We are seeing a disturbing trend at OPM in their processing and adjudicating of alleged overpayment cases. For those that don’t know, from time to time, OPM reviews the financial aspects of cases that are currently in pay status. It is possible, after winning federal disability retirement, and going into pay status, for OPM to revisit an annuitant’s case to determine whether OPM is paying the correct amount.
The most common reason why OPM is paying a disabled annuitant too much money is because that person has been approved for social security disability. A disabled federal worker cannot collect the full amount of both social security disability and federal disability retirement. The federal disability retirement benefit is therefore reduced by a portion of the value of the social security disability benefit. More can be read about that offset here (http://andalmanflynn.com/blogs/disability-law/the-social-security-disability-offset-for-fers-federal-disability-retirement-benefits/) but the point is that if a disabled worker receives both federal disability and social security disability, and OPM is not reducing the value of the federal disability retirement benefit, an overpayment will result.
The longer OPM pays the full benefit, without any social security offset, the higher the overpayment amount will grow. There are several things we recommend that disabled workers do when they are approved for both federal disability retirement and social security disability. First, call OPM repeatedly until you reach a representative and let them know you have been approved for both federal disability retirement and social security disability. Second, send to OPM written proof of the social security disability approval. Make sure that correspondence is easily trackable so that you have written proof of notifying OPM. Third, don’t rely on OPM to automatically perform the social security disability offset. Make sure it is done, and monitor the monthly payments you receive to make sure you are not getting too much money.
Taking the above steps will maximize your chances of not being hit with an overpayment notice, or if you are, ensuring the alleged overpayment is as small as possible. However, if you do receive the alleged overpayment notice, you must react immediately. OPM only provides 30 days to appeal the alleged overpayment by (1) challenging the existence of the overpayment, (2) requesting waiver of the overpayment, and/or (3) requesting to repay the overpayment in lower monthly installments.
The disturbing trend referenced in this Blog’s title comes into play in the way OPM handles these cases once the alleged overpayment is contested. Once the Request for Reconsideration is filed within 30 days of the alleged overpayment notice, the case generally sits. And sits. And sits. Months and years can go by with no word, one way or the other, from OPM. What we have seen recently is OPM will then, after an enormous amount of time passes, send a request to the disabled worker demanding one or two pieces of updated information. It could be more detail regarding your other debt, more detail about your condition, or some other minor piece of information. OPM will then provide the disabled worker with an unfairly small amount of time to return that information. If that information cannot be gathered in time, OPM is denying the entire alleged overpayment. OPM is denying requests for extensions at this stage as well, which is unbelievable since the case has typically been sitting for months or years. We have been forced to file appeals to the Merit Systems Protection Board to attempt to correct OPM’s abuse in the area of law.
Do not let OPM take advantage of you based on your disability. If OPM alleges you owe them money, contact an attorney immediately to ensure the overpayment is processed fairly.
Feel free to contact me with any questions.
Peter Casciano
(240) 240-2872