Disability Retirement Questions

[Mike Catling]

I have several questions on Disability Retirement.
A little background on me first.
- I am a FERS employee who is at the 21 year mark of his career.
- I have approximately $150,000 in Thrift Savings. I was hoping/planning for a greater amount but my disability has forced a change in my plans.
- I am married with 3 children

Question 1: I am currently still working. Based on the progression of my disability I would like to plan for a date on when I retire. Is there a specified lead time on when I can submit for a disability retirement? If I say July of 2007 to start my retirement do I have any say on when it starts?

Question 2: Concerning my Thrift Savings when can that be withdrawn? I would like to withdraw it to purchase a home I plan to retire in. What will be the Tax penalties for withdrawing it in a lump sum? Our retirement state is planned to be Tennessee. Will I be subject to the 20% Federal Tax penalty?

Question 3: Concerning Retiring based on a disability and me being a FERS employee can and should I file for Social Security Disability? How may that effect my FERS retirement?

Question 4: I am a Desert Storm Veteran and have filed a compensation claim with the VA for my disability. If my VA claim is approved and I receive monetary compensation will it affect my other income from retirement?

Question 5: Lastly I am a retired AF Reserve member and will receive a military retirement at age 62. I am 44 right now.Will receiving this impact the other incomes?

I apologize for all the questions. I am trying to get smart on my options.

Thanks

Mike

[Wheels]

I can help a little.

I don't know if you can plan a date ahead of time to retire on disability but I doubt it. Disability retirements are difficult to come by and take a great deal of supporting evidence. I very much doubt you would have the supporting evidence you need to prove a disability if you were still able to work.

When you file for a FERS disability retirement you MUST file for Social Security disability at the same time.

If you are approved for a FERS disability retirement you may withdraw your money immediately without paying the 10% early withdrawal penalty but they will still deduct the 20% federal tax withholding (this is not a penalty, just an estimate of what federal taxes you might owe). This should be true regardless of what state you retire to.

I can't help you with the military questions.

Hope this helps some,

Dave
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[Mike Catling]

Dave

Your input does help. Every little bit of information I recceive helps. I have so many un-answered questions. I have always looked forward to everything as a challenge in life to over come. I am looking at this as one of those challenges.

I am only still working temporarily because my supervisor has agreed to me holding off on forcing my disability retirement due to my request. I can still perform the job to a limited extent or until I have to move arouund, walk. My disability limits my mobility greatly.
It is visably apparent I have a physical disability. I am forced now to walk with a cane and now depend on my wife to drive our car.
Concerning the question on having all the supporting documentation to request a disability retirement my doctors and supervision are willing to input whatever is required. They, my management, hate to see me go but also do not want to see me and my family suffer at all.

We also hope/pray the VA approval of my disability claim is approved soon.

Thanks

[Wheels]

Mike,

I hope everything goes better for you.

You'll also need a statement from your agency stating that they investigated the possibility of finding you a job that you could do.

I read about a program that the gov't was experimenting with that expedites the filing process. The claim goes electronically to OPM and Social Security at the same time. I don't know what agencies or states were participating. Might be worth looking into.

Keep in mind that you will not receive the social security supplement but hopefully that will be moot and you'll get social security disability instead.

Dave
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