Reassignment and Disability Retirement for Federal Employees
disability retirement federal employment mspb appeals reasonable accommodation reassignment Sep 22, 2025For federal employees navigating the reasonable accommodation process, one question looms large: what if your agency says it can’t accommodate you? The law provides an answer. Before an agency can separate you for medical inability to perform, it must consider reassignment as a last resort.
How Reassignment Really Works
Reassignment isn’t a demotion or a fictional post created to move you along. It requires the agency to identify a vacant, funded position that you are qualified to perform—ideally at your same grade, pay, and within your commuting area. Agencies sometimes cut corners, conducting only partial searches or suggesting roles that don’t align with your qualifications. An experienced attorney can demand a proper search of all vacancies, ensuring the agency meets its legal obligations and doesn’t quietly sideline you.
When Reassignment Fails
Sometimes the reality is stark: there simply isn’t a suitable role available, or your restrictions prevent you from performing the essential functions of the positions that do exist. At that point, the conversation shifts from reassignment to disability retirement.
Disability Retirement: A Safety Net, Not an Exit with Nothing
Disability retirement under the Federal Employees Retirement System (FERS) is more robust than many realize. In the first year, you may receive 60% of your high-three salary average, followed by 40% annually thereafter, until you transition to your standard annuity. Importantly, you can maintain your health and life insurance benefits—a crucial safeguard for stability and peace of mind. Far from being a forced exit, disability retirement offers a structured and dignified path forward when continued federal service isn’t possible.
The Crossroads Moment
The shift from reassignment to disability retirement is one of the most critical turning points in a federal career. Handled properly, it can mean the difference between a new chapter in federal service or a financially secure transition. Handled poorly, it can mean missed rights, inadequate searches, or a rushed departure without benefits.
This is where legal guidance matters most. An attorney ensures that the agency takes reassignment seriously, reviews vacancy lists, and properly documents the process. If reassignment isn’t viable, counsel can guide you through the disability retirement application, maximizing your chances of approval.
Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.
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