CSRS & FERS Medical Disability Retirement: OPM & SSDI

In filing an application for Federal Disability Retirement benefits under FERS (Federal Employees Retirement System), the applicant must file for Social Security disability benefits (SSDI) sometime prior to the approval of a Federal Disability Retirement application.  This is because the “system” of FERS is tied to the Social Security System, and the Federal Government wants to see whether or not a FERS disability retirement applicant is concurrently eligible and entitled to Social Security Disability benefits.  Those Federal or Postal Workers who are still under the “old system” (CSRS — Civil Service Retirement System) — and you are getting rarer and fewer each year — need not apply.  Those who are of a “hybrid” nature (CSRS offset, etc.) also should apply.

 There is an inconsistency in the way the Office of Personnel Management “requires” the filing for SSDI.  Sometimes, OPM will insist that a FERS Federal Disability Retirement applicant file for SSDI and obtain a receipt only after he or she has been unemployed or separated from the Federal Agency; other times, OPM will be fully satisfied with a receipt of an SSDI filing obtained even while employed by the agency, even though it would mean that an SSDI denial was based upon employment, and not upon whether a person was disabled or not.  In any event, an applicant who is filing for Federal Disability Retirement benefits under FERS should comply with the requirement by filing for SSDI, and getting a receipt showing that one has filed.  

Sincerely,

Robert R. McGill, Esquire

Federal/OPM Disability Retirement: Filing for SSA

I keep getting the same feedback that tells me that people are still receiving erroneous information: SSA disability benefits do NOT have to be applied for first before you file for OPM Disability retirement benefits. In fact, the Office of Personnel Management only needs the receipt showing that a disability retirement annuitant filed for SSA disability benefits at the time of approval. Further, OPM would actually prefer that the SSA denial was based upon reasons other than the fact that the Applicant is still working, because the coordinating off-set between SSA & FERS disability benefits would come into play; however, if an applicant files for SSA benefits & files for disability retirement benefits while still working (and, for most individuals, it is an economic necessity that one continue to work for as long as possible during the process of obtaining disability retirement benefits), then that individual will summarily be denied by the Social Security Administration based not on the medical disability claimed, but rather, upon the fact that the applicant’s current income exceeds the maximum allowed by the Social Security Administration rules governing income and eligibility for benefits based upon income. Thus, for the 50th time: a FERS disability retirement applicant does NOT need to file for SSA disability benefits before filing for OPM disability retirement benefits. At some point in the process, prior to, or at the time of approval by OPM, the individual should file, obtain a receipt of filing, and fax it to OPM.

I hope this clarifies the issue.

Sincerely,

Robert R. McGill, Esquire