Ask The Experts: Retirement

By Reg Jones

Disability retirement

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Q: I have been on disability retirement and collecting Supplemental Security Income disability since 2001 at age 44, GS13/7 approximately 105,000 currently. I have 14 years LEO coverage at 1.7 percent per year, under the special formula and four years prior to my LEO position in a non-covered position at 1 percent. If nothing changes, at age 62, I will have 14 years of LEO coverage, four years of non-covered employment and 17 years of disability retirement. Specifically, what percentage will I get computing my retirement annuity at age 62 — 1.7 percent for 14 years and 1 percent for 21 years?

A: Assuming that you are still disabled when you reach age 62, your disability annuity will be converted to a regular annuity. It will be artificially created by adding your time on the disability roll up to age 62 to your years of actual service. The total will be multiplied by 0.01 and the product of that calculation by your hi-3 on the day you went on disability retirement, increased by any FERS cost-of-living adjustments that have been applied to retiree annuities in the interval.

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