Federal Employee Medical Disability Retirement

Date:

Joyce: Its My Understanding That Federal Employees Dont Have Short

What is Federal Disability Retirement?

Greg: Correct. While the government will protect employees who have at least 18 months of employment from long-term disabling events through FERS Disability Retirement, there are no government-sponsored safeguards against short term disability, with the exception of sick leave, annual leave, and the leave bank.

Can I Work Or Start My Own Small Business If I Receive Opm Disability Retirement

Yes. This is a case in which Federal Disability Retirement benefits differs with Federal Workers Comp. However, your new job must be outside the Federal Government sector. Also, keep in mind that if your earned income is more than 80% of what your former Federal position currently pays, you can lose your OPM Disability Retirement benefits for the year following the year you exceeded the 80% limit. If this happens, chances are that you will no longer qualify for regular retirement when you turn 62 years old. Thus, be careful with your future earned income. Most forms of âpassiveâ income, however, do not count towards the 80% threshold.

If Your Benefits Are Terminated

The OPM can decide that you are “restored to earning capacity” or “medically recovered” and stop paying you your federal disability retirement. This sometime happens when the civil service annuity was granted for a mental health condition in which there is a possibility of recovery or medical improvement. If OPM has terminated your disability retirement because your condition improved, you can get it reinstated if your condition gets worse again–if you are under age 62. The standards for seeking reinstatement are somewhat different depending on whether your annuity was terminated because you recovered or because you were restored to earning capacity. If you are going to seek reinstatement of previously terminated federal disability retirement benefits, you apply with the OPM.

You could be eligible for up to $3,148 per month in SSDI benefits

Read Also: How To Retire Early At 50

Next: File A Timely Appeal

If OPM denies your application for federal disability retirement, you must appeal in a timely manner. You must first request reconsideration. If OPM denies your timely request for reconsideration, you have the right to appeal OPM’s decision to the Merit Systems Protection Board .

The FERS application process can be daunting and overwhelming for an individual applying for federal disability retirement. In addition to the elements listed above, decades of case law have refined and defined some of the above elements, and you may have to provide more or less information, depending on your unique situation. Contact a disability lawyer if you have doubts that you’ll be approved for a disability retirement annuity or if you have been denied.

Medical Retirement: Calculating Fers Disability Benefits

These are 10 things to keep in mind when applying for FERS disability ...

What feds need to know regarding rules, eligibility, and the application process for the FERS disability retirement.

First off, if you are a federal employee who is able to take an immediate FERS pension, then that is probably the route to take, even if you become disabled. If you think there is a possibility that you might try to return after you leave federal service, then a disability retirement might be an option for you. In this article, well explore how age, length of service, and Social Security impacts a FERS disability retirement calculation.

You May Like: How Much Is Social Security Taxed In Retirement

Periodic Medical Exams To Keep Your Disability Benefit

When we approve your application for disability retirement, we may determine that based on your medical condition you will periodically have to provide us with current medical information in order to continue receiving benefits. You are responsible for paying for any medical exams that are needed. If you do not fulfill the request for evidence of continuing disability, it is likely that your benefit payments could be suspended until your continuing eligibility is established.

Joyce: Earlier You Mentioned A Program Called Fers Disability Retirement Can You Tell Us More About That What Does It Cover Who Is Eligible And How Much Does It Provide

Greg: The FERS Disability Retirement Program covers all FERS employees who have been employed for at least 18 months. For eligible FERS employees, if a disability is expected to last at least one year AND this disability inhibits an employee from fulfilling the responsibilities of their job, they are eligible for a benefit of 60% of pre-disability income for the first year and 40% every year thereafter while disabled. For those under the CSRS program who are not eligible for retirement, you would be covered under the CSRS disability retirement providing a 40% benefit.

You do want to keep in mind that applicants must also file for social security disability AND this benefit is taxable.

Recommended Reading: Teachers Retirement System Of Georgia Phone Number

Q: Can I Start The Process Even If I Dont Have A Doctors Letter Yet

A: A doctors letter that states your diagnosed medical disability and restrictions is imperative to your Federal Disability Retirement application. Which is why we recommend that you speak with your medical provider prior to starting your application, to ensure they will be able to provide the supporting documentation that is needed for your case.

Our Peace Of Mind Guarantee

What type of medical support do I need for my Federal Disability Retirement claim?

If I accept your case, we expect to win your OPM disability claim. If we dont win your case, we return 100% of our fee. I make that guarantee because I am supremely confident in our ability to secure OPM disability for every one of our clients. Contact me now to discuss your case with an experienced OPM disability retirement lawyer.

Recommended Reading: Ridgecrest Retirement And Health Care

Federal Employees Retirement System

In 1987, Congress replaced the Civil Service Retirement System with the current program, the Federal Employees Retirement System . While some current federal employees who began work before 1987 may still fall under CSRS coverage, most federal workers are now covered by FERS. To be eligible for FERS, the employee must have been working in the federal setting for at least 18 months.

How Do I Find Out If I Am Eligible For Medicare Coverage

You should contact the Social Security Administration at least 3 months before your 65th birthday to apply for benefits. The Social Security Administration will have records pertaining to your eligibility for Medicare coverage. If they don’t, and you or your employer need to get a statement of your earnings to apply for coverage, then you should write to:

General Services Administration National Personnel Records Center Civilian Personnel Records 111 Winnebago Street St. Louis, Missouri 63118

You should provide the following information in your request:

  • Your name, as shown on your payroll records
  • Years for which earnings are needed
  • Name and location of employer for each year
  • Reason for the request
  • A statement that all other sources of information have been exhausted
  • Your written signature

Also Check: Deferred Retirement Option Plan Calculator

What Will Happen When I Turn 62 Years Old

Your âmedicalâ retirement will be recalculated to become a âregularâ retirement, and your annuity will be adjusted. The good news is that all of the years you were under âdisabilityâ retirement will count towards your future regular retirement . For instance, if you worked for 10 years in the Postal Service, and you spend 20 years in Postal Disability Retirement, you will be credited for a total of 30 years for purposes of calculating your future âregularâ OPM retirement.

Question Of The Week: How Much Will I Get Paid On Federal Disability Retirement And For How Long

Issues to Consider for Federal Disability Retirement

A: First lets look at how much will you receive if you are approved for federal disability retirement from OPM.

Disability retirement benefits are computed differently depending on your age and amount of service at the time of retirement. Plus, your annuity will be recomputed after the first 12 months and then again at age 62.

Generally, if you can retire under a disability retirement, you will be under the age of 62 and not eligible for an immediate voluntary retirement. The computation is as follows:

  • For the first 12 months, you will receive 60% of your high-3 salary MINUS 100% of your Social Security benefit for any month you are eligible to receive that.
  • After the first 12 months, you will receive 40% of your high-3 salary MINUS 60% of your Social Security benefit for any month you are eligible to receive that.
  • When you reach age 62, your benefit is recomputed using the amount that basically represents the annuity you wouldve received if you had not retired on disability. Meaning that your years receiving a disability retirement count as years of creditable service toward your FERS retirement at age 62.
  • In this case, if your actual service equals less than 20 years, youll receive 1% of your high-3 salary for each year of service.
  • If your actual service equals more than 20 years, youll receive 1.1% of your high-3 salary for each year of service.

Now, well look at how long you can receive a federal disability retirement annuity.

Your annuity will only stop if:

You May Like: How Do You Find Old Retirement Accounts

Can I Get Federal Workers Comp And Opm Disability Retirement At The Same Time

No. Keep in mind that OWCP DOL job-related disability payments are supposed to be temporary benefits only. Thus, what we recommend doing in most cases is to apply for OPM Disability Retirement benefits until OWCP cancels your benefits for good or until you can no longer take all the harassment from the OWCP specialists and nurses in exchange for more money .

If you donât file for OPM Disability Retirement and your agency officially separates you from Federal Service, you only have one year from the date of separation to file for Federal Disability Retirement benefits. If you fail to file within that timeframe, you will lose your right to file for Federal Disability Retirement benefits forever. This is yet another reason why you should take your OPM Disability Retirement preparation seriously. In this case, if you do qualify for OPM Disability Retirement and later OWCP decides to terminate their benefits, you can then activate your OPM Disability Retirement benefits.

Under The Fers Benefits System Disability Retirement Annuitants Will Receive The Benefit Until They Reach Age 62 At Which Point They Will Involuntarily Transfer To The Normal Pension Benefit

Depending on the claimants age with the Office of Personnel Management approves the claim, an annuitant can usually count on OPM conducting at least one review of the claim. This review typically consists of OPM sending the claimant a short form to complete regarding any return-to-work activities and a request that recent medical records be submitted to OPM for review.

Also Check: How Much Is Tricare Prime For Retirees

What Were Seeing In 2022

In 2022, we have seen the OPM make more decisions based on the medical evidence of the disability claim, with less emphasis on the legal arguments. This makes it more important than ever to have in-depth documentation of all of your diagnoses and treatments from the beginning. This focus on medical evidence has also caused an increase in denials of initial applications and an increase in reconsideration appeals where strong legal arguments are imperative.

Can I Change My Health Insurance Coverage

All About FERS Disability Retirement

Yes. After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season. You cannot change to another plan simply because you retired. Each year, Open Season runs from the Monday of the second full workweek in November through the Monday of the second full workweek in December. The 2021 Federal Employees Health Benefits Open Season will run from November 8 through December 13, 2021.

Recommended Reading: What To Do When You Retire

What Is The Difference Between Federal Disability Retirement And Opm Disability Retirement

Although some people may confuse âFederalâ Disability Retirement to mean âSocial Securityâ Disability Retirement because this latter benefit is a type of retirement program administered by a U.S. Federal agency, that is, the Social Security Administration nevertheless, most of the time âFederalâ Disability Retirement actually refers to âOPMâ Disability Retirement. OPM is the acronym which stands for the U.S. Office of Personnel Management, and many Federal lawyers and employees choose to use this term to differentiate it from SSAâs disability program the Social Security Disability Retirement, which is also known as Social Security Disability Income .

Thus, Federal Disability Retirement and OPM Disability Retirement are basically the same disability program. OPM Disability Retirement is a disability retirement plan available to Civilian Federal employees. It allows a Federal employee to retire earlier than âregularâ retirement if an injury or medical condition prevents the Federal employee from performing the main work tasks of the Federal position he or she was hired for. These physical or psychiatric medical conditions should be expected to last one year or longer.

Benefits To The Surviving Spouse

FERS survivor benefits are payable under workers compensation only if the employees death is caused by the injuries for which compensation is being or could be paid. A surviving spouse who is not eligible for death compensation benefits from the OWCP may be eligible to receive FERS survivor annuity benefits. This is assuming the surviving beneficiary is eligible for such benefits and that the deceased employee had applied for and had been awarded retirement benefits even if the annuity was suspended for receipt of workers compensation.

However, the law prohibits concurrent receipt of death compensation benefits from the OWCP and FERS survivor benefits. The survivor must elect which of the two benefits to receive. The exception to this law is that an eligible survivor annuitant may receive a scheduled award or a third-party settlement and a FERS survivor annuity covering the same period of time. If the former employee was receiving workers compensation at the time of death but had not made a timely application for disability retirement, no FERS survivor annuity can be paid.

Recommended Reading: Tax Deferred Annuity Retirement Plan

Fers Disability Retirement Requirements

To be eligible for the FERS disability program, federal employees must have worked in a covered position for at least 18 months.

In addition, an employee must have become disabled while employed and the disability must be expected to last for at least one year. Importantly, however, a work-related injury or illness need not have caused the disability.

Federal employees can apply for disability retirement benefits at any age.

How To Start Federal Disability Retirement

Americans with Disabilities Act

Its common for workers of all trades to be frightened at the prospect of disability. After all, federal disability payments are usually much lower than your ordinary income, and if you cant work, what are you supposed to do?

Luckily, the Federal Employee Retirement System has provisions to protect federal workers from this sort of risk. Its known as the federal disability retirement benefit.

This benefit allows federal workers who meet the requirements the ability to retire early and offers several different options for receiving their pensions. If you think this program may be what you need, continue reading to learn exactly how these benefits work and how you can apply for them.

Recommended Reading: Topretirements Com Best Places Retire

Q: What Happens If You Resign From Federal Service Due To A Medical Condition Before A Reasonable Accommodation Is Decided On

A: If you resign before finishing the reasonable accommodation process then the OPM can argue that the Federal Agency was never given an opportunity to see whether an accommodation or reassignment was possible, or not, and therefore one of the critical elements in proving eligibility for Federal Disability Retirement benefits cannot be met or established.

How Are Fers Disability Retirement Benefits Calculated

Under the regular federal retirement benefit system, the basic annuity formula is based on age at retirement and years of service. If you retire under age 62 or at age 62 or older with less than 20 years of service, benefits are based on 1% of your high-3 average salary for each year of service. If you retire at age 62 or older with more than 20 years of service then benefits are based on 1.1% of your high-3 average salary for each year of service. However, the amount you can receive in federal disability retirement benefits can depend on your age and the years of service you have when you retire.

Here are some examples of how FERS disability benefits can be calculated.

Scenario #1: Youre age 62 or older at retirement and meet age and service requirements for voluntary retirement.

  • If youre 62 or older with less than 20 years of service you receive 1% of your high-3 average salary for each year of service
  • If youre 62 or older with 20 or more years of service you receive 1.1% of your high-3 average salary for each year of service

High-3 refers to the average of your salary for the three consecutive years where you earned the most. Typically, these are the final years of service but it can be any three consecutive years in which you had the highest earnings.

Scenario #2: Youre under age 62 at retirement and not eligible for immediate voluntary retirement

Read Also: Retirement Communities In Gulfport Ms

Intersection With Other Benefits

Federal Disability Retirement benefits under FERS from the Office of Personnel Management is an independent benefit from an independent agency. However, there may be some intersecting features which are important to understand, prior to beginning the process.

A FERS Disability Retirement annuity has an off-set feature with certain other federal annuities, by statutory mandate and direction, but not with certain others. For instance, there is a coordinating offset with Social Security Disability , and an election must be made between OWCP Temporary Total Disability payments and Federal Disability Retirement benefits . On the other hand, there is no offset between a Federal Disability Retirement annuity and VA Disability payments.

In making a as to whether to file for Federal Disability Retirement benefits, each Federal and Postal employee should be fully informed as to the offsets with other Federal benefits and payments, as well as whether there are limits and restrictions as to the amount of other earned income a person may be allowed to make.

Sincerely,

Share post:

Popular

More like this
Related

Sign Up For Ssi Retirement

Do Social...

T Rowe Price 401k Retirement Login

International Equity...

Can I Contribute To An Hsa After Retirement

Capitalize On...