Disability benefits; eligibility

Authority: IC 5-10.5-4-2 Affected: IC 5-10.2-4-6; IC 5-10.3 Sec. 2. (a) To be eligible to receive disability benefits, the member must have at least five (5) years of creditable service while receiving a salary or employer provided income protection benefits, or Family and Medical Leave Act leave, or prior to exhaustion of all worker's compensation benefits. (b) Except as otherwise provided in law or this article, the disability benefit is computed using only the years of creditable service worked to the date of disability and without reduction for early retirement. For example, Ann has five (5) years of service credit. Ann's Social Security Administration (SSA) disability onset date relates back to the end of her fourth year of service. Ann is eligible to receive disability benefits because she has at least five (5) years of creditable service, but only four (4) years of service credit is used to calculate the benefit. (c) To be eligible to receive disability benefits, the member must be receiving salary, worker's compensation benefits, employer-provided income protection benefits, or on leave under the Family and Medical Leave Act on the date the Social Security Administration determines the member becomes disabled. (d) For the purpose of IC 5-10.2-4-6 (a) and this rule, "while receiving a salary" includes: (1) the last check date for a member, but does not include any checks or compensation received later than thirty (30) days from the last day the member was paid for physical work, for used sick time, for used compensatory time, or while on other leave or vacation; or (2) when there is a nexus between the member's secession of covered service and the illness or injury resulting in the disability, but not more than thirty (30) days has elapsed between the employment termination date and the SSA disability onset date. INPRS in its sole discretion will determine whether a nexus exists between the disability and the termination of covered service. Example one: Donna becomes ill while in service in a covered position and exhausts all leaves and terminates employment due to the illness on July 1. Because of this illness, Donna received a SSA disability onset of July 28 of the same year. Donna meets the "while receiving a salary" definition because there was nexus between the illness and her employment and the onset date is within thirty (30) days of termination. Example two: Mary terminated covered service on July 1 and was paid her final compensation on July 15; on July 28 Mary is involved in an automobile accident while on vacation causing a disability. Mary does not meet the requirement for disability benefits because there is no nexus between the cause of the disability and work and she was not otherwise receiving salary or on leave. (e) A member may continue to receive PERF disability benefits so long as the member is entitled to receive Social Security benefits, including periods of trial employment or rehabilitation under Social Security guidelines. However, during any such period, no service credit under PERF shall be granted. (f) A member, including a state employee receiving state sponsored long-term disability benefits, may not receive a distribution of his or her ASA until the member separates from covered service or the Social Security Administration determines that the member has become disabled and the member has applied for disability benefits. (g) A member who is receiving a disability retirement shall be automatically converted to regular retirement benefits upon reaching age and service eligibility. Unless otherwise prohibited by law, service credit earned or awarded during the period of time the member was receiving PERF disability benefits will be used in the calculation of the retirement benefit. (Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-2; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; filed May 7, 1998, 4:15 p.m.: 21 IR 3326; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Apr 29, 2011: 20110511-IR-035110273ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Feb 23, 2018: 20180307-IR-035180117ONA)