Early Medical Retirement for Disabled Federal Workers: Intersection with VERA

Questions always abound when Federal agencies and the U.S. Postal Service offer incentivized programs under the Voluntary Early Retirement Authority (VERA) propounded by the U.S. Office of Personnel Management.  In accepting a VERA, the Federal or Postal employee who suffers from a medical condition must take into account whether the VERA should take the place of a Federal Disability Retirement application, or whether it will merely be the first step in the process of filing for Federal Disability Retirement.

Often, because Federal Disability Retirement takes many months in order to secure and procure, Federal and Postal employees considering such an option will elect to accept a VERA in order to have some income during the time of filing for, and waiting upon, a decision from the U.S. Office of Personnel Management in a Federal Disability Retirement application.

Questions which the potential Federal or Postal VERA annuitant should ask themselves include: What impact does a Federal Disability Retirement application have upon a VERA? Is there an offset between Social Security and the VERA annuity, as opposed to the offset which occurs under Federal Disability Retirement, and if so, which provides greater financial sense? Are there provisions where, if the Federal or Postal employee accepts a VERA, one must repay any lump sum incentive which is offered, if one subsequently files for Federal Disability Retirement benefits and gets it approved?

While it often makes sense to accept a VERA, then to subsequently file for Federal Disability Retirement benefits within one (1) year of being separated from Federal Service as a result of the VERA, one should nevertheless do so with full knowledge and information.

As a final point, in addition to obtaining all information and basing one’s decision upon full knowledge, the fact that the years which one is on Federal Disability Retirement counts toward the total number of years of one’s Federal Service, should always be factored in — especially if one lives to be a ripe old age, where one’s retirement nest egg will be an important future consideration.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: The Spouse

I find that when a person is filing for Federal Disability Retirement benefits under FERS, an important component which is often overlooked is the supportive spouse.  I often get calls concerning various aspects of the Disability Retirement process — not from the applicant, but from the spouse.  And, indeed, this is natural, because often the medical condition itself is serious enough that the applicant is unable to “handle” or “deal with” the complexities of the process itself.  It becomes further complicated when the medical condition which is suffered is a psychiatric condition — severe Major Depression, anxiety, panic attacks, suicidal ideations, etc.

However, whether it is psychiatric or physical, a supportive spouse — or “significant other” — is often very, very important to the success of the entire process.  Obviously, as an attorney who represents “the Client“, I must be careful that there is never a conflict between the Applicant (my client) and “the spouse”, but that is rare.  In almost all cases, I find that the spouse is looking after the best interest of my client, and I am happy to talk to and update the spouse on any and all issues surrounding a FERS Disability Retirement case, because I know that he/she is looking after the best interests of my client, just as I want to.

Sincerely,

Robert R. McGill, Esquire
Federal Disability Retirement Attorney