Concurrent OPM and SSA payments

Previous | Next
 rated by 0 users
Latest post Fri, Jan 13 2017 3:44 AM by AttyMcGill. 14 replies.
  • Tue, Jun 24 2008 11:06 PM

    • soledad1
    • Not Ranked
    • Joined on Wed, Apr 23 2008
    • Posts 7

    Question [=?] Concurrent OPM and SSA payments

    In regards to the question posted yesterday about a person being eligible for both OPM and SSA disability, the discussion was very informative. However, I don't think anybody has addressed the following:

    If an applicant is found eligible for both benefits, we already know the first year SSA payment will be a wash, and from the 2nd year on, the OPM payment will be reduced to 40% of highest 3, and offset by 60% of SSA payment. My questions are these:

    1- Let's say an annuitant is able to start working again, and earnings stay under the 80% OPM rule, so that OPM pension eligibility is not affected. However, earnings are over the SSA monthly limit, which I don't know how much it is now, but it is very low. Obviously, I imagine the person will have to notify SSA to stop payments, or I don't know if they put them in a trial period and keep the checks going for a while. But anyway, if after all is said and done, SSA stops the benefits because of excess earnings, does OPM adjust their payments? (Payments should go up since there is not going to be an SSA offset).

    2- And if that is the case, does anybody know how do they do those adjustments? How long does one need to wait to get the difference? In other words: do they work on these payments on a monthly basis with SSA, or do you have to wait a whole year for them to retroactively correct? That would be an extreme financial hardship, but I don't know how often the two agencies would be doing matchup.

    I hope somebody out there can explain how this goes.

    Thanks a lot.
  • Wed, Jun 25 2008 4:46 AM In reply to

    re: Concurrent OPM and SSA payments

    I believe I have asked a similar question before. You are right, you never seem to get the answer to your question. I have am wondering sort of the same thing.
  • Wed, Jun 25 2008 9:01 AM In reply to

    re: Reply: Concurrent OPM and SSA payments

    Feedback from various clients tell me that once SSD determines you have exceeded your ceiling for income, then you need to inform FERS, and normally within a couple of months thereafter, the adjustment is made; but as with all Federal Agencies, each story is different, and persistence, of being on the telephone almost daily, is what pays off.

    Sincerely,
    Robert R. McGill, Esquire
  • Tue, Feb 2 2016 7:46 AM In reply to

    • FERS95
      Consumer
    • Not Ranked
    • Joined on Mon, Sep 29 2014
    • CA
    • Posts 9

    re: Reply: Concurrent OPM and SSA payments

    Background: I have searched threads and cannot find the answer to my SSA reduction question. I have been on OPM DR annuity since 11-2014 and OPM said they were deducting SSA (reduced by a formula) from my monthly DR annuity payments. Since I never received a "blue book", I don't know how much they are deducting and why. I also applied for SSA in 2014 but was denied, but appealed and do not have a court date yet. I thought I read somewhere last year that case law settled that SSA deduction issue and I should not have SSA reduced by OPM.

    Q: How can OPM deduct SSA from my OPM DR annuity when I do not receive SSA benefits? How do I get that changced. Do I have to fight them by hiring an attorney again to get results? Or, do I just write a letter to them on my owned requesting SSA not be deducted?

     

     

    Thank you,

    Steve

  • Tue, Feb 2 2016 3:15 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on Sat, Jan 1 2005
    • CA
    • Posts 6,357

    re: Reply: Concurrent OPM and SSA payments

    If you are not receiving SSDI, then OPM should not be reducing your DR annuity for that reason.

    If you have not received your Blue Book, then I don't know whether you really know the true reason for the reduction, etc.

    I think you need to talk to OPM and if you cannot get a satisfactory answer about the reason for that deduction, you may want to elevate the issue to your elected representative. (I would try your local Congressman/woman as they have to be re-elected every two years. They tend to be a little quicker at getting answers than senatorial offices as senators only have to stand for re-election every six years. )

  • Wed, Feb 3 2016 7:03 AM In reply to

    re: Reply: Concurrent OPM and SSA payments

    I do not believe in "tooting one's horn", but the case which I was victorious in -- Stephenson v. OPM -- addresses that very issue.  You can Google it, print it out, then forward it to OPM with a letter demanding that the disability annuity be readjusted in accordance with "the law".

    Sincerely, Robert R. McGill, Esquire

  • Wed, Feb 3 2016 10:28 AM In reply to

    • FERS95
      Consumer
    • Not Ranked
    • Joined on Mon, Sep 29 2014
    • CA
    • Posts 9

    re: Reply: Concurrent OPM and SSA payments

    Thank you attorney McGill for your follow up and reference to case law.

    Thank you,

    Steve

  • Mon, Oct 3 2016 7:05 PM In reply to

    • Chico222
      Consumer
    • Not Ranked
    • Joined on Sun, Dec 2 2012
    • NY
    • Posts 6

    re: Reply: Concurrent OPM and SSA payments

    I also receive both SSA Disability & OPM Disability Payments and would like to know if I decided to try to work again and after the nine month trial period for SSA where SSA benefits would stop and then notify OPM of this fact in order for OPM to increase my FERS Disability Pension (i.e without the SSA offset) could this also triiger another medical evaluation by OPM to circumvent this increase to 40% as well as the reclaculation increase at age 62?  (I'm concerned with the question on the medical evaluation form " Have you recovered sufficiently to return to work?" which is a double question)   Also once I notify SSA that I want to try to work again for a trial period (i.e the first month)  would SSA automatically share this information with OPM which could possibly trigger an OPM medical evaluation even earlier?  Also if SSA does a medical evaluation during any time under age 62 because I decided to try working could SSA share those medical results with OPM and OPM use those results in there own medical evaluation of me even if I became over age 60?

  • Wed, Oct 5 2016 3:09 AM In reply to

    re: Reply: Concurrent OPM and SSA payments

    It is rare that SSA and OPM "shares" information for anything; the most that occurs is a cross-checking by OPM to determine if an offset is appropriate because of concurrent receipt of annuities.  Recalculation at age 62 occurs automatically by law, unless the Federal annuitant has previously lost his or her annuity, in which case a deferred retirement is received at age 65.  As for whether or not working at a job might "trigger" a medical questionnaire, the answer is always a "possibly", but that is why it is important for the annuitant to always consider two issues:  staying under the 80% rule, and engaging in work which is identifiably different and distinguishable from what one did while a Federal or Postal employee.

    Sincerely, Robert R. McGill, Esquire

  • Wed, Nov 2 2016 8:42 AM In reply to

    • Chico222
      Consumer
    • Not Ranked
    • Joined on Sun, Dec 2 2012
    • NY
    • Posts 6

    re: Reply: Concurrent OPM and SSA payments

    In the year a FERS disability retiree turns age 60 does the 80% rule still apply since a portion of the year the retiree is under age 60 and a portion of the year the retiree is over age 60?  

  • Mon, Nov 7 2016 2:37 AM In reply to

    re: Reply: Concurrent OPM and SSA payments

    As a practical matter, it doesn't make any difference, because the W-2 or 1099 would not be issued until the following year, and any overpayment suspension would not then be determined until the year after that; by then, you would be 62 or older, and no offset would be imposed, anyway.

    Sincerely, Robert R. McGill, Esquire

  • Thu, Nov 17 2016 9:42 AM In reply to

    • Chico222
      Consumer
    • Not Ranked
    • Joined on Sun, Dec 2 2012
    • NY
    • Posts 6

    re: Reply: Concurrent OPM and SSA payments

    From what I read on the 2015 survey form if someone exceeeded the 80% there annuity would be suspended June 30, 2016 so that if a disabled retiree turned age 60 during the survey year, received the survey form during the follwing February for the year in which they turned age 60 plus exceeded the 80% there disability annuity could stopped effective June,30 2016 in which the disabled annuitant would still be age 60 or age 61 depending upon there date of birth but still not sure if OPM sends out a survey form the following February for the year in which the disabled retiree turns age 60 since the disabled annuitant is both under and over age 60 during the survey year?.

  • Mon, Nov 21 2016 3:04 AM In reply to

    re: Reply: Concurrent OPM and SSA payments

    I would be cautious and adhere to the "safe" approach, and expect a survey in the year following after one turns 60, and still remain under the 80% rule.

    Sincerely, Robert R. McGill, Esquire

  • Fri, Jan 13 2017 12:08 AM In reply to

    • JPLV
      Consumer
    • Not Ranked
    • Joined on Fri, Jan 13 2017
    • NV
    • Posts 1

    re: Reply: Concurrent OPM and SSA payments

    I've been receiving OPM disability pmts for two years. Appealed SSDI, won in Nov 2016 and got a huge lump sum. Forwarded the SSDI acceptance letter with a check dtd 20 Dec 2016 for the full sum owed to OPM.  OPM changed the check date to Jan 2017, then cashed the check. OPM also reduced my base amount (40% of high-three) by another  $1000/month in my Feb stmt, without any explanation.  What should I do? Call them every hour on the hour 24/7?  

    As they say, "no good deed goes unpunished" - so perhaps clients should never inform OPM of SSDI payments...  Since OPM changed the date on the check I sent them, I have to pay a huge 2016 income tax for the 2-year SSDI lump sum of Dec 2016; Basically, all these appeals resulted in a net income loss for me.

  • Fri, Jan 13 2017 3:44 AM In reply to

    re: Reply: Concurrent OPM and SSA payments

    You should consult with an accountant or Tax Attorney as to the issue of check-issuance -- i.e., whether IRS rules are based upon the date you wrote the check and issued it, or when the recipient cashed it or otherwise changed the date of the check without authorization.

         As for OPM, you need to obtain an accounting from them, and yes, it may take such persistence as you describe, but I suspect the lowering of benefits constitutes the offset with the SSDI amount.

    Good Luck (you will need it with OPM)

    Sincerely, Robert R. McGill, Esquire

Page 1 of 1 (15 items) | RSS

My Community

Community Membership New Users: Search Community