Benefits Highlights

Retirement and Disability Benefits Offered to Federal Employees

There are several retirement and disability benefits offered to federal employees. They are considered “retirement” benefits, but the person could be retireing due to having a disability. These programs are:

Civil Service Retirement System (CSRS) —This is an older system for folks who don’t pay Social Security taxes on their federal employment. For someone to be under this system, they would have to have been hired by their federal agency prior to 1987, when FERS became available. Note that even folks under CSRS pay Medicare tax, and should be eligible for Medicare under the same rules as those who paid Social Security taxes during their working life.

The Federal Employee Retirement System (FERS) became available to federal workers in 1987. FERS retirement serves as a supplement to Social Security benefits,and FERS recipients paid Social Security taxes on their wages.

Federal Worker’s Compensation through the Department of Labor. The third type of disability paymet for federal employees is for folks who became injured while working for the federal government, and who have a job related injury. Unlike state Worker’s Compensation, federal WC does not “settle” a big lump sum, but instead pays a steady % of the person’s wages until they work enough to lose entitlement, or until they no longer have a disability.

You can find out more about these benefits and how they are affected by work by looking at the publications found at: Retirement Pamphlets and Publications

In addition, there is some impact on Social Security benefits for folks who have federal disability, retirement, or Worker’s Compensation. Like regular state-based Worker’s Compensation, the WC benefit may offset the Social Security benefit. Work that was not covered by Social Security tax can cause calculation differences, called the Windfall Elimination Provision. Additional impact on benefits can be caused by Government Pension Offset. See the following links for more information:

The following POMS sections cover these offset programs.

• GN 02608.000 Government Pension Offset
• RS 00605.360 WEP Applicability
• RS 00605.300 Effect Of Other Payments and Pensions
• DI 52001.001 Offset Provisions

There are also good pamphlets on the www.socialsecurity.gov website that cover these issues.

• Government Pension Offset

Terri Uttermohlen