Another client of our Firm received a favorable outcome before the Merit Systems Protection Board (MSPB).

Our client was a veteran of the United States Armed Forces and a Federal Agency that we will not disclose due to the nature of the case. Earlier this year, the Office of Personnel Management (OPM) reduced our client’s retirement annuity when he reached the age of 62.

When he separated from civil service, he did not pay a deposit for his post-1956 military service; as such when he reached age 62, OPM reduced his retirement annuity. Federal employees with prior military service are (or should be) acutely familiar with this event, and know it as the “Catch 62” provision.

Typically, the MSPB has found that so long as an employee is informed of the right to make the deposit and the consequences of not making the deposit, then there is no remedy when the Catch 62 provisions are triggered. In certain cases, however, the Board may direct OPM to waive the time limitations and allow the employee to make the deposit and receive the benefit.

Those cases are reserved for situations where it is clear that the employee was never advised of the right to make the deposit or is affirmatively misled by his employing Agency or OPM about the consequences of not making the deposit.

In this case, our client told us that, when he retired, he was told by his retirement benefits counselor that the Catch 62 provisions were not applicable to him. He also contended that he was never counseled about the Catch 62 provisions.

In discovery, we were able to discern these facts: his employing Agency had checked “Not Applicable” in the portions of the retirement counseling pertaining to Catch 62. Furthermore, there was no evidence that the Client was ever informed how much to pay and when. Finally, there was evidence that our Client was affirmatively misled that these provisions would not apply to them because he “was not eligible for social security anyway”.

Shortly before the Pre-Hearing Conference in this case, OPM agreed to rescind its decision reducing the annuity and has allowed our client to make his military deposit. As such, the MSPB dismissed the case in favor of our client.

The favorable outcome will increase our client’s retirement annuity approximately $5,000 per year for the rest of his life. Read more about Catch-62 here.

If OPM reduces your annuity at age 62 under the Catch 62 provisions, do not hesitate to contact an MSPB attorney as soon as you receive word from OPM that they intend to reduce your annuity.

Despite the standardized retirement forms used since the early 1990’s, there are still too many Federal employees who are misled or misinformed about their right to this benefit of federal employment.

The provisions are confusing, and benefits counselors often give poor and misleading information to retirees. Read how the FAA Southwest Region has been advising its employees/retirees even as recently as 2007 by clicking the underlined text.

If you would like to discuss how Catch 62 affects your retirement annuity, contact the Attig Law Firm today.