Q. I retired with a disability CSRS retirement at age 52 with 33.3 years of service. I was on workers’ compensation for a bit, switched to a disability retirement and went back to school and started a new career. At age 56, I became earnings restored and was sent paperwork to apply for an immediate retirement. I did and my gross monthly annuity was reduced by $150 per month. The only answer I can get from the Office of Personnel Management is that they are calculated differently. Am I being penalized for retiring early on disability? Should it be calculated with 33.3 years at age 55?
A. What OPM told you is true. Because you were a disability annuitant who was found restored to earning capacity and entitled to an immediate annuity, your new annuity was computed based on the same average salary used in computing your disability annuity with no adjustment for increases in the cost of living for the period after you originally retired on disability. As a result, the amount you receive wouldn’t be the same.