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FPCD-82-46 1 (1982-07-09)

handle is hein.gao/gaobabdlx0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE ' ' WASHINGTON, D.CQ 20548 %AL MROW4M AMO cOMPW4SATICA4 OtuaIOei B-207561 JULYS, 182 The Honorable Donald J. Devine Director, office-of Personnel Management 118924 Dear Dr. Devine: Subject: Terminating Benefits to Economically Recovered Disability Retirees Should Be More Timely (GAO/FPCD-82-46) We have reviewed the Office 6f Personnel Management's (OPM's) administration of the statutory provisions regarding the economic recovery of disability retirees. The review was part of our larger ongoing study of the administration of the civil service retirement system's disability provisions. This report summarizes our findings and recommends action to improve procedures for more timely economic surveys which are the basis for terminating benefits to economically recovered disability retirees. OPM is responsible for administering the civil service re- tirement system, including disability provisions. Under sec- tion 8337(d) of title 5, United States Code, the annuity of a disabled retiree under age 60 terminates I year after the end of the year in which earning capacity is restored. Earning capacity is considered restored if the retiree's earned income in 2 con- secutive years equals at least 80 percent of the current pay of the position occupied at retirement. A retiree's eligibility for benefits must be determined by the end of each calendar year so that ineligibile retirees can be removed from the rolls. OPM determines this by surveying disabled retirees each year to ob- tain earnings data. If a retiree does not respond to the survey, OPM may suspend annuity payments until the retiree's entitlement to continued annuity is established. During the last 2 years, we and the House Committee on Gov- ernment Operations have expressed concern about the administra- tion and timeliness of OPM's surveys. While OPM has made much progress, more needs to be done. The 1981 survey was completed in February 1982. The annuities of those who did not respond were then suspended. Because the suspensions were not made at the end of the calendar year, OPM made potential inappropriate payments for January totalling about $157,000 to retirees who (966075)

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