Q: I am under FERS, and I am considering applying for disability due to bypass heart surgery. I am also retired from the active Air Force (20 years and collecting a pension). I’ve studied chapters 61 and 62 “Computation of Disability Retirement,” and under the General Rule it indicates active-duty military retirees are not eligible for the guaranteed minimum disability annuity compensation. Based on an answer you provided to a person in similar circumstances, this apparently does not apply to FERS. If that is true, then I have a question about computation for me if I stay to age 60 and have 20 years federal civilian service. Since I will be eligible for an annuity at age 60 with 20 years, and I apply after that date for disability retirement, will my retirement be re-computed at age 62 at the 1.1 percent per year rate?
A: You are correct about the guaranteed minimum annuity provision. It doesn’t apply to FERS employees. On the other hand, if you retire on disability, your annuity will not be re-computed using the higher multiplier when you reach age 62. Only those who have at least 20 years of service and retire on an immediate annuity at age 62 or later are eligible for that.