The Law of Salvage and Federal Disability Retirement Compensation

The concept is derived from maritime law, where recovery of ship or cargo at sea left to abandonment and forfeiture should be duly compensated of a value commensurate with the worth of the property salvaged.  The ocean is a perilous expanse, fraught with dangers encompassing weather, treacherous beneath-the-surface terrain, and potential piracy; and it is within this context of the magnitude of dangers to be faced, that the equitable principles of maritime law are applied. And isn’t that what one must do in most phases and contexts of life?

The measurement of future potential consequences, compared as against the benefit to be received, the compensation considered, which should determine the value of the services rendered.  Thus is a lifetime annuity measurable, not only in terms of the net amount, but also taking into account the economic stability which it promises, the future security it provides, and the potential for a life allowed.

Filing for Federal Disability Retirement benefits through the U.S. Office of Personnel Management, whether one is under FERS or CSRS, or CSRS Offset, must be viewed in this light; for the benefit to be received is almost immeasurable:  Beyond the annuity amount itself, it provides for the capacity of the Federal or Postal worker to be compensated in order to attend to one’s medical condition; the time that one is on Federal Disability Retirement counts towards the total number of years of service, such that when the Federal Disability Retirement annuity is recalculated at age 62, those years one was on Federal Disability Retirement counts towards the total number of years of service; and while one is receiving Federal Disability Retirement, one may work at a private sector job and make up to 80% of what one’s former position currently pays; and many, many other benefits and factors to be considered.

Medical conditions tend to create havoc, and leave an appearance of a life left in tatters; but Federal Disability Retirement is a benefit which can bring about a stabilizing force of foundational security; and just like the Law of Salvage in maritime law, consideration in filing for Federal OPM Disability Retirement should be commensurate with the value to be received in salvaging one’s livelihood, career, and future contentment.

Sincerely,

Robert R. McGill, Esquire

Federal Worker Disability Retirement: Impact of the Economy

In making a decision impacting Federal Disability Retirement under FERS or CSRS from the Office of Personnel Management, multiple factors must be deliberated upon.  Filing for Federal Disability Retirement is a serious step.  

One of the pragmatic advantages involves the factor that, in addition to receiving a Federal Disability Retirement annuity, the Federal or Postal Worker may make earned income up to 80% of what one’s former Federal position currently pays.  This is an important consideration to take into account, given the fact that FERS Disability Retirement pays 60% of the average of one’s highest three consecutive years of service for the first year, then 40% every year thereafter.  

In a seemingly entrenched recession with an anemic recovery, the Federal or Postal worker may pause in considering filing for Federal Disability Retirement benefits. However, it is important to recognize the necessity of the present, while keeping an eye to the future in making such a decision.

Normally, it is the medical condition itself which dictates the necessity of filing for Federal Disability Retirement.  This is not an “optional” circumstance, where one may consider filing or not filing.  The only “option” (if there is one) involves whether one can continue to drudge through the pain, anxiety, panic attacks, or other medical episodes, for a few months longer, and therefore delay the initiation of the process.  But this only delays the inevitable.  

Thus, the first order of business must always be to take the time to attend to one’s health and medical condition.  

The economy will always be “what it is”, and will trudge along and recover. When that moment comes, the Federal or Postal employee who has already filed for, and obtained, Federal Disability Retirement benefits under FERS or CSRS will have the time to carefully select his or her second career path, because of the financial security of Federal Disability Retirement benefits already received.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: The Freedom of Retirement

In this tough economy, many people are rightly concerned that, upon an approval for Federal Disability Retirement under FERS or CSRS, that it will be difficult to “make up” the income with another job, even though a person under Federal Disability Retirement can earn up to 80% of what one’s former Federal or Postal position currently pays.  Yes, it can be tough; yes, the economy is a concern; but recessions ultimately come to an end, and while a job to make up the severe pay-cut may be long in coming, self-employment, to begin a start-up business, or to work part-time is often an excellent opportunity.  Unlike having the larger percentage of pay under OWCP-DOL benefits, a disability retirement annuity under FERS or CSRS is indeed a greater pay-cut.  But salary is not everything; the freedom of retirement, the ability to determine one’s future, and not be under the constant and close scrutiny of Worker’s Comp, accounts for much.  Where some see a severe pay-cut, others see as an opportunity to begin a second career.  And the price of freedom from those onerous fiefdoms of federal agencies is often better health, and greater enjoyment of one’s freedom and retirement.

Sincerely,

Robert R. McGill, Esquire

CSRS & FERS Disability Retirement: The Initial Step Is the Most Difficult

I find that the initial step in filing for Federal Disability Retirement is the most difficult step for people to take.  It is often a psychological block.  I have spoken on this issue in the past.  For a Federal or Postal worker, especially in these constrained economic times where the job market outside of the Federal Sector appears restrictive, at best, the pressure of one’s medical conditions and the impact upon one’s job, results in an anxiousness when it comes to filing for federal disability retirement under FERS or CSRS.  Certainly, it is a significant pay cut.  Certainly, it is a worry that — although one may be able to make up to 80% of what one’s (former) Federal salary currently pays — it may be that the private sector may not offer the opportunities to make up the difference in the pay cut.  Yet, the choices are often stark and untenable; for, at some point, it becomes clear that one’s medical conditions prevents one from performing the essential elements of the job. 

As such, the only and best choice is to move forward:  in fact, even in this economy, creativity will be rewarded.  Private companies actually find independent contractors who carry his or her own health insurance a plus; part-time work is offered more readily in a bad economy precisely because it allows for companies to obtain necessary work and skills without having to pay the “extra” benefits.  The initial step is the most difficult; after stepping beyond the difficulty, Federal and Postal workers who obtain disability retirement benefits find that there is a different and better future — even in this economy.

Sincerely,

Robert R. McGill, Esquire

Federal Disability Retirement & the Economy

I have been asked, via multiple emails, of my opinion concerning the right time to file for disability retirement, given the state of the current economy. I am not an economist; I am an attorney who specializes in obtaining disability retirement benefits for Federal and Postal employees under FERS & CSRS. With that prefatory caution, let me state that I am an optimist, and always see the glass as “half full” as opposed to “half empty”.

First, if a Federal or Postal employee can no longer perform the essential elements of one’s job, then it is probably time to file for disability retirement. Second, while disability retirement does not pay a great amount of money, it is a base annuity which allows one to go out and start a “second career”, and make up to 80% of what a person’s former position presently pays, on top of the disability annuity. Further, because disability retirement allows one to retain one’s health insurance benefits, such an individual can be an attractive candidate to a private employer, because of the lack of need to insure the person in the course of his/her the second career. Third, in a tough economy, part-time employment is often more available, and so it is often a good economy for individuals who have a base annuity to rely upon, and who are looking for supplemental income. In any event, one should always look at disability retirement benefits as an opportunity to preserve one’s deteriorating health, and move on to pursue other avenues of opportunities.

Sincerely,

Robert R. McGill, Esquire