HF 127

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; modifying procedures for determining eligibility for
disability benefits; amending Minnesota Statutes 2006, sections 353.33,
subdivisions 1, 2, 4, 6, 7a; 353.656, subdivision 8; 353B.08, subdivision 11;
353E.06, subdivisions 4, 8; proposing coding for new law in Minnesota Statutes,
chapter 353; repealing Minnesota Statutes 2006, sections 353.33, subdivisions
6a, 6b, 8; 353.656, subdivisions 5, 9, 11, 12.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [353.031] DISABILITY DETERMINATION PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section shall apply to all disability determinations
for the public employees general fund, the public employees police and fire fund, and
the local government correctional service retirement plan and any other disability
determination subject to approval by the board, except as otherwise specified in section
353.33, 353.656, or 353E.05. These requirements and the requirements of section 353.03,
subdivision 3, are in addition to the specific requirements of each plan and govern in the
event there is any conflict between these sections and the procedures specific to any of
those plans under section 353.33, 353.656, or 353E.06.
new text end

new text begin Subd. 2. new text end

new text begin Plan document policy statement. new text end

new text begin Disability determinations for the public
employees general fund shall be made subject to section 353.01, subdivision 19; and for
the police and fire plan and the local government correctional service retirement plan shall
be made consistent with the legislative policy and intent set forth in section 353.63.
new text end

new text begin Subd. 3. new text end

new text begin Procedure to determine eligibility; generally. new text end

new text begin (a) Every claim for a
disability benefit must be initiated in writing on an application form and in the manner
prescribed by the executive director and filed with the executive director. An application
for disability benefits must be made within 18 months next following termination of public
service as defined under section 353.01, subdivision 11a.
new text end

new text begin (b) All medical reports must support a finding that disability arose before the
employee was placed on any paid or unpaid leave of absence or terminated public service,
as defined under section 353.01, subdivision 11a.
new text end

new text begin (c) An applicant for disability shall provide a detailed report signed by a licensed
medical doctor and at least one additional report signed by a medical doctor, psychologist,
or chiropractor. The applicant must authorize the release of all medical and health care
evidence, including all medical records and relevant information from any source, to
support the application for initial, or the continuing payment of, disability benefits.
new text end

new text begin (d) All reports must contain an opinion regarding the claimant's prognosis, the
duration of the disability, and the expectations for improvement. Any report that does not
contain and support a finding that the disability will last for at least one year may not be
relied upon to support eligibility for benefits.
new text end

new text begin (e) Where the medical evidence supports the expectation that at some point in time
the claimant will no longer be disabled, any decision granting disability may provide
for a termination date upon which disability can be expected to no longer exist. In the
event a termination date is made part of the decision granting benefits, prior to the
actual termination of benefits, the claimant shall have the opportunity to show that the
disabling condition for which benefits were initially granted continues. In the event the
benefits terminate in accordance with the original decision, the claimant may petition for a
review by the board of trustees under section 353.03, subdivision 3, or may reapply for
disability in accordance with these procedures and section 353.33, 353.656, or 353E.06,
as applicable.
new text end

new text begin (f) Any claim to disability must be supported by a report from the employer
indicating that there is no available work that the employee can perform in the employee's
disabled condition and that all reasonable accommodations have been considered. Upon
request of the executive director, an employer shall provide evidence of the steps the
employer has taken to attempt to provide reasonable accommodations and continued
employment to the claimant. The employer shall also provide a certification of the
member's past public service; the dates of any paid sick leave, vacation, or any other
employer-paid salary continuation plan beyond the last working day; and whether or not
any sick or annual leave has been allowed.
new text end

new text begin (g) An employee who is placed on leave of absence without compensation because
of a disability is not barred from receiving a disability benefit.
new text end

new text begin (h) An applicant for disability benefits may file a retirement annuity application
under section 353.29, subdivision 4, simultaneously with an application for disability
benefits. If the application for disability benefits is approved, the retirement annuity
application is cancelled. If disability benefits are denied, the retirement annuity application
must be processed upon the request of the applicant. No member of the public employees
general plan, the public employees police and fire plan, or the local government
correctional service retirement plan may receive a disability benefit and a retirement
annuity simultaneously from the same plan.
new text end

new text begin Subd. 4. new text end

new text begin Additional requirements to determine eligibility for police and fire or
local government correctional service plan disability benefits. new text end

new text begin (a) If an application for
disability benefits is filed within two years of the date of the injury or the onset of the illness
that gave rise to the disability application, the application must be supported by evidence
that the applicant is unable to perform the duties of the position held by the applicant on
the date of the injury or the onset of the illness causing the disability. The employer must
provide evidence indicating whether the applicant is able or unable to perform the duties
of the position held on the date of the injury or onset of the illness causing the disability
and the specifications of any duties that the individual can or cannot perform.
new text end

new text begin (b) If an application for disability benefits is filed more than two years after the date
of injury or the onset of an illness causing the disability, the application must be supported
by evidence that the applicant is unable to perform the most recent duties that are expected
to be performed by the applicant during the 90 days before the filing of the application.
The employer must provide evidence of the duties that are expected to be performed by
the applicant during the 90 days before the filing of the application, whether the applicant
can or cannot perform those duties overall, and the specifications of any duties that the
applicant can or cannot perform.
new text end

new text begin (c) Any report supporting a claim to disability benefits pursuant to section 353.656
or 353E.06 shall specifically relate the disability to its cause; and for any claim to duty
disability from an injury or illness arising out of an act of duty, the report shall relate
the cause of disability to specific tasks or functions required to be performed by the
employee in fulfilling the employee's duty-related acts which must be specific to the
inherent dangers of the positions eligible for membership in the police and fire fund and
the local government correctional service retirement plan. Any report that does not relate
the cause of disability to specific acts or functions performed by the employee may not be
relied upon as evidence to support eligibility for benefits and may be disregarded in the
executive director's decision-making process.
new text end

new text begin (d) Any application for duty disability must be supported by a first report of injury as
defined in section 176.231.
new text end

new text begin (e) If a member who has applied for and been approved for disability benefits before
the termination of service does not terminate service or is not placed on an authorized
leave of absence as certified by the governmental subdivision within 45 days following
the date on which the application is approved, the application shall be canceled. If an
approved application for disability benefits has been canceled, a subsequent application
for disability benefits may not be filed on the basis of the same medical condition for a
minimum of one year from the date on which the previous application was canceled.
new text end

new text begin Subd. 5. new text end

new text begin Medical adviser. new text end

new text begin The executive director may contract with licensed
physicians or physicians on the staff of the state commissioner of health, as designated
by the commissioner, to be the medical adviser of the association. The medical adviser
shall review all medical reports submitted to the association, including the findings of
an independent medical examination requested under this section, and shall advise the
executive director.
new text end

new text begin Subd. 6. new text end

new text begin Independent medical examination. new text end

new text begin Any individual applying for
or receiving disability benefits must submit to an independent medical examination
if requested by the executive director. The medical examination must be paid for by
the association.
new text end

new text begin Subd. 7. new text end

new text begin Refusal of examination or medical evidence. new text end

new text begin If a person applying
for or receiving a disability benefit refuses to submit to a medical examination under
subdivision 6, or fails to provide or to authorize the release of medical evidence under
subdivision 3, the association shall cease the application process or shall discontinue the
payment of a disability benefit, whichever is applicable. Upon the receipt of the requested
medical evidence, the association shall resume the application process or the payment of a
disability benefit upon approval for the continuation, whichever is applicable.
new text end

new text begin Subd. 8. new text end

new text begin Proof of continuing disability. new text end

new text begin (a) A disability benefit payment must not
be made except upon adequate proof furnished to the executive director of the association
of the existence of a disability.
new text end

new text begin (b) During the time when disability benefits are being paid, the executive director
of the association has the right, at reasonable times, to require the disabled member to
submit proof of the continuance of the disability claimed.
new text end

new text begin (c) Adequate proof of a disability must include a written expert report by a licensed
physician, a licensed chiropractor, or, with respect to a mental impairment, a licensed
psychologist.
new text end

new text begin Subd. 9. new text end

new text begin Application approval or denial; decision of executive director. new text end

new text begin Any
decision of the executive director is final, except that a member whose application for
disability benefits or whose continuation of disability benefits is denied may appeal the
executive director's decision to the board of trustees within 60 days of receipt of a certified
letter notifying the member of the decision to deny the application or continuation of
benefits. In developing the record for review by the board when a decision is appealed,
the executive director may direct that the applicant participate in a fact-finding session
conducted by an administrative law judge assigned by the Office of Administrative
Hearings, and, as applicable, a vocational assessment conducted by the qualified
rehabilitation counselor on contract with the Public Employees Retirement Association.
new text end

new text begin Subd. 10. new text end

new text begin Restoring forfeited service. new text end

new text begin To restore forfeited service, a repayment of
a refund must be made within six months after the effective date of disability benefits or
within six months after the date of the filing of the disability application, whichever is
later. No purchase of prior service or payment made in lieu of salary deductions otherwise
authorized under section 353.01 may be made after the occurrence of the disability for
which an application is filed under this section.
new text end

Sec. 2.

Minnesota Statutes 2006, section 353.33, subdivision 1, is amended to read:

Subdivision 1.

Age, service, and salary requirements.

A coordinated member
who has at least three years of allowable service and becomes totally and permanently
disabled before normal retirement age, and a basic member who has at least three years of
allowable service and who becomes totally and permanently disabled new text begin , upon application as
defined under section 353.031, new text end is entitled to a disability benefit in an amount determined
under subdivision 3. If the disabled person's public service has terminated at any time,
at least two of the required three years of allowable service must have been rendered
after last becoming an active member. deleted text begin A repayment of a refund must be made within six
months after the effective date of disability benefits under subdivision 2 or within six
months after the date of the filing of the disability application, whichever is later. No
purchase of prior service and no payment made in lieu of salary deductions otherwise
authorized under section 353.01, subdivision 16, may be made after the occurrence of the
disability for which an application under this section is filed.
deleted text end

Sec. 3.

Minnesota Statutes 2006, section 353.33, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Applications; deleted text end Accrual of benefits.

deleted text begin Every claim or demand for a total
and permanent disability benefit must be initiated by written application in the manner
and form prescribed by the executive director showing compliance with the statutory
conditions qualifying the applicant for a total and permanent disability benefit and filed
with the executive director. A member or former member who became totally and
permanently disabled during a period of membership shall file application for total and
permanent disability benefits within three years next following termination of public
service. deleted text end new text begin (a) new text end This benefit begins to accrue deleted text begin the day following the commencement of
disability, deleted text end new text begin when the applicant is no longer receiving any form of compensation, whether
salary or paid leave; new text end 90 days preceding the filing of the application, or, if annual or sick
leave new text begin or any other employer-paid salary continuation plan new text end is paid for more than the 90-day
period, from the date salary ceased, whichever is later. No member is entitled to receive a
disability benefit payment when there remains to the member's credit any unused annual
leave deleted text begin or deleted text end new text begin , new text end sick leave new text begin , or any other employer-paid salary continuation plan, new text end or under any
other circumstances when, during the period of disability, there has been no impairment of
the person's salary.

new text begin (b) new text end Payment must not accrue beyond the end of the month in which entitlement has
terminated. If the disabilitant dies prior to negotiating the check for the month in which
death occurs, payment is made to the surviving spouse, or if none, to the designated
beneficiary, or if none, to the estate. deleted text begin An applicant for total and permanent disability
benefits may file a retirement annuity application under section 353.29, subdivision 4,
simultaneously with an application for total and permanent disability benefits. The
retirement annuity application is void upon the determination of the entitlement for
disability benefits by the executive director. If disability benefits are denied, the retirement
annuity application must be initiated and processed.
deleted text end

Sec. 4.

Minnesota Statutes 2006, section 353.33, subdivision 4, is amended to read:

Subd. 4.

Procedure to determine eligibility.

(a) deleted text begin The applicant shall provide
an expert report signed by a licensed physician, psychologist, or chiropractor and the
applicant must authorize the release of medical and health care evidence, including all
medical records and relevant information from any source, to support the application
for total and permanent disability benefits. deleted text end new text begin Eligibility for disability benefits will be
determined following the procedures defined in section 353.031.
new text end

deleted text begin (b) The medical adviser shall verify the medical evidence and, if necessary for
disability determination, suggest the referral of the applicant to specialized medical
consultants.
deleted text end

deleted text begin (c) The association shall also obtain from the employer a certification of the
member's past public service, the dates of any paid sick leave and vacation beyond the last
working day and whether or not any sick leave or annual leave has been allowed.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end If, new text begin after following the procedures for determining eligibility for benefits
under section 353.031, and new text end upon consideration of the medical evidence received and
the recommendations of the medical adviser, it is determined by the executive director
that the applicant is totally and permanently disabled within the meaning of the law, the
association shall grant the person a disability benefit.

deleted text begin (e) An employee who is placed on leave of absence without compensation because
of a disability is not barred from receiving a disability benefit.
deleted text end

Sec. 5.

Minnesota Statutes 2006, section 353.33, subdivision 6, is amended to read:

Subd. 6.

Continuing eligibility for benefits.

deleted text begin The association shall determine
eligibility for continuation of disability benefits and require periodic examinations and
evaluations of disabled members as frequently as deemed necessary. The association shall
require the disabled member to provide an expert report signed by a licensed physician,
psychologist, or chiropractor and the disabled member shall authorize the release of
medical and health care evidence, including all medical and health care records and
information from any source, relating to an application for continuation of disability
benefits. Disability benefits are contingent upon a disabled person's participation in a
vocational rehabilitation evaluation if the executive director determines that the disabled
person may be able to return to a gainful occupation. deleted text end If new text begin , after a review by the executive
director under section 353.031, subdivision 8, new text end a member is found to be no longer totally
and permanently disabled, payments must cease the first of the month following the
expiration of a 30-day period after the member receives a certified letter notifying the
member that payments will cease.

Sec. 6.

Minnesota Statutes 2006, section 353.33, subdivision 7a, is amended to read:

Subd. 7a.

Trial work period.

(a) If, following a work or non-work-related injury or
illness, a disabled member attempts to return to work for their previous public employer
or attempts to return to a similar position with another public employer, on a full-time
or less than full-time basis, the Public Employees Retirement Association shall continue
paying the disability benefit for a period not to exceed six months. The disability benefit
must continue in an amount that, when added to the subsequent employment earnings and
workers' compensation benefit, does not exceed the salary at the date of disability or the
salary currently paid for similar positions, whichever is higher.

(b) No deductions for the new text begin general employees new text end retirement deleted text begin fund deleted text end new text begin plan new text end may be taken from
the salary of a disabled person who is attempting to return to work under this provision
unless the member waives further disability benefits.

(c) A member only may return to employment and continue disability benefit
payments once while receiving disability benefits from deleted text begin a deleted text end new text begin the general employees retirement
new text end plan administered by the Public Employees Retirement Association.

Sec. 7.

Minnesota Statutes 2006, section 353.656, subdivision 8, is amended to read:

Subd. 8.

Application procedure to determine eligibility for police and fire plan
disability benefits.

deleted text begin (a) An application for disability benefits must be made in writing on a
form or forms prescribed by the executive director.
deleted text end

deleted text begin (b) If an application for disability benefits is filed within two years of the date of the
injury or the onset of the illness that gave rise to the disability application, the application
must be supported by evidence that the applicant is unable to perform the duties of the
position held by the applicant on the date of the injury or the onset of the illness causing
the disability. The employer must provide evidence indicating whether the applicant is
able or unable to perform the duties of the position held on the date of the injury or onset
of illness causing the disability and the specifications of any duties that the individual can
or cannot perform.
deleted text end

deleted text begin (c) If an application for disability benefits is filed more than two years after the date
of the injury or the onset of an illness causing the disability, the application must be
supported by evidence that the applicant is unable to perform the most recent duties that
are expected to be performed by the applicant during the 90 days before the filing of the
application. The employer must provide evidence of the duties that are expected to be
performed by the applicant during the 90 days before the filing of the application, whether
the applicant can or cannot perform those duties overall, and the specifications of any
duties that the applicant can or cannot perform.
deleted text end

deleted text begin (d) Unless otherwise permitted by law, no application for disability benefits can be
filed by a former member of the police and fire plan more than three years after the former
member has terminated from Public Employees Retirement Association police and fire
plan covered employment. If an application is filed within three years after the termination
of public employment, the former member must provide evidence that the disability is the
direct result of an injury or the contracting of an illness that occurred while the person was
still actively employed and participating in the police and fire plan.
deleted text end

deleted text begin (e) Any application for duty-related disability must be supported by a first report of
injury as defined in section .
deleted text end

deleted text begin (f) If a member who has applied for and been approved for disability benefits before
the termination of service does not terminate service or is not placed on an authorized
leave of absence as certified by the governmental subdivision within 45 days following
the date on which the application is approved, the application shall be canceled. If an
approved application for disability benefits has been canceled, a subsequent application
for disability benefits may not be filed on the basis of the same medical condition for a
minimum of one year from the date on which the previous application was canceled.
deleted text end

deleted text begin (g) An applicant may file a retirement application under section deleted text begin 353.29, subdivision
4 deleted text end , at the same time as the disability application is filed. If the disability application is
approved, the retirement application is canceled. If the disability application is denied, the
retirement application must be initiated and processed upon the request of the applicant. A
police and fire fund member may not receive a disability benefit and a retirement annuity
from the police and fire fund at the same time.
deleted text end

deleted text begin (h) A repayment of a refund must be made within six months after the effective date
of disability benefits or within six months after the date of the filing of the disability
application, whichever is later. No purchase of prior service or payment made in lieu
of salary deductions otherwise authorized under section may be made after the
occurrence of the disability for which an application is filed under this section.
deleted text end

new text begin The application procedures to determine eligibility for police and fire plan disability
benefits are defined under section 353.031.
new text end

Sec. 8.

Minnesota Statutes 2006, section 353B.08, subdivision 11, is amended to read:

Subd. 11.

Subsequent medical reexaminations.

Periodically, upon the
recommendation of the medical adviser appointed as provided in section deleted text begin 353.33,
subdivision 6a deleted text end new text begin 353.031 new text end , based on the medical nature of the initial qualifying disability and
its potential for improvement or recovery, the executive director of the Public Employees
Retirement Association shall have a former member of a consolidating relief association
who is receiving a disability benefit reexamined and reevaluated for continued entitlement
to a disability benefit. If, upon the recommendation of the medical adviser, the executive
director determines that the person is no longer entitled to receive a disability benefit, the
disability benefit shall be discontinued effective as of the first day of the second month
following that determination and the person shall be considered for reemployment as
a police officer or a firefighter, whichever applies, by the municipality in which the
consolidating relief association was located.

Sec. 9.

Minnesota Statutes 2006, section 353E.06, subdivision 4, is amended to read:

Subd. 4.

Disability benefit application new text begin ; accrual of benefits new text end .

deleted text begin A claim or demand
for a disability benefit must be initiated by written application in the manner and form
prescribed by the executive director, filed in the office of the association, showing
compliance with the statutory conditions qualifying the applicant for a disability benefit.
A member or former member who became disabled during a period of membership may
file an application for disability benefits within three years following termination of local
government correctional service, but not after that time has elapsed. deleted text end new text begin (a) Procedures for
the application process and determining eligibility for disability benefits are defined in
section 353.031.
new text end

new text begin (b) new text end The disability benefit begins to accrue deleted text begin the day following the commencement of
disability, deleted text end new text begin when the applicant is no longer receiving any form of compensation, whether
salary or paid leave; new text end 90 days preceding the filing of the application, or, if annual or sick
leave new text begin , or any other employer-paid salary continuation plan new text end is paid for more than the
90-day period, from the date salary ceased, whichever is latest. new text begin No member is entitled
to receive a disability benefit payment when there remains to the member's credit any
unused annual leave, sick leave, or any other employer-paid salary continuation benefits or
under any other circumstances when, during the period of disability, there has been no
impairment of the person's salary.
new text end

new text begin (c) new text end No payment may accrue beyond the end of the month in which entitlement has
terminated. If the disabilitant dies before negotiating the check for the month in which
death occurs, payment must be made to the optional annuitant or beneficiary.

Sec. 10.

Minnesota Statutes 2006, section 353E.06, subdivision 8, is amended to read:

Subd. 8.

Continuing benefit eligibility.

Continuing eligibility for a disability
benefit is subject to section deleted text begin 353.33, subdivision 6 deleted text end new text begin 353.031, subdivision 8 new text end .

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 353.33, subdivisions 6a, 6b, and 8; and 353.656,
subdivisions 5, 9, 11, and 12, new text end new text begin are repealed.
new text end

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective July 1, 2007.
new text end