Federal Worker Disability Retirement: Taking a Trickle of Leave and Back Pay Issues

When a Federal or Postal employee files for, and is approved for, Federal Disability Retirement benefits under FERS or CSRS, the disability retirement annuity which one receives extends back to the “last day of pay” of a Federal or Postal employee.  It matters not what “kind” of pay; the Office of Personnel Management merely receives the date of the Federal or Postal employee’s last day of pay from the Agency, then gives back-pay back to that date which the Agency determines that he or she was last paid.

Thus, if a person was on LWOP for a six-month period while awaiting for a decision from OPM on his or her Federal Disability Retirement application, then decided to use up the last couple of hours of Annual or Sick Leave and receive a nominal amount — in that scenario, the back pay would extend only to the payment received for the Annual or Sick Leave, and the Federal or Postal employee would lose any back-pay for the six-month period of LWOP.

With this in mind, it is important to plan — to either remain on LWOP during the entire period of waiting for a decision from OPM, or if one continues to work or to receive payments for Sick or Annual Leave, to make it worth one’s while (i.e., to continue to receive a payment rate equal to what the rate of pay for back-pay would be, which is 60% of the average of one’s highest three consecutive years of salary the first year, then 40% every year thereafter).  Just some thoughts.

Sincerely,

Robert R. McGill, Esquire

Medical Retirement Benefits for Federal & Postal Employees: Reminder (Continuing…)

So, how does one determine whether or not it is prudent to go out on LWOP completely, while awaiting for the decision on one’s application for Federal Disability Retirement benefits under FERS or CSRS?  Obviously, the initial criteria to be applied is whether or not you can afford to go out on LWOP.  Economic necessity (aside from considerations of one’s health and medical ability/inability to go to work during the long, drawn-out process) becomes a primary consideration.  If economic necessity dictates continuation of work, then the next question is, would your Agency consider allowing you to work 3 – 4 days a week, and allowing for 1 or 2 days to be taken off with LWOP?  This might be a prudent approach, since any back-pay for the first year, once your Federal Disability Retirement application is approved and payments start, will be paid at 60% of the average of one’s highest three consecutive years.  Thus, mathematically, it would make sense:  a minimum of 3 days of work quantifies to 60% or more, and so you would not be losing anything.  However, if your weekly average falls below the 60%, then you might want to consider going out on LWOP completely (again, only if your personal finances will allow for such).

Sincerely,

Robert R. McGill, Esquire

CSRS & FERS Disability Retirement: The Time to Make the Decision (Part 1)

Waiting until the last possible moment to start the process to file for Federal Disability Retirement under FERS or CSRS may be commendable from the Agency’s viewpoint — but is it smart?  If you are a Federal or Postal employee with multiple years of service, and you believe that because you gave your life, your blood, your sweat, tears, and even your firstborn, that therefore you will receive what I often term as “bilateral loyalty” (i.e., an expectation of receipt of loyalty from your agency for having given your undying loyalty to them throughout the years), you might want to reconsider.

If you are exhausting all of your sick leave, using your annual leave, dipping into your TSP in order to “hope” that you will recover from your continuing medical condition, then come to a point where you need to file for Federal Disability Retirement under FERS or CSRS, then come to realize that you must survive for 6 – 8 months, or even longer, and pay an attorney, pay for medical reports, and _______ (here, you may fill in the space yourself), then you may need to re-think the entirety of the process, the time it takes, etc.  Most people know, very early on, whether or not he or she has a medical condition which will last for a minimum of 12 months.  The time to start planning for the future is now.  As a famous football coach once quipped, “The future is now.”

Sincerely,

Robert R. McGill, Esquire

CSRS & FERS Disability Retirement: Pre and Post

Issues revolving around the initial application stage, during the application stage, and after the approval, are often of equal importance.  This is because the approval of a Federal Disability Retirement application under FERS or CSRS will ensure the financial and economic survival and viability of the Federal or Postal employee.  Thus, in the pre-approval stage of the process, it is often good to engage in some future planning:  How hard will I fight for Social Security Disability?  Will I be getting a part-time job to supplement my income?  Where will I live?  During the process of obtaining disability retirement, there is the long wait, and the ability to remain financially afloat while receiving little or no financial support.  Post-approval, there are issues of the potential for receiving a Medical Questionnaire from the Office of Personnel Management.  Whether the current doctor will continue to be supportive, or will I move and need to find another doctor?  Because getting Federal disability retirement benefits is a life-long process, it is important to get sound legal advice from a competent attorney throughout the process — pre, during, and post process.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Summer Waiting

I have written previously about the long and arduous waiting process & period in trying to obtain CSRS & FERS Federal Disability Retirement benefits from the Office of Personnel Management. Remember that, in your calculation in attempting to survive financially, economically, emotionally, medically, physically, mentally — and in all other ways, keep in mind that the summer months from July to August often represent a “dead zone” when many Federal employees take time off for vacation, time for family, and time for relaxation.  While it is understandable that this makes the Federal disability retirement applicant nervous and anxious to be placed “on hold” when such an important decision may be held in abeyance, it is simply a reality which must be taken into account.  Don’t get frustrated; be patient.  The summer months will come and go, and the important point is to keep looking forward to the future.

Sincerely,

Robert R. McGill, Esquire

FERS & CSRS Disability Retirement: Back-Pay

Remember to not spite yourself, especially when it comes to financial considerations. If your medical disability is forcing you to take excessive LWOP, it might be better to go “cold turkey” and stay completely out on LWOP while you file for disability retirement benefits. This is because, once you get your disability retirement application approved, you will be paid “back pay” in a lump-sum form, back to the last day of your pay, at the 60% rate from your last day of pay forward for the first 12 months.

Thus, if you work only 2 days out of the week, and you take LWOP for the other 3 days, you are losing 20% of pay, because were you to go out on LWOP, instead of being paid 40% of your salary (2 out of the 5 days), you would be getting back-pay for essentially 3 out of the 5 days (60%). On the other hand, don’t go out on LWOP, then after 4 or 5 months, go back to work for a week — because in that instance, you will never recover the 4 or 5 months of LWOP, because the “last day of pay” will have been paid to you when you went back to work. While all of this may be a bit confusing, it is essential to your financial health and consideration when entering the complex process of Federal Disability Retirement under FERS or CSRS.

Sincerely,

Robert R. McGill, Esquire