Navigating Disability Retirement in the Federal System: Understanding the Essentials
Disability retirement under the Federal Employees Retirement System (FERS) has specific eligibility requirements. An employee must have completed at least 18 months of Federal civilian service creditable under FERS, become disabled for efficient service in their current position, and the disability must be expected to last at least one year. Additionally, the agency must certify that it cannot accommodate the disabling medical condition. Importantly, an application for Social Security disability benefits is required for FERS disability retirement.
According to the Office of Personnel Management (OPM), the eligibility requirements for disability retirement are as follows:
- Service Requirement: The individual must have completed at least 18 months of Federal civilian service creditable under the Federal Employees Retirement System (FERS).
- Disability Condition: The employee must have become disabled, due to disease or injury, for useful and efficient service in their current position.
- Duration of Disability: The disability must be expected to last at least one year.
- Accommodation and Reassignment: The employing agency must certify that it cannot accommodate the employee’s disabling medical condition in the current position and that it has considered the employee for any vacant position within the same agency, grade or pay level, and commuting area for which the employee is qualified.
- Application Timeliness: The application for disability retirement must be submitted before the employee’s separation from service or within one year thereafter.
- Social Security Requirement: An application for Social Security disability benefits is required for FERS disability retirement. If the Social Security application is withdrawn, OPM will dismiss the FERS disability retirement application upon notification by the Social Security Administration
Applying for Disability Retirement as a FERS Employee
To apply for disability retirement as a federal employee, the following steps should be taken:
- Documentation of Medical Condition: Provide your employing agency with complete documentation of your medical condition.
- Attempted Reasonable Accommodation: Ensure your agency has made all reasonable attempts to accommodate your condition or consider reassignment where you can still provide useful and efficient service.
- Application Submission: Apply for disability retirement through the Office of Personnel Management (OPM) or your employing agency. This should be done before your separation from service or within one year after separation.
- Social Security Application: You must also apply for Social Security disability benefits as part of the process.
- Agency Certification: Your agency must certify that it cannot accommodate your disability and has considered you for any vacant position for which you are qualified.
Remember, each case is unique, so it’s important to consult with HR specialists or advisors familiar with federal disability retirement to ensure all specific requirements and procedures are correctly followed.
Scheduling a Call with Financial Advisors
Deciding to apply for disability retirement is a significant step with long-term implications. For personalized advice, especially regarding complex situations, it’s crucial to consult with a financial advisor familiar with federal retirement systems. At Plan Your Federal Retirement, we can guide you through the process and help you understand how disability retirement will affect your overall retirement plan. Visit our website to schedule a consultation for expert advice tailored to your unique circumstances.