A bill to amend chapter 81 of subpart G of title 5, United States Code, relating to compensation for work injuries, and for purposes.

Provides additional areas of compensation for work injuries to Government employees.

Includes podiatrists' services and supplies among eligible benefits.

Redefines "widower" and defines the terms "organ" and "United States medical officers and hospitals.

Gives the Federal employee an option with regard to medical services and initial medical and other benefits.

Provides that individuals directed to undergo vocational rehabilitation by the Secretary of Labor shall, while undergoing such rehabilitation, receive basic compensation and augmented compensation for dependents, less the amount of any earnings received from remunerative employment, other than employment undertaken pursuant to such rehabilitation.

Includes the "loss of use" of a member or function of the body as a permanent disability entitling the employee to basic compensation for the disability.

Adds to the compensation schedule for permanent loss or loss of use of any important external or internal organ of the body as determined by the Secretary, proper and equitable compensation not to exceed 312 weeks compensation for each organ so determined shall be paid in addition to any other compensation payable under this schedule.

Includes a "husband" as a dependent if: (1) he is a member of the same household as the employee; (2) he is receiving regular contributions from the employee for his support; or (3) the employee has been ordered by a court to contribute to his support.

Increases the following amounts of additional compensation the Secretary may pay an employee: from $300 to $500 a month for the service of an attendant and from $100 to $200 for vocational rehabilitation.

Eliminates the Secretary's option to reduce monthly compensation after an employee attains 70 years of age.

Excludes veterans' benefits and military retirement pay from limitations on the right to receive compensation.

States that an employee is not entitled to compensation for the first 3 days of temporary disability except when the disability exceeds 14 days.

Provides for the continuation of an employee's pay and the election to use annual or sick leave.

States that notice of a death believed to be related to the employment shall be given by an eligible beneficiary or someone on his behalf. Requires a notice of injury or death to be given within 30 days after the injury or death.

Extends from 1 year to 3 years the time within which an original claim for compensation for disability or death must be filed.

Provides that no court, insurer, attorney, or other person shall pay or distribute to the beneficiary or his designee the proceeds of a suit or settlement without first satisfying or assuring satisfaction of the interest of the United States.

Makes adjustments in the rates of compensation payable to the beneficiaries of a deceased employee.

Declares that, notwithstanding any funeral and burial expenses paid, there shall be paid a sum of $200 to the personal representative of a deceased employee for reimbursement of the costs of termination of the decedent's status as an employee of the United States.

Permits a lump-sum payment to a beneficiary if the monthly payment is less that $50 a month.

Adjusts the computation of cost-of-living increases of compensation.

States that in the event the individual resumes employment with the Federal Government, the entire time during which the employee was receiving compensation under this chapter shall be credited to the employee for the purposes of within grade step increases, annuity computation under the civil service retirement provisions, retention purposes, and other rights and benefits based upon length of service.

Requires the United States Postal Service to pay, in addition to contributions required for the maintenance of the Employees' Compensation Fund, an additional amount for its fair share of the cost of administration as determined by the Secretary.

Requires the Secretary to conduct a study of the provisions of this Act and report the results to the Congress not later than 12 months after the date of the enactment of this Act.