Q. My husband was retired from active military at 100 percent disability for a line of duty illness. He also has a FERS pension that is currently at 60 percent the first year and 40 percent for all the rest. They required him to file for Social Security disability, which he was denied. We have received notice from FERS asking him to re-apply for Social Security disability. I’m sure this will affect his FERS pension, however I have been unable to get an answer as to how.
A. Here’s the FERS formula.
For the first 12 months: 60 percent of his high-3 minus 100 percent of any SSDI
After the first 12 months and up to age 62, 40 percent of his high-3 minus 60 percent of any SSDI
At age 62, his FERS disability annuity would be converted to a regular annuity and he would continue to receive it and SSDI.
2 Comments
So being denied SSDI means none was received. Why do they take the 60%
The formula in law requires that for the first 12 months a FERS disability annuitant receive 60 percent of his or her high-3 minus 100 percent of any Social Security disability benefit, and from that point forward to age 62, 40 percent of the high-3 minus 60 percent of any Social Security disability benefit. If no Social Security disability benefit is due, the disability annuitant would receive 60 percent of the high-3 for the first 12 months and 40 percent thereafter. That benefit would be increased by COLAs. At age 62, the disability annuity would be converted to a regular annuity (using the 1.1 percent multiplier) and increased by any cost-of-living increases.