.8 months $7,150 An enhanced
Patrole Disability Retirement benefit of 100% of
for Law Enforcement, average monthly
Texas compensation is
provided where
"occupational
disability makes the
person incapable of
substantial gainful
activity solely
because of the
disability and is
considered a total
disability under
federal social
security law." (Tex.
Gov't Code Ann. S:
814.207(e).)
o Florida Highway Patrol $2,821 for 2.3 months $6,510
Workers' Compensation, Lifetime income
Texas benefits are available
for blindness in both
eyes, loss of both
feet or hands, other
major amputations,
spinal injuries,
traumatic brain
injuries, or burns.
(Tex. Lab. Code Ann.
S: 408.161.)
o Indiana State Policef Not applicable Not applicable
o Montana Highway Patrol $1,127 for 9.5 months
o New Jersey State Police $770 for 2.3 months $1,777
o Texas State Troopers $1,634 for 3.5 months $5,656
Selected local PSOs
o Los Angeles $810 for 8.8 months $7,150
Firefighterse
o Miami Firefighters $2,821 for 2.3 months $6,510
(Table 10:
Tinnitus-continued)
o Indianapolis Not applicable Not applicable
Firefightersf
o Billings Firefighters $1,127 for 9.5 months $10,663
o Newark Firefighters $770 for 2.3 months $1,777
o Houston Firefighters $1,634 for 3.5 months $5,656
Age 55, 32 years of service, salary of $85,000
Military personnel $108 for lifec $20,972 (annuity
factor: 16.182)
Federal PSOs $4,722 for 2.3 monthsd $10,897
Selected state PSOs
o California Highway $810 for 9.8 months $7,898
Patrole
o Florida Highway Patrol $2,821 for 2.3 months $6,510
o Indiana State Policef Not applicable Not applicable
o Montana Highway Patrol $1,127 for 9.5 months $10,663
o New Jersey State Police $770 for 2.3 months $1,777
o Texas State Troopers $1,634 for 3.5 months $5,656
Selected local PSOs
o Los Angeles $810 for 9.8 months $7,898
Firefighterse
o Miami Firefighters $2,821 for 2.3 months $6,510
o Indianapolis Not applicable Not applicable
Firefightersf
o Billings Firefighters $1,127 for 9.5 months $10,663
o Newark Firefighters $770 for 2.3 months $1,777
o Houston Firefighters $1,634 for 3.5 months $5,656
Disability Benefits Disability Benefits Disability Benefits Disability
Benefits Disability Benefits Disability Benefits Disability Benefits
Disability Benefits Disability Benefits Disability Benefits Disability
Benefits Disability Benefits Disability Benefits Disability Benefits
Disability Benefits Disability Benefits Disability Benefits Disability
Benefits Disability Benefits Disability Benefits Disability Benefits
Disability Benefits Disability Benefits Disability Benefits Disability
Benefits Disability Benefits Disability Benefits Disability Benefits
Disability Benefits Disability Benefits Disability Benefits Disability
Benefits Disability Benefits Disability Benefits Disability Benefits
Disability Benefits Disability Benefits Disability Benefits
Source: GAO analysis based on program provisions summarized in apps. I and
II.
aTotal compensation benefits for military personnel reflect the present
value of VA benefits provided over a lifetime, using the annuity factors
indicated. These annuity factors take into account mortality rates,
discount rates, and COLAs, as appropriate.
b For purposes of our analysis, we assume that the servicemembers' tours
of duty are such that, although still fit for duty, they can choose to
separate immediately upon the determination of a permanent disability,
with one exception: We assume that the servicemember with only 1 year of
service must complete 2 years of service before being able to choose to
separate.
cUpon separation from military service, VA compensation benefits are
provided for the remainder of life, as long as the impairment persists.
dUnder FECA, compensation payments are calculated on a 28-day cycle;
converted to a monthly payment here to facilitate comparison with other
programs' payments.
eIn California, compensation payments are reduced by 15% if the current
employer offers comparable employment within 60 days. Payments here
include this 15% decrease.
fIn Indiana, both the Indiana State Police and the Indianapolis Fire
Department have opted out of providing compensation payments from the
state workers' compensation program.
Table 11: Benefits Provided for a Leg Amputation
Present
Disability Lump-sum value of
Hypothetical Disability retirement Compensation and Combined benefits, lifetime
individuals, by compensation monthly retirement offset monthly if Annuity package of
occupation monthly benefit benefit provisions benefit applicable factora benefits
Age 20, 1 year of service, salary of $20,000
Military $550 for life $667 Retirement offset $667 26.477 $211,920
personnel dollar-for-dollar
Federal PSOs $1,111 for 66 Not Not applicable $1,111 for 4.639 $134,700
months applicablec 66 months (compensation
(schedule schedule
award) $278 award)
thereafter
$278 thereafter 21.838
(wage loss (compensation
benefit)b wage loss
benefit)
Selected state PSOs
o $1,096 for 51.2 $833 No offset $1,929 for 3.569 $266,349
California monthsd 51.2 (compensation)
Highway months
Patrol 21.950
$833 (retirement)
thereafter
o Florida $833 for 29.3 Not Not applicable $833 for 1.891 $18,900
Highway months applicable 29.3
Patrol months
o Indiana Not applicable $1,167 for Not applicable $1,167 for 22.706 (until $322,385
State Police first 2 first 2 25 years of
years years service)
$833 $833 8.743
thereaftere thereafter (thereafter)
o Montana $1,111 for 49.4 $833 No offset $1,944 for 3.569 $266,992
Highway months 49.4 (compensation)
Patrol months
21.950
$833 (retirement)
thereafter
o New $1,167 for 53 $1,111 Retirement offset $1,167 for $18,561f 3.569 $308,298
Jersey State months dollar-for-dollar 53 months (compensation)
Police for recurring
compensation $1,111 17.984
benefits (not lump thereafter (retirement)
sum)
(Table 11: Leg amputation-continued)
o Texas $1,167 for 22 $833 No offset $2,000 for 1.891 $202,610
State months 22 months (compensation
Troopers (impairment impairment
benefits), then $1,167 for benefits)
next 64.4
$333 for next months 3.848
64.4 months (compensation
(supplemental $833 supplemental
benefits)g thereafter benefits)
16.082
(retirement)
Selected local PSOs
o Los $1,096 for 51.2 $833 Cannot be received $833 21.950 $219,412
Angeles monthsd concurrentlyh
Firefighters
o Miami $833 for 29.3 $1,111 No offset $1,944 for (Benefit 1.891 $311,537
Firefighters months 29.3 provided, (compensation)
months but not
included)i 21.950
$1,111 (retirement)
thereafter
o Not applicable $1,283 to Not applicable $1,283 to 17.613 (to age $335,340
Indianapolis age 52 age 52 52)
Firefighters
$1,233 $1,233 4.337
thereafterj thereafter (thereafter)
o Billings $1,111 for 49.4 $833 No offset $1,944 for 3.569 $266,992
Firefighters months 49.4 (compensation)
months
21.950
$833 (retirement)
thereafter
o Newark $1,167 for 53 $1,111 Retirement offset $1,167 for $18,561f 3.569 $308,298
Firefighters months dollar-for-dollar 53 months (compensation)
for recurring
compensation $1,111 17.984
benefits (not lump thereafter (retirement)
sum)
o Houston $1,167 for 22 $983 No offset $2,150 for $5,000k 1.891 $305,780
Firefighters months 22 months (compensation
(impairment impairment
benefits), then $1,316 for benefits)
next 64.4
$333 for next months 3.848
64.4 months (compensation
(supplemental $983 supplemental
benefits) g thereafter benefits)
21.950
(retirement)
(Table 11: Leg amputation-continued)
Age 25, 6 years of service, salary of $40,000
Military $550 for life $1,333 Retirement offset $1,333 25.489 $407,728
personnel dollar-for-dollar
Federal PSOs $2,222 for 66 $2,000 for Schedule award and $4,222 for 4.640 $483,087
months first year retirement can be first year (compensation)
(schedule received
award) $1,333 to concurrently with $3,555 for 0.986
age 62 no offset; wage next 4.5 (retirement
$512 thereafter loss benefits and years (to first year)
(wage loss $1,577 retirement cannot end of
benefit)b thereafter be received schedule 18.135
concurrently award) (retirement
till age 62)
$1,333 for
next 31.5 2.411
years (to (retirement
age 62) thereafter)
$1,577
thereafter
Selected state PSOs
o $1,096 for 52.9 $1,333 No offset $2,429 for 3.569 $388,210
California monthsd 52.9 (compensation)
Highway months
Patrol 21.335
$1,333 (retirement)
thereafter
o Florida $1,667 for 29.3 Not Not applicable $1,667 for 1.891 $37,821
Highway months applicable 29.3
Patrol months
o Indiana Not applicable $2,333 for Not applicable $2,333 for 19.033 (until $599,989
State Police first 2 first 2 25 years of
years years service)
$1,667 $1,667 10.162
thereaftere thereafter (thereafter)
o Montana $1,127 for 49.4 $1,667 No offset $2,794 for 3.6569 $475,047
Highway months 49.4 (compensation)
Patrol months
21.335
$1,667 (retirement)
thereafter
o New $1,539 for 53 $2,222 Retirement offset $2,222 $24,495f 3.571 $590,954
Jersey State months dollar-for-dollar (compensation)
Police for recurring
compensation 3.702
benefits (not lump (retirement
sum) for 53 months)
17.633
(retirement
thereafter)
(Table 11: Leg amputation-continued)
o Texas $1,634 for 22 $1,667 No offset $3,301 for 1.891 $384,478
State months 22 months (compensation
Troopers (impairment impairment
benefits), then $2,334 for benefits)
next 64.4
$667 for next months 3.849
64.4 months (compensation
(supplemental $1,667 supplemental
benefits) g thereafter benefits)
15.826
(retirement)
Selected local PSOs
o Los $1,096 for 52.9 $1,667 Cannot be received $1,667 21.335 $426,780
Angeles monthsd concurrentlyh
Firefighters
o Miami $1,667 for 29.3 $2,222 No offset $3,889 for (Benefit 1.891 $606,690
Firefighters months 29.3 provided, (compensation)
months but not
included)i 21.335
$2,222 (retirement)
thereafter
o Not applicable $2,567 to Not applicable $2,567 to 16.022 (to age $650,819
Indianapolis age 52 age 52 52)
Firefighters
$2,467 $2,467 5.313
thereafterj thereafter (thereafter)
o Billings $1,127 for 49.4 $1,667 No offset $2,794 for 3.569 $475,047
Firefighters months 49.4 (compensation)
months
21.335
$1,667 (retirement)
thereafter
o Newark $1,539 for 53 $2,222 Retirement offset $2,222 $24,495 f 3.571 $590,954
Firefighters months dollar-for-dollar (compensation)
for recurring
compensation 3.702
benefits (not lump (retirement
sum) for 53 months)
17.633
(retirement
thereafter)
(Table 11: Leg amputation-continued)
o Houston $1,634 for 22 $1,817 No offset $3,451 for $5,000k 1.891 $538,069
Firefighters months 22 months (compensation
(impairment impairment
benefits), then $2,484 for benefits)
next 64.4
$667 for next months 3.849
64.4 months (compensation
(supplemental $1,817 supplemental
benefits) g thereafter benefits)
21.335
(retirement)
Age 35, 12 years of service, salary of $60,000
Military $550 for life $2,000 Retirement offset $2,000 22.995 $551,869
personnel dollar-for-dollar
Federal PSOs $3,333 for 66 $3,000 for Schedule award and $6,333 for 4.633 $682,276
months first year retirement can be first year (compensation)
(schedule received
award) $2,000 to concurrently with $5,333 for 0.985
age 62 no offset; wage next 4.5 (retirement
$769 thereafter loss and years (to first year)
(wage loss $2,145 retirement cannot end of
benefit)b thereafter be received schedule 15.349
concurrently award) (retirement to
age 62)
$2,000 for
next 21.5 3.618
years (to (retirement
age 62) thereafter)
$2,145
thereafter
Selected state PSOs
o $1,096 for 59.3 $1,750 No offset $2,846 for 4.330 $469,807
California monthsd 59.3 (compensation)
Highway months
Patrol 19.660
$1,750 (retirement)
thereafter
o Florida $2,500 for 29.3 Not Not applicable $2,500 for 1.890 $56,695
Highway months applicable 29.3
Patrol months
o Indiana Not applicable $3,500 for Not applicable $3,500 for 12.057 (until $583,497
State Police first 2 first 2 25 years of
years years service)
$2,500 $2,500 6.593
thereaftere thereafter (thereafter)
(Table 11: Leg amputation-continued)
o Montana $1,127 for 49.4 $2,500 No offset $3,627 for 3.565 $638,017
Highway months 29.4 (compensation)
Patrol months
19.660
$2,500 (retirement)
thereafter
o New $1,539 for 53 $3,333 Retirement offset $3,333 $24,495 f 3.569 $808,412
Jersey State months dollar-for-dollar (compensation)
Police for recurring
compensation 3.699
benefits (not lump (retirement
sum) for 53 months)
15.961
(retirement
thereafter)
o Texas $1,634 for 22 $2,500 No offset $4,134 for 1.890 $533,722
State months 22 months (compensation
Troopers (impairment impairment
benefits), then $3,500 for benefits)
next 64.4
$1,000 for next months 3.837
64.4 months (compensation
(supplemental $2,500 supplemental
benefits) g thereafter benefits)
15.021
(retirement)
Selected local PSOs
o Los $1,096 for 59.3 $2,500 Cannot be received $2,500 19.660 $589,802
Angeles monthsd concurrentlyh
Firefighters
o Miami $2,500 for 29.3 $3,333 No offset $5,833 for (Benefit 1.890 $843,019
Firefighters months 29.3 provided, (compensation)
months but not
included)i 19.660
$3,333 (retirement)
thereafter
o Not applicable $3,850 to Not applicable $3,850 to 11.686 (to age $865,235
Indianapolis age 52 age 52 52)
Firefighters
$3,400 $3,400 7.974
thereafterj thereafter (thereafter)
o Billings $1,127 for 49.4 $2,500 No offset $3,627 for 3.565 $638,017
Firefighters months 49.4 (compensation)
months
19.660
$2,500 (retirement)
thereafter
(Table 11: Leg amputation-continued)
o Newark $1,539 for 53 $3,333 Retirement offset $3,333 $24,495 f 3.569 $808,412
Firefighters months dollar-for-dollar (compensation)
for recurring
compensation 3.699
benefits (not lump (retirement
sum) for 53 months)
15.961
(retirement
thereafter)
o Houston $1,634 for 22 $2,650 No offset $4,284 for $5,000k 1.890 $713,293
Firefighters months 22 months (compensation
(impairment impairment
benefits), then $3,650 for benefits)
next 64.4
$1,000 for next months 3.837
64.4 months (compensation
(supplemental $2,650 supplemental
benefits) g thereafter benefits)
19.660
(retirement)
Age 45, 22 years of service, salary of $85,000
Military $550 for life $3,896 Retirement offset $3,896 19.876 $929,227
personnel dollar-for-dollarl
Federal PSOs $4,722 for 66 $4,250 for Schedule award and $8,972 for 4.607 $1,065,144
months(schedule first year retirement can be first year (compensation)
award) received
$2,833 to concurrently with $7,555 for 0.985
$1,090 age 62 no offset; wage next 4.5 (retirement
thereafter loss and years (to first year)
(wage loss $3,039 retirement cannot end of
benefit)b thereafter be received schedule 16.281
concurrently award) (retirement to
age 62)
$2,833 for
next 11.5 5.495
years (to (retirement
age 62) thereafter)
$3,039
thereafter
Selected state PSOs
o $1,096 for 66.3 $2,271 No offset $3,367 for 5.016 $540,149
California monthsd 66.3 (compensation)
Highway months
Patrol 17.400
$2,271 (retirement)
thereafter
o Florida $2,821 for 29.3 Not Not applicable $2,821 for 1.886 $63,844
Highway months applicable 29.3
Patrol months
(Table 11: Leg amputation-continued)
o Indiana Not applicable $4,958 for Not applicable $4,958 for 2.858 (until $667,617
State Police first 2 first 2 25 years of
years years service)
$3,542 $3,542 12.050
thereaftere thereafter (thereafter)
o Montana $1,127 for 50.3 $3,896 No offset $5,023 for 3.550 $861,484
Highway months 50.3 (compensation)
Patrol months
17.400
$3,896 (retirement)
thereafter
o New $1,539 for 53 $4,722 Retirement offset $4,722 $24,495f 3.559 $1,008,040
Jersey State months dollar-for-dollar (compensation)
Police for recurring
compensation 3.689
benefits (not lump (retirement
sum) for 53 months)
13.711
(retirement
thereafter)
o Texas $1,634 for 22 $4,363 No offset $5,997 for 1.890 $822,618
State months 22 months (compensation
Troopers (impairment impairment
benefits), then $5,780 for benefits)
next 64.4
$1,417 for next months 3.796
64.4 months (compensation
(supplemental $4,363 supplemental
benefits) g thereafter benefits)
13.771
(retirement)
Selected local PSOs
o Los $1,096 for 66.3 $3,542 Cannot be received $3,542 17.400 $739,562
Angeles monthsd concurrentlyg
Firefighters
o Miami $2,821 for 29.3 $4,722 No offset $7,543 for (Benefit 1.886 $1,049,788
Firefighters months 29.3 provided, (compensation)
months but not
included)i 17.400
$4,722 (retirement)
thereafter
o Not applicable $5,454 to Not applicable $5,454 to 5.290 (to age $1,046,218
Indianapolis age 52 age 52 52)
Firefighters
$4,817 $4,817 12.110
thereafterj thereafter (thereafter)
(Table 11: Leg amputation-continued)
o Billings $1,127 for 50.3 $3,896 No offset $5,023 for 3.550 $861,484
Firefighters months 50.3 (compensation)
months
17.400
$3,896 (retirement)
thereafter
o Newark $1,539 for 53 $4,722 Retirement offset $4,722 $24,495 f 3.559 $1,008,040
Firefighters months dollar-for-dollar (compensation)
for recurring
compensation 3.689
benefits (not lump (retirement
sum) for 53 months)
13.711
(retirement
thereafter)
o Houston $1,634 for 22 $4,117 No offset $5,751 for $5,000 k 1.890 $966,227
Firefighters months 22 months (compensation
(impairment impairment
benefits), then $5,534 for benefits)
next 64.4
$1,417 for next months 3.796
64.4 months (compensation
(supplemental $4,117 supplemental
benefits) g thereafter benefits)
17.400
(retirement)
Age 55, 32 years of service, salary of $85,000
Military $550 for life $5,313 Retirement offset $5,313 16.182 $1,031,707
personnel dollar-for-dollar
l
Federal PSOs $4,722 for 66 $3,258 m Schedule award and $7,980 for 4.554 $826,145
months retirement can be 5.5 years (compensation)
(schedule received (to end of
award) concurrently with schedule 14.531
no offset; wage award) (retirement)
$1,090 loss and
thereafter retirement cannot $3,258
(wage loss be received thereafter
benefit)b concurrently
Selected state PSOs
o $1,096 for 73.7 $2,271 No offset $3,367 for 4.947 $461,071
California monthsd 73.7 (compensation)
Highway months
Patrol 14.531
$2,271 (retirement)
thereafter
o Florida $2,821 for 29.3 Not Not applicable $2,821 for 1.878 $63,584
Highway months applicable 29.3
Patrol months
(Table 11: Leg amputation-continued)
o Indiana Not applicable $4,958 for Not applicable $4,958 for 1.929 (for 2 $606,539
State Police first 2 first 2 years)
years years
10.714
$3,825 $3,825 (thereafter)
thereafter thereafter
e
o Montana $1,127 for 50.3 $5,667 No offset $6,794 for 3.519 $1,035,785
Highway months 50.3 (compensation)
Patrol months
14.531
$5,667 (retirement)
thereafter
o New $1,539 for 53 $4,722 Retirement offset $4,722 $24,495 f 3.545 $845,520
Jersey State months dollar-for-dollar (compensation)
Police for recurring
compensation 3.674
benefits (not lump (retirement
sum) for 53 months)
10.857
(retirement
thereafter)
o Texas $1,634 for 22 $6,347 No offset $7,981 for 1.880 $1,012,161
State months 22 months (compensation
Troopers (impairment impairment
benefits), then $7,764 for benefits)
next 64.4
$1,417 for next months 3.710
64.4 months (compensation
(supplemental $6,347 supplemental
benefits) g thereafter benefits)
11.977
(retirement)
Selected local PSOs
o Los $1,096 for 73. $4,533 Cannot be received $4,533 14.531 $790,452
Angeles months d concurrentlyh
Firefighters
o Miami $2,821 for 29.3 $4,722 No offset $7,543 for (Benefit 1.878 $886,993
Firefighters months 29.3 provided, (compensation)
months but not
included)i 14.531
$4,722 (retirement)
thereafter
o Not applicable $5,242 j Not applicable $5,242 14.531 $914,085
Indianapolis
Firefighters
o Billings $1,127 for 50.3 $5,667 No offset $6,794 for 3.519 $1,035,785
Firefighters months 50.3 (compensation)
months
14.531
$5,667 (retirement)
thereafter
(Table 11: Leg amputation-continued)
o Newark $1,539 for 53 $4,722 n Retirement offset $4,722 $24,495 f 3.545 $845,520
Firefighters months dollar-for-dollar (compensation)
for recurring
compensation 3.674
benefits (not lump (retirement
sum) for 53 months)
10.857
(retirement
thereafter)
o Houston $1,634 for 22 $5,817 No offset $7,451 for $5,000k 1.880 $1,119,300
Firefighters months 22 months (compensation
(impairment impairment
benefits), then $7,234 for benefits)
next 64.4
$1,417 for next months 3.710
64.4 months (compensation
(supplemental $5,817 supplemental
benefits) g thereafter benefits)
14.531
(retirement)
Source: GAO analysis based on program provisions summarized in apps. I and
II.
aAnnuity factors take into account mortality rates, discount rates, and
COLAs, as appropriate. Where different provisions or changes in benefits
over time require different annuity factors, the factors are used
proportionately as appropriate.
bUnder FECA, compensation payments are calculated on a 28-day cycle;
converted to a monthly payment here to facilitate comparison with other
programs' payments. Wage loss benefits reflect assumption that the
individual secures work with an alternative employer and earns 75% of
previous pay.
cUnder FERS, 18 months of service are required to qualify for disability
retirement benefits.
dIn California, compensation payments are increased by 15% if no offer of
comparable employment is received from the current employer after 60 days.
Payments here include this 15% increase.
eIn Indiana, disability retirement benefits are provided until the date
the officer is credited with 25 years of service, including years on
disability. Then, benefits are recalculated as normal service retirement
benefits. In this scenario, after the first 2 years, the same formula is
used to calculate both disability and normal retirement benefits.
fIn New Jersey, an additional 30% of the normal compensation award is
added as a lump-sum payment in cases of amputations, and this payment can
be received concurrently with disability retirement benefits with no
offset.
gSupplemental benefits reflect assumption that the individual secures work
with an alternative employer and earns 75% of previous pay.
hIn Los Angeles, firefighters on disability retirement are required to pay
back any workers' compensation awards they have received throughout their
careers. Therefore, lifetime benefits are maximized by receiving just
disability retirement.
iMiami provides a lump-sum benefit available to firefighters upon
retirement, in an amount that varies depending on several factors that we
were not able to estimate; thus, the benefit is not included in these
calculations.
ijn Indianapolis, when the former firefighter reaches age 52, disability
retirement benefits are recalculated based on the formula for normal
service retirement. If already age 52 or older when applying for
retirement due to disability, only normal service retirement benefits are
available.
kHouston provides a lump-sum payment of $5,000 to most firefighters
retiring on either disability retirement or normal retirement. An
additional annual retirement benefit is also provided depending on the
monthly payment and length of time retired. Due to variability from
year-to-year and person-to-person, this additional benefit is not included
in these calculations. (See app. II, City of Houston Firefighters, for
details.)
lBenefits are offset, unless the injury is combat related. (See app. II,
military personnel, for details.)
mUnder FERS, if a PSO qualifies for normal service retirement (age 50 with
20 years of service, or any age with 25 years of service), the disability
retirement benefit included here is calculated using the same formula as
normal service retirement. However, the officer would not receive a
special retirement supplement provided only to those taking normal service
retirement. Therefore, a federal PSO age 55 with 32 years of service would
receive greater benefits by taking normal retirement rather than
disability retirement.
nIn Newark, the disability benefit included here does not change based on
age or length of service. Therefore, a firefighter with 32 years of
service would receive greater benefits by taking normal retirement
(calculated at 65% of salary plus 1% for each year of service over 25, up
to 30), rather than disability retirement.
Table 12: Benefits Provided for Quadriplegia and Other Permanent Total
Disabilities
Present
Disability Disability Lump-sum value of
Hypothetical compensation retirement Compensation and Combined benefits, lifetime
individuals, by monthly monthly retirement offset monthly if Annuity package of
occupation benefit benefit provisions benefit applicablea factorsb benefits
Age 20, 1 year of service, salary of $20,000
Military personnel
o With SMC $6,576 $1,250 Retirement offset $6,576 Not 21.247 $1,676,664
for dollar-for-dollar applicable
quadriplegiac
o Without $2,299 $1,250 Retirement offset $2,299 Not 21.247 $586,170
SMC dollar-for-dollar applicable
Federal PSOs
o With $2,611 (total 0e Not applicable $2,611 $275,658 21.247 $941,377
attendant disability)d
allowance
o Without $1,111 (total 0e Not applicable $1,111 $275,658 21.247 $558,927
attendant disability)d
allowance
Selected state PSOs
o California $3,640 $833 No offset $4,473 $275,658 21.247 $1,385,342
Highway (compensation)
Patrol
18.168
(retirement)
o Florida $1,111 to age $1,083 Compensation $1,667 to $275,658 17.413 $638,405
Highway 75 offset if age 75 (compensation
Patrol combined amount to age 62)f
is greater than $1,083
100% of thereafter 0.657
pre-injury wage (compensation
age 62 to 75)
18.168
(retirement)
o Indiana Not applicable $1,667 Not applicable $1,667 for $275,658 20.373 (for 24 $766,003
State Police until 25 24 years years)
years of
serviceg $833 8.283
thereafter (thereafter)
$833
thereafter
o Montana $1,111 $833 Cannot be $1,111 $275,658 21.247 $558,927
Highway received
Patrol concurrently
(Table 12: Quadriplegia-continued)
o New Jersey $1,167 $1,111 Retirement offset $1,167 $275,658 13.924 $470, 650
State Police dollar-for-dollar (compensation)
18.168
(retirement)
o Texas $1,250 $1,667 No offset $2,917 $275,658 18.168 $826,708
State (compensation)
Troopers
13.924
(retirement)
Selected local PSOs
o Los $3,640 $1,500 Cannot be $3,640 $275,658 21.247 $1,203,739
Angeles received
Firefighters concurrently
o Miami $1,111 $1,111 Compensation $1,667 $275,658h 18.168 $639,084
Firefighters offset if
combined amount
is greater than
100% of
pre-injury wage
o Not applicable $1,500 to Not applicable $1,500 to $275,658 15.984 (to age $595,679
Indianapolis age 52 age 52 52)
Firefighters
$1,233 $1,233 2.184
thereafteri thereafter (thereafter)
o Billings $1,111 $833 Cannot be $1,111 $275,658 21.247 $558,927
Firefighters received
concurrently
o Newark $1,167 $1,111 Retirement offset $1,167 $275,658 13.924 $470, 650
Firefighters dollar-for-dollar (compensation)
18.168
(retirement)
o Houston $1,250 $1,400 No offset $2,650 $275,658 18.168 $858,389
Firefighters plus
$5,000j
Age 25, 6 years of service, salary of $40,000
Military personnel
o With SMC $6,576 $2,500 Retirement offset $6,576 Not 19.444 $1,534,391
for dollar-for-dollar applicable
quadriplegiac
o Without $2,299 $2,500 Retirement offset $2,500 Not 19.444 $583,330
SMC dollar-for-dollar applicable
(Table 12: Quadriplegia-continued)
Federal PSOs
o With $3,722 $2,000 for Schedule award $5,722 for $275,658 19.444 $1,361,822
attendant (schedule first year and retirement first year (compensation)
allowance award for 23 can be received
years, total $1,333 to concurrently with $5,055 for 0.972
disability age 62 no offset; total next 22 (retirement
thereafter)d,k disability and years first year)
$1,577 retirement cannot
thereafter be received $3,722 12.152
concurrently thereafter (retirement
for next 22
years)
o Without $2,222 (total $2,000 for Total disability $2,222 $275,658 19.444 $794,122
attendant disability)d first year and retirement
allowance cannot be
$1,333 to received
age 62 concurrently
$1,577
thereafter
Selected state PSOs
o California $3,640 $1,667 No offset $5,307 $275,658 19.444 $1,461,057
Highway (compensation)
Patrol
16.800
(retirement)
o Florida $2,222 to age $2,167 Compensation $3,333 to $275,658 15.828 $945,957
Highway 75 offset if age 75 (compensation
Patrol combined amount to age 62)f
is greater than $2,167
100% of thereafter 0.855
pre-injury wage (compensation
age 62 to 75)
16.800
(retirement)
o Indiana Not applicable $3,333 Not applicable $3,333 for $275,658 15.188 (for 19 $1,050,449
State Police until 25 19 years years)
years of
service $1,667 8.366
thereafter (thereafter)
$1,667
thereafterg
o Montana $2,222 $1,667 Cannot be $2,222 $275,658 19.444 $794,122
Highway received
Patrol concurrently
o New Jersey $2,333 $2,222 Retirement offset $2,333 $275,658 13.075 $641,706
State Police dollar-for-dollar (compensation)
16.800
(retirement)
(Table 12: Quadriplegia-continued)
o Texas $2,336 $3,333 No offset $5,669 $275,658 16.800 $1,269,548
State (compensation)
Troopers
13.075
(retirement)
Selected local PSOs
o Los $3,640 $3,000 Cannot be $3,640 $275,658 19.444 $1,124,987
Angeles received
Firefighters concurrently
o Miami $2,222 $2,222 Compensation $3,333 $275,658h 16.800 $947,597
Firefighters offset if
combined amount
is greater than
100% of
pre-injury wage
o Not applicable $3,000 to Not applicable $3,000 to $275,658 14.164 (to age $863,605
Indianapolis age 52 age 52 52)
Firefighters
$2,467 $2,467 2.636
thereafteri thereafter (thereafter)
o Billings $2,222 $1,667 Cannot be $2,222 $275,658 19.444 $794,122
Firefighters received
concurrently
o Newark $2,333 $2,222 Retirement offset $2,333 $275,658 13.075 $641,706
Firefighters dollar-for-dollar (compensation)
16.800
(retirement)
o Houston $2,336 $2,650 No offset $4,986 $275,658 16.800 $1,285,844
Firefighters plus
$5,000j
Age 35; 12 years of service, salary of $60,000
Military personnel
o With SMC $6,576 $3,750 Retirement offset $6,576 Not 16.018 $1,264,041
for dollar-for-dollar applicable
quadriplegiac
o Without $2,299 $3,750 Retirement offset $3,750 Not 16.018 $720,826
SMC dollar-for-dollar applicable
Federal PSOs
o With $4,833 $3,000 for Schedule award $7,833 for $275,658 16.018 $1,501,789
attendant (schedule first year and retirement first year (compensation)
allowance award for 23 can be received
years, total $2,000 to concurrently with $6,833 for 0.962
disability age 62 no offset; total next 22 (retirement
thereafter)d,k disability and years for first
$2,145 retirement cannot year)
thereafter be received $4,833
concurrently thereafter 10.937
(retirement
for next 22
years)
(Table 12: Quadriplegia-continued)
o Without $3,333 (total $3,000 for Total disability $3,333 $275,658 16.018 $916,329
attendant disability)d first year and retirement
allowance cannot be
$2,000 to received
age 62 concurrently
$2,145
thereafter
Selected state PSOs
o California $3,640 $2,500 No offset $6,140 $275,658 16.018 $1,399,667
Highway (compensation)
Patrol
14.144
(retirement)
o Florida $2,821 to age $3,250 Compensation $5,000 to $275,658 12.683 $1,120,613
Highway 75 offset if age 75 (compensation
Patrol combined amount to age 62)f
is greater than $3,250
100% of thereafter 1.285
pre-injury wage (compensation
age 62 to 75)
14.144
(retirement)
o Indiana Not applicable $5,000 Not applicable $5,000 for $275,658 10.258 (for 13 $1,104,153
State Police until 25 13 years years)
years of
service $2,500 7.102
thereafter (thereafter)
$2,500
thereafterg
o Montana $2,253 $2,500 Cannot be $2,500 $275,658 14.144 $699,985
Highway received
Patrol concurrently
o New Jersey $2,886 $3,333 Retirement offset $3,333 $275,658 11.380 $745.645
State Police dollar-for-dollar (compensation)
14.144
(retirement)
o Texas $2,336 $5,000 No offset $7,336 $275,658 14.144 $1,354,958
State (compensation)
Troopers
11.380
(retirement)
Selected local PSOs
o Los $3,640 $4,500 Cannot be $4,500 $275,658 14.144 $1,039,446
Angeles received
Firefighters concurrently
(Table 12: Quadriplegia-continued)
o Miami $2,821 $3,333 Compensation $5,000 $275,658h 14.144 $1,124,312
Firefighters offset if
combined amount
is greater than
100% of
pre-injury wage
o Not applicable $4,500 to Not applicable $4,500 to $275,658 10.181 (to age $987,133
Indianapolis age 52 age 52 52)
Firefighters
$3,400 $3,400 3.963
thereafteri thereafter (thereafter)
o Billings $2,253 $2,500 Cannot be $2,500 $275,658 14.144 $699,985
Firefighters received
concurrently
o Newark $2,886 $3,333 Retirement offset $3,333 $275,658 11.380 $745.645
Firefighters dollar-for-dollar (compensation)
14.144
(retirement)
o Houston $2,336 $3,900 No offset $6,236 $275,658 14.144 $1,339,099
Firefighters plus
$5,000j
Age of 45, 22 years of service, salary of $85,000
Military personnel
o With SMC $6,576 $5,313 No offset $11,889 Not 13.166 $1,878,409
for (because 20 or applicable
quadriplegiac more years of
service and a
100% disability
rating)
o Without $2,299 $5,313 No offset $7,612 Not 13.166 $1,202,662
SMC (because 20 or applicable
more years of
service and a
100% disability
rating)
(Table 12: Quadriplegia-continued)
Federal PSOs
o With $6,222 $4,250 for Schedule award $10,472 $275,658 13.166 $1,614,340
attendant (schedule first year and retirement for first (compensation)
allowance award for 23 can be received year
years, total $2,833 to concurrently with 0.950
disability age 62 no offset; total $9,055 for (retirement
thereafter)d,k disability and next 16 for first
$3,039 retirement cannot years (to year)
thereafter be received age 62)
concurrently 8.489
$9,261 for (retirement
next 6 for next 16
years years)
$6,222 0.510
thereafter (retirement
for next 6
years)
o Without $4,722 (total $4,250 for Total disability $4,722 $275,658 13.166 $1,021,713
attendant disability)d first year and retirement
allowance cannot be
$2,833 to received
age 62 concurrently
$3,039
thereafter
Selected state PSOs
o California $3,640 $3,542 No offset $7,182 $275,658 13.166 $1,355,433
Highway (compensation)
Patrol
11.874
(retirement)
o Florida $2,821 to age $4,604 Compensation $7,083 to $275,658 9.435 $1,276,114
Highway 75 offset if age 75 (compensation
Patrol combined amount to age 62)f
is greater than $4,604
100% of thereafter 2.145
pre-injury wage (compensation
age 62 to 75)
11.874
(retirement)
o Indiana Not applicable $7,083 Not applicable $7,083 for $275,658 2.680 (for 3 $960,144
State Police until 25 3 years years)
years of
service $3,542 10.744
thereafter (thereafter)
$3,542
thereafterg
o Montana $2,253 $3,896 Cannot be $3,896 $275,658 11.874 $830,768
Highway received
Patrol concurrently
(Table 12: Quadriplegia-continued)
o New Jersey $2,886 $4,722 Retirement offset $4,722 $275,658 9.877 $879,323
State Police dollar-for-dollar (compensation)
11.874
(retirement)
o Texas $2,336 $7,083 No offset $9,419 $275,658 11.874 $1,448,021
State (compensation)
Troopers
9.877
(retirement)
Selected local PSOs
o Los $3,640 $6,375 Cannot be $6,375 $275,658 11.874 $1,183,981
Angeles received
Firefighters concurrently
o Miami $2,821 $4,722 Compensation $7,083 $275,658h 11.874 $1,284,858
Firefighters offset if
combined amount
is greater than
100% of
pre-injury wage
o Not applicable $6,375 to Not applicable $6,375 to $275,658 5.254 (to age $1,060,213
Indianapolis age 52 age 52 52)
Firefighters
$4,817 $4,817 6.620
thereafteri thereafter (thereafter)
o Billings $2,253 $3,896 Cannot be $3,896 $275,658 11.874 $830,768
Firefighters received
concurrently
o Newark $2,886 $4,722 Retirement offset $4,722 $275,658 9.877 $879,323
Firefighters dollar-for-dollar (compensation)
11.874
(retirement)
o Houston $2,336 $5,462 No offset $7,798 $275,658 11.874 $1,391,733
Firefighters plus
$5,000j
Age 55, 32 years of service, salary of $85,000
Military personnel
o With SMC $6,576 $5,313 No offset $11,889 Not 10.931 $1,559,445
for (because 20 or applicable
quadriplegiac more years of
service and a
100% disability
rating)
$6,800c
$833
o Montana Highway Patrol
$1,292
$5,667c
$1,111
o Texas State Troopers
$1,808
$6,347c
bPayments shown here for FBI agents are based on 40% of average high-3
salary, which is the payment level provided after the first year of
benefits until reaching age 62. (During the first year, payments are 60%
of average high-3 salary; after age 62, payments are 1.0% times high-3
average salary times years and months of service.)
dPayments shown here for Indiana State Police are based on 50% of average
high-3 salary, which is the payment level provided after the first 2
years. (During the first 2 years, payments are 70% of average high-3
salary.)
o amounts received under workmen's compensation acts as compensation for
personal injuries or sickness and
Disability Retirement Benefits
Among the selected state and local PSOs we reviewed, the tax treatment of
disability retirement benefits varies. Some program officials, such as
those providing benefits to Montana Highway Patrol Officers, Billings
Firefighters, and Texas State Troopers, told us that their disability
retirement payments are subject to federal income tax. Other program
officials, such as those providing benefits to California and Florida
Highway Patrol Officers, and Houston and Los Angeles Firefighters, told us
that the portion of their disability retirement payment based on
disability is federally tax-exempt, but any additional amount based on
years of service is taxable. Officials providing benefits to Miami
Firefighters told us that their disability retirement benefits are treated
as federally tax-exempt. Still other program officials, such as those
providing benefits to Indiana and New Jersey State Police, and
Indianapolis Firefighters, told us that their disability retirement
benefits are treated as tax-exempt only for the period of time until the
PSO reaches normal retirement age, at which point benefits are treated as
federally taxable the same as normal retirement benefits.
Line-of-duty injury occurs, by occupation
Military personnel
o Continuation of pay for generally no longer than a year, followed by
Temporary Disability Retirement for up to 5 years, including VA
compensation benefits.a
o Physician assessment of disability rating and whether fit/unfit for
duty.
Federal PSOs
Based on:
o Continuation of pay, and/or recurring payment (usually based on a
percentage of salary, up to a cap).f
o Physician assessment of disability rating and whether able to return to
previous job.
No continuing disability, able to return to duty, pre-injury salary
resumes
o Medical treatment for injury.
o Disability severance or retirement.
o Vocational rehabilitation.
o Monthly compensation payment for the remainder of life.
o Various other enhanced benefits.
o Specified amount for permanent impairments (schedule award).
o Disability retirement.c
o Medical treatment for injury.
FECA benefits, including:
o Specified amount for permanent impairments (schedule award).
Benefits cease.
o Medical treatment for injury.
Workers' compensation benefits, including:
Employer benefits, including:
o Medical treatment for injury.
Source: GAO analysis based on statutes, regulations, program policies, and
interviews with program officials.
bA servicemember pending medical separation from the military may apply
for vocational rehabilitation services in advance of separation, but no VA
compensation payments are provided until or unless the servicemember is
released from military service.
fIn Indiana, state statutes allow some public employers to opt out of
providing workers' compensation payments, and we found that both the
Indiana State Police and the Indianapolis Fire Department had opted out of
such payments. Instead, after their special allocation of sick leave is
exhausted, these PSOs receive disability benefits only from their pension
funds.
Appendix VIII: Appendix VIII: Definitions of Total Disability
"Total disability will be considered to exist when there is present any
impairment of mind or body which is sufficient to render it impossible for
the average person to follow a substantially gainful occupation."
Permanent total disability is presumed for loss or loss of use of both
hands, both feet, one hand and one foot, sight in both eyes, or
permanently helpless or bedridden. Any disability or combination of
disabilities that rates 100 percent on the Schedule of Rating Disabilities
qualifies for total disability. A total rating can also occur if injuries
are less than 100 percent, if it is "determined that the service-connected
disabilities are sufficient to produce unemployability without regard to
advancing age." (38 C.F.R. S:S: 3.340, 3.341.)
Public Safety Officers' Benefits Program, Bureau of Justice Assistance
"Permanent total disability" means a permanent disability with a rating of
100 percent permanent disability only." Loss or loss of use of both eyes,
both hands, total paralysis, or severe brain injury are presumptively
total and permanent. "In determining the percentages of permanent
disability, account shall be taken of the nature of the physical injury or
disfigurement, the occupation of the injured employee, and his or her age
at the time of the injury, consideration being given to an employee's
diminished future earning capacity." (Cal. Lab. Code S:S: 4452.5, 4662,
4660(a).)
Workers' Compensation, Florida
Disability pension equal to full salary is provided for a "catastrophic"
injury that "permanently prevents the Employee from performing any gainful
work." (Ind. Code Ann. S: 10-12-2-5(d).)
Permanent total disability benefits are available for "physical or
neuropsychiatric total permanent impairment caused by a compensable
accident or compensable occupational disease, where no fundamental or
marked improvement in such condition can be reasonably expected." Agency
officials interpret this as a person who cannot perform any occupation.
(N.J. Stat. Ann. S: 34.15-36.)
1See B. A. Reaves, Law Enforcement Management and Administrative
Statistics, 2000: Data for Individual State and Local Agencies with 100 or
More Officers. U.S. Department of Justice, Office of Justice Programs,
Bureau of Justice Statistics. March 2004, NCH 203350, 246.
1Combat-related injury is defined as personal injury or sickness that is
incurred as a direct result of armed conflict, while engaged in
extra-hazardous service, or under conditions simulating war; or that is
caused by an instrumentality of war.
2However, individuals who have limited income and are retired on permanent
and total disability, and who have taxable disability income, may qualify
for a tax credit entitled Credit for the Elderly or the Disabled.
3Certain military personnel serving in a combat zone may qualify to have
their pay excluded from gross income subject to federal taxes, including
pay received while hospitalized as a result of wounds, disease, or injury
incurred in the combat zone for up to 2 years after leaving the zone.
4Hawthorne v. City of Beverly Hills, 245 P. 2.d, 352 (1952); Rev. Rul.
68-10, 1968-1 C.B. 50; and Priv. Ltr. 7920009 (Feb. 13, 1979).
Appendix IX: A Appendix IX: GAO Contacts and Staff Acknowledgments
GAO Contacts
Cynthia A. Bascetta, Director (202) 512-7215
Cristina T. Chaplain, Acting Director (202) 512-7215
In addition, Carol Dawn Petersen, Assistant Director; Margie K.
Shields, Analyst-in-Charge; and Diahanna L. Post, Thomas A.
Radwick, and Peter E. Rumble were major contributors to this
report. Joseph A. Applebaum, Chief Actuary; Kenneth J. Bombara,
Senior Economist; and Daniel A. Schwimer, Deputy Assistant General
Counsel, provided technical advice and support.
Disability Benefits Disability Benefits High-Risk Series: An
Update. GAO-05-207 . Washington, D.C.: January 1, 2005.
Military Personnel: DOD Needs to Improve the Transparency and
Reassess the Reasonableness, Appropriateness, Affordability, and
Sustainability of Its Military Compensation System. GAO-05-798 .
Washington, D.C.: July 19, 2005.
21st Century Challenges: Reexamining the Base of the Federal
Government. GAO-05-325SP . Washington, D.C.: February 1, 2005.
Military Personnel: Survivor Benefits for Servicemembers and
Federal, State, and City Government Employees. GAO-04-814 .
Washington, D.C.: July 15, 2004.
VA Benefits: Fundamental Changes to VA's Disability Criteria Need
Careful Consideration. GAO-03-1172T . Washington, D.C.: September
23, 2003.
Military and Veterans' Benefits: Observations on the Concurrent
Receipt of Military Retirement and VA Disability Compensation.
GAO-03-575T . Washington, D.C.: March 27, 2003.
Major Management Challenges and Program Risks: Department of
Veterans Affairs. GAO-03-110 . Washington, D.C.: January 1, 2003.
High-Risk Series: An Update. GAO-03-119 . Washington, D.C.:
January 1, 2003.
DOD Disability: Overview of Compensation Program for Service
Members Unfit for Duty. GAO-01-622 . Washington, D.C.: April 27,
2001.
VA Disability Compensation: Comparison of VA Benefits with Those
of Workers' Compensation Programs. GAO/HEHS-97-5 . Washington,
D.C.: February 14, 1997.
Workers' Compensation: Selected Comparisons of Federal and State
Laws. GAO/GGD-96-76 . Washington, D.C.: April 3, 1996.
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in
meeting its constitutional responsibilities and to help improve
the performance and accountability of the federal government for
the American people. GAO examines the use of public funds;
evaluates federal programs and policies; and provides analyses,
recommendations, and other assistance to help Congress make
informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
The fastest and easiest way to obtain copies of GAO documents at
no cost is through GAO's Web site ( www.gao.gov ). Each weekday,
GAO posts newly released reports, testimony, and correspondence on
its Web site. To have GAO e-mail you a list of newly posted
products every afternoon, go to www.gao.gov and select "Subscribe
to Updates."
The first copy of each printed report is free. Additional copies
are $2 each. A check or money order should be made out to the
Superintendent of Documents. GAO also accepts VISA and Mastercard.
Orders for 100 or more copies mailed to a single address are
discounted 25 percent. Orders should be sent to:
U.S. Government Accountability Office 441 G Street NW, Room LM
Washington, D.C. 20548
To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax:
(202) 512-6061
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail:
[email protected] Automated answering system: (800) 424-5454 or
(202) 512-7470
Gloria Jarmon, Managing Director, [email protected] (202) 512-4400
U.S. Government Accountability Office, 441 G Street NW, Room 7125
Washington, D.C. 20548
Paul Anderson, Managing Director, [email protected] (202)
512-4800 U.S. Government Accountability Office, 441 G Street NW,
Room 7149 Washington, D.C. 20548
Related GAO Products
(130461)
GAO's Mission
Obtaining Copies of GAO Reports and Testimony
Order by Mail or Phone
To Report Fraud, Waste, and Abuse in Federal Programs
Congressional Relations
Public Affairs
www.gao.gov/cgi-bin/getrpt? GAO-06-4 .
To view the full product, including the scope
and methods, click on the link above.
For more information, contact Cristina Chaplain at (202) 512-7215 or
[email protected].
Highlights of GAO-06-4 , a report to congressional committees
April2006
DISABILITY BENEFITS
Benefit Amounts for Military Personnel and Civilian Public Safety Officers
Vary by Program Provisions and Individual Circumstances
Military personnel, as well as civilian public safety officers (PSO), risk
their lives and face the prospect of incurring disabilities as they
protect and defend the general public on a daily basis. To help assess the
appropriateness of disability benefits available to military personnel,
Congress mandated that GAO study the disability benefits available to
federal, state, and local government employees who serve the public in
high-risk occupations and are injured in the line of duty.
In response, GAO compared the disability benefits available to military
personnel with the disability benefits available to civilian PSOs at the
federal level, and in six states and six cities that were selected to
illustrate the range of benefits provided. This study focuses on benefits
provided to law enforcement officers and firefighters at the federal
level, to state police at the state level, and to firefighters at the
local level. For each program included in the review, GAO identified the
benefits available for temporary disability, permanent partial disability,
and permanent total disability, and then calculated the lifetime present
value of the benefits provided to various hypothetical individuals in
different circumstances.
Cognizant agency officials provided only technical suggestions, which were
incorporated as appropriate.
Neither military personnel, nor any of the civilian PSOs included in this
study, consistently have more line-of-duty disability benefits available
to them in all situations. This report highlights the variation in the
type and amount of benefits provided across programs, depending on
specific program provisions and individual circumstances. For example,
during the initial period of treatment, recovery, and evaluation, program
provisions governing the availability of continuation of pay and temporary
disability benefits offer certain advantages for military servicemembers
compared with the selected civilian PSOs. When disabilities are permanent,
however, the amount of benefits provided over a lifetime for permanent
partial or totally incapacitating disabilities are sometimes greater for
military veterans, and sometimes greater for the selected civilian PSOs,
depending on such variables as the type and degree of impairment and the
individual's pre-injury salary level. The figure below illustrates how
these and other variables would affect lifetime compensation and
disability retirement benefits for military personnel, federal PSOs, and
selected state PSOs in two scenarios-a permanent partial disability (leg
amputation) and a permanent total disability (quadriplegia)-for a
hypothetical individual age 35, with 12 years of service and an annual
salary of $60,000.
Comparison of Lifetime Benefits for One Hypothetical Individual in Two
Different Scenarios
GAO is not taking a position on how disability benefits should be
modified. However, GAO believes that any deliberations on this topic
should include an examination of how such changes would affect ensuring
adequate and appropriate benefits for those who serve their country, as
well as the long-term fiscal well-being of the nation.
*** End of document. ***