More Coordination on Disability Benefits Sought

The Bush administration has said, in a report on management improvements, that it plans to seek better coordination between FERS disability annuities and Social Security disability when individuals are eligible for both—in which case there is an offset between the two benefits. Said the report, “This coordination would prevent large overpayments of retroactive Social Security benefits, which beneficiaries are frequently not in a position to repay. SSA would forward the retroactive benefits to OPM, who would then forward the net entitlement to the retiree, preventing an overpayment of the retroactive benefit.” The plan may become an element of the administration’s expected Federal Retirement Improvements Act, which still has not been forwarded to Congress.