Disability Retirement

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Disability Retirement

• Lori Schenewerk
• Senior Benefits Counselor
• PSRS/PEERS Member Services

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Definition

• Disability, for PSRS/PEERS retirement purposes,
  is defined as a physical or mental impairment
  that appears to be permanent and prevents a
  member from earning a livelihood in any
  occupation.

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Eligibility

• Must be younger than age 60
• Must have 5.0 years of creditable service in
• districts included in the retirement system.
• Must be determined to be totally and
• permanently disabled
• Must be unable to earn a livelihood in any
• occupation.

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Eligibility
Temporary or partial disability benefits are not
available under the retirement law. Permanent
inability to earn a livelihood is a prerequisite
to approval of a PSRS/PEERS disability retirement
application. PSRS/PEERS defines a livelihood
as earning 18,000 or more per year.
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PSRS/PEERS

• Benefits are payable to member for lifetime or
  recovery
• from disability
• Benefits are 100 taxable until members reach
• minimum Service Retirement age as defined by
  IRS.
• Health insurance benefits available to Disability
  Retiree same as Service Retiree.

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PSRS/PEERS

• Eligible for Cost-of-Living Allowances
• - PSRS - 2nd January after retirement
• - PEERS - 4th January after retirement
• Beneficiary benefits available
• Member should contact Social Security
  Administration for any eligibility of benefits
  from SSA.
• First paid from the members account balance.

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PEERS Disability Benefits

• First, a member is approved through the Social
  Security Administration.
• Then, if dates correspond with PEERS service, the
  member is automatically approved for PEERS
  Disability Retirement.
• Benefit 90 of the service retirement benefit
  as though the member is age 60.
• If disapproved by SSA, the member can have PEERS
  office request medical information and have
  itreviewed by our Medical Advisor as we do
  for PSRS.

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PSRS Disability Benefits

• Member must provide a minimum of 2 names and
  addresses
• of physicians and/or hospitals for medical
  information.
• Member must sign a Release of Information so we
  can
• contact physician/hospital for medical
  information.
• School District is contacted when DR application
  is filed for a termination date, absences for
  last 3 years and assessment of DR status.
• Medical Advisor reviews all information and
  makesthe determination for approval/disapproval
  of Disability Retirement.

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PSRS DR Calculation

• DR monthly disability benefit will be either
• 90 of the service retirement benefit payable as
  though the member were age 60
  
  or
• 50 of the monthly salary for the last full year
  of credit
• Whichever is greater except
• The disability benefit cannot exceed the service
  retirement benefit the member would have received
  had the member continued to work to age 60 at the
  salary rate in effect at the time of the
  disability.
• Benefit is determined by law higher of 90 or
  50, but cannot exceed working until age 60.

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Application Estimate

• In order for PSRS/PEERS to provide an estimate to
  our members we will need the following
• Member name, address and phone number.
• Resignation date or end of leave of absence.
• Some districts accept resignation contingent upon
  approval of Disability Retirement the member
  must talk with the district regarding this.
• Salary career ladder, additional pay, etc.
• Sick leave remittance can be used to earn 1.0
  credit, etc.

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Application Estimate

• In order for PSRS/PEERS to provide an estimate
• to our members we will need the following
• Inactive member will need to provide income
  information for time not employed by the
  district. Any member eligible for DR may file an
  application an approval/disapproval decision is
  made based on all information provided.
• Medical information must trace back to covered
  employment or within one year of covered
  employment.
• POA or RIA on file before information will be
  released to anyone except the member.
• SR vs. DR vs. WD information is available.

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Beneficiary Benefits

• Benefit is payable to member for the month of
  death.
• Important to keep Nomination of Beneficiary
  designations current.- A DR can change their NB
  designation at any time regardless of the
  balance in their account.- Statutory Succession
  of Beneficiaries applies to DRs with life
  change status.

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Beneficiary Benefits

• PEERS Options
• Lump sum of available account balance, OR
• SR Option 2 retirement plan at members
  eligibility.
• PSRS Options
• PSRS 5,000 Death Benefit, AND
• Lump sum of available account balance, OR
• SR Option 2 retirement plan at members
  eligibility, OR
• Survivor benefits to eligible spouse/child(ren)/pa
  rent.

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DR Status Follow-Ups

• Yearly certification form sent to member.
• - Must be completed and signed by member.
• - Must be completed and signed by physician.
• If still totally and permanently disabled DR
  benefits continue.
• If not - Must request medical information to be
  reviewed by Medical Advisor to determine
  continued disability status.

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Working after DR

• A disability retiree may work part-time for a
  non-covered employer and earn up to 18,000 over
  a 12-month period.
• He or she cannot work in a district included in
  our retirement system prior to age 60 in ANY
  capacity.

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Working after DR

• At attainment of age 60, a Disability Retiree is
  under the
• same limitations as a Service Retiree.
• PSRS - 550 hours per school year or earn up to
  50 of the annual compensation payable for the
  position given the members level of experience
  and education without effecting the DR benefit.
  
• PEERS - 550 hours per school year without
  effecting the DR benefit.
• DRs are not eligible under Critical
  Shortageuntil attainment of age 60.

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Recovery from Disability

• If member recovers from disability benefits
  cease.
• If member is not sure of health status, DR may
  request a trial basis to return to work. Either
  covered employment or non-covered employment.
• Covered Employment - New membership record form
  completed and membership set up. DR membership
  placed on HOLD.
• Non-covered employer - DR membership placed on
  HOLD. Member can request Service Retirement at
  eligibility.

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Recovery from Disability

• If DR is unable to continue working at anytime
  during the
• trial basis time frame he or she may return to
  Disability
• Retirement.
• An examination from their treating doctor is
  requested.
• They do not receive the monthly payments that had
  been placed on HOLD.

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QUESTIONS?
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Thank you for attending!