DOL Annual Report, Fiscal Year 2003
Appendix 4

Increase the employment, retention, and earnings of individuals registered under the WIA Adult program.

PY 2000 — 2001: Same as PY 2002

PY 2002: The goal was not achieved. 74% of those registered for the WIA Adult program were employed in the first quarter after program exit; 84% of those employed in the first quarter after program exit were still employed in the third quarter after program exit. The average earnings increase was $2,900 for those employed in the third quarter after program exit.

PY 2001: The goal was achieved. Of those registered and employed in the first quarter after program exit, 79% were employed in the third quarter after program exit, with increased average earnings of $3,555.

PY 2000: The goal was achieved. Of those registered under the WIA adult program and employed in the first quarter after exit, 78% were employed in the third quarter after program exit, with increased average earnings of $3,684.

PY 2002:

• 70% will be employed in the first quarter after program exit;

• 80% of those employed in the first quarter after program exit will be employed in the third quarter after program exit; and

• The average earnings change will be $3,423 for those who are employed in the first quarter after program exit and are still employed in the third quarter after program exit.

PY 2001:

• 68% will be employed in the first quarter after program exit;

• 78% of those employed in the first quarter after program exit will be employed in the third quarter after program exit; and

• The average earnings change will be $3,361 for those who are employed in the first quarter after program exit and are still employed in the third quarter after program exit.

PY 2000:

• 67% will be employed in the first quarter after program exit;

• 77% of those employed in the first quarter after program exit will be employed in the third quarter after program exit; and

• The average earnings change will be $3,264 for those who are employed in the first quarter after program exit and are still employed in the third quarter after program exit.

Quarterly State WIA reports in the Enterprise Information Management System and Unemployment Insurance Wage Records.

PY 2000, the first full year of WIA implementation, constitutes the baseline year at this time. Targets are derived from the agreed upon levels of performance for all States, and will be regularly reviewed for appropriateness and rigor as performance data using the new source of UI wage records becomes available.

Beginning in PY 2004, the Department will implement the common measures for Federal job training and employment programs. For adult programs, these measures are entered employment, retention, earnings increase, and efficiency. With WIA reauthorization, the common measures for the WIA adult program, the WIA dislocated worker program, and the labor exchange activity, will be applied on a consolidated basis, measuring in the aggregate the overall performance of the workforce system, rather than the performance of these three individual programs.

Improve the outcomes for job seekers and employers who receive public labor exchange services.

PY 1999 — 2001: Same as PY 2002

PY 2002: The goal was not achieved.

• Due to the transition to a new measurement and reporting system, ETA will not have a full set of nation-wide employment and retention data until next year. Beginning in FY 2004, States will begin reporting to DOL the entered employment data for registrants served in the first quarter of PY 2002. Outcome data for registrants served in the other quarters of PY 2002 will be reported in subsequent quarterly reports.

• 10.2 million openings were listed with the public labor exchange: 6.1 million job openings were listed with the State Workforce Agencies and 4.1 million job openings were posted directly on America's Job Bank.

PY 2001: The goal was not achieved.

• There is no prior Employment Service experience in the use of the employment retention indicator for the labor exchange. Beginning in PY 2002, States will use Unemployment wage record data to measure employment retention for the new performance measures.

• The number of job openings listed increased by eight percent as opposed to the target of 10%; 11.8 million openings were listed with the public employment service in Program Year 2001; 7.2 million job openings were listed with the State Workforce Agencies and 4.6 million job openings were posted directly on America's Job Bank.

PY 2000: The goal was achieved.

• 3.9 million (25%) of job seekers who received labor exchange services entered employment;

• The number of job openings listed increased by 26.5% over PY 1999, including 6.9 million with State Workforce Agencies and 5.4 million with America's Job Bank; and

• 66,563 new employers registered with America's Job Bank.

PY 1999: The goal was achieved (all targets reached).

PY 2002:

• 55% of job seekers registered with the public labor exchange will enter employment with a new employer by the end of the second quarter following registration;

• 70% of job seekers will continue to be employed two quarters after initial entry into employment with a new employer; and

• The number of job openings listed with the public labor exchange (both SWAs and AJB) will be at least the number obtained in PY 2001.

PY 2001:

• 76% of job seekers will have unsubsidized jobs six months after initial entry into employment; and

• The total number of job openings listed with the public employment service, including both those listed with State Workforce Agencies and those listed directly with America's Job Bank via the Internet, will increase by 10 %.

PY 2000:

• Increase by one percentage point the share of applicants who receive labor exchange services that enter employment, resulting in more than 3.2 million Employment Service applicants entering employment;

• Increase by 15%, the total number of job openings listed with the public employment service, including both those listed with State Employment Security Agencies (SESAs) and those listed directly with America's Job Bank (AJB) via the Internet; and

• Increase the number of new employers registered with America's Job Bank from 51,000 to 60,000.

PY 1999:

• Increase by one percentage point the share of applicants who receive labor exchange services that enter employment; and

• Increase by 20%, the total number of job openings listed with the public employment service, including both those listed with State Employment Security Agencies (SESAs) and those listed directly with America's Job Bank (AJB) via the Internet.

State reports, UI wage records, and AJB Center Reports.

New labor exchange performance measures and revised reporting requirements were fully implemented effective July 1, 2002. As part of the transition to a new labor exchange performance measurement system, DOL set PY 2002 performance targets for the retention and entered employment indicators as estimates that were based on studies conducted by the Department using PY 1999 and PY 2000 data to simulate the new measures. The Department plans to establish baselines for the entered employment and retention rates for the labor exchange program using outcomes for participants served during PY 2002, but reported to DOL by States during PY 2003.

Beginning in PY 2004, the Department will implement the common measures for Federal job training and employment programs. For adult programs, these measures are entered employment, retention, earnings increase, and efficiency. With WIA reauthorization, the common measures for the WIA adult program, the WIA dislocated worker program, and the labor exchange activity, will be applied on a consolidated basis, measuring in the aggregate the overall performance of the workforce system, rather than the performance of these three individual programs.

Strengthen the registered apprenticeship system to meet the training needs of business and workers in the 21st Century.

FY 2002: Same as FY 2003

FY 2003: The goal was substantially achieved.

• Number of new apprentices: 130,615

• Number of new programs in new and emerging industries: 359

FY 2002: The goal was achieved.

• The number of new registered apprenticeship programs increased to 2,952, an increase of 75% over the established baseline.

• The number of new businesses involved in apprenticeship increased to 5,883, an increase of 99% over the established baseline.

• The number of new apprentices increased to 129,388, an increase of 64% over the baseline.

• The number of new programs in new and emerging industries — at a minimum Information Technology, Health Care and Social Services — increased to 326, an increase of 23% over the baseline.

FY 2003:

• Increase the number of new apprentices over the established baseline from 78,770 to 133,909; and

• Increase the number of new programs in new and emerging industries — at minimum Information Technology, Health Care and Social Services — over the established baseline from 266 to 359.

FY 2002:

• Increase the number of new apprenticeship programs over the established baseline by 10%;

• Increase the number of new businesses involved in apprenticeship over the established baseline by 10%;

• Increase the number of new apprentices over the established baseline by 10%; and

• Increase the number of new programs in new and emerging industries — at minimum Information Technology, Health Care and Social Services — over the established baseline by 10%.

Registered Apprenticeship Information System (RAIS) established in February 2002, and Apprenticeship Information Management System (AIMS)

DOL established the baseline for each of the following indicators using the average of FYs 1999, 2000 and 2001 data:

• New apprenticeship programs: 1,685

• New businesses involved in apprenticeship: 2,953

• New apprentices: 78,770

• New programs in new and emerging industries: 266

FY 2003: Implement new demonstration programs, through grants, designed to develop and test strategies to address the special needs of persons with significant disabilities.

FY 2002: Implement 12 demonstration programs, through grants, designed to develop and test strategies and techniques that need to be implemented in order for One-Stop Centers and WIA youth programs to effectively serve persons with significant disabilities.

FY 2003: The goal was not achieved. A total of 42 pilot projects were initiated. Sixteen pilot projects focus on Olmstead populations, while 21 focus on Youth (seven of these are new technology skills projects) and five focus on Customized Employment.

FY 2002: The goal was achieved. Sixteen demonstration programs for One-Stop Centers and WIA Youth programs were implemented. Additionally, 22 demonstration programs in other areas related to employment of adults and youth with disabilities were implemented.

FY 2003: The number of pilot projects initiated and the program areas.

• Implement 30 new Olmstead grant projects, targeted at persons with significant disabilities who are institutionalized.

• Implement 12 youth grant projects (six of which are new technology skills projects) to assist youth through the One-Stop Centers and the WIA youth programs.

FY 2002: The number of pilot projects initiated and the program areas.

ODEP Program Management Division.

Available at the close of FY 2004.

ODEP expanded the focus of its 2003 performance goal beyond initiating projects focused on Olmstead populations and Youth.

Increase the employment and retention rate of veteran job seekers registering for public labor exchange services.

FY 2002: 34% of veteran job seekers registering for public labor exchange services will be employed in the first or second quarter following registration.

FY 2001: 27% of those veterans and other eligible persons registering for public labor exchange services will enter employment each year through assistance provided by VETS' funded staff and the Wagner-Peyser funded systems.

FY 2000: 27% of veterans that register with the Public Employment Service will enter employment and for DVOP and LVER staff the ratio will be 30%.

FY 2003: The goal was not measured. A major transition was underway during FY 2003 to a new system of measuring and reporting the outcomes of labor exchange services for veterans. Performance in response to the FY 2003 goal will be treated in the FY 2004 Annual Performance and Accountability Report.

FY 2002: The goal was achieved. The entered employment rate for veterans assisted by the public employment service system was 42.84%.

FY 2001: The goal was achieved. The entered employment rate for veterans assisted by the public employment service system was 33%.

FY 2000: The goal was achieved. For DVOP and LVER staff, the entered employment rate was 32%. The entered employment rate for veterans helped by the public employment service system was 32%.

FY 2003:

• 58% of veteran job seekers will be employed in the first or second quarter following registration.

• 72% of veteran job seekers will continue to be employed two quarters after initial entry into employment with a new employer.

FY 2000-2002: Percent of veterans and other eligible persons served by DVOP and LVER specialists who enter employment.

State Workforce Agency administrative data and State UI wage record information.

PY 2003

During FY 2003, a major transition was underway within the Department to a new system for measuring and reporting the outcomes of public labor exchange services. This new system is based on a revised version of the ETA 9002 information collection, designed to be consistent with the common measures. Due to this transition, the historic results reported previously no longer provide comparable data on outcomes. Accordingly, the data to be reported during FY 2004 will establish new baseline performance levels. In addition, those results will be collected, compiled, and reported on a program year basis, rather than the fiscal year basis applicable to historic results. Therefore, the results to be included in the FY 2004 Annual Performance and Accountability Report will reflect those out somes reported during PY 2003 that respond to the performance goal cited above, which was established in the FY 2003 Annual Performance plan.

Because of the lack of nationwide performance results for FY 2003, ETA and VETS jointly sponsored a pilot data collection initiative in seven states. This pilot applied the new method of measuring outcomes to a cohort of registrants served previously by the public labor exchange. The average rate of entry to employment in the sampled states among the veteran registrants 57.4% and their average rate of retention in employment was 75.4%. These sample results are not statistically representative of the nationwide outcomes experienced by veterans served by the public labor exchange. However, these results indicate that the goal levels established for FY 2003 and future fiscal years are attainable. Performance

At least 54.5% of veterans enrolled in Homeless Veterans Reintegration Project (HVRP) grants enter employment.

FY 2002: At least 54% of veterans enrolled in Homeless Veterans Reintegration Project grants enter employment. A baseline retention rate will be established.

FY 2001: At least 50% of veterans enrolled in Homeless Veterans Reintegration Project grants enter employment.

FY 2003: The goal was achieved. During FY 2003, 60.3% of the homeless veteran participants served by HVRP grantees successfully entered employment.

FY 2002: The goal was not achieved. The FY 2002 entered employment rate was 54.4%, exceeding the target of 54%. However, the baseline for retention was not established.

FY 2001: The goal was achieved. The entered employment rate was 54%.

Percentage of veterans enrolled in Homeless Veterans Reintegration Projects entering employment.

Reports submitted by VETS grantees.

FY 1999: 54%

During FY 2003, the Department implemented a policy of awarding HVRP grants on the basis of a twelve-month performance period that begins each year on July 1 and ends the following year on June 30. Performance achieved during this transition year (July 1, 2003 - June 30, 2004) will be included in the FY 2004 Annual Performance and Accountability Report.

Increase entrance and retention of youth registered under the WIA youth program in education or employment.

PY 2000 — 2001: Same as PY 2002

PY 2002: This goal was achieved. 55% of the 14-18 year-old youth who entered the program without a diploma or equivalent attained a secondary school diploma or equivalent by the first quarter after exit; 67% of the 19-21 year-old youth were employed in the first quarter after exit; and 80% of the 19—21 year-old youth employed in the first quarter after exit were employed in the third quarter after program exit.

PY 2001: The goal was achieved. Of the 14-18 year-old youth, 50.2% were either employed, in advanced training, post-secondary education, military service or apprenticeships in the third quarter after program exit. Of the 19-21 year-old youth, 75% were employed in the third quarter after program exit.

PY 2000: The goal was substantially achieved (according to preliminary data). Of the 14-18 year-old youth, 47.4% were either employed, in advanced training, post-secondary education, military service, or apprenticeships in the third quarter after program exit. Of the 19-21 year-old youth, 74.4% were employed in the third quarter after program exit.

PY 2002:

• 51% of the 14-18 year-old youth who enter the program without a diploma or equivalent, will attain a secondary school diploma or equivalent by the first quarter after exit;

• 63% of the 19-21 year-old youth will be employed in the first quarter after exit; and

• 77% of the 19-21 year-old youth employed in the first quarter after exit will be employed in the third quarter after program exit.

PY 2001:

• 50% of the 14-18 year-old youth will be either employed, in advanced training, post-secondary education, military service, or apprenticeships in the third quarter after program exit; and

• 75% of the 19-21 year-old youth employed in the first quarter after exit will be employed in the third quarter after program exit.

PY 2000:

• 50% of the 14-18 year-old youth will be either employed, in advanced training, post-secondary education, military service, or apprenticeships in the third quarter after program exit; and

• 70% of the 19-21 year-old youth employed in the first quarter after exit will be employed in the third quarter after program exit.

Quarterly State WIA reports included in the Enterprise Information System (EIMS) and Unemployment Insurance wage records.

Annual report data from PY 2000 and PY 2001 were averaged in order to establish the baseline for each of these measures. Using this methodology the baselines are as follows:

• Younger youth diploma attainment rate: 47%

• Older youth employment rate: 66%

• Older youth retention rate: 78% Comment

Beginning in PY 2004, the Department will implement the common measures for Federal job training and employment programs. For youth programs, these measures are placement in employment or education, attainment of a degree or certificate, and literacy and numeracy gains. Upon implementation of the common measures, proposed performance targets will be reviewed and may be revised for the WIA youth program.

Increase participation, retention, and earnings of Job Corps graduates in employment and education.

PY 2000 — 2001: Same as PY 2002

PY 1999: Increase participation and earnings of Job Corps graduates in employment and education.

PY 2002: This goal was not achieved, although two of the four targets were substantially reached. 87% of Job Corps graduates entered employment or enrolled in education; Graduates with jobs were employed at average hourly wages of $8.03; 63% continued to be employed or enrolled in education six months after their initial placement date; and the number of students who attained high school diplomas while enrolled in Job Corps increased by 96% (6,381) from PY 2001.

PY 2001: The goal was substantially achieved. 90% of Job Corps graduates got jobs or were enrolled in education at an average hourly wage of $7.96. 64% of graduates continued to be placed six months after their initial placement date.

PY 2000: The goal was substantially achieved. 91% of Job Corps graduates got jobs or pursued education at an average hourly wage of $7.97. 67% still had a job or were pursuing education after 90 days.

PY 1999: The goal was achieved. 88.3% of Job Corps graduates entered employment or enrolled in education. For those placed in jobs, the average hourly wage was $7.49. 71.3% of graduates continued to be employed or enrolled in education 90 days after their initial placement date.

PY 2002:

• 90% of Job Corps graduates will enter employment or be enrolled in education;

• 65% will continue to be employed or enrolled in education six months after their initial placement date;

• Graduates with jobs will be employed at average hourly wages of $8.20; and

• The number of students who attain high school diplomas while enrolled in Job Corps will increase by 20% from PY 2001.

PY 2001:

• 85% of Job Corps graduates will get jobs with entry average hourly wages of $7.25 or be enrolled in education;

• 70% will continue to be employed or enrolled in education six months after their initial placement date.

PY 2000:

• Increase the percent of Job Corps graduates who get jobs or pursue education to 85%;

• Those who get jobs will have an average entry wage increase from the previous year and 70% will still have a job or will be pursuing education after 90 days.

PY 1999:

• 75% of Job Corps trainees will get jobs or pursue further education, with those obtaining jobs having an average starting wage of $6.50 per hour.

Job Corps Management Information System.

Baseline data for the four Program Year 2000 indicators are derived from PY 2001 performance results; as follows:

• Graduate employment rate: 89%

• Graduate average hourly wage at entered employment: $7.96

• Employment/education retention rate: 64%

• Number of high school diplomas: 3,260

Job Corps targets severely disadvantaged youth with a variety of barriers to self-sufficiency, including deficiencies in education and job skills. To achieve the enhanced quality of placement and job retention required by the Workforce Investment Act, in PY 2005, Job Corps will focus resources on program improvements that enhance the full Job Corps experience for students, from reinforced outreach and admission strategies and center program effectiveness to intensified center and post-center career development support.

Beginning in PY 2004, the Job Corps will implement the common measures for Federal job training and employment programs. For youth programs, these measures are placement in employment or education, attainment of a degree or certificate, and literacy and numeracy gains. Upon implementation of common measure, proposed performance targets will be reviewed and may be revised.

Increase retention of Youth Opportunity Grant participants in education, training, or employment.

PY 2001: Same as PY 2002.

PY 2002: This goal was not achieved.

• Younger Youth diploma attainment rate: 46%
• Older youth entered employment rate: 50%
• Older youth employment retention rate: 78%

PY 2001: Not measured.

PY 2002:

• 51% of the 14-18 year-old youth who enter the program without a diploma or equivalent will attain a secondary school diploma or equivalent by the first quarter after exit;
• 63% of the 19-21 year-old youth will be employed in the first quarter after exit; and
• 77% of the 19-21 year-old youth employed in the first quarter after exit will be employed in the third quarter after program exit.

PY 2001:

• 50% of the 14—18 year-old participants placed in employment, the military, advanced training, post-secondary education, or apprenticeships will be retained at six months.
• 70% of the 19—21 year-old participants employed in the first quarter after exit will be employed in the third quarter after program exit.

Youth Opportunity Grant program grantee reports and Unemployment Insurance wage records.

PY 2002 is the first year in which DOL is reporting against the indicators for Youth Opportunity Grants. With DOL's limited experience serving a largely out of school youth population, the Department used baselines from the WIA youth formula-funded program to set performance targets for the Youth Opportunity Grant program.

The final year of funding for the Youth Opportunity Grant Program will be FY 2005.

Data for the younger youth diploma rate represents complete data from all youth opportunity grantees. However, data for the older youth entered employment rate and older youth employment retention rate does not include data from all youth opportunity grantees. Due to problems with local grantees obtaining access to State Unemployment Insurance (UI) wage records, many of the youth opportunity grantees are unable to report on the UI-based measures. Grantees continue to work with States to access the wage records, and as more data becomes available DOL will update the status of these two measures.

Produce and disseminate timely, accurate, and relevant economic information.

FY 1999-2002: Same as FY 2003.

FY 2003: The goal was achieved. See table below for detailed results.

FY 2001-FY 2002: The goal was achieved.

FY 2000: The goal was substantially achieved. BLS missed the timeliness target for the Employment Cost Index and the accuracy target for the Producer Price Index.

FY 1999: The goal was not achieved. BLS missed the timeliness targets for the National Labor Force; Employment, Hours, and Earnings; and Producer Price Index; and the accuracy target for the Producer Price Index.

Program Area

Dimension

Indicator

Target

Result

National Labor Force

Timeliness

Percentage of releases that was prepared on time.

100%

100%

Accuracy

Number of months that a change of at least 0.25 percentage point in the monthly national unemployment rate was statistically significant at the 90% confidence level.

12

12

Employment, Hours,
and Earnings

Timeliness

Percentage of releases that was prepared on time.

100%

100%

Accuracy

Root mean square error of total nonfarm employment (a measure of the amount of revision).

<70,000

47,000*

Consumer Price Index

Timeliness

Percentage of releases that was prepared on time.

100%

100%

Accuracy

Number of months that the standard error on the 12-month change in the U.S. City Average All Items CPI-U Index was 0.25 percentage point or less.

12

12

Producer Price Index

Timeliness

Percentage of releases that was prepared on time

100%

100%

Accuracy

Percentage of domestic output, within the scope of the PPI, which the
PPI covers:

Goods Produced
Services Produced
Total Production

85.1% 54.0% 63.3%

85.1% 54.0% 63.3%

U.S. Import and Export Price Indexes

Timeliness

Percentage of releases that was prepared on time.

100%

100%

Accuracy

Percent of months that the change in the one-month Import Price Index between the first-published and final release was in the range of plus or minus 0.4 percentage point.
Percent of months that the change in the one-month Export Price Index between the first-published and final release was in the range of plus or minus 0.2 percentage point.

100%

100%

Employment Cost Index

Timeliness

Percentage of releases that was prepared on time

100%

100%

Accuracy

Number of quartes the change in the civilian compensation less sales index was within plus or minus 0.5% at the 90% confidence level.

4

4

Internet Usage

Access

Improve the BLS Internet site, to include (1) providing access to interactive maps that improve user understanding of geographically based data series, and (2) expanding access to National Labor Force statistics by building a new interavtive query tool tailored to the program's wealth of demographic information.

N/A

Completed

Percentage of releases of National Labor Force; Employment, Hours, and Earnings; Consumer Price Index; Producer Price Index; U.S. Import and Export Price Indexes; and Employment Cost Index that are prepared on time; measures of accuracy for each Principal Federal Economic Indicator; and BLS Internet site improvement initiative.

Office of Publications and Special Studies report of release dates against release schedule of BLS Principal Federal Economic Indicators; News releases for each Principal Federal Economic Indicator; Announcement of new Internet functionality on BLS "What's New" page.

Timeliness measures of 100% for each economic indicator. (Baseline is FY 1997 for National Labor Force statistics; Employment, Hours, and Earnings; Consumer Price Index; Producer Price Index; and Employment Cost Index. Baseline is FY 2001 for U.S. Import and Export Price Indexes.)

Quality measures:

National Labor Force: Number of months that a change of at least 0.25 percentage point in the monthly national unemployment rate was statistically significant at the 90% confidence level = 12. (Baseline is FY 1997.)

Employment, Hours, and Earnings: Root mean square error of total nonfarm employment (a measure of the amount of revision) is less than 70,000. (Baseline is FY 2000.)

Consumer Price Index: Number of months that the standard error on the 12-month change in the U.S. City Average All Items CPI-U Index was 0.25 percentage point or less = 12. (Baseline is FY 2000.)

Producer Price Index: Percent of domestic output, within the scope of the PPI, which the PPI covers: goods produced = 85.1%; services produced = 38.8%; total production = 52.6%. (Baseline is FY 1997.)

U.S. Import and Export Price Indexes: (1) Percent of months that the change in the one-month Import Price Index between the first-published and final release was in the range of plus or minus 0.4 percentage point. (2) Percent of months that the change in the one-month Export Price Index between the first-published and final release was in the range of plus or minus 0.2 percentage point. (Baseline will be FY 2003.)

Employment Cost Index: Number of quarters the change in the civilian compensation less sales index was within plus or minus 0.5% at the 90% confidence level = 4. (Baseline is FY 1997.)

Internet access: Improve the BLS Internet site, to include (1) providing access to interactive maps that improve user understanding of geographically based data series, and (2) expanding access to National Labor Force statistics by building a new interactive query tool tailored to the program's wealth of demographic information.

In order to increase the relevance of BLS information, BLS consults with advisory councils and other researchers. The Federal Economic Statistics Advisory Committee (FESAC) was continued in FY 2003 as were the BLS Business and Labor Research Advisory Councils. BLS and the Employment and Training Administration also continued to meet on a quarterly basis with State Labor Market Information Directors from each of the ten DOL regions to explore ways to improve the relevancy of our products for State and local (or subnational) data users.

*Root mean square error (RMSE) calculated using the most recent revised information available, August 2003 data.

Improve the accuracy, efficiency, and relevancy of economic measures.

FY 1999-2002: Same as FY 2003.

FY 2003: The goal was achieved. See detailed results below. Since the performance indicators are the accomplishment of milestones that are specific to the fiscal year, there is no continuity in indicators from year to year, even though the performance goal remained the same.

FY 2002: The goal was achieved.

FY 2001: The goal was not achieved. Four of the six milestones were achieved. The milestones for the American Time Use Survey and the Producer Price Index warehouse construction industry project were not met.

FY 1999-FY 2000: The goal was achieved.

Milestones for Significant New or Enhanced Efforts in FY 2003

1. NAICS Conversion: Achieved. Conversion to the North American Industry Classification System (NAICS) for the National Labor Force data series was completed with the release of January data in February 2003. Conversion for Employment, Hours, and Earnings was completed. The new series was introduced in March 2003 for State and Metropolitan Area series; conversion of national series was completed in June 2003. Conversion for the Job Openings and Labor Turnover Survey was completed with the release of May 2003 data in August 2003. In addition, conversion for the industry labor productivity series was completed in September 2003.

2. CPI, Item Sample Update: Achieved. Selection of Consumer Price Index (CPI) item categories for resampling in 2003 was completed. A continuing evaluation of the new item samples relative to the old item samples will be conducted to determine if the objective of keeping samples more in line with current conditions is being achieved with the two-year item rotation process.

3. CPI, Electronic Data Collection: Achieved. A staged deployment began in September 2002, and was completed with all 87 CPI pricing areas in April 2003. Printing of paper pricing schedules ceased in August 2003.

4. U.S. Import and Export Price Indexes: Achieved. The system components of the modifications necessary to support the 2004 introduction of annually weighted U.S. Import and Export Price Indexes was completed. This project is on schedule for publishing annually weighted indexes in February 2004 with the release of January 2004 data.

5. Industry Productivity: Achieved. Labor productivity and unit labor cost measures for six new service-producing industries were published in January 2003. Multifactor productivity and related cost measures for the airline transportation industry were published in September 2003.

6. BLS IDCF: Achieved. The Internet Data Collection Facility (IDCF) is currently being used to collect respondent information for the Employment, Hours, and Earnings program and the Survey of Occupational Injuries and Illnesses.

Milestones for Significant New or Enhanced Efforts in FY 2003

1. Complete conversion of Employment, Hours, and Earnings; Job Openings and Labor Turnover Survey; and National Labor Force data series to the North American Industry Classification System.

2. Begin implementation of a two-year rotation process to update item samples within existing establishments for the Consumer Price Index.

3. Complete a staged implementation of electronic data collection for Consumer Price Index items other than rent.

4. Complete all the system components of the modifications necessary to support the 2004 introduction of annually weighted U.S. Import and Export Price Indexes.

5. Produce measures of labor productivity and unit labor costs for two additional service-producing industries and multifactor productivity and related cost measures for one additional service-producing industry. 6. Implement the use of the BLS Internet Data Collection Facility in at least two surveys.

BLS Quarterly Review and Analysis System.

Since the performance indicators are the accomplishment of milestones, baselines are not applicable.

Indicators for goal 1.3B reflect the BLS commitment to continuous improvement of its statistical processes and products. These indicators are significant milestones towards the accomplishment of this improvement goal.

Covered American workplaces legally, fairly, and safely employ and compensate their workers.

FY 2002: Same as FY 2003.

FY 2003: The goal was substantially achieved; 12 of 13 targets were reached.

1. The average number of days to conclude a complaint declined to 108 days — a 16% decline.

2. Both performance targets were reached.

a. 37% of reinvestigations were without violations — a three percentage point increase.
b. 17% of reinvestigations (prior violators) had identical violations — a two percentage point decrease.

3.a. All five targets were reached.

i. 91% of employees in Southern California were paid "on the payroll."
ii. 715 manufacturers in Southern California monitor their contractor shops for compliance (including unannounced visits and payroll reviews) — a 2.1% increase.
iii. 73 new contractors in New York City participate in the "Compliance Assistance Program for New Contractors" — a 5.8% increase.
iv. 158 manufacturers in New York City monitor their contractor shops for compliance — a 5.3% increase.
v. 33% of employees in New York City are paid "on the payroll."

3.b. One of two targets was reached.

i. 77% of employees in residential living establishments with overtime violations were themselves the subject of an overtime violation — a decline of six percentage points.
ii. 48% of nursing home complaint cases were concluded within 180 days — and increase of six percentage points.

3.c. All three targets were reached.

i. Measurement will take place in FY 2004.
ii. 256 agricultural housing providers corrected violations following an investigation — a 53% increase.
iii. 133 agricultural housing providers corrected violations following a first investigation — a 37% increase.

FY 2002: The goal was substantially achieved.

1. All three targets were reached:

a. 34% of reinvestigations were without violations.
b. 25% of reinvestigations (prior violators) had any violation.
c. 19% of reinvestigations (prior violators) had identical violations.

2a. Three of five targets were reached:

i. 53% of manufacturers monitor their contractor shops for compliance in southern California — a 12 percentage point increase.
ii. The average number of monitoring components used by manufacturers in monitoring their contractors for compliance in southern California in FY 2002 is 6.37 — a 15% increase.
iii. 92% of contractors in southern California pay all employees on the payroll — a 29 percentage point increase.
iv. 43% of new contractors in New York City participating in the NYC Compliance Assistance Program were in compliance — a decline of eight percentage points.
v. 42% of contractors in New York City pay all employees on the payroll — a nine percentage point decline.

2b. All three targets were reached:

i. 16,426 additional employees of multi-establishment nursing home corporations impacted by corporate proactive steps such as training and self-audit.
ii. 7,681 employers (nursing homes) were provided compliance assistance information through seminars and other outreach efforts — and increase of 216%
iii. 77% of employers (residential living) were in compliance with the record keeping requirements of the Fair Labor Standards Act.

2c. All targets were reached:

i. 61% of employers were in compliance with the MSPA disclosure provisions.
ii. 91% of employers were in compliance with the MSPA wage provisions.
iii. 74% of employers were in compliance with the MSPA housing safety and health provision.
iv. 88% of employers were in compliance with the MSPA vehicle safety provisions (transportation).
v. 90% of employers were in compliance with the MSPA drivers license provisions (transportation).
vi. 85% of employers were in compliance with the MSPA vehicle insurance provisions (transportation).
vii. 98% of investigated employers were in compliance with child labor provisions.

FY 2003:

1. Reducing employer recidivism.

a. Decreasing the average number of days to conclude a complaint by two percent over the FY 2002 baseline.
b. Increase the percent of reinvestigations without any violations by two percentage points
c. Decrease the percent of reinvestigations with identical violations by two percentage points.

2. Increasing compliance in industries with chronic violations.

a. As indicated in the garment manufacturing industry by:

i. Establish a baseline of the percent of employees in southern California paid "on the payroll."
ii. Increase by two percent the number of manufacturers that monitor their contractor shops for compliance in southern California (including conducting unannounced visits and payroll reviews).
iii. Increase by five percent the number of new contractors in New York City participating in the "Compliance Assistance Program for New Contractors."
iv. Increase by two percent the number of manufacturers in New York City that monitor their shops for compliance.
v. Establish a baseline of the percent of employees in New York City paid "on the payroll."

b. As indicated in the long-term health care industry by:

i. Increase by two percent the percent of employees in the residential living (group home) segment of health care industry paid in compliance with the overtime requirements of the Fair Labor Standards Act.
ii. Increase by one percent the percent of nursing home complaint cases concluded in 180 days.

c. As indicated in agricultural commodities by:

i. Increase compliance among agricultural employers subject to the DWHaT provisions of MSPA through targeted compliance assistance programs; to be measured in FY 2004.
ii. Increase by two percent the number of agricultural housing providers who corrected violations following an investigation.
iii. Increase by one percent the number of agricultural housing providers who corrected violations following a first investigation.

FY 2002:

1. Reducing employer violation recidivism. In FY 2002, establish baselines for:

a. Percentage of reinvestigations without violations.
b. Percentage of reinvestigations with any violation.
c. Percentage of reinvestigations with identical violations.

2. Increasing compliance in industries with chronic violations.

a. As indicated in the garment manufacturing industry by:

i. Increase by two percentage points the number of manufacturers that monitor their contractor shops for compliance in southern California.
ii. Increase by two percent the average number of monitoring components used by manufacturers in monitoring their contractors for compliance in southern California.
iii. Increase by two percentage points the number of contractors in southern California that pay all employees on the payroll.
iv. Increase by four percentage points the level of compliance of new contractors in New York City through compliance education.
v. Increase by two percentage points the percentage of contractors in New York City that pay all employees on the payroll.

b. As indicated in the long-term health care industry by:

i. Increase by 6,000 the number of employees of multi-establishment nursing home corporations impacted by corporate proactive steps, such as training and self-audit.
ii. Increase by five percent the number of employers (nursing homes) that were provided compliance assistance information through seminars and other outreach efforts.
iii. Establish a baseline of the number of employers in compliance with the record keeping requirements of the Fair Labor Standards Act.

c. As indicated in agricultural commodities by:

In FY 2002, establish baselines of compliance with the Migrant and Season Agricultural Worker Protection Act (MSPA) provisions of disclosure, wages, housing and transportation and with the child labor provisions of the Fair Labor Standards Act relative to selected agricultural commodities in various locations in the U.S.

FY 2003:

Wage and Hour Investigator Support and Reporting Database (WHISARD); WHD significant activity reports; regional logs and reports on local initiatives; and statistically valid investigation-based surveys.

FY 2002:

1. Wage and Hour Investigator Support and Reporting Database (WHISARD).

2. Wage and Hour Investigator Support and Reporting Database (WHISARD) data for garment manufacturer investigations; WHD significant activity reports on health care activities; WHISARD data and regional logs on agricultural activities; statistically valid investigation-based compliance surveys in defined industries.

FY 2003:

1. The average number of days to conclude a complaint is 129.

2.a. 34% of reinvestigations are without violations.

2.b. The percent of reinvestigations with identical violations is 19%.

3.a.i. TBD in FY 2003.

3.a.ii. Of the 1,700 manufacturers in southern California, 41% (700) monitor their contractor shops and 21.3% (362) conduct both unannounced visits and payroll reviews.

3.a.iii. 69 contractors participate in the "Compliance Assistance Program for New Contractors."

3.a.iv. Of the 1,358 manufacturers in NYC, 11% (150) monitor their contractor shops.

3.a.v. TBD, baseline being established in FY 2003.

3.b.i. 83% of residential living employees are paid in compliance with the FLSA overtime provisions.

3.b.ii. 42% of nursing homes complaint-based full investigations are concluded in 180 days.

3.c.i. TBD in FY 2003.

3.c.ii. 167 housing providers corrected housing violations following an investigation.

3.c.iii. 97 housing providers investigated for the first time corrected housing violations following an investigation.

FY 2002:

1. Baselines to be determined in FY 2002.

2a. i. 41%. 2a.ii. 5.5 (of a total of seven).

2a.iii. 63%. 2a.iv. 51%. 2a.v. 52%. 2b.i. 48,000 employees.

2b.ii. 2,437 employers.

2b.iii. Baselines to be determined in FY 2002.

2c. Baselines to be determined in FY 2002.

3.b.i. The decline in the percent of residential living employees paid in compliance with the overtime standards is in large part a reflection of the differences in the average size of residential living facilities with overtime violations between the two years. The data for this indicator are taken from the agency's database of directed investigations concluded during the fiscal year where overtime violations were found. While the percentages provide trend data on employees affected by overtime violations, they do not represent a statistically valid assessment of the percent of employees in this industry who were the subject of an overtime violation. Rather, the data provide an indication of the severity of overtime violations when an employer is not in compliance with the overtime standards. The measure is not adjusted to account for size differences among the employers in the database. Targeting criteria in fiscal year 2003 may have introduced some bias in the database universe. For example, in fiscal year 2002, residential living facilities with overtime violations on average had 77 employees as compared to 47 employees in 2003. In fiscal year 2003, the smaller establishments tended to have overtime violations. As a result, the percent of employees that were subject to an overtime violation in the smaller facilities tended to be higher. To account for a more accurate measurement of the number of employees paid in compliance with the overtime provisions, WHD will be conducting a statistically valid investigation-based survey of the health care industry in fiscal year 2004.

3.c.i. In fiscal year 2002, WHD entered into targeted compliance assistance programs with three employer associations. These associations represent over 300 agricultural employers. Next fiscal year, WHD will seek to increase compliance among agricultural employers through these targeted assistance programs.

Advance safeguards for union financial integrity and democracy and the transparency of union operations.

FY 2002: Same as FY 2003

FY 2003: The goal was not achieved; two of three targets were reached.

1. a. The timely filing of union annual financial reports by unions with annual receipts over $200,000 was 64%.
b. A baseline was established for the percentage of filed reports determined to be sufficient for public disclosure: 73%.
2. The percentage of investigative resources applied to criminal investigation that result in convictions is increased to 63%.

FY 2002: The goal was achieved.

1. DOL initiated the internet-based public disclosure system in June 2002. A baseline for the timely filing of union reports was established at 44%.
2. A baseline of 50% was established for the percentage of investigative resources applied to criminal cases that result in conviction.

FY 2003:

1. Improving timely filing of union annual financial reports that contain information sufficient for public disclosure. In FY 2003:
a. The timely filing of union annual financial reports by unions with annual receipts over $200,000 will increase to 85%.
b. A baseline for the percentage of filed reports determined to be sufficient for public disclosure will be established in FY 2003.
2. Extending Labor-Management Reporting and Disclosure Act protections for union financial integrity to a greater number of labor organizations through a more effective use of investigative resources. In FY 2003 the percentage of investigative resources applied to criminal investigation that result in convictions is increased to 53%.

FY 2002:

1. Improvement in the timely filing of union annual financial reports that contain information sufficient for public disclosure. In FY 2002, initiate a new electronic forms
application and electronic submission process and establish a baseline for timely filing under the new process.
2. Extending Labor-Management Reporting and Disclosure Act protections for union financial integrity to a greater number of labor organizations through the more
effective use of investigative resources. In FY 2002, establish a baseline of the percentage of investigative resources applied to criminal investigations that
result in convictions.

1. Labor Organization Reporting System.
2. OLMS Case Data System.

1. a. 44%;
    b. 73%

2. 50%

Indicator 1a: Timely and accurate reporting by unions is critical to the LMRDA objectives for union transparency, financial integrity, and democracy. The timely filing rate of 63% falls significantly short of the 85% goal. In FY 2002, the 85% mark was achieved. However, in FY 2003 OLMS established more stringent guidelines for determining timeliness, allowing no more than three days beyond the statutory due date as a benchmark for timely filing. In FY 2002, a 14-day grace period had been allowed. OLMS imposed the stricter standard for timeliness to achieve better results and will continue to focus efforts to achieve that end.

2. Union financial integrity is also essential to a competitive workforce. To ensure effective use of resources applied to criminal investigations, OLMS established the indicator to increase the percentage of resources applied to criminal investigations that result in convictions. As that percentage increases, greater direct benefit is provided to the American workforce through enforcement of union financial integrity protections. The performance result in FY 2003 demonstrates an increase in this benefit.

Make timely and accurate benefit payments to unemployed workers, facilitate the reemployment of Unemployment Insurance claimants, and set up Unemployment tax accounts promptly for new employers.

FY 2002: Same as above.

FY 2000 — 2001: Unemployed workers receive fair Unemployment Insurance benefit eligibility determinations and timely benefit payments.

FY 2003: This goal was substantially achieved.

• Percent of intrastate payments made timely: 89%

• Benefit payment accuracy rate: 56.1%

• Percent of employer tax liability determinations made timely: 83.7%

• Entered employment: This target was reached. DOL developed a measure and a method to obtain entered employment information on UI claimants. Six States are pilot testing the method, and their results will be used to establish a baseline in early FY 2004.

FY 2002: The goal was not achieved.

• Timely benefit payments: 88.7% of first payments were made within three weeks, versus a target of 91% and a baseline of 90.3%.

• Prompt set-up of tax accounts: 81.7% of new status determinations were made within 90 days of the end of the quarter the employers became liable for UI taxes and reports, versus a target of 80%.

• Accurate benefit payments. After consultation with the system on alternatives, a measure of integrity was selected, and a baseline and FY 2003 target were set.

• Alternative measures for the rate UI claimants have entered into employment were developed and have been presented to the Assistant Secretary. Discussion with States may follow. No data will probably be available to produce baseline estimates before early FY 2004.

FY 2001: The goal was not achieved.

• Twenty-five States met or exceeded the minimum performance criterion for benefit adjudication quality (nationwide, 71.1% of all non-monetary determinations were adequate) against the FY 2001 target of 26; and

• Forty-two states met or exceeded the Secretary's Standard for intrastate payment timeliness against a target of 48 states (nationally, 90.3% of all intrastate first payments were made within 14/21 days).

FY 2000: The goal was substantially achieved.

• 23 States met or exceeded the minimum performance criterion for benefit adjudication quality against the FY 2000 target of 24 states (nationwide, 70.3% of all non-monetary determinations were adequate, the same as in FY 1999)

• 47 States met or exceeded the Secretary's Standard for intrastate payment timeliness against a target of 47 states (nationally, 89.9% of all intrastate first payments were made within 14/21 days, up from 89.6% in FY 2000).

FY 2003:

• Payment Timeliness: 91% of all intrastate first payments will be made within 14/21 days;

• Payment Accuracy: Establish for recovery at least 59% of all estimated detectable overpayments.

• Facilitate Reemployment: A data source will be selected and baseline for the entered employment rate of Unemployment Insurance claimants will be established during early FY 2004 (earlier if data are available); and

• Establish Tax Accounts Promptly: 80% of new employer status determinations will be made within 90 days of the end of the first quarter in which liability occurred.

FY 2002:

• Payment Timeliness: 91% of all intrastate first payments will be made within 14/21 days;

• Payment Accuracy: In FY 2002, a measure of payment accuracy will be established after consultation with system partners and stakeholders, and a baseline set, to improve Unemployment Insurance Payment Accuracy nationwide. A target for FY 2003 will be set based on that baseline;

• Facilitate Reemployment: Define a measure of entered employment of Unemployment Insurance claimants and establish a baseline; and

• Establish Tax Accounts Promptly: 80% of new employers will receive a determination about their Unemployment Insurance tax liability within 90 days of the end of the first quarter they become liable for the tax.

FY 2001:

• Eligibility Determinations Fairness: Increase to 26 the number of States meeting or exceeding the minimum performance criterion for benefit adjudication quality; and

• Payment Timeliness: Increase to 48 the number of States meeting or exceeding the Secretary's Standard (minimum performance criterion) for intrastate payment timeliness. FY 2000:

FY 2000:

• Eligibility Determinations Fairness: Increase to 24 the number of States meeting or exceeding the minimum performance criterion for benefit adjudication quality

• Payment Timeliness: Increase to 47 States the number of States meeting or exceeding the Secretary's Standard (minimum performance criterion) for intrastate payment timeliness.

Eligibility Determinations Quality: ETA 9056

Payment Timeliness: 9050 Report

Payment Accuracy: Benefit Accuracy Measurement program or ETA 227 report

Entered Employment: UI wage records

New Status Determinations Timeliness: ETA 581 report

Payment Timeliness: 89.9% of all intrastate first payments were made within 14/21 days

Payment Accuracy: 57.9% of estimated recoverable overpayments most readily detectable by State Benefit Payment Control operations were established for recovery

Entered Employment: N/A

Establish Tax Accounts Promptly: 79.1% of new employers received a determination about their UI tax liability within 90 days of the end of the first quarter they became liable for the tax

Continued development and evaluation performance goals and indicators may affect the targets and measures for FY 2005 to better reflect the level of customer service, program integrity, and the extent Unemployment Insurance claimants become reemployed.

Enhance Pension and Health Benefits Security

FY 2003: This goal was achieved. 69 percent of closed civil cases resulted in corrected violations. 40 percent of criminal cases resulted in referral for prosecution. EBSA's Customer Satisfaction Index score was 59.

Enforcement:

• Achieve greater than a 50% ratio of closed civil cases with corrected violations to civil closed cases.

• Achieve greater than a 25% ratio of criminal cases referred for prosecution to total criminal cases.

Participant Assistance:

• Achieve a Customer Satisfaction Index of 59, or comparable measurement, for Participants and Beneficiaries who have contacted EBSA for assistance.

• EBSA's Enforcement Management System

• The Gallup Organization

• 46.04% (FY 1999-FY 2001 Average)

• 23.45% (FY 1999-FY 2001 Average)

• 53 (FY 2001) [0-100 scale]

Developing a quantifiable, pure outcome goal to measure EBSA's success is extremely challenging. Externalities, such as the economy and tax policy, have a significant impact on whether employers opt to offer benefits and whether employees choose to participate and to what extent. In addition, EBSA oversees benefit security for approximately 6 million plans, 150 million participants and beneficiaries, and approximately $4.8 trillion in assets. Therefore, EBSA strives to ensure that stakeholders (plan professionals and participants) are empowered with knowledge to comply with the law and to make informed personal choices. In the absence of having a pure, outcome measure, describing success in enhancing the security of retirement benefits in this complex environment involves selecting key measures that provide an indication of or reasonable connection to our success. It is within this context that the Department will continue to utilize the performance indices we developed and implemented for the first time in FY 2003 to better communicate its performance. With respect to the customer satisfaction target, EBSA will work with Gallup to refine its long-term target consistent with other industry standards and experience. In developing these measurements, EBSA intends to: (1) maintain maximum flexibility for the Secretary to make policy judgments regarding enforcement, compliance assistance, outreach and education; (2) reflect effectiveness in achieving these policy choices; (3) avoid creating unintended incentives (i.e. selecting monetary measures that might lead the Department to select investigations based on potential recovery alone and thus ignore small plans or health plan violations); and (4) measure a multitude of diverse activities (e.g. education/outreach, technical assistance, enforcement). By measuring these indices, coupled with additional statistical and internal management information, the effectiveness of our program can be determined and more importantly, we can develop strategies to more effectively enhance benefit and retirement security.

Minimize the human, social, and financial impact of work-related injuries for workers and their families.

FY 1999-2002: Same as above.

FY 2003: The goal was substantially achieved. Of the ten performance indicators included under this goal, targets were reached for eight.

1. The goal of 129.7 lost production days for Postal Service cases was not achieved. LPD for USPS rose by nine percent to 143.3 days.

2. This goal was not achieved. LPD for All Other Government Agencies rose in FY 2003 by 2.6 percent over FY 2002 to 55.2 days.

3. This goal was achieved. Placements increased by 14% — 56 USPS employees were placed with new employers.

4. This goal was achieved. Periodic Roll Management (PRM) produced an additional $24.6 million in first-year compensation benefit savings in FY 2003

5. This goal was achieved. In the last 12 months, FECA average medical treatment case costs remained stable with last year at approximately $2,500 per case, while the Milliman Health Cost Index rose by 10 percent.

6. This goal was achieved. DOL established baselines using FY 2003 results for five communications performance indicators.

7. As of the end of August FY 2003, this goal had been achieved. The average number of days to resolve disputed issues for FY 2003 was 266 days, thirteen days below the goal of 279 days.

8. This goal has been achieved. 86.6 % of clams subject to the new regulations on which district director decisions were based had no pending requests for further action one year after receipt of the claim.

9. This goal was achieved. 79 percent of Initial Claims for benefits in the Energy Program were processed within standard timeframes.

10. This goal was achieved. The overall performance result was 76.9 percent within standard timeframes for Final Decisions.

FY 2002: The goal was not achieved. Of the seven performance indicators included under this goal the targets were reached for two, substantially reached for one, and not reached for four.

1. This target was not reached. While LPD for injury cases of the United States Postal Service rose by 11.6% to 131 days, LPD for the All Other Government Agencies was reduced by 4.6% to 53.8 days.

2. This target was not reached. Resolving disputed issues required an average of 285 days.

3. This target was reached. 89.9 % of claims subject to the new regulations on which district director decisions were based had no pending requests for further action one year after receipt of the claim.

• The extraordinary results achieved were due mostly to cohorts of re-filed and marginal cases that were subsequently withdrawn during the initial processing period under the revised regulations.

• These cohorts should decrease or disappear during FY 2003 and beyond.

• The program expects the reduction or elimination of these cohorts to bring performance more into line with projected targets.

4. This target was not reached. Results from year-end totals showed that 48% of claims of Department of Energy (DOE) employees, or of contractors employed at DOE Facilities, were processed within 120 days, and that 48% of claims of employees of Atomic Weapons Employers and Beryllium Vendors were processed within 180 days.

5. This target was substantially achieved. Results from year-end totals showed that 76% of final decisions in approved claims or no-contest denials were issued with in 75 days from issuance of the recommended decision, 74% of final decisions in reviews of the written record were issued within 75 days of the request for review of written record, and 100% of final decisions in formal hearings were issued within 250 days of the request for hearing.

6. This target was reached. Periodic Roll Management (PRM) produced an additional $25.6 million in first-year compensation benefit savings in FY 2002, bringing cumulative total first-year savings to $122 million.

7. This target was not reached. Average overall FECA medical cost per case in FY 2002 was $2,604. After adjusting for inflation using the Consumer Price Index for Medical Care, this represents a 6.8% increase compared to the average of $2,230 in FY 2000.

FY 2001: The goal was not achieved.

1. This target was reached. The FY 2000 baseline is 68.1, and the FY 2001 target was 66.7. The overall government-wide LPD was 76.9, a 15.3% increase.

2. N/A

3. N/A

4. N/A

5. N/A

6. This target was reached. PRM produced an additional $31 million in first-year savings in FY 2001, bringing cumulative total first-year savings to $103 million.

7. The target was not reached. Average cost per case for Psychiatric services was reduced by nearly three percent over FY 2000; for Physical Therapy services, however, average cost increased by 4.5% (adjusted for inflation).

• For Psychiatric cases, the decline in average case costs was due, in part, to application of stricter guidelines over approval of services in the FECA district offices;

• Despite an increase in average costs for Physical Therapy cases, Focus Reviews conducted in late FY 2001 demonstrated the potential for savings in this service category: 121 of 842 high-cost cases were identified for adjustment of service limits.

FY 2000: The goal was achieved.

1. This target was reached. Average lost production days (LPD) measured for Quality Case Management cases in FY 2000 was 164 days. This represented a shortening of the average time away from work of 25 days when compared to the FY 1997 baseline year. The reduction also equated to a $17.7 million savings in compensation costs.

2. This target was substantially reached. System programming was completed and data collected started. However, goal refinement at mid-year required extending the data collection period to a full year to ensure an inclusive baseline. The target for establishing a baseline was extended to May 2001.

3. This target was substantially reached.

4. - 5. N/A.

6. This target was reached. Cumulative first-year savings for FY 1999-2000 were $72 million. PRM productivity remained higher than expected. One-half of all reviews in FY 2000 resulted in either an adjustment to continuing benefit amounts or a termination of benefits.

7. This target was reached. The FECA program saved $34.5 million (61% over target) using fee schedules for Inpatient and Pharmacy services. The result was due, in large part, to a 37% increase in charges for these services. This was consistent with the 32% overall increase in charges subject to fee schedules (including Outpatient Hospital and Physician charges) in FY 2000.

FY 1999: The goal was achieved.

1. This target was reached. Average lost production days 173 days against a target of 178 days. This was nearly a nine percent reduction compared to the FY 1997 baseline. The 16-day reduction compared to the FY 1997 baseline represented a savings in compensation benefits of $9.6 million for the cases measured.

2. By September 30, a definition of "case resolution" was developed and distributed to program district directors and OWCP regional directors.

3. The program implemented part of its revised initial findings package in July 1999. The remainder of the findings package was awaiting finalization of the new regulations.

4. - 5. N/A

6. This target was reached. PRM case review actions produced an additional $20.8 million in FECA compensation benefit savings.

7. This target was reached. The new fee exceeded the target by 54%, and produced $16.5 million in savings. Implementation of medical bill review was delayed and the full complement of Medical Coding Specialists was not brought on board and trained until September 1999. No savings resulted from bill review.

FY 2003:

1. For FECA cases of the United States Postal Service, reduce the lost production days rate (LPD per 100 employees) by one percent from the FY 2002 baseline.

2. For FECA cases of All Other Governmental Agencies, reduce the lost production days rate (LPD per 100 employees) by three percent from the FY 2001 baseline.

3. Increase FECA Vocational Rehabilitation placements with new employers for injured USPS employees by five percent over FY 2002.

4. Through use of Periodic Roll Management, produce $20 million in first-year savings in the FECA program.

5. The trend in the indexed cost per case of FECA cases receiving medical treatment will remain below the comparable measure for nationwide health care costs.

6. Establish or complete baselines in key FECA customer service areas.

7. Reduce by two percent over the FY 2002 baseline the average time required to resolve disputed issues in Longshore and Harbor Worker's Compensation Program contested cases.

8. Increase by four percent over the FY 2001 established baseline the percentage of Black Lung benefit claims filed under the revised regulations for which, following an eligibility decision by the district director, there are no requests for further action from any party pending one year after receipt of the claim.

9. 75 percent of Initial Claims for benefits in the Energy Program are processed within standard timeframes.

10. 75 percent of Final Decisions in the Energy Program are processed within standard timeframes

FY 2002:

1. Decrease by two percent from the FY 2001 baseline the average number of production days lost due to disability in the FECA program for

• United States Postal Service (USPS) cases
• All other Government cases.

2. Reduce by two percent over the baseline the average time required to resolve disputed issues in Longshore and Harbor Worker's Compensation Program contested cases.

3. Increase by two percent over the FY 2001 established baseline the percentage of Black Lung benefit claims for which, following an eligibility decision by the district director, there are no requests for further action from any party pending one year after receipt of the claim.

4. For Initial Processing of claims for benefits in the Energy Program:

• 75% of claims of Department of Energy (DOE) employees, or of contractors employed at DOE facilities, are processed within 120 days.
• 75% of claims of employees of Atomic Weapons Employers (AME) and Beryllium Vendors are processed within 180 days.

5. For processing of Requests for Hearings in the Energy Program:

• 75% of Final Decisions in Approved Claims or No-Contest Denials are issued within 75 days from issuance of the Recommended Decision.
• 75% of Final Decisions in Reviews of the Written Record are issued within 75 days of the Request for Review of Written Record.
• 75% of Final Decisions in Formal Hearings are issued within 250 days of the Request for Hearing.

6. Through use of Periodic Roll Management, produce $122 million in cumulative first-year savings (FY 1999 -2002) in the FECA program.

7. Reduce the overall average medical service costs per case (adjusted for inflation) in the FECA program by .5% versus the FY 2000 baseline.

FY 2001:

1. Two percent reduction from the FY 2000 baseline in the average number of production days lost due to disability.

2. Establish performance baseline and begin data collection for performance tracking.

3. Establish a baseline by the end of FY 2001.

4. - 5. N/A.

6. Produce $95 million in cumulative first-year savings.

7. Reduction in the average annual cost for physical therapy and psychiatric services by one percent through focus reviews of services charged. (Note: This intermediate goal will assist the agency in developing strategies to reach the overall cost reduction goal. Reduction of overall average medical costs will be measured against a FY 2000 baseline.)

FY 2000:

1. Reduce to 173 days (QCM cases only); establish baseline for all cases.

2. Complete system programming for entering and generating goal-related data and establish a baseline against which to measure performance.

3. Finalize and implement new regulations. Develop materials to provide all parties with information about the revised claims development and adjudication process.

4. - 5. N/A

6. Produce $66 million in cumulative first-year savings.

7. Save an additional $5 million over FY 1999 compared to amounts charged through full-year implementation of fee schedules for inpatient hospital and pharmacy services.

FY 1999:

1. Reduce to 178 days (QCM cases only).

2. Complete the process of defining a case resolution.

3. Implement initial findings package designed to more effectively provide all parties with information about decisions made on individual claims.

4. -5. N/A

6. $19 million in first-year savings.

7. Save 19% versus amounts billed for FECA medical service subject to fee schedules.

1. Federal Employees' Compensation Act (FECA) data systems; Federal agency payroll offices; Office of Personnel Management employment statistics.

2. Federal Employees' Compensation Act (FECA) data systems; Federal agency payroll offices; Office of Personnel Management employment statistics.

3. Nurse/Rehabilitation Tracking System.

4. Periodic Roll Management System; FECA Automated Compensation Payment System.

5. FECA Medical Bill Pay System; Milliman USA, Health Cost Index Report.

6. Telecommunications system standard reports; FECA district office and national MIS reports; customer surveys; focus group records; and other customer service performance data sources.

7. Longshore Case Management System.

8. Black Lung Automated Support Package.

9. Energy Program Case Management System.

10. Energy Program Case Management System.

1. The number of days lost due to workplace injuries in FY 2002 per 100 employed Federal civilian workers by the USPS.

2. The number of days lost due to workplace injuries in FY 2001 per 100 employed Federal civilian workers by All Other Government agencies.

3. The number of vocational rehabilitation placements with new employer in FY 2002.

4. The sum of periodic (28-day cycle) payments, on a case-by-case basis, made prior to reduction in benefits due to terminations or adjustments by PRM action in the fiscal year.

5. U.S. health care costs as measured by the Milliman Health Cost Index.

6. TBD, baselines for key service areas being established in FY 2003.

7. An average of 285 days elapsed nationwide between the dispute receipt date and the dispute resolution date.*

8. FY 2001: 66.5% of Black Lung benefit claims, following an eligibility decision by the district director, had no requests for further action from any party pending one year after receipt of the claim: developed using data collected over the past decade from claims subject to the old regulations.

9. 75 percent of Initial Claims processed are timely.

10. 75 percent of Final Decisions are timely.

1, 2. LPD is one of several goals within the joint, OSHA/ESA safety & health and return to work (SHARE) initiative to increase Federal workplace safety rates and speed recovery and return to work. In light of widespread public health incidents subsequent to the anthrax events involving postal workers, and because USPS is excluded from OSHA's Federal safety initiative since it is regulated as a private sector entity, we have created two LPD goals to measure LPD for USPS cases and for all other Federal agencies separately. Post September 11, 2001, impacts on the USPS, including overall reductions in mail volume, resulted in higher LPD during FY 2001 and 2002, and that trend is expected to be difficult to reverse. Accordingly, we believe FY 2002 is a more appropriate baseline against which to measure future performance for USPS.

4. Periodic Roll Management has proven highly successful in identifying potential for return to work and resolving cases leading to greater savings in benefit compensation (an additional $317 million between 1992 and 1998). In FY 1999, Congress appropriated resources to fully staff all offices and integrate PRM into FECA program operations. This is accelerating savings in Federal workers' compensation costs, and increasing the potential for returning workers to employment after recovery from an injury. Note: decisions on cases under PRM review often result in adjustment or termination of benefits. On a case-by-case basis, and beginning with the first payment cycle after the benefit action, savings are scored for the remainder of the measurement (fiscal) year, producing the first-year savings for the case. First-year savings for all cases in the measurement year are then combined producing the total first-year savings. The cumulative sum of first-year savings is matched against the goal as stated for each measurement year.

4. 5. The objective of the FECA Medical Savings goal is to maintain control over costs at a level comparable to nationwide health care cost trends as measured by the Milliman Health Cost Index. This index measures the change in non-Medicare health care costs per capita for the overall national population. In the early 1990's FECA medical cost increases were typically lower than the Milliman Health Cost Index, but in 1998 and throughout 2000 the FECA rolling 12 month average exceeded the Milliman Index's rate of increase. The implementation of various cost containment strategies has had significant impact in moving FECA's cost curve well below the average Milliman Index since early 2001, and this new, long-term goal of maintaining that positive relationship to the Milliman Index over time is appropriate given the progress to date.

FECA continues to use fee schedules to set payment levels for standard categories of billed medical services. A special automated bill review, the Corrective Coding Initiative (CCI) identifies medical providers' duplicate and abusive billing practices, and facilitates evaluation and resolution of questionable bills before payment is authorized. FECA has begun a medical services contract that centralizes and standardizes the processing of FECA medical bills. Focus reviews identify proper treatment or payments for selected medical services provided and matched to medical condition. Utilization review will focus on the appropriateness and duration of medical treatment.

6. Customer service improvements are focused on communications performance in five key areas: availability and access to electronic information services; telephone responsiveness; call handling accuracy and assistance effectiveness; and call handling quality.

7. Reducing the average time required to resolve disputed issues reflects increased cooperation among the parties and increased voluntary compliance with Longshore statutes and procedures. This performance target will capture the results of program efforts to reduce utilization of the extended hearings and appeals processes by raising the quality of medical evidence and clarity of decisions in the initial stages of the decision making process under the revised regulations.

8. The results achieved were again influenced by factors whose impact will be greatly diminished or no longer felt in FY 2004.

• Most significantly, cohorts of re-filed and marginal cases that were subsequently withdrawn during the initial processing period under the revised regulations should decrease or disappear during FY 2004 and beyond.

• The program expects the reduction or elimination of these cohorts to bring performance into line with projected targets.

• Results have trended downward since mid-year toward the performance target as expected.

• Mid-year performance indicated that 88.7% of claims subject to the new regulations on which district director decisions were based had no pending requests for further action one year after receipt of the claim. By year's end, the result was reduced by over two full percentage points.

• The program will continue to carefully monitor quarterly results. If performance continues to greatly exceed target levels, the targets will be reviewed and adjusted where appropriate.

9. OWCP refers non-Special Exposure Cohort (SEC) cancer claims to the National Institute for Occupational Safety and Health (NIOSH) to document radiation exposure histories and dosage levels. Upon completion of the dose reconstruction, OWCP continues adjudication of the claim. "Completion of initial processing" indicates a point common to all claim categories at which the Energy program has made a determination of covered employment and covered illness. For claims other than non-SEC cancers, this determination results in a decision to award or deny claims. Beyond completion of initial processing, additional decision points reside with the claimant or NIOSH prerequisite to issuance