Del. Norton Introduces Federal Employee Short-Term Disability Insurance Act

WASHINGTON, Jan. 17 -- Del. Eleanor Holmes Norton, D-District of Columbia, issued the following speech, which was published in the Congressional Record on Jan. 16, introducing the Federal Employee Short-Term Disability Insurance Act:

Mr. Speaker, today, I introduce the Federal Employee Short-Term Disability Insurance Act of 2018, which will help provide financial relief for federal employees who have a short-term injury or disability, become pregnant, or develop a pregnancy-related illness. This bill will offer federal employees short-term disability insurance at no cost to the federal government. Employees will be responsible for 100 percent of the premiums, and will be able to receive disability insurance benefits for up to one year, which would replace a portion of their lost income due to a non-work related injury or illness or pregnancy. These benefits will be particularly beneficial to ensure that our federal employees, who do not yet enjoy paid maternity leave, are able to utilize the 12 weeks of unpaid maternity leave permitted by federal law while continuing to pay their bills, buy groceries and make their mortgage, car and other loan payments without having to deplete their retirement or other savings accounts. Too many federal employees do not take advantage of federal unpaid maternity leave because they have no way to replace the lost income.

I decided to investigate how we could provide short-term disability insurance for federal employees after learning that many of them already buy short-term disability insurance as individuals in the private market at high individual rates. Although federal employees have good health insurance, federal health benefits do not replace lost income if employees are unable to work. Moreover, while federal employees may have available sick or annual leave days, they may not have enough such days to pay the bills if they have to be out of work for an extended period. Although there are long-term disability options for federal employees who become permanently disabled, federal employees do not qualify for such benefits until they have worked for the federal government for at least 18 months. My bill does no more than put federal employees in the same position as their private-sector counterparts, who often have access to disability insurance through an employer at group rates. This bill will not allow participating insurance companies to exclude persons based on preexisting conditions. Because of the federal government's purchasing power, this bill will provide these benefits at a more competitive rate than is available if an employee sought such insurance as an individual, as many do.

According to the Social Security Administration, a 20-year-old worker has a one-in-four chance of becoming disabled by retirement age. The majority of disabilities are not caused by major accidents, but by injuries or illnesses, such as back injuries or cancer, according to the Council for Disability Awareness. There is every reason to allow our federal employees to take advantage of the federal government's group rates to obtain the most reasonable price if they choose to purchase short-term disability coverage on their own at no cost to the federal government.

I strongly urge my colleagues to support this bill.