Getting hurt on the job can be a life-altering experience, especially for federal employees working in physically demanding and high-risk positions.
Maybe you’re:
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- A USPS rural carrier on long routes
- A VA nurse handling unpredictable patient care
- An air traffic controller dealing with high-stress decisions
- A federal firefighter facing hazardous conditions
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In these positions and countless others, the risks to your health are real.
Fortunately, federal employees have access to three important benefit programs designed to keep you afloat when you can’t do your job:
- Office of Workers’ Compensation Programs (OWCP): Provides financial help and medical care for federal workers injured on the job.
- Social Security Disability Insurance (SSDI): Offers long-term income for people unable to work due to a disability.
- Federal Disability Retirement: A unique program just for federal employees unable to perform at least one part of their job.
Each of these benefits serves a unique role, but when used together, they can give you a safety net for your present and future. Let’s walk through what it would look like for a real federal employee like you.
Jeremy: Turning a Setback into Stability
Jeremy, a 52-year-old VA Nurse making $70,000 a year, tore his rotator cuff while helping move a patient.
The three different federal programs mentioned above gave him both immediate and long-term financial support. Here’s what happened:
Step 1: OWCP Offered Immediate Help
What Jeremy did: He reported and qualified for OWCP benefits since his injury happened at work and was caused by his job duties.
What he got:
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- OWCP wage loss payments at 66% of his salary, totaling $46,200 a year
- His medical expenses covered while he was out of work
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Step 2: Planning for Long-Term Security
After a year, Jeremy’s Wage Loss ended.
At this point, he knew his shoulder was not going to improve and he wouldn’t be able to go back to his job.
He knew he needed to find a long-term option, so Jeremy applied for:
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- Federal Disability Retirement
- Social Security Disability Insurance
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Step 3: Combining Federal Benefits
Jeremy was approved for both benefits, which worked together to give him long-term security.
Because he qualified for both, the programs coordinated to make sure he got the appropriate support. Here’s what happened:
Year 1 on the Benefits: A Higher FDR Payment
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- In the first year, Jeremy’s FDR payment was calculated by taking 60% of his high-3 average salary. His high-3 (the average of his highest salary over any three years of federal service) was $68,000, so:
- FDR annual amount: 60% of $68,000 = $40,800
- FDR monthly amount: $40,800 / 12 = $3,400 per month
- However, because Jeremy was also getting SSDI payments (about $1,780 per month), his FDR payment was adjusted. The programs coordinated to avoid overpayment. Here’s how it worked:
- FDR portion: $3,400 – $1,780 = $1,620 per month
- Combined income: FDR ($1,620) + SSDI ($1,780) = $3,400 per month total
- This means that in Year 1, Jeremy’s total income remained $3,400 per month. Part of it came from FDR and part came from SSDI.
- In the first year, Jeremy’s FDR payment was calculated by taking 60% of his high-3 average salary. His high-3 (the average of his highest salary over any three years of federal service) was $68,000, so:
Year 2 and Beyond: A Lower FDR Payment
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- Starting in the second year, FDR benefits drop to 40% of the high-3. For Jeremy:
- FDR annual amount: 40% of $68,000 = $27,200
- FDR monthly amount: $27,200 / 12 = $2,267 per month
- Because Jeremy continued getting SSDI payments ($1,780 per month), his FDR payment was adjusted again:
- FDR portion: $2,267 – $1,780 = $487 per month
- Combined income: FDR ($487) + SSDI ($1,780) = $2,267 per month total
- In Year 2 and beyond, Jeremy’s total monthly income was $2,267. Again, the total amount was equal to the percentage of the high-3 he was owed but the money came from two different places.
- Starting in the second year, FDR benefits drop to 40% of the high-3. For Jeremy:
The math can seem complicated, but here’s the important takeaway:
At the end of the day, Jeremy was paid the amount that came from his high-3 calculation (60% of his high-3 the first year, 40% years two and beyond). The money just came from two different places.
Secure Your Future Today
Navigating disability benefits can be complicated, but understanding how OWCP, SSDI, and Federal Disability Retirement work together could be a lifeline for you or someone you love.
Each of these programs offers unique advantages, from short-term wage loss and medical coverage through OWCP, to long-term financial security with Federal Disability Retirement.
Our experienced team specializes in assisting federal workers with their Federal Disability Retirement applications, and we understand how complex these benefits can be. We’ve helped more than 10,000 federal employees secure their futures with:
- A 99% success rate
- A money-back promise if we take your case and aren’t successful
If you think you might qualify for Federal Disability Retirement — even if you aren’t sure — reach out to us today to schedule a free consultation. You’ve spent your career serving others. Now it’s time to let us serve you.
