Federal Disability Retirement (FERS)
Federal Disability Retirement (FDR) Benefits
You may need to take advantage of the FDR benefits for which you have been making contributions from your salary during your tenure as a federal employee.
But you likely have questions about exactly how comprehensive your FDR benefits will be.
We have put together this brief guide to understanding your Federal Disability Retirement benefits, but invite you contact us with any questions or to schedule a FREE consultation.
Where do Federal Disability Benefits come from?
The Federal Employees Retirement System (FERS) pays disability benefits to federal employees who become disabled after completing at least 18 months of creditable federal civilian service.
Do I only need to apply to FERS?
Qualified federal employees who apply for disability benefits under FERS must also apply for Social Security Disability Insurance (SSDI) benefits, or show that they are not eligible for SSDI.
How will my Federal Disability benefits be calculated?
Retirement benefits under FERS are based, at least in part on, the “high-three” years’ average salary. High-three average salary is the highest average annual pay you received during any three consecutive years of service, including shift rates, night shift differential and within- grade increases. It does not include payments for overtime, bonuses, etc.
If you are covered under FERS, you will receive 60% of the figure you just calculated for your “high-three” for the first year of disability, and 40% of that figure for each year thereafter until age 62, at which time you will automatically be transferred over to your FERS regular retirement benefit.
The amount you receive is coordinated with any social security disability benefits you are awarded. For the first year, when you receive 60% of your high three, there is an offset of 100% of any SSDI benefits you receive. Thereafter, your FERS annuity is only reduced by 60% of any SSDI benefit you receive. If you do not win SSD, then there will be no reduction or offset for the SSD benefit.
OPM will begin payment of a FERS disability retirement annuity once is has approved the application, received a copy of a receipt of application for SSDI benefits and proof from the Agency that the applicant has been separated.
Although your payments cannot start until your official separation from your position, it will be retroactive to the last day in pay status (LDIP). Thus, the annuity will retroactively cover any final period of leave without pay. The LDIP includes pay for work or leave, including sick leave, annual leave, administrative leave, donated leave or any other paid leave. Back benefits can be substantial for workers who have been on leave without pay (LWOP) for a significant period of time prior to their application for disability retirement being approved.