Title 5 — Government Organization and EmployeesRelease 119-73

§8455 Recovery; restoration of earning capacity

Title 5 › Part PART III— - EMPLOYEES › Subpart Subpart G— - Insurance and Annuities › Chapter CHAPTER 84— - FEDERAL EMPLOYEES’ RETIREMENT SYSTEM › Subchapter SUBCHAPTER V— - DISABILITY BENEFITS › § 8455

Last updated Apr 6, 2026|Official source

Summary

If someone is getting disability retirement pay and gets better before turning 60, the payments stop when they take a government job or one year after the agency says they recovered, whichever comes first. If before age 60 they regain an ability to earn about the same pay as before retiring — which counts as earning at least 80% of that pay in a calendar year — the payments end 180 days after the end of that year. If payments stop and the person is not rehired into a job covered by the same retirement rules, they are treated as having been involuntarily separated (but this does not change their service-time credit) and may get a different retirement annuity under the regular rules. If payments stopped because the agency found recovery but the disability later returns and the person is not rehired, the disability annuity is put back in force from the date the agency finds the recurrence. The rules just described do not apply to people receiving annuities under subchapter II.

Full Legal Text

Title 5, §8455

Government Organization and Employees — Source: USLM XML via OLRC

(a)(1)If an annuitant receiving a disability retirement annuity from the Fund recovers from the disability before becoming 60 years of age, payment of the annuity terminates on reemployment by the Government or 1 year after the date on which the Office determines that the annuitant has recovered, whichever is earlier.

(2)If an annuitant receiving a disability annuity from the Fund, before becoming 60 years of age, is restored to an earning capacity fairly comparable to the current rate of pay of the position occupied at the time of retirement, payment of the annuity terminates 180 days after the end of the calendar year in which earning capacity is so restored. Earning capacity is deemed restored if in any calendar year the income of the annuitant from wages or self-employment or both equals at least 80 percent of the current rate of pay of the position occupied immediately before retirement.

(b)(1)If an annuitant whose annuity is terminated under subsection (a) is not reemployed in a position in which that individual is subject to this chapter, such individual is deemed, except for service credit, to have been involuntarily separated from the service for the purpose of subchapter II of this chapter as of the date of termination of the disability annuity, and after that termination is entitled to annuity under the applicable provisions of such subchapter.

(2)If an annuitant whose annuity is terminated under subsection (a)(2)—

(A)is not reemployed in a position subject to this chapter; and

(B)has not recovered from the disability for which that individual was retired;

(3)If an annuitant whose annuity is terminated because of a medical finding that the individual has recovered from disability is not reemployed in a position in which such individual is subject to this chapter, the annuity of such individual shall be restored at the applicable rate under section 8452 effective from the date on which the Office determines that there has been a recurrence of the disability.

(4)Paragraphs (2) and (3) shall not apply in the case of an annuitant receiving an annuity from the Fund under subchapter II of this chapter.

Reference

Citations & Metadata

Citation

5 U.S.C. § 8455

Title 5 — Government Organization and Employees

Last Updated

Apr 6, 2026

Release point: 119-73