The following is a question submitted by a Federal Times reader about retirement and other issues facing the federal workforce. Reg Jones, a charter member of the senior executive service and a Federal Times columnist since 1995, answered it.
Question: I called OPM today and they said that you can receive both disability and Social Security retirement benefits and that you can receive both at the same time and that one offsets the other. But he clearly stated that you can have both and I read it several times. There’s no point if you only get one. Why apply for it? I already get SSDI. So is it true that I can only get one? If that is correct what will I get from my job based on regular retirement? I’m confused. Can you explain to me why I’m being told to apply for disability retirement if you can’t get both? What’s the point then?
Reg’s response: Employees with fewer years of service are better off applying for Social Security and disability retirement because the formula used to calculate their disability retirement benefit produces a larger annuity they would receive if they apply for regular retirement. This is important if they are rejected for Social Security disability benefits. When you look at the formulas used, you’ll see why.
Regular retirement:
1 percent X high-3 X years of service
Disability retirement:
For the first 12 months – 60 percent of high-3 minus 100 percent of the Social Security disability benefit, if any
After the first 12 months – 40 percent of high-3 minus 60 percent of the Social Security disability benefit, if any.
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Reg Jones is the resident expert on retirement and the federal government at the Federal Times. From 1979 to 1995, he served as assistant director of the US Office of Personnel Management handling recruiting and evaluation, white and blue collar pay, retirement, insurance and other issues. The opinions expressed are his own.