Printing - FECA-PT2 - National Association of Letter Carriers

Code, and returns to duty under retirement coverage, that period of time is creditable service in
the subsequent computation of retirement benefits. Under CSRS, the individual’s retirement benefit
is the same as if the individual had continued in employment during the period he or she was in
receipt of workers’ compensation. While FERS was designed in such a manner that the total
retirement benefits are roughly equivalent to the CSRS benefit, it is a three-tier system that
includes Social Security, the Thrift Savings Plan (TSP, a defined contribution tier), and FERS (a
defined benefit tier). While the period in receipt of workers’ compensation benefits is creditable
toward the FERS benefit, the FERS tier represents only approximately one-half of the total
retirement benefit. With regard to the other two tiers of benefits, no employer or employee
contributions to the TSP are allowed by law and no wage credits are earned toward Social Security
benefits during the period that an individual is in receipt of workers’ compensation benefits. To
correct that disadvantage for a FERS employee in that situation (since TSP and Social Security
represent approximately 1 percent of post-retirement income for each year of service), the law
employs the simple solution to increase the FERS retirement benefit by that amount (1 percent) for
periods under workers’ compensation. See 5 U.S.C. 8415 (l).
Note: A claimant who has questions concerning creditable time, restoration rights and other
retirement/personnel matters should be directed to the employing agency or the Office of
Personnel Management.
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