Understanding the FMSWeb Fed US HRM Workers Compensation Index

What the FMSWeb Fed US HRM Workers Compensation Index Measures

The FMSWeb Fed US HRM Workers Compensation Index tracks the average cost trends of workers' compensation claims across federal agencies, providing HR managers with a benchmark for budgeting, risk assessment, and policy evaluation.

Key Data Sources and Coverage

Data are compiled from the Federal Management System (FMSWeb) and the Department of Labor's Office of Workers' Compensation Programs. The index includes all federally covered employees, aggregating claim amounts, injury types, and duration of benefits for each reporting period.

How the Index Is Calculated

Each quarter, total claim expenditures are summed and divided by the number of covered employees, then normalized to a base value of 100 set in the first quarter of 2010. Adjustments are made for inflation using the Consumer Price Index (CPI) to keep the index comparable over time.

Interpreting the Numbers

A reading above 100 indicates that current average claim costs exceed the 2010 baseline, while a figure below 100 shows lower-than-baseline costs. Sudden spikes often correspond to high‑severity injuries or changes in reporting practices, whereas gradual trends reflect broader safety or policy shifts.

Practical Uses for HR Professionals

HR teams use the index to:

• Set realistic workers‑compensation budgets.
• Compare agency performance against the federal average.
• Identify periods requiring enhanced safety training.
• Negotiate insurance premiums with carriers.

Limitations and Considerations

The index aggregates data at the federal level, so it may mask variations between agencies or job categories. It also does not account for state‑specific regulations that can affect claim costs for agencies operating in multiple jurisdictions.

Comparative Overview