Summary
The United States Court of Appeals for the Federal Circuit affirmed the Merit Systems Protection Board's decision that a Navy veteran was not entitled to credit his military service toward his Federal Employees' Retirement System (FERS) annuity because he was already receiving military disability retired pay without waiving it. The court held that under 5 U.S.C. § 8411(c)(2), double crediting of military service for both military retired pay and a civilian annuity is prohibited unless specific statutory exceptions apply, none of which were met here. The court rejected the petitioner's argument that disability-based calculations exempt him from the waiver requirement, clarifying that the statute bars double crediting regardless of whether the military pay was calculated based on disability percentage or years of service.
Topics
Practice areas
Questions Presented
- Whether 5 U.S.C. § 8411(c)(2) bars crediting military service toward a FERS annuity when the employee receives military retired pay based on a disability percentage
- Whether Stuart qualifies for either statutory exception under § 8411(c)(2)(A) or § 8411(c)(2)(B)
Holdings
- Section 5 U.S.C. § 8411(c)(2) prohibits crediting any period of military service toward a FERS annuity when the employee receives military retired pay that is "based on any period of military service," and the statutory exceptions are limited to (A) a service‑connected combat or war‑related disability and (B) retirement under chapter 1223 of title 10.
Key quotations
“The plain language of section 8411(c)(2) thus bars double crediting Mr. Stuart’s military service in computing his FERS annuity.” (at 7)
“Section 8411(c)(2) clearly contemplates that military retired pay awarded ‘based on a service‑connected disability’ constitutes a type of ‘retired pay based on any period of military service.’” (at 6)
Factual background
Anthony S. Stuart served three periods of active duty in the Navy (1974‑1979, 1981‑1984, 1985‑1991) and was placed on the Permanent Disability Retirement List in 1994, receiving military retired pay based on a 60% disability rating. He later retired from federal civilian service under FERS in 2015 and sought credit for his military service toward his civilian annuity, which OPM denied because he was receiving military retired pay.
Procedural history
The Merit Systems Protection Board held that Stuart was not entitled to credit because he was receiving military retired pay and had not waived it. The Board affirmed the administrative judge’s finding that his retired pay was "based on" all periods of his military service. Stuart appealed to the Federal Circuit.