OWCP: Should I apply for disability payments from OWCP or disability retirement through OPM?
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”. However, you will not be able to receive both at the same time.
If you are eligible for disability retirement through OPM, then apply for it. At the same time, if you are eligible for disability compensation from OWCP, apply for it. 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 disability retirement through OPM. Do not miss this deadline - as discussed throughout this Blog, 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 OPM 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). There are other advantages and disadvantages you should consider - every situation is a little bit different. Contact a lawyer at the Attig Law Firm to discuss your specific OWCP or OPM disability retirement questions.
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 this information is not widely or easily accessible to Federal Employees. We are providing this information to give you, the federal employee, more information, more knowledge and more power. However, we are not providing you with legal advice by giving you access to this information.
