FERS Disability Retirees
FERS Disability Retiree Benefit Changes
If you retired on a disability under FERS before age 62, your benefit will
be recomputed.
If you were under age 62 when your disability benefit began, and were not eligible
for a voluntary immediate benefit, your benefit will be recomputed:
- After you have been retired for 12 months, and
- When you reach age 62.
After You Have Been Retired for 12 months
After you have been retired for 12 months, your annuity will be recomputed
at 40 percent of your high-3 average salary minus 60 percent of your monthly
Social Security benefit for any month in which you are entitled to social security
disability benefits. However, you are entitled to your earned annuity
(1% of your “high-3” average salary multiplied by your years and
months of service), if it is larger than your disability annuity computed at
40%.
When You Reach Age 62
Your annuity will be recomputed using an amount that essentially represents
the annuity you would have received if you had continued working until the day
before your 62nd birthday and then retired under FERS non-disability provisions.
The total service used in the computation will be increased by the amount
of time you have received a disability annuity. The average salary
will be increased by all FERS cost-of-living increases which occurred during
the time you received a disability annuity (even if the adjustment did not affect
your annuity). The FERS basic annuity formula (1% of your “high-3”
average salary multiplied by your total years and months of service) is then
applied, using the adjusted time base and average salary. If your actual
service plus the credit for time as a disability retiree equals 20 or more years,
the formula would be 1.1% of your “high-3” average salary multiplied
by the total of your years and months of service, using the adjusted time base
and average salary.
Your basic annuity will be reduced to provide survivor annuity benefits if
you are married (unless you and your spouse jointly waive the survivor benefit)
or if you are required by a qualifying court order to provide benefits for a
former spouse.