OPM modifies rules for figuring certain employees' retirement benefits

The Office of Personnel Management is changing the way it calculates service toward retirement for certain employees on workers' compensation, agency officials announced last week.

According to an OPM benefits administration letter, federal employees on workers' compensation who hold a full-time appointment but are able to work only part-time now will be credited for full-time service.

OPM's previous interpretation of civil service law held that these employees were not entitled to full-time credit when they worked, for example, four hours per day and received workers' compensation benefits for the other four hours. But a 2005 decision by the Merit Systems Protection Board struck down OPM's interpretation and ruled that full-time credit should be allowed since these employees initially were given full-time appointments.

In the case, David Hatch v. OPM, Hatch was elected to a full-time position with the U.S. Postal Service in 1966, but was injured on the job in 1990 and was carried on the payroll in leave without pay status for almost three years. Hatch received payments through workers' compensation for that period, and in 1993, returned to work at USPS in a limited duty assignment. He was reassigned to a modified letter carrier position in 1995. Hatch was able to work only four hours a day in each assignment and received workers' compensation for the remaining four hours of each day the agency placed him in a leave without pay status.

Hatch retired in 2002, only to find that OPM determined that his service between the date he returned to work and the date of his retirement should be considered part-time service, thus reducing his annuity. MSPB determined that OPM was required by law to award Hatch retirement credit for full-time service for the time he was in a leave without pay status.

The decision now requires OPM to credit service as full-time, provided an employee holds a full-time appointment, is on approved leave without pay for part of the day and receives workers' compensation benefits. If an employee is not under a full-time appointment, the usual part-time rules apply, according to OPM. Also, the decision does not apply to reemployed annuitants, the letter stated.

OPM asked that agencies review payroll files and other records and compile a list of current employees whose retirements are pending who may be affected by the Hatch decision. Additionally, agencies should include those employees who have recently retired and former employees who may be affected by the decision, the letter stated.

"To the extent that agencies can provide their own records on those who have recently retired or are in the process of retiring, it would be retroactive," said OPM spokesman Mike Orenstein.

COMMENTS

  • Shawn... I completely understand what yo are saying. I am also a victim of an on the job injury. My physical injury was my right arm, surgery in 3 places...and continued to do my duty....until my left arm became a problem from abusing it to "hold my position" and one day I would make regular and have the opportunity to a good retirement, like we all want, Right? Wrong! When I could no longer pull 100% and was put to limited duty...my "co-workers" were lead by my Supervisor to harass and humiliate me to tears on a regular basis. They actually got "kudos" on the days I was forced to leave early because I could no longer control my tears. Finally the day came..I had a complete breakdown and the doctor had a difficult time as to whether I should be hospitalized or not. Needless to say I was removed from duty and no longer the "senior ptf" which I was for 4 years. 3 regular positions were witheld for over 3 of those 4 years because I was next to make regular and they didn't want a "office retard", (which they dubbed me because I couldn't lift heavy objects), taking a regular position. Well, to summarize...2 weeks before the documents for a disability retirement were complete, to of the PTF clerks below me made regular. The point being... Through pain, suffering and humiliating remarks...to the point of severe post tramatic trauma, major depression,feeling like you are less of a person than the rest of the world...Did we earn the right to a full benefit retirement???? Heck Yes Shawn..We did and don't you dare give up or stop believing you are worthy of this benefit! Oh, by the way, I did file an EEOC...2 1/2 years and $26,000.00 (in attorneys fees), later...I prevailed and got a whole $8,000.00 out of it AND the P.O. had to post the notice in the lunchrooms that they were found guilty of discrimination. Hang in there Shawn and God Bless.
  • Shawn, On the surface it appears that the actions you say your employer has taken are not legal or proper. Have you talked to your union? I suspect there is more to this story than what you have stated, but it sounds like you need some help from an attorney or your union or both. Ed, I don't think this just applies to one person as you seem to think by your statement. I fail to see how this is in any way a disincentive to return to full time work. It is true, that most federal employees have the ultimate goal of retirement, they do not at the same time expect to retire with the benefits of a full time employee by working less than full time. There are other incentives to strive for a full eight hours of work such as pay and leave.
  • This takes away any incentive to try to return to full time work. Receiving full time credit for half time work is the government way. Was there any offer for changing crafts any effort on the claiments part to increase his skills to perform tasks that were within his limitations? Making this award retroactive is another action toward a welfare state. There has to be some incentive for rehabilitation. Half time work is just that, half time. There is now an additional incentive for employees to stay off work and receive full credit.