How Much Does Federal Disability Retirement Pay?

Jun 12, 2017

retirementQuestion of the Week: How Much Will I Get Paid on Federal Disability Retirement and for How Long?

A: First let’s look at how much will you receive if you are approved for federal disability retirement from OPM.

Disability retirement benefits are computed differently depending on your age and amount of service at the time of retirement. Plus, your annuity will be recomputed after the first 12 months and then again at age 62.

Generally, if you can retire under a disability retirement, you will be under the age of 62 and not eligible for an immediate voluntary retirement. The computation is as follows:

  • For the first 12 months, you will receive 60% of your high-3 salary MINUS 100% of your Social Security benefit for any month you are eligible to receive that.
  • After the first 12 months, you will receive 40% of your high-3 salary MINUS 60% of your Social Security benefit for any month you are eligible to receive that.
  • When you reach age 62, your benefit is recomputed using the amount that basically represents the annuity you would’ve received if you had not retired on disability. Meaning that your years receiving a disability retirement count as years of creditable service toward your FERS retirement at age 62.
    • In this case, if your actual service (plus credit for the time as a disability annuitant) equals less than 20 years, you’ll receive 1% of your high-3 salary for each year of service.
    • If your actual service (plus credit for the time as a disability annuitant) equals more than 20 years, you’ll receive 1.1% of your high-3 salary for each year of service.

Now, we’ll look at how long you can receive a federal disability retirement annuity.

You are eligible to receive your monthly annuity for as long as you remain disabled from your government job, even if you can work outside the government.

Your annuity will only stop if:

  • You die unless you provided for a survivor’s annuity.
  • The federal government re-employs you.
  • You recover from your disability.
  • Or, you are restored to earnings capacity. You cannot make, in a position outside the federal government, more than 80% of what your former position currently pays.

Message us & find out if you qualify today!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

5 Common Myths about Federal Disability Retirement, Debunked

Navigating the complex landscape of Federal Disability Retirement can be a daunting task, and many federal employees have misconceptions that deter them from pursuing the federal benefits they deserve. We're cutting through the confusion of the top 5 myths to give you...

Harris Federal Employee Law Firm Names New Partner

Lexington, KY: Harris Federal Employee Law Firm is pleased to announce the promotion of Leah Bachmeyer Kille to the position of partner. Harris Federal is one of the nation’s leading federal employee benefits law firms, having successfully represented more than 8,000...

Can I Live Off Federal Disability Retirement?

If you’re applying for Federal Disability Retirement, you may be wondering if you can live off the monthly annuity payments. Living with a disability can be costly and having to take an early retirement can be scary, especially when looking at the future of your...

Is It Hard to Get Federal Disability Retirement?

Federal Disability Retirement can be a lifeline for federal workers who are struggling at work due to an injury or illness. But getting approved may be more difficult than you might expect. Discover common challenges in the application process and learn why it’s worth...

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