Opinion ID: 2805904
Heading Depth: 2
Heading Rank: 1

Heading: Lucas’ Retirement And Disability Benefits

Text: Lucas was employed by the Federal Government between 1985 and 2007. In late 2006, Lucas applied for disability retirement benefits under the Federal Employees Retirement System (FERS) and for disability benefits through the Social Security Administration (SSA). FERS benefits take the form of a monthly annuity payment. The Office of Personnel Management (“OPM”), the agency that administers FERS annuity benefits, requires applicants to notify OPM as soon as they are awarded SSA benefits in order to reduce the annuity by the entire SSA benefit amount for the first 12 months and by a smaller amount thereafter. On March 26, 2007, OPM sent Lucas a letter notifying her that her application for FERS disability benefits had been approved. Resp’t’s App. 95. FERS annuity benefits are usually approved before SSA benefits and are reduced after the annuitant receives SSA benefits. OPM’s letter explained that the initial payments made by OPM would be “interim payments” until OPM was able to finally calculate the precise amount of her benefits once the SSA benefit amount was determined. The letter advised Lucas that the interim payment was “usually about 80 percent of the amount of your actual annuity payment.” Id. The letter also informed Lucas that she was required to apply LUCAS v. OPM 3 for SSA benefits and to immediately inform OPM of her SSA approval. Id. On March 27, 2007, Lucas was approved for SSA benefits in the amount of $1,755.00 per month. Id. at 93. Lucas claims that she notified OPM that she had been approved for SSA benefits but acknowledges she has no proof of that notification. See Pet’r’s App. 27. On April 19, 2007, OPM sent Lucas a statement that set out the amount of her interim benefits, less Federal Income Tax, for the period of February 3, 2007 through March 30, 2007. Below the statement of benefits, boilerplate language explained that the government was paying interim benefits “until we [OPM] can determine the exact amount to which you are entitled” once Lucas’ SSA benefits were determined. Resp’t’s App. 89. The boilerplate explained that interim payments were being made “at a rate that should be less than [Lucas’] actual earned annuity.” Id. OPM used the lower rate so as “to avoid an overpayment which would have to be received from [Lucas’] future annuity payments.” Id. In the event of overpayment, Lucas would be notified and have an opportunity to respond before OPM would start “withhold[ing] the excess from future annuity payments.” Id. The letter also informed Lucas that her health benefits and life insurance coverage would continue without interruption, but that those deductions would not be itemized in the interim payment statements. Id. at 90.