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One of the most common questions we receive in our seminars is from CSRS employees on their Social Security. While there aren’t a  lot of CSRS employees who qualified for Social Security there are enough that we felt it necessary to write this article. We have tried to simplify a very complex subject and explain it in a way you can understand.

Windfall Elimination Provision

The Windfall Elimination Provision was passed by the government because they felt CSRS employees were getting Social Security checks that were higher than they should be.    We don’t agree with this logic, but this is why the law was passed.  In a nutshell, the Windfall Elimination Provision reduces CSRS employees Social Security benefits based on how many years they had “Substantial Earnings” per the Chart below:

If you made at least the amount shown on the chart in a given year that year would be counted. If a CSRS employee worked 10 years from 1972-1982 and paid social security in those years and earned $7,000 in each of those years then the employee would have 10 years of “Substantial Earnings”.
Your Reduction
Now that we know how many years of substantial earnings we can find out how much our Social Security will be reduced by referring to another Social Security Chart. The following chart has years down the left-hand side. This is the year in which you turned 62. Find the year where you turn 62 and then find the years of substantial service and you will see the amount your Social Security is reduced.

Maximum Monthly Amount Your Benefit May Be Reduced Because Of The Windfall Elimination Provision (WEP) ELY = Eligibility Year: The year you reach age 62 or became totally disabled (if earlier).

Using our example and assuming our employee turned 62 in 2011 they would have a reduction of $374.50 (using the 20 or less for years of substantial earnings). The more substantial earnings years you have the less the deduction from your social security.

[big_box title="Guest Post by David Fielder" bgcolor="#ffffff" txtcolor="#555555"]
President
Postal Benefits Group

david@postalbenefitsgroup.net

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In this article we will address how to write your letter to your doctors as well as how the compensation works if you are approved for a disability retirement.

Example Letter to Doctor:

(Start example)

Dr. Anyone,

On August 6, 2012, I wrote to you informing you that I had submitted my papers to the United States Postal Service Office of Personnel Management (OPM) requesting a Medical Retirement. You stated to me during my last scheduled appointment with you that you thought that was the best route for me to take other than just quitting. You stated that you would assist me in any way that you could.

Enclosed is a Physician’s Statement which is required by the OPM, along with copies of my bid job description (both personal and professional). I have highlighted exactly what is required from you (minus the copies of my medical records, as I already have those). It is important for me to show the OPM that I canno longer continue to do the work required in my current position as an Sales and Service Distribution Clerk (SSDA), as the repetitive work and heavy lifting, pulling and pushing is debilitating to my health and body. I must show that I have complied with all the tests, surgeries and therapies that you have suggested and completed; but that continued employment in this position is regretfully not conducive to my continuing issues with tendonitis and joint/arthritis issues. They also need to know I have reached “Maximum Medical Improvement” with my condition.

I realize this is additional work for you and I apologize for any inconvenience. This information is time critical. I need to have it as quickly as possible.

Thank You,
[your name]

(End example)

If I am seeing one doctor for my arthritis issues, another doctor for my respiratory condition and another doctor for back issues, Do I need each one to send in a physician statement?

Yes, the employee’s total medical health is taken into consideration. If your arthritis limits your mobility and your back condition limits your ability to lift weight, both conditions have an overall effect on if you can perform the essential requirements of your position.

What will my annuity be if I am approved for a medical retirement?

As a CSRS employee, you are guaranteed a minimum of 40%. However, if you have more than 21 years 11 months of service, your disability will be computed using all your creditable years of service. For example- if you had 30 years of service and were only 52 years old, you would receive credit for all years of service and would receive a disability of .5625% of your high-3.

That wouldn’t be a full annuity because you are forced to leave due to a medical reason three years earlier than a full retirement (which could have added another 6% at full retirement). You would receive this amount plus any additional COLA’s every year that one is granted.

If you are a FERS employee your computation is a bit different. You will receive earned annuity based on actual service if you are age 62 or over, or you are eligible for a regular Voluntary retirement with no age reduction.

If you are age 61 or less the FERS disability is computed at 60% for the first 12 months minus 100% of your Social Security entitlement (if you receive one from Social Security). This means you would receive an amount of 60% of your high-3 the first year. After the first 12 months, you would receive 40% of your high 3 minus 60% of the social security amount.

If you filed for disability from OPM, you are required to also file for disability from Social Security at the same time. This is required because you have Social Security as a component for your retirement and it also has a disability payment for FERS members.

Once you have been approved for Social Security disability, you must immediately notify OPM that it has been approved. If you are approved for both, you must recognize that you are not allowed to keep both of these amounts in total. You would receive this amount until age 62. At that time your retirement would be recomputed and you would receive a new annuity for all years of service plus the years you were retired on disability.

There is no underlying principle of the computation which allows for the offset. It is federal law and if you are under FERS, then you must follow the law. Do not think you can keep the entire OPM amount and the Social Security amount and it will not catch up to you. Understand that the government will catch up with you eventually. Sooner or later, you will have to pay this money back.

What if I want to work doing something else?

If you are approved for disability retirement from OPM, you can still work elsewhere and earn as much as 80% of your base for the grade and level of your last government position. It should be something within your restrictions. If you earn more than 80% while on disability, your retirement could be jeopardized.

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In this article we will give you an example of how a postal employee should describe their job duties as part of the disability retirement process.

Example:

(Start example)

The position of a Sales and Service Distribution clerk assigned to the Anytown Post Office involves the following tasks. Use this as an example then analyze your position in the same detail the next day you go to work. Document every move and every detail.

In the morning, when breaking mail down to be sorted, I will be moving carts and large hampers from the dock area into the facility. This requires me to push equipment that weighs from 45-1200 pounds. Empty weight of a cage (6’x 4’x 3’ with a metal shelf that weighs 25 lbs) that is used to transport mail ~325 lbs and when it is fully loaded with mail, it can weigh up to ~1200lbs I will have to remove the mail from the equipment and it will be in trays (8-15 pounds), flat tubs (5-50 pounds), and mail sacks (variable weights up to 70 pounds).

I am required to stand for 2-3 Hours, intermittently static, when I am sorting mail to a letter case. These trays of mail weigh approximately 15 lbs. when full. The case is approximately 30 inches off the ground and has mail slots of 3” x 4” for mail to be placed in each slot. The mail sorting case looks like a grid and is a total of 56 slots for mail to placed with a total height of 6 feet. I will stand as I sort the mail and be required to place mail in the case reaching from below my waist to 18 inches above my shoulder. This requires a repetitive motion utilizing my upper arms and hands. I will repeat this motion 200-500 times in a 15 minute period.

I am required to stand for 2-3 hours, intermittently static, when I am sorting mail to a flat case. The flat tubs of mail (plastic containers -1’x 1.5’x 1’that weigh up to 50lbs) vary in weight from a few pounds to 50 pounds when full. The case is approximately 30 inches off the ground and has slots for flats that are 10” x 4” for mail to be placed in each slot. The mail sorting case looks like a grid and is a total of 40 slots for mail to placed I will stand as I sort the mail and be required to place mail in the case reaching from below my waist to 1 foot above my shoulder. I will repeat this motion 300-500 times in a 15 minute period. When I sort the mail to the Post Office Boxes in the office the task is similar to casing mail but the dimensions’ include boxes located only 18 inches off the floor to a height of 65 inches.

The mail distribution portion of my position requires prolonged standing, walking, bending, lifting (up to 70 lbs), pulling, pushing/pulling large metal containers (with weights up to 1200 lbs), and reaching above my shoulders and below my waist .

When assigned to the window section of the office, my tasks include selling stamps, accepting mail (letters and flats) and parcels (of all shapes and sizes up to 70 pounds). My job will involve fine manipulation using a computer system. I will have to lift packages across the counter to place them on a scale to be weighted. After the mail is accepted I will have to place the package in a mail cart/hamper/metal container for transport to the rear of the Post Office for dispatch.

The window clerk portion of my position requires prolonged standing, walking, bending, lifting (up to 70 lbs), twisting turning, pushing/pulling carts/hampers/large metal containers (with weights up to 1200 lbs). I will do this multiple times in an hour period depending on how busy the windows are.

I am allowed two 15-minute breaks and a 1/2 hour lunch in a 8 1/2 hour window. (hour 2 – break, hour 4 – lunch, hour 6 1/2- break).

(End example)

*ATTACH THIS TO THE FRONT OF THE JOB DESCRIPTION YOU GIVE YOUR PHYSICIAN

In our next article we’ll address how to write your letter to your doctors as well as how the compensation works if you are approved for a disability retirement.

 Click here for Part 3

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There are thousands of Postal employees who are eligible for a Disability retirement but are unsure if they qualify or they are intimidated of the process. Our goal is to give you a detailed description of what is involved as well as how to provide your documentation in a way that gives you the best chance at being approved.

Applying for a Disability Retirement is an option all federal employees have available. It is a time consuming process and remember you are certifying that you cannot perform your job anymore due to health reasons. There are forms that will need to be completed by your doctor, your supervisor, and yourself.

There are two basic formulas that are followed and one deals with the procedures for CSRS and the other deals with FERS disability. The basic criterion that must be met for both is the following:

Required Criteria:

OPM considers the documentary evidence that you, your physician, and your agency provide. Your claim can be allowed only if the evidence established that you meet all of following criteria:

1. A medical condition, which is defined as a health impairment resulting from a disease or injury, including a psychiatric disease.
2. Disability must last more than one year.
3. Become disabled while serving under FERS or CSRS.
4. A deficiency in service with respect to performance, conduct or attendance, OR in the absence of service deficiency, show that your medical condition is incompatible with either useful service or retention in the position. (Useful and efficient service means fully successful performance of the critical or essential elements of the position-or the ability to perform at that level-and satisfactory conduct and attendance.)
5. Your medical condition has caused a service deficiency.
6. Your employer must certify it is unable to reasonably accommodate your medical condition in your present position and that it has considered you for any vacant position in the same agency, at the same grade or pay level, and within the same commuting area, for which you are qualified for reassignment.
7. You, or your guardian or other interested person, must apply before your separation from service or within one year of your separation. The application must be received by OPM within one year from the date of your separation. This time limit can be waived only in instances involving incompetency.

When should I apply for a disability retirement?

You should consider applying for disability retirement only after you have provided your employing agency with complete documentation of your medical condition and your agency has exhausted all reasonable attempts to retain you in a productive capacity, through accommodation or reassignment. Your supervisor will need to provide a statement for OPM that is contained in the packet.

What forms do I fill out?

Complete SF 2801, Application for Immediate Retirement, and SF 3112, Documentation in Support of Disability Retirement.

What are the service requirements?

For CSRS employees- you must have completed at least five years of creditable Federal civilian service and for FERS employees- 18 months.

What documentation will I need to support my application?

Your doctors will need to provide OPM with statements stating that your condition will not be improving (you have reached maximum medical improvement) AND your condition(s) keeps you from performing theessential elements of your position.

The thing to remember when applying for disability retirement is that you and your Physician need to show a correlation between your illness or disease and the expectations of your job with the agency.

How will my doctor know what the essential elements of my job consist of?

In your medical retirement packet that you receive from your agency, it will contain a copy of your “Standard Position Description” but it does not accurately detail what you do on a daily basis for your job.

Include a detailed account of what you do in your position with the “Standard Position Description” and a cover letter for your physician so he has a clear understanding of what your job truly involves.

In our next article we will go into specific detail of how much detail is needed to successfully be approved for a disability retirement.

Click here for Part 2

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