The 4 Key Benefits of Federal Disability Retirement

by | Jun 10, 2024

Imagine a lifeline, a beacon of hope for your future when you’re struggling with an injury or illness that’s impacting your federal job. That lifeline is Federal Disability Retirement. If you can’t perform at least one of the essential functions of your role, you might be eligible. Made up of 4 key benefits, Federal Disability Retirement is the rock-solid safety net you can depend on until you reach the golden years of retirement.

Discover the 4 key benefits of Federal Disability Retirement and how it can transform your professional and personal life, providing a safety net when you need it most.

A Steady Stream of Monthly Income

Living with a disabling medical condition can be stressful. It can be scary to consider leaving your federal job and losing that steady income. But once you are approved for Federal Disability Retirement, you will be receiving a supplemental monthly annuity. This income provides financial security that will help support you through this time.

The monthly annuity you receive will be calculated based on your high 3 average. Although the Office of Personnel Management (OPM) finalizes your high 3 average, you can get a ballpark figure from the adjusted basic pay box on your SF 50.

In your first year following disability retirement approval, you’ll receive 60% of your high 3 average. From then on, until the age of 62, you’ll receive 40% of your high 3 every year.

Keep Building Your Years of Service

One of the most overlooked considerations when looking at retirement is your years of service. Your regular federal retirement will be calculated based on the number of creditable years you have accumulated, and Disability Retirment can help you maximize your benefits as much as possible.

Your years on Federal Disability Retirement will be included in your regular retirement calculation at age 62. This can make a significant difference in your monthly payments for the rest of your life, this can change your life.

Looking at this chart you can see just how Federal Disability Retirement can increase your years of service.

creditable years of service chart

Keep Your Health and Life Insurance

The thought of losing your health and life insurance when dealing with a medical condition can be too much to bear, which is why many people are scared to “retire early.” Thankfully, you will be able to keep your health and life insurance while on Federal Disability Retirement. You can rest easy knowing you and your family have the coverage you need.

The OPM will cover your agency’s portion of the premiums, but you should keep in mind that your premiums may rise over time. It’s important to regularly assess your benefits to determine if they are still the best option for you and your family.

Keep Working if You’re Able

Now, you may be looking at your annuity payments and thinking, “Will this be enough?” If you are not receiving any additional benefits, or not receiving any additional financial support, it might fall short. However, the good news is that you can find a new job in the private sector.

With the security of your disability retirement annuity, you can find a new job doing something that you love. We have seen many clients pursue creative endeavors, go back to school to be retrained, and so much more.

While you won’t be able to return to work in the federal government, and you must stay within an income cap, there are thousands of jobs that you would be able to explore after being approved for Federal Disability Retirement.

These 4 key benefits of Federal Disability Retirement combine to form a fortress for your future. The relief brought by a monthly annuity, continuity of insurance, and a fresh career, along with continuing to build your regular retirement once you hit 62, makes these a feasible opportunity for most in this situation.

For over 20 years, Harris Federal has been the national leader, guiding individuals through their Federal Disability Retirement journey, safeguarding these critical benefits and securing the futures of federal employees.

Take the first step towards anchoring your future. Schedule a free consultation with our seasoned disability consultants to map the path for your disability retirement case. Call us at 877-226-2723 now, and let’s secure your future together.

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