Federal Worker Disability Retirement: The Deception of Being on OWCP

“But I am on OWCP,” the caller insists.  “But that wasn’t the question.  The question is, are you still on the rolls of the agency?”  “But OWCP has been paying me for the last 2 years and…”

The deceptiveness of being on OWCP and receiving payment from Worker’s Comp results in a feeling of security and lulls one into a sense of comfort.  But receiving OWCP/FECA benefits does not mean that one cannot be separated from Federal Service.  Indeed, many people continue to remain on OWCP rolls, receive the non-taxable benefit, and believe that, because they are on OWCP, this somehow means that they have not be separated from Federal Service.  Beware.  Be aware.  While on OWCP, if the agency moves to separate you, that means that you have one (1) year from the date of separation to file for Federal Disability Retirement benefits from the U.S. Office of Personnel Management, whether under FERS or CSRS.

Being “on” the rolls of OWCP does not stop, prevent, or otherwise interfere with the agency’s determination or right to separate the Federal or Postal employee in order to fill that position.  Then, of course, once a person is separated, and over a year passes, one can no longer file for Federal Disability Retirement benefits, whether under FERS or CSRS, if over a year passes by, because under the law (what is called the “Statute of Limitations“), a Federal or Postal employee must file for Federal Disability Retirement benefits within one (1) year of being separated from Federal Service.

Sincerely,

Robert R. McGill, Esquire

Postal and Federal Disability Retirement: Periodic Clarifications

Clarifications are needed to be periodically made, based upon questions which Federal and Postal employees continue to ask.  There is often a confusion concerning the “one year” issue — whether it concerns the Statute of Limitations in filing a Federal Disability Retirement application under FERS or CSRS, or the length of time a medical condition must last. 

A Federal or Postal employee must file a Federal Disability Retirement application under FERS or CSRS within one (1) year of being separated from one’s Agency.  The confusion often arises because a Federal or Postal employee is unsure of whether or not such separation from service has actually occurred.  Especially for Postal employees, where the U.S. Postal service will often continue to keep a Postal employee “on the rolls” despite having been on OWCP for many years, the confusion can be understandable.  However, one indicator is that if a Postal employee is continuing to receive zero-balance pay stubs, then in all likelihood that Postal employee has not yet been separated from service, and the 1-year tolling of the Statute of Limitations has not yet begun. 

Because obtaining an approval from the Office of Personnel Management on a Federal Disability Retirement application can take an extraordinary amount of time, however, it is wise to begin the process sooner, rather than later, whether one has been “officially separated” from service or not.  For Federal employees, an SF 50 (Personnel Action) form would systematically be issued showing that a Federal employee has been separated from Federal Service

As for the 1-year issue concerning the extent of a medical condition, we will address that issue at another time.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Reminder on the 1-Year Statute

Just a reminder, which is given because of continuing and repetitive questions about the 1-year statute of limitations.  Remember that those who wish to file for Federal or Postal Disability retirement benefits under FERS or CSRS must do so either (A) while a Federal or Postal employee (18 months minimum under FERS; 5 years minimum under CSRS), or (B) within 1 year of being separated from Federal Service.  By “separated” it means actually being terminated from the Federal Agency, whether by resignation or by Agency action.

The 1-year statute of limitations does not begin to toll except when you are separated from Federal Service.  Thus, being on LWOP does not begin to toll the statute; being injured or on OWCP does not begin to toll the statute.  By “toll the statute”, what is meant is that the right to file for OPM Disability Retirement benefits for FERS or CSRS employees does not begin to “count down” unless and until you are actually separated from Federal Service.  This is meant as a continuing clarification of the issue, written because of the questions which have been asked of me over the past month or so.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Years Later, Still On the Rolls of the Agency

The Postal Service is especially guilty of this, but many other Federal (non-Postal) agencies are also “negligent” on the issue of keeping an injured worker on the rolls for years on end.

Often, such “non-existent” Federal and Postal workers receive OWCP payments, or simply go on with their lives while unofficially still a Federal or Postal employee.  Never having been separated from Federal or Postal service, such individuals are still eligible for filing Federal Disability Retirement benefits under FERS or CSRS because the 1-year statute of limitations has not been violated.

So long as a Federal or Postal employee files for Federal Disability Retirement benefits under FERS or CSRS within one year of being separated from service, you have met the statute of limitations.  If you were never officially separated from service, then your 1-year deadline never began.

Sincerely,

Robert R. McGill, Esquire