Are you a federal employee who is unable to perform your job duties because of a disability? You may qualify for federal disability benefits under the Federal Employees Retirement System (FERS). You’ll need to file an application for disability benefits with the U.S. Office of Personnel Management (OPM). While you could do that alone, a federal disability retirement attorney can guide you through the process and help avoid red flags and other setbacks.
The Bell Law Group is committed to serving public servants. In this post, our firm will offer a general overview of OPM disability benefits in 2026, eligibility for FERS disability retirement, disability retirement calculations, the application process, and other up-to-date information.
If you need help navigating the FERS, filing an application for disability retirement, or seeking reconsideration of a denied application, our lawyers are here for you. For a free, no-obligation consultation, contact The Bell Law Group today.
Key Takeaways:
- You can apply for federal disability retirement if a condition prevents you from doing your job and your agency cannot accommodate your condition or reassign you to another position with the same pay.
- Eligibility for disability retirement under FERS includes at least 18 months of federal civilian service, a disability that is expected to last at least one year, and applying for Social Security Disability (SSD/SSDI).
- You must submit an SF 3107 (Application for Immediate Retirement) and SF 3112 (Documentation in Support of Disability Retirement) to the OPM within one year of your separation from service.
- Calculating how much you receive each month in federal disability retirement benefits can vary. The FERS will consider your age, years of service, your highest three consecutive years of pay, and how much you receive from SSDI.
- If the OPM denies your application for disability retirement, you can request reconsideration. If the OPM still denies your application after reconsideration, you can file an appeal with the Merit Systems Protection Board (MSPB).
What Is Federal Disability Retirement?
Federal disability retirement allows disabled civil servants to retire early if they’ve fulfilled certain eligibility requirements. The system provides a monthly annuity to federal employees who’ve experienced a severe health condition that prevents them from providing useful and efficient service in their agency.
Do I Have to Be 100% Disabled to Qualify for Federal Disability Retirement?
No, you do not have to be completely disabled in order to qualify for federal disability retirement.
Rather than being unable to work at all, the OPM will consider if you are unable to perform essential duties because of your disability.
Can I Work a Private Sector Job While Receiving Federal Disability Benefits?
Potentially, yes. In many cases, people who receive FERS disability retirement benefits can work a job in the private sector. However, there are restrictions:
- You can only earn up to 80% of your previous federal position’s current salary at your private-sector job, and
- Your job duties in the private sector cannot be the same as the job duties you were unable to perform while in your federal role
About the U.S. Office of Personnel Management (OPM)
The U.S. Office of Personnel Management is the federal government’s primary human resources agency.
The OPM oversees various retirement systems and reviews applications for disability retirement benefits under the Federal Employees Retirement System (FERS) and the older Civil Service Retirement System (CSRS).
A Note on the Civil Service Retirement System (CSRS)
Federal employees who entered service before January 1, 1987 are covered by the CSRS rather than the FERS. There are different eligibility requirements for disability retirement under the CSRS.
We’ll primarily focus on FERS eligibility since the vast majority of current federal employees are enrolled in that system. However, if you are under the older CSRS system, The Bell Law Group can provide guidance and answers about applying for disability retirement and what to do if you are denied.
Core Eligibility Requirements for FERS Disability Retirement
To qualify for federal disability retirement under the FERS, the OPM will note these eligibility requirements:
- Minimum of 18 Months of Service: Applicants must serve at least 18 months in their federal position that is creditable under the FERS.
- Disabled While a Federal Employee: Applicants must be diagnosed with their health condition while they were a federal worker.
- Condition Is Expected to Last at Least One Year: The applicant’s disability, illness, injury, or condition is expected to last for at least one year.
- Agency Cannot Reasonably Accommodate You: The applicant’s agency is unable to make reasonable accommodations that allow the applicant to perform their job duties.
- Agency Cannot Reassign You to a Comparable Position: The applicant’s agency is unable to reassign the applicant to a different position with the same pay in the commuting area.
- Filing Forms within One Year of Separation: Under FERS, the applicant must submit the proper forms and supporting documentation to the OPM within one year of their separation from service.
- Application for Social Security Disability (SSD/SSDI): The applicant must also apply for Social Security Disability.
In some situations, the OPM may also require applicants to undergo periodic medical exams to retain their eligibility for federal disability benefits.
How Is FERS Disability Retirement Calculated?
Federal disability retirement calculations in 2026 will vary from person to person based on their age, years of service, and eligibility for immediate retirement. The SSDI offset will also vary depending on how long someone receives federal disability retirement benefits.
High-3 Average Salary
How much you receive monthly will depend on your “high-3” average pay. High-3 refers to the highest basic pay a federal employee received for 36 consecutive months of service.
For many federal employees, the high-3 covers their most recent three years of service, yet the high-3 can cover a 36-month period earlier in a person’s career in public service.
The 60/40 Formula
There’s a 60/40 formula used for FERS disability retirement based on how long someone receives benefits.
For the first 12 months the formula is:
- 60% of your high-3 salary
- Minus 100% of any SSDI benefits
For 13 months until reaching 62 years of age the formula is:
- 40% of your high-3 salary
- Minus 60% of any SSDI benefits
Age 62+ or Eligible for Immediate Retirement
Once you are 62 years old or qualify for immediate retirement, your federal disability retirement is calculated like normal FERS retirement.
If you are over 62 years old and have less than 20 years of service, the formula is:
- 1% × High-3 Salary × Years of Service
If you are over 62 years old and have more than 20 years of service, the formula is:
- 1.1% × High-3 Salary × Years of Service
Essential Forms for Federal Disability Retirement: SF 3107 and SF 3112
Federal workers must fill out both of these forms when applying for FERS disability retirement:
- SF 3107 (Application for Immediate Retirement)
- SF 3112 (Documentation In Support of Disability Retirement)
Medical Evidence Standards: Proving the Severity of Your Disability for OPM
When applying for federal disability retirement, the OPM does not want a simple diagnosis. Applicants must provide supporting documentation stating that their condition prevents them from performing their essential job duties and that this condition will last for at least a year.
Compelling evidence for the OPM will typically include:
- A narrative medical report from a physician that includes your diagnosis, symptoms, treatment history, and why the employee experiences work limitations as a result of the condition
- Objective medical evidence such as lab results, MRI or CT results, X-rays, surgical records, and evaluations from specialists
The OPM may deny your application if the physician’s assessment fails to connect the disability to work duties, the documentation does not convey the severity of symptoms, there’s a lack of objective evidence, or there is evidence that suggests a federal employee can still do their job.
One-Year Deadline to Submit Forms and Supporting Documentation
You have just one year from your separation of service to turn in these forms and your supporting documentation to the OPM. You can also submit your forms and documents before you leave federal service.
Failure to submit your materials to the OPM within the one-year deadline means you could permanently lose out on your federal disability benefits.
How Long Does OPM Take to Process Disability Retirement in 2026?
This can vary based on the nature of your disability and the evidence and documents provided. Generally speaking, it can take anywhere from three months to a year to process a claim and issue a decision.
Keep in mind that the OPM will take a longer time to process an application if the condition is complex. The length of the process will extend even further if the application is denied and there is reconsideration and appeal.
What Happens to My Health Insurance (FEHB) and Life Insurance (FEGLI) After I Retire?
In most cases, you’ll be able to continue both FEHB and FEGLI following disability retirement as long as you meet eligibility criteria. For both FEHB and FEGLI, this means being enrolled for five years before applying for disability retirement or being enrolled continuously since your first opportunity to enroll.
Termination of Federal Disability Benefits
Federal disability retirement can be terminated if:
- You are determined to be medically recovered from the disabling condition
- You have restored earning capacity, meaning that your wages and self-employment income is at least 80% of the current rate of pay for the position you vacated due to disability
- You have returned to federal service in a role equivalent to the position you vacated due to disability (i.e., administratively recovered)
Potential Reinstatement of FERS Disability Benefits After Termination
Federal disability retirement benefits that have been terminated can be reinstated in certain situations.
- For benefits stopped due to medical or administrative recovery, benefits can resume if the disability recurs and your income does not exceed the 80% threshold.
- For benefits stopped due to exceeding the 80% income limitation, benefits can resume once it has been one year since you earned more than the 80% earning threshold.
What Should I Do If My Federal Disability Retirement Gets Denied?
If you receive a denial letter from the OPM, read through it carefully. The denial letter will explain why your application was denied. This can serve as instructions for what you do next as you appeal to secure your benefits.
- File a Request for Reconsideration: You generally have 30 days from the date of the denial letter to request reconsideration of your application. The reconsideration process allows you to include additional supporting documentation, such as better medical evidence, more specialist opinions, and a better physician’s report.
- Appeal to the Merit Systems Protection Board (MSPB): If the OPM denies reconsideration, you can appeal the denial to the MSPB, an independent federal agency that hears disputes regarding federal employment. You generally have 30 days from the reconsideration denial to file an appeal with the MSPB.
Appealing for FERS benefits can be challenging. Working with a skilled disability retirement attorney or MSPB lawyer can help you find the right supporting documentation to get the benefits you earned.
Why Federal Employees Trust The Bell Law Group
Since 2002, The Bell Law Group has fought for workers and their rights. Our law firm represents New Yorkers as well as federal employees located all over the United States. When you need a lawyer who represents federal workers, you can count on us.
We Focus on Employment Law
The Bell Law Group avoids spreading itself thin. Our firm focuses on employment law matters here in New York and the rights of federal employees all over the United States.
Our law firm can provide guidance on how to apply for federal disability retirement benefits, what you need to know about MSPB appeals, and much more. We’re here to support federal workers every step of the way.
Our Attorneys Have 100+ Years of Combined Experience
Our employment law attorneys bring more than a century of combined experience practicing law. We know how the OPM operates and what they’re looking for in federal disability retirement applications.
When applying for federal disability retirement, our lawyers can help you avoid red flags and craft a sound, strongly worded application for disability benefits. We can also help you navigate reconsiderations and MSPB appeals with confidence.
We Have a Record of Advocating for Public Servants
If you read through our successful case results, you’ll notice multiple examples of helping federal employees get approved for disability retirement. Our attorneys have assisted public servants in:
- Crafting a strong narrative physician’s report that explains the severity of a condition backed by medical evidence
- Obtaining all necessary medical evidence to support eligibility
- Meeting tight deadlines to complete and submit paperwork and other documentation
- Submitting requests for reconsideration when claims are denied
Consultations Are Free, Confidential, and No Obligation
A lot of federal employees are afraid of speaking with an attorney about their situation. They’re worried about how much it will cost to meet with a lawyer and that the details they share could leak and jeopardize their application or appeal.
You don’t have to worry with The Bell Law Group. We provide free and confidential case evaluations with no obligation. You pay nothing to discuss your situation, and all details we discuss will remain private.
Contact The Bell Law Group for a Free Case Review
Whether you’re applying for federal disability retirement or need a guide through the reconsideration and appeals process, our lawyers are ready to help however we can. We’ve got you covered. For a free consultation, contact The Bell Law Group today.
