OPM Disability Retirement Calculator
If you are a federal employee facing a medical condition that prevents you from performing your job, understanding your disability retirement benefits is critical. Calculating your expected income under federal disability rules can feel overwhelming, especially when comparing different retirement systems and factoring in Social Security Disability Insurance (SSDI).
Our OPM Disability Retirement Calculator is designed to help federal employees estimate their monthly and annual disability retirement benefits under both FERS (Federal Employees Retirement System) and CSRS (Civil Service Retirement System). With just a few key inputs—High-3 average salary, years of service, age, and estimated SSDI—you can instantly see a detailed breakdown of your potential benefits.
This guide explains how the calculator works, how to use it, includes examples, and answers 15 frequently asked questions.
What Is OPM Disability Retirement?
The U.S. Office of Personnel Management (OPM) administers federal retirement benefits. If a federal employee becomes medically unable to perform essential job duties, they may qualify for disability retirement benefits under:
- Federal Employees Retirement System (FERS)
- Civil Service Retirement System (CSRS)
Disability retirement provides income replacement when continued federal employment is no longer possible due to a qualifying medical condition.
How the OPM Disability Calculator Works
Our calculator estimates benefits in two phases:
- First 12 Months (Year 1)
- After 12 Months (Year 2 and Beyond)
The formula differs depending on whether you are covered under FERS or CSRS.
FERS Disability Retirement Formula
Under FERS:
Year 1:
- 60% of your High-3 average salary
- Reduced by 100% of your Social Security Disability (SSDI)
After Year 1:
- 40% of your High-3 average salary
- Reduced by SSDI
- Or your earned annuity (whichever is higher)
At age 62, your disability retirement converts into a regular retirement benefit recalculated as if you had worked until age 62.
CSRS Disability Retirement Formula
Under CSRS:
- Benefit is based on 2.5% per year of service (up to 80% maximum of High-3 salary)
- Subject to the 80% rule:
- Combined CSRS disability and SSDI benefits cannot exceed 80% of your High-3 salary.
Unlike FERS, CSRS does not automatically reduce benefits dollar-for-dollar by SSDI, but it applies the 80% cap.
How to Use the OPM Disability Retirement Calculator
Using the calculator is quick and straightforward.
Step 1: Select Your Retirement System
Choose:
- FERS
- CSRS
Your selection determines the formula used.
Step 2: Enter Your High-3 Average Salary
Your High-3 salary is the highest average basic pay earned during any consecutive three-year period in federal service.
Enter the annual amount (not monthly).
Step 3: Enter Years of Creditable Service
Include all qualifying federal service years used for retirement calculation.
Decimals are allowed (example: 12.5 years).
Step 4: Enter Your Current Age
This helps determine your current retirement phase and planning timeline.
Step 5: Enter Estimated Social Security Disability (SSDI)
If approved for SSDI, enter your expected monthly benefit.
If not receiving SSDI, enter 0.
Step 6: Click “Calculate”
The calculator displays:
- Gross monthly benefit (Year 1)
- SSDI offset (if applicable)
- Net monthly benefit
- Annual benefit
- Year 2+ benefit breakdown
- Estimated monthly benefit summary
You can reset anytime to run new scenarios.
Example Calculation (FERS)
Scenario:
- Retirement System: FERS
- High-3 Salary: $90,000
- Years of Service: 15
- Age: 50
- SSDI: $1,500 per month
Year 1:
- 60% of $90,000 = $54,000 annually
- Monthly gross = $4,500
- SSDI offset = $1,500
- Net monthly benefit = $3,000
After Year 1:
- 40% of $90,000 = $36,000 annually
- Monthly gross = $3,000
- SSDI offset = $1,500
- Net monthly benefit = $1,500
This provides clarity for income planning during disability retirement.
Example Calculation (CSRS)
Scenario:
- High-3 Salary: $100,000
- Years of Service: 25
- SSDI: $2,000
Service Percentage:
25 × 2.5% = 62.5%
Gross Benefit:
$100,000 × 62.5% = $62,500 annually
80% Cap:
$100,000 × 80% = $80,000
If combined CSRS + SSDI exceeds $80,000, the CSRS benefit is reduced accordingly.
Important Planning Considerations
1. SSDI Approval Matters
Under FERS, SSDI directly reduces your disability benefit.
2. COLA Adjustments
Cost-of-living adjustments may apply depending on retirement system rules.
3. Conversion at Age 62
At age 62, disability retirement converts to standard retirement benefits.
4. Tax Implications
Benefits may be subject to federal income tax.
5. Official Calculations
Always confirm with the U.S. Office of Personnel Management for official benefit determinations.
Why Use an OPM Disability Retirement Calculator?
- ✔ Instant estimates
- ✔ Compare FERS vs CSRS scenarios
- ✔ Plan income replacement
- ✔ Understand SSDI offsets
- ✔ Improve retirement readiness
This tool helps federal employees make informed financial decisions during a challenging time.
15 Frequently Asked Questions (FAQs)
1. What is the High-3 average salary?
It is the highest average basic pay earned over any three consecutive years of federal service.
2. What is FERS?
FERS is the Federal Employees Retirement System covering most federal employees hired after 1987.
3. What is CSRS?
CSRS is the Civil Service Retirement System covering many employees hired before 1984.
4. Is SSDI required for FERS disability?
Yes, FERS applicants must apply for Social Security Disability benefits.
5. How does SSDI affect FERS benefits?
FERS benefits are reduced by 100% of SSDI received.
6. What is the 80% rule in CSRS?
Combined CSRS and SSDI benefits cannot exceed 80% of your High-3 salary.
7. Can disability retirement be denied?
Yes, if medical documentation does not meet eligibility standards.
8. What happens at age 62?
Disability benefits convert to regular retirement benefits.
9. Are disability benefits taxable?
Yes, generally subject to federal income tax.
10. Can I work while on disability retirement?
There are income limits that may affect continued eligibility.
11. Is there a minimum service requirement?
Yes, FERS generally requires at least 18 months of creditable service.
12. Does military service count?
It may count if properly credited.
13. What if I don’t receive SSDI?
Enter $0 in the calculator to estimate without offset.
14. Is this calculator official?
No, it provides estimates only.
15. Should I contact OPM directly?
Yes, for formal applications and official benefit calculations.
Final Thoughts
Navigating federal disability retirement can be complex, especially when comparing FERS and CSRS rules, SSDI offsets, and future retirement conversions.
Our OPM Disability Retirement Calculator simplifies the process by giving you a fast, structured estimate of your potential monthly and annual benefits. Whether you’re early in your planning or preparing to file, this tool provides clarity and financial insight when you need it most.
Use it today to better understand your retirement income and make confident, informed decisions about your federal future.