Question: FECA PERIODIC ROLL REVIEW INITIATIVE Explain exactly what you expect to accomplish through your proposal to hire 50 staff to review long-term workers' compensation disability rolls. Answer: As injury claims have grown, and various court rulings and changes in regulations have added procedural steps to claims processing, Federal Employees' Compensation (FECA) staff has concentrated on basic claims actions. While this function has been improved, there has still been a growth in the number of Federal workers receiving long-term benefits. This has risen by 24% since FY 1982, to about 50,000 workers. During the same time medical benefits costs have risen 145%. The 50 term FTE represent the first half-year staffing of a proposed 200-person four-year project. Under the project, teams of claims and rehabilitation personnel would conduct an intensive review of long-term cases; improve medical care; identify workers who could benefit from training or placement to become reemployed; and identify claimants whose work-related disability has resolved. Meanwhile, regular staff will be trained to employ effective techniques and procedures, some tested in FECA over the last two years, in a "Model Compensation Management Program" to manage new claims, and be prepared at the end of 4 years to resume the management of the entire periodic roll. Question: program? What cost savings do you anticipate from this Answer: Since an average totally disabled worker receives about $20,000 annually in wage loss benefits, we believe that significant savings can be achieved, particularly in the third and fourth years of the project. We expect termination of eligibility of some 3,000 long-term disability cases. The terminations will either occur because medical evidence shows that disability has ceased, or, following second opinion examinations or vocational rehabilitation, claimants are returned to work. Net savings in the project's first four years are expected to be approximately $40 million. Additional savings will continue beyond the project's completion as a result of permanent terminations and downward adjustments in eligibility. Still other savings will result from shorter disability periods for new disability cases and from lower costs of medical care. Question: Why are you requesting only 4-year limited term staff, instead of permanent positions? Won't this make it difficult to recruit quality personnel? Answer: We believe that these positions will be very attractive despite their 4-year status. We are targeting recent retirees, and other more experienced people who would not view the 4-year appointment as a barrier. In addition, because of recent slowdowns in the private and governmental sectors, we should find a larger pool of qualified personnel seeking such appointments. Except for the 4-year limit, those hired will have the same benefits as permanent staff, including accruing retirement benefits. Finally, the training and experience received will improve the ability to compete for permanent Federal appointments. Wherever possible, we will recruit term employees for vacancies within our organization. Question: What staff resources are currently utilized for disability management? Answer: Claims examiners, who make up approximately 45 percent of FECA staff, conduct both early case management and management of the long-term disability rolls, adjudicate claims, answer priority correspondence, authorize medical payments, and perform other duties. With increasing incoming workloads and additional procedural requirements in recent years, these resources have focused on front-end claims work. In addition, we have sixteen Rehabilitation Specialists and contract and State Vocational Rehabilitation support. In total, however, we have only been able to return 1,450 persons to work in recent years through rehabilitation and employment. This should be contrasted with a periodic roll of 50,000 (without death cases). OFCCP REDUCTION OF STAFF Question: You are proposing to cut 15 staff in the Office of Federal Contract Compliance Programs, resulting in 100 fewer compliance reviews in fiscal 1992. Why are you de-emphasizing enforcement of affirmative action compliance? Answer: To the contrary, the FTE reductions will not deemphasize enforcement of affirmative action compliance. A number of initiatives implemented over the past few years will maximize the impact of our enforcement efforts. OFCCP has implemented an enforcement strategy based on these initiatives which will maximize the impact of its enforcement activities in spite of the reduced staffing. The strategy includes: 1. increasing litigation against recalcitrant 2. using the media to publicize significant results; 3. 4. 5. coordinating enforcement efforts with other coordinating enforcement efforts with other Federal agencies, principally the Equal Employment Opportunity Commission; improving guidance to our compliance officers through revision of our compliance manual; 6. improving training for compliance officers; 7. increasing use of microcomputer technology; 8. 9. encouraging voluntary compliance by recognizing focusing enforcement efforts on work force 2000 issues such as eliminating attitudinal and organizational barriers to the advancement of women and minorities into high level corporate management occupations. We are already beginning to see the results of these in the increased level of financial awards obtained from contractors over the last few years and the high violation rates resulting from compliance reviews. In fiscal year 1989, we obtained $36.8 million in financial awards. In fiscal year 1990, financial awards totaled $34.7 million. For fiscal year 1991, we have already obtained over $6 million in the first quarter alone. ENFORCEMENT OF EEO REQUIREMENTS Question: How many staff will have to be diverted to carry out your newly acquired responsibility to enforce EEO requirements in apprenticeship and training programs? Answer: It will not be necessary to divert any staff to carry out the newly acquired responsibility for apprenticeship and training programs. OFCCP plans to incorporate these enforcement actions into its "normal" workload. The Memorandum of Understanding with the Bureau of Apprenticeship and Training (BAT) provides for a shared and coordinated effort. In addition to OFCCP and BAT, the Department will use the resources of the Women's Bureau to take advantage of their standing with major community-based groups and expertise in outreach programs for women. With these three highly visible DOL agencies, we expect notable results within a short period of time and without over-taxing the limited resources of any one entity. EMPLOYMENT SERVICE AUTOMATION Question. A number of States have set up early intervention programs to help unemployment insurance claimants return to the workforce quickly. How can we make such programs work if the Employment Service continues to be eroded? I understand that in some states, job applicants can use a self-service approach to finding jobs in the Employment Service local offices. Iowa has a pilot project in Marshalltown where a Workforce Center of the Future will incorporate a variety of computer technologies, including hardware and software designed to allow greater access for both job seekers and potential employers. It seems to me that such an approach would speed up the applicant process so that those people who need extra help in finding jobs can receive the time and attention they need. After all, the Department of Labor--in recent years--has stressed the need to work with hard-to-place, multi-barrier individuals. Yet the Department has repeatedly refused to ask for automation funding for the Employment Service. Answer. The example that you have provided is just one automation model among several other excellent efforts undertaken by the States. Also the Department has developed, and many States are now installing, a system which we call ALEX or automated labor exchange. ALEX provides States the capability to permit jobseekers to conduct automated self-search for job openings by geographic areas, job categories or interests. Question. Why has the $12 million appropriation for ES automation not yet been allocated to any of the automation requests? Answer. The Department will be providing the automation grants to the States in the very near future. The grant awards fall into two broad categories: (1) those which will provide basic automation tools for access of job orders and jobseeker applications by employment service interviewers; and (2) those which provide access to automated services by employers and jobseekers. Most of the resources supporting automation efforts are from the State Wagner-Peyser grants. The Department believes automation can be effectively used to increase State program efficiency and productivity and encourages State Employment Security Agencies (SESAs) to invest available resources in such activities. Question. Why has the Department not taken advantage of such an obvious tool for improving the States and achieving one of its own self-proclaimed goals? Answer. State agencies have always had the flexibility to utilize the resources in their basic grant to fund automation activities. The distribution of the $12 million appropriation will further enhance the States' automation capabilities. INNOVATIVE EMPLOYMENT SERVICE PROGRAMS Question. In many States, Employment Services have developed The innovative programs to speed service, reach hard-to-place job seekers, and contribute to overall economic development. toll-free 1-800-JOB-IOWA information line and Iowa's at-risk youth program come immediately to mind. Can you outline some of the others and what steps the Department has taken to ensure success in these programs? Answer. The Department has developed a number of approaches over the past few years to encourage State Employment Service (ES) agency innovative projects. First, we have completed seven innovative demonstration projects. We provided $200,000 each to seven States to develop innovative approaches aimed at improving ES services. These projects included improving coordination between ES and Job Training Partnership Act program operators; and developing and testing an integrated computer-based assessment, referral and job placement system, as examples. The Department has held Forums to discuss innovations in process in States, and has developed and distributed a catalogue to all States listing those innovations. In addition, we have published the major speeches given at the Forums by futurists, educators, ES administrators, and private industry experts. Overall, we have encouraged States in meetings and in publications to experiment and to analyze future needs and ways to meet them. States have responded by visiting innovative projects in other States to obtain additional details, and then designing their own projects. Since authority has been decentralized to States to make decisions based upon the unique needs of their communities we have seen increased action by States to design program components that are effective and efficient, in other words, programs that work. The Department will continue to work with States to encourage innovation. DELAYS IN BENEFIT PAYMENTS Question. This recession has found the unemployment insurance system ill-prepared to serve jobless workers--there are long lines, overcrowded offices, and payment delays in many parts of the country. Iowa's unemployed are experiencing 3 to 4 week delays in receiving their first unemployment insurance check. Why has this happened? Answer. Due to the national recession, UI workloads have risen rapidly, resulting in delays in claimants receiving their first unemployment compensation check in some States. To cope with the high workloads, some States have curtailed "upfront" integrity-related activities in order to meet workload demands and issue prompt payment of benefits. Many States are able to handle the increased workloads only due to staff working overtime and extended office hours, including Saturdays. Office managers are helping process claims workload in many cases. REPAIRS IN UI SYSTEM Question. Does the President's budget include adequate funds |