Severance pay and disability retirement


Q. I was removed from the Postal Service for nonperformance four months ago after a reassignment due to a reduction in force and 24 years of service. I had also applied for disability retirement after being assigned to that job and was just waiting for approval. A package for severance pay was offered to those of us affected by the RIF if termination was necessary. My disability application was recently approved, and I’m so relieved. What about that four months of agony, though? I was really depressed and wondering if that was how my career would end. I really wanted that reassignment to work out or I never would have settled for that job, and I would have taken the severance deal. Will that severance pay be calculated into my annuity by the Office of Personnel Management? It’s not my fault that health conditions would not allow me to do the reassignment.

A. No, that severance pay won’t be calculated into your disability retirement annuity. However, if your disability retirement date is set within the time frame where you were receiving severance pay, you may be required to pay that money back.


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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

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