What Happens to My Federal Workers’ Compensation Benefits When I Reach Retirement Age?

What Happens to Federal Workers’ Compensation Benefits When You Retire?

If you’re receiving federal workers’ compensation benefits and thinking about retirement, you’re not alone. Many injured federal workers wonder what will happen to their benefits once they hit retirement age. The good news? You don’t automatically lose your benefits just because you retire—but there are some important details to understand.

At Aumiller Lomax, we help clients across the country navigate the complex relationship between workers’ comp, retirement, and other benefits like OPM Disability and Social Security. Here’s what you should know if you’re approaching retirement age while receiving benefits under the Federal Employees’ Compensation Act (FECA).

Your FECA Medical Benefits Don’t Expire

One of the most important things to know is that FECA medical benefits do not end at retirement. As long as your medical treatment is related to your accepted injury or illness, OWCP will continue to cover those expenses for life. This includes doctor visits, medications, surgeries, medical equipment, and more.

Wage-Loss Compensation Can Continue After Retirement—If You’re Still Disabled

FECA provides wage-loss compensation when a work injury prevents you from doing your job. If you voluntarily retire for reasons unrelated to your injury, OWCP may argue that your wage loss is due to retirement—not disability—and try to stop your payments.

However, if your retirement was because of the injury—or if your accepted condition continues to cause disability—you may still be eligible for ongoing compensation, even after you’ve left federal service. The key question is: Are you still unable to earn your full wages because of the work-related condition?

You Can’t Collect FECA and OPM Disability at the Same Time

Many injured workers apply for OPM Disability Retirement as a backup or in case their FECA benefits stop. That’s a smart strategy—but you can’t receive both payments at the same time. If both are approved, you’ll need to choose one. Each has its pros and cons depending on your medical condition, future work plans, and other benefits like life insurance or survivor annuities.

We can help you compare both systems and understand which is better for your situation.

What About Social Security?

Unlike OPM, you can receive Social Security Retirement or Disability (SSDI) and FECA benefits at the same time. However, if you’re getting SSDI, those payments may be reduced because of your workers’ compensation income. That’s a Social Security offset—not a FECA rule—and it depends on your earnings history and benefit amounts.

Don’t Retire Without a Strategy

Deciding when and how to retire is already a big decision. If you’re receiving federal workers’ compensation, it’s even more important to plan ahead. You don’t want to accidentally give up wage-loss payments by retiring too soon—or fail to apply for benefits you could have received.

We recommend reviewing the following before you retire:

• Are you still receiving wage-loss payments, a schedule award, or medical-only benefits?
• Was your retirement voluntary or due to your injury?
• Are you eligible for OPM Disability Retirement or Social Security?
• Do you need legal help documenting continued disability?

Talk to Us About Your Retirement Plans

At Aumiller Lomax, we’ve helped federal employees across the country protect their benefits through retirement and beyond. Every case is different, and what works for one person may not be the best fit for someone else.

If you’re receiving federal workers’ comp and thinking about retirement, let’s talk. We can help you avoid costly mistakes and create a plan that keeps your rights—and your benefits—protected.

Contact us today for a consultation.