OPM FERS/CSRS Disability Retirement: Part-time Work

Federal and Postal employees who are contemplating filing for Federal Disability Retirement benefits through the U.S. Office of Personnel Management, whether under FERS or CSRS, face a formidable task both in terms of legal hurdles and administrative, bureaucratic glitches — not the least of which is in facing the daily battle with the medical condition itself.

Aside from requesting an accommodation from the agency, then being granted some cosmetic work refinements which probably do not constitute a legally viable (or even practically defensible) responsiveness; or of being offered an alternative part-time position which, if taken, will have dire calculation consequences in determining the average of one’s highest-3 consecutive years of service for annuity computation purposes; or more to the point — remaining in the full-time position but working only part-time and taking LWOP the remainder of the time, such decisions can be pragmatic ones which may be arrived at by the Federal Disability Retirement applicant as merely a choice which cannot be avoided, but one which should be embraced with full knowledge of the consequences.

For example, the problem with working one day a week is that such work constitutes only 20% of pay for the Federal or Postal employee who has filed for Federal Disability Retirement benefits.  Yet, at the time of an approval of a Federal Disability Retirement application by the U.S. Office of Personnel Management, OPM will pay back-pay for the first year of annuity, at 60%.  But if one has been working part-time during the entire process, no back-pay will be forthcoming precisely because such back-pay is paid only to the “last day of pay” — which would have been the previous week for that part-timer.

Further, the difference between what was part-time work-paid (20%) and what Federal Disability Retirement back-pay will give (60% for the first year) is one of 40% lost forever.

In practical terms, it may well be that working part-time throughout the Federal Disability Retirement process and the long bureaucratic wait was a necessity which could not be avoided; but it is nevertheless something which should be done with full disclosure and knowledge, so that there are no surprises in the end.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: The Meaning of Separation from Service

The 1-year rule, or more properly, the Statute of Limitations, continues to be confused at various levels.  The beginning point in understanding the rule must always be to first clarify what constitutes the trigger-point; for, if one does not know what represents the first day of the year, how can one calculate the remaining 364 days?

First, in negative form:  Being on LWOP, Sick Leave, or any time of leave, does not constitute a separation from service.  Indeed, logically, if one reflects upon it for a moment, the very fact that one is on some type of leave would imply that one is on leave “from” an agency, thereby inferring that no separation from service has yet occurred.  Thus, separation from Federal Service is an event which occurs when a Federal or Postal employee affirmatively resigns; is issued a termination or separation letter; or is issued a personnel action on an SF Form 50 or PS Form 50, showing that Federal or Postal employment has been terminated.

For Postal employees, if you continue to receive a “0”-balance pay stub, it likely means that you have not yet been separated.

Obviously, for Federal Disability Retirement purposes, whether under FERS or CSRS, knowing whether or not you are separated from Federal Service is important, because the Office of Personnel Management will not make a determination on the substantive basis of a Federal Disability Retirement application if it has been filed in an untimely manner (i.e., after a year has passed from the date of separation).

Then, of course, there is also the “other” 1-year rule, of showing that one’s medical condition will last for a minimum of 12 months.  But let us not get ahead of ourselves and confuse and conflate the two.

Sincerely,

Robert R. McGill, Esquire

CSRS & FERS Medical Disability Retirement: LWOP & Back Pay

In obtaining a Federal Disability Retirement benefit under FERS or CSRS, once an approval is obtained from the Office of Personnel Management, back pay is supposed to go back to the “last day of pay” that the Federal or Postal employee received from the Agency.  Thus, when a Federal or Postal employee files for FERS Disability Retirement benefits (or the same benefits under CSRS, which is become rarer by the minute), one must plan in order to accrue and obtain the maximum benefits possible.

Should one accept donated leave?  Should one exhaust the large cache of sick leave accrued? Should one go on LWOP part of the time, and take sick leave part of the time?  These are all issues which should be planned for, and if one does not know what the rules, regulations and statutes are governing such issues, one can literally lose out on critical back pay benefits.

For example, since back pay will be paid at the initial year’s 60% rate (60% for the first year in Federal Disability Retirement benefits; 40% every year thereafter), if an individual is receiving donated leave on average, about 15 – 20 hours per week (which constitutes 50% or less), wouldn’t it be wiser to stay on LWOP throughout the process?

On the other hand, pragmatic economic considerations must always temper such decisions.  If a Federal or Postal employee needs the income, even at 50% or less, then such considerations must be taken into account.  Regardless, one should prepare, and go forward with open eyes.

Sincerely,

Robert R. McGill, Esquire