Collins added that of the 2,000 Postal Service employees on workers' comp, nearly half of them were 80 years old or older, and two are 98 years old. Collins said this is an abuse of the system, and that these employees should be forced to take retirement benefits.

"This abuse may extend across the government," she said. "If recipients are gaming this crucial benefit at taxpayers' expense, they must be exposed and the underlying program must be reformed."

Collins also added that FECA allows employees to collect 73 percent of their gross pay on a tax-free basis, while retirees get about 56 percent of the gross pay, and must pay taxes on their retirement benefits. She said this is a "perverse financial incentive" that prompts workers to avoid retirement and take workers' comp benefits.