FERS & CSRS Disability Retirement for Federal and USPS Workers: OWCP Dilemma

Benefits received through FECA (Federal Employees’ Compensation Act), administered through the Department of Labor and otherwise known under the acronym of OWCP, provide for temporary total disability compensation during the time that a Federal or Postal employee is injured and is unable to go back to one’s former job.

It pays well.  The problem, often, however, is that it pays well enough just to maintain a person to prevent him or her from drowning.  This dilemma is highlighted by the fact that a Federal or Postal employee who is receiving OWCP benefits (scheduled awards excepted) is unable to work at a job (with some exceptions regarding a person who had already been employed at a second job when injured at his primary vocation) or receive additional earned income.

Federal Disability Retirement benefits, on the other hand, whether under FERS or CSRS, allows for earned income up to 80% of what one’s former position currently pays.

While the Federal or Postal worker is allowed to concurrently file for, and get approved, both Federal OWCP benefits as well as FERS or CSRS Disability Retirement benefits, if both are approved, you must choose between one or the other approved benefit, and allow the unchosen one to remain inactive.

While FERS & CSRS Disability Retirement benefits, filed and obtained through the U.S. Office of Personnel Management, pays less than OWCP benefits, it is the added advantage of being able to work at another vocation which makes it more attractive.

It is like the difference between a shipwrecked victim who can hang onto a small floating device as opposed to a raft with oars; while the former allows for survival, it is the latter which will ultimately take one to the destination of final fruition.

Sincerely,

Robert R. McGill, Esquire

Federal and Postal Disability Retirement: It Is a Retirement

Federal Disability Retirement is a retirement; it is not a temporary method of compensation, and unlike OWCP under the Federal Employee’s Compensation Act (FECA), one is actually separated from Federal Service shortly after receiving an approval from the Office of Personnel Management.

Once the Federal or Postal employee obtains a Federal Disability Retirement approval, there is no “turning back” for employment or position rights; one does not have a preemptive or superior right to go back to one’s agency, anymore than a person who applies for a Federal or Postal job as a new hire.

That is why, as part of the administrative process and requirement in the filing of Standard Forms, one must include SF 3107 (for FERS disability retirement applicants) or SF 2801 (for CSRS disability retirement applicants) — the “Immediate Application for Retirement”, where much personal information is requested, including information on one’s spouse, data on health insurance, life insurance, past military service, etc.

While it is true that the Federal Disability Retirement annuity becomes recalculated and re-characterized as “regular retirement” at age 62, based upon the number of years of total Federal Service — including those years on Federal Disability Retirement (which is why switching from OWCP to OPM Disability Retirement can be beneficial in the long run, as opposed to the lesser monetary amount for the short term) — it is nevertheless a retirement in every sense of the word:  one is separated from Federal Service; one receives an annuity; there is no future expectation of rehabilitation and return to work, etc.

It is not a short-term process of rehabilitation and compensation, and therefore when the Federal or Postal employee begins to prepare, formulate, and file for Federal Disability Retirement benefits from the U.S. Office of Personnel Management, whether under FERS or CSRS, one should be fully aware that in the very term, “Federal Disability Retirement”, it is a compensatory benefit based upon three (3) factors:  It is for Federal/Postal employees; it is based upon a medical condition or disability; and it is a retirement.  As the age-old adage goes:  If it walks and acts like a duck, then it must be one.

Sincerely,

Robert R. McGill, Esquire

FERS & CSRS Disability Retirement for Federal and USPS Workers: The "Lost Cause" Case

Often, an approval for a Federal Disability Retirement case will come in the mail, and the client will state, “I never thought I would see it approved.”  It is the job of an attorney who specializes in any area of law, to win the case.  In representing Federal and Postal employees to obtain Federal Disability Retirement benefits under FERS or CSRS, the ultimate “win” is to get the approval from the Office of Personnel Management. 

Some cases are harder to get approved than others; then, there are the “Lost Cause” cases — ones which, for one reason or another, seem to encounter greater obstacles:  from agencies which attempt to undermine the Federal Disability Retirement application, to adverse termination proceedings prior to the filing of a Federal Disability Retirement application; to insufficient medical documentation; and multiple other reasons, there are cases which appear to be lost causes.  Yet, so long as there is another stage of appeal, and so long as there is sufficient merit to a case, one should never give up.  Lost causes are especially triumphant moments for the attorney representing a disabled Federal employee.  For an OPM Disability Retirement case, it is especially sweet to obtain that letter of approval from the Office of Personnel Management, for that case which the client himself/herself believed as a “lost cause”.

Sincerely,

Robert R. McGill, Esquire

Medical Retirement Benefits for Federal & Postal Employees: OPM’s Arsenal

The names have been changed to protect the innocent.  Or, perhaps those who are impliedly involved herein are not so innocent after all.  Nevertheless, the names must be changed to protect confidentiality of sources, etc.  Every now and then, the Office of Personnel Management discloses their arsenal of weapons.  For instance, such an arsenal might be that a denial of a Federal Disability Retirement application was based upon a review by a retired contract doctor.  Now, let us analyze such an arsenal.  First, the term “retired” reveals an interesting concept.  It means that the individual no longer sees hundreds of patients on a daily basis, nor is actively practicing medicine.  Next, on a superficial level, we take the word “contract” — meaning thereby that the individual is paid to review the paper submissions — not to examine the applicant who is filing for Federal Disability Retirement benefits.  And, finally, the concept of a “doctor” — let us be certain as to the two preceding words, “retired” and “contract”, and that is the extent which one needs to understand in accepting the definition of the word “doctor”.  As opposed to:  the treating doctor of an applicant for Federal Disability Retirement.  Who would you choose to treat you?

Sincerely,

Robert R. McGill, Esquire

Medical Retirement Benefits for Federal & Postal Employees: Reminder (Continuing…)

So, how does one determine whether or not it is prudent to go out on LWOP completely, while awaiting for the decision on one’s application for Federal Disability Retirement benefits under FERS or CSRS?  Obviously, the initial criteria to be applied is whether or not you can afford to go out on LWOP.  Economic necessity (aside from considerations of one’s health and medical ability/inability to go to work during the long, drawn-out process) becomes a primary consideration.  If economic necessity dictates continuation of work, then the next question is, would your Agency consider allowing you to work 3 – 4 days a week, and allowing for 1 or 2 days to be taken off with LWOP?  This might be a prudent approach, since any back-pay for the first year, once your Federal Disability Retirement application is approved and payments start, will be paid at 60% of the average of one’s highest three consecutive years.  Thus, mathematically, it would make sense:  a minimum of 3 days of work quantifies to 60% or more, and so you would not be losing anything.  However, if your weekly average falls below the 60%, then you might want to consider going out on LWOP completely (again, only if your personal finances will allow for such).

Sincerely,

Robert R. McGill, Esquire