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RETIREMENT AND RETIREMENT BENEFITS

Disability Benefits and Procedures

Eligibility for Disability Retirement Benefits – (See R. S. 11:1522)

A member who has at least ten years of service credit, or whose disability was caused solely as a result of injuries sustained in the performance of his official duties, will be eligible to receive disability retirement benefits once his request has been approved by the board of trustees.  In order to be considered for disability by the board of trustees, a member must undergo the procedures for medical review as discussed in the section titled “Application For Disability Benefits, Rules Related to the Commencement of Disability Benefits, and the Payment of Disability Benefits” and be certified as totally and permanently disabled by the State Medical Disability Board.

Calculation of Disability Retirement Benefits – (See R. S. 11:1522)

Once the board of trustees has approved his application for disability retirement, a member shall be paid monthly disability retirement benefits equal to the greater of forty percent of his monthly average final compensation or seventy-five percent of his monthly regular retirement benefit calculated as explained in the section titled “Computation of Regular Retirement Benefits”

Application For Disability Benefits, Rules Related to the Commencement of Disability Benefits, and the Payment of Disability Benefits – (See R.S. 11: 216 and R.S. 11: 218)

A member who becomes totally disabled, who files an application for disability benefits while in service, and who, upon medical examination and certification as set forth below, is determined to be totally disabled will, if otherwise qualified, be eligible for disability benefits if the disability was incurred while the member was an active contributing member of the system in active service.  If the application for disability benefits is not filed while the member is in active service, it will be presumed that the disability was not incurred while the member was an active contributing member of the system in active service (unless the application is for retirement described in the section title “Deferred Disability Retirement”).  Such presumption may be overcome only by clear, competent, and convincing evidence that the disability was incurred while the member was an active contributing member of the system in active service. 

A disability claimed by a member shall have been incurred after commencement of membership in the system.  Disability claims may not be honored in the case of preexisting conditions.

The applicant may submit any medical evidence, data, and other related material which the member feels is material, related to, or in support of the application for disability benefits along with the application for disability benefits.  In addition, the applicant's supervisor shall submit a report that includes a brief history of the case and the supervisor's opinion as to the applicant's present ability to perform their normal required duties.  The board of trustees may require additional information to be included in the application.

The applicant's disability case history shall be examined either by that member of the State Medical Disability Board whose area of specialty most closely relates to the nature of the claimed disability or by an outside physician designated by the board.  The examining physician shall either conduct a medical examination of the applicant or waive the medical examination if obvious and overwhelming medical evidence of disability exists to his satisfaction.  The cost of the examination, including costs of laboratory tests, X-rays, and other such direct examination procedures will be borne by the retirement system; however, all non-direct costs, such as hospital room and board charges and other such expenses, must be borne by the applicant.  The initial examination should be completed within six weeks of the date of the applicant's filing for benefits.

The examining physician shall submit to the board an in-depth report that must include the physician’s medical evaluation and conclusions as to the applicant's claimed disability.  Each member of the State Medical Disability Board or any board-designated physician has full authority to certify total disability with regard to an applicant they examine.  An applicant shall be considered as certified totally disabled if, in the in-depth report submitted by the examining physician, the physician declares the applicant to be totally incapacitated for the further performance of the applicant’s normal duties and states that such incapacity is likely to be permanent.

If either the applicant or the board of trustees contests the examining physician’s final certification decision, the contesting party has the right to request a second medical examination.  Such an examination is allowed if a written appeal is filed within thirty days of notification of the certification decision.  This second examination will be performed by a member of the State Medical Disability Board or by a board-designated physician and will be performed at the expense of the requesting party.  The second physician must also submit an in-depth report to the board.  This report must include a medical evaluation of the applicant and conclusions as to the applicant's claimed disability.

If the second examining physician concurs in the findings and recommendations of the first physician, the first physician's decision will stand as final and binding and will not be subject to further appeal other than through the courts.

If the second examining physician disagrees with the findings and recommendations of the first physician, the two physicians must select a third specialist to conduct another examination and prepare and file a third report in the same manner as the first two.  The majority opinion of the three examining physicians will be final and binding and not subject to further appeal other than through the courts.  The cost of the third medical examination will be the responsibility of the retirement system if the applicant is certified as disabled or the applicant if the disability claim is denied.

The board should receive a final and binding disability certification from a member of the State Medical Disability Board, or a board-designated physician, and retire an eligible disability applicant within one hundred and twenty days of the applicant's date of filing for disability retirement. Disability benefits become payable on either the filing date of the application for disability retirement or the day following the exhaustion of all sick leave or annual leave claimed by the applicant, whichever is the later.

Disability Vesting (Deferred Disability Retirement) – (See R. S. 11:217)

A person with twenty or more years of service credit who withdraws from active service prior to attaining the age required to be eligible for retirement may leave their contributions on deposit with the system and, if they become totally and permanently disabled prior to attaining the age required for normal retirement, they will be eligible for a benefit.  The benefit will equal the lesser of either the applicable disability benefit or the applicable normal benefit and will be payable upon application and approval by the Board of Trustees.  Upon attaining the normal vested retirement age, the disability benefit will cease and the member will receive the full vested normal retirement.

The State Medical Disability Board – (See R. S. 11:219)

The State Medical Disability Board is to be composed of physicians appointed by the board of trustees. Each medical board member is responsible for either reviewing the medical case histories or conducting medical examinations of members of the system who apply for disability benefits and for submitting findings and recommendations to the board of trustees.  The State Medical Disability Board or any member thereof or the board of trustees may call upon physicians in any area of medical specialty and from any area of the state either to review case histories or to conduct regular or appeal examinations of disability retirement applicants or retirees.  These alternate physicians shall follow the same procedures and have the same authority as regular members of the State Medical Disability Board.

Certification of Continuing Eligibility for Disability Benefits – (See R. S. 11:220)

Once each year during the first five years following disability retirement, and once in every three-year period thereafter, the board may require a disability retiree who has not yet attained the equivalent age of normal retirement to undergo a medical examination at the retiree's expense.  The examination will be made at the place of residence of the retiree if the retiree is immovable or any other place agreed to by a physician on the State Medical Disability Board or board designated specialist.  The examining physician must submit a report to the board recommending either continuing or ceasing the former member’s disability status.  If a member of the State Medical Disability Board issues a final and binding report to the board stating that a disability retiree's total disability has ceased, the board must order the discontinuation of the disability benefit.  A contested decision may be appealed pursuant to the procedures described in the section titled “Application For Disability Benefits, Rules Related to the Commencement of Disability Benefits, and the Payment of Disability Benefits.”

If a disability retiree who has not yet attained the equivalent age of normal retirement refuses to submit to a medical examination by a physician designated by the board, payment of the disability benefit will be discontinued.  Payment will be discontinued until the disability retiree submits to the examination.  If the disability retiree’s refusal continues for one year, the board will revoke all rights to the disability pension.

A person’s right to normal retirement benefits based upon age and service will not be affected by either having received disability benefits in the past or having the disability benefits terminated involuntarily.

Authority of the Board to Modify Disability Benefits – (See R. S. 11:221)

If the board of trustees determines that a disability retiree is engaged in a gainful occupation paying more than the difference between the disability retirement benefit and the disability recipient’s average final compensation (see definition), then the amount of the disability benefit will be reduced.  The total disability benefit will be an amount that, when added to the amount earned or earnable by the disability retiree, equals the average final compensation (see definition).  If the former member’s earning capacity later changes, the amount of the disability benefit may be changed.  Such a change may not cause the new benefit to exceed the amount of the original benefit or an amount which, when added to the amount earnable by the former member, exceeds the recipient’s average final compensation.

Each disability retiree must submit to the board of trustees by May 1st of every year a notarized annual earnings statement detailing any earned income from employment in the previous tax year.  If a disability retiree refuses to submit such an earnings statement by May 1st, their disability benefit may be discontinued, without retroactive reimbursement, until the statement is filed.  If such a refusal continues for the remainder of the calendar year, the board of trustees may revoke all rights in and to the disability pension.

A disability retirement benefit will be modified when the sum of a whole life annuity equivalent of the benefits or financial awards which accrue to a disability retiree solely as a result of their disability and the disability benefit to which they are entitled exceeds their average final compensation (see definition).  The disability retirement benefit is reset so that the sum of the above equals the average final compensation (see definition).  If these outside benefits or awards are reduced, exhausted, or terminated, the board may increase the disability benefit then being paid so that the sum of the disability benefit and the outside benefits equals the amount of the disability retiree's final compensation (see definition).  However, in no case may the disability benefit be increased to an amount greater than that to which the retiree was originally entitled at retirement.

Individual private insurance settlements and separate private retirement accounts and other similar non‑system resources, including disability benefits from the Social Security Administration and the Veterans Administration, other than worker's compensation, are exempt from consideration in these computations.  Social security will not be considered if the plan from which the member is retired provides for joint participation and benefits with social security.

An annual cost-of-living adjustment will be made to the average final compensation figure used in all disability benefit modification computations.  This cost-of-living adjustment will be based upon and directly reflect the annual percentage increase or decrease in the Consumer Price Index for the preceding calendar year.

A member who retires while in service on a disability retirement and who has credit for the number of years of service required for normal retirement will, upon attainment of the age required for normal retirement, be eligible to receive full normal retirement benefits.  To receive such benefits, the member must file an application with the board and, upon the commencement of payments of normal retirement benefits, the payment of disability benefits shall cease.

Rules Related to Disability Retirees Who Return to Service – (See R. S. 11:224)

If a disability retiree under the age of sixty is restored to service with a participating employer, his retirement allowance will cease, and he must again become an active contributing member of the system.  Upon becoming a member again, he will be required to contribute at the rate in effect at that time.  All prior service in effect at the beginning of disability retirement will be restored to full force and effect, and upon subsequent normal retirement, the member will be credited with all additional service.  If such a member contributes for at least three years, the period of time on disability will be counted as service for purposes of establishing eligibility, but not used in the computation of normal retirement benefits.