Title 32 Tech Disability Retirement

J

justamarty

Well-Known Member
PEB Forum Veteran
Registered Member
Hi,

I'll be going down the MEB/PEB road within the next year. I'm 44. Title 32 tech, ~4250 points, 70% VA disability. I have just over 3 years qualifying years so I could take my reserve retirement at 57. Hoping I'll end up with 30% from DoD. Whatever will be will be, but I'm trying to figure out the pay side from discharge from Tech Status until I reach 62.

My questions:
1.) Is my pay after release as a tech considered actual retirement pay or is it more like an interim paycheck? My real question is whether or not my pay from discharge through age 62 is considered regular taxable income from the fed government that still allows me to contribute to TSP until I reach 62.
2.) Is my post-release tech pay taxable? I think some states don't tax fed pensions,....but is it or is it not considered a pension at that point. I imagine its not a pension until I reach 62. If it is, I may actually consider moving to a State that doesn't tax the pay.
3.) Really hoping I can somehow still contribute to TSP other than rolling over funds into TSP from whatever new employ I find (if I don't find the plan as cost-effective as TSP has been).
4.) Not sure if anyone can answer this next one regarding FEHB. Hoping I'll have Tricare for Life (if I get over 30%) anyway. My wife works at a hospital and has a great Blue Cross Plan where we don't have copays for almost anything as long as we use the Hospital Network she works for. If I get release as a tech, can I choose to sign up for FEHB at anytime in the next decade or so if she leaves or changes positions? I think I need to have FEHB for 5 years prior to retirement (62) to be able to retire with it, but wasn't sure if it works a little different once I'm out since I'm not really employed at that point, but have 60% (year 1)then 40% paychecks.

Thanks for any input.
 
justamarty said:
My questions:
1.) Is my pay after release as a tech considered actual retirement pay or is it more like an interim paycheck? My real question is whether or not my pay from discharge through age 62 is considered regular taxable income from the fed government that still allows me to contribute to TSP until I reach 62.
2.) Is my post-release tech pay taxable? I think some states don't tax fed pensions,....but is it or is it not considered a pension at that point. I imagine its not a pension until I reach 62. If it is, I may actually consider moving to a State that doesn't tax the pay.
3.) Really hoping I can somehow still contribute to TSP other than rolling over funds into TSP from whatever new employ I find (if I don't find the plan as cost-effective as TSP has been).
4.) Not sure if anyone can answer this next one regarding FEHB. Hoping I'll have Tricare for Life (if I get over 30%) anyway. My wife works at a hospital and has a great Blue Cross Plan where we don't have copays for almost anything as long as we use the Hospital Network she works for. If I get release as a tech, can I choose to sign up for FEHB at anytime in the next decade or so if she leaves or changes positions? I think I need to have FEHB for 5 years prior to retirement (62) to be able to retire with it, but wasn't sure if it works a little different once I'm out since I'm not really employed at that point, but have 60% (year 1)then 40% paychecks.
Click to expand...
As a technician, there are lots of twists and turns that most military people don't have to go through. I would highly recommend a search of the forum with "technician retirement". Many people smarter than I have shared their experiences and will give you most of these answers. With that said, I will do my best to start the conversation to answer your questions.

1. This is a hard one to answer without more details about your situation. Is your MEB/IPEB the result of an approved LOD on the military side? I have seen tons of technicians that get hurt while in technician status and this injury causes them to become unqualified for their military role. Since they were not on a military status when they were hurt, unless they have 15 years of TAFMS, they most likely lost their military retirement. This is why the technician 60/40 retirement is so important.

2. I am unsure on this one. I would venture to say that is federally taxable and depending on the state, taxable. The only federal non taxable mil retirement is the VA, to my knowledge.

3. As long as you hold a technician or military status, you can contribute to TSP. Once you lose both, you lose the ability to contribute. You don't have to pull the money out but you can no longer contribute to the system unfortunately.

4. In your scenario, IF you get 30% or greater for your referred condition, you should sign up for Tri-care standard. It would be the secondary as your wife's insurance would cover you as primary. With it being dual insurance, you would most likely never have to pay out of pocket for anything AND because it's standard you never have to go to a MTF or use a base doctor. Standard allows you to go direct to any in network specialist. It's the best of Tri-care without the crap of the MTF.

What I am not sure about it if you are medically retired militarily, aka Chapter 61, I don't know if you can get a technician 60/40 retirement. I believe you would have to be injured in technician status to qualify for the 60/40. In the scenario I am seeing with the data provided, you would lose your technician slot due to no longer qualifying for the position due to the dual role military status required of the position.

Give us some more info and we will try to cut through the red tape and get you on the right path.

Godspeed

@Jmc81 - can you provide some insight for this?
 
Last edited:
Thanks for your response. I know it gets complicated. Here's some more info on my situation:

~4250 active points toward retirement, National Guard drilling Soldier, work as a tech for National Guard as a Nurse, 70 % VA disability. currently on profile X 90 days. hit 20 good years this coming December, about 3 years of qualifying deployment service, have LODs for most of my conditions (certainly for what will end up being disqualified for). Conditions have LODs from overseas service...none were a result of IED, direct combat,...

1.) I do believe that my discharge will be related to LODs from active time/mobilizations. My tech job has not contributed to my conditions (except maybe cubital tunnel from keyboard and typing..my tech job is Occ Health Nurse).

2.) It makes sense to me that my 60/40 (assuming that's what I end up with after MEB/PEB since I'm service connected and likely will lose my civilian job as a result of one or more of those conditions)pay would be taxable if it's considered an actual paycheck. If it's considered to be my pension, I do know that Alaska, FLorida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, New Hampshire, Alabama, Illinois, Hawaii, Mississippi, and Pennsylvania don't tax fed pensions. SO, that looks promising at 62. Just have to dig to see if they classify the interim 60/40 pay as pension or simply a paycheck.

3.) I have a feeling you're right on TSP contributions. It just seems strange that the gov't wouldnt provide a means to continue to accumulate $$$ towards retirement in a situation like disability. Obviously, I'll find other avenues to do so. I max my Roth IRA every year, have a few taxable brokerage accounts,...and can potentially contribute to a new employer's 401Ks for the next 15-17 years.

4.) Your explanation makes sense. Regardless of what happens with MEB/PEB at the very least I'll still qualify for Tricare (at 65 I think) through my Reserve retirement. I'll hit 20 good years in December anyway. I would just retire and call it a day, but if I did that I'd lose both my drill paycheck/AT pay each year plus take about a 20K paycut to do nursing jobs I'd be capable of. I'll be fine in the long run anyway, but just want to make sure I do my due diligence and ask the right questions.

Thanks.
 
Guardguy11 said:
What I am not sure about it if you are medically retired militarily, aka Chapter 61, I don't know if you can get a technician 60/40 retirement. I believe you would have to be injured in technician status to qualify for the 60/40. In the scenario I am seeing with the data provided, you would lose your technician slot due to no longer qualifying for the position due to the dual role military status required of the position.
Click to expand...
I’m in a similar situation and was told by state HRO:

(I’m a dual status technician who is on AGR status being processed through the IDES process)

As long as he meets the 18-mos of creditable civ service (which he does), and doesn’t meet the MRT rules (not sure if he would meet this or not), he is eligible to apply for the PL disability – as long as his military separation happens before he hits his 5 years of USERRA. If he meets MRT, he’d have to retire under that provision.
 
What exactly is MRT? Is that the same as minimum retirement age (which for me is 57 since I was only hired as a tech in 2014.) ? If it is, I'm only 44 with 10 yrs service (once you include my buyback time) as of this November. Also, what's PL disability? I'm probably just using slightly different terms.
 
Military Reserve Technician

Cant remember what the PL stands for, this was my original question:

Medical submitted my package to start the duty DES process last week. I Have been trying to figure out how the technician side of things factor into this whole process and haven’t been able to find much on the topic. I have been on LWOP for approximately 4 years. The only reference I could find (see below) seems to indicate there is some benefit but it’s far from clear as to what that means, how/if the military side blends with the technician side of things, etc. It’s very confusing to me. I know it depends on how the DES process works out and that that process has just started but I’m just trying to be proactive just in case I’m found unfit.

(an old reference, wasn’t sure if it still applies as written??)

Rights and Benefits of Reservists Called to Active Duty | CHCOC

Retirement:

If you are placed in an LWOP status while performing active military duty, you continue to be covered by the retirement law; i.e., the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Death benefits will be paid as if you were still in the civilian position. If you become disabled for your civilian position during the LWOP and you have the minimum amount of civilian service necessary for title to disability benefits (5 years for CSRS, 18 months for FERS), you are entitled to disability benefits under the retirement law. Upon eventual retirement from civilian service, the period of military service is creditable under either CSRS or FERS, subject to the rules for crediting military service.
 
Anyone have a reference to a good FERS attorney? I had one that I was planning on retaining but he passed away last week. I am looking for a good one that has knowledge with military reserve technicians (MRT)
 
actionjackson98312 said:
Anyone have a reference to a good FERS attorney? I had one that I was planning on retaining but he passed away last week. I am looking for a good one that has knowledge with military reserve technicians (MRT)
Click to expand...
Yes, I do. Guessing we cannot post that stuff in the forum. PM me.
 
DaveK said:
Yes, I do. Guessing we cannot post that stuff in the forum. PM me.
Click to expand...
There is no rule on posting that information on the forum. Feel free to do so as long as its a recommendation and not an advertisement. I send that information via PM because that is my preference but I don't see it as off-putting to post attorney recommendations publicly.
 
Provis,

Will do. Thank you for the info. This lawyer was recommended to me and showed to be a known expert in FERs retirement.

For those that may stumble onto this, FERs is the federal civilian side of governmental retirement. I was a fed civilian for one agency and a guard military member. Some guard Technicians also cross over between the military retirement system and federal civilian system.

What I did not know at the time was that if you qualify, the FERs system has a path to retirement for any disabling conditions that prevent you from doing your specific job. As an example you could get hurt on accident at the beach on your day off and if that prevented you from continuing your job, you could possibly retire. And then you could find work not prevented by your disabilities, even at the same agency, making 80% or less of your original income while maintaining that FERs retirement.

I originally resigned from my civilian fed job as I could no longer safely do it due to unrelated military combat injuries. Once OPM found out why I resigned they removed my resignation and retired me thanks to the below lawyer.

I hope this info helps someone, as many have helped me here.


Robert McGill • [email protected]
 
Terribly sorry to announce.... Lawyer Robert McGill passed away 2 months ago. He helped a lot of people.
 
Guardguy11 said:
As a technician, there are lots of twists and turns that most military people don't have to go through. I would highly recommend a search of the forum with "technician retirement". Many people smarter than I have shared their experiences and will give you most of these answers. With that said, I will do my best to start the conversation to answer your questions.

1. This is a hard one to answer without more details about your situation. Is your MEB/IPEB the result of an approved LOD on the military side? I have seen tons of technicians that get hurt while in technician status and this injury causes them to become unqualified for their military role. Since they were not on a military status when they were hurt, unless they have 15 years of TAFMS, they most likely lost their military retirement. This is why the technician 60/40 retirement is so important.

2. I am unsure on this one. I would venture to say that is federally taxable and depending on the state, taxable. The only federal non taxable mil retirement is the VA, to my knowledge.

3. As long as you hold a technician or military status, you can contribute to TSP. Once you lose both, you lose the ability to contribute. You don't have to pull the money out but you can no longer contribute to the system unfortunately.

4. In your scenario, IF you get 30% or greater for your referred condition, you should sign up for Tri-care standard. It would be the secondary as your wife's insurance would cover you as primary. With it being dual insurance, you would most likely never have to pay out of pocket for anything AND because it's standard you never have to go to a MTF or use a base doctor. Standard allows you to go direct to any in network specialist. It's the best of Tri-care without the crap of the MTF.

What I am not sure about it if you are medically retired militarily, aka Chapter 61, I don't know if you can get a technician 60/40 retirement. I believe you would have to be injured in technician status to qualify for the 60/40. In the scenario I am seeing with the data provided, you would lose your technician slot due to no longer qualifying for the position due to the dual role military status required of the position.

Give us some more info and we will try to cut through the red tape and get you on the right path.

Godspeed

@Jmc81 - can you provide some insight for this?
Click to expand...
Comment 2 years later:
This was an awesome reply by @Guardguy11 and one that reveals his unique expertise.

Ron
 
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