How to Calculate a Federal Disability

Some federal employees are eligible for government benefits if a disability forces them to retire. The amount a person can receive depends on his age, salary and the amount of time he worked for the federal government. Benefits are calculated differently based on a person's age and eligibility for benefits when he retires voluntarily. People under the age of 62 or who are ineligible for such benefits will receive benefits at a lower rate than those who are older than 62 or who are eligible.

Instructions

62 or Older or Eligible for Voluntary Retirement

• 1

  Add together your highest base salary for three consecutive years out of all the years you worked for the federal government. These three years will usually be the last three years of your career. Your base pay includes shift differentials but does not include overtime or bonuses.

• 2

  Divide the total from Step 1 by three. The result is called your "high-3 average" because it is the average of your three highest-paid years.

• 3

  Divide your high-3 average by 100 if your are 62 or older and have less than 20 years of service. If you are 62 or older and have more than 20 years of service, multiply your high-3 average by 1.1 percent (.011)

• 4

  Multiply the result from Step 3 by the number of years of service you have. The result is of the amount of annual benefits you will receive.

• 5

  Divide your annual benefit amount by 12 to calculate your monthly benefit amount.

Younger Than 62 or Ineligible for Voluntary Retirement

• 6

  Add together your highest base salary for three consecutive years out of all the years you worked for the federal government. These three years will usually be the last three years of your career. Your base pay includes shift differentials but does not include overtime or bonuses.

• 7

  Divide the total from Step 1 by three. The result is called your "high-3 average" because it is the average of your three highest-paid years.

• 8

  Multiply your high three average by 60 percent (.60).

• 9

  Subtract the amount of your Social Security disability benefits for any month during which you are eligible in the first 12 months of your retirement. The result is the amount you will receive in the first year of your retirement.

• 10

  Calculate how much you will receive after the first year. Divide your high-3 average by 2.5 and then subtract 60 percent of your Social Security disability payment from the result. The result is your annual benefit you will receive until age 62.

• 11

  Calculate how much you will receive after age 62 using the steps in the first section.