Workers’ Compensation vs. Federal Disability Retirement – Choosing between the Two

Workers’ Compensation Vs. Federal Disability Retirement

Both workers’ comp and disability retirement involve medical chart reviews. Read about the difference between these two federal programs.

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Workers’ compensation and federal disability retirement – these are different programs though there are similarities between the two. Both programs pay you benefits if you are disabled due to a disease or injury and cannot perform your job duties efficiently. The disability caused by the injury/illness must be established through a medical record review. Given the significance of medical documentation, attorneys handling disability related cases utilize dedicated medical review services to understand the medical facts involved. Federal government employees who have been disabled due to a work-related injury can apply for early retirement through the OPM (Office of Personnel Management)’s disability retirement program. The application can be made irrespective of whether the disability is work related. Workers’ compensation program is run by the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) and compensates federal workers for a disabling condition that is job-associated. Designed to be a temporary solution, the OWCP aims to return the injured worker back to work as soon as possible. An injured worker may be eligible for both these benefit programs.

Workers’ compensation benefits provided by the OWCP fall into 4 categories:  Wage loss: This is paid to compensate for time lost due to physician appointment, therapies, and/or reduced hours of work due to medical restrictions. The pay rate is 66% of the worker’s salary or 75% if there are dependents.  Medical: This is paid for treatments for the worker’s approved injury and will continue for the lifetime of the injury.  COP (Continuation of Pay): The injured worker will continue receiving his/her regular pay for up to 45 days from the date of the injury, if the injury is a traumatic one.  Schedule awards: If the worker’s approved disability causes a lifetime impairment, he/she may qualify for a schedule award (SA).

An injured worker cannot receive wage loss benefits along with a schedule award, OPM federal disability retirement, or if he/she works in the private sector.

Now, let us look at the federal government disability retirement program. To be eligible for these benefits,

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 The worker must have worked for a federal employer for at least 18 months under FERS (Federal Employees Retirement System) or 5 years under CSRS (Civil Service Retirement System).  The worker must have a disability that is expected to last at least for one year, and must be unable to perform one or more of his/her essential duties.  The employer must not be able to reassign the worker to a vacant position in the same federal agency with the same pay or grade level, and in the same commuting area.  The worker must apply for Social Security Disability Benefits (for FERS only) Whether applying for disability retirement under CSRS or FERS, the application must be made to the OPM or the federal employer within a year of the worker’s separation from federal service. The benefits are an annuity that allows the worker to get to the age of 62. The amount of time the worker receives OPM federal disability retirement programs are taken into consideration when calculating the worker’s years of creditable service. While receiving payments from the OPM, the worker can work in the private sector. If such earnings exceed the 80% earnings cap, the OPM will suspend the worker’s payments. If the worker is approved for both workers’ compensation and disability retirement benefits at the same time, he/she cannot receive both benefits at the same time. Exceptions to this rule are:  If the worker chooses to receive disability retirement benefits, the medical treatment may still be covered through workers’ compensation.  He/she can also still receive a scheduled award through workers’ compensation for any permanent disability they have.

The worker can choose the benefit he/she would like to receive. The OWCP pays more, but it is important to note that it is designed to be a temporary benefit and not a long term one.

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