OPM Disability Retirement: The OWCP Black Hole

Many people rely upon the “generosity” of FECA (OWCP) payments during the period of temporary total disability, and indeed, being tax free and paying 75% of one’s salary (with dependents) or 66 2/3% without, one can easily become reliant upon such benefits. But being on OWCP does not protect the Federal or Postal Worker from being administratively separated from service for extended absences, or for one’s medical inability to perform the essential elements of one’s job, or “unavailability for duty” or other similar basis, to promote the efficiency of the Federal Service.  The agency needs someone to fill the position and do the job.

Normally, at a fairly early stage in one’s period of enduring and suffering from a medical condition or injury, one can assess the nature, extent and severity of the medical condition.  With that in mind, it is a good idea to begin thinking about filing for Federal Disability Retirement benefits under FERS or CSRS.  The security of OWCP benefits is attractive; however, OWCP is not a retirement address.  FECA will “cut off” the benefits at some point — unless you are somehow lost in the black hole of their payment roster, which happens periodically.  However, there are too many horror stories of a Federal employee who stayed on OWCP, was separated from Federal Service, never filed for Federal Disability Retirement benefits within 1 year of being separated, and then one day received a fateful phone call…

Sincerely,

Robert R. McGill, Esquire

Medical Retirement Benefits for Federal & Postal Employees: Reminder (Continuing…)

So, how does one determine whether or not it is prudent to go out on LWOP completely, while awaiting for the decision on one’s application for Federal Disability Retirement benefits under FERS or CSRS?  Obviously, the initial criteria to be applied is whether or not you can afford to go out on LWOP.  Economic necessity (aside from considerations of one’s health and medical ability/inability to go to work during the long, drawn-out process) becomes a primary consideration.  If economic necessity dictates continuation of work, then the next question is, would your Agency consider allowing you to work 3 – 4 days a week, and allowing for 1 or 2 days to be taken off with LWOP?  This might be a prudent approach, since any back-pay for the first year, once your Federal Disability Retirement application is approved and payments start, will be paid at 60% of the average of one’s highest three consecutive years.  Thus, mathematically, it would make sense:  a minimum of 3 days of work quantifies to 60% or more, and so you would not be losing anything.  However, if your weekly average falls below the 60%, then you might want to consider going out on LWOP completely (again, only if your personal finances will allow for such).

Sincerely,

Robert R. McGill, Esquire