U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

Number 139                    February 2001

Queen E. Seacer v. Office of Personnel Management, SF831E990278-X-1, October 24, 2000.

By statute a disability retirement annuity commences on the day after the annuitant's separation from service or the day after pay ceases.

The appellant in this case suffered an injury in the workplace on January 16, 1996, that prevented her from working. She applied for and received Office of Worker's Compensation Programs (OWCP) benefits until January 16, 1999. In 1997, she applied for disability retirement. OPM denied her application and reconsideration decision. OPM found that the appellant failed to demonstrate that her condition could not be accommodated by her employing agency.

In January 1999, the appellant returned to work in a light duty, part-time status. Meanwhile, she appealed OPM's decision to the Board. The MSPB administrative judge reversed OPM's decision and ordered OPM to grant the appellant a disability retirement annuity, effective on the day following her last day in a full-time paid status with her employing government agency. Neither party filed a petition for review and the initial decision became the final decision of the Board on September 15, 1999. On that date the agency separated the appellant, certifying September 15, 1999, to OPM as the appellant's last day in pay status.

In her petition for enforcement of the initial decision the appellant claimed that OPM had not complied with the administrative judge's order to commence the annuity on the last day of her full-time status. The AJ recommended that the Board find OPM in non-compliance. The AJ found that the appellant was not entitled to receive an annuity at the same time she received OWCP benefits. However, the AJ determined that the appellant was entitled to an annuity retroactive to the date of the appellant's cessation of full-time duties and the end of her OWCP benefits, but prior to the date of her actual separation from federal service. The AJ stated that benefits should commence as of the appellants last day in a full time status, in compensation for the loss of full-time salary that the appellant endured as a result of OPM's erroneous finding.

In reviewing the case, the Board concluded that the AJ erred in determining that OPM was required to commence payment of the appellant's disability retirement annuity while the appellant was in pay status. By statute a disability retirement annuity commences on the day after the annuitant's separation from service or the day after pay ceases. In this case, the appellant's separation date and last day in pay status was September 15, 1999. Consequently, the Board concluded that OPM properly began the appellant's annuity effective September 16, 1999. The Board found that the statute was clear and that it lacked authority to order OPM to compensate the appellant for the effects of the erroneous decision. Accordingly, the Board found OPM in compliance with the final order of the Board.