As 2025 begins, the 2024 Federal Employee Short-Term Disability Insurance Act remains stalled in the House Committee on Oversight and Accountability, with no plans to advance it to a vote. This proposed legislation seeks to create a short-term disability insurance program for federal workers, covering medical conditions not addressed under the Federal Employees Compensation Act. Despite repeated efforts to close this insurance gap, federal employees still lack access to this essential benefit.
What Are Your Current Options for Short-Term Disability?
Until legislation like the Short-Term Disability Insurance Act is passed, federal employees must rely on existing resources if faced with a short-term disability. Government benefits do not currently include short-term disability coverage, leaving employees to use their paid sick leave as their primary safety net during temporary illnesses or injuries that prevent them from working.
If your recovery extends beyond your available sick leave, finding alternative income sources becomes essential. Short-term disabilities, which typically last up to a year, are not covered by standard federal benefits. For conditions lasting over a year, applying for FERS Disability Retirement is the only available federal option.
Alternatively, private insurance providers offer short-term disability policies designed to meet diverse needs. These plans can replace a portion or all of your income, with benefits paid directly to you. Policies include an elimination period, which is the waiting time before benefits begin. Depending on your policy, this period can range from seven days to two weeks or longer. Premium costs vary based on factors such as income replacement level and policy features.
“If your recovery extends beyond your available sick leave, finding alternative income sources becomes essential.”
Determining the Right Amount of Coverage
If you’re considering short-term disability insurance, here are some key factors to evaluate:
- Sick Leave Balance: How much paid sick leave have you accumulated?
- Financial Reserves: Could your savings or emergency fund cover several months of expenses and medical bills?
- Dependents: Who depends on your income, and how would they be impacted by a sudden loss of earnings?
For tailored advice, connect with an FRC® trained advisor. They can help you compare private insurance options and determine the appropriate level of coverage for your circumstances.
