How to Solve Your Retirement Problems

by | Sep 18, 2023

happy couple on couch with no retirement problems

Are you struggling to reach retirement due to an injury or illness? We know how hard it can be to make ends meet each month when you are unable to work due to a disabling condition. If you are a federal employee, you may be eligible for Federal Disability Retirement. This is a long-term benefit that allows disabled federal employees to reach their retirement age, without returning to federal service. The benefits of Federal Disability Retirement work together to provide you with financial security and peace of mind. Keep reading to learn how Federal Disability Retirement can solve your retirement problems!

What Are the Benefits of Federal Disability Retirement?

Federal Disability Retirement is an early retirement option for federal employees who need a solution to their retirement problems. This benefit allows you to retire now while maintaining your retirement benefits. While on Federal Disability Retirement you will receive four main benefits:

  1. A secure monthly annuity– Your secure monthly annuity will be based on your high 3 average which is calculated by the OPM. You will receive 60% of your high 3 average for the first year and 40% for every year until age 62.
  2. Creditable years of service– You will continue to gain creditable years of service every year you are on Federal Disability Retirement until age 62. These years will be counted towards your regular retirement calculation.
  3. Health and life insurance– You will continue to have access to your federal health and life insurance benefits. This is a huge benefit to disabled federal employees who may have difficulty finding coverage in the private sector.
  4. Work in the private sector– You will still be able to take on jobs in the private sector while on Federal Disability Retirement, as long as your income does not exceed 80% of what it was before you applied for disability retirement.

Is Federal Disability Retirement Long-Term?

Federal Disability Retirement is seen as a long-term benefit as it lasts until age 62. Even if you are a special provisions employee with a mandatory retirement age of 56 or 57, you will stay on this benefit until you turn 62.

At age 62, your Federal Disability Retirement will automatically transfer into your regular FERS retirement. Your regular retirement is calculated based on your high 3 average and creditable years of service. If you have less than 20 years of creditable service, you will receive 1% of your high 3 average for every year of service, and if you have more than 20 years you will receive 1.1%.

*If you are a special provisions employee your retirement is calculated at a higher rate. For the first 20 years of special provisions service, you will receive 1.7% of your high 3 average. For every year after 20, you will receive 1%.

Application Process

In order to apply for this benefit, you must fill out the Standard Form 3107 and the Standard Form 3112 in addition to any other necessary forms. Your agency will assist with the SF 3107 as this is the documentation for regular retirement that your agency will have lots of experience with. However, your agency will likely not have much experience with the SF 3112. This is the documentation in support of disability retirement that you will need to fill out with the help of your physician.

The SF 3112 requires personal statements, supervisor statements, and doctors’ statements all in support of your disabling conditions. These statements must be accurate and detailed and are very important in order for your disability retirement to be approved. It is recommended that you have an experienced Federal Disability Retirement attorney help with this process, as the statements must provide full disclosure of the disabling conditions but should not include irrelevant information that could damage your case.

Once you have filled out all the forms, they will be sent to the Office of Personnel Management (OPM). The OPM will review your documents and make a determination as to whether or not you qualify for this long-term benefit.

Harris Federal Law Firm has been handling Federal Disability Retirement cases for years, and with over 8,000 happy clients, we know exactly what the OPM is looking for. Let us solve your retirement problems and schedule a FREE consultation today.

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