KP&F
Disability Benefits Introduction
When a member dies, submit an Employer's
Report of a Death, Disability or On-The-Job Accident form (KP&F-560).
KP&F disability is defined as occupational rather
than total disability as required for KPERS disability. Proof
of continuing disability is required annually for the first five
years of disability.
No disability coverage is provided if the disability
arises from employment other than with the participating employer.
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Tier I Disability
Benefits
Tier I members must distinguish whether their disability
is service-connected or non service-connected.
A “service-connected” disability includes
any disability resulting from heart disease or a disease of the
lung or respiratory tract, as well as cancer resulting from exposure
to heat, radiation or a known carcinogen, if the member has at
least five years of credited service.
Tier
I service-connected, with children
- Annual benefit of 50 percent of member’s
final average salary.
- Annual benefit of 10 percent of final average
salary for each eligible child (up to age 18 or 23 if a full-time
student). Children’s benefits are payable to a court appointed
conservator. Total annual benefit cannot exceed 75 percent of
member’s final average salary.
- All benefits accrue from member’s last
day on payroll.
- Member will stay on disability for the member’s
lifetime or until no longer disabled.
- Member’s annual benefit of 50 percent
of final average salary is not included in gross income for
federal income tax purposes. The children’s benefit is
not included in gross income for federal income tax purposes.
Tier
I Service-Connected, without children
- Member will receive an annual benefit of 50
percent of final average salary or
- 2.5 percent x years of service credit x final
average salary, up to a maximum annual benefit of 80 percent
of member’s final average salary for member’s lifetime.
- All benefits accrue from member’s last
day on payroll.
- Member will remain on disability for lifetime
or until the member is no longer disabled.
- All disability benefits are included in gross
income for federal income tax purposes, with the exception of
50 percent of the member’s final average salary.
Tier
I non service-connected disability, with or without children
- There is a 180 day waiting period from member’s
last day at work before member may apply for disability.
- Annual benefit of 2.5 percent x years of credited
service x final average salary
- Minimum annual benefit of 25 percent of final
average salary
- Maximum annual benefit of 80 percent of final
average salary
- The member will remain on disability for his
or her lifetime or until the member is no longer disabled.
- All benefits accrue from member’s last
day on payroll.
Tier
I Death Benefits for Disability Recipients
If the member is a Tier I service-connected disability
recipient and dies from any cause within two years following the
disability or if the member dies after two years following the
disability of the same cause as the disability, the following
benefits are payable.
- Spouse will receive a lifetime annual benefit
of 50 percent of member’s final average salary paid in
a monthly benefit.
- Eligible children (age 18 or 23 if a full-time
student) will receive an annual benefit of 10 percent of member’s
final average salary. All benefits payable on behalf of minor
children must be paid to a legally-appointed conservator.
- There is a family maximum annual benefit of
75 percent of member’s final average salary.
- Benefits are not taxable for federal income
tax purposes.
If the member is a Tier I service-connected disability
recipient and dies after two years, from a cause different than
the member’s disability, the following benefits are payable.
- Spouse will receive a lump-sum payment of 50
percent of the member’s final average salary.
- Spouse will receive a lifetime annual benefit
of 50 percent of the member’s monthly benefit.
- If there is no surviving spouse the monthly
benefit will be payable in equal shares to eligible children
(age 18 or 23 if a full-time student). All benefits payable
on behalf of minor children must be paid to a legally-appointed
conservator.
- Benefits are taxable for federal income tax
purposes.
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Tier II Disability
Benefits
- If a member meets requirements for normal retirement,
he or she may not apply for disability.
- There is no distinction between service-connected
and non service-connected disability benefits.
- There is no waiting period from the member’s
last day actively at work to apply.
- There are no children’s benefits with
Tier II disability.
- Member will receive an annual benefit of 50
percent of final average salary.
- Service credit will continue to accrue until
the member is no longer disabled, or until the earliest time
the member would be eligible for full age and service retirement.
- The final average salary used for calculating
retirement benefits will be adjusted if the member has been
on disability for more than five years.
- Benefits are taxable for federal income tax
purposes.
Tier
II Death Benefits for Disability Recipients
- Spouse will receive a lump-sum benefit of 50
percent of the member’s final average salary.
- Spouse will receive an annual benefit of 50
percent of the member’s benefit.
- If no surviving spouse, the monthly benefit
will be payable in equal shares to eligible children (age 18
or 23 if a full-time student). All benefits payable on behalf
of minor children must be paid to a legally-appointed conservator.
- Benefits are taxable by federal income tax purposes.
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Working While
on Disability
Tier
I
- If a member returns to work with any KP&F
participating employer, the disability benefits will automatically
stop.
- If a member returns to work in a KPERS covered
position, he or she will become a contributing member immediately.
- Members do not have an earnings limitation.
Tier
II
- If a member returns to works with any KP&F
participating employer, the disability benefits will automatically
stop.
- If a member returns to work in a KPERS covered
position, the member can not become a contributing member of
KPERS.
- The member’s disability benefits will
be reduced $1 for every $2 of earned income subject to social
security over $10,000 the member earns in a calendar year.
Please note - Withdrawing contributions from KP&F
forfeits all a member’s rights to any benefits, including
disability benefits under the KP&F disability program.
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