354.48 PERMANENT DISABILITY BENEFITS.
Subdivision 1. Age, service and salary requirements.
A member who is totally and
permanently disabled and has at least three years of credited allowable service at the time that the
total and permanent disability begins is entitled to a disability benefit based on this allowable
service in an amount provided in subdivision 3. If the disabled member's teaching 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. Any member whose average salary is less than $75
per month is not entitled to disability benefits.
Subd. 2. Applications; accrual.
(a) A person described in subdivision 1, or another person
authorized to act on behalf of the person, may make written application on a form prescribed by
the executive director for a total and permanent disability benefit only within the 18-month period
following the termination of teaching service.
(b) The benefit accrues from the day following the commencement of the disability or the
day following the last day for which salary is paid, whichever is later, but does not begin to accrue
more than six months before the date on which the written application is filed with the executive
director. If salary is being received for either annual or sick leave during the disability period, the
disability benefit accrues from the day following the last day for which this salary is paid.
Subd. 3. Computation of benefits.
(1) The amount of the disability benefit granted to
members covered under section
354.44, subdivision 2
, clauses (1) and (2), is an amount equal
to double the annuity which could be purchased by the member's accumulated deductions plus
interest on the amount computed as though the teacher were at normal retirement age at the
time the benefit begins to accrue and in accordance with the law in effect when the disability
application is received. Any member who applies for a disability benefit after June 30, 1974, and
who failed to make an election pursuant to Minnesota Statutes 1971, section
, shall have
the disability benefit computed under this clause or clause (2), whichever is larger.
The benefit granted shall be determined by the following:
(a) the amount of the accumulated deductions;
(b) interest actually earned on these accumulated deductions to the date the benefit begins
(c) interest for the years from the date the benefit begins to accrue to the date the member
attains normal retirement age at the rate of three percent;
(d) annuity purchase rates based on an appropriate annuity table of mortality established by
the board as provided in section
354.07, subdivision 1
, and using the applicable postretirement
interest rate assumption specified in section
356.215, subdivision 8
In addition, 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, must be paid to basic members.
(2) The disability benefit granted to members covered under section
, shall be computed in the same manner as the annuity provided in section
. The disability benefit shall be the formula annuity without the reduction for each month the
member is under normal retirement age when the benefit begins to accrue.
(3) For the purposes of computing a retirement annuity when the member becomes eligible,
the amounts paid for disability benefits shall not be deducted from the individual member's
accumulated deductions. If the disability benefits provided in this subdivision exceed the monthly
average salary of the disabled member, the disability benefits shall be reduced to an amount
equal to the disabled member's average salary.
Subd. 3a. Optional annuity election.
A disabled member may elect to receive the normal
disability benefit or an optional annuity as provided in section
354.45, subdivision 1
. The election
of an optional annuity shall be made prior to commencement of payment of the disability benefit
and shall be effective and shall begin to accrue on the same date the disability benefit begins
Subd. 4. Determination by the executive director.
(a) The executive director shall have
the member examined by at least two licensed physicians, licensed chiropractors, or licensed
psychologists selected by the medical adviser.
(b) These physicians, chiropractors, or psychologists with respect to a mental impairment,
shall make written reports to the executive director concerning the member's disability, including
expert opinions as to whether or not the member is permanently and totally disabled within the
meaning of section
354.05, subdivision 14
(c) The executive director shall also obtain written certification from the last employer
stating whether or not the member was separated from service because of a disability which
would reasonably prevent further service to the employer and as a consequence the member is not
entitled to compensation from the employer.
(d) If, upon the consideration of the reports of the physicians, chiropractors, or psychologists
and any other evidence presented by the member or by others interested therein, the executive
director finds that the member is totally and permanently disabled, the executive director shall
grant the member a disability benefit.
(e) An employee who is placed on leave of absence without compensation because of
disability is not barred from receiving a disability benefit.
Subd. 5.[Repealed, 1991 c 340 s 34
Subd. 6. Regular physical examinations.
At least once each year during the first five years
following the allowance of a disability benefit to any member, and at least once in every three-year
period thereafter, the executive director shall require the disability beneficiary to undergo an
expert examination by a physician or physicians, by a chiropractor or chiropractors, or by one or
more psychologists with respect to a mental impairment, engaged by the executive director. If
an examination indicates that the member is no longer permanently and totally disabled or that
the member is engaged or is able to engage in a substantial gainful occupation, payments of the
disability benefit by the association must be discontinued. The payments must be discontinued as
soon as the member is reinstated to the payroll following sick leave, but payment may not be
made for more than 60 days after the physicians, the chiropractors, or the psychologists engaged
by the executive director find that the person is no longer permanently and totally disabled.
Subd. 6a. Medical adviser; duties.
The state commissioner of health or a licensed physician
on the staff of the Department of Health who is designated by the commissioner is the medical
adviser of the executive director. The medical adviser shall designate licensed physicians, licensed
chiropractors, or licensed psychologists with respect to a mental impairment, who shall examine
applicants for disability benefits. The medical adviser shall pass upon all expert reports based on
any examinations performed in order to determine whether a teacher is totally and permanently
disabled as defined in section
354.05, subdivision 14
. The medical adviser shall also investigate
all health and medical statements and certificates by or on behalf of a teacher in connection with
a disability benefit, and shall report in writing to the director setting forth any conclusions and
recommendations on all matters referred to the medical adviser.
Subd. 7. Partial reemployment.
If the disabled person resumes a gainful occupation in
which earnings are less than the person's salary at the date of disability, the amount of earnings
plus the disability benefit originally granted may not exceed the salary at the date of disability.
If the sum of earnings plus the disability benefit originally granted exceeds the salary at the
date of disability, the amount of excess earnings must be deducted from the disability benefit
payable during the following calendar year. The provisions of this subdivision shall not prohibit
the executive director from making a determination that a member is no longer totally and
permanently disabled or that the member is engaged or is able to engage in a substantial gainful
occupation based on the results of the regular physical examinations required by subdivision 6 or
any other physical examinations required by the board. Payment of the disability benefit provided
in this subdivision during a period of partial reemployment shall be discontinued if the executive
director finds that the member is no longer totally and permanently disabled.
Subd. 8. Refusal of examination.
If any disabled person refuses to submit to a medical
examination as required under this section, payments by the association must be discontinued and
all rights of the member in any disability benefit must be revoked by the executive director.
Subd. 9. Return to teaching service.
Any person receiving a disability benefit who is
restored to active teaching service shall have deductions taken for the retirement fund.
Subd. 10. Retirement status at normal retirement age.
(a) No person is entitled to receive
both a disability benefit and a retirement annuity provided by this chapter.
(b) The disability benefit paid to a person hereunder must terminate at the end of the month
in which the person attains the normal retirement age. If the person is still totally and permanently
disabled at the beginning of the month next following the month in which the person attains the
normal retirement age, the person must be deemed to be on retirement status and, if the person
had elected an optional annuity under subdivision 3a, must receive an annuity in accordance with
the terms of the optional annuity previously elected, or, if the person had not elected an optional
annuity under subdivision 3a, may elect to receive a straight life retirement annuity equal to the
disability benefit paid before the date on which the person attains the normal retirement age or
reaches the five-year anniversary of the effective date of the disability benefit, whichever is later,
or may elect to receive an optional annuity as provided in section
354.45, subdivision 1
(c) Election of an optional annuity must be made within 90 days of the normal retirement age
or the five-year anniversary of the effective date of the disability benefit, whichever is later.
(d) If an optional annuity is elected, the election is effective on the date on which the person
attains the normal retirement age or reaches the five-year anniversary of the effective date of the
disability benefit, whichever is later. The optional annuity begins to accrue on the first day of the
month next following the month in which the person attains the normal retirement age or reaches
the five-year anniversary of the effective date of the disability benefit, whichever is later.
History: Ex1957 c 16 s 10; Ex1959 c 50 s 15; 1961 c 597 s 3; 1963 c 845 s 7; 1969 c
485 s 22,23; 1973 c 728 s 21; 1974 c 289 s 33-35; 1975 c 306 s 20,21; 1975 c 359 s 23; 1981
c 68 s 25,26; 1981 c 160 s 8-10; 1981 c 224 s 113,114; 1982 c 578 art 3 s 4,19; 1984 c 564 s
34,35; 1Sp1985 c 7 s 19-21; 1986 c 444; 1987 c 259 s 37; 1987 c 284 art 6 s 8; 1987 c 372 art
9 s 26; 1989 c 319 art 2 s 18,19; art 13 s 64-66; 1990 c 570 art 12 s 36; 1991 c 340 s 21-25;
1993 c 307 art 5 s 3,4; 1994 c 528 art 3 s 23; 1995 c 141 art 3 s 20; 2000 c 461 art 3 s 37; 2002
c 392 art 11 s 52; 2004 c 267 art 8 s 26-30