Differences Between FERS/CSRS Disability Retirement and OWCP

-- End Ad Box --->compensation.").
The rabbit had been able to elude the fox,Thus, when OWCP terminates your payments
hopping safely into the arms of a briar patch and(and there is a very good chance that this will
out of the immediate reach of the hungryhappen at some point in the near future), it is a
predator. Seeing that he would not be able towise option to have your disability retirement
have the rabbit for a meal, he decided instead tobenefits approved, but held in an inactive status.
show concern. “Are you alright, my friend?”You have every right to elect one benefit over
he asked, trying to put on an expression ofthe other. Indeed, if you wanted to, you are
empathy.allowed to go back and forth between OWCP and
“Quite well, thank you,” replied the rabbit, stillFERS/CSRS disability retirement.
panting from the close call and looking to andAs a secondary issue on this matter, take a close
from with suspicion.look at 5 U.S.C. Section 8106 on “partial
“Very well, then,” said the fox, who begandisability”, and compare that definition with the
to walk away. He paused, turned around, anddefinition for disability retirement. In Section 8106
added, “I promise not to try and harm you(OWCP), the definition states in paragraph (c) (2)
anymore.”that “A partially disabled employee who refuses
“Are you quite serious?” asked the rabbit,or, neglects to work after suitable work is
surprised at this sudden announcement.offered to, procured by, or secured for him, is
“Quite serious,” the fox replied, then walkednot entitled to compensation.” This means that
away. As he walked, he uttered under his breath,if OWCP secures a job for you as a Walmart
“At least -- not for today.”greeter (you know, those individuals who smile
-- From “More Fables, Ancient and New”and say hello to you as you walk into the
At least once a month, I receive a call from anWalmart Superstore), and pay you the difference
individual who has been on total disability withbetween your salary and what Walmart pays --
Federal Worker’s Comp for several years.and you decide to say “no”, OWCP has
The individual has been separated from serviceevery right to cut off your payments.
from the Federal Government or the PostalOn the other hand, under the laws concerning
Service for more than a year, and suddenly theFERS & CSRS disability retirement, 5 C.F.R.Sec.
Office of Workers Compensation Program sends844.103 (a)(2) states that, in order to be eligible
the individual to a Second Opinion doctor, andfor disability retirement, the individual "must, while
thereafter issues a declaratory finding that he oremployed in a position subject to FERS, have
she is no longer disabled, and can return to work.become disabled because of a medical condition,
-- Not only has that individual lost his OWCPresulting in a deficiency in performance, conduct,
benefits, but he has also lost his right to file foror attendance, or if there is no such deficiency,
disability retirement under FERS or CSRS.the disabling medical condition must be
This is because, under the rules and regulationsincompatible with either useful and efficient
for disability retirement, an individual must file withservice or retention in the position."
the Office of Personnel Management within oneThe difference here is that, under OWCP, if you
year from the date he or she is separated fromare 'partially disabled', if you are offered any job
Federal Service (See 5 C.F.R. Sec. 844.201(a)(1) ,that OWCP believes you can do, you must
where it states that, "Except as provided inaccept it. On the other hand, under FERS/CSRS
paragraphs (a)(3) and (a)(4) of this section, andisability retirement laws, if you are partially
application for disability retirement is timely only ifdisabled -- meaning that you simply cannot do at
it is filed with the employing agency before theleast one or more of the essential elements of
employee or Member separates from service, oryour job -- then you are entitled to disability
with the former employing agency or OPM withinretirement benefits, and your agency or the
1 year thereafter").Postal Service cannot simply offer you any job;
Thus, a word of caution for those manythey must offer you a job in the same pay or
individuals who receive the non-taxable paymentsgrade, and one in which you are qualified or, if you
from OWCP -- continue to remain on OWCP forare in the Postal Service, then it must an
as long as possible, because it is certainlyaccommodation in the same craft.
financially advantageous over the taxable annuityUnder the former (OWCP), you have no control
amount received from FERS/CSRS disabilityover your future (OWCP determines your
retirement -- but always remember that OWCP isfuture); under the latter (disability retirement), you
not a retirement system. If they don’t cutcan obtain disability retirement benefits, and then
your payments off today, there is alwaystake control of your future and work at another
tomorrow (refer to the fox in the fable, above).job of your choice, and make up to 80% of what
I always advise my disability retirement clientsyour (former) position pays, and still continue to
who are receiving OWCP benefits to remain onreceive your disability annuity.
OWCP for as long as they can stand it (i.e., theExperiencing a medical disability is a traumatic,
persistent harassment, the constant oversight bylife-changing event. Financial concerns are always
so-called "2nd opinion doctors", etc.) -- but topart of this life-changing event, and it is important
always have the FERS/CSRS disability retirementto secure one's financial future to the greatest
annuity approved as a back-up source of income.extent possible. Obtaining disability retirement --
Individuals may file for disability retirementboth the annuity as well as the health insurance
concurrently while on OWCP -- but you simplybenefits -- is often the difference between a
cannot collect from both at the same time (See 5secure future and financial poverty. It is therefore
C.F.R. Sec. 844.105, "Relationship to workers'extremely important to look upon disability
compensation. (a) Except as provided in paragraphretirement as a lifetime investment -- one which
(b) of this section, an individual who is eligible formust be obtained with an aggressive plan and
both an annuity under part 842 or 844 of thisapproach.
chapter and compensation for injury or disabilityI am an Attorney who represents Federal and
under subchapter I of chapter 81 of title 5, UnitedPostal workers from all across the United States,
States Code (other than a scheduled award underincluding Alaska, Hawaii and Puerto Rico. I do not
5 U.S.C. 8107(c)), covering the same period ofcharge for telephone consultations.
time must elect to receive either the annuity or