Federal and Postal Disability Retirement: SSDI & OPM Disability Retirement

Until the economy begins to significantly expand in order to allow for a greater increase of the workforce, those who are on FERS or CSRS Disability Retirement often consider aggressively pursuing Social Security Disability benefits.

While the standard of proof is higher, where the concept of “total disability” is much more applicable (pragmatic interpretation:  the medical condition presents a quantifying impact upon a greater area of one’s life activities, and not merely upon the essential elements of one’s job), the problem with SSDI benefits is that it limits the Federal and Postal employee from making outside income beyond about a thousand dollars per month.

Without SSDI, of course, a former Federal or Postal worker who is receiving Disability Retirement benefits through the Office of Personnel Management, can earn up to 80% of what one’s former (Postal or non-Postal Federal) job currently pays.  And, with the ability to retain one’s health insurance benefits, life insurance, etc., the Federal Disability Retirement annuitant can be an attractive labor force for companies who are trying to contain costs and expenses.

This is a highly competitive economy, with companies being proactively selective and discriminating in their hiring practices.  For the Federal or Postal employee preparing, formulating, and filing for Federal Disability Retirement benefits, whether under FERS or CSRS, many options remain open, and advantages to be taken. Yes, the medical condition itself is a “negative” which forces one to leave the Federal workforce; but once FERS or CSRS disability retirement benefits are approved, there are many positive decisions to make.

Sincerely,

Robert R. McGill, Esquire

FERS Disability Retirement: SSDI & FERS Offset

Federal and Postal Disability Retirement annuitants under FERS were required to file for SSDI as part of the process.  Most Federal and Postal employees who filed for Federal Disability Retirement benefits under FERS, never obtain an approval for SSDI.  This is natural, of course, and is part of the overall “framework” of the interaction between FERS Disability Retirement benefits and SSDI.  FERS Disability Retirement (as well as CSRS Disability Retirement) encourages Federal and Postal Workers to become employed in the private sector, and to become “productive” (translation:  continue to pay more taxes) in some other area of employment. 

Because Disability Retirement benefits under FERS or CSRS does not pay a great amount (60% of the average of one’s highest three consecutive years the first year under FERS, and 40% thereafter; a different computation methodology for CSRS employees, who are becoming rarer each year), the paradigm and plan of the Federal payment system for Disability Retirement annuitants had an implicit public policy approach of “encouraging” all such annuitants to find other employment.  Unless, of course, in addition to the FERS Disability Retirement annuity, one became entitled to SSDI payments, in which case the “cap” for income from other employment becomes much, much lower.  Many considerations should be thoughtfully approached when filing for SSDI, including plans for future employment.  Otherwise, some problems may be encountered if the annuitant receives both FERS Disability Retirement benefits, SSDI, and exceeds the cap from other employment.  More to Follow.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Paradigms for the Future

In attempting to decide to file for Federal Disability Retirement Benefits, it is often the case that Social Security disability benefits must be considered (not just “considered”, obviously, for FERS employees, because it is a requirement to file for it), and how seriously and vigorously; and further, whether to pursue, or to continue on, OWCP temporary total disability benefits.  These are “paradigms” that must be considered for the future.  By “paradigm”, I mean that they represent “models” of how a person wants his or her future to be based upon. 

For instance, let’s take the paradigm of Social Security disability benefits.  Because FERS employees who file for Federal Disability Retirement benefits must also file for Social Security disability benefits (to see if they qualify; and, if qualified, the offsetting features will apply), one must take into consideration whether or not a Federal or Postal employee will actually want Social Security disability benefits.  This question arises because Social Security has a “cap” in which a person who receives Social Security disability benefits can make ancillary earned income (roughly no more than $10,000 per year).  Because of this, one must think of the future paradigm of one’s life:  If a person on FERS disability retirement wants to go out and get a part-time job, or start on a path for another career, where he or she makes 15, 20, 25,000 per year or more (because remember, a person can make up to 80% of what a person’s former Federal or Postal job currently pays), then he or she may not want to get Social Security disability benefits.  Most people who are on Federal disability retirement are simply disabled from performing one or more of the essential elements of the particular job; they are not “totally disabled”, and therefore are able to go out and start a second career.  This is the “paradigm” for the future which must be considered, and such a model for the future must be carefully thought through.  Next:  the OWCP paradigm.

Sincerely,

Robert R. McGill, Esquire