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, upon application as defined under section
, 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.
Subd. 2. Accrual of benefits.
(a) This benefit begins to accrue when the applicant is no
longer receiving any form of compensation, whether salary or paid leave; 90 days preceding the
filing of the application, or, if annual or sick leave or any other employer-paid salary continuation
plan 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, sick leave, or any other employer-paid salary continuation
plan, or under any other circumstances when, during the period of disability, there has been no
impairment of the person's salary.
(b) 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.
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
, and section
353.29, subdivision 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
353.01, subdivision 17a
, the disability benefits must be reduced to an amount equal
to the 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Subd. 3a.[Repealed, 1999 c 222 art 2 s 20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
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
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
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
, as the
dependent child or children become no longer dependent under section
353.01, subdivision 15
Subd. 4. Procedure to determine eligibility.
(a) Eligibility for disability benefits must be
determined following the procedures defined in section
(b) If, after following the procedures for determining eligibility for benefits under section
, and 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.
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.[Repealed, 2004 c 267 art 8 s 41
Subd. 6. Continuing eligibility for 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. If, after a
review by the executive director under section
353.031, subdivision 8
, 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.
Subd. 6a.[Repealed, 2007 c 134 art 4 s 36
Subd. 6b.[Repealed, 2007 c 134 art 4 s 36
Subd. 7. Partial reemployment.
If, following a work or non-work-related injury or illness,
a disabled person who remains totally and permanently disabled as defined in section
, has income from employment that is not substantial gainful activity and the
rate of earnings from that employment are less than the salary rate at the date of disability
or the salary rate currently paid for positions similar to the employment position held by the
disabled person immediately before becoming disabled, whichever is greater, the executive
director shall continue the disability benefit in an amount that, when added to the earnings and
any workers' compensation benefit, does not exceed the salary rate at the date of disability or
the salary currently paid for positions similar to the employment position held by the disabled
person immediately before becoming disabled, whichever is higher. The disability benefit under
this subdivision may 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. 7a. Trial work period.
(a) This subdivision applies only to the Public Employees
Retirement Association general employees retirement plan.
(b) 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.
(c) No deductions for the general employees retirement plan 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.
(d) A member only may return to employment and continue disability benefit payments once
while receiving disability benefits from the general employees retirement plan administered by
the Public Employees Retirement Association.
Subd. 8.[Repealed, 2007 c 134 art 4 s 36
Subd. 9. Return to employment.
(a) Any person receiving a disability benefit under this
section who is restored to employment not covered by subdivision 7 or 7a must have the disability
benefit discontinued on the first day of the month following the return to employment.
(b) If the person is employed by a governmental subdivision as defined under section 353.01,
subdivision 6, deductions must be taken for the retirement fund and, upon subsequent retirement,
the person is entitled to a retirement annuity payable based upon all allowable service including
the allowable service upon which the disability benefits were based.
(c) If the employment is not through public service covered under this chapter, the account
may be placed on a deferred status and the subsequent retirement annuity must be calculated as
provided in section 353.34, subdivision 3, if the person meets the length of allowable service
requirement stated in that subdivision; or the person may request a refund of any remaining
employee deductions. The refund must be in an amount equal to the accumulated employee
deductions plus six percent interest compounded annually and must be reduced by the sum of the
disability benefits paid to the member.
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
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
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:
(1) dies before attaining age 65 or within five years of the effective date of the disability,
whichever is later, the surviving spouse is entitled to receive a survivor benefit under section
, unless the surviving spouse elected to receive a refund under section
(2) 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 attaining age 65 or of reaching the five-year
anniversary of the effective date of the disability benefit, whichever is later. The optional annuity
takes effect on the first day 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; or
(3) if there is a dependent child or children under clause (1) or (2), the dependent child is
entitled to a dependent child benefit under section
353.31, subdivision 1b
, paragraph (b).
History: 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; 2000 c 461 art 3 s
16,17; 2004 c 267 art 8 s 15-19,41; 1Sp2005 c 8 art 1 s 12; art 10 s 51; 2006 c 212 art 3 s 34;
2006 c 271 art 3 s 25,26,42; 2007 c 134 art 4 s 9-13