QUESTION: Is it true that legally I may be able to earn more while on disability retirement than I did while working in my old government job?

ANSWER: Yes. By keeping your earnings in your new job just below the 80% ceiling and combining these earnings with your disability annuity, you can, without any penalty, earn more than you formerly did when you were healthy and employed by the government. Nor is there anything illegal or unethical about purposely keeping your earnings below the 80% ceiling and as a consequence, earning more on disability than you earned previously.