Short answer
OWCP time counts as service, but the high-3 uses the position’s basic pay.
OPM says periods of leave without pay while receiving OWCP workers compensation are creditable service for length of service, the high-3 average salary, and the annuity computation. OPM also says the high-3 uses only the basic salary rate of the position and does not include OWCP payments. OPM says an injured worker must elect between workers compensation and a retirement annuity for the same period, and that election can be changed. The Department of Labor administers OWCP; OPM administers FERS retirement.
Start here
What you actually came to find out
Plain answers first. Sources stay below for checking details.
Does my OWCP time count toward retirement?
OPM says leave without pay while receiving OWCP is creditable for length of service, the high-3, and the computation.
Is my high-3 based on my OWCP payments?
OPM says the high-3 uses only the basic salary rate of the position and does not include OWCP payments.
Can I collect OWCP and my FERS annuity together?
OPM says you must elect between workers compensation and a retirement annuity for the same period; the election can be changed.
Who handles which benefit?
The Department of Labor administers OWCP wage-loss compensation; OPM administers your FERS retirement.
Service credit
Counts
OPM says OWCP leave-without-pay periods are creditable for service and the computation.
Source trail: OPM
High-3 basis
Position pay
OPM says the high-3 uses the basic salary rate of the position, not OWCP payments.
Source trail: OPM
Dual compensation
Elect one
OPM says you elect between workers compensation and an annuity for the same period.
Source trail: OPM
Who administers
DOL and OPM
The Department of Labor runs OWCP; OPM runs FERS retirement.
Source trail: DOL
A clean way to read this: the clock keeps running for service credit, but the high-3 is built on what the position pays, not on the OWCP check. The annuity and the OWCP payment are an either-or for the same period, not a stack.
Neutral landscape
The shape of the question
Start with service credit. OPM says periods of leave without pay while receiving OWCP are creditable for length of service, the high-3, and the annuity computation.
Source trail: OPM
Then the high-3. OPM says the computation uses only the basic salary rate of the position and does not include OWCP payments.
Source trail: OPM
Then the either-or. OPM says an injured worker must elect between workers compensation and a retirement annuity for the same period, and the election can be changed.
Source trail: OPM
Curator core
What the authorities say
These sources are here for the reader who wants to check the work. The plain-English answer stays above them.
Source 01
OPM
CSRS/FERS Handbook, Chapter 102
OPM CSRS and FERS Handbook Chapter 102 covers how workers compensation interacts with retirement: creditable service, the high-3 computation, and the rule against dual compensation.
Source framing
OPM says periods of leave without pay while receiving workers compensation are creditable service, that the high-3 uses only the basic salary rate of the position and does not include OWCP payments, and that an employee must elect between workers compensation and a retirement annuity.
Strongest for: how OWCP time is credited, how the high-3 is figured, and the dual-compensation election
Read at OPMSource 02
DOL
Office of Workers Compensation Programs (FECA)
The Department of Labor Office of Workers Compensation Programs administers the Federal Employees Compensation Act, which provides wage-loss compensation for job-related injury or illness.
Source framing
The Department of Labor says its Office of Workers Compensation Programs administers FECA, the federal workers compensation program, separately from OPM-administered retirement.
Strongest for: which agency administers FECA wage-loss compensation
Read at DOLPlain-English forks
The forks people face
Most retirement questions hide a few smaller decisions. These are the practical pieces that change the plan.
Are you asking about service credit or about the high-3 amount?
Why it matters: OPM credits the time as service, but builds the high-3 on the position’s basic pay rather than the OWCP payment.
In real life: This fork separates whether the years count from how much the pension is based on.
What to look at: What to look at: OPM CSRS/FERS Handbook Chapter 102 on creditable service and high-3 computation.
Do you want OWCP or the annuity for this period?
Why it matters: OPM treats them as an election for the same period, not a combination, with one exception for scheduled awards.
In real life: This fork is the income decision, and OPM says it can be revisited.
What to look at: What to look at: OPM Chapter 102 rule against dual compensation.
Which agency answers this question?
Why it matters: The Department of Labor handles the OWCP claim; OPM handles the retirement computation.
In real life: This fork tells you who to call for which piece.
What to look at: What to look at: DOL OWCP for the FECA claim, OPM for the annuity.
Common questions
Quick answers
Short, plain answers for the questions people usually have next. The source trail stays available below.
Does time on OWCP count toward my FERS retirement?+
OPM says periods of leave without pay while receiving OWCP are creditable for length of service, the high-3 average salary, and the annuity computation.
Is my high-3 based on my OWCP compensation?+
No. OPM says the high-3 uses only the basic salary rate of the position and does not include OWCP payments.
Can I receive OWCP and a FERS annuity at the same time?+
OPM says you must elect between workers compensation and a retirement annuity for the same period. OPM also says scheduled award payments can be paid in addition to an annuity.
Is the election between OWCP and the annuity permanent?+
OPM says the election is not irrevocable and can be changed when it is to the person’s advantage.
Who do I contact about each benefit?+
The Department of Labor Office of Workers Compensation Programs administers the OWCP claim; OPM administers the FERS retirement computation.
Does OWCP time hurt my pension?+
OPM credits the time as service, and the high-3 is based on the position’s basic pay, so the years count toward the computation. A benefits specialist can confirm your specific record.
How this page is curated
This page uses the OPM CSRS/FERS Handbook Chapter 102 for creditable service, high-3 computation, and the rule against dual compensation, and the Department of Labor OWCP page for which agency administers FECA. It keeps the service-credit question separate from the high-3 question because OPM answers them differently.
Read the planner methodologyTrust anchor
Sources used on this page
Every source named above is listed here in one place.
DOL. Office of Workers Compensation Programs (FECA)
https://www.dol.gov/agencies/owcp/FECAOPM. CSRS/FERS Handbook, Chapter 102
https://www.opm.gov/retirement-center/publications-forms/csrsfers-handbook/c102.pdf
Before you act on this
This plan is educational. It is not personalized financial, tax, or insurance advice. Projections illustrate the math, they do not predict the future. Talk to your own licensed financial professional before acting on any of it.