Know the Difference between Regular Retirement and Federal Disability Retirement

Posted by David Bryan on December 6th, 2021

Are you a federal employee? Knowing the benefits of being a federal employee will make you aware of the options for the betterment of your future. Understanding the benefits will also help you make the right decisions for your federal career. After all, one common mistake you can see is disabled federal employees “riding it out” until the retirement age. However, it will be the right approach in certain situations but note that the best options can be found in unknown federal employee benefits. 

Further, the benefit we are talking about is known by different names, including FERS disability retirement, OPM disability retirement, Federal employee medical retirement, etc. But one thing is common in all these things, which is the same benefit. You can consult a professional to know more about these benefits, including FERS special retirement supplement. Moreover, this article will provide you with a closer look at regular retirement vs. federal disability retirement benefits. After understanding the basic benefits, you will be able to utilize your benefits. 

Regular retirement for federal employees 

As a federal employee, you get a three-part federal retirement package including FERS, TSP, and Social Security Income. 

• FERS Pension or Federal Employees Retirement System 

When it comes to federal retirement, many people think about the pension component and their monthly annuity. If you want to qualify for the FERS basic annuity, you will need to meet certain age and service requirements. If you talk about the immediate retirement benefit, you start getting it within 30 days from the date you stop working. If you retire after the MRA or minimum retirement age, you will get reduced benefits by 5% yearly for each year. You can consult a professional to know if you are eligible for FERS special retirement. 

• TSP or Thrift Savings Plan

If you have coverage for the FERS, you also become a part of the three-part retirement, including your basic annuity and Social Security. The TSP is a contribution plan that means the retirement income you will get will be based on how much you and your agency contribute. Moreover, visit a professional to know whether or not you are eligible for FERS special retirement supplement.  

• Social Security 

Now we will learn about the third component of your FERS retirement. If your federal career is at least ten years, you become eligible for social security benefits. You should also make sure if you can retire through FERS special retirement. 

What happens if you can’t keep working and want to retire now?

There is a range of benefits to choose from, but determining the right one can be difficult as you might overlook benefits like Federal Disability Retirement. This is the benefit you need most when you want to take early retirement due to any injury or disability. If you retire through this benefit, you are eligible to receive a monthly annuity before you reach your retirement age. After all, you can consult a professional to know more about this benefit, including FERS special retirement. That’s all.