Retirement and Worker’s Comp

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I have a co-worker that is 75 and fully vested for retirement (FERS) but she’s just getting back to work from a Worker’s Comp claim a couple of days a week. She thinks she can’t retire and I’m telling her she can. OWCP shouldn’t affect her retirement situation should it?

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Posted by (Questions: 1, Answers: 1)
Asked on August 2, 2019 6:54 pm
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This is not a simple answer. If your friend remained on the agency rolls in LWOP and was paid compensation from OWCP and returns to federal service, all time on OWCP counts as creditable service. If your friend was removed from the agency rolls and did not file for retirement when removed from the agency rolls and returns to federal service, all time on the OWCP rolls counts as creditable service towards retirement. If your friend filed for retirement when they left the agency, then no, time on OWCP will not count as creditable service. I have a concern when you say this individual is only working a couple of days per week. If they were in a full-time position and now are not working full time or at least not sitting in a full-time position even if only working a couple of days per week, this will change the formula for their annuity computation. And, LWEC, Loss of Wage Earning Capacity monies received from OWCP are not used in the computation of an individual’s high-3 average salary. This is a complicated situation which your friend needs to sit down with a retirement counselor to decide if she is better off continuing to work or to retire.

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Answered on August 2, 2019 7:44 pm
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Well, our HR doesn’t have very good retirement counseling access. Is there a department at OPM that could help her?

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Answered on August 2, 2019 9:25 pm
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No there isn’t. OPM will refer her back to your HRO. And I apologize but without all the facts it is impossible to be more specific.

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Posted by (Questions: 0, Answers: 485)
Answered on August 2, 2019 11:09 pm