By far, this is the most common question that is asked during consultations.

The quick answer is “Yes, you should apply for both if you believe you are entitled to both”.  When I say “both”, I am referring to wage loss compensation benefits from  OWCP and federal disability retirement from  OPM.  If you are eligible for  federal disability retirement through  OPM, then apply for it. At the same time, if you are eligible for disability compensation from OWCP, apply for it.

However, you will not be able to receive both wage loss compensation from OWCP and federal disability retirement from  OPM at the same time.  If you are granted both you will have to make an election between the two. If you accept both, and the mistake isn’t caught, it is highly likely that sometime down the road you will get hit with a huge bill from Uncle Sam seeking recoupment of overpaid benefits.

One word of caution – if the Agency removes you from the rolls, you have only one (1) year from the date of separation to apply for  federal disability retirement through  OPM.

Do not miss this deadline – the government loves their deadlines, and they stick to them ferociously. Unless you have legal “good cause” for missing the one-year deadline to apply for federal disability retirement, you will have forever lost your ability to apply for that benefit.

There are reasons why you may or may not want to accept one or the other. The biggest advantage of  OWCP disability compensation payments is that they are currently not taxed – at least as of the date of this post (December 27, 2007).

The biggest advantage of  federal disability retirement is that, with few exceptions, the grant of benefits is permanent and cannot be revoked at the whim of the Agency.

There are other advantages and disadvantages you should consider – every federal employee or postal worker’s situation is a little bit different.

No post on this website is legal advice, is meant to be legal advice, and certainly does not serve as a substitute for legal advice. Information is power, and we are providing this information to give you, the federal employee, with some power. This information is not widely or easily accessible to Federal Employees.

The Attig Law Firm represents Federal employees under FERS or CSRS in their applications for federal disability retirement to OPM. If an application for federal disability retirement is denied, the Firm represents Federal employees under both FERS and CSRS in their MSPB appeals of denials of federal disability retirement applications by OPM.

It is best to consult with a lawyer familiar with Merit Systems Protection Board (MSPB) and disability retirement appeals to discuss the facts and law of your particular case. If you have questions about federal disability retirement under FERS or CSRS, or OPM’s denial of your applications for federal disability retirement benefits under FERS or CSRS, contact an MSPB attorney or a Federal Disability Retirement Lawyer at the Attig Law Firm to schedule a telephone consultation.