Firefighter OWCP Retirement Credit: How FECA and Light Duty Affect 6(c) Coverage

OWCP Time Is Creditable — But Light Duty Is Where the Trap Is

When a federal firefighter is injured on the job and goes on OWCP wage-loss compensation under the Federal Employees' Compensation Act, that time counts as creditable service for FERS retirement. FECA wage-loss benefits provide 66.67% of basic pay for single employees or 75% for employees with dependents, and the entire period on OWCP rolls into your total service time for annuity computation.

That is the straightforward part. The dangerous part is what happens if the agency reassigns you to a non-covered position while you recover.

How Light Duty Threatens Your 6(c) Coverage

For non-covered service that is not protected by the First Responder Fair RETIRE Act, the standard 1.0% accrual applies instead of the 1.7% firefighter rate. The Act can preserve enhanced coverage in a non-covered position only after a qualifying duty injury or illness on or after December 9, 2024, when the employee is permanently unable to perform useful and efficient service in the covered position but remains able to serve in federal employment. The employing agency must certify the conditions, and the employee must not already qualify for immediate retirement or mandatory separation when injured. Reappointment must occur without a break in service of more than three days to the same agency or an agency that regularly appoints to related supervisory or administrative positions. OPM published proposed regulations in July 2026. The separate issue is what happens to your primary-to-secondary transition.

Under 5 CFR 842.803(b), moving from a primary rigorous position to a secondary supervisory or administrative position requires 36 consecutive months of primary service with no break exceeding three days. If you are pulled off the line for light duty before completing those 36 months, the clock can reset. A firefighter who was 30 months into primary service and gets detailed to a dispatch desk for six months may find that the detail broke their continuity — and they need to start the 36-month count over when they return to the line.

The First Responder Fair RETIRE Act Changes the Calculus

The First Responder Fair RETIRE Act (Public Law 117-225) addressed one of the worst consequences of line-of-duty injury. Before this law, a firefighter who suffered a qualifying injury and was permanently reassigned to a non-covered position lost their enhanced 1.7% accrual rate going forward. The injury that ended their line career also cut their pension.

Under the Fair RETIRE Act, covered first responders who suffer line-of-duty injuries or illnesses can maintain their 1.7% annuity accrual rate and early retirement eligibility if they return to federal service in a non-covered position. OPM has proposed implementing regulations for 5 CFR Parts 831 and 842 (RIN 3206-AO54).

This protection applies only to line-of-duty injuries and illnesses — not to voluntary transfers or administrative reassignments.

FECA Benefits vs. FERS Annuity: You Cannot Collect Both

Federal law prohibits receiving OWCP wage-loss benefits and a FERS basic annuity simultaneously. If you are on FECA wage-loss compensation when you reach retirement eligibility, you must elect one or the other.

The decision usually comes down to math:

• FECA wage-loss pays 66.67% to 75% of basic pay, tax-free
• A FERS firefighter annuity pays 1.7% × high-3 × years of covered service (up to 20 years), which is taxable

For a firefighter with 20 years of covered service and a high-3 of $90,000, the annuity would be roughly $30,600 per year before taxes. FECA wage-loss at 75% of that same salary would be $67,500 tax-free. In most cases, FECA pays more — but FECA ends when you can return to work or reach a medical plateau, while the annuity is permanent.

Protecting Yourself During an Injury

If you are injured on the job, the immediate priorities for your retirement are:

1. Document everything — file your CA-1 (traumatic injury) or CA-2 (occupational disease) promptly, and keep copies
2. Monitor your SF-50s — any reassignment or detail should generate a new SF-50. Check Block 30 to confirm whether your retirement code changed
3. Track your 36-month primary clock — if you have not yet completed 36 months in a primary position, a light-duty detail to a non-covered role may interrupt your continuity
4. Know your Fair RETIRE Act rights — if your injury is line-of-duty, your enhanced accrual rate is protected even if you cannot return to the line

The Federal Firefighter Retirement Guide covers the FECA-vs-annuity election in detail, including the specific scenarios where staying on OWCP is the better financial choice and where switching to retirement makes more sense.

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