Federal Worker Disability Retirement: Projecting Forward

In preparing, formulating and filing a Federal Disability Retirement application under either FERS or CSRS (while the statutory references and case-laws applying to each retirement system may be different, the basic substantive laws governing each are essentially identical), it is important always to project forward, to prepare for the eventuality, and to consider the options so that events don’t take control, as opposed to the Federal or Postal Worker (to the extent possible) maintaining control of the present and future events as they unfold, with the multiple and varied contingencies which can reasonably be predicted.

For instance, upon an approval of a Federal Disability Retirement application from the Office of Personnel Management, the rate of annuity compensation begins at 60% of the average of one’s highest three consecutive years of service.

That first year, then, should be looked upon as a “transition” period for the Federal or Postal worker — with the full knowledge that in the following and subsequent years, the annuity will drop down to (and remain until age 62, when the disability retirement annuity becomes recalculated and converted administratively into a regular retirement, based upon the total number of years of Federal service, including the time on Federal Disability Retirement) to 40% of the average of one’s highest three consecutive years of pay.

That being said, viewing the first year of annuity payments as a “transition” year means that one should be projecting forward as to what one will do in the following and subsequent years.  What kind of work will one do?  How will you make up the difference and reduction in annuity payments?  What preparations are or will be made for the reduction?  Will supplemental income be needed?  Will it be part-time or full-time?  What is the maximum allowable earned income which one can receive?  These are all transition questions which are important in planning for the projected future, forward.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: The Right Timing

Timing the preparation and submission, and ultimate separation/retirement from Federal Service in getting Federal Disability Retirement benefits under FERS or CSRS is rarely a method of precision; it is closer to art than it is to science.  That is because there is the “human” element involved — of when does the medical condition reach its critical point where one cannot withstand the daily and chronic pain; is the doctor ready to support the Federal Disability Retirement application; is the Agency sympathetic or suspicious; can the reduced finances be worked out for a livable standard of living; will the future allow for all of the elements to coalesce? 

There are many, many such human elements which must come into play.  All too often, however, the “right time” for contemplating filing for Federal Disability Retirement benefits is simply determined by external circumstances, such as reaching a critical point in one’s medical condition such that there is simply no other choice left, as opposed to being able to rationally and calmly make an affirmative decision for one’s future.  Whatever may be the particular and peculiar circumstances of a given Federal or Postal employee, the time to consider preparing a Federal disability retirement application must be a decision made by each individual, based upon that individual’s unique circumstances.

Sincerely,

Robert R. McGill, Esquire

CSRS & FERS Disability Retirement: The Time to Make the Decision (Part 1)

Waiting until the last possible moment to start the process to file for Federal Disability Retirement under FERS or CSRS may be commendable from the Agency’s viewpoint — but is it smart?  If you are a Federal or Postal employee with multiple years of service, and you believe that because you gave your life, your blood, your sweat, tears, and even your firstborn, that therefore you will receive what I often term as “bilateral loyalty” (i.e., an expectation of receipt of loyalty from your agency for having given your undying loyalty to them throughout the years), you might want to reconsider.

If you are exhausting all of your sick leave, using your annual leave, dipping into your TSP in order to “hope” that you will recover from your continuing medical condition, then come to a point where you need to file for Federal Disability Retirement under FERS or CSRS, then come to realize that you must survive for 6 – 8 months, or even longer, and pay an attorney, pay for medical reports, and _______ (here, you may fill in the space yourself), then you may need to re-think the entirety of the process, the time it takes, etc.  Most people know, very early on, whether or not he or she has a medical condition which will last for a minimum of 12 months.  The time to start planning for the future is now.  As a famous football coach once quipped, “The future is now.”

Sincerely,

Robert R. McGill, Esquire