CSRS & FERS Disability Retirement: OPM Disability Retirement & Postal Service Voluntary Early Retirement (VER)

For multiple reasons, early retirement — if eligible; if offered; if … — is an option which must be considered by a Federal or Postal employee.  In the coming months, Voluntary Early Retirement will be offered to Postal Employees; each year, Federal employees who become eligible for some form of early retirement must make hard financial decisions.  In light of the present state of the economy (not good), an offer of early retirement (some not so bad) may have to be considered by the Federal or Postal employee.  In each case of such an offer, the details of any such offer must be carefully reviewed and considered — especially if, concurrently, a Federal or Postal employee is considering filing for disability retirement.  A Federal or Postal employee can only collect one or the other:  you can either receive an early retirement annuity, or a disability retirement annuity, but not both.  You can, however, consider filing for early retirement (in order to continue to have some income), then file for disability retirement within one year of being separated from Federal Service. 

If you take this route of filing for early retirement, then filing for disability retirement, you must be careful.  For instance, if a lump-sum payment is part of an early retirement package, will it have to be paid back if you file for, and are approved for, disability retirement?  Further, remember that the years that you are on disability retirement counts toward your total number of years of Federal Service, when it is recalculated at age 62.  This is an important point.  The short-term benefit of retiring early may not seem like such a good idea 10 years later when inflation eats into the annuity.  A cost-benefits analysis should look to all of the factors involved:  the annuity amount and difference between disability retirement and early retirement today; the difference of the annuity when disability retirement is recalculated, and those years while on disability retirement count towards your regular retirement; and the dollar difference calculated out to the life expectancy.  These are all considerations which must be looked at carefully — not just upon one’s short-term benefit of an early retirement (which may seem great), but more than that, for the long-term security of the Federal and Postal employee.

Sincerely,

Robert R. McGill, Esquire

6 Responses

  1. Do you need a special form to apply for a schedule award? Please respond and if so what are the form or forms? thank you. respectfuly Hector Cruz.

  2. I NEED THE THE SF3112A AND THE SF3112C form to complete my disability retirement application from

  3. I need the SF3112A and the SF3112C , SF3112B to complete my disability paper work for retirement . You can reach me at ,Robert louis booker, 12302 shelly drive, madison, AL. 35757

  4. I retired from the Postal Service February 28, 2009 under the Early Retirement Program. I had an OJI back in December 1992 regarding my back, and now I can’t get a job because the doctor states that I am totally disable. Can I still get a schedule award and switch from retired to retire disability from the Postal Service?

  5. what does a lump sum mean to a civilian service

  6. a person that was on owcp will they be paid lwop

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