Jun 20, 2025 | By Aaron D. Wersing | Read Time: 4 minutes | FERS Disability

Differences Between FERS Deferred Retirement and FERS Postponed Retirement: Which Option Is Better For You?

For federal employees contemplating retirement, understanding the nuances between different retirement strategies is essential. Except for a few very senior employees, most federal workers fall under the Federal Employee Retirement System (FERS). Compare FERS deferred and postponed retirement to choose the option that best fits your circumstances. In this article, we’ll clarify the difference between these two different retirement options and help you understand which one might be better for you.  However, if you need specific advice for your situation, then contact a competent FERS disability retirement attorney today.   Understanding Your Options: FERS Deferred or Postponed Retirement First, we need to explore what the terms “deferred retirement” and “postponed retirement” mean. Although these options fall under the FERS, they each operate under distinct circumstances and hold unique implications for retirees. Deferred retirement is typically for FERS employees who leave federal service before they reach the minimum retirement age (MRA). You can apply for deferred retirement if you have at least five years of creditable civilian service. However, bear in mind that you can’t withdraw your contributions to the retirement fund. If you do, you won’t be eligible for deferred retirement. On the other hand, postponed retirement is an option for FERS employees who have reached their MRA and have somewhere between 10 and 30 years of service. Postponed FERS retirement allows you to delay receiving retirement benefits to avoid the age reduction penalty.  What Are the Differences Between Deferred Retirement and Postponed Retirement? Besides the eligibility requirements and the retirement benefits that we just mentioned, there are several other differences between deferred retirement and postponed retirement.  1. Insurance Benefits One critical difference lies in health insurance and life insurance benefits. Under FERS deferred retirement, you are not eligible to continue receiving either Federal Employees Health Benefits (FEHB) or Federal Employees Group Life Insurance (FEGLI) after you leave federal service. If you choose to postpone your retirement, you can reinstate your FEHB and FEGLI when you begin to receive your annuity. However, to receive these benefits, you need to show that you were enrolled in these programs at least five years before your separation. 2. Survivor Benefits Another key difference involves survivor benefits. Deferred retirement annuities do not include survivor benefits if the recipient dies. This is because you have to receive an immediate annuity that began within 30 days of your separation to be able to receive survivor benefits. By contrast, FERS postponed retirement can sometimes pay out survivor benefits to your loved ones if you pass away before receiving your annuity.  3. Thrift Savings Plan FERS deferred and postponed retirements also differ when it comes to the thrift savings plan (TSP). All employees under FERS benefit from the TSP. Furthermore, deferred retirees and postponed retirees can withdraw their TSP funds. However, if deferred retirees can withdraw their TSP funds after they separate, they will have to pay the IRS’s early withdrawal penalty if they are below the age of 59 and 6 months. However, postponed retirees do not have to pay the early withdrawal penalty because they are already at their MRA. 4. Cost of Living Adjustments Lastly, FERS deferred retirement does not offer cost-of-living adjustments (COLAs) until the retiree reaches the age of 62. FERS retirees with postponed retirement receive COLAs immediately after annuity payments begin, even if under age 62. Is There a FERS Deferred Retirement Calculator I Can Use? Many people find it helpful to visualize their retirement options with a retirement calculator. While OPM offers a general formula for calculating your FERS retirement, they do not offer a calculator specifically for deferred retirement situations. Calculate your potential retirement sums by consulting a federal retirement attorney. Let Us Help You Determine Whether FERS Deferred Retirement or Postponed Retirement Is a Better Option For You! Call Today Deferred retirement annuities do not include survivor benefits if the recipient dies. In addition, the choices you make for your retirement will have tremendous effects on your life down the road. Consequently, it’s prudent to reach out to a knowledgeable federal attorney who can give you the advice you need.  Our team of adept attorneys at the Federal Employment Law Firm of Aaron D. Wersing, PLLC, is deeply knowledgeable about the nuanced legal factors intrinsic to FERS deferred and postponed retirement cases. We proudly offer our services to federal employees nationwide. In addition, we share an abiding passion for helping the dedicated civil servants who make our country’s government run effectively. Together, we can help you understand which retirement option is best for you in light of your circumstances. We’ll then take the steps necessary to put your plan into motion, including helping you complete your application for deferred or postponed retirement under FERS. If necessary, we’ll work with your agency to ensure that your legal rights are respected and that you receive the retirement benefits that you rightfully deserve.  Contact us today to set up your initial appointment by calling us at 866-612-5956. You can also visit our website online.

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May 28, 2025 | By Aaron D. Wersing | Read Time: 6 minutes | Federal Retirement

How Do I Calculate FERS Retirement With A Calculator?

Calculating your FERS retirement may seem complex, but we can help you determine the right amount with ease. A FERS disability retirement calculator is exactly what it sounds like. So you want to know how to calculate federal retirement. It is a tool you can use to calculate the amount of payment you will receive if you retire due to a disability. Of course, this calculator tool is applicable only if you are a federal employee retiring through the FERS disability retirement program.  For immediate assistance, please don’t hesitate to contact or call (833) 833-3529 to reach our experienced FERS disability lawyers. How is FERS Calculated? A FERS disability retirement pay calculator works just as any other calculator does. You give the calculator a set of inputs and parameters, and the calculator gives you an answer. The output could be your annual payment (referred to as an annuity). Or it could be your monthly or weekly payment. On the other hand, your output could be the total amount of money you will receive over X amount of time (36 months, 20 years, etc). It all depends on what you ask the calculator to give as its output. It is up to you.  Many of the FERS retirement calculations depend on your high-3 salary. OPM defines your high-3 as the highest average basic pay you earned during any 3 consecutive years of service. Your basic pay is your basic salary paid for your position. This includes salary increases for which FERS retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. Further, if one’s total service was less than 3 years, the average salary is figured by averaging basic pay during all periods of creditable Federal service. The best way to find your high-3 average salary is to get a FERS benefit to estimate from your Agency. This report will show the official figures that will be sent to OPM.  While the OPM website does not have a specific calculator tool, they publish information on how they make the calculations online. Here, we summarize those guidelines. FERS Disability Computation If You Have Reached the Age of Retirement If you are age 62 or older when you retire due to a disability, the following FERS calculation applies. The calculation also applies if you meet the age and service requirement for immediate voluntary retirement and suffer from a disability. This calculation is known as an “earned” annuity since you have otherwise met the qualifications for retirement benefits. ‘ The calculation goes one of two ways. If you are 62 or older when you retire and have less than 20 years of service with the federal government, or are under 62 years old but qualify for immediate voluntary retirement, your annuity calculation will be 1% of your high-3 average salary for each year of service. Thus, if you serve eighteen years, your annuity is 18% of your high-3 average salary. Your high-3 average salary is the highest average basic pay (minus overtime) you receive for three consecutive years during your employment. If your salary tops out at $65,000 for three years, that’s your high-3 salary. If your annual salary was $55,000 three years before your disability, then $65,000 per year for only two years before the disability, your high-3 average salary is the average of $55,000, $65,000, and $65,000. If you are 62 years old or older and have at least 20 years of service to the federal government, your annuity calculation is different. Your annuity calculation is 1.1% of your high-3 average salary for each year of service. So if you have 20 years of service at this point, your annuity is 22% of your high-3 average salary. Because the calculations for disability retirement for someone 62 years old or older are the same as regular voluntary retirement, it generally does not make sense to apply for FERS disability if you are at least 62 years old.  Related Article: Minimum Retirement Age (MRA) for Federal Employees FERS Disability Computation If You Have Not Reached the Age of Retirement For these calculations, the assumption is that you are under the age of 62 at the time of retirement and not eligible for voluntary retirement at that time. There are 3 tiers given: For the first 12 months, your annuity calculation will be as follows: Your base annuity is 60% of your high-3 salary. If you receive social security, the total amount of your social security payment is subtracted from your FERS annuity as a 100% offset. If your “earned” FERS annuity is greater than this amount, your earned annuity will be your annuity payment. After the first 12 months, before you reach age 62, your base annuity calculation will be reduced to 40% of your high-3 year salary. If you receive social security, 60% of that amount will be drawn from your annuity. Just like the first 12 months, your “earned” annuity will be your annuity payment if that amount is greater than the base annuity (minus the social security offset). Once you reach age 62, FERS will recalculate your annuity from that point on. It will be the annuity you would have had if you were able to work until the day before you turn 62 and retire under FERS. In other words, the service computation reverts to the one we outlined above. What Are Disability Annuity Reductions? In some situations, your disability annuity can be reduced due to elections made during the application process. The main situation where this happens is when you are married and have a survivor benefit election. Unless your spouse consents to you electing a smaller than ‘full’ survivor annuity (which you establish at the beginning of your employment term), your annuity faces a reduction of either 5% or 10%. If you elect survivor benefits that are 50% of your benefit, a reduction of 10% occurs. On the other hand, if you elect survivor benefits of 25%, a 5% reduction occurs....

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May 26, 2025 | By Aaron D. Wersing | Read Time: 4 minutes | FERS Disability

How to Strengthen Your FERS Disability Retirement Claim?

Many federal employees assume that qualifying for disability retirement through FERS (Federal Employees Retirement System) will be straightforward. After all, the program exists to support federal workers who can no longer perform their job duties due to a medical condition. However, even those with legitimate disabilities can face delays, requests for additional information, or outright denials from the Office of Personnel Management (OPM).  The good news is that there are concrete steps you can take to strengthen your FERS disability retirement claim and improve your chances of securing the benefits you’ve earned. This guide will walk you through essential strategies to help you build a stronger case and avoid common application pitfalls. 4 Tips for Winning a FERS Disability Retirement Case Here are some of the most effective ways federal employees can make a strong disability retirement claim and boost their chances of approval. Make Sure You Qualify Unfortunately, many FERS applicants face denials because they overlook or fail to prove the basic eligibility requirements. To qualify for FERS disability benefits, you must: To avoid these common mistakes in a FERS disability retirement application, ensure that you have concrete evidence for each of the above.  Gather Plenty of Medical Evidence The OPM requires detailed medical evidence to prove that your condition prevents you from performing your job duties. This includes evidence such as: Medical evidence is needed for a FERS disability claim because it serves as the foundation of your case. Submitting thorough and well-organized medical documentation for FERS disability retirement approval helps establish that your condition meets the legal requirements under OPM guidelines. Don’t Wait to File Too many employees lose out on benefits because of missed deadlines. You must apply for FERS disability retirement within one year of your separation from federal service.  If your claim is denied, you can appeal—but you must do so within 30 days of the denial letter date. Delaying action at any stage can mean losing your right to disability retirement benefits.  Get Help from an Attorney Working with a skilled lawyer is one of the most effective ways to strengthen your FERS disability retirement claim. An experienced federal employment attorney can help confirm you meet eligibility requirements, collect medical evidence, and present your case in the most favorable light. A lawyer can also work to build an effective legal strategy for the appeals process if your application is denied. Frequently Asked Questions About FERS Disability Applications Many federal employees have questions about the FERS disability retirement process. Below are answers to some of the most common concerns. How Do I Prove My Medical Condition Prevents Me from Performing My Job Duties? To qualify for FERS disability retirement, you must show evidence that your condition prevents you from performing the critical elements of your job, or creates a deficiency in attendance or conduct. Medical evidence can help, and your physician should clearly state the physical or mental limitations caused by your condition and how they interfere with your ability to work. However, your supervisor’s statement carries a lot of weight in how OPM determines whether a deficiency is present. What Medical Conditions Qualify for FERS Disability Retirement? Any physical or mental condition that substantially limits your ability to perform your job duties may qualify for FERS disability retirement. This includes chronic pain, degenerative diseases, mental health conditions, autoimmune disorders, and more. What matters is whether the condition impairs your ability to perform useful or efficient service to your agency. Do I Need to Prove That I Am Totally Disabled to Qualify? No. You only need to show that your condition prevents you from effectively performing your position of record and that reasonable accommodations are not possible.  How Important Is My Physician’s Statement in My Application? Your physician’s statement can be one of the most critical pieces of evidence in your FERS disability claim. It should clearly outline your diagnosis, symptoms, limitations, and prognosis. A strong physician’s statement will help you prove medical eligibility for FERS disability retirement and increase your chances of approval, and an experienced attorney can help in providing guidance in this process. What Kind of Evidence Can Strengthen My Appeal? Up to date medical records, low performance evaluations, more detailed physician statements, and certain types of removals can all be helpful during an appeal. A lawyer can help you identify gaps in your initial submission and build a stronger case during the appeal process. Insightful Legal Support Federal Employees Can Trust At the Federal Employment Law Firm of Aaron D. Wersing PLLC, we know how complex applying for disability retirement benefits can be. Our firm has spent years helping federal employees nationwide successfully secure the disability benefits they need and deserve. With extensive experience across virtually all aspects of the federal government, Aaron Wersing is ready to work with you to strengthen your FERS disability retirement claim from start to finish. If you’re a federal employee preparing a FERS disability retirement claim or appealing a denial, contact us today to schedule a consultation to learn more. 

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May 16, 2025 | By Aaron D. Wersing | Read Time: 4 minutes | Federal Retirement

Minimum Retirement Age (MRA) for Federal Employees

The vast majority of federal employees look forward to enjoying the federal government’s generous retirement package. Yet there is no well-defined minimum retirement age for federal employees because there are several different kinds of early retirement. Thus, the minimum retirement age for federal employees hinges on the type of retirement. These forms of retirement depend, in turn, on things like the employee’s health status and years of federal service. The upside of this arrangement is that federal employees have significant flexibility when considering retirement options. However, there are downsides that you should consider as well.  We’ll unpack the various minimum retirement ages for federal employees in this article. We’ll also delve into what you can do to help minimize any negative consequences of early retirement. However, if you have more specific questions or want legal advice for your personal situation, our firm offers nationwide consultations to assist federal employees across the country. Call us today. What Is the Minimum Retirement Age (MRA) for Federal Employees? Minimum retirement age varies based on the federal retirement system. Minimum Retirement Age in the Civil Service Retirement System  If you are an older employee who joined the federal service before 1987, you may be under the Civil Service Retirement System (CSRS). Employees under CSRS can technically retire at any time. Retire under FERS at age 62 with 5 years of service, age 60 with 20 years, or at your Minimum Retirement Age (MRA) with 30 years. You can also retire at MRA with 10 years of service, but benefits will be reduced. There are some exceptions to this rule, however. We’ll explore those in a moment. Calculating Minimum Retirement Age Under the Federal Employee Retirement System If you began your federal career in or after 1987, you are under the Federal Employee Retirement System (FERS). Calculating the retirement age depends on your year of birth. The Minimum Retirement Age (MRA) for FERS employees is 55 to 57, depending on birth year. Employees born before 1948 have an MRA of 55. Those born in 1970 or later have an MRA of 57. Individuals born between 1948 and 1969 have an MRA that increases gradually between 55 and 57 based on their birth year. If you were born before 1948, then you can retire at 55. If you were born in 1970 or later, you can enjoy minimum retirement at 57. And if you were born between 1948 and 1970, your minimum retirement age will be between 55 and 2 months and 56 and 10 months. However, there’s an additional fact that bears mentioning. Under FERS, you may not receive your complete retirement annuity even after you reach your minimum retirement age. Start receiving Social Security retirement benefits at age 62, but get full benefits at your full retirement age. Increase your benefit amount by delaying benefits up to age 70. For instance, if you have fewer than 30 years of federal service when you reach your retirement age, the government will reduce your retirement benefits by 5% for every year that you are under 62. Retire at age 60 with 28 years of federal service and receive 90% of your government retirement annuity. Similarly, if you retire at age 55, you can expect to receive just 65% of your retirement benefits.  Year of Birth Minimum Retirement Age (MRA) Before 1948 55 1948 55 and 2 months 1949 55 and 4 months 1950 55 and 6 months 1951 55 and 8 months 1952 55 and 10 months 1952-1964 56 1965 56 and 2 months 1966 56 and 4 months 1967 56 and 6 months 1968 56 and 8 months 1969 56 and 10 months Minimum Retirement Age (MRA) 57 According to the U.S. CBP, Here is a chart for Minimum Retirement Age (MRA) Exploring Alternative Retirement Plans Under both FERS and CSRS, employees can use several pathways to retire before the minimum retirement age. Specifically, federal employees can retire early through one of three situations: If you want to learn more about these options, it’s best to contact a federal employment attorney. Is There a Mandatory Retirement Age for Federal Employees? Generally, no. Mandatory retirement ages exist only for federal law enforcement officers and firefighters. Regardless of whether they are under FERS or CSRS, both law enforcement officers and firefighters have to retire at age 57, assuming they have 20 years of service. That said, an agency head can choose to allow a law enforcement officer to serve until 60 if the agency head finds that the employee’s service benefits the public interest.  Ready to learn more about achieving early retirement? Reach out to us today and let’s explore your questions together! It can be overwhelming to figure out your best options for retirement. And your agency’s human resources department may not have the answers you need. If you want accurate legal answers rather than vague responses and bureaucratic red tape, contact an experienced federal employment attorney. With the right legal counsel, you can get a clear picture of your retirement options and prepare your next steps. Our team at the Federal Employment Law Firm of Aaron D. Wersing is 100% committed to serving federal employees and making their lives easier. Our goal is to make it as easy as possible for our clients to reach their retirement goals and enjoy life after the federal government.  We recognize many people think you need large amounts of cash on hand to even speak to an attorney. That couldn’t be further from the truth. We care about you and your story, set up your consultation today by calling us at 1-866-612-5956. You can also contact us online. 

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May 16, 2025 | By Aaron D. Wersing | Read Time: 4 minutes | Federal Retirement

Discontinued Service Retirement (DSR): What Is It?

A discontinued service retirement is a special type of retirement for employees who receive an involuntary separation from the federal service. In most cases, DSRs provide eligible employees with an immediate annuity payment. However, this annuity payment can be less than what an employee would normally receive. Many federal employees are unfamiliar with what Discontinued Service Retirement (DSR) is or how it differs from other types of retirement. Read on to find out whether DSR might apply to your situation. Understanding Your Discontinued Service Retirement Eligibility There are three main requirements to obtain a DSR. First, you need to have received an involuntary separation. Second, you have to meet certain age and service requirements. Third, you must not have rejected a “reasonable offer” of employment from your agency.  Discontinued Service Retirement (DSR) allows federal employees facing involuntary separation to retire early with an immediate annuity, even if they do not meet standard age or service requirements. This annuity may be reduced based on service length and retirement age. Obtaining an Involuntary Separation The key feature of a DSR is that it only applies to employees with involuntary separations. The Office of Personnel Management (OPM) considers several following situations to qualify as “involuntary separations.” These are just a few situations that qualify as “involuntary separations.” Contact a federal employment attorney to learn more about whether your situation is an involuntary separation. Age and Service Requirements Discontinued service retirement (DSR) allows federal employees separated through no fault of their own to receive an immediate annuity, potentially reduced by age. Eligibility requires involuntary separation not caused by misconduct and fulfillment of age and service conditions. Assuming your separation was involuntary, you need to meet several other requirements to be eligible for a DSR annuity. First, you need to be at least 50 years old and have at least 20 years of federal service. Discontinued service retirement applies to those involuntarily separated, except for misconduct or delinquency, with at least 25 years of service or age 50 with 20 years of service. They receive an immediate annuity. Another important factor is the retirement service that covers your position. There are two primary retirement systems in the federal government. The first is the Civil Service Retirement System (CSRS), which applies to more senior federal employees. The second (and far more common) retirement system is the Federal Employee Retirement System (FERS). Both CSRS and FERS employees can receive a DSR. However, the requirements and procedures for obtaining a DSR vary between those two retirement systems. The differences are quite nuanced, so you should consult a knowledgeable federal employment lawyer for more information. The Reasonable Offer The final requirement for obtaining a DSR is that you must not have refused a “reasonable offer” from your agency. To be a reasonable offer, you must be offered a position in writing that is: The position must also have the same work schedule. If you reject an offer that meets all of these criteria, then you cannot obtain a DSR.  How to Get a Discontinued Service Retirement Assuming you meet these requirements, your agency should automatically provide you with a DSR annuity. But in some cases, your agency may first ask you to provide certain kinds of information to confirm your eligibility.  Receiving a DSR can reduce the amount of your retirement annuity according to your retirement age. Specifically, for employees under the CSRS system, receiving a DSR reduces your other retirement benefits by one-sixth of one percent for every month that you are under age 55 when you retire. For instance, a CSRS employee that retires at age 47 will receive only 84% of their annuity because of their early retirement.  For all FERS employees with a DSR, you can calculate your FERS retirement using the typical calculation for non-disability retirements here.  Want to Learn More About DSR? We Can Help DSRs are poorly understood by most federal employees. In fact, even federal human resources departments can be unfamiliar with DSRs. As a result, your agency may wrongfully deprive you of a DSR after you receive an involuntary separation.  If you want to learn more about DSRs or think that you might be eligible for one, our firm proudly offers services to federal employees nationwide. Contact a skilled employment attorney immediately. A qualified federal employment lawyer can review your personnel file and apply the law to your situation. They can also help you understand your options and file a claim with your agency. But for obvious reasons, you need to have the right kind of lawyer if you want to maximize your chances of prevailing in court.  If you’re looking for legal representation you can trust, reach out to the Federal Employment Law Office of Aaron D. Wersing, PLLC. Our team of dedicated legal professionals is highly experienced with federal employment issues of all kinds. And we are dedicated to preserving and protecting your rights as a federal employee. Give us a call today at 866-612-5956 or contact us online today to set up your initial consultation. You can also set up an appointment with us online and read about our past results.

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Apr 15, 2025 | By Aaron D. Wersing | Read Time: 3 minutes | Federal Retirement

Will You Be Penalized for Retiring Early as a Federal Employee?

With the freedom retirement brings, many of us look for ways to retire earlier. Others retire early due to a change in circumstances. As a federal employee, early retirement may be available depending on your age and years of service. Contact the Federal Employment Law Firm of Aaron D. Wersing PLLC to discuss retiring early from federal service. Our firm focuses exclusively on issues related to federal employment, so you can rely on our experience to guide you as you consider or plan for early retirement. What Are Your Retirement Options? The Federal Employees Retirement System (FERS) covers federal employees who started working for the government on or after January 1, 1987. Under FERS, you have several retirement options, including: Your eligibility depends on your years of service and whether you have met the minimum retirement age (MRA).  Minimum Retirement Age Your MRA depends on what year you were born:  When you retire at your MRA, you typically forfeit part of your benefits. Voluntary Retirement You can voluntarily retire when you meet the requirements of the table below: Minimum Age Minimum Years of Service 62 5 60 20 MRA 30 (without penalty) MRA 10 (with penalty) You can also voluntarily retire under special provisions for military personnel, emergency services, or air traffic controllers at any age with 25 years of service or age 50 with 20 years of service. Early Retirement You can receive early retirement if a significant percentage of your agency’s employees will be separated or have their pay reduced because your agency is undergoing a: Your agency head must also request the U.S. Office of Personnel Management (OPM) issue a Voluntary Early Retirement Authority (VERA). Federal agencies offer early retirement using VERA to reduce age and service requirements or VSIP to provide lump-sum separation incentives. You can qualify for early retirement at any age with 25 years of service or age 50 with 20 years of service. Otherwise, you typically qualify when you reach age 62. Disability Retirement You can qualify for disability retirement if: You can apply at any age, but if you are under 60, your benefits can stop if you medically recover or return to work. Deferred Retirement Former federal employees can qualify for deferred retirement if they: You can meet the service requirements if you arrive at your MRA and have ten years of service or turn 62 with five years of service. Phased Retirement Under phased retirement, you work part-time and receive partial benefits over several months to years. Phased retirement can be an effective option for many who want to space out the retirement process. Are There Penalties for Retiring Early? Depending on the type of retirement, your benefits may be reduced if you retire before age 62.  Specifically, if you take voluntary retirement at your MRA with ten years of service, your annuity is reduced by 5% each year you are under 62. If you take deferred retirement based on reaching your MRA and having ten years of service, your annuity is reduced by 5% for each year and 5/12 of 1 % for each month under age 62. Can You Avoid the Early Retirement Withdrawal Penalty? If you voluntarily retire early, you can postpone receiving benefits to reduce or avoid the penalty. If you postpone: The closer to age 62 you start receiving benefits, the smaller the penalty. Speak with a Federal Employment Attorney If you are a federal employee, early retirement can be a great option. Contact the Federal Employment Law Firm of Aaron D. Wersing PLLC today to discuss whether early retirement may work for you and help you start planning.

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Dec 26, 2024 | By Aaron D. Wersing | Read Time: 5 minutes | Federal Retirement

Can You Lose Your Federal Retirement Benefits If Fired? Guidance for Federal Employees Nationwide

In addition to competitive pay, federal employees enjoy good benefits and a generous pension. What’s more, federal employees with at least one year of service have significant rights with respect to their job security. Federal employees have a reputation for being hard to fire because of these rights and the corresponding processes. Nevertheless, agencies may fire federal employees for various reasons, including poor performance, misconduct, or downsizing. If you’re a federal employee, you’ve probably wondered, can you lose your federal retirement benefits if fired? How Federal Retirement Benefits Work? The Federal Employee Retirement System (FERS), administered by the Office of Personnel Management (OPM), awards retirement benefits to eligible employees. FERS covers employees who started their service with the government after January 1, 1987. The Civil Service Retirement Act (CSRS) covers federal employees who started working for the government before that date. FERS is a retirement program that provides benefits from Social Security, a Thrift Savings Plan (TSP), and a Basic Benefits Plan. The first two are transferable to other jobs if a federal employee leaves before retirement. Employees are vested in the TSP after three years and in an annuity after five years. However, they always retain their own TSP contributions and government matching funds, even if terminated before three years of service. For example, the federal minimum retirement age for employees born in 1970 or later is 57. Although the eligibility rules vary slightly depending on service length, federal employees with more than 10 years of service receive an annuity immediately upon reaching their MRA. Employees with 5-10 years of service can receive an annuity starting at age 62.  Federal employees with at least 10 years of service can elect to take an immediate retirement or defer it. FERS reduces immediate retirement benefits by 5% per year for each year the employee is under age 62. Disability and early retirement may have slightly different timelines depending on the employee’s age and years of service. If you have questions about your federal retirement benefits, our firm proudly offers services to federal employees nationwide. A federal employment lawyer can provide advice on your eligibility and the benefits available to you. Do Federal Employees Lose Their Retirement If They’re Fired? The short answer is no. Unfortunately, the misconception that you can lose your federal retirement benefits if fired persists even among federal employees. Many employees incorrectly believe that they will lose their federal retirement benefits if the agency fires them. Federal employees typically do not lose their retirement benefits if they are fired, provided their retirement is vested. Basic disciplinary actions or termination do not affect earned retirement benefits. However, convictions for certain crimes, such as treason or espionage, can result in forfeiture of federal retirement benefits. Keep vested pension funds after termination. However, entitlement to the full pension amount depends on specific conditions, and you might lose some or all of it in certain cases. Resigning from a federal job is less severe than removal, preserving the integrity of your employment record. Resigning allows you to give notice, prepare for departure, and leave on good terms with your employer. Employees unaware of this may be tempted or pressured to resign if they know they are about to be fired. These employees are often under the wrong impression that by resigning, they can save the benefits they would otherwise lose. This was exactly the situation in Morrison v. Department of the Navy. In that case, the Department of the Navy alerted an employee that an adverse employment action was pending against him. The Department urged him to resign to avoid losing his retirement benefits. Ruling on the case, the Merit Systems Protection Board (MSPB) noted that retirement benefits earned over the course of a federal career “are generally available upon separation from federal service, even when the separation is agency initiated.” To be clear, this means that when an agency fires a federal employee—whether for cause, poor performance, reduction in force, or otherwise—that employee remains entitled to any vested retirement benefits. There are very limited exceptions to this rule (discussed below), but for the vast majority of federal employees, they will never be an issue. How Federal Employees Can Lose Their Retirement Benefits? As mentioned above, there are only a few narrow circumstances in which federal employee will lose their retirement benefits. Under 5 U.S.C. § 8312, federal employees forfeit their retirement benefits only if they are convicted of one or more specific federal crimes. There are more than 20 in total, each covering an act against the national security of the United States, including: Related statutory sections cover additional crimes that would render a federal employee ineligible for benefits. These include: Federal employees who do not commit any of those crimes don’t have to worry about losing their benefits. Do Fired Federal Employees Get a Pension? Employees are vested in the TSP after three years and in an annuity after five years. However, employees always retain their own TSP contributions and the government’s matching contributions, even if terminated before three years of service. Can Federal Employees with Voluntary Early Retirement Lose Their Retirement Benefits If Fired? The Voluntary Early Retirement Authority (VERA) allows government agencies to temporarily reduce the minimum age and service requirements for retirement benefits. Agencies usually use VERA to offer employees an incentive to retire voluntarily, often during a restructuring, downsizing, or reorganization. Rather than involuntarily reducing the number of employees at the agency, it may make VERA offers or Voluntary Separation Incentive Payments (VSIP) to willing employees. Unlike with FERS or CSRS, federal employees fired for poor performance or misconduct cannot take advantage of discontinued service annuities under VERA. However, they may still be eligible for a deferred benefit. Federal employment lawyers familiar with government retirement plans can help you assess your options. If you accepted a voluntary early retirement offer from a government agency, a federal employment lawyer can also advise you of your rights moving forward. Wondering If You’ll Lose Your Benefits After Being Fired?...

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Dec 26, 2024 | By Aaron D. Wersing | Read Time: 6 minutes | Federal Retirement

Master the Steps to Federal Disability Retirement Now

Federal employees who experience disability often face considerable stress. From handling pain and multiple doctor appointments to worrying about finances and an uncertain future, a federal employee can be overwhelmed. The last thing that a disabled federal employee should have to deal with is filing complex paperwork to apply for federal disability retirement benefits.  At the Federal Employment Law Firm of Aaron D. Wersing, PLLC, our federal employee disability retirement lawyers assist clients nationwide, taking the worry out of applying for benefits. We help our disabled-federal-worker clients so that they can focus on their health and their families. Our hands-on approach keeps our clients informed throughout the entire process, from completing the initial paperwork to the appeal of benefit denial. We are experienced in all aspects of Federal Employees Retirement System (FERS) disability retirement benefits so that federal employees don’t have to be. For assistance, please contact us online or call (833) 833-3529 today. Requirements For Applying For FERS Disability Retirement To be eligible for the FERS disability program, federal employees must have worked in a covered position for at least 18 months. Additionally, the employee must have become disabled during their employment, and the disability is expected to last for at least one year. Importantly, however, a work-related injury or illness need not have caused the disability. Federal employees can apply for disability retirement benefits at any age. What Disabilities Qualify for Federal Government Disability Retirement Benefits? To qualify for federal government disability retirement benefits, an employee must experience either a physical or mental disease or injury. The employee’s disability must prevent “useful and efficient service” in the employee’s current job with the federal government. Essentially, the federal employee must be unable to perform one or more essential job functions of their current position. If the employing federal agency can accommodate the worker’s medical condition, the employee may continue to work in his or her current position. In that case, the employee will not be eligible for federal disability retirement. Alternatively, if the employing agency can transfer the disabled employee to a different job, known as the accommodation of last resort, the employee will not be entitled to disability retirement benefits. The new job should be at the same grade or pay level and in the same commuting area. In short, the employee may apply for federal disability retirement only if the employing agency is unable to accommodate the employee’s disability. Is It Hard to Get Federal Disability Retirement? Qualify for Federal Disability Retirement by Providing Extensive Medical Documentation That Proves How Your Condition Limits Your Ability to Perform Job Duties. Secure Detailed Medical Reports, Test Results, and Physician Opinions to Demonstrate the Extent of Your Disability. Five-Step FERS Disability Retirement Application Process Secure federal disability retirement by providing comprehensive medical documentation that proves how your condition impairs your job performance. This process requires detailed medical reports, test results, and physician opinions, which can take significant time to gather. Federal Disability Retirement (FDR) is challenging to obtain due to factors like applicant circumstances and the nature of the disability. Successfully navigating the process requires understanding legal standards, submitting comprehensive medical evidence, and meeting procedural deadlines. There are five essential steps that a federal employee needs to follow to apply for FERS disability retirement. 1. Apply for Social Security Disability Benefits Why? Because when a federal employee applies for FERS disability retirement, the employee must indicate whether he or she has applied for Social Security disability benefits. Remember, you do not have to be approved for SSDI, but you must apply. The applicant also must attach a copy of the Social Security application receipt or award notice to the FERS disability retirement application. If a disabled employee receives Social Security disability payments, the amount of federal disability retirement payments under FERS will be reduced. Importantly, if the Social Security Administration denies disability benefits, federal employees still may be entitled to FERS disability retirement payments. 2. Complete Standard Form 3107, Application for Immediate Retirement Form 3107 is available from federal personnel offices or online here. Federal employees must file their application for federal government disability retirement benefits while still employed with the government or within one year of their separation date.  The Application for Immediate Retirement is several pages long and asks for detailed information, including: Form 3107 also includes the Certified Summary of Federal Service, SF 3107-1. The employing agency completes this certification form to provide a history of the employee’s federal jobs, earnings, and FERS coverage. You can apply for FERS disability retirement even if the agency has not yet completed this form. After the agency completes that certification, the employee must review and sign it, attesting that it is accurate. The agency also should complete the Agency Checklist of Immediate Retirement Procedures, which is part of Form 3107. In addition, depending on your responses to certain questions, supplemental documentation may be required, such as a marriage certificate, W-4 form, or a DD-214, for example. For guidance on how to complete the application, disabled federal employees can review the instructions that accompany the Application for Immediate Retirement. They may also read an informational pamphlet SF 3113 titled Applying for Immediate Retirement Under the Federal Employees Retirement System. 3. Complete Standard Form 3112, Documentation in Support of Disability Retirement Application Disabled federal employees need to provide documents that support their FERS disability retirement application. Standard Form (SF) 3112 includes five main forms, some of which are completed by the applicant and others to be completed by their physicians or agency. In general, employees use these forms to document their medical condition to show that they are disabled and unable to perform their job duties.  The disabled employee must complete Standard Form 3112A, Applicant’s Statement of Disability. On that form, the applicant describes his or her disease or injury and how it affects current job duties. The applicant then lists the physicians and dates of treatment that can support his or her claim of disability.  Next, the federal employee must ask...

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Dec 26, 2024 | By Aaron D. Wersing | Read Time: 4 minutes | Federal Retirement

Federal Retirement and Your Service Computation Date—What to Know

Working for the federal government comes with many benefits. As a federal employee, you can enjoy regular working hours, ample health benefits, a generous retirement package, and some protections against being fired or laid off.  However, many of these retirement benefits depend on your service computation date (SCD).  For that reason, it’s essential to understand what a service computation date is and how to calculate your own service computation date.  Once you understand your service computation date, you can plan your retirement date and assess when you will be able to access certain employment perks.  If you have questions about your federal retirement and your service computation date, call (866) 340-4430 or contact us online today. Our federal employment lawyers are ready to help federal employees nationwide. What Is a Service Computation Date (SCD)? Active Duty Service Computation refers to a method used to calculate an individual’s service time for benefits purposes. This computation involves establishing a Service Computation Date (SCD), which can be an actual or estimated date. Calculate active duty service time using the Service Computation Date (SCD) to determine federal service duration for benefits. Determine federal service benefits using the Service Computation Date (SCD), which reflects actual or constructed federal service duration. SCDs are applicable in both the current Federal Employees Retirement System (FERS) and its predecessor, the Civil Servant Retirement System (CSRS).  That said, there are several different SCDs. A more precise service computation date definition depends on the type of SCD. Below are the four different types of SCDs. Leave Service Computation Date  Your leave service computation date relates to your annual leave accrual. All federal employees gather annual leave at a rate of four hours per pay period during their first three years in service. Determine the rate at which an employee accrues annual leave—4, 6, or 8 hours per pay period—based on the service creditable for leave accrual purposes. Leave SCD determines if the employee earns four, six, or eight hours of annual leave per pay period and appears in block #31 of SF-50. Retirement Service Computation Date  A service computation date is the date the federal government uses to decide your benefit eligibility and when your benefits will begin. Determine retirement eligibility by calculating an employee’s Service Computation Date (SCD), based on Federal service time. The SCD typically corresponds to the start date of an individual’s first Federal appointment under CSRS, CSRS-Offset, or FERS. However, the leave SCD and retirement SCD can vary if you served in the military prior to joining the federal service. Military veterans can choose to add their time in the military to their time in the federal service by “buying back” their military time and making that period of service count towards their SCD. To do this, veterans must submit a “deposit” equal to a small percentage of their military base pay when they were on active duty.  Thrift Savings Plan Service Computation Date  The Thrift Savings Plan (TSP) is a savings and investment retirement account that constitutes one of the core pillars of FERS. The TSP allows the employee to contribute their own funds towards a retirement account. The government will then match the employee’s contributions up to a certain point. It’s almost like a 401K plan operated by the government.  5 CFR §1603 includes a vesting requirement for the funds contributed by the government. Under this requirement, the government’s contributions to an employee’s TSP only vest after the employee has three years of service.  The TSP SCD represents the date that a TSP participant begins to fulfill the three-year vesting period.  Unlike the retirement SCD and leave SCD, the TSP SCD does not include prior military service.  Reduction in Force Service Computation Date  Although rare, federal agencies occasionally lay off employees through a reduction in force (RIF). The agency determines who to lay off first according to seniority. The earlier your federal government RIF SCD, the lower the chance that your agency will lay you off.  Unlike the other SCDs, your RIF SCD can be adjusted by your performance ratings over the previous four-year period. Your appointment type can also affect your RIF SCD. How Can I Calculate My Service Computation Date?  Now that we’ve discussed the concept of the various service computation dates, you might be wondering, What is my service computation date? As you might be able to guess by now, the answer depends on which service computation date you are trying to calculate.  The leave SCD is easy to obtain because it is listed on your SF-50. However, the other SCDs are harder to calculate because they are affected by factors like prior military service and past performance.  For more information on your SCD, you should either contact your human resources office or a federal employment attorney.  Are You Considering Whether to Sue Your Federal Employer? Federal agencies are far from perfect. A mistake by your employer could easily affect your service computation date and your access to government employment benefits.  If you think that your federal employer has incorrectly calculated your SCD or is wrongly denying you benefits, contact the Law Office of Aaron D. Wersing, PLLC.  Over the years, we’ve helped hundreds of federal employees with a wide variety of federal employment problems. We are dedicated to safeguarding the rights of federal employees. Don’t hesitate to contact us or call (833) 833-3529. 

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Dec 26, 2024 | By Aaron D. Wersing | Read Time: 4 minutes | Federal Retirement

Civil Service Retirement System (CSRS) vs. Federal Employees Retirement System (FERS)

One of the greatest benefits of government work is generous retirement. The federal service includes two systems, the Civil Service Retirement System and the Federal Employees Retirement System. Because of the complexity of both systems, employees often have questions about the provisions of each one. We also commonly get asked, CSRS vs. FERS: Which is better? So to help address questions about these programs, we’ll cover the essential characteristics of both systems.  What’s the Relationship Between CSRS and FERS? The Civil Service Retirement System was created in 1920 when Congress passed the Federal Employees’ Retirement Act. At the time, the government was looking for ways to attract and retain skilled workers, and retirement benefits were seen as an important part of that effort. Originally, federal employees had to contribute to their own retirement accounts, but the government also contributed to those accounts. On top of that, all CSRS retirement benefits used a unique formula that took into account an employee’s length of service and highest average salary. Over the years, the CSRS underwent a number of changes, including the addition of survivor benefits and disability benefits. However, by the 1980s, the system was facing a number of financial challenges. Many of the retirement benefits promised under the system had become unsustainable, and there were concerns about the long-term viability of the program. In response to these challenges, Congress passed the Federal Employees Retirement System Act of 1986, which established the FERS. Congress intended FERS to be more cost-effective and sustainable over the long term. FERS did not go into effect immediately. Instead, it only began to come into effect after 1984. Between the years of 1984 and 1987, employees could choose which retirement plan to join. All federal employees entering federal service after 1986 had to use FERS. Despite the creation of the FERS system, the CSRS continues to be a significant part of the federal retirement landscape. Many federal employees who were hired before 1984 still receive coverage under CSRS, so the system remains an important source of retirement benefits for millions of Americans. CSRS retirees replace more pre-retirement income, while FERS retirees can build greater wealth through the TSP to boost retirement income. How Do the Federal CSRS vs. FERS Compare in Retirement Benefits? When comparing CSRS (Civil Service Retirement System) and FERS (Federal Employees Retirement System), it’s essential to note that CSRS offers the same retirement annuity for all retirees who retire at 55 or later, while FERS reduces retirement annuity for those retiring before the age of 62. Additionally, under CSRS, disability retirement amounts to 40% of the employee’s ‘high-three‘ salary. Under the CSRS system, retirement began at age 55. FERS retirement ages depend on birth year, allowing retirement between ages 56 and 60. Special retirement options exist for demanding jobs, such as law enforcement and air traffic control. The retirement annuity is calculated by multiplying the high-three average salary by a percentage factor that varies based on the employee’s length of service. The percentage factor is 1.5% for the first five years of service, 1.75% for the next five years, and 2.0% for each year of service after 10 years. Under FERS, retirement pay is composed of three parts: a basic benefit, a Social Security benefit, and a Thrift Savings Plan (TSP) benefit. The basic benefit implements a similar formula to the CSRS’s “high-three” system. However, the percentage factor is lower, usually around 1%. The Social Security benefit is based on the employee’s earnings history and the age at which they begin receiving benefits. Finally, there is the TSP, which functions like a 401k or another investment plan. Both the employee and the government contribute to the TSP over time. Meanwhile, the employee can invest their TSP funds in one of several investment opportunities. When the employee retires, they can enjoy those contributions and any returns on those investments.  CSRS vs. FERS: Additional Differences and Similarities In several ways, the CSRS was a more generous retirement system than FERS. For instance, under CSRS, all retirees received cost-of-living adjustments, even if they retired young. FERS retirees typically receive a cost-of-living adjustment (COLA) only if they retire at age 62 or older. However, there are some similarities. Both CSRS and FERS offer benefits such as health insurance, life insurance, and survivor benefits. However, FERS benefits are often less generous than CSRS retirement benefits. For instance, CSRS allows all retirees to receive the same retirement annuity as long as they retire at 55 or later. On the other hand, FERS reduces your retirement annuity for anyone retiring below the age of 62. Disability retirement under CSRS is 40% of the employee’s “high-three” salary. Under FERS, the disability retirement is 1.0% or 1.1% of your high-three salary for each year of federal service you have. Thus, an employee would receive less in disability retirement benefits under FERS unless they have over 40 years of federal service.  Still Curious About CSRS vs. FERS? We Offer Nationwide Assistance for All Your Federal Employment Needs If you have questions about federal employment retirement plans after reading this article, that’s completely understandable. To get accurate answers, it’s best to seek out a knowledgeable employment lawyer sooner rather than later. An adept federal employment attorney can explain which retirement system you are under and how that affects your financial future. If your agency has made some kind of mistake, an attorney can intervene on your behalf and help you file a claim. However, it’s crucial to find the right attorney to ensure the best chances of success. For experienced and reliable legal representation, look no further than the Federal Employment Law Firm of Aaron D. Wersing, PLLC. Our team of legal professionals is experienced in all types of federal employment matters, including FERS and CSRS issues. We are committed to safeguarding your rights as a federal employee and ensuring you are rightfully compensated for your federal service. To schedule an initial consultation, call us today at 866-612-5956. You can also schedule an appointment with...

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