Q. If I apply for CSRS medical disability retirement, what is the difference vs. a regular retirement? Would I be taxed at the same rate?
A. The annuity you’d be paid is the higher of your earned annuity or the guaranteed minimum disability annuity, which is the lower of 40 percent of your high-3 or the earned annuity you’d get if your length of service was extended to age 60 or older when you retire. If you have 22 or more years of service or retire at age 60 or older, your disability annuity would be the same as your earned annuity. There is no difference in the tzx rate. Both are treated as regular income.
