Disability retirement and taxes


Q. I retired in 2004 from the Postal Service on a CSRS disability. I had 28 years total service (paid back military time) and am 100 percent disabled through the Veterans Affairs Department (combat-related). At the time of separation, my personal office told me after age 62 (August 2011), I would no longer have to pay taxes. Is that true?

A. There isn’t any tax advantage to being retired on CSRS or FERS disability unless you are totally disabled for all gainful employment. Since the Office of Personnel Management can’t make that determination, you’ll have to check with your local Internal Revenue Service office or www.irs.gov.


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.

Leave A Reply