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Office of Workers' Compensation Programs

Description of the Lost Production Day Formula

The method of calculating the rate of Lost Production Days (LPD) per 100 employees has changed for the extension of the initiative from FY 2007 through FY 2009. The change in methodology, which allows for more accurate compilation of lost days data, resulted in adjustments to most agencies previously reported 2006 results. The recomputed FY 2006 outcomes reflect this new methodology and will be used as the new baseline for LPDs. The formula continues to utilize continuation-of-pay (COP) data reported to OWCP for a given quarter, which is then added to the number of days for which OWCP paid wage-loss compensation in the same quarter to claimants in their first year of disability.

Agencies will continue to target reducing LPDs by at least 1% per year, but now from the FY2006 baseline. Agencies with FY2006 baseline LPD rate at or below 15 days must maintain an LPD rate of 15 or less.