Arizona – June, 2018 – People often become confused between OWCP Workers’ Compensation and OPM Federal Disability Retirement. These programs are not different and understanding these differences can help you determine which program is right for you.
Similarities between OWCP Workers’ Compensation and OPM Federal Disability Retirement
Both OWCP Workers’ Compensation and OPM Federal Disability Retirement programs are administered by the federal government. Both programs are designed to pay you benefits in case you are disabled, from illness or injury, and that prevents you from carrying out your job duties efficiently.
Differences between OWCP Workers’ Compensation and OPM Federal Disability Retirement

• OWCP Workers’ Compensation
The OWCP Workers’ Compensation program is administered by DOL or the Department of Labor. The program pays federal workers for a disabling illness or injury that was caused exclusively by your job or due to something that happened on your job.

The OWCP Workers’ Compensation program is a temporary fix and benefit. The goal of the program is to help you return to work as soon as possible.

There are 4 main benefits that you can qualify for, under OWCP Workers’ Compensation program. These are loss of wages, medical coverage, schedule awards, and continuation of pay (COP).
o Wage loss—Wage loss payments include compensation payments for time lost due to doctor’s appointments, therapies and/or reduced work hours due to medical restrictions. The pay rate is 66 percent of your salary. If you have dependents, this is increased to 75 percent of your salary.
o COP—If you suffer a traumatic injury, your regular pay will continue for up to 45 days after the date of the injury.
o Medical—Medical treatments for your approved injury are covered by OWCP Workers’ Compensation program and continue for the lifetime of the injury.
o Schedule Awards—If your approved disability causes a lifetime impairment, you may qualify for a schedule award.

You will not receive both wage loss benefits and a schedule award together; both wage loss and OPM federal disability retirement together, or if you work in the private sector.

• OPM Federal Disability Retirement
The OPM Federal Disability program is run by the OPM or Office of Personnel Management. It pays federal workers for a disabling disease or injury regardless of how and when it was caused. The requirement for benefits is that the illness or injury must be preventing you from performing the essential duties of your job.

This is different from OWCP Workers’ Compensation because the duration for which you receive OPM federal disability retirement payments can count towards your years of creditable service. The OPM federal disability retirement are an annuity that allows you to get to the age of 62. So, when your annuity is recalculated at the age of 62, the years you received disability retirement will count as service years in the federal government.

You can work in the private sector while receiving OPM payments. But if you exceed the 80 % earnings cap, your OPM payments will be suspended.

Even if you are approved for both OWCP Workers’ compensation and OPM federal disability retirement, you cannot receive both benefits at the same time. You can choose the one you’d like to receive. OWCP generally pays more, but it’s a temporary benefit.

To consult the best Arizona workers’ compensation lawyers, call Arizona Injury Law Group at 602-346-9009. At Arizona Injury Law Group, you deal directly with a workers’ compensation attorney, and not an assistant. They can even help you find the best doctors for your medical treatment.