Federal Government Employee Disability Insurance
New for Federal Employees under FERS
Berkshire is now offering full supplemental disability insurance coverage to FERS employees. Now as a FERS Government employee you have the ability to supplement your FERS Disability Retirement Annuity with the full features and benefits of Berkshire's premier disability plan, Provider Choice. This is the same plan that is used by individuals in the private sector.
Your Current FERS Plan
As a Federal Employee under the FERS retirement system, you have the following benefits should you qualify for the FERS disability benefit.
- the first year of disability you will receive 60% of your income - still fully taxable
- the second and subsequent years you will only receive 40% of your income - still fully taxable
Why Do I Need Supplemental DI Protection?
Keep in mind that any FERS benefits are received taxable as ordinary income during a claim. So if you have trouble paying your bills with your current income, try paying them on 60% of that number, and having to pay taxes on that reduced amount. Then if your disability lasts long enough, FERS only provides 40% of your income after year number one. You can buy a supplemental, individually owned policy to help make up for the taxes you would have to pay in year one of a disability claim, or to help make up the difference in years 2 and on. Most people plan on trying to get as close to 60% income replacement for disability income insurance protection, buying a supplemental DI policy on your own is the best way to make sure that you and your family are taken care of in the event of an illness or accident preventing you from being able to work.