CSRS & FERS Disability Retirement: OPM Disability Retirement & Postal Service Voluntary Early Retirement (VER)

For multiple reasons, early retirement — if eligible; if offered; if … — is an option which must be considered by a Federal or Postal employee.  In the coming months, Voluntary Early Retirement will be offered to Postal Employees; each year, Federal employees who become eligible for some form of early retirement must make hard financial decisions.  In light of the present state of the economy (not good), an offer of early retirement (some not so bad) may have to be considered by the Federal or Postal employee.  In each case of such an offer, the details of any such offer must be carefully reviewed and considered — especially if, concurrently, a Federal or Postal employee is considering filing for disability retirement.  A Federal or Postal employee can only collect one or the other:  you can either receive an early retirement annuity, or a disability retirement annuity, but not both.  You can, however, consider filing for early retirement (in order to continue to have some income), then file for disability retirement within one year of being separated from Federal Service. 

If you take this route of filing for early retirement, then filing for disability retirement, you must be careful.  For instance, if a lump-sum payment is part of an early retirement package, will it have to be paid back if you file for, and are approved for, disability retirement?  Further, remember that the years that you are on disability retirement counts toward your total number of years of Federal Service, when it is recalculated at age 62.  This is an important point.  The short-term benefit of retiring early may not seem like such a good idea 10 years later when inflation eats into the annuity.  A cost-benefits analysis should look to all of the factors involved:  the annuity amount and difference between disability retirement and early retirement today; the difference of the annuity when disability retirement is recalculated, and those years while on disability retirement count towards your regular retirement; and the dollar difference calculated out to the life expectancy.  These are all considerations which must be looked at carefully — not just upon one’s short-term benefit of an early retirement (which may seem great), but more than that, for the long-term security of the Federal and Postal employee.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: The Process & Time

Time is also part of the entire process of filing for Federal Disability Retirement; time factors involve multiple issues from multiple aspects and perspectives:  The Statute of Limitations of filing a Federal Disability Retirement within one (1) year of being separated from federal service; the fact that the 1-year mark begins from the date of actual separation, not from the date of disability, or the date of one’s inability to perform one’s job (although those dates may, on occasion, coincide); the fact that the medical condition must last for at least 1 year (while, at the same time, recognizing that one normally should not wait for the year to pass before filing for Federal Disability Retirement, because most doctors can provide an opinion, within reasonable medical certainty, that the medical condition impacting one’s inability to perform the essential elements of one’s job will last for at least a year, normally quite early on in the process); the time it takes for the doctor to prepare a proper medical narrative report; the time it takes for the Agency to prepare and attach to the disability retirement packets its required forms; the time it takes for Boyers, PA to process the case and assign a CSA Number to it (which begins with a “4” for CSRS employees, and an “8” for FERS employees); the time it takes to get the case assigned once it is sent down to Washington, D.C.; the time it takes, once assigned, for an Initial Approval or Denial.  And, of course, all the while, during this entire “process” of time, issues as to whether the applicant should, could, or will continue to work, either at the Agency, in some light duty capacity, or in some other job.  These are all “time/process” issues which an attorney can guide and assist a client with, in the complex “process” of filing for Federal Disability Retirement under FERS or CSRS.

Sincerely,

Robert R. McGill, Esquire