"...FERS uses a different benefit formula that takes into account any Social Security disability benefits for which you may be eligible.
During your first year of disability, FERS will pay you 60% of your high-3 average salary minus 100% of an approximation of any Social Security benefit for which you qualify. No COLA's will be paid during this year.
(Note that Social Security disability payments and the reduction in your FERS benefit will not begin until 5 months after you qualify for Social Security disability. You will receive full FERS benefits during this period.)
During your second and any future years until age 62, your basic FERS benefit will amount to 40% of your high-3 salary. If you are entitled to Social Security disability benefits, your FERS annuity will be reduced by 60% of the approximate amount of your Social Security benefit. COLA's match the inflation rate if it is 2% or less. If the inflation rate is more than 3%, the COLA will be 1% less than the inflation rate.
The total FERS and Social Security benefit you receive will be equal to at least 40% of your high-3 salary plus 40% of your Social Security disability benefits. You may also get your Thrift Savings Plan account when you become disabled.
Your basic FERS disability benefit will be recomputed at age 62. At that time, you will receive your accrued FERS retirement benefit. In this case your accrued FERS benefit would be based on years of service that include the time you were receiving disability benefits. Also, the average salary used would be based on what you were earning at the time you became disabled, increased by all cost-of-living adjustments under FERS during that period. ..."
This Article is From: www.opm.gov
.
