Long shot that there are FERS experts here, but here goes...
I may need to apply for FERS [Federal Employee Retirement System] Disability and the rules for calculating a disability pension are generally straightforward, based on 60% of your High-3 salary for the first year and then 40% after that (until 62), adjusted by any SSDI. High-3 is average salary over any consecutive 3-year period.
For normal part-time retirement annuities, you use the full-time salary to calculate the High-3 and then apply a proration factor. (3 years FT then 3 years half-time would yield 75% proration factor).
In the chapter on part-time service, there is an exception noted "For disability annuity computations based on either 60% or 40% of high-3: The high-3 is computed using actual rates paid -- i.e. the rates of pay for part-time service are prorated according to the employee's part-time tour of duty; the FERS proration factor is not used." [FERS Chapter 55B2.1-1]
I don't know how to interpret that. Does that mean that the high-3 is locked in from the final 3 years of full time service (since it has the highest amount of pay), or is it based on the last 3 years (highest full time salary, but lower actual pay)?
Year 1 $95000
Year 2 $100000
Year 3 $105000
Year 4 $55000 (half time x $110000)
Year 5 $57500 (half time x $115000)
Year 6 $60000 (half time x $120000)
So, is the high-3 $100000 or $57500? I've scoured every document I can find and this particular case is never explained. I've read Merit System Protection Board legal rulings and there are a couple that are close, and seem to point toward the $57500 amount, but I'm not sure how to find the answer. We do have an HR, but they will only compute pensions for you when you prepare to apply, and I'm not there yet.
Thanks for any assistance or knowledge on the topic.
I may need to apply for FERS [Federal Employee Retirement System] Disability and the rules for calculating a disability pension are generally straightforward, based on 60% of your High-3 salary for the first year and then 40% after that (until 62), adjusted by any SSDI. High-3 is average salary over any consecutive 3-year period.
For normal part-time retirement annuities, you use the full-time salary to calculate the High-3 and then apply a proration factor. (3 years FT then 3 years half-time would yield 75% proration factor).
In the chapter on part-time service, there is an exception noted "For disability annuity computations based on either 60% or 40% of high-3: The high-3 is computed using actual rates paid -- i.e. the rates of pay for part-time service are prorated according to the employee's part-time tour of duty; the FERS proration factor is not used." [FERS Chapter 55B2.1-1]
I don't know how to interpret that. Does that mean that the high-3 is locked in from the final 3 years of full time service (since it has the highest amount of pay), or is it based on the last 3 years (highest full time salary, but lower actual pay)?
Year 1 $95000
Year 2 $100000
Year 3 $105000
Year 4 $55000 (half time x $110000)
Year 5 $57500 (half time x $115000)
Year 6 $60000 (half time x $120000)
So, is the high-3 $100000 or $57500? I've scoured every document I can find and this particular case is never explained. I've read Merit System Protection Board legal rulings and there are a couple that are close, and seem to point toward the $57500 amount, but I'm not sure how to find the answer. We do have an HR, but they will only compute pensions for you when you prepare to apply, and I'm not there yet.
Thanks for any assistance or knowledge on the topic.
Statistics: Posted by K2Retire — Tue Jun 25, 2024 5:37 pm — Replies 0 — Views 113