# OPM Adjusts Annuity for SSDI Recipients

Federal employees receiving disability retirement benefits from the Office of Personnel Management (OPM) who also qualify for Social Security Disability Insurance (SSDI) face specific annuity reductions tied to their SSDI payments. In the first year of concurrent benefits, OPM reduces the federal disability annuity by 100% of the SSDI amount. From the second year until the recipient reaches age 62, the reduction decreases to 60%, allowing beneficiaries to retain 40% of their SSDI alongside their OPM annuity. Importantly, approval for SSDI does not impact eligibility for federal disability retirement since the qualification criteria differ between the Social Security Administration (SSA) and OPM.

- **Why this matters:** Procurement professionals managing federal employee benefits and disability programs should account for these offset rules when structuring contracts or advising on benefits administration.
- Agencies and contractors involved in federal disability retirement processing must ensure systems and workflows accommodate the phased annuity reductions tied to SSDI payments.
- This adjustment impacts budgeting and forecasting for federal disability annuities, influencing contract scopes related to benefits management and payroll services.
- Organizations providing consulting or IT solutions for federal benefits administration can leverage this policy detail to enhance compliance and accuracy in disability retirement systems.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 15, 2026

### Government Entities
- Office of Personnel Management (OPM)
- Social Security Administration (SSA)

### Key Quotes
> If you’re not approved for SSDI it has no bearing on your federal disability retirement qualifications because social security’s bar is harder to meet.
> — Commenter

> OPM reduces your monthly annuity by 100% of your monthly SSDI benefit during the first 12 months, then by 60% thereafter until age 62.
> — Original poster

### Sources
- [Will Retirement Pay effect SSDI](https://www.reddit.com/r/FedEmployees/comments/1whg6dx/will_retirement_pay_effect_ssdi) - reddit-fedemployees