OPM Moves to Close First Responder Retirement Loophole

The Office of Personnel Management (OPM) proposed regulations to implement a law designed to protect the enhanced retirement benefits of federal first responders who suffer career-ending injuries and transfer into other federal positions.

Federal first responders — including law enforcement officers, firefighters, and air traffic controllers — are covered by special retirement provisions. They contribute a higher percentage of their salary toward retirement and are generally required to retire earlier than other federal employees. Under current rules, however, those who are permanently injured on the job and move to a position outside the special retirement system can lose the enhanced retirement credit. 

The proposed rule– published in the Federal Register– lays out the groundwork for implementing the First Responder Fair RETIRE Act which would close that loophole.

Proposal Details

Under OPM’s proposal, first responders who are injured and take a job elsewhere in government can continue to pay accelerated contributions and reach their original retirement date. If they leave federal service, eligible employees may be refunded the extra half-percentage point of their salary that they paid in.

“Before the enactment of the Act, eligible employees had no options but to forfeit their enhanced retirement contributions and forgo their enhanced retirement benefits, or alternatively to apply for a disability retirement,” said OPM in the notice.

Eligibility requirements include that the disabling illness or injury was related to work; that the condition left them “permanently unable to provide useful and efficient service” in a position covered by the special provisions; and that the employee is not eligible for immediate retirement, among others.

The updated rules would apply to workers whose qualifying injury or illness occurred on or after December 9, 2024.

Comments on OPM’s proposal will be accepted through September 21, 2026.