FERS disability retirement at age 62

5

Q. I had to retire from FERS on disability with 26 years and 9 months at the age of 53. The first year I got around $2,650 monthly from OPM. A year later I did get my Social Security at $1,788 per month and $1,195 monthly from OPM . Could you tell me what I will get at age 62? My average high 3 years were $59,755.00. Minimum retirement age was 56. Could you break this down for me?

A. I can’t tell you what the breakdown will be. I can give you the formula used. Here it is. During the first 12 months as a FERS disability retiree, you would receive 60 percent of your high-3 minus 100 percent of any Social Security disability benefit. After the first 12 months, you’d receive 40 percent of your high-3, minus 60 percent of any Social Security disability benefit. When you reach age 62, your FERS disability benefit will be recalculated as if you had actually worked to age 62. To do that, time spent on the annuity roll is added to your actual service. Your new annuity is calculated as follows:
0.01 x your high-3 at the onset of your disability increased by all FERS cost-of-living increases paid to you from that point to age 62 x your total service time (actual and disability).

Share.

About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

5 Comments

  1. Hello,
    I can’t seem to find formation regarding if you are on disability and you turn 62 can you convert from social security disability to early retirement .
    Thank you,
    Annette Goodine

  2. Hello Reg,
    I may soon apply for FERS disability and I am younger than 62. However when I turn 62 as you have explained a new calculation occurs and I am transferred from federal disability to regular FERS retirement. What happens to the Social Security disability part of the equation? Is my FERS regular retirement at age 62 offset in anyway by my Social Security disability check? Does my social security disability check remain unaffected no matter what my age?

      • I just turned 62 in March. I received a letter from OPM showing that my annuity will be $101.00 less a month…. Why is this and how do they calculate it? Also, will my annuity go down every year until I’m 65?

Reply To Reg Jones Cancel Reply