Feb 3, 2023 | By Aaron D. Wersing | Read Time: 3 minutes | FERS Disability

Is Federal Disability Retirement Income Taxable?

If you have been a federal employee and are seeking to receive disability retirement income, you might have to pay taxes on that income. This isn’t pleasant news, but the following article can help you prepare for what’s next. If you’re still wondering, is federal disability retirement taxable? Or if you have other questions regarding federal disability retirement, contact us today. Common Kinds of Federal Disability Retirement Income The first step federal employees should take to understand their tax liabilities on federal disability retirement payments is to understand what kind of federal benefits they’re receiving. Common retirement benefits a federal employee might receive include: The Office of Personnel Management (OPM) handles many matters related to FERS and CSRS payments. Some of the above-listed benefits are taxable, and some aren’t. For payments and benefits that are taxable, they are taxable at different levels. Is OPM Disability Retirement Taxable at the Federal Level? OPM oversees matters regarding FERS and CSRS disability retirement payments. Is FERS Disability Retirement Taxable at the Federal Level? Is FERS taxable? Some FERS disability retirement is taxable. Individuals can receive FERS disability retirement if they have certain characteristics, including: Recipients of a FERS disability retirement annuity do show these benefits as taxable income. Is CSRS Disability Retirement Federally Taxable? Some CSRS disability retirement is federally taxable. An eligible recipient of CSRS disability retirement must: CSRS retirement disability recipients also must pay tax on their benefits. Whether you are seeking CSRS or FERS retirement disability benefits, you have a limited amount of time to apply for them. You also have to follow specific rules to maintain them. This can be overwhelming when you are trying to handle a disability. An experienced federal employment disability lawyer can recover your benefits while you adjust to changes in your life. Income Tax Rules from Your State Can Differ While some of your disability retirement benefits might not be federally taxable, your benefits could be subject to state income taxes. Contact Our FERS Disability Attorney Today to Protect What Is Yours It’s stressful to determine how much vital income you can keep when you’re receiving benefits for a debilitating condition. But you don’t have to figure this out on your own. At the Federal Employment Law Firm of Aaron D. Wersing, PLLC, we have helped hundreds of federal employees with their employment issues. We have substantial experience, and we are passionate about helping federal employees. Let us help you. Contact us online or call us at 866-508-2158.

Dec 16, 2022 | By Aaron D. Wersing | Read Time: 3 minutes | FERS Disability

Applying for OPM Disability Retirement

There are currently two retirement systems in the federal government. The first one is the Civil Service Retirement System (CSRS). The other, more common system is the Federal Employees Retirement System (FERS). Regardless of which system you fall under, you can receive disability benefits. To do so, you first need to submit a detailed retirement application to the Office of Personnel Management (OPM). Applying for OPM disability retirement is a complex and arduous process. If you are a federal employee with a serious injury or disability, it is essential that you understand OPM’s disability retirement. If you don’t follow the process correctly, OPM may reject your application, placing your financial future in jeopardy. We’ll discuss the basics of the OPM disability retirement process here. Prerequisites for FERS Disability Retirement Given that FERS is the retirement system for the overwhelming majority of the federal workforce, it is worth discussing first. Eligibility for FERS disability benefits requires that you: In addition, you must show that your debilitating condition is expected to last at least one year. Short-term illnesses and injuries do not suffice. To meet the third requirement, your federal employer must first attempt to give you an accommodation that allows you to perform the essential functions of your job with your disability. Potential accommodations include things like telework, altered office arrangements, and a change in work schedule. If attempts to accommodate your condition with your position are unsuccessful, your employer must also search for a similar position that could meet your needs. People typically have several misconceptions about what they need to show when they submit their application for OPM disability retirement. For one, they believe they need to show that their disability prevents them from doing all work. This is patently false. The employee needs to show only that their disability prevents them from executing the core duties of their position of record. In other words, if you are a welder, you do not need to show that your disability prevents you from sitting at a computer. People also commonly believe that their disability must stem from their federal work. This is also incorrect. You can apply for disability retirement regardless of the cause of your disability. Differences in CSRS Disability Retirement Application Applying for CSRS disability retirement is quite similar to applying for FERS disability retirement. The key difference is that you must complete at least five years of Federal civilian service before applying for CSRS disability retirement. FERS, on the other hand, requires only 18 months of federal civilian service. Preparing Your OPM Disability Retirement Application You need to complete two forms to begin your FERS disability retirement application: If you are not yet 62 years old, you will also have to submit your application for social security disability benefits. Because there are only two or three items to submit, you may think that applying for disability retirement is straightforward. The unfortunate truth is that the process is quite complicated. To complete your application, you will need to collect a wide variety of medical information. Consequently, It is essential to act quickly when applying for disability retirement. In fact, the best time to begin working on your disability retirement application is before you receive your separation of service from the government. If you apply before or immediately after your separation from service, you can probably count on additional support from your employer. As more time passes, it will be more difficult to collect the evidence you need. In any event, you have exactly one year to apply for OPM disability retirement. Waiting more than one year to apply for OPM disability retirement will cause you to forever lose out on disability benefits. Therefore, we cannot stress enough how important it is to take action and contact an employment attorney when you receive your separation for service. Would You Like Assistance Preparing Your OPM Disability Retirement Application? Now you know the basics of applying for disability retirement. However, the process is complex, and many applicants experience needless delays or denial of benefits because of avoidable errors. Don’t make that mistake. Instead, contact one of our qualified attorneys at the Law Office of Aaron D. Wersing, PLLC. We strive to protect the futures of federal employees, especially those who have a disability. We know how difficult and overwhelming it can be to fill out paperwork and navigate the retirement application process, and we want to help you. Let us take care of your retirement application so you can focus on putting your life back together. Even if you aren’t sure you need an attorney for your application, let us review your case. Don’t wait. Call us today at (866) 612-5956, or reach out to us online.

May 27, 2022 | By Aaron D. Wersing | Read Time: 3 minutes | Federal Disability

What is the Difference Between Social Security Disability and Federal Disability?

The difference between social security disability insurance (SSDI) and a disability under the Federal Employees Retirement System (FERS) isn’t straightforward. People confuse FERS disability retirement and SSDI all the time. If you think that you or a loved one may qualify for one or both of these programs, you need to understand the nuances of each. Understanding the difference is especially crucial if you are a current federal employee. This article will review the key characteristics of both FERS disability retirement and social security disability. Contact a capable federal employment attorney today if you have any other questions. What Are the Differences Between FERS Disability Retirement and Social Security Disability? FERS disability retirement and Social Security disability are very different. Let’s take a look at the significant differences. Difference #1: More Americans Qualify for Social Security Disability As you might imagine and as the name suggests, FERS disability retirement applies only to federal employees covered by the FERS system. Federal employees covered by the older Civil Service Retirement System (CSRS) and private sector employees cannot receive FERS disability retirement, although CSRS employees can receive CSRS disability retirement which is similar to FERS. On the other hand, virtually any adult American with a disability can apply for social security disability benefits. Difference #2: FERS Disability Retirement Focuses on Occupational Injuries Another major difference between the two systems is how they analyze a person’s disability. Congress passed the Social Security Act to provide a general “safety net” for any American worker who became disabled. Thus, SSDI is a “total” disability benefit, which means it assesses an individual’s disability in light of their ability to do any kind of work. Let’s use an example to clear things up. Say John Smith is a plumber injured at work, resulting in a serious disability. Because of this disability, he can no longer perform the physical aspects of his job as a plumber. However, he could do another kind of work—computer and administrative tasks, for example. In this scenario, John would probably not qualify for SSDI because he can still perform some kind of work. It doesn’t matter whether that work is similar to his original job. By contrast, FERS disability retirement is an “occupational” disability benefit. In other words, it focuses on how an individual’s disability affects their ability to do their specific occupation. This focus makes it significantly easier to qualify for in comparison to SSDI. To be eligible for FERS retirement, a federal employee just needs to show that they cannot perform the duties of their position of record due to a disability. Although their agency can try to assign them to a different job, any potential reassignment has to have the same grade/pay level, be in the same commuting area, and involve the employee’s qualifications. Let’s pretend that our friend John Smith was a plumber for the federal government when he became disabled. To obtain a FERS disability retirement, he needs to show only that he can’t perform his duties as a plumber and that his agency can’t place him in a similar position. Even if his physical disability allows him to perform administrative tasks, his agency cannot force him into a new position that doesn’t relate to his qualifications. Difference #3: You Can Receive FERS Disability Retirement Benefits While Working in the Private Sector Because FERS retirement is an “occupational” disability benefit, a federal employee can theoretically work a private sector position while receiving FERS retirement benefits. Yet because an employee has to be “totally” disabled (i.e., they cannot perform any kind of work) to qualify for SSDI, they cannot work and receive that benefit. Can I Receive Both FERS Retirement Benefits and Social Security Disability Benefits? Yes. However, these benefits will not “stack” on top of each other. Instead, your FERS disability benefits will be reduced by some amount of the amount of Social Security benefits you receive. Depending on how your FERS disability benefits were calculated by the Office of Personnel Management (OPM), your monthly disability payment could be reduced by 60% or 100% of your SSDI benefits. Get in Touch With a Federal Employment Lawyer Today We’re a compassionate and caring team of attorneys who strive to empower government employees and protect their interests. We know public servants are dedicated to serving their country and promoting the general welfare. Therefore, we believe our clients should be able to exercise their rights fully, whatever their situation. As soon as you call us, we’ll work to make sure you get the treatment and compensation you deserve. Reach out to us online or call us at 833-833-3529.

Apr 22, 2021 | By Aaron D. Wersing | Read Time: 4 minutes | Federal Disability

How Does Federal Disability Work?

One of the biggest perks of being a federal employee is having access to the government’s comprehensive benefits package. Currently, most federal employees receive benefits under the Federal Employees Retirement System (FERS). Although there are resources explaining FERS and how it works, they aren’t always as helpful as they could be. We frequently get questions from federal employees asking how to balance their medical and financial needs, and many times these employees have never heard of benefits such as disability retirement. If you are wondering how federal disability works, this blog post hopefully demystifies federal disability to help you best understand your options. If you have questions or would like to speak with a federal disability attorney, contact The Law Office of Aaron D. Wersing by using our online form are call us at (833) 833-3529. What Is the Federal Employees Retirement System? FERS stands for Federal Employees Retirement System. This program is the modern disability program offered by the federal government. If you started your service earlier than 1987, your disability benefits will come from the Civil Service Retirement System (CSRS) instead. Most of these provisions for disability retirement are substantially the same under CSRS, so if you are a CSRS employee, you can qualify for disability retirement as well. When Am I Eligible for FERS Disability? Eligibility starts with your length of creditable service with the government. For employees covered under FERS, you must have at least 18 months of creditable federal civilian service to qualify. Note that federal employees covered under CSRS need five years of service to qualify. In addition: Whether your disability prevents you from a useful and efficient service isn’t always obvious. For that reason, many federal employees seek advice from a federal disability lawyer. Does FERS Include Short-Term Disability? No, FERS does not include short-term disability. FERS does not cover disabilities expected to last less than one year. Other than sick leave, annual leave, and your agency’s leave bank (if available), there are no specific benefits for short-term disability. However, in many cases of a short-term disability, the employing agency may be required to provide reasonable accommodation. Reasonable accommodations may include leave, job restructuring, telework, ergonomic equipment, or another option that would allow the employee to perform the duties of his or her position. FERS Disability and Social Security As explained above, eligibility for FERS disability is partially dependent on the employee applying for Social Security benefits. So how does federal disability work when it comes to this requirement? Fortunately, you don’t have to receive approval for Social Security benefits to receive FERS disability; you just have to apply. You can be approved for both SSDI and FERS disability simultaneously. In such a case, you would generally receive your full SSDI benefit while receiving a reduced disability annuity from the Office of Personnel Management (OPM). Unfortunately, keeping track of all the eligibility requirements can be difficult, especially if you’ve never worked with federal disability benefits in the past. We’re here to help you understand the process and make it as stress-free as possible. Applying for FERS Disability As with other government benefits programs, applying for FERS disability starts with completing several forms. Generally, you must complete at least SF 3107 and SF 3112. Additionally, you will need to provide documentation that you applied for Social Security disability, and other supporting documents depending on your responses on the SF 3107 and SF 3112 forms. During this first part of the process, your supervisor will also have to provide some information about your agency, position, and accommodations made available to you (if any). If you are still on agency roles and not separated, or are within 30 days of separation, you must apply through your agency. If you are more than 30 days separated, then you will apply directly to OPM. Once your application is submitted, the Office of Personnel Management (OPM) will review your eligibility before notifying you of its decision. What to Do If You Are Denied FERS Disability Benefits As a federal employee, you have a robust set of rights when it comes to your employment, including denial of benefits. In a case where OPM disallows your application for FERS disability, you have 30 days to file a reconsideration appeal with OPM. Note that on the reconsideration form, you may elect to submit additional information in support of your application. During this appeal, a reconsideration specialist will give your application a second review. If your reconsideration appeal is denied as well, your next option is an appeal to the Merit Systems Protection Board (MSPB). An MSPB administrative judge will review OPM’s decision to determine whether you are eligible for FERS disability. If the administrative judge also denies your benefits, you can appeal to the MSPB board. After that, you will have exhausted your administrative remedies, giving you the right to take your case to the United States Court of Appeals for the Federal Circuit. Losing FERS Disability Benefits Generally, once you’ve been approved for FERS disability, you will keep your benefits as long as you remain disabled. However, OPM may require you to get periodic medical exams to continue receiving benefits. Accordingly, if you recover from your disability, your benefits will stop. There are two other main reasons why you may lose your federal disability: Additionally, remember that your standard non-disability FERS retirement annuity will start when you reach age 62. As a result, your disability benefits will stop at that time, and you will be switched over to regular retirement through OPM. Need a Federal Disability Lawyer? We recognize that understanding how federal disability works isn’t always clear. The Law Office of Aaron D. Wersing is here to help you understand your eligibility and help you successfully obtain the benefits you need. To get started, contact us today online or by phone at (833) 833-3529.