2004 Minnesota Statutes

     353.656 Disability benefits. 

    Subdivision 1.    In line of duty; computation of 
 benefits.  A member of the police and fire plan who becomes 
 disabled and physically unfit to perform duties as a police 
 officer, firefighter, or paramedic as defined under section 
 353.64, subdivision 10, as a direct result of an injury, 
 sickness, or other disability incurred in or arising out of any 
 act of duty, which has or is expected to render the member 
 physically or mentally unable to perform the duties as a police 
 officer, firefighter, or paramedic as defined under section 
 353.64, subdivision 10, for a period of at least one year, shall 
 receive disability benefits during the period of such 
 disability.  The benefits must be in an amount equal to 60 
 percent of the "average salary" as defined in section 353.651, 
 subdivision 2, plus an additional percent specified in section 
 356.315, subdivision 6, of that average salary for each year of 
 service in excess of 20 years.  If the disability under this 
 subdivision occurs before the member has at least five years of 
 allowable service credit in the police and fire plan, the 
 disability benefit must be computed on the "average salary" from 
 which deductions were made for contribution to the police and 
 fire fund. 

    Subd. 1a.    Optional annuity election.  A disabled 
 member of the police and fire fund may elect to receive the 
 normal disability benefit or an optional annuity as provided in 
 section 353.30, subdivision 3.  The election of an optional 
 annuity may be made prior to commencement of payment of the 
 disability benefit or as specified under subdivision 6a.  The 
 optional annuity shall begin to accrue on the same date as 
 provided for the disability benefit.  

    (1) If the person who is not the spouse of the 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 section 353.657, subdivisions 2 and 2a.  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 child or children, if any, continue to 
 be eligible for survivor benefits, including the minimum benefit 
 under section 353.657, subdivision 3.  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 353.657, subdivision 3.  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 
 benefit; 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 353.657, subdivision 3.  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. 2.    Benefits paid under workers' compensation law. 
  If a member, as described in subdivision 1, is injured under 
 circumstances which entitle the member to receive benefits under 
 the workers' compensation law, the member shall receive the same 
 benefits as provided in subdivision 1, with disability benefits 
 paid reimbursed and future benefits reduced by all periodic or 
 lump sum amounts paid to the member under the workers' 
 compensation law, 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. 2a.    Reduction restored; overpayment.  A 
 disabled member who is eligible to receive a disability benefit 
 under subdivision 2 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 2.  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. 3.    Nonduty disability benefit.  Any member of 
 the police and fire plan who becomes disabled after not less 
 than one year of allowable service because of sickness or injury 
 occurring while not on duty as a police officer, firefighter, or 
 paramedic as defined under section 353.64, subdivision 10, and 
 by reason of that sickness or injury the member has been or is 
 expected to be unable to perform the duties as a police officer, 
 firefighter, or paramedic as defined under section 353.64, 
 subdivision 10, for a period of at least one year, is entitled 
 to receive a disability benefit.  The benefit must be paid in 
 the same manner as if the benefit were paid under section 
 353.651.  If a disability under this subdivision occurs after 
 one but in less than 15 years of allowable service, the 
 disability benefit must be the same as though the member had at 
 least 15 years service.  For a member who is employed as a 
 full-time firefighter by the Department of Military Affairs of 
 the state of Minnesota, allowable service as a full-time state 
 Military Affairs Department firefighter credited by the 
 Minnesota State Retirement System may be used in meeting the 
 minimum allowable service requirement of this subdivision. 

    Subd. 4.    Limitation on disability benefit payments.  
 (a) No member is entitled to receive a disability benefit 
 payment when there remains to the member's credit unused annual 
 leave or sick leave or under any other circumstances when, 
 during the period of disability, there has been no impairment of 
 the person's salary as a police officer or a firefighter, 
 whichever applies.  

    (b) If a disabled member resumes a gainful occupation with 
 earnings less than the disabilitant reemployment earnings limit, 
 the amount of the disability benefit must be reduced as provided 
 in this paragraph.  The disabilitant reemployment earnings limit 
 is the greater of: 

    (1) the salary earned at the date of disability; or 

    (2) 125 percent of the salary currently paid by the 
 employing governmental subdivision for similar positions.  

    The disability benefit must be reduced by one dollar for 
 each three dollars by which the total amount of the current 
 disability benefit, any workers' compensation benefits, and 
 actual earnings exceed the greater disabilitant reemployment 
 earnings limit.  In no event may the disability benefit as 
 adjusted under this subdivision exceed the disability benefit 
 originally allowed.  

    Subd. 5.    Proof of disability.  (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. 

    (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.  

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

    (d) A person applying for or receiving a disability benefit 
 shall provide or authorize release of medical evidence, 
 including all medical records and information from any source, 
 relating to an application for disability benefits or the 
 continuation of those benefits. 

    Subd. 5a.    Cessation of disability benefit.  The 
 association shall cease the payment of an in-line-of-duty or 
 nonduty disability benefit the first of the month following the 
 reinstatement of a member to full time or less than full-time 
 service in a position covered by the police and fire fund. 

    Subd. 6. Repealed, 1993 c 307 art 4 s 54 

    Subd. 6a.    Disability survivor benefits.  If a member 
 who is receiving a disability benefit under subdivision 1 or 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 
 353.657, subdivision 2 or 2a, unless the surviving spouse 
 elected to receive a refund under section 353.32, subdivision 
 1.  The joint and survivor optional annuity under subdivision 2a 
 is based on the minimum disability benefit under subdivision 1 
 or 3, or the deceased member's allowable service, whichever is 
 greater. 

    (b) is living at age 65 or five years after the effective 
 date of the disability, whichever is later, the member may 
 continue to receive a normal disability benefit, or the member 
 may elect a joint and survivor optional annuity under section 
 353.30.  The optional annuity is based on the minimum disability 
 benefit under subdivision 1 or 3, or the member's allowable 
 service, whichever is greater.  The election of this joint and 
 survivor 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 
 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 353.657, subdivision 3. 

    Subd. 7. Repealed, 1992 c 432 art 2 s 51 

    Subd. 8.    Application procedure to determine eligibility 
 for police and fire plan disability benefits.  (a) An 
 application for disability benefits must be made in writing on a 
 form or forms prescribed by the executive director. 

    (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. 

    (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. 

    (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. 

    (e) Any application for duty-related disability must be 
 supported by a first report of injury as defined in section 
 176.231. 

    (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. 

    (g) An applicant may file a retirement application under 
 section 353.29, subdivision 4, 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. 

    (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 353.01 or 353.36, subdivision 2, may be 
 made after the occurrence of the disability for which an 
 application is filed under this section. 

    Subd. 9.    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 11, 
 or fails to provide or to authorize the release of medical 
 evidence under subdivisions 5 and 7, 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. 

    Subd. 10.    Accrual of benefits.  (a) A disability 
 benefit begins to accrue the day following the commencement of 
 disability, 90 days preceding the filing of an application, or, 
 if annual or sick leave is paid for more than the 90-day period, 
 from the date on which the payment of salary ceased, whichever 
 is later. 

    (b) Payment of the disability benefit must not continue 
 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 must be made 
 to the surviving spouse or, if none, to the designated 
 beneficiary or, if none, to the estate. 

    Subd. 11.    Independent medical examination; duties of 
 the medical advisor.  Any individual receiving disability 
 benefits or any applicant, if requested by the executive 
 director, must submit to an independent medical examination.  
 The medical examination must be paid for by the association.  
 The medical advisor 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. 

    Subd. 12.    Approval of disability benefits.  Review of 
 disability benefit applications and review of existing 
 disability cases must be made by the executive director based 
 upon all relevant evidence, including advice from the medical 
 advisor and the evidence provided by the member and employer.  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 45 
 days of the receipt of a certified letter notifying the member 
 of the decision to deny the application or the benefit 
 continuation. 

    HIST: 1971 c 297 s 3; 1973 c 753 s 72-74; 1975 c 102 s 20,21; 
 1975 c 359 s 23; 1976 c 329 s 28; 1977 c 429 s 63; 1978 c 796 s 
 38; 1979 c 216 s 19; 1981 c 68 s 23,24; 1981 c 180 s 16; 1981 c 
 224 s 96; 1983 c 85 s 2; 1Sp1985 c 7 s 15; 1986 c 444; 1987 c 
 284 art 5 s 14,15; 1987 c 372 art 1 s 7; art 9 s 20,21; 1989 c 
 319 art 3 s 22; art 17 s 14,15; 1990 c 570 art 11 s 9,10; 1991 c 
 341 s 23; 1992 c 432 art 2 s 19; 1993 c 307 art 4 s 34-39; 1993 
 c 352 s 5; 1994 c 463 s 1; 1997 c 233 art 1 s 42; 2000 c 461 art 
 3 s 23,24; 2002 c 392 art 11 s 52; 2004 c 267 art 8 s 20-25