A Special Kind of Early Retirement for Federal Employees to Help in Hard Times
Update (7/16/25): Right now, the wait time between receiving your CSA letter and getting your initial decision is about 2-6 months, though each case is different and this timeframe can vary.
Federal Disability Retirement is a unique benefit for federal employees who are struggling in their job because of an illness or injury. If medical conditions keep them from reaching regular retirement age, Federal Disability Retirement can be a lifeline of support.
The Office of Personnel Management (OPM) is the agency responsible for retirement applications from the federal government. You will submit your application for Federal Disability Retirement to the OPM and they will determine whether or not you qualify.
Is it Hard to Get Federal Disability Retirement?
It can be hard to get Disability Retirement, but only if you don’t know the requirements. There are three main eligibility requirements for Federal Disability Retirement:
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- You must be a FERS career employee
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- You must have 18 months of creditable service
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- You must have a medical condition that is affecting your job performance
Any FERS employee, regardless of position, can be eligible for Federal Disability Retirement. You must have worked for at least 18 months and have shown a period of “useful and efficient service.” This means that you cannot get a job in the federal government knowing that you will be unable to perform the job solely to take advantage of Federal Disability Retirement. The OPM wants to see that at one point you were able to perform your job, and now cannot, due to your medical condition.
Your medical condition does not have to be caused by your job and it could even be a pre-existing condition, but it must be expected to last for at least one year. For example, chronic conditions like arthritis can qualify if they have worsened while working in your federal position. Disability Retirement is seen as a long-term benefit, which is why your medical condition must last for at least a year.
Many federal employees hear the word “retirement” and automatically think that they won’t qualify. However, there is no age requirement for Federal Disability Retirement, and the only service requirement is 18 months. If you have worked as a career employee for 18 months, you could qualify for Federal Disability Retirement. We have worked with clients of all ages, and while it can be difficult to decide to leave your federal job, we don’t want you to struggle for years to come.
The Benefits of Federal Disability Retirement
There are many benefits to Federal Disability Retirement, but the four main benefits are:
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- A monthly annuity payment
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- The ability to keep your health and life insurance
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- The ability to continue earning creditable years of service even though you stop working for the federal government
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- The ability to work in the private sector and earn up to 80% of your current salary
The combination of these benefits can provide security for you and your family for years to come.
Federal Disability Retirement provides a steppingstone to new job opportunities because you have the security of a monthly annuity payment. From teaching to real estate and countless other jobs in between, we’ve seen clients go on to find a new passion after being approved for disability retirement.
What Conditions Qualify for Federal Disability Retirement
A lot of conditions can qualify if you can prove that your condition is impacting your ability to perform the essential functions of your job. Remember, since Federal Disability Retirement is seen as a long-term benefit, your medical condition must be expected to last at least 12 months.
Both mental and physical conditions can qualify for Federal Disability Retirement, and many of our clients are approved with multiple medical conditions. For a detailed breakdown of qualifying conditions and the different kinds of disability, read our guide to what qualifies as a disability for Disability Retirement purposes.
Important Dates to Keep in Mind
If you’ve left your agency, there is a strict deadline to apply for Federal Disability Retirement. If you miss it, you won’t get another chance to apply. You have to submit your application within one year of separation from your federal agency, so it’s imperative to know your official separation date.
Another important deadline to be aware of: If you’ve applied and your initial application has been denied, you have only 30 days to appeal the decision. If you’re working with us, we’ll make sure you meet all your deadlines with confidence.
Medical Documentation Is Key
Medical documentation is the most important aspect of your application for Federal Disability Retirement. You must have medical documentation that supports your claim. Medical documentation can come from multiple providers, including doctors, therapists, nurse practitioners, and social workers. Having a medical professional write a supportive letter for your application is key.
The Role of Your Job Description
Federal Disability Retirement defines disability as the inability to perform at least one of the essential functions of your job. This means the OPM will want to see specific examples of those duties in your job description that you can no longer perform according to a medical professional.
Your job description can also be a helpful tool when requesting reasonable accommodation – a necessary step in the Federal Disability Retirement application process. You can provide your doctor with a copy of your position description to discuss the duties that you can and can’t perform and request accommodation from there.
The Appeal Process Is There for a Reason
If your initial application is denied, don’t worry, you have appeal options! You have 30 days from your denial to request the OPM make a new decision, submit new evidence, or request a 30-day extension.
Appealing a Federal Disability Retirement denial can be stressful, and if you are denied again, you have to appeal at the MSPB level. It is highly recommended to have legal representation at this stage to support your case.
The Impact on Social Security Disability Insurance (SSDI)
In order to apply for Federal Disability Retirement, you must apply for Social Security Disability Insurance (SSDI). You do not need to be approved for SSDI; you just need to prove that you applied. If you do get approved, there will be an offset between your Federal Disability Retirement payments and your SSDI payments. “Offset” means you won’t get the full amount of both payments simultaneously.
If you’re approved for SSDI and Federal Disability Retirement, your first year on both benefits, your Federal Disability Retirement payments will be lowered by the full amount of your SSDI payments. Every year after that, your Federal Disability Retirement payments will be reduced by 60% of your SSDI payments.
Disability Retirement Processing Time
The time it takes to process a Disability Retirement application can vary significantly depending on the OPM’s backlog. We typically estimate around 6-9 months after your application has been submitted to the OPM. At the end of Q1 of 2026 the OPM’s retirement backlog had risen to 55,681. It’s important to keep in mind that the OPM reports on all retirement processing, which means this number includes a lot of very simple regular retirement cases.
If you think Federal Disability Retirement may be the solution you’ve been looking for, it’s critical to get your application right the first time. In some cases, Federal Disability Retirement can be a benefit worth well over $1,000,000 – that’s not something to risk.
The experts at our firm know firsthand that navigating your retirement can feel like a maze. So, we’ve designed a process that turns that maze into a straight road, with clear signposts at every point. We’ve helped more than 14,000 clients apply for Federal Disability Retirement at a 99% success rate and will be with you all the way, from your first call to the day you get approved. Send us a message, text us, or give us a call at (859) 226-2723 to schedule a free consultation today to learn what your options are.
