VA Dropping Mandatory Overtime for Most Claims Processors as Work Proceeds at Faster Clip

By Ella

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VA Dropping Mandatory Overtime for Most Claims Processors as Work Proceeds at Faster Clip

The Department of Veterans Affairs (VA) has ended a seven-year-old policy that required claims processors to work mandatory overtime, thanks to increased hiring and improved efficiency, according to the VA’s top benefits executive. Under Secretary for Benefits Joshua Jacobs announced that most staff will no longer need to work up to four extra hours weekly, although they can still volunteer for up to 20 hours of overtime each week.

Key Changes in VA Overtime Policy

The new policy, effective immediately, does not affect claims processors handling:

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  • Radiation exposure claims
  • Sexual assault claims
  • Contaminated water claims at Camp Lejeune, North Carolina
  • Pension claims
  • Any claims not related to disability ratings

Background on Mandatory Overtime

Since 2017, VA claims processors have been required to work mandatory overtime to manage the influx of claims. This practice aimed to prevent burnout and improve employees’ work-life balance. However, the sheer volume of claims filed each year made it difficult to end this policy until now.

Improvements Leading to Policy Change

Jacobs highlighted that the Veterans Benefits Administration (VBA) workforce of 34,000 has “gone above and beyond to deliver these earned benefits,” enabling the administration to change the policy. In fiscal 2023, the VA processed and completed nearly 2 million claims, a 16% increase from the previous year.

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Increased Staffing and Efficiency

  • The VA has increased its staffing by 33% over the past two years.
  • It has provided enhanced training, including refresher courses for longtime employees.
  • The administration held a department-wide stand-down on June 6 to improve the employee work experience.

Impact of the PACT Act

The VA has received a record number of claims due to the passage of the PACT Act, which expanded healthcare and benefits for veterans exposed to environmental pollutants. Since the act was signed in 2022, the VA has received 1.65 million PACT Act-related claims. As of July 6, there were over 970,000 pending claims and 274,000 claims older than four months.

Enhanced Claim Processing

  • The VA has processed claims at a faster rate than before.
  • Before 2022, the department had only three days where it processed more than 8,000 claims per day.
  • In the past two years, VA claims processors adjudicated 8,000 claims on 182 days.

Moving Forward

Jacobs could not specify how many claims processors will still be subject to mandatory overtime due to the number of exceptions. He noted that the exceptions are necessary for certain types of claims that require more timely decisions. The VA will continue to assess its workload and make adjustments as needed.

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Employee Feedback and Policy Drivers

The new policy is driven by employee feedback and a desire to end an onerous requirement, not by budget limitations imposed by the Fiscal Responsibility Act, a 2023 law capping agency budgets.

Summary of Key Information

The VA’s decision to end mandatory overtime for most claims processors marks a significant shift aimed at improving employee work-life balance and efficiency. With increased staffing and training, the VA is better equipped to handle the high volume of claims while ensuring timely decisions for critical cases. This change reflects the administration’s commitment to supporting both veterans and its employees.

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FAQs:

When will the new overtime policy take effect?

Who is still required to work mandatory overtime?

Claims processors handling radiation exposure, sexual assault, contaminated water at Camp Lejeune, pension claims, and non-disability claims are still required to work mandatory overtime.

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How many claims did the VA process in fiscal 2023?

The VA processed nearly 2 million claims in fiscal 2023.

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Ella

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ella's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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