Overview of 2026 Changes
Each year brings potential changes to federal benefits, OPM processing procedures, and regulations that affect disability retirement applicants and annuitants. Here's what federal employees need to know as of October 14, 2026.
COLA Adjustments
For 2026, the FERS COLA is 2.0%. Eligible disability annuitants may receive COLAs before 62, but not while receiving the 60%-of-high-3 disability rate. In general, FERS matches a CPI increase up to 2%; above 2% through 3%, the COLA is 2%; above 3%, it is the CPI increase minus 1 percentage point. First adjustments may be prorated.
Processing Times
There is no guaranteed disability-decision timeline. OPM’s overall retirement processing statistics should not be presented as disability-specific decision times. Ask OPM about your application’s status and respond promptly to requests for evidence.
FEHB Coverage During Disability Retirement
Federal employees who retire on disability maintain their Federal Employees Health Benefits (FEHB) coverage, provided they were enrolled for the 5 years immediately preceding retirement (or since their first opportunity to enroll). This is one of the most valuable benefits of disability retirement.
FEGLI Considerations
Federal Employees' Group Life Insurance (FEGLI) continues during disability retirement, but premiums and coverage amounts may change. Understanding your FEGLI options before filing ensures you don't inadvertently lose coverage.
2026 Open Season
OPM confirms November 9–December 14, 2026 for 2027 plan elections. Review official plan information rather than relying on last year’s premiums or coverage.
Stay Informed
Federal benefits policy evolves continuously. TFDR monitors OPM Benefits Administration Letters, regulatory changes, and policy updates to keep federal employees informed of anything that affects their disability retirement rights and benefits.