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Federal disability / local govt pension income

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Latest post Wed, Oct 26 2016 4:52 PM by badfingers. 2 replies.
  • Fri, Oct 21 2016 4:46 PM

    Federal disability / local govt pension income

    Hello all.

     

    I have been receiving a LWEC for over 11 years.  I did return to federal employment June of last year.

    Each year I receive the "income verification" asking my "earned" wages from employment.  I also have the option now to receive a pension from local Govt which I have 15 years of service. I called to ask case examiner if I chose to receive the pension from local govt job, would it affect my LWEC.  He said "I think it would" I countered that the annual request asks for "earnings from current employment" and also asks if I have received any Fed Govt retiree payments (which I have NOT)  I asked for specific rule / law spelling out whether it would affect the LWEC. He said he would send me something within a week. Surprise, he sent nothing. Can anyone point me in the right direction?  Additionally, I do understand after being back in FED employment I should be able to "regain" credit for time receiving the benefits of FECA also.  The information I do have is tough to understand. If anyone can give me more insight on that, I would be greatful.  thanks all, have a good weekend!!

  • Sat, Oct 22 2016 12:52 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on Sat, Jan 1 2005
    • CA
    • Posts 6,363

    Re: Federal disability / local govt pension income

    Your pension from a local government agency has no bearing on the LWEC as it is not "earned income". This situation does not come up that often and probably the CE never had that particular question asked of him before. It may be that he is still researching the issue or is waiting someone to respond to an email.

    OPM, not OWCP, makes the decision about service credit for the time that you received OWCP benefits while working elsewhere. To my knowledge, OPM does not distinguish between LWEC, total disability and/or scheduled award benefits. OWCP's role here, if asked, is merely to confirm receipt of OWCP benefits and the beginning and ending dates for any period of a scheduled award, TTD , LWEC, etc. Your current Federal agency may ask OWCP to provide that information to it for inclusion in your retirement packet whenever you do decide to retire. 

    You will have to elect between that LWEC and your OPM retirement when the time comes. Also, there could be a further reduction to your LWEC once you file for SSA retirement benefits (either early at age 62 or at your full retirement age, which is probably 66 or 66 and some months for you). The reduction, known as the FERS offset, is based upon your years of service under SSA with the Feds. If may not be that substantial in your case since you have at least 15 years of SSA service outside the Feds. (In other words, it won't be the entire SSA benef, just the amount attributed to your Federal civilian service.) Just be aware of the fact that the offset exists and could affect you down the line.

  • Wed, Oct 26 2016 4:52 PM In reply to

    Re: Federal disability / local govt pension income

    I phoned case examiner yesterday, he claims he "has been busy" and hasnt had time to research and find the answer. He claimed he would accomplish that this week. Time will tell.

     

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