Medical Retirement for Federal Workers: Back Pay

In preparing, formulating and filing for Federal Disability Retirement benefits under FERS or CSRS, it is important to focus upon the first of the three — preparing.  Preparation often involves thought, reflection, and contemplation.  Formulation requires action; and filing and the time thereafter requires patience.  

In preparing, one must address the issue of how best to survive the lengthy process — does one have sufficient accrued sick leave?  Can one survive without pay and take LWOP during the (potentially) 8 – 10 month process?  Will one be allowed to continue to work, even in a light-duty capacity?  If the latter, then it should be kept in mind that when a Federal Disability Retirement application is approved, such an approval will provide for back pay all the way back to the last time a Federal or Postal employee was paid by the agency — whether it is a dollar, a hundred dollars, or a full paycheck.  

Thus, while acceptance and receipt of donated leave is often desirable, the time of having taken LWOP for any period of time will be negated with the last day of pay.  For example, if a Federal or Postal employee takes several months of LWOP, then accepts a pittance of donated leave, that time of LWOP is lost — for, again, back pay is paid only to the “last day of pay”.  Considerations to be reflected upon when preparing to formulate and file for Federal Disability Retirement benefits under FERS or CSRS.

Sincerely,

Robert R. McGill, Esquire

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.

Sincerely,

Robert R. McGill, Esquire