By Reg Jones
Q. I am 43 and recently was retired on FERS disability from federal service due to multiple sclerosis. I know that a person can’t make over 80 percent of their base pay and not have their retirement suspended.
I have three questions:
1. When they say base pay, is that just the general base pay for everyone, or does that include the locality pay? I’m in San Francisco.
2. If I’m able to be re-employed (nonfederal) and exceed the 80 percent threshold from this point forward, will I be able to get my federal retirement at age 62?
3. If I make over the 80 percent for a limited time, will I be able to be reinstated after my wages fall below the 80 percent?
A. 1. It includes locality pay, which is a part of base pay, and any other pay from which retirement deductions are taken.
2. Working outside the federal government would not change the fact that your disability retirement would be converted to regular retirement at age 62, whether or not you exceeded the 80 percent limit.
3. If you exceed the 80 percent and your earnings later fall below that level, your benefit would be restored.
July 15th, 2013 at 1:16 pm
I may be wrong but I think after age 60 and before age 62 you can earn any amount and maintain your disability income. I also understand it is a yearly test … so if you work half the year at 79% of your former income and not work the rest of the year … you maintain your disability for that year.