Reasonable Accommodation Workers’ Compensation vs. Disability Retirement

Workers’ Compensation (Form of Vocational Rehabilitation) In Worker’s Pre-Injury Job Class (Modified Work) In New Job Class (Alternative Work)

Disability Retirement In Applicant’s Pre-Injury job class, therefore Applicant not Permanently

Incapacitated In new job class, but only after found to be Permanently Incapacitated

(re-employment plan pursuant to Section 31725.65)

Employee working within Reasonable Accommodation Workers’ Compensation

Within worker’s job class (Modified Work) Employer may provide modification to applicant’s assignment or offer

another assignment in job class Written offer If worker accepts offer, and accommodation is successful, a disability

retirement application is avoided

In new job class (Alternative Work) Employer provides permanent accommodation in new job class

Written offer to worker Worker either returns to work or may file a disability application

Employee working within Reasonable Accommodation (cont’d)

Disability Retirement In Applicant’s Pre-Injury job class, Applicant not considered

Permanently Incapacitated In new job class, but only after found to be Permanently Incapacitated

(re-employment plan pursuant to Section 31725.65) Board of Retirement (BOR) has fiduciary duty to independently

investigate and determine availability of reasonable accommodation BOR decision not dependent on whether employer has actually

offered accommodation to applicant BOR is a separate legal entity, empowered to make its own finding of

fact

Employee working within Reasonable Accommodation (cont’d)

Disability Retirement If BOR determines reasonable accommodation is available within

applicant’s pre-injury job class: Applicant Is Not Permanently Incapacitated Disability Retirement Is Denied

Supplemental Disability Allowance (Salary Supplement) Why do we retain disabled employees in County Service?

County Departments face critical budget cuts, layoffs, and hiring freezes. Salary Supplement is the process of retaining experienced, disabled employees in County positions.

Supplemental Disability Allowance Government Codes Sections 31725.5, 31725.6 and 31725.65

Applications are to be treated like any other application; the criteria is that the applicant must be found disabled from the ORIGINAL position

Also Known as Salary SupplementThe Supplement Disability Allowance is commonly referred to as the Salary Supplement in LACERA member materials, including the Summary Plan Descriptions (Plan Books).

Section 31725.5 - Applies to nonservice-connected disability retirements only

Section 31725.6 and/or 31725.65 - Applies to service-connected disability retirements only

Voluntary Demotion There are two options for Voluntary Demotion:

1. Demoted to lesser position, lesser salary, and no provisions to supplement for the pay cut. These cases will have the supplement start on either the date of application or the date of demotion per Section 31724.

2. Demoted to lesser position, with a Y-Rate, assigned at the time of demotion. Pay stays the same until disability is determined.

Conditions of Supplemental Disability Allowance Contingent on:

The offer of a permanent position with a lower salary schedule which accommodates the employee’s permanent work restrictions

The acceptance of this position by the employee

Engaging the Process The Disability Retirement Services Division works closely with

County Departments’ Human Resource managers and Return to Work Coordinators to facilitate a better awareness of the Salary Supplement options

Department’s Responsibilities Confirm the employee has applied for disability retirement

benefits with the Salary Supplement Place the employee on a “Y”-Rate; pending the Board of

Retirement’s action The employee’s salary remains unchanged during the disability

retirement application process

LACERA’s Responsibilities Once the Board of Retirement takes

action, the Department is notified and an effective date for the Salary Supplement is established

If the application is denied, appeal rights are not affected

Member’s Future Earnings The calculation is based upon the member’s actual earnings at

the time the benefit is granted. The calculation does not allow for future item raises and cost-of-living increases.

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 lowered accordingly. If the new item number salary exceeds the original position’s salary, the Salary Supplement stops.

SCD Supplemental Disability

Allowance CalculationDeputy Sheriff I permanently demoted to Dispatcher:Previous position monthly salary = $6,077.36NEW position monthly salary = $3,996.82Difference in salary = $2,080.54SCD Supplemental Retirement Allowance = $2,080.54SCD Benefit if member retires

(50% final comp) = $3,038.54