must elect payments from one or the other. The law prohibits simultaneous
receipt of continuing OWCP payments and a disability retirement annuity
from OPM.
Under current law and regulations, a disability annuity continues until you are
found recovered, restored to earning capacity, reemployed in the Federal service,
or die. Each of these situations is explained below.
Medical Recovery—
If you are a disability retiree under age 60, OPM may require periodic
reevaluations of your medical condition to determine if you have recovered
from your disability. (Any disability retiree under age 60 may have his or
her eligibility for continued annuity payments reviewed at any time it is
considered necessary by OPM.) You pay the cost of providing any medical
information OPM needs to review your medical condition. If OPM finds you
recovered, your disability annuity payments will stop one year from the date
of the medical examination showing your recovery or on the date you are
reemployed in the Federal service, whichever occurs first. After you turn
age 60, OPM will review your medical condition only at your request.
Restoration of Earning Capacity—
If you are a disability retiree under age 60, there is a limit on the amount you
can earn from wages and self-employment and still be entitled to your annu-
ity. Each year, OPM will send you a questionnaire in order to determine your
earnings for the previous calendar year. If your earnings in any calendar year
equal or exceed 80 percent of the current salary rate of the position from
which you retired, your earning capacity will be considered restored. Even if
there is no change in your medical condition, your disability annuity pay-
ments will stop six months from the end of the calendar year in which your
earning capacity is restored or on the date you are reemployed in the Federal
service, whichever occurs first. After you turn age 60, there is no restriction
on the amount of wages or earnings from self-employment you may receive.
If you have been found restored to earning capacity, your earnings for any
calendar year fall below 80 percent of the current salary rate of the position
from which you retired, and you are under age 62, you may request OPM to
reinstate your disability retirement annuity. If you request reinstatement of
your annuity, you must provide documentation showing that your income is
below the 80 percent level and that the disease or condition on which your
disability retirement was approved still exists. If OPM reinstates your annu-
ity, it will begin as of January 1 of the year following the year your earnings
were less than 80 percent of the current salary rate of the position from
which you retired.
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