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					 

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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

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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.

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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. ***