Can I Work Once I Am Approved For Federal Disability Retirement?

by | Mar 6, 2013

Last Updated November 6, 2023
Disabled federal employee changing work to private sector

Many federal employees get stuck with this question: Can I work once I am approved for federal disability retirement?

Federal Disability Retirement is an essential benefit, but it is certainly less than the employee is used to earning. However, this shouldn’t discourage employees from pursuing the benefit, especially if their options at work are running out. In many cases, Federal Disability Retirement serves as the best way to carry forward an employee’s hard earned benefits continuing in their current job becomes untenable due to medical conditions.

The Bright Side: Opportunities to Work the Private Sector

Here’s the good news: Any federal employee approved for Federal Disability Retirement can work in the private sector, provided the job aligns with their medical restrictions.

Changing Lanes in Work: Disability Benefits Don’t Spell the End of Your Career

Such a provision can greatly help employees in making decisions. Filing for disability benefits doesn’t end the employee’s career, it is simply a change in the direction. Many federal employees work a different job, or start a business that is less demanding in the area that employee struggles currently.

A postal worker may struggle with carrying the mail because of a knee condition. But that doesn’t stop the employee from starting a business designing websites, or working in sales, or any number of other occupations that don’t require the same strain on the knee itself.

There are countless other examples of how a federal employee can qualify for and receive Federal Disability Retirement benefits and then continue to work in another job while collecting the benefits.

Earnings Limit and Administrative Recovery: A Closer Look

However, there is an earnings limit. Federal employees must report to the OPM if their earnings exceed 80% of their federal job’s current salary. This is known as an Administrative Recovery. We will delve deeper into this topic in an upcoming article.

The Bottom Line: Understand Your Options and Make Informed Decisions

Understanding these nuances can help federal employees make informed decisions about their future. Remember, Federal Disability Retirement doesn’t mark the end of your career; instead, it opens up new avenues for you to explore while ensuring you reap the benefits of your hard work.

If you are looking to apply for Federal Disability Retirement, you don’t want to do it alone! We have experience helping over 8,000 federal employees apply for this life changing benefit. Schedule a FREE consultation today to see if you qualify.

Message us & find out if you qualify today!

Recent Articles

Reasonable Accommodation FAQs: A Guide for Federal Employees

If you're struggling to do your federal job because of a medical condition, reasonable accommodation may help you stay in your position a little longer - but it’s also a key step if you're considering a way out of federal service through an option like Disability...

Make Sense of the 3112D, AKA the HR Form, With these Tips

The application for Federal Disability Retirement is full of confusing terminology, complex paperwork, and specific standards, like the SF 3112D - also called the Agency Certification of Reassignment and Accommodation Efforts. This is the HR form your agency will fill...

Pay Freezes May Be Next for Federal Employees: Here’s What You Can Do

After months of various incentives and plans to trim up the federal workforce, President Trump is now proposing a freeze in federal employee pay. That means that employees won’t get their raise in 2026.  With unpredictable job security because of RIFs and layoffs, and...

Federal Employee Resources

Our ever growing library of federal employee resources give you the knowledge you need to make smart choices about your future.

FAQs

Frequently Asked Questions

Get the answers you need on-demand, from a team of federal employee benefits professionals.

View FAQ
Webinars

Federal Benefit Webinars

Twice per month we host webinars to help federal employees better understand their benefits and answer their questions LIVE.

See Webinar Schedule
Guides

Benefit Guides

From guides to detailed charts, these educational resources will help clarify confusing federal employee benefits topics.

See our resources