Title 5 — Government Organization and EmployeesRelease 119-73not60

§8455 Recovery; Restoration of Earning Capacity

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

Last updated Apr 3, 2026|Official source

Summary

If a person on a disability annuity gets better before age 60, payments stop when they go back to a government job or 1 year after the retirement office says they recovered, whichever comes first. If before age 60 their ability to earn is about as much as before retirement — meaning they earn at least 80 percent of their old pay in a calendar year — payments stop 180 days after that year ends. If the annuity stops and the person is not rehired into a job covered by this law, they are treated as involuntarily separated and can get an annuity under subchapter II (but they do not get service credit). If payments stopped because the office found recovery, and the disability later returns and the person is not reemployed in a covered job, the disability annuity is restarted from the date the office says the disability recurred. The last two rules do not apply to people getting an annuity 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 3, 2026

Release point: 119-73not60