CSRS Civil Service 

Retirement System 

Information 

For 

Disability 

Annuitants 

This pamphlet provides 

information of interest 

to persons who retired under 

the Civil Service Retirement 

System (CSRS) because 

of disability. 

United States 

Office of 

Personnel 

Management 

Previous edition is not usable. 

Retirement and
 


Insurance
 


Service
 


RI 30-13 

Revised September 2000 
We provide retirement information on the 

Internet. You will find retirement brochures, forms, 

and other information at: 

http://www.opm.gov/retire 

You may also communicate with us using email at: 

retire@opm.gov 
Table of Contents 

Page 

General Information ...................... 1


Earnings While Receiving Disability
 

Supplemental Annuity Because of Federal
 

Disability Annuity and Office of Workers’
 

How to Contact Us ....................... 2


Disability Annuity Computations ............. 3


General Formula ...................... 4


Guaranteed Minimum .................. 5


Military Retired Pay .................... 6


Civil Service Retirement System Offset ...... 6


Periodic Medical Reviews .................. 6


Retirement Benefits ................... 7


Reemployment in the Federal Service ......... 9


Finding Employment in the Federal Service .... 10
 

Reemployment ..................... 11
 

Future Annuity Rights .................... 11
 

Immediate Annuity ................... 11
 

Deferred Annuity ..................... 12
 

Reinstated Disability Annuity ............ 12
 

Compensation Programs Benefits ........ 15
 

Cancellation or Waiver of Annuity ........... 16
 

Related Information and Publications......... 17
 

i 
General Information 

Disability retirement is a benefit that protects disabled employees who are not eligible for regular 

retirement against the loss of income. 

Disability retirement is not a permanent benefit for 

individuals under age 60. If you have not turned 

60 and you recover from the disabling medical 

condition, work in a position similar to the one 

held at retirement, or can earn income comparable 

to the rate of pay for the position you held at 

retirement, you are no longer eligible for disability 

benefits and your payments must stop. You are 

responsible for proving that you are still entitled to 

disability benefits if the Office of Personnel Management (OPM) asks for supporting documentation. If you do not provide proof, we will suspend 

your annuity payments until we have the documents we need. 

Important: Civil Service Retirement System (CSRS) 

Offset retirees are subject to a reduction in their 

payments from OPM if the Social Security Administration (SSA) pays them a benefit and uses the 

CSRS Offset service to increase that benefit. You 

must apply for SSA disability payments if you are a 

CSRS Offset retiree. Since this may result in an 

overpayment from OPM, you should not spend 

any money you receive from SSA until your annuity from OPM has been reduced. You will need the 

SSA payments to reimburse OPM for the reduction 

which should have been made in the CSRS Offset 

annuity. 

Your annuity may be taxable. For complete information about Federal tax on your annuity, you 

should request Publication 721, Tax Guide to U.S. 

Civil Service Retirement Benefits, from your local 

Internal Revenue Service (IRS) office or from the 

IRS website. 

1 
How to Contact Us 

The Retirement Information Office (RIO) and our 

website are the points of contact for information 

and assistance about retirement. The toll-free number is 1-888-767-6738. Callers who use TDD 

equipment should dial 1-800-878-5707. If you call 

RIO on a telephone within the local Washington, 

DC, calling area, you must dial 202-606-0500. The 

local TDD number is 202-606-0551. Our internet 

and email addresses are inside the front cover of 

this booklet. 

Retirees and survivors who call RIO using a 

touch-tone telephone will be able to use an automated system to take various actions on their 

accounts while they are on the line. To use the 

automated features, the caller must know the 

retirement claim number and his or her personal 

identification number (PIN). The automated system 

is available during and after business hours. 

Using the automated system, annuitants and survivors are able to: 

·	 stop, start, or change Federal income tax withholding 

·	 stop, start, or change State income tax withholding 

·	 request verification of income 

·	 request the current value of their life insurance 

·	 request verification of the survivor benefits they 

have elected 

·	 ask the Office of Personnel Management to mail 

them various retirement forms and brochures, 

including a duplicate 1099R. 

2 
During our business hours, callers who are not 

annuitants or survivors and those who are not calling from touch-tone telephones, as well as callers 

who do not wish to use the automated system, 

have the option to remain on the line and speak to 

a Customer Service Specialist. The Retirement 

Information Office (RIO) Customer Service Specialists are available from 7:30 a.m. to 7:45 p.m., Eastern time, Monday through Friday. They are not 

available on weekends and on Federal holidays. 

If you need to write to us, please use the address 

shown below. 

Office of Personnel Management 

Retirement Operations Center 

P.O. Box 45
 

Boyers, PA 16017-0045
 

Whether you call or write us, please give us your 

full name, your retirement claim number (CSA 

number), and your social security number or date 

of birth. This information will help us identify your 

records promptly. If you also include your daytime 

telephone number in your letter, we will be able to 

call you if we need more information to answer 

your question correctly. 

Disability Annuity Computations 

The amount of a disability annuity is determined 

by your age, length of service, and “high-3” average salary. The “high-3” average salary is figured 

using the highest rates of pay you received over 

any consecutive three-year period (normally the 

last three years before your retirement). A disability 

annuitant receives the greater of: (1) the amount 

obtained under the general formula for computing 

basic annual annuity or (2) the guaranteed minimum disability annuity. Generally, employees who 

can retire under the optional age and service provisions of the law receive the same annuity we 

would pay if they had retired on disability. 

3 
General Formula 

Under the general formula, annuities are shown as 

a percentage of your “high-3” average salary. Your 

high three percentage is determined by a threepart formula based on your length of creditable 

service. You earn: 

1.50 percent per year for the first 5 years 

(7.50 percent) 

plus 

1.75 percent per year for the next 5 years 

(8.75 percent) 

plus 

2.00 percent per year for service over 10 

years. 

After 10 years of service you will have earned 

16.25 percent (7.50% + 8.75%) of your “high-3” 

and, after 30 years, you will have earned 56.25% 

(16.25% + (2% x 20) = 56.25%). By law, the percentage is limited to 80 percent (reached after 41 

years and 11 months of service). Your unused sick 

leave is converted into months and days and 

added to your other service. The formula uses the 

years and whole months only (30 days) of your 

total service. 

We will reduce your annual annuity under the following circumstances: 

1.	 You have creditable civilian service before 

October 1, 1982, during which no retirement 

deductions were withheld from your salary 

and for which you have not paid a deposit. A 

deposit is a payment to the retirement fund 

equal to the amount that would have been 

withheld from your salary if you had been subject to retirement deductions, plus interest. 

The annual reduction is 10 percent of the 

total deposit due. 

2.	 You have creditable civilian service on or after 

October 1, 1982, during which no retirement 

deductions were withheld from your salary 

and for which you have not paid a deposit. 

4 
We will not use this service to compute your 

annuity unless you pay, in full, a deposit equal 

to the amount that would have been withheld 

from your salary if you had been subject to 

retirement deductions, plus interest. We will 

not use nondeduction service performed on or 

after October 1, 1982, to compute your annuity unless you pay the deposit in full. 

3.	 You have creditable civilian service for which 

you took a refund of your retirement deductions and did not repay the deductions plus 

interest. We cannot use this service to compute your annuity. 

4.	 You elect (or are required by a court order or 

the law) to provide survivor annuity benefits. 

Guaranteed Minimum 

The guaranteed minimum disability annuity is the 

lesser of the two following amounts: 

(a)	 40 percent of your “high-3” average salary 

(which provides you with an annuity as if you 

had worked 21 years and 11 months), or 

(b)	 the amount computed under the general formula after increasing your actual years of service by the time remaining between the date of 

your separation and the date you turn 60. 

For example, if you were employed for 14 years 

before becoming disabled at age 48, you would 

add 12 years to your 14 years of service (age 60 ­

48 = 12 additional years) to arrive at 26 years of 

service under (b). In this example, we would pay 

40 percent of your average salary because it is the 

lesser of the two. 

Because of the percentage and age limitations, the 

guaranteed minimum annuity offers no advantage 

to a retiring employee who has completed at least 

21 years and 11 months of service or is age 60 or 

older. 

5 
Military Retired Pay 

Annuitants who are receiving military retired pay or 

have waived military retired pay to receive compensation from the Department of Veterans Affairs 

are not eligible for the guaranteed minimum disability annuity (unless the military retired pay is 

based on a disability incurred in combat with an 

enemy of the United States or caused by an instrumentality of war and incurred in the line of duty 

during a period of war or granted under Chapter 

1223, title 10, U. S. Code [reserve retirement]). 

CSRS Offset 

Annuitants with service subject to withholding for 

both the Civil Service Retirement System (CSRS) 

and Social Security will have their annuities 

reduced if the Social Security Administration (SSA) 

can pay them a benefit based on the portion of 

their Federal service which was under both systems. This is called “CSRS Offset” service. These 

employees must apply to SSA for benefits when 

they separate for disability retirement. We will ask 

SSA whether the individual has applied and is eligible for benefits. If SSA does not award a disability 

benefit and the individual is not yet age 62, we will 

inquire again when he or she turns age 62. Whenever SSA can pay a benefit (or increase a benefit 

otherwise payable) based on CSRS Offset service, 

the law requires that we reduce the monthly annuity we pay. We recommend that you do not spend 

any money you receive from SSA until we have 

reduced your annuity. You will need the SSA payments to reimburse the Office of Personnel Management for the amount you were overpaid. You 

must inform us when SSA determines you are eligible for benefits. 

Periodic Medical Reviews 

Your disability annuity will stop if we determine 

that you recovered from the disabling condition. 

6 
If you retired because of disability and you are 

under age 60, we may periodically review your eligibility. Any disability annuitant under age 60 may 

have his or her eligibility reviewed at any time. 

If we decide to review your case, we will contact 

you to request a current report from your physician 

concerning the status of the medical condition on 

which your retirement was based. We will also ask 

you about your current employment status. If you 

do not respond to our request for information, we 

will suspend your annuity payments. You may ask 

us for an extension if you need more time to 

respond to our request. It is important that we 

have your current address. If you move or change 

your mailing address, please notify us. 

You must pay any expenses for current medical 

evidence to support your continued eligibility for 

disability retirement. Your annuity will stop at the 

end of one year from the date of the medical 

examination or report showing you recovered. 

After you turn 60, we will review your eligiblity 

only at your request. If you make such a request, 

you must furnish medical evidence showing you 

have recovered from the disability for which you 

retired. If we find you recovered, your annuity will 

stop at the end of one year from the documented 

date of your recovery. 

Earnings While Receiving 

Disability Retirement Benefits 

You can work and earn money while you receive 

disability retirement benefits. If you are under age 

60, your disability annuity will stop if we determine 

that you are able to earn a certain income. This is 

known as being “restored to earning capacity.” 

Each year in February, we send a questionnaire to 

all disability annuitants under age 60 asking about 

their earnings during the previous calendar year. 

This survey form is called “Annuitant’s Report of 

Income.” 

7 
Your earning capacity is restored if, in any calendar 

year, your income from wages and self-employment totals at least 80 percent of the current rate 

of base pay for the position from which you 

retired. The Office of Personnel Management 

(OPM) will determine the current rate of base pay 

to establish whether you have reached the 80 percent limit. 

The current rate of base pay is the rate effective 

December 31st of the year for which you are 

reporting your income. Base pay is the amount 

subject to civil service retirement deductions, 

including locality payments, night pay for wagegrade employees, and certain types of premium 

pay for firefighters and law enforcement officers. It 

does not include bonuses, allowances, overtime 

pay, holiday or military pay, or night pay for General Schedule (GS) employees. Nor does it include 

territorial or foreign post differential pay except in 

those positions where such pay was specifically 

made a part of the basic salary. For most GS 

employees, it is the current pay rate for the grade 

and step at which you retired. 

The Federal Employees Pay Comparability Act of 

1990 provides for the establishment of local pay 

areas for GS positions. Regardless of where you live 

now, if you retired from a position with base pay 

set locally, basic pay is determined by the location 

from which you retired. 

If we determine that you are restored to earning 

capacity, you will continue to receive disability 

annuity payments for 6 months from the end of the 

calendar year in which your income equaled or 

exceeded the 80 percent earnings limitation. Then 

it will stop. For example, if your income in 1999 

exceeds the 80 percent limitation, your annuity 

will stop on June 30, 2000. If your income for a 

calendar year exceeds the 80 percent limit, we will 

notify you of the date your annuity will stop. If you 

appear to be immediately eligible for another type 

of annuity, we will send you an application for 

retirement along with the notice of termination. 

8 
Reemployment in the 

Federal Service 

If your medical condition improves to a point 

where you want to go back to work in the Federal 

service, you can apply for a job. You may be reemployed in any position for which you are qualified. 

The law does not require your former agency or 

any other Federal agency to offer you a position. 

If you are under age 60 and reemployed in either: 

(1) a position of different tenure, e.g., permanent 

vs temporary, or (2) a position of the same tenure 

but at a lower salary than the position from which 

you retired, your annuity will continue, but your 

salary will be reduced (see the note on page 10) by 

the amount of your annuity for the period of reemployment. You are still subject to the 80 percent 

earnings limitation. You must report your full salary 

(gross salary, not the reduced amount you receive), 

on the “Annuitant’s Report of Income” survey 

form. This reported amount will be used to see if 

you have exceeded the 80 percent earnings limitation. 

If you are under age 60 and reemployed in a 

position similar in tenure and pay to the position 

from which you retired (such as a permanent fulltime position at your old General Schedule [GS] 

level), you will be deemed to have recovered from 

your disability. Your annuity payments will stop 

when this finding is made. In this case, our finding 

of recovery is based on your employability in a 

Federal position that is similar to the position from 

which you retired. 

If you are under age 60 and we are paying your 

annuity temporarily after you recovered or 

exeeded the 80 percent earnings limitation, your 

annuity payments will stop on the date you are 

reemployed in the Federal service, regardless of 

the type appointment you receive. 

9 
If you are reemployed after you turn 60, your 

annuity payments will continue and your salary will 

be reduced by the amount of your annuity. If you 

are age 60 or older, there is no limit on the amount 

of money you can earn. If you are reemployed in a 

permanent position with a salary equal to or 

greater than the current salary of the position from 

which you retired, you will not be deemed to have 

recovered because of employability unless you specifically request that we find you recovered. If 

you’re found recovered, your disability annuity 

payments will stop when we make this finding. 

Note: You must tell the agency in which you are 

seeking reemployment that you are a civil service 

annuitant. It is up to you to make sure the agency 

reduces your salary. If you are reemployed in the 

Federal service, you must also notify us. If possible, 

provide a copy of the personnel document showing your appointment or provide the full name and 

address of your employing agency. Be sure to give 

your retirement claim number (CSA number). 

Finding Employment in the 

Federal Service 

If we determine you are recovered or restored to 

earning capacity and you seek an appointment in 

the Federal service, you may be eligible for priority 

placement under the Interagency Career Transition 

Assistance Plan (ICTAP). “Priority placement” does 

not mean that your old agency will offer you your 

old job back or find a position for you. You may 

apply at any time after receiving a notice of recovery or restoration to earning capacity from us, but 

no later than one year after your annuity ends. For 

more information about ICTAP, ask us for a copy 

of form RI 30-46, Reemployment Program. 

10 
Supplemental Annuity Because of 

Federal Reemployment 

If your annuity continues during Federal reemployment, you may be eligible for a supplemental 

annuity if your final period of reemployment consists of at least 1 year of continuous full-time service or continuous part-time service which equals 

at least 1 year of full-time service. You must pay a 

deposit to cover any reemployment service performed on and after October 1, 1982, (unless you 

elected to have retirement deductions withheld 

from your salary) to receive credit for the service 

when we compute your supplemental annuity. 

If you complete at least 5 years of continuous fulltime service or continuous part-time service equal 

to at least 5 years full-time service and you are eligible for an annuity based on your separation from 

reemployment service, you can choose to have 

your annuity recalculated under the law in effect 

when you leave Federal service instead of receiving 

a supplemental annuity. You must pay a deposit 

(unless retirement deductions were withheld from 

your salary) to cover the reemployment service to 

qualify for recalculated benefits. 

Future Annuity Rights 

If you recover from your disability or are restored 

to earning capacity, you will want to know about 

your future annuity rights. 

Immediate Annuity 

If your disability annuity stops and you are not 

reemployed in a Federal position with retirement 

coverage, you may qualify for an immediate 

discontinued-service annuity. 

Your discontinued-service annuity will begin the 

day after your disability annuity stops; your health 

benefits and life insurance coverage will continue 

without interruption. 

11 
To qualify for such an annuity you must be at least 

age 50 when the disability annuity stops and have 

at least 20 years of service at the time of retirement 

or have 25 or more years of service regardless of 

age. 

If you are eligible for an immediate discontinuedservice annuity when your disability annuity stops, 

we will compute your annuity under the general 

formula based on your average salary and actual 

service at the time of your retirement for disability. 

Your annuity will be reduced one-sixth of 1 percent for each month you are under age 55. Your 

new annuity will probably be less per month than 

the disability annuity because the computation will 

not include cost-of-living increases paid during 

your disability retirement. By law, cost-of-living 

increases are payable only to people entitled to 

receive an annuity when an increase is granted. 

Deferred Annuity 

If you do not qualify for a discontinued-service 

annuity and you have at least five years of service, 

you will be eligible for a deferred annuity that 

begins when you are 62. You will not be able to 

continue your health benefits and life insurance 

because of the interruption in payments. However, 

you can convert your health benefits coverage and 

life insurance coverage to an individual contract. 

Your deferred annuity will be computed under the 

general formula based on your average salary and 

actual service at the time of your separation for disability retirement. It will be less per month than the 

disability annuity. 

Reinstated Disability Annuity 

We can reinstate your disability annuity at the 

same rate in effect when it stopped if you meet the 

following conditions: 

12 
·	 If your annuity stopped because you were found 

restored to earning capacity, it may be reinstated 

effective January 1 following any calendar year in 

which your earning capacity falls below the 80 

percent limitation, provided: 

(a)	 You are not reemployed in the Federal 

service in any position under the Civil 

Service Retirement System (CSRS) or 

Federal Employees Retirement System 

(FERS), and 

(b)	 You are not medically recovered from the 

disability for which you retired, and 

(c)	 You are not age 62 or older. (If you are 

age 62 or older, you would be entitled to 

a deferred annuity instead of a reinstated 

disability annuity.) 

·	 If your annuity stopped because we determined 

you recovered from your disability on the basis of 

medical evidence, we may reinstate it as of the 

date of a current medical examination showing 

that the disability for which you retired has 

recurred and that your condition is worse than it 

was when we found you recovered, provided: 

(a)	 You are not reemployed in the Federal 

service in any position under CSRS or 

FERS, and 

(b)	 You are not age 62 or older. (If you are 

age 62 or older, you would be entitled to 

a deferred annuity instead of a reinstated 

disability annuity.) 

(c)	 You are not restored to earning capacity. 

·	 If your annuity stopped because we determined 

you recovered from your disability on the basis of 

your employability in the Federal service, you may 

apply for reinstatement of your disability annuity. 

You are eligible for reinstatement, provided: 

13 
(a)	 You are separated from your position 

within 1 year from the date you were 

reemployed because you cannot perform 

your job due to the same medical condition that forced you to retire originally. 

(b)	 You are not restored to earning capacity. 

A request for reinstatement must be supported 

by medical evidence. If you separated from 

the Federal service more than 1 year after your 

date of reemployment, we cannot reinstate 

your disability annuity. You have the same 

retirement rights as any other Federal employee with the same age, length of service, and 

type of separation. That is, you may qualify for 

annuity benefits only if you apply for retirement and you are eligible for an annuity. 

Note: If you were found recovered or restored to 

earning capacity, we cannot reinstate your disability annuity if, after your annuity stops, you complete at least 1 year or more in a job with Civil 

Service Retirement coverage during any 2-year 

period. We cannot reinstate your disability benefits 

if you are employed in the Federal service and you 

elect to transfer to the Federal Employees Retirement System. The reinstatement of your disability 

annuity terminates your right to any other annuity 

based on the same service unless you elect in writing to receive the other annuity instead of the disability annuity. 

If we reinstate your disability annuity, you can 

reenroll in the health benefits and life insurance 

programs. To be eligible to reenroll for health 

benefits coverage, you must have been covered by 

a health benefits plan when your annuity ended. 

You may enroll in any health benefits plan for 

which you are eligible; you are not restricted to the 

plan you had when your annuity ended. To be eligible to reenroll for life insurance, you must have 

been covered when your annuity ended. Only coverage of the type and up to the amount in effect at 

that time can be reinstated. We will send you 

information concerning your reenrollment eligibility when we reinstate your disability annuity. 

14 
Disability Annuity and 

OWCP Benefits 

If you receive a “scheduled award” from the Office 

of Workers’ Compensation Programs (OWCP), you 

may receive both the scheduled award and your 

annuity. A “scheduled award” is usually paid when 

an individual has a work-related disability resulting 

from the loss, or loss of use, of a function or member of the body (such as a hearing loss or the loss of 

an arm). However, if your compensation award is 

based on total or partial disability (i.e., a nonscheduled award such as a back injury or a neurological condition), you may not receive an annuity 

during the same period that you are receiving 

OWCP benefits. If you are receiving OWCP payments, you must promptly notify us of any change 

in the reason for your compensation award (for 

example, your benefit is changed from a scheduled 

award to a nonscheduled award). You will have to 

reimburse the Office of Personnel Management 

(OPM) for any annuity payments you were not 

entitled to. It is your responsibility to minimize any 

overpayments by notifying us promptly. 

You should be aware that if you take a refund of 

your contributions to the Civil Service Retirement 

and Disability Fund while you are receiving payments from OWCP, you have terminated all your 

future annuity rights. This means that if OWCP 

should ever terminate your benefits, you cannot 

receive retirement benefits from OPM. Taking a 

refund also terminates the Civil Service Retirement 

System survivor annuity benefits for your spouse 

and your children. 

If you die while your annuity is suspended because 

of OWCP compensation and your survivors are not 

eligible for death compensation benefits from 

OWCP, they may receive a Civil Service survivor 

annuity, if they are eligible. If your survivors are eligible for both compensation and Civil Service survivor annuity benefits, they must elect which one 

they want to receive. A survivor’s election to 

receive death compensation instead of Civil 

15 
Service survivor annuity will terminate that person’s 

right to survivor annuity benefits. If your eligible 

survivors are entitled to compensation under a 

“scheduled award” or due to a third-party settlement, they may receive both survivor annuity and 

compensation benefits or the third-party settlement 

for the same period of time. 

Cancellation or Waiver of Annuity 

You cannot cancel your disability retirement or 

change it to a non-disability annuity. The Office of 

Personnel Management (OPM) can terminate your 

benefit only if you recover from your disabling condition, are employed in a Federal position equivalent to the one held at retirement, or become 

capable of earning income fairly comparable to the 

current pay of the position from which you retired 

as this pamphlet explains. You may ask us to make 

a recovery finding at any time. In addition, you 

have the right to decline to accept all or any part of 

your annuity by sending a signed waiver to OPM. 

You may revoke your waiver at any time in the 

future by again writing to us, but you will not be 

able to recover the annuity amounts you previously 

waived. 

16 
Related Information and 

Publications 

We hope this pamphlet has helped you. If you 

have other questions about disability retirement, 

you may call the numbers listed on page 2, write 

us, or contact us on the Internet. 

Please be sure to provide your retirement claim 

number (CSA number) and date of birth to allow us 

to identify your records promptly. 

The booklets listed below offer information about 

their respective topics. If you wish to request one 

or more of these booklets, please let us know. 

Title Publication 

Number 

Information for Annuitants RI 20-59 

Information for Survivor 

Annuitants RI 25-26 

Information for Retirees and 

About the Federal 

Employees’ Group Life RI 76-12 

Insurance Program 

Information for Retirees and 

Survivor Annuitants About 

the Federal Employees RI 79-2 

Health Benefits Program 

17 
Retirement & Insurance Service 

Serving over 10 million customers, Federal employees, 

annuitants, and their families.