1999 Minnesota Statutes

     353.33 Total and permanent disability benefits. 

    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 is entitled to a disability benefit in 
 an amount 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 a member.  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 or payment made in lieu of 
 salary deductions otherwise authorized under section 353.01, 
 subdivision 16, 353.017, subdivision 4, or 353.36, subdivision 
 2, may be made after the occurrence of the disability for which 
 an application under this section is filed.  

    Subd. 2.    Applications; accrual of benefits.  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.  This 
 benefit begins to accrue the day following the commencement of 
 disability, 90 days preceding the filing of the application, or, 
 if annual or sick leave is paid for more than the 90-day period, 
 from the date salary ceased, whichever is later.  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.  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. 

    Subd. 3.    Computation of benefits.  This disability 
 benefit is an amount equal to the normal annuity payable to a 
 member who has reached normal retirement age with the same 
 number of years of allowable service and the same average 
 salary, as provided in section 353.29, subdivisions 2 and 3. 

    A basic member shall receive a supplementary monthly 
 benefit of $25 to age 65 or the five-year anniversary of the 
 effective date of the disability benefit, whichever is later. 

    If the disability benefits under this subdivision exceed 
 the average salary as defined in section 353.29, subdivision 2, 
 the disability benefits must be reduced to an amount equal to 
 said average salary. 

    Subd. 3a. Repealed, 1999 c 222 art 2 s 20 

    Subd. 3b.    Optional annuity election.  A disabled 
 member may elect to receive the normal disability benefit or an 
 optional annuity under section 353.30, subdivision 3.  The 
 election of an optional annuity must be made prior to the 
 commencement of payment of the disability benefit.  The optional 
 annuity must begin to accrue on the same date as provided for 
 the disability benefit.  

    (1) If a person who is not the spouse of a member is named 
 as beneficiary of the joint and survivor optional annuity, the 
 person is eligible to receive the annuity only if the spouse, on 
 the disability application form prescribed by the executive 
 director, permanently waives the surviving spouse benefits under 
 sections 353.31, subdivision 1, and 353.32, subdivision 1a.  If 
 the spouse of the member refuses to permanently waive the 
 surviving spouse coverage, the selection of a person other than 
 the spouse of the member as a joint annuitant is invalid. 

    (2) If the spouse of the member permanently waives survivor 
 coverage, the dependent children, if any, continue to be 
 eligible for survivor benefits under section 353.31, subdivision 
 1, including the minimum benefit in section 353.31, subdivision 
 1a.  The designated optional annuity beneficiary may draw the 
 monthly benefit; however, the amount payable to the dependent 
 child or children and joint annuitant must not exceed the 70 
 percent maximum family benefit under section 353.31, subdivision 
 1a.  If the maximum is exceeded, the benefit of the joint 
 annuitant must be reduced to the amount necessary so that the 
 total family benefit does not exceed the 70 percent maximum 
 family benefit amount. 

    (3) If the spouse is named as the beneficiary of the joint 
 and survivor optional annuity, the spouse may draw the monthly 
 benefits; however, the amount payable to the dependent child or 
 children and the joint annuitant must not exceed the 70 percent 
 maximum family benefit under section 353.31, subdivision 1a.  If 
 the maximum is exceeded, each dependent child will receive ten 
 percent of the member's specified average monthly salary, and 
 the benefit to the joint annuitant must be reduced to the amount 
 necessary so that the total family benefit does not exceed the 
 70 percent maximum family benefit amount.  The joint and 
 survivor optional annuity must be restored to the surviving 
 spouse, plus applicable postretirement adjustments under section 
 356.41, as the dependent child or children become no longer 
 dependent under section 353.01, subdivision 15. 

    Subd. 4.    Procedure to determine eligibility.  The 
 applicant shall provide and authorize release of medical 
 evidence, including all medical records and relevant information 
 from any source, to support the application for total and 
 permanent disability benefits.  The medical adviser shall verify 
 the medical evidence and, if necessary for disability 
 determination, suggest referral of applicant to specialized 
 medical consultants.  The association shall also obtain from the 
 employer, certification of the member's past public service, 
 dates of paid sick leave and vacation beyond the last working 
 day and whether or not sick leave or annual leave has been 
 allowed.  If upon consideration of the medical evidence received 
 and the recommendations of the medical adviser, it is determined 
 that the applicant is totally and permanently disabled within 
 the meaning of the law, the association shall grant the person a 
 disability benefit.  The fact that an employee is placed on 
 leave of absence without compensation because of disability does 
 not bar the person from receiving a disability benefit. 

    Subd. 5.    Benefits paid under workers' compensation law. 
  Disability benefits paid shall be coordinated with any 
 amounts received or receivable under workers' compensation law, 
 such as temporary total, permanent total, temporary partial, 
 permanent partial, or economic recovery compensation benefits, 
 in either periodic or lump sum payments from the employer under 
 applicable workers' compensation laws, after deduction of amount 
 of attorney fees, authorized under applicable workers' 
 compensation laws, paid by a disabilitant.  If the total of the 
 single life annuity actuarial equivalent disability benefit and 
 the workers' compensation benefit exceeds:  (1) the salary the 
 disabled member received as of the date of the disability or (2) 
 the salary currently payable for the same employment position or 
 an employment position substantially similar to the one the 
 person held as of the date of the disability, whichever is 
 greater, the disability benefit must be reduced to that amount 
 which, when added to the workers' compensation benefits, does 
 not exceed the greater of the salaries described in clauses (1) 
 and (2). 

    Subd. 5a. Repealed, 1991 c 341 s 51 

    Subd. 5b.    Benefits paid under workers' compensation 
 law.  A disabled member who is eligible to receive a 
 disability benefit under subdivision 5 as of June 30, 1987, and 
 whose disability benefit amount had been reduced prior to July 
 1, 1987, as a result of the receipt of workers' compensation 
 benefits, must have the disability benefit payment amount 
 restored, as of July 1, 1987, calculated in accordance with 
 subdivision 5.  However, a disabled member is not entitled to 
 receive retroactive repayment of any disability benefit amounts 
 lost before July 1, 1987, as a result of the reduction required 
 before that date because of the receipt of workers' compensation 
 benefits. 

    Any disability benefit overpayments made before July 1, 
 1987, and occurring because of the failure to reduce the 
 disability benefit payment to the extent required because of the 
 receipt of workers' compensation benefits, may be collected by 
 the association through the reduction of disability benefit or 
 annuity payment made on or after July 1, 1987, until the 
 overpayment is fully recovered. 

    Subd. 6.    Continuing eligibility for benefits.  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 and authorize release of medical evidence, including all 
 medical 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 program if the executive director 
 determines that the disabled person may be able to return to a 
 gainful occupation.  If a member is found to be no longer 
 totally and permanently disabled and is reinstated to the 
 payroll, payments must cease the first of the month following 
 the reinstatement to the payroll. 

    Subd. 6a.    Medical adviser.  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. 

    Subd. 6b.    Duties of the medical adviser.  At the 
 request of the executive director, the medical adviser shall 
 designate licensed physicians to examine applicants for 
 disability benefits and review the medical reports based upon 
 these examinations to determine whether an applicant is totally 
 and permanently disabled as defined in section 353.01, 
 subdivision 19, disabled as defined in section 353.656, or 
 eligible for continuation of disability benefits under 
 subdivision 6.  The medical examiner shall also review, at the 
 request of the executive director, all medical statements on 
 behalf of an applicant for disability benefits, and shall report 
 in writing to the executive director conclusions and 
 recommendations on those matters referred for advice. 

    Subd. 7.    Partial reemployment.  If, following a work 
 or non-work-related injury or illness, a disabled person resumes 
 a gainful occupation from which earnings are less than the 
 salary at the date of disability or the salary currently paid 
 for similar positions, the board shall continue the disability 
 benefit in an amount that, when added to the 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, provided the disability benefit 
 does not exceed the disability benefit originally allowed, plus 
 any postretirement adjustments payable after December 31, 1988, 
 in accordance with section 11A.18, subdivision 10.  No 
 deductions for the retirement fund may be taken from the salary 
 of a disabled person who is receiving a disability benefit as 
 provided in this subdivision. 

    Subd. 8.    Refusal of examination or medical evidence.  
 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 authorize the release of medical evidence 
 under subdivisions 4 and 6, the association shall cease the 
 application process or discontinue the payment of a disability 
 benefit, whichever is applicable.  Upon 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.  

    Subd. 9.    Return to public service.  Any person 
 receiving a disability benefit who is restored to active public 
 service except persons receiving benefits as provided in 
 subdivision 7, shall have deductions taken for the retirement 
 fund and upon subsequent retirement have the retirement annuity 
 payable based upon all allowable service including that upon 
 which the disability benefits were based. 

    Subd. 10.  Repealed, 1973 c 753 s 85 

    Subd. 11.    Coordinated member retirement status.  No 
 person is entitled to receive disability benefits and a 
 retirement annuity at the same time.  The disability benefits 
 paid to a coordinated member must terminate when the person 
 reaches normal retirement age.  If the coordinated member is 
 still totally and permanently disabled upon attaining normal 
 retirement age, the coordinated member is deemed to be on 
 retirement status.  If an optional annuity is elected under 
 subdivision 3a, the coordinated member shall receive an annuity 
 under the terms of the optional annuity previously elected, or, 
 if an optional annuity is not elected under subdivision 3a, the 
 coordinated member may elect to receive a normal retirement 
 annuity under section 353.29 or an annuity equal to the 
 disability benefit paid before the coordinated member reaches 
 normal retirement age, whichever amount is greater, or elect to 
 receive an optional annuity under section 353.30, subdivision 
 3.  The annuity of a disabled coordinated member who attains 
 normal retirement age must be computed under the law in effect 
 upon attainment of normal retirement age.  Election of an 
 optional annuity must be made before the coordinated member 
 attains normal retirement age.  If an optional annuity is 
 elected, the election is effective on the date on which the 
 person attains normal retirement age and the optional annuity 
 begins to accrue on the first day of the month next following 
 the month in which the person attains that age.  

    Subd. 12.    Basic disability survivor benefits.  If a 
 basic member who is receiving a disability benefit under 
 subdivision 3: 

    (a) dies before attaining age 65 or within five years of 
 the effective date of the disability, whichever is later, the 
 surviving spouse shall receive a survivor benefit under section 
 353.31, unless the surviving spouse elected to receive a refund 
 under section 353.32, subdivision 1. 

    (b) is living at age 65 or five years after the effective 
 date of the disability, whichever is later, the basic member may 
 continue to receive a normal disability benefit, or elect a 
 joint and survivor optional annuity under section 353.31, 
 subdivision 1b.  The election of the joint and survivor optional 
 annuity must occur within 90 days of age 65 or the five-year 
 anniversary of the effective date of the disability benefit, 
 whichever is later.  The optional annuity takes effect on the 
 first of the month following the month in which the person 
 attains age 65 or reaches the five-year anniversary of the 
 effective date of the disability benefit, whichever is later. 

    (c) if there is a dependent child or children under 
 paragraph (a) or (b), the association shall grant a dependent 
 child benefit under section 353.31, subdivision 1b, paragraph 
 (b). 

    HIST: 1957 c 935 s 13; 1959 c 650 s 21,41; 1961 c 595 s 2; 
 1963 c 641 s 25; 1965 c 880 s 6; 1967 c 711 s 1; Ex1967 c 37 s 
 2,3; 1969 c 940 s 10; 1971 c 106 s 29,30; 1973 c 753 s 53-56; 
 1975 c 102 s 15-17; 1975 c 359 s 23; 1976 c 329 s 23-25; 1977 c 
 305 s 45; 1977 c 429 s 29,30; 1978 c 471 s 6; 1978 c 796 s 35; 
 1979 c 216 s 14; 1981 c 68 s 21,22; 1981 c 180 s 11-13; 1981 c 
 224 s 88; 1983 c 73 s 7; 1983 c 85 s 1; 1984 c 564 s 26; 1986 c 
 444; 1987 c 284 art 5 s 9; 1987 c 372 art 9 s 14-16; 1988 c 709 
 art 5 s 19; 1989 c 319 art 3 s 12-16; art 13 s 37-39; 1991 c 341 
 s 19; 1992 c 432 art 2 s 12-15; 1993 c 307 art 4 s 19-26; 1998 c 
 390 art 9 s 3