Facing a medical condition that impairs your ability to perform as a dedicated federal employee can be deeply challenging. It's an emotional time, and the last thing you need is confusion about your financial future. While Federal Disability Retirement (FDR) is a crucial benefit, it is important to compare it carefully with other options available to you, such as regular retirement or Workers' Compensation.
At The Law Firm of John P. Mahoney, Esq., Attorneys at Law, PLLC, we approach this complex decision with the professional guidance you need to protect your rights and your career across the USA.
Key Eligibility: Not All Paths Are Equal
The first step in determining your best option is understanding the core eligibility requirements for each benefit.
Federal Disability Retirement (FDR): This benefit is available to federal employees who have a medically documented condition that prevents them from performing their essential job duties, is expected to last at least one year, and developed or worsened while employed in a position covered under the Federal Employees Retirement System (FERS). You must also have at least 18 months of creditable federal service. A key factor is that your employing agency must certify they cannot accommodate your disabling condition in your current position and that all reasonable accommodation options have been exhausted.
Voluntary/Regular Retirement (FERS): Eligibility depends solely on your age and total years of service, not a medical condition. For example, you need 30 years of service and be at your Minimum Retirement Age (MRA), or 20 years and age 60, or 5 years and age 62 for full benefits. Unlike FDR, regular retirement has no medical documentation requirement.
Federal Employees' Compensation Act (FECA) / Workers' Compensation: This benefit provides compensation for an illness or injury that is work-related. FDR, conversely, can be sought regardless of whether the disability is work-related.
Understanding the Financial Impact
The method and amount of payment differ significantly between options.
| Benefit | Initial Benefit Calculation (FERS) | Benefit After First 12 Months (FERS) | Recalculation at Age 62 |
| FDR | 60% of your "high-3" average salary, minus 100% of any Social Security Disability Insurance (SSDI) benefit. | 40% of your "high-3" average salary, minus 60% of any SSDI benefit. | Your benefit is recomputed to be your "earned" annuity, as if you continued working until age 62. |
| Regular FERS Retirement | Calculated at 1% or 1.1% of your "high-3" average salary multiplied by your years of service. | The calculation formula remains the same. | The calculation formula remains the same, but you may qualify for a higher percentage if you have 20+ years of service. |
It is crucial to know that you generally cannot receive Workers' Compensation and Federal Disability Retirement benefits for the same period and must elect between the two.
Making an Informed Decision
Choosing between FDR and other options is one of the most consequential decisions you will make for your federal career and retirement planning. FDR offers a financial lifeline when a medical condition forces an early separation, but the application process requires extensive medical documentation and a strong, compelling case to the Office of Personnel Management (OPM).
If you are currently facing a debilitating medical issue and are considering your future, you deserve clarity and fierce advocacy. With over 30 years of award-winning federal employment law experience, The Law Firm of John P. Mahoney, Esq., Attorneys at Law, PLLC offers the expertise to help federal employees nationwide navigate these complex decisions.
Don't navigate this critical intersection of career, health, and finance alone. Call us today at (202) 350-3881 for a professional and compassionate consultation.