Revised Application Procedures for Disability Retirement Under CSRS and FERS

SUMMARY: The Office of Personnel Management (OPM) is proposing

regulations to establish uniformity in the application procedures for

disability retirement under the Civil Service Retirement System (CSRS)

and the Federal Employees Retirement System (FERS). The regulations

would allow employees to meet the filing deadline for disability

retirement by submitting applications directly to their former

employing agency or to OPM within 1 year after separation.

DATES: Comments must be received on or before March 17, 1997.

ADDRESSES: Send comments to John E. Landers, Chief, Retirement Policy

Division; Retirement and Insurance Service; Office of Personnel

Management; P.O. Box 57; Washington, DC 20044; or deliver to OPM, Room

4351, 1900 E Street, NW., Washington DC. Comments may also be submitted

by electronic mail to [email protected].

FOR FURTHER INFORMATION CONTACT:

Robert Girouard, (202) 606-0299.

SUPPLEMENTARY INFORMATION: Section 8337(b) of title 5, United States

Code establishes the legal requirements for applying for disability

retirement under the Civil Service Retirement System (CSRS), while

section 8453 of title 5 establishes the application requirements for

disability retirement under the Federal Employees Retirement System

(FERS). Both laws state that a disability retirement claim may be

allowed only if the ``application is filed with the Office [of

Personnel Management] before the employee or Member is separated from

the service or within 1 year thereafter.'' Both the CSRS and FERS laws

allow extension of the time limit only in cases involving the

employee's mental incompetence.

Office of Personnel Management (OPM) regulations implementing these

provisions of law are found at sections 831.1204 (for CSRS) and 844.201

(for FERS) of Title 5, Code of Federal Regulations. The CSRS regulation

requires an employee who is retiring on disability to file an

application with OPM before separating from service, or within 1 year

after separating. The FERS regulation requires an employee retiring on

disability to file an application with his or her employing agency

before separating from service, or to file the application with OPM

within 1 year after departing.

The proposed revision of these two sections will allow OPM to

accept a CSRS or FERS disability application filed with an employee's

agency prior to separation, or with either the former employing agency

or OPM within 1 year after separation. This revision is a delegation of

authority by the Director of OPM under section 1104(a)(2) of title 5,

United States Code, allowing an agency's receipt of a disability

regulation to satisfy the filing requirement in the law.

Under the current rule, an application filed with the employing

agency is not acceptable unless the agency forwards it to OPM in time

to meet the 1-year filing deadline. Our proposed change will protect

applicants who submit their applications to their employing agency

within a year after separation. OPM instructions will require agencies

to forward disability applications promptly to OPM for consideration.

In addition, we propose revising sections 831.1204 and 844.201 of

Title 5, Code of Federal Regulations to bring the CSRS and FERS

disability application filing requirements into conformity with each

other, as regards OPM-prescribed disability retirement forms and

informal filings. The proposed regulations includes a standard for

determining the date of filing, which parallels the standard in

regulations of the United States Merit Systems Protection Board at 5

CFR Sec. 1201.4(1).

Finally, we propose revising Section 844.201(c) of Title 5, United

States Code to clarify that in FERS, as in CSRS, an agency may consider

the existence of a pending disability retirement application when

deciding whether and when to take other personnel actions, but is not

required to delay taking any appropriate personnel action.

Regulatory Flexibility Act

I certify that this regulation will not have a significant economic

impact on a substantial number of small entities because the regulation

will only affect retirement and insurance benefits of retired

Government employees and their survivors.

List of Subjects in Parts 831 and 844

Administrative practice and procedure, Air traffic controllers,

Alimony, Claims, Disability benefits, Firefighters, Government

employees, Income taxes, Intergovernmental relations, Law enforcement

officers, Pensions, Retirement.

U.S. Office of Personnel Management.

James B. King,

Director.

Accordingly, OPM proposes to amend 5 CFR parts 831 and 844 as

follows:

PART 831--RETIREMENT

1. The authority citation for part 831 is revised to read as

follows:

Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5

U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a;

Sec. 831.108 also issued under 5 U.S.C. 8336 (d)(2);

Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2);

Sec. 831.204 also issued under section 102(e) of the District of

Columbia Financial Responsibility and Management Assistance Act of

1995, Pub. L. 104-8, 109 Stat. 102, as amended by section 153 of

Pub. L. 104-134, 110 Stat. 1321; Sec. 831.303 also issued under 5

U.S.C. 8334(d)(2); Sec. 831.502 also issued under 5 U.S.C. 8337;

Sec. 831.502 also issued under section 1(3), E.O. 11228, 3 CFR 1964-

1965 Comp.; Sec. 831.663 also issued under 5 U.S.C. 8339 (j) and

(k)(2); Secs. 831.663 and 831.664 also issued under section

11004(c)(2) of the Omnibus Budget Reconciliation Act of 1993, Pub.

L. 103-66, 107 Stat. 410; Sec. 831.682 also issued under section

201(d) of the Federal Employees Benefits Improvement Act of 1986

Pub. L. 99-251, 100 Stat. 23; Sec. 831.1204 also issued under 5

U.S.C. 1104; subpart S also issued under 5 U.S.C. 8345(k); subpart V

also issued under 5 U.S.C. 8343a and section 6001 of the Omnibus

Budget Reconciliation Act of 1987, Pub. L. 100-203, 101 Stat. 1330-

275; Sec. 831.2203 also issued under section 7001(a)(4) of the

Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, 104

stat. 1388-328.

[[Page 2324]]

Subpart L--Disability Retirement

2. Section 831.1204 is revised to read as follows:

Sec. 831.1204 Filing disability retirement applications: General.

(a) Except as provided in paragraphs (c) and (d) of this section,

an application for disability retirement is timely only if it is filed

with the employing agency before the employee or Member separates from

service, or with the employing agency or OPM within 1 year thereafter.

(b) An application for disability retirement that is filed with OPM

or an employing agency by personal delivery is considered filed on the

date on which OPM or the employing agency receives it. The date of

filing by facsimile is the date of the facsimile. The date of filing by

mail is determined by the postmark date; if no legible postmark date

appears on the mailing, the application is presumed to have been mailed

5 days before its receipt, excluding days on which the receiving office

is closed for business. The date of filing by commercial overnight

delivery is the date the application is given to the overnight delivery

service.

(c) An application for disability retirement that is filed with OPM

or the applicant's former employing agency within 1 year after the

employee's separation, and that is incompletely executed or submitted

in a letter or other form not prescribed by OPM, is deemed timely

filed. OPM will not adjudicate the application or make payment until

the application is filed on a form prescribed by OPM.

(d) OPM may waive the 1-year time limit if the employee or Member

is mentally incompetent on the date of separation or within 1 year

thereafter, in which case the individual or his or her representative

must file the application with the former employing agency or OPM

within 1 year after the date the individual regains competency or a

court appoints a fiduciary, whichever is earlier.

(e) An agency may consider the existence of a pending disability

retirement application when deciding whether and when to take other

personnel actions. An employee's filing for disability retirement does

not require the agency to delay any appropriate personnel action.

PART 844--FEDERAL EMPLOYEES' RETIREMENT SYSTEM--DISABILITY

RETIREMENT

3. The authority citation for part 844 is revised to read as

follows:

Authority: 5 U.S.C. 8461; Sec. 844.201 also issued under 5

U.S.C. 1104.

Subpart A--General Provisions

4. In section 844.201, paragraphs (a) and (c) are revised to read

as follows:

Sec. 844.201 General requirements.

(a)(1) Except as provided in paragraphs (a)(3) and (a)(4) of this

section, an application for disability retirement is timely only if it

is filed with the employing agency before the employee or Member

separates from service, or with the employing agency or OPM within 1

year thereafter.

(2) An application for disability retirement that is filed with OPM

or an employing agency by personal delivery is considered filed on the

date on which OPM or the employing agency receives it. The date of

filing by facsimile is the date of the facsimile. The date of filing by

mail is determined by the postmark date; if no legible postmark date

appears on the mailing, the application is presumed to have been mailed

5 days before its receipt, excluding days on which OPM or the employing

agency, as appropriate, is closed for business. The date of filing by

commercial overnight delivery is the date application is given to the

overnight delivery service.

(3) An application for disability retirement that is filed with OPM

or the applicant's former employing agency within 1 year after the

employee's separation, and that is incompletely executed or submitted

in a letter or other form not prescribed by OPM, is deemed timely

filed. OPM will not adjudicate the application or make payment until

the application is filed on a form prescribed by OPM.

(4) OPM may waive the 1-year time limit if the employee or Member

is mentally incompetent on the date of separation or within 1 year

thereafter, in which case the individual or his or her representative

must file the application with the former employing agency or OPM

within 1 year after the date the individual regains competency or a

court appoints a fiduciary, whichever is earlier.

* * * * *

(c) An agency may consider the existence of a pending disability

retirement application when deciding whether and when to take other

personnel actions. An employee's filing for disability retirement does

not require the agency to delay any appropriate personnel action.

[FR Doc. 97-1106 Filed 1-15-97; 8:45 am]

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