Post on 29-Sep-2020
1
2
DISABILITYRETIREMENT
3
WHAT BENEFITS DOES LACERA OFFER?
SalarySupplement
ServiceRetirement
Service-Connected Disability
Nonservice-Connected Disability
Concurrent with
disability application
Waive reinstatement
rights
Eligible from first day
of employment
Must be permanently
disabled
Must have a direct
causational link to
the workplace
Benefit = 50% of
salary, tax free, and
50% medical subsidy
Must have at least
five years of service
(60 months)
Must be permanently
disabled
No direct link to the
workplace
Benefit = up to 33.3%
of salary
Same application
process as
SCD/NSCD
Allows member to
continue working in a
new position
Benefit amount is
dependent on
SCD/NSCD
4
A STEP-BY-STEP GUIDE
DISABILITY RETIREMENT
Eligibility and Benefits
Application Process
Board of Retirement Actions
Frequently Asked Questions
5
APPLICATIONEMPLOYEE
Disability Retirement: A Step-by-Step Guide
Application for Disability Retirement
Authorization for Release of Medical, Psychological, Employment Records and Information, and Workers’ Compensation Records
Physician Statement for Disability Retirement
Missed Medical Appointment Form
Claims Against Third Parties
Notice of Attorney Representation
Application for Supplemental Disability Allowance
6
EMPLOYER
Disability Retirement Brochure
Disability Retirement Eligibility and DepartmentApplication Instructions
Application for Disability Retirement
Missed Medical Appointment Form
Physician Statement for Disability Retirement
Claims Against Third Parties
Authorization to Obtain & Release Records
APPLICATION
7
EMPLOYER-FILED APPLICATIONS
When applying on behalf of the employee, be as thorough as possible and include:
Class specification, list of usual and customary duties, physical demands (current RU-91)
Duties the employee can no longer sustain (can be discussed during IPM)
Written documentation of department’s efforts to accommodate
Class Specification (for both original and new positions)
List of usual and customary duties for identified position
Identified position that employee is willing to acceptIf applying for a
supplemental benefit also include:
8
WE NEED MEMBER COOPERATION
The member will be contacted, informed that the department has applied on their behalf, and provided with a copy of the employer-filed application.
The member will be counseled on the process and the documents required in order to proceed.
The member has 30 days to respond (cooperate).
Should the member not cooperate, the case will be closed and the department notified in writing. This does not prevent the member from filing their own application at a later date.
If a department files on behalf of a member, DRS cannot proceed unless the member cooperates and provides the supporting documents.
9
WHEN SHOULD THEY APPLY?
“Permanent and stationary” is not relevant to disability retirement.
There is no need to wait for a workers’ compensation case to settle.
LACERA does not base their determination on WC decisions or utilize work restrictions provided by a treating physician or AME.
The employee can apply as long as their physician deems them permanently incapacitated per disability retirement standards.
An application for disability retirement must be filed while the member is in active service or within four months of terminating County service.
10
APPLICATION PROCESSRE
VIEW
APP
LICA
TIO
N
Complete ApplicationEligibility AssessmentInitial Counseling Needs
OBT
AIN
REC
ORD
SMedical ProvidersThird Party Administrators(TPAs)Personnel and Return to Work CO
NDU
CT IN
TERV
IEW
Employee Statements
Supervisor, Co-Worker, and/or RTW Statements
EXA
M B
Y PA
NEL
PH
YSIC
IAN
Incapacity
Service Connection
Work Restrictions (if any) SU
BMIT
TO
TH
E BO
ARD
The Board of Retirement is the Final Trier of Fact
11
THE BOARD DECISION
A recommendation is submitted to the Board of Retirement.
After the decision, the applicant will be notified in writing of the BOR’s decision and appeal rights.
Decisions will be posted on the LACERA website within 48 hours of the Board meeting. The history of Board actions can be found on HR Pros.
12
Effective dates are coordinated with LACERA’s Benefits Division, the employee, and the employee’s department.
The Benefits Division will contact the member within 45 days of the Board decision.
WHEN IS IT EFFECTIVE?
13
SUPPLEMENTAL DISABILITY
ALLOWANCE
14
(SALARY SUPPLEMENT)SUPPLEMENTAL DISABILITY ALLOWANCE
The vacant position’s classification must be known prior to evaluation by our Board Panel Physician, and available at the time the Board grants the benefit.
The offer of a permanent position with a lower salary schedule that accommodates the employee’s permanent work restrictions
The acceptance of this position by the employee
The Board’s determination that the employee is disabled from the original position and can do the new position
A Supplemental Disability Allowance allows the County to retain experienced, incapacitated employees in County positions. It is contingent on:
15
APPLICATION FOR SUPPLEMENTAL DISABILITY ALLOWANCE
Applicant must submit theApplication for SupplementalDisability Allowance withinsix months of the disability retirement application.
16
RESPONSIBILITIES
DEPARTMENT
Disability Retirement Services works closely with RTW to facilitate a better awareness of the salary supplement options.
DISABILITY RETIREMENTConfirm the employee has applied for disability retirement benefits with the salary supplement
Can sit employee in item pending the Board’s decision
For cautionary purposes, it is recommended the employee’s salary and item remain unchanged during the disability retirement application process
Can be present during an IPM if requested
Will provide counseling to the member
The evaluation process remains the same
Active communication with the department
17
MEMBER’S FUTURE EARNINGS
The calculation is based on the member’s scheduled earnings and the type of benefit granted.
The member can be promoted in the new position career chain. When the member receives a pay raise, it is reviewed against the original item number salary and the salary supplement is adjusted accordingly.
18
HOW IS THE BENEFIT CALCULATED?
Power Equipment Technician demoted to Intermediate Typist Clerk: Scenario 1 Scenario 2
Previous position monthly salary $6,000 $6,000
SCD Supplemental Retirement Allowance(50% previous position monthly salary) $3,000 $3,000
NEW position monthly salary $3,500 $2,500
Difference in salary $2,500 $3,500
Applicant’s NEW monthly income $6,000 $5,500
This is the Maximum Benefit
Exceeds the Maximum Benefit
Cannot exceed the original salary.Benefit is limited to the lesser of the
difference in salary or supplemental retirement allowance.
19
THE BOARD GRANTED THE SUPPLEMENT.
Once the Board takes action, the department is notified and an effective date for the salary supplement is established.
The department may then place the employee in the new job item.
Note: The salary supplement is considered a benefit in lieu of a pension. Therefore, service and non-service connected salary supplements are taxable per IRS rules. In addition, salary supplements are not entitled to COLA.
The employee may elect to terminate service at any time and take their disability retirement benefit. There is no need to reapply for disability retirement.
WHAT’S NEXT?
20
WHAT IF THE BOARD DENIES IT?
If the Board Panel Physician provides DRS with work restrictions, they will be provided to the department prior to submission to the Board of Retirement. If the department is able to permanently accommodate the restrictions, and the accommodation is found to be reasonable, disability retirement may be denied.
If the Board determines that the employee is not disabled, the employee is capable of returning to work, full duty, to the original position.
When the Board makes an adverse finding against the applicant, the applicant and/or department can appeal the decision within 30 days.
21
LONG-TERM DISABILITY
22
LONG-TERM DISABILITY
To extend Long-Term Disability benefits after 24 months, the employee must be deemed disabled according to Social Security guidelines, and they must file (if eligible) for a service retirement and/or a disability retirement with LACERA.
Note: The salary supplement is still considered a disability retirement. The only difference is that with a salary supplement, an employee can continue working.
The employee may elect to terminate service at any time and take their disability retirement benefit. There is no need to reapply for disability retirement.
23
NOWWHAT?
1. Stop working
2. Contact your department
3. LACERA will contact your department
4. Speak to a retirement benefits specialist
5. Fill out forms
6. LACERA will continue the process
7. Payments will begin
LACERA’S BOARD OF RETIREMENT HAS GRANTED YOU A DISABILITY RETIREMENT.
24
the date of your application, but not earlier than the day after your last date of regular compensation; or
the date after your last date of regular compensation, if a retroactive date is granted by the Board.
YOUR DISABILITY EFFECTIVE DATE IS:
25
If you are granted an earlier effective date by the Board, you can choose the date after your last date of compensation or the date of application.
There are several factors to consider when selecting the date, such as long-term disability from the County and the amount of your final compensation.
Reciprocity: You cannot receive a larger disability retirement benefit than what you would have received if all of your service had been with just one system.
IMPORTANT CONSIDERATIONS
26
QUESTIONS?
WEB
www.lacera.com
rlurina@lacera.com
LACERA
300 N. Lake, Pasadena, CA, 91101
PHONE626-564-6000 ext. 4445
Russell LurinaSenior Disability Retirement Specialist