What is Federal Disability Retirement?
Federal Disability Retirement is a special kind of early retirement that helps federal employees who can’t work anymore because of a disability. If you’ve been a federal employee for more than 18 months and have a disability that’s likely to last longer than a year, you could be eligible. If you’re approved, you’ll receive a steady monthly payment, you can continue with your federal insurance, and you can even get a new job in the private sector.
Read our Simple Overview of Federal Disability Retirement to learn the basics.
Quick Links
- What is Federal Disability Retirement?
- Federal Disability Retirement Eligibility
- Qualifying Conditions
- Apply for Federal Disability Retirement
- Typical Timelines
- Handling Denials and Appeals
- FDR and Other Benefits: OWCP, SSDI, VA
What is Federal Disability Retirement?
Federal Disability Retirement is a special kind of early retirement that helps federal employees who can’t work anymore because of a disability. If you’ve been a federal employee for more than 18 months and have a disability that’s likely to last longer than a year, you could be eligible. If you’re approved, you’ll receive a steady monthly payment, you can continue with your federal insurance, and you can even get a new job in the private sector.
Read our Simple Overview of Federal Disability Retirement to learn the basics.
How to Know if You’re Eligible for Federal Disability Retirement
To be eligible for Federal Disability Retirement, you need to have worked under the Federal Employee Retirement System (FERS) for at least 18 months and have a medical issue – physical or mental – that keeps you from doing at least one key part of your job. The qualifications are the same for almost all federal employees, but federal police officers, firefighters, and air traffic controllers have their own specific rules.
Read our eligibility guide for Federal Disability Retirement in 2024 to see if Disability Retirement is right for you.
Conditions that Qualify for Federal Disability Retirement
Federal Disability Retirement doesn’t have a specific list of qualifying medical conditions; instead, eligibility is based on how your condition, whether physical or mental, affects your ability to perform your job duties. Mental health issues are regarded with the same level of seriousness as physical disabilities; the focus is more on the impact of your condition at work rather than the condition itself.
Read more about qualifying conditions for Federal Disability Retirement and reach out for a free consultation to see if your situation qualifies.
Federal Disability Retirement Benefits
If you’re approved for Federal Disability Retirement, you’ll receive monthly payments based on your years of service and the highest average salary over any three consecutive years of your career. Additionally, you can keep your health and life insurance and work in the private sector to supplement your income. Your family may also be eligible for benefits, like a survivor annuity, which offers them financial help if you pass away.
Read more about this comprehensive system of benefits that covers your financial, health, and employment needs, and provides a secure foundation if you face an injury or illness.
How to Apply for Federal Disability Retirement
Applying for Federal Disability Retirement involves notifying your agency, completing necessary forms, and gathering extensive medical documentation to show your disability’s impact on your job. The application has to be meticulously prepared and then submitted to the Office of Personnel Management (OPM) by your agency. Attention to detail is critical when you’re preparing an application, because errors can significantly delay the process.
Learn what the ideal Federal Disability Retirement application looks like with our simple overview.
Typical Federal Disability Retirement Timelines
The Federal Disability Retirement process varies in length because the OPM doesn’t have a strict deadline for processing Federal Disability Retirement applications. Generally, it takes about 9-12 months to receive an initial decision. If approved, you’ll start receiving interim payments 4-6 months later, which are about 80% of the expected annuity. However, denials can extend the process, and factors like application timing, agency backlogs, and the accuracy of your submission can influence the processing time.
Learn more about what to expect when it comes to processing times for a Federal Disability Retirement application, and reach out for a free consultation today. We’re ready to help you make sure your application process is as smooth as possible.
Handling Federal Disability Retirement Denials and Appeals
If your application for Federal Disability Retirement is denied, don’t lose hope; you have the right to make an appeal. You can request a reconsideration from the OPM to correct errors, add documents, or provide more evidence. This process typically takes about 4-6 months. If rejected again, you can appeal to the Merit Systems Protection Board (MSPB) and can further escalate to the full MSPB panel in Washington, D.C., and even the U.S. Court of Appeals if necessary. When making an appeal, timelines are crucial to your success.
Read through our detailed guide on what to do if your application is denied or call us for a free consultation to find out what your next steps should be.
FDR and Other Benefits: OWCP, SSDI, VA
When handling disability benefits, it’s important to know how different programs work together. The Office of Workers’ Compensation (OWCP) won’t allow you to get Wage Loss payments and Federal Disability Retirement simultaneously, but you can get an OWCP Schedule Award or Medical Payment with your Disability Retirement. Generally, people approved for OWCP Wage Loss pause their Disability Retirement since Wage Loss payments tend to be higher. You can get both Social Security Disability Insurance (SSDI) and FDR at the same time, but your Disability Retirement payments will be reduced. Veterans Affairs Disability (VAD) benefits can be received alongside Federal Disability Retirement without impact.
Learn more with our guide on navigating Federal Disability Retirement interactions and how to maximize your benefits.