Postal and Federal Disability Retirement: OWCP & the Short Sale

Americans are often looked upon as short-sighted.  Lacking historical longevity, both in terms of an enduring civilization as well as culture, the economic, mercantile (some would say ‘mercenary’), materialistic approach of the American Way lends itself to criticism for the emphasized focus upon short-term gain and profit.

For those questioning whether or not a Federal Disability Retirement annuity, in comparison with compensation received or being received through the Department of Labor, Office of Workers’ Compensation Programs (FECA), would be beneficial, may be suffering from the American-Way syndrome — of viewing the higher pay alone and in a vacuum, without considering the superior benefits of the longer view of life.

Indeed, under an annuity from the U.S. Office of Personnel Management, Federal Disability Retirement benefits, whether under FERS or CSRS, one may continue to receive the Federal Disability Retirement annuity, and yet work and receive income on top of the Federal Disability Retirement annuity, up to 80% of what one’s former Federal or Postal job currently pays.  Under OWCP, of course, one cannot work while receiving temporary total disability payments.

Further, it is important to understand that the time that one is on Federal Disability Retirement counts towards the total number of years of Federal service, so that when it converts to regular retirement at age 62, all those years on Federal Disability Retirement are counted.

Short term sale or long term goals and benefits?

Whether lacking in culture, history or an enduring civilization, it is always beneficial to review the present, in order to plan for the future.  Short sales often sell one short, and that is something which the Federal and Postal employee must take into account in preparing, formulating, and filing for Federal Disability Retirement benefits from OPM, whether under FERS or CSRS.

Sincerely,

Robert R. McGill, Esquire

Disability Retirement for Federal Workers: Moving beyond the Stagnant Waters of OWCP

“Is it possible…” is an impossible question to answer.  For, the conceptual distinction between that which is possible, as opposed to probable, is one which reveals the chasm between the world of fantasy and one of reality.  The world of the “possible” is unconstrained and unbounded; the world of probable occurrences may be fenced in by statistical constructs, actual circumstances, and real-world experiences.

While it is possible to stay on OWCP for a long duration, it is also probable that OWCP will cut off one’s benefits at some future, undetermined and unexpected time.  Thus, for the Federal or Postal employee who is on, has been on, or even is contemplating filing for, OWCP/FECA benefits because of a work-related injury, the benefit itself is attractive enough to remain on the rolls of OWCP until such time as (A) the Federal or Postal employee can return back to work, (B) the Federal or Postal Worker is deemed recovered, and the OWCP benefits are cut off, or (C) the Federal or Postal Worker decides to “move on” in life.

The first two choices are essentially out of the arena of “control” of the Federal or Postal employee, for one cannot determine or expedite the recovery period of a medical condition, and further, only the doctor (or its surrogate, the Office of Worker’s Compensation Programs) can determine whether or not the Federal or Postal work is now recovered.  As for the last choice, however, it is the Federal or Postal worker who can make the determination — especially if one has already gotten an approval from the U.S. Office of Personnel Management on one’s Federal Disability Retirement application.

OWCP is not a retirement system; one cannot work at another job while on OWCP; one must sit and do what the OWCP case worker tells you to do.  It is only with Federal Disability Retirement benefits, whether under FERS or CSRS, that one can actually engage in another, alternative vocation or career, and begin to move on in life, and become released from the stagnant waters of a constraining medical condition — or that of OWCP.

Sincerely,

Robert R. McGill, Esquire

Medical Retirement for Disabled Federal Workers: OWCP & Federal Disability Retirement

Whether or not one remains on Department of Labor, Office of Worker’s Compensation Programs (DOL/OWCP) benefits, of receiving Temporary Total Disability compensation, and for how long, should not be the determining factor as to whether to file for Federal Disability Retirement benefits from the Office of Personnel Management, whether under FERS or CSRS.  

Ultimately, the two systems of benefits and compensation are meant to address two different issues. OWCP is meant to address the issue of a Federal or Postal worker who has been injured on the job, or from an occupational disease, and thus causation is an issue with OWCP compensation and benefits.  Further, OWCP is not meant to be a retirement system — although, in more recent years, the U.S. Postal Service and some other Federal Agencies have started to use it “as if” it is a retirement system for its employees, encouraging the filing for such benefits in order to shed the agency of workers who are not “fully” productive.  

What often happens, however, when a Federal or Postal worker continues to remain on OWCP is that it become a default retirement system.  One can easily become comfortable in receiving the Temporary Total Disability payments, and indeed, because of the high rate of pay and the appearance of greater benefits because no taxes are taken out of the amount paid, one can continue to survive on such payments.  But because it is not a retirement system, the day can suddenly dawn when OWCP finds that the Federal or Postal worker is no longer entitled to such compensation.  For that reason, and sometimes for that reason alone, it is important to secure the benefit of a Federal Disability Retirement annuity.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: OWCP Acceptance & Federal Disability Retirement

Case acceptance by the Department of Labor, Office of Workers’ Compensation Programs (DOL/OWCP) makes it easier for the Agency to make a determination on issues of accommodation, which is one of the elements which must be established in preparing, formulating and filing a Federal Disability Retirement application under FERS or CSRS.  

On the one hand, when a Federal employee has been deemed to be “permanent and stationary”, the issue as to whether or not the Agency can reassign the Federal employee, or accommodate him such that the employee can continue to perform all of the essential elements of his or her job, can be easily established, in conjunction with and through the cooperation of a case manager from OWCP.  But even a modified job does not preclude an employee from filing for, and being eligible for, Federal Disability Retirement benefits under FERS or CSRS, precisely because such a modified or “light duty” job is not a permanent position, but rather an ad hoc set of duties as described in the prevailing case of Bracey v. OPM.

On the other hand, when a Federal or Postal employee has been accepted by OWCP and placed on “temporary total disability” — even if the “temporary” nature of such compensation continues on and on for many years — then it makes it easy for the Agency to simply forget about the employee and not even search to see if accommodating the individual is even possible.  

Thus, being placed on OWCP often makes it a simple administrative matter for the Agency.  No accommodations need to be searched for, and the Agency can move on, leaving the Federal or Postal employee in perpetual limbo.  

Concomitantly, however, for the Federal or Postal employee, the fact that one’s medical condition has been accepted by OWCP/DOL can be used as one element to file for Federal Disability Retirement benefits, to show that being on OWCP has some evidentiary weight that (A) the Agency is unable to accommodate the Federal or Postal worker, and (B) that there is persuasive evidence that another Federal Agency has determined that the Federal or Postal employee is disabled, and (C) that receiving temporary total disability is an indicator that one is unable to perform one or more of the essential elements of one’s job.  

Nevertheless, beyond the proof of acceptance by OWCP, the Federal or Postal employee must still affirmatively prove by a preponderance of the evidence that the medical evidence proves that one is unable to perform one or more of the essential elements of one’s job. Being on OWCP may have some minimal persuasive impact; it is still up to the Federal or Postal employee who is preparing, formulating and filing a Federal Disability Retirement application that he or she is eligible for the benefit.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Plantar Fasciitis, Rotator Cuff, Extremity Injuries, etc.

In preparing, formulating and filing a Federal Disability Retirement application under FERS or CSRS, it is often the case that Federal and Postal workers (and the general population) tend to “pigeonhole” medical conditions, injuries and disabilities.  Certain medical conditions are considered “causally related” to certain types of jobs, and this type of relational categorization is often true in Worker’s Compensation claims, or other benefits sought in other areas of law. 

Thus, Plantar Fasciitis is often closely associated with Postal Workers who must remain on their feet throughout the day; Rotator Cuff injuries are often associated with the repetitive physical use of upper extremities; Shoulder Impingement Syndrome, Cervical, Lumbar & Thoracic pain, degenerative disc disease, etc., are all categorized and pigeonholed into physical types of jobs.  Yet, chronic pain of one’s extremities, joints, musculature, etc. can often severely impact more sedentary types of jobs, precisely because of the high distractability of such chronicity of pain.  Additionally, one often overlooks the excessive amount of repetitive “micro-movements” one engages in while on a computer — of the thousands of dexterous manipulations of the fingers and the concomitant engagement of the shoulder muscles, etc., in the very act of typing on a keyboard. 

Pigeonholing a medical condition to a specific type of job is a dangerous endeavor of dismissing a viable Federal Disability Retirement application under FERS and CSRS.  Careful thought and consideration should be given for each medical condition, especially when attempting to ignore the impediment it is causing in performing the essential elements of one’s job does not make the pain go away.  “Out of sight” does not mean “out of mind”, especially when dealing with pain and the underlying medical condition.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: The Three Pockets

In discussing Federal Disability Retirement benefits under FERS or CSRS, it is important to keep in mind the conceptual distinction between the three “pockets” of compensatory programs or resources (and, not to confuse the issue further, but these three pockets are separate and apart from the 3-legs of the retirement stool envisioned under FERS — the FERS Retirement annuity, Social Security, and TSP).  

The three primary pockets of compensatory programs include:  CSRS & FERS Disability Retirement (and its companion hybrid, the CSRS-Offset)  – all of which get recalculated at age 62 to regular retirement; SSDI (Social Security Disability which, under FERS, one must file for automatically as part of the process of submitting for FERS Disability Retirement benefits, but under CSRS, one does not need to); and finally, Department of Labor, Office of Worker’s Compensation Program.  

The former two have direct interaction, inasmuch as one who falls under FERS Disability Retirement must also file for SSDI, and if both are accepted, there is an offset of benefits between the two (100% offset the first year of benefits, 60% offset every year thereafter until age 62).  The last of the three pockets, OWCP benefits, as I have stated on many occasions, is not a retirement system, but one may file for such benefits concurrently with filing for FERS or CSRS Disability Retirement benefits (but one must elect between OWCP benefits on the one hand, and FERS or CSRS benefits on the other hand), have both approved, but cannot collect both concurrently.  There is an exception — and that has to do with a “scheduled award”.  

While keeping these various benefits conceptually distinct can be rather confusing, it is important to understand the distinctions when contemplating filing for Federal Disability Retirement benefits under FERS or CSRS.

Sincerely,

Robert R. McGill, Esquire

Medical Retirement Benefits for US Government Employees: OWCP Disability

Periodically, a telephone call will begin with the statement that the Federal or Postal worker has been on “Disability” for the past _____ years.  The first question that must be asked is, “Are you speaking about OPM Disability Retirement?”  If the answer is one of confusion or lack of clarity, then a further query must be made, trying to establish whether or not the Federal or Postal worker is speaking about receiving payments from the Department of Labor, Office of Worker’s Compensation.

As it turns out, most people who refer to being on “Disability” often mean that they are receiving Worker’s Compensation.  Once this is established, then it becomes important to know whether or not the Federal or Postal Worker has been separated from Federal Service; and if so, when was he or she separated (because if it has been over 1 year, then it is too late to file for Federal Disability Retirement benefits from the Office of Personnel Management).  

Receiving “disability” is often confusing to the Federal or Postal employee.  A revealing fact is when the individual states that the “Agency put me on disability”.  This normally means that the person is on OWCP.  Or, if you are receiving 75% of one’s pay.  Remember that there is a distinction and a difference between OWCP and OPM Disability Retirement.  The former pays well, but may not last forever.  Indeed, if the latter is not applied for within the time-frame allowed, you will be barred from ever applying for it.

Sincerely,

Robert R. McGill, Esquire

FERS/CSRS Disability Retirement Compared To OWCP

OWCP vs. OPM Disability Retirement

The Department of Labor administers Federal Worker’s Compensation Benefits through the Office of Workers’ Compensation Programs (OWCP). Such benefits are non-taxable, and are paid for temporary total disability, for injuries or medical conditions which result from, or are caused by, a workplace injury. There are many tangential factors which may be added to this basic definition, but for purposes of distinguishing OWCP from the Office of Personnel Management (OPM) Disability Retirement, this definition will suffice. Additionally, generally speaking, OWCP/Federal Worker’s Compensation is not a “retirement system.”

OPM Disability retirement, on the other hand, is a retirement system. As a result of a medical condition which impacts one’s ability to perform the essential elements of one’s job, a person is eligible to retire early, based upon a “medical disability.” A person on OPM Disability Retirement is separated from the Federal Agency, and he or she may “move on” in life, and perhaps start another career (with certain limitations as stated below).

When is it Time to File for FERS/CSRS Disability Retirement?

An individual must file for Federal Employees Retirement System/Civil Service Retirement System (FERS/CSRS) disability retirement benefits with the Office of Personnel Management within one (1) year of being separated from Federal Service – otherwise, the right to be eligible for disability retirement benefits is lost. Do not confuse this with being placed on Leave Without Pay (LWOP), or being out on OWCP for being injured. The clock begins ticking when you are actually separated from service. Most people, however, should not wait until they are separated to file for disability retirement benefits, but rather, should file whenever it becomes apparent that he or she can no longer perform one or more of the essential elements of the job.

Taxable vs NonTaxable Benefits

OWCP benefits are non-taxable. OPM Disability Retirement benefits, on the other hand, are taxed. While receiving disability retirement benefits, a person may undertake a job search, accept another position, and earn up to 80% of what his or her former position currently pays. Individuals receiving OWCP temporary total disability may not work at another job – period. Here is a sample scenario using OPM Disability Retirement rules:

A worker’s average salary for 3 consecutive years totals $50,000. The individual goes out on disability retirement, and after the first year (in which he would receive 60%, or $30,000), he is eligible to receive an annual annuity of 40%, or $20,000. The worker then applies for and accepts a job in the private sector. The worker can accept a job that pays up to $40,000 per year (80% of the current salary), and still be eligible to receive the $20,000 per year disability annuity.

The 80% Rule Increases Over Time

The rule is “80% of what a person’s former job pays currently.” If 5 years from now, a person’s former position pays $60,000 per year instead of $50,000, then he can make up to $48,000 per year at the job, because 80% of $60,000 is $48,000.

Filing for Disability Retirement while on Workers’ Compensation

It is often not a bad idea for those who are receiving OWCP benefits to remain on OWCP for as long as they can stand it (i.e., the persistent harassment, the constant oversight by so-called “2nd opinion doctors”, etc.) — but to always have the FERS/CSRS disability retirement annuity approved as a back-up source of income. Individuals may file for disability retirement concurrently while on OWCP — but you simply cannot collect from both at the same time (See 5 C.F.R. Sec. 844.105, “Relationship to workers’ compensation. (a) Except as provided in paragraph (b) of this section, an individual who is eligible for both an annuity under part 842 or 844 of this chapter and compensation for injury or disability under subchapter I of chapter 81 of title 5, United States Code (other than a scheduled award under 5 U.S.C. 8107(c)), covering the same period of time must elect to receive either the annuity or compensation.”).

When OWCP terminates payments (and there is a very good chance that this will happen at some point in the near future), it is a wise option to have your disability retirement benefits approved, but held in an inactive status. Federal workers have every right to elect one benefit over the other. Indeed, if you wanted to, you are allowed to go back and forth between OWCP and FERS/CSRS disability retirement.

As a secondary issue on this matter, a closer look at 5 U.S.C. Section 8106, paragraph (c) (2), (OWCP) on “partial disability” compared with the definition for disability retirement reveals: that “partially disabled employee who refuses or, neglects to work after suitable work is offered to, procured by, or secured for him, is not entitled to compensation.” This means that if OWCP secures a job for you as a retail store greeter for instance, and pays you the difference between your salary and what retail store pays — and you decide to say “no”, OWCP has every right to cut off your payments.

On the other hand, under the laws concerning FERS & CSRS disability retirement, 5 C.F.R.Sec. 844.103 (a)(2) states that, in order to be eligible for disability retirement, the individual “must, while employed in a position subject to FERS, have become disabled because of a medical condition, resulting in a deficiency in performance, conduct, or attendance, or if there is no such deficiency, the disabling medical condition must be incompatible with either useful and efficient service or retention in the position.” The difference here is that, under OWCP, if you are “partially disabled,” if you are offered any job that OWCP believes you can do, you must accept it. On the other hand, under FERS/CSRS disability retirement laws, if you are partially disabled — meaning that you simply cannot do at least one or more of the essential elements of your job — then you are entitled to disability retirement benefits, and your agency or the Postal Service cannot simply offer you any job; they must offer you a job in the same pay or grade, and one in which you are qualified or, if you are in the Postal Service, then it must an accommodation in the same craft.

Controlling Your Future

Under OWCP, you have no control over your future – OWCP determines your future. Under OPM Disability Retirement, you can obtain disability retirement benefits, and then take control of your future and work at another job of your choice, make up to 80% of what your (former) position pays and still continue to receive your disability annuity.

Follow

Get every new post delivered to your Inbox.

Join 91 other followers