How FERS Disability Benefits Are Figured Up

June 21, 2019

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]How are disability benefits determined for FERS employees?

Here’s a look at the annuity calculation if you have yet to turn 62:

If ineligible for voluntary retire before age 62, the disability annuity is determined like this:

-For the first year, you’ll receive 60 percent of your three highest income but will receive none of your Social Security disability benefits.

-After the first year, you’ll get 40 percent of the highest three income and only get 40 percent of the Social Security disability benefit you are eligible for.

For employees with less than three years of qualifying service, the annuity is based on the salary average from the day you began the service until you no longer worked and were eligible for disability retirement.

If considered eligible for the immediate annuity at the time of your disability retirement, the OPM treats the application as a retirement request for regular annuity and will process it as such.

Here’s a look at the annuity calculation for age 62:

If retirement based on disability happens before age 62, but you reach the age, the disability benefit is recalculated as if you worked until that age. The time on disability is added to the earned service, and the amount is then multiplied by 0.01 percent unless you have worked for 20 years (time on disability is included) and you are 62 years old. If this is deemed the case, the multiple rises to 0.011. The total calculation for it is based on two things:

Multiplied by the three high income on the day you were put on disability retirement

Rise of all FERS COLAs paid between the date of disability retirement and when you turned 62.

Social Security Disability Insurance

Since FERS employees get coverage by Social Security, you will have to apply for both the FERS disability benefits and Social Security Disability Insurance. Without it, the OPM will not process the application.

A Look at COLAs

You can get annual cost-of-living adjustments (known as COLAs) no matter what age of the disability retirement but you will not get any special retirement supplement, which provides you with an approximate amount of the Social Security benefit earned while you were a FERS employee.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36130″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]