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

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

Medical Retirement Benefits for US Government Employees: Interactions

Preparing, formulating and filing for Federal Disability Retirement benefits under FERS or CSRS, from the U.S. Office of Personnel Management, is a necessary step for a Federal or Postal employee who finds that he or she can no longer perform one or more of the essential elements of one’s Federal or Postal job because of a medical condition.  

In doing so, there are obviously potential interactive processes which one must consider.  If the Federal or Postal employee is under FERS, then you must file for SSDI (Social Security Disability benefits), because that is what the law requires.  

Further, one must determine how aggressively, to what extent, and to what end and purpose one needs to file in pursuing SSDI concurrently — for, if one is planning on working at another, separate job while receiving a Federal Disability Retirement annuity, then the cap imposed by SSDI as opposed to the 80% allowance for FERS Disability Retirement without SSDI, needs to be taken into consideration.  Such future planning will then determine the course of one’s actions, as to how hard one will try and obtain SSDI benefits.  

Additionally, if the medical condition arose from a work-related injury, then obviously filing a claim concurrently with the Department of Labor, Office of Workers Compensation under FECA should be contemplated.  

Then, there are those who, whether by accident or wisdom and foresight, obtained and paid for throughout the intervening years, a private disability insurance policy.  Such private disability insurance policies are essentially contracts — and whether there is an offset with Federal Disability Retirement benefits, Social Security, or OWCP depends upon the “fine print” of the contract.  

One minor note as to private disability policies:  The time to read the fine print is when the insurance agent is trying to sell you a policy — not when you need to apply for the benefits.  Private policies can be negotiated, and the terms can be amended.  

Finding a negative consequence after the fact is a costly error in judgment which can easily be mitigated by spending a few moments at the outset.

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