Medical Retirement Benefits for Federal & Postal Employees: Reminder

If a Federal or Postal Employee files for Federal Disability Retirement benefits under FERS or CSRS, remember that:  (A)  You are not required to stop working, as most people for economic necessity continue to work, and (B)  If you stop working, and you are not using your Sick Leave or Annual Leave, but are out on LWOP, remember that once you obtain an approval for your Federal Disability Retirement, that back-pay will be paid all the way back to your “last day of pay”, and not to the last day you “worked”. 

In other words, if you are out on LWOP for three months (as a hypothetical), and on the day before you are approved for your OPM Disability Retirement, you receive a paycheck from your Agency for 1 hour of SL or AL, then you have lost all of the potential “back pay” of the three months on LWOP, because the “last day of pay” was the day just before your Federal Disability Retirement was approved.  Be careful that this does not happen.  While donated leave is often accepted because of economic necessity, you will likely regret accepting such payment once your Federal Disability Retirement application is approved.


Robert R. McGill, Esquire

2 thoughts on “Medical Retirement Benefits for Federal & Postal Employees: Reminder

  1. ed landa

    what happens to my sick leave as postal worker
    if I,m retireing on postal disability

  2. Clint Hungerford

    Question: Is there a financial monthly advantage in my retirement package by applying for disability retirement now after I have already retired?

    I was a CSRS employee. I had a 40-year, three month career; I reitred as a GS 12 step 10 employee. )

    I was diagnoised with lung cancer, 16 January of 2009. Throughout the next several months of that year, I had 37 radiation treatments and now, some 46 chemotherapy treatmets (still under doctor’s chemotherapy care). My cancer was not job-related.

    During that time between diagnois’ and treatment and ultimately retirement, I used over 600 hours of sick leave prior to retirement. I retired in August of 2009.

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