Disability Benefits - KPERS and Correctional Officers

For Members Disabled on or After January 1, 2006

Definition of Disability
Disability Criteria
Benefit Waiting Period
Monthly Disability Benefits
Maximum Benefit Period
Limited Benefit Periods
Other Features of the KPERS Disability Plan
Applying for Disability Benefits
Rehabilitative Employment Program

Definition of Disability
A member is disabled when he or she meets the following definition of total disability:

Own Occupation Period. For the first 24 months for which benefits are paid, the member is unable to perform the material and substantial duties of his or her regular occupation due to sickness or injury.

Any Occupation Period. After benefits have been paid for 24 months, the member is unable to perform the material and substantial duties of any gainful occupation due to sickness or injury.

Disability Criteria
To qualify for disability benefits:

• The member must be under the regular care of a physician.
• The member's disability must begin while he or she is covered by this plan.
• The loss of a professional or occupational license or certification does not mean, in itself, the member
  is disabled.
  

Benefit Waiting Period
If a member's claim is approved, benefits will begin after:

• The member completes 180 continuous days of total disability, or
• The member stops receiving compensation from his or her employer, whichever is later.
  

Monthly Disability Benefits
Monthly disability payments equal 60 percent of a member's monthly rate of compensation and are reduced by other income such as:

• 100 percent of Social Security benefits
• 100 percent of workers' compensation
• Any other disability benefit received by reason of employment
• Earnings from any form of employment

• Minimum monthly benefit is $100
• Maximum monthly benefit is $5,000

The member's disability payment:

• Starts the later of the member’s 181st day of disability or last day on payroll
• Is paid in equal monthly installments
• Is paid at the end of each 30 days (August 1-31 is paid September 1)

Maximum Benefit Period
Disabled members will receive disability benefits for as long as they are eligible. Members need to confirm their disability annually in the form of a doctor-certified letter. In addition, time and age limits affect eligibility.

• Employees who become disabled before age 60 can continue to receive disability benefits until they retire or reach age 65, whichever comes first.
• Employees who become disabled at or after age 60 can continue to receive disability benefits for five years or until they retire, whichever comes first.

Limited Benefit Periods
A 24-month limitation on benefit payments applies to disabilities caused by:

• Non-biologically-based mental illnesses
• Substance abuse

Limit does not apply to biologically-based mental illnesses.

Other Features of the KPERS Disability Plan

• A member continues to earn participating service credit toward retirement.
• A member’s final average salary is adjusted for inflation (according to the Consumer Price Index) if the member is disabled at least five years.
• A member's employer-paid Basic Group Life insurance continues.
• A member can continue any Optional Group Life insurance coverage by continuing to pay the premiums.

Applying for Disability Benefits

1. The employer files an Employer's Report of Disability (KPERS-60) with the KPERS office within 60 days after the member’s last day at work.
2. KPERS processes the information and sends the form to the disability program administrator.
3. The disability program administrator will forward claim forms to the member shortly before the end of the 180-day waiting period.
4. The administrator determines whether a member is approved or denied for monthly benefits based on the medical information received on the completed claim forms.

No disability benefits will be paid:

• For the first 180 days of continuous total disability.
• While the member continues to draw compensation from the employer.
• After a member withdraws contributions from the Retirement System.

Please have the member contact the Social Security Administration as soon as possible. Members must apply for Social Security disability benefits and complete any appeals process.

Rehabilitative Employment Program

The new plan features rehabilitation programs to help employees return to work. If an employee is able, he or she may be required to participate in rehabilitation programs.

Employees participating in rehabilitative employment will be allowed to earn disability income without becoming ineligible for benefits. The member's monthly benefit will be reduced by 50 percent of earnings for the first 12 months and 75 percent of earnings for the second 12 months. Rehabilitative employment benefits can continue for up to 24 months.

For Members Disabled Before January 1, 2006

Total Disability Criteria

• Disability begins while a member is covered by the plan
• Sickness or injury which prevents the member from performing all duties of any occupations for which
  he or she is reasonably qualified by education, training or experience causes disability
• A disability that requires the regular and continuous care of a physician unless such care would serve
  no helpful purpose

Qualifying for Disability Benefits

To qualify for employer provided disability benefits the member must be totally disabled for 180 continuous days. The 180-day waiting period begins the day after the member’s last day actively at work in a KPERS covered position. It does not make any difference whether the member’s injury or illness is duty-related.

All lump-sum payments paid to the member, for sick and annual leave, comp time and severance pay (except severance under a written employment agreement) must be converted to work days paid and added to the last day at work to arrive at the last day on payroll.

The employer files a Report of Disability form (KPERS-60) within 60 days after the member’s last day at work. KPERS' disability program administrator will forward claim forms to the member shortly before the end of the 180 days. The administrator makes the determination whether a member is approved or denied for monthly benefits based on the medical information received on the completed claim forms.

Please have the member contact the Social Security Administration as soon as possible. Members must apply for Social Security and complete any appeals process.

Monthly Disability Payment

• 66 2/3 percent of a member’s current compensation rate on the date the disability began
• Monthly minimum is $100
• Accrues from the later of the member’s 181st day of disability or last day on payroll
• Is paid in equal monthly installments
• Is paid once a month in arrears (August 1-31 is paid September 1)
• Is reduced by 100 percent of Social Security benefits
• Is reduced by 100 percent of worker’s compensation
• Is reduced by any other disability benefit received by reason of employment

Continuing Eligibility Requirements and Age Limits

Members need to confirm their total disability annually. Each year, KPERS sends members a letter to have certified by their doctor. In addition, time and age limits affect eligibility.

• Employees who become disabled before age 60 can continue to receive disability benefits until they retire or reach age 65, whichever comes first.
• Employees who become disabled at or after age 60 can continue to receive disability benefits for five years or until they retire, whichever comes first.

• A member continues to earn participating service credit toward retirement.
• A member’s final average salary is adjusted for inflation (according to the Consumer Price Index) if the member is disabled at least five years.
• A member’s employer-paid Basic Group Life insurance continues.
• A member can continue any Optional Group Life insurance coverage by continuing to pay the premiums.
• Withdrawing contributions from KPERS forfeits all the member’s rights to all benefits, including disability benefits.

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