Can I collect FERS retirement and Social Security disability? This is a common question among federal employees who are considering their retirement options. The answer to this question can have significant financial implications, so it’s important to understand the rules and regulations surrounding both programs. In this article, we will explore the eligibility requirements, benefits, and the potential overlap between FERS retirement and Social Security disability.
The Federal Employees Retirement System (FERS) is a comprehensive retirement plan that includes three components: the Basic Benefit Plan, the Social Security Benefit Plan, and the Thrift Savings Plan (TSP). The Social Security Disability Insurance (SSDI) program, on the other hand, is designed to provide financial support to individuals who are unable to work due to a disabling condition.
Eligibility for FERS Retirement
To be eligible for FERS retirement, an employee must meet certain criteria. Generally, employees must have completed at least 5 years of creditable service and be at least 50 years old, or have reached their minimum retirement age (MRA) with at least 20 years of creditable service. Employees who have less than 20 years of creditable service may still be eligible for a reduced benefit if they are at least 62 years old.
Eligibility for Social Security Disability
Social Security disability benefits are available to individuals who have worked and paid Social Security taxes for a certain number of years and have a medical condition that is expected to last at least one year or result in death. To qualify for SSDI, an individual must have earned enough work credits based on their income.
Can I collect both FERS retirement and Social Security disability?
Yes, it is possible to collect both FERS retirement and Social Security disability benefits simultaneously. However, there are some important considerations to keep in mind:
1.
Impact on FERS Retirement Benefit:
If you collect Social Security disability benefits before you reach your full retirement age, your FERS retirement benefit may be reduced. This reduction is based on the amount of Social Security disability benefits you receive.
2.
Impact on Social Security Disability Benefit:
If you are receiving Social Security disability benefits and later become eligible for FERS retirement, your SSDI benefit may be affected. Your SSDI benefit may be suspended until you reach your full retirement age, at which point it will be recalculated and potentially increased.
3.
Overlap of Benefits:
The total amount of retirement and disability benefits you receive cannot exceed the amount you would have received if you had only retired under one program. This means that if you collect both benefits, your combined payments may be reduced to reflect the higher benefit you would have received under one program.
Conclusion
Understanding the relationship between FERS retirement and Social Security disability is crucial for federal employees who are planning for their retirement. While it is possible to collect both benefits, it’s important to be aware of the potential impacts on your overall benefit amount. Consulting with a financial advisor or a benefits specialist can help you make informed decisions about your retirement and disability benefits.
