Disability retirement

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Q. I am a GS-1811 with just over 16 years of federal service. I was grandfathered into federal service at 42 and will have to retire at 62 (I am 59). Additionally, I have bought back 12 years of Army active-duty time. My Agency has proposed my removal for performance reasons, which I can directly attribute to my worsening Adult ADD. They are leaning toward an involuntary disability retirement vice removal. If I am disability retired, will my 12 years of bought-back Army time be included in the annuity calculation? Will it also be included in the subsequent calculation when my disability retirement is converted to a regular retirement at age 62?
A. None of your service time – actual or active duty – will be used in determining your FERS disability benefit. That’s because that benefit is based on a simple formula:
– for the first 12 months, 60 percent of your high-3, minus 100 percent of any Social Security disability benefit
– after the first 12 months and up to age 62, 40 percent of your high-3, minus 60 percent of any Social Security disability benefit
At age 62, your disability annuity would be converted to a regular annuity using the following formula:
.01 x your high-3 on the day you went on disability retirement x all years of service (actual, time on the disability roll, and active duty service for which you made a deposit). That figure would then be increased by any cost-of-living adjustments payable from the time you retired to age 62.

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About Author

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

2 Comments

  1. I had a motor vehicle accident on duty in Feb. 2016. I was off for 3-4 months. Due to the mild brain injury involved, I have been unable to improve to the required performance level and my supervisor suggested that I retire Thursday. My supervisors perception is accurate and I was given a generous opportunity to improve. I am 64, so I know there it will be a regular annuity. I only have 22-23 years in FERS and that is the only Social Security time I have as well. I had planned to work into my seventies as most of the women in my family have the health to do. I am lost, as with the brain injury, I had not put it together that I should have been preparing for an early retirement. Is there anything that being injured on the job will contribute? Thank you for your response.

    • Since you read the answer to a previous questioner, I hope you have applied for disability retirement. The benefits would be far grater than if you were separated and took discontinued service retirement.

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