Federal Employee Medical Retirement: Continuation of the Offset Issue

Last Updated on January 22, 2013 by FERS Disability Attorney

As noted previously, the issue of whether or not OPM needs to recalculate one’s FERS Disability Retirement annuity upon losing one’s SSDI benefits should now be resolved.  

The U.S. Office of Personnel Management has been arguing for years, if not decades, that despite losing SSDI payments because the recipient has engaged in substantial gainful activity, that no recalculation is in order because the annuitant is still technically “entitled” to the benefits.  

The argument which the undersigned writer made before a 3-Judge panel of the U.S. Court of Appeals for the Federal Circuit, however, is the following:  How can one “offset” something with nothing?  As King Lear said to his daughter Cordelia when she refused to shower him with flowery praises of love, “Nothing comes from nothing”.  

Whatever word-games one may engage in, one cannot offset an amount of zero against another amount.  Further, since the FERS (and CSRS) Disability Retirement annuitant is allowed to make up to 80% of what one’s former position pays, it made absolutely no sense to penalize the individual who was receiving SSDI but loses it for making too much money, to not place him/her in the same position as one who never received SSDI.  

Common sense seems to have prevailed.  

The security of knowing that, in filing for Federal Disability Retirement benefits from the U.S. Office of Personnel Management, whether under FERS or CSRS, the Courts will actually reverse a nonsensical position of a government agency, is indeed something to smile about.

Sincerely,

Robert R. McGill, Esquire