OPM Medical Retirement and the Interplay with SSDI

Some stream of consciousness thoughts:  First, there is still the prevailing problem of Federal or Postal workers being lead to believe that there is some sort of sequential requirement in filing for Social Security Disability benefits (SSDI) and filing for Federal Disability Retirement benefits with the U.S. Office of Personnel Management.

While the sequence of filing for SSDI would be logically coherent — i.e., since at the time of an approval of a FERS Disability Retirement Application, the Office of Personnel Management requests to see a receipt of filing from the Social Security Administration — many people in fact go this route.  But the problem arises when Federal and Postal employees somehow get the misinformation that they must wait until they receive an approval from SSDI, which can take years.

During the wait, the 1-year statute of limitations may come and go.

The solution:  Go ahead and file for SSDI, get a receipt, etc.  But never allow the 1-year Statute of Limitations to pass in filing for Federal Disability Retirement benefits with the U.S. Office of Personnel Management.  Again, for OPM purposes, all that is required is a mere showing of a receipt that you filed; no determination needs to be made and, moreover, OPM only requests to see the receipt at the time of an approval.

Second, if SSDI approves your Social Security Disability Case at any time during the process of filing for OPM disability retirement benefits, it can have a persuasive impact, but not a determinative one.  This merely means that OPM will consider it in the totality of the medical evidence you submit.  But to have a persuasive impact, you need to make the “legal” argument — i.e., you need to try and persuade.

Sincerely,

Robert R. McGill, Esquire

Federal Disability Retirement: FERS & SSDI

Of course one must file for SSDI (Social Security Disability benefits) when a Federal or Postal employee under FERS (the Federal Employees Retirement Systems, as opposed to CSRS, the Civil Service Retirement System) files for Federal Disability Retirement benefits.  If approved by Social Security, there is a 100% offset of benefits in the first year, and a 60% offset of benefits every year thereafter until age 62.  The real underlying question for most people, is how aggressively one should, or one wants to, pursue Social Security benefits.  This is often determined by what one plans to do after becoming a Federal Disability Retirement annuitant.  For, if you plan to work part or full time, and think that you will be earning more than the yearly ceiling allowable under SSDI, which is around $12,000.00 per year, then it is probably not worthwhile to pursue it very aggressively.  On the other hand, if you plan on relying exclusively on your disability annuity, it is probably a good idea to pursue it with the intent of obtaining it. 

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Paradigms for the Future

In attempting to decide to file for Federal Disability Retirement Benefits, it is often the case that Social Security disability benefits must be considered (not just “considered”, obviously, for FERS employees, because it is a requirement to file for it), and how seriously and vigorously; and further, whether to pursue, or to continue on, OWCP temporary total disability benefits.  These are “paradigms” that must be considered for the future.  By “paradigm”, I mean that they represent “models” of how a person wants his or her future to be based upon. 

For instance, let’s take the paradigm of Social Security disability benefits.  Because FERS employees who file for Federal Disability Retirement benefits must also file for Social Security disability benefits (to see if they qualify; and, if qualified, the offsetting features will apply), one must take into consideration whether or not a Federal or Postal employee will actually want Social Security disability benefits.  This question arises because Social Security has a “cap” in which a person who receives Social Security disability benefits can make ancillary earned income (roughly no more than $10,000 per year).  Because of this, one must think of the future paradigm of one’s life:  If a person on FERS disability retirement wants to go out and get a part-time job, or start on a path for another career, where he or she makes 15, 20, 25,000 per year or more (because remember, a person can make up to 80% of what a person’s former Federal or Postal job currently pays), then he or she may not want to get Social Security disability benefits.  Most people who are on Federal disability retirement are simply disabled from performing one or more of the essential elements of the particular job; they are not “totally disabled”, and therefore are able to go out and start a second career.  This is the “paradigm” for the future which must be considered, and such a model for the future must be carefully thought through.  Next:  the OWCP paradigm.

Sincerely,

Robert R. McGill, Esquire