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.