This section covers disability benefits provided for in
RCW
41.37.230. Disability provisions are designed
primarily to provide an income to members who have been forced to leave the
workforce because of an incapacitating disability. This section applies equally
to on-the-job or off-the-job injuries and/or illnesses.
Members may also be eligible for benefits from the Washington
state departments of labor and industries (workers' compensation benefits) and
social and health services, the U.S. Social Security Administration, employers,
disability insurers, and others. Please contact these organizations directly
for more information.
(1)
Am I
eligible for disability benefits? You are eligible for disability
benefits if, at the time of your separation from employment, you are totally
incapacitated to perform the duties of your job or any other PSERS position for
which you are qualified by training or experience. Objective medical evidence
is required to establish total incapacitation. Vocational and/or occupational
evidence may be required at the discretion of the department.
(2)
If eligible, what will I receive as
a monthly disability allowance?
(a) If
you have at least 10 years of service credit in
PSERS, you will receive a
monthly allowance equal to two percent of your
AFC times your service credit
years, permanently actuarially reduced to reflect the difference in the number
of years between your age when you separate for disability and age
60. Your monthly allowance may be further reduced to offset the
cost of the benefit option you choose. See WAC
415-106-600.
(b) If you have less than 10 years of service
credit, you will receive a monthly allowance
1 equal
to two percent of your
AFC times your service credit years, permanently
actuarially reduced to reflect the difference in the number of years between
your age when you separate for disability and age
65. Your monthly
allowance may be further reduced to offset the cost of the benefit option you
choose. See WAC
415-106-600.
1You may choose to receive
a lump sum payment instead of a monthly allowance if your initial monthly
allowance will be less than $50. See
RCW
41.37.200.
See WAC
415-02-320
for early retirement factors and examples.
(3)
How do I apply?
(a) You or your representative must contact
the department to request an application. The three-part application must be
completed by the proper persons and returned to the department.
(i)
Part 1: Disability
retirement application. If you are married, your spouse's consent may be
required as described in WAC
415-106-600.
(ii)
Part 2: Employer's
statement and report. Your employer must complete and sign Part 2, and return
it directly to the department.
(iii)
Part 3: Medical report.
You must complete section one. Your physician must complete the remainder of
the form, attach supporting documentation, sign and return it directly to the
department. You are responsible for all medical expenses related to your
application for benefits. A copy of your job description must be provided to
the physician at time of examination.
(b) When the department receives Part 1 of
your application, you are considered to be an applicant for disability
benefits. However, your eligibility will not be determined until the department
receives all three parts of the application.
(4)
What is the time limit for filing
an application for disability benefits? There is no time limit for
applying for benefits. However, if you have separated from employment, your
application must be based on your condition at the time of
separation.
(5)
If I am
eligible to retire, may I still apply for disability benefits? Yes,
however, you should request a benefit estimate from the department, as there
may be a difference in the dollar amount of your monthly allowance.
(6)
Once my application is approved,
when will my monthly allowance begin?
(a) Your disability allowance will accrue
from the first day of the calendar month immediately following your separation
from employment. If you are continuing to earn service credit while on paid
leave or through programs such as shared leave, you are not considered to be
separated from employment.
(b) Your
first payment will include all retroactive benefits to which you are
entitled.
(c) Department approval
will expire 90 days after the approval date if you have not officially
separated from
PSERS employment.
(i) If you
are continuing to perform the duties of your position or another PSERS
position, you may reapply for disability benefits according to subsection (3)
of this section if your condition worsens.
(ii) If you are on leave, the department may
reinstate approval upon your request and your employer's verification of your
leave status.
(7)
What are my options if my
application is denied?
(a) You may
submit additional information that shows you were totally incapacitated at the
time of your separation from employment.
(b) If you continue to work in a PSERS
position, you may reapply for disability benefits at a later time if your
condition worsens.
(c) You may
petition for review of the department's decision according to the provisions of
chapter
415-04 WAC.
(8)
Are my disability benefits taxable? You should consult with your
tax advisor regarding all questions of federal or state income, payroll,
personal property or other tax consequences regarding any payments you receive
from the department. The department does not:
(a) Guarantee that payments should or should
not be designated as exempt from federal income tax;
(b) Guarantee that it was correct in
withholding or not withholding taxes from disability payments;
(c) Represent or guarantee that any
particular federal or state income, payroll, personal property or other tax
consequence will occur because of its nontaxable determination; or
(d) Assume any liability for your compliance
with the Internal Revenue Code.
(9)
Are disability benefits subject to
court or administrative orders? Your benefits may be subject to orders
for spousal maintenance, child support, property division, or any other
administrative or court order expressly authorized by federal law. For more
information, see
RCW
41.37.090(3) or contact the
department.
(10)
Am I
eligible for disability benefits if my disability is the result of my criminal
conduct? No. See
RCW
41.37.100.
(11)
How is my disability benefit
affected if I am a member of more than one retirement system? If you are
a member of more than one retirement system, your benefit is governed by
portability law. See chapters 41.54 RCW and
415-113 WAC. You may apply for
disability only from your active system. However, if you qualify for a
disability benefit from your active system, you will also be eligible for a
service retirement calculated under the laws governing the inactive
system.
(12)
How long will I
continue to receive a monthly disability allowance? You may receive a
monthly allowance throughout your lifetime, subject to the provisions of
subsection (13) of this section.
(13)
Is it possible to lose my monthly
disability allowance after I begin receiving it?
(a) The department may, at its expense,
require comprehensive medical examinations to reevaluate your eligibility for
disability benefits. You will no longer be eligible to receive a disability
allowance if both of the following apply:
(i)
Medical evidence indicates you have recovered from the disability for which the
department granted your disability benefits; and
(ii) You have been offered reemployment by an
employer, as defined in
RCW
41.37.010, at a comparable
compensation.
(b) If you
return to employment and reenter PSERS membership, your benefits will
cease.
(14)
If I
take my disability benefit in a lump sum and return to work, may I restore my
service credit? Yes, you may restore your service credit if you take a
lump sum benefit and return to
PSERS membership at a later date.
(a) You may restore your service credit
within two years of reentering membership or prior to retirement, whichever
comes first. You must pay back the lump sum amount you received, minus the
monthly amount for which you were eligible, plus interest as determined by the
director.
(b) If you restore your
service after two years, you will have to pay the actuarial value of the
resulting increase in your future retirement benefit. See
RCW
41.50.165 and
41.37.200.