FERS and Social Security Disability

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Q. If someone retired on both a FERS disability retirement, as well as a disability retirement from Social Security — and then has the SSA (after 17 years) stop his benefits by claiming that he was now able to return to gainful employment — would that person then have his monthly FERS benefit increase? The person in question was receiving about $1,700 monthly from the SSA and $700 monthly from FERS. If his monthly FERS benefit would now increase — could you give me an idea by approximately how much?

A. While I cannot give you a dollar amount, I can give you the rule that will allow you to figure it out. After the first 12 months as a disability annuitant, he is entitled to receive 40 percent of his high-3 minus 60 percent of an Social Security disability benefit. Since he will no longer have a Social Security benefit, his FERS annuity will be 40 percent of his high-3.

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

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