Postal and Federal Disability Retirement: The SSDI Filing Requirement

As part of the filing for Federal Disability Retirement from the U.S. Office of Personnel Management, the Federal or Postal employee who is under FERS (CSRS is exempted from this procedural requirement) must file for Social Security Disability Insurance (SSDI) benefits.

How aggressively should one file for SSDI, and when should it be filed?  The latter question will be taken up first: as a practical matter, the U.S. Office of Personnel Management does not need to see a receipt showing that one has filed for SSDI until the date of an approval of a Federal Disability Retirement application.

However, most agencies are under the mis-impression that, procedurally, it must be accomplished prior to submission of a Federal Disability Retirement application, and some agencies actually misinform Federal and Postal employees by insisting that one must receive a “decision” from the Social Security Administration prior to submitting a Federal Disability Retirement application under FERS, with OPM.  That is simply untrue.  All that OPM requires is a mere receipt showing that you filed.  This can be completed and a receipt printed out, by filing online.

As for the extent of one’s efforts in filing for SSDI?  In order to answer that, multiple questions should be asked of one’s self:  Will I be working at another job in the private sector while on FERS disability annuity?  Do I plan to make more than the low threshold ceiling of allowable earned income which Social Security allows for?  How likely will it be to qualify for the higher standard of being unable to engage in “substantial gainful activity” under SSDI rules?

These are all questions which should be asked in the course of filing for SSDI under the FERS program of applying for Federal Disability Retirement benefits.  Remember, it is the question which narrowly focuses the answer; without the former, it is unlikely that one will arrive with accuracy unto the latter.

Sincerely,

Robert R. McGill, Esquire

Federal and Postal Disability Retirement: SSDI & OPM Disability Retirement

Until the economy begins to significantly expand in order to allow for a greater increase of the workforce, those who are on FERS or CSRS Disability Retirement often consider aggressively pursuing Social Security Disability benefits.

While the standard of proof is higher, where the concept of “total disability” is much more applicable (pragmatic interpretation:  the medical condition presents a quantifying impact upon a greater area of one’s life activities, and not merely upon the essential elements of one’s job), the problem with SSDI benefits is that it limits the Federal and Postal employee from making outside income beyond about a thousand dollars per month.

Without SSDI, of course, a former Federal or Postal worker who is receiving Disability Retirement benefits through the Office of Personnel Management, can earn up to 80% of what one’s former (Postal or non-Postal Federal) job currently pays.  And, with the ability to retain one’s health insurance benefits, life insurance, etc., the Federal Disability Retirement annuitant can be an attractive labor force for companies who are trying to contain costs and expenses.

This is a highly competitive economy, with companies being proactively selective and discriminating in their hiring practices.  For the Federal or Postal employee preparing, formulating, and filing for Federal Disability Retirement benefits, whether under FERS or CSRS, many options remain open, and advantages to be taken. Yes, the medical condition itself is a “negative” which forces one to leave the Federal workforce; but once FERS or CSRS disability retirement benefits are approved, there are many positive decisions to make.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: SSDI and the Pursuance Thereof

How aggressively one should pursue SSDI concurrently as one is preparing, formulating and filing for Federal Disability Retirement benefits from the U.S. Office of Personnel Management, is a question which one is often confronted with during the process of filing for Federal Disability Retirement benefits.

If one is under CSRS, then the question is a moot point, because CSRS employees do not have a requirement of filing for SSDI benefits.

For FERS employees, however, who make up the vast majority of Federal and Postal employees who file for Federal Disability Retirement benefits from the U.S. Office of Personnel Management, there is a requirement of filing concurrently for Social Security Disability Insurance (SSDI) benefits.  For purposes of satisfying the requirement of OPM, one needs to only show a receipt that one has filed.  Further, while many Human Resources personnel offices, both for Federal agencies and the U.S. Postal Service (the latter being comprised of the central office known as the H.R. Shared Services Center located in Greensboro, N.C.), misinform and misinterpret the statutory requirement of filing for SSDI, by telling people either that one must file and get a decision from the Social Security Administration prior to filing for FERS Disability Retirement benefits (wrong), or that you cannot file for FERS Disability Retirement unless and until you file for SSDI (also wrong) — the fact is, the only time OPM requires a showing of having filed for SSDI is at the time of an approval of a FERS Disability Retirement application.

As for how actively or aggressively one should pursue SSDI?  That depends, in most cases, on whether you will be attempting to work in a private sector job while on Federal Disability Retirement.  Because SSDI has stringent limits on what you can make in earned income, while OPM Disability Retirement allows for you to make up to 80% of what your former position currently pays, on top of the disability retirement annuity one receives, it becomes a pragmatic calculation.

Pragmatism is the guiding light to determine one’s self-interest, and that which is in the best interest of one’s future.

Sincerely,

Robert R. McGill, Esquire

Disability Retirement for Federal Government Employees: FERS & SSDI Filing

At some point in the process of filing for Federal Disability Retirement benefits under FERS (CSRS is exempted from this particular aspect), the Federal or Postal employee must file for Social Security Disability Insurance (SSDI) benefits.  FERS employees are under the Social Security System, and the reason behind the requirement of filing is to see whether or not the Federal or Postal employee will concurrently be eligible for Social Security Disability benefits.  

Most Federal and Postal employees are not eligible for Social Security Disability benefits, because the higher standard of “total disability” does not apply to the Federal or Postal employee who is filing under FERS, which has a lower standard of being unable to, because of a medical condition, perform one or more of the essential elements of one’s job.  

The requirement to file for SSDI under FERS is one which must be satisfied at or prior to the time of an approval by the Office of Personnel Management.  It is not, as many Human Resources Departments of various agencies will erroneously inform you, a precondition to filing for FERS Disability Retirement benefits. The only requirement which must be satisfied is that, at or prior to the time of an approval of a Federal Disability Retirement application issued by the Office of Personnel Management, a receipt showing that one has filed for SSDI benefits must be presented to OPM before OPM will process the approved Federal Disability Retirement benefits under FERS.  This is to ensure that, prior to payments being issued, it has been determined that no offsets with SSDI will be necessary.  

Again, at or time of the approval of a Federal Disability Retirement claim, is the requirement of presenting a receipt showing that a Federal or Postal employee has filed for Social Security Disability benefits.  It is NOT a precondition of filing for Federal Disability Retirement benefits with the Office of Personnel Management.  It does NOT have to be done sequentially — and this is where Agencies misinform Federal and Postal employees.  One does not have to file for, let alone get approved for, Social Security Disability benefits prior to filing for FERS disability retirement.  I don’t know how much clearer I can state this fact.

Sincerely,

Robert R. McGill, Esquire

Postal and Federal Disability Retirement: Clarifying Misconceptions

Information is interesting.  But not all interesting information is useful.  And, further, not all information, even if interesting and (potentially) useful, is accurate.  Ultimately, in order for information to be of practical use, it must be accurate, useful, and purpose-related.  Thus, when inaccurate (partial or complete) information is placed into the public domain, it often becomes useless, but remains interesting to the extent that people continue to rely upon such information.

In filing for Federal Disability Retirement benefits under FERS or CSRS, it is important to obtain, process, and apply useful and accurate information.  Two sets of basic information need to be clarified:  First, many Postal and Federal employees have been confused about SSDI and its impact upon Federal Disability Retirement and the application process in preparing, formulating and filing for Federal Disability Retirement benefits under FERS (CSRS exempted because an SSDI receipt is not necessary).  Showing a receipt for having filed an SSDI application is all that is needed.  An approval is not necessary; and, indeed, for most Federal and Postal employees, one will not ordinarily qualify for SSDI precisely because it has a higher standard to be eligible.

Further, a sequential showing is NOT necessary — i.e., one does not have to first file for SSDI in order to file for FERS Disability Retirement benefits.  All that is necessary, from OPM’s perspective, is that at the time of an approval of a Federal Disability Retirement application under FERS, a Federal or Postal employee must show a receipt showing that one has filed for SSDI benefits.

The Second informational error to be corrected:  While somewhat redundant based upon the first, a Federal or Postal employee does NOT have to be approved for SSDI in order to file for Federal Disability Retirement benefits under FERS.  That would be pointless and illogical, if one stops and thinks about it.  Again, all that is necessary is that one files, and one shows a receipt at the time of an approval of a Federal Disability Retirement application under FERS.

Yes, this is the information age; but it still comes down to a human being who places the information into the public domain, and the

Sincerely,

Robert R. McGill, Esquire