PENSION & INVESTMENT PLANS

Transcription

1 PENSION & INVESTMENT PLANS MEMBER GUIDE 2012 EDITION DEPARTMENT OF MANAGEMENT SERVICES DIVISION OF RETIREMENT

2 DISCLAIMER As much as possible, this booklet has been written in nontechnical terms, avoiding the formal language of the retirement laws and rules. If questions of interpretation arise as a result of the attempt to make the retirement provisions easy to understand, Chapter 121 of the Florida Statutes and Chapters 60S and 19 of the Florida Administrative Code must remain the final authority. The information provided in this booklet is based on the Florida Retirement System 1 laws and rules in existence through July 2012, and is subject to modification based on changes in the law or the Florida Administrative Code. Representatives from participating agencies are not agents of the Department of Management Services, Division of Retirement (Division) or the State Board of Administration (Board). The Division and Board are not responsible for erroneous information provided by representatives of participating agencies. 1 Defined terms are underlined the first time they appear in this publication. All underlined terms are defined in the glossary on page 56.

3 Disability Benefits of the Florida Retirement System 2012 Edition Department of Management Services Division of Retirement

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5 E TO MEMBERS Dear Florida Retirement System Member: The 2012 edition of Disability Benefits of the Florida Retirement System has been prepared to help you understand the benefits available to you under the Florida Retirement System if you should become totally and permanently disabled. Disability coverage is an important benefit that your employer provides at no cost to you under the Florida Retirement System Pension Plan and Florida Retirement System Investment Plan. This booklet is intended as a supplement to the Retirement Guide for the class of Florida Retirement System membership to which you belong, as well as other materials you may receive as a Florida Retirement System member. The information in this booklet is supplemented by information posted on the Florida Retirement System websites, or and by newsletters and other publications available to you both before and after retirement. A list of informational publications you may request or access on our websites is on page 63. In an effort to continually improve our services, we include a form on page iv for you to provide feedback on this booklet. Please complete and return this form so that we may serve you better. If you need additional information, our contact information is found beginning on page 1. If you plan to visit us, a map showing our location is on page 4. Sincerely, Sarabeth Snuggs State Retirement Director iii

6 GUIDE FEEDBACK Florida Retirement System Disability Benefits 2012 Edition Please rate the following aspects of this booklet: 1. Explanation of disability benefit provisions of the Florida Retirement System: Excellent Above Average Average Below Average Poor 2. Readability (easy to read): Excellent Above Average Average Below Average Poor 3. Usefulness of examples: Excellent Above Average Below Poor Average Average 4. Useful for future reference: Yes No 5. I found the following section(s) or subject(s) helpful: 6. I found the following section(s) or subject(s) confusing: 7. Questions or comments: Mail your completed form to the Division of Retirement at the address shown on page 1. If you need an answer to a question, be sure to include your full name, the last four digits of your Social Security number, daytime telephone number, and return address. Thank you for your time and consideration in completing and returning this evaluation. iv

7 TABLE OF CONTENTS LETTER TO MEMBERS... iii GUIDE FEEDBACK... iv CONTACTING THE DIVISION...1 Map to Division...4 PLAN INFORMATION...5 WHAT IS DISABILITY RETIREMENT?...6 Types of Disability Retirement...6 Disability Must Be Total and Permanent...6 DISABILITY COVERAGE...7 The Florida Retirement System Pension Plan...7 The Florida Retirement System Investment Plan...8 Closed Retirement Systems...9 Other Optional Retirement Programs...9 Deferred Retirement Option Program...10 Disability Retirement and Deferred Retirement Option Program 10 ELIGIBILITY FOR DISABILITY BENEFITS...11 Regular Disability...11 In-Line-of-Duty Disability...13 Proof of Disability...14 Nonadmissible Causes of Disability...15 WORKERS COMPENSATION AND SOCIAL SECURITY DISABILITY BENEFITS...16 Legal Representatives...17 BENEFICIARY DESIGNATION...17 Option Selection and Beneficiary Designation...18 Miscellaneous Provisions...18 APPLICATION FOR DISABILITY BENEFITS...20 Required Forms...20 Proof of Age...23 Effective Retirement Date...23 DENIAL OF APPLICATION...24 Right to Appeal...25 Reapplication and Review...25 BENEFIT PAYMENT OPTIONS...26 Florida Retirement System Investment Plan Disability Retirees...29 v

8 YOUR DISABILITY BENEFIT...29 Minimum Disability Benefit...29 Regular Disability (25 percent Minimum Benefit)...29 In-Line-of-Duty Disability (42 percent or 65 percent Minimum Benefit)...30 Calculating Your Disability Benefit...30 Years of Creditable Service...31 Average Final Compensation...32 Percentage Value...32 Obtaining Estimates and Information...34 SAMPLE DISABILITY BENEFIT CALCULATIONS...35 Steps to Calculate a Disability Retirement Benefit...35 Examples: For All Members Except Those in the Special Risk Class.37 Examples for Special Risk Class Members...40 RECOVERY AND REEMPLOYMENT...43 Reemployment After Disability Retirement...43 Reemployment with a Non-Florida Retirement System Employer.. 43 Reemployment with a Florida Retirement System Employer...43 DISABILITY REEXAMINATION...45 Reexamination...45 Denial of Disability on Reexamination...45 AFTER FLORIDA RETIREMENT SYSTEM DISABILITY RETIREMENT. 46 Cost-of-Living Increases...46 Health Insurance Subsidy...46 Insurance Coverage After Retirement...47 Taxation of Disability Benefits...47 Limitation of Benefits...48 QUESTIONS AND ANSWERS ABOUT DISABILITY RETIREMENT..48 GLOSSARY OF RETIREMENT TERMS...56 PUBLICATIONS...63 DISABILITY RETIREMENT CHECKLIST...66 vi

9 CONTACTING THE DIVISION When you write the Division, include your full name (printed and signed), the last four digits of your Social Security number, return address, and daytime telephone number. If you are unable to manage your affairs, a copy of the power of attorney or guardianship papers authorizing someone to act on your behalf must be submitted to the Division. Please address your correspondence to: DIVISION OF RETIREMENT PO BOX 9000 TALLAHASSEE, FLORIDA Or, send us your questions or comments from our website: Our website is available 24 hours a day, seven days a week. It gives you immediate access to most of our publications and forms, as well as answers to frequently asked questions. You may also access the secure web environment of our "Online Services" to calculate your own informal service-based benefit estimate 2 or request we calculate an estimate for you. You can create and maintain your member profile to receive an from us when publications and forms such as the FRS Bulletin, your member annual statement, the FRS Retiree Newsletter, After You Retire, or your Internal Revenue Service Form 1099-R are available from our website. We encourage you to regularly visit our website and suggest you start with the Website Overview page to become familiar with all of the resources and services available to you online. 2 While Online Services has valuable tools for calculating service-based benefits, it was not designed for calculating disability benefits. Due to the special circumstances that apply to disability retirement, you are advised to contact the Disability Determination Section of the Division for disability benefit information. 1

10 When you telephone, fax or the Division, the following telephone numbers, fax numbers, addresses, and descriptions of responsibilities will help you reach the office best able to help you. Bureau or Section Bureau of Benefit Payments Disability Determination Section Answers questions about eligibility for disability benefits and processes disability retirement applications. Telephone (Toll Free)... (877) Telephone... (850) Fax... (850) Retired Payroll Section Issues benefit payments, handles retiree/payee address changes, and processes tax deductions. Telephone (Toll Free)... (888) Telephone... (850) Fax... (850) Deferred Retirement Option Program Termination and Refund Payment Section Receives reports of Deferred Retirement Option Program employment terminations, processes Deferred Retirement Option Program payout forms, issues employee contribution refunds and processes insurance deductions from Florida Retirement System pension benefits. Telephone (Toll Free)... (877) Telephone... (850) Fax... (850) Survivor Benefits Section Processes claims for survivors and beneficiaries upon a member s death and processes beneficiary changes after retirement or after the end of Deferred Retirement Option Program participation. Telephone (Toll Free)... (877) Telephone... (850) Fax... (850) survivor@dms.myflorida.com 2

11 Bureau of Retirement Calculations Determines eligibility for service retirement and the Deferred Retirement Option Program, calculates retirement benefits and estimates of benefits, calculates the cost to purchase various types of creditable service, and answers questions about reemployment after retirement. Telephone (Toll Free)... (888) Telephone... (850) Fax... (850) Research & Education Section Analyzes proposed legislation, researches retirement-related issues, coordinates policy development, and produces and distributes publications. Telephone (Toll Free)... (877) Telephone... (850) Fax... (850) Bureau of Enrollment & Contributions Enrollment Section - Enrolls agencies and members in the Florida Retirement System, State University System Optional Retirement Program, Senior Management Service Optional Annuity Program, and Social Security, and processes beneficiary changes before retirement. Telephone (Toll Free)... (877) Telephone... (850) Fax... (850) enrollment@dms.myflorida.com 3

12 Map to Division You may visit the Division at the address below without an appointment from 8:00 a.m. until 4:30 p.m., Monday through Friday, except on designated state holidays. The map below provides directions: 4

13 PLAN INFORMATION Name of Plan Plan Types Administration and Service of Legal Process Provisions of Law Funding Plan Year Employment Rights Not Implied Florida Retirement System (Disability Coverage) The Florida Retirement System is qualified under section 401(a) of the Internal Revenue Code, with defined benefit and defined contribution options. The Division of Retirement administers disability coverage under the Florida Retirement System Pension Plan and the Florida Retirement System Investment Plan. Legal process for the agency should be addressed to: Scott Stewart, Interim Secretary Department of Management Services Division of Retirement 4050 Esplanade Way Tallahassee, Florida The Office of General Counsel will accept service on behalf of the Secretary and is located in Suite 160, 4050 Esplanade Way. Legal process for an individual should be addressed to that person and served on him or her at: Department of Management Services Division of Retirement 1317 Winewood Blvd, Building 8 Tallahassee, FL The Florida Retirement System was established in 1970 by chapter 121, Florida Statutes. Changes to the law can be made only by an act of the Florida Legislature. Rules governing the operations and administration of the system may be found in chapters 60S and 19 of the Florida Administrative Code. The Florida Retirement System is a contributory system; contributions are paid by both employees and their participating employers and then transferred to the Florida Retirement System Trust Fund for investment by the State Board of Administration to fund future disability benefits for members and beneficiaries. The plan year is July 1 through June 30. Membership in the Florida Retirement System does not give you the right to be retained in the employ of a participating employer, nor does it give you a right or claim to any benefit that you have not accrued under the system. 5

14 WHAT IS DISABILITY RETIREMENT? The Florida Retirement System provides disability coverage in order to provide a source of income to eligible members of the Florida Retirement System Pension Plan and Florida Retirement System Investment Plan who become totally and permanently disabled and are unable to work. Types of Disability Retirement Two types of disability retirement are available under the Florida Retirement System regular and in-line-of-duty disability retirement: 1. You may be eligible for regular disability retirement if you become disabled due to an illness or injury not related to your Florida Retirement System employment. 2. You may be eligible for in-line-of-duty disability retirement if you are disabled due to an illness or injury during and as a result of the performance of your duties as required by your Florida Retirement System employer. Disability Must Be Total and Permanent The Florida Retirement System does not provide for temporary or partial disability benefits. To qualify for disability retirement under the Florida Retirement System, you must be totally and permanently disabled from performing any useful and efficient service as an officer or an employee. If medical reports show that you are unable to continue in your present occupation but are able to perform another type of gainful employment, you will not be eligible for a disability benefit. The fact that your current employer does not have a job that you are capable of performing available will not be considered proof of total and permanent disability. Reference: Section (4)(a) and (b), Florida Statutes Rule 60S-4.007(1) and (2), Florida Administrative Code 6

15 DISABILITY COVERAGE Since June 1, 2002, the Florida Retirement System has offered two primary retirement plan options the Florida Retirement System Pension Plan the defined benefit plan administered under part I of Chapter 121, Florida Statutes and the Florida Retirement System Investment Plan a defined contribution plan created under part II of Chapter 121, Florida Statutes. Both plans are funded by employee and employer contributions. From June 2002 through February 2003, members of the Florida Retirement System who were actively employed during the enrollment window for their employee group were provided the opportunity to transfer to the Florida Retirement System Investment Plan. Newly hired members are enrolled by default in the Florida Retirement System Pension Plan and have five months after the month they begin employment to choose to participate in either plan (or remain a default member of the Pension Plan). Disability coverage is available under both of these plans, but may or may not be available under other state-administered retirement systems and programs. The Florida Retirement System Pension Plan Under the Florida Retirement System Pension Plan, the Florida Retirement System employer makes monthly contributions to provide the member lifetime continuing benefits at retirement if he/she meets certain age and/or service requirements. The service benefit is determined by formula, based on the member s earnings, length of service, and service value at retirement. However, if a Pension Plan member is totally and permanently disabled, lifetime monthly disability benefits may be available instead of service benefits. Disability coverage under the Florida Retirement System Pension Plan is the main focus of this publication. Reference: Sections (4), , (2), and , Florida Statutes Rule 60S-4.007, Florida Administrative Code 7

16 The Florida Retirement System Investment Plan Under the Florida Retirement System Investment Plan, the employee and their Florida Retirement System employer contribute to an account set up for the participant, and the participant controls how the contributions are invested among the plan's investment funds. The service benefit available under this plan is the vested amount that has accumulated in this account after the member terminates employment and chooses to take distribution of his/her funds. However, if an Investment Plan member (or a hybrid member of both plans) becomes totally and permanently disabled, lifetime monthly disability benefits may be available under Section (2), Florida Statutes, instead of benefits that might otherwise be payable. The Division of Retirement administers the disability program for the Investment Plan, so any Florida Retirement System Investment Plan member who wishes to receive disability benefits under this plan, must apply for benefits with the Division (see page 20). Eligibility requirements for members of the Florida Retirement System Investment Plan are similar to requirements for members of the Florida Retirement System Pension Plan, as described elsewhere in this booklet (see pages 6 and 11), except that: All moneys accumulated in your account under the Investment Plan must be transferred to the Florida Retirement System Trust Fund. Service in the Investment Plan will count toward the creditable service necessary for you to vest for disability benefits. Upon approval of your application for disability retirement, you will become a member of the Florida Retirement System Pension Plan as of your effective disability retirement date (see page 23). You may cancel your application for disability retirement, as long as your cancellation request reaches the Division of Retirement before a disability retirement warrant has been deposited, cashed, or received by direct deposit. Upon timely cancellation of your 8

17 disability retirement application, your transfer to the Pension Plan will be canceled, your enrollment in the Investment Plan will be reinstated, and all transferred funds will be returned to your investment account(s). Reference: Sections (4), , (2), and , Florida Statutes Rules 19 and 60S-4.007, Florida Administrative Code Closed Retirement Systems Disability benefits available under the Florida Retirement System differ from disability benefits available under the older, closed retirement systems. Active members of the Teachers Retirement System or the State and County Officers and Employees Retirement System should contact the Disability Determination Section (see page 2) for details of their system s disability coverage. Reference: Sections (7), (6), , (4), (2), (7)-(11), (10), (10)-(12) and (15B), (16) (d), (1)(f) and (2) and , Florida Statutes Rule 60S-4.007, Florida Administrative Code Other Optional Retirement Programs The Florida Retirement System offers certain members the opportunity to participate in various nonintegrated optional defined contribution retirement programs instead of the Florida Retirement System. These optional programs include: The Senior Management Service Optional Annuity Program available to state senior managers. Local government senior managers may choose to opt out of the Florida Retirement System altogether. The State University System Optional Retirement Program available to faculty, administrative and professional, and executive service employees in the State University System. The State Community College System Optional Retirement Program available to faculty and certain administrators in Regular Class positions in the State 9

18 Community College System, if their college offers an optional retirement program. No Florida Retirement System disability coverage is available under these optional retirement programs, other than monies that accumulate in the participant s account. However, the employer may separately provide disability coverage or disability insurance. If you are disabled while participating in one of these programs, check with your personnel officer to see what benefits may be available to you. Reference: Sections (6) (b), (3)(g), and (3)(g), Florida Statutes Rules , 60S-4.007, 60U-1.004, and 60V-1.004, Florida Administrative Code Deferred Retirement Option Program The Deferred Retirement Option Program is a program offered under the Florida Retirement System Pension Plan that allows members who are eligible for normal service retirement to retire and continue working for a limited time while their monthly retirement benefits, plus any applicable cost-of-living adjustments and interest, accumulate on a tax-deferred basis in the Florida Retirement System Trust Fund. When a participant s Deferred Retirement Option Program period ends, he or she must terminate all employment with Florida Retirement System employers to receive their Deferred Retirement Option Program accumulation and begin receiving monthly retirement benefits in the amount determined at time they entered the Deferred Retirement Option Program, plus cost-of-living adjustments. Reference: Section (13)(c), Florida Statutes Rule 60S , , and , Florida Administrative Code Disability Retirement and the Deferred Retirement Option Program Participants of the Deferred Retirement Option Program are not eligible for Florida Retirement System disability benefits because they are considered retired under the Florida Retirement System. If you become disabled while in the Deferred Retirement Option Program, you will receive your total Deferred Retirement Option Program accumulation and begin receiving your monthly service 10

19 retirement benefit when you terminate employment and end your Deferred Retirement Option Program participation. No Florida Retirement System disability benefit is available because, even though you continue working while in the Deferred Retirement Option Program, you are actually retired. Under the Florida Retirement System, once you have retired, you may not later change your type of retirement from a normal service retirement to a disability retirement. However, your employer might offer other disability benefits or provide disability insurance apart from your Florida Retirement System retirement benefit. Check with your personnel officer to ensure you are receiving all the benefits available to you. Reference: Sections (4)(b) and (c) and (13)(c)7., Florida Statutes Rules 60S-4.002(4), 4.007, and (6), Florida Administrative Code ELIGIBILITY FOR DISABILITY BENEFITS Disability coverage is available for active members of the Florida Retirement System Pension Plan and Florida Retirement System Investment Plan. If you are a retiree of either plan with renewed membership or you are in the Deferred Retirement Option Program, you are not eligible for disability benefits. To qualify for disability retirement under the Florida Retirement System Pension Plan or Florida Retirement System Investment Plan, you must be totally and permanently disabled that is, prevented by reason of a medically diagnosed physical or mental impairment from performing useful and efficient service as an officer or employee. Your disabling injury or illness must have occurred or become symptomatic before you terminated covered employment. Reference: Sections (4)(a)-(c), (16), and (2), Florida Statutes Rule 60S-4.007, Florida Administrative Code Regular Disability As of July 1, 2001, to qualify for regular disability retirement, you must complete at least eight years of creditable service, regardless 11

20 of the other vesting requirements for your membership class or plan. 3 Generally, Florida Retirement System Pension Plan members vest for service retirement with six years of creditable service if initially employed prior to July 1, 2011 (see page 63). If initially employed on or after July 1, 2011, the vesting requirement is eight years of creditable service. If you are vested for service retirement under the Pension Plan, but have fewer than eight years of creditable service, you may be eligible to purchase optional service credit to meet the vesting requirement for regular disability retirement, such as credit for an approved leave of absence, military service, in-state service or out-of-state public service. 4 Florida Retirement System Investment Plan members are vested in employer contributions made to their Investment Plan account after one year of creditable service. If initially employed prior to July 1, 2011, Florida Retirement System Investment Plan members must have six years of creditable service to vest in any opening account balance transferred from the Pension Plan to the Investment Plan. If initially employed after July 1, 2011, Florida Retirement System Investment Plan members must have eight years of creditable service to vest in any opening account balance transferred from the Pension Plan to the Investment Plan. To qualify for regular disability retirement under the Florida Retirement System Investment Plan, a total of eight years of creditable service is also required. 5 Florida Retirement System 3 If you terminated Florida Retirement System-covered employment before July 1, 2001, and have not since been employed under the Florida Retirement System, you must have ten years of creditable service to qualify for regular disability retirement benefits based on a disability sustained during your prior Florida Retirement System employment because you are still subject to the disability vesting law in effect before that date. 4 See the retirement guide for your membership class for more on the purchase of optional service credit under the Florida Retirement System Pension Plan (see page 63). 5 For members of the Florida Retirement System Investment Plan, creditable service under both the Pension Plan and the Investment Plan may be combined to meet the eight year vesting requirement for disability retirement (see also page 8). 12

21 Investment Plan members are not eligible to buy optional service credit. Contact the Disability Determination Section for more information about vesting for disability benefits. NOTE: The fact that you have sufficient creditable service to qualify for regular disability retirement does not qualify you for a disability benefit for any disability that occurs after you have terminated employment. Reference: Sections (4)(a) and (2)(b), Florida Statutes Rule 60S-4.007, Florida Administrative Code In-Line-of-Duty Disability You are covered for in-line-of-duty disability from your first day of employment. If you believe the illness or injury that caused your total and permanent disability during, and as a result of, the actual performance of your duties as required by your employer, you may apply for in-line-of-duty disability retirement benefits. Special presumptions apply for specified professions and diseases: If you are a firefighter, law enforcement officer, or correctional officer who is disabled due to tuberculosis, heart disease, or hypertension, your disability is presumed to have occurred in the line of duty, unless competent evidence proves otherwise. To qualify for the presumption, you must have successfully passed a preemployment physical examination that failed to reveal evidence of the condition. If you are a firefighter, paramedic, emergency medical technician, law enforcement officer, or correctional officer who is disabled due to hepatitis, meningococcal meningitis, or tuberculosis, your disability is presumed to have occurred in the line of duty, unless competent evidence proves otherwise. You must have passed a preemployment physical examination that failed to reveal any evidence of the communicable disease and must submit an affidavit attesting that you have not been exposed to the disease outside the scope of your employment. You may be required to establish that you have received a standard 13

22 medically recognized vaccination, immunization, or other preventive measure, if available. You may also be asked to supply a copy of the accident report indicating suspected or known exposure. Any exposures should be recorded by your employer. If you are a first responder as defined by Section (1), Florida Statutes, who is disabled: Due to exposure to a toxic substance, your disability will only be considered to have occurred in the line of duty if there is a preponderance of the evidence that the levels of the substance to which you were exposed in the line of duty can cause your disability. By an adverse result or complication caused by a smallpox vaccination, your disability is presumed to have occurred in the line of duty. By a mental or nervous injury, your disability will only be presumed to have occurred in the line of duty if it results from a physical injury that occurred in the line of duty. NOTE: As with regular disability retirement, you are not eligible for an in-line-of-duty disability benefit for any disability that occurs after you have terminated employment. Reference: Sections , , and (4)(a), Florida Statutes Rule 60S-4.007(2)(d), Florida Administrative Code Proof of Disability Before the Division of Retirement can make a determination on your application for disability retirement, proof of disability is required. Your total and permanent disability must be certified by two Floridalicensed physicians, unless you are employed in a Florida Retirement System-covered position and are permanently assigned by your Florida Retirement System employer to work outside the State of Florida, but within the United States. In such circumstances, two physicians licensed by that state may certify your total and permanent disability. All physician certifications must be supported by such other evidence as may be required. It must be documented that: 14

23 Your disability was due to a medical condition that occurred or became symptomatic while you were actively employed in a Florida Retirement System-covered position; 6 You were totally and permanently disabled when you terminated covered employment; and You have not been employed with any employer since becoming totally and permanently disabled. In addition, to qualify for in-line-of-duty disability benefits, the disability must have been caused by a job-related illness or accident that occurred while you were working for a Florida Retirement System employer. The unavailability of employment that you are capable of performing is not considered proof of your total and permanent disability. Even if medical reports indicate that you are unable to continue in your present occupation, as long as you can perform another type of work, you would not be eligible for a disability benefit. Reference: Sections (4)(c) and (2)(e), Florida Statutes Rule 60S-4.007(2), Florida Administrative Code Nonadmissible Causes of Disability The Florida Retirement System does not provide disability benefits for disability due to any injury or disease which happens after your employment has terminated. Also, you are ineligible for disability benefits if you your disabling injury or disease happens while willfully participating in a riot, civil insurrection or other act of violence, or while committing a felony. You are ineligible for a disability benefit for intentional self-inflicted injury. Disability resulting from drug or alcohol abuse is not considered suffered in the line of duty, except for undercover law enforcement officers who are expected to consume alcohol in the course of their work. Reference: Sections (4)(i) and (2)(l), Florida Statutes Rule 60S-4.007(7), Florida Administrative Code 6 Active employment includes any period that you are in an employer- employee relationship, including approved leaves of absence. 15

24 WORKERS COMPENSATION AND SOCIAL SECURITY DISABILITY BENEFITS The fact that you are approved for workers compensation or Social Security Disability benefits does not mean you that will be approved for disability benefits under the Florida Retirement System; however, it may help support your claim if you apply for disability benefits under the Florida Retirement System. You may be entitled to retirement credit for time that you were receiving workers compensation. If you are approved for disability retirement under the Florida Retirement System, or you recover and return to covered employment for one calendar month or longer, you will receive full retirement credit for the time that you were receiving temporary total or temporary partial workers compensation payments until you either reached maximum medical improvement or terminated employment, at no cost to you. Your effective disability retirement date may not be prior to the date you reach maximum medical improvement, unless you terminate employment before that date. Different requirements apply to benefits available under the Florida Retirement System than apply to workers compensation benefits or federal benefits provided under Social Security and Medicare. The Florida Retirement System has no authority over Social Security, workers compensation, or Medicare benefit payments. For more information on workers compensation, please contact the Division of Workers Compensation Employee Assistance Office; toll free, at (800) or, in the Tallahassee local calling area, (850) For more information on Social Security or Medicare benefits and possible limitations on those benefits, contact your local Social Security office or call the Social Security Administration toll-free information number at (800) NOTE:Under the Workers Compensation Law, your workers compensation benefit may be offset against other disability benefits you receive so that your combined benefits do not exceed a statutory threshold. In other words, if you get workers compensation, Florida Retirement System or other disability benefits, and/or Social Security Disability benefits, your employer 16

25 may be entitled to reduce your workers compensation if your combined benefits would provide you an income that is higher than that allowed by law, based on your pre-disability income. Reference: Sections (13), (4)(a), , , , Florida Statutes LEGAL REPRESENTATIVES If a member or retiree is determined by a judge to be physically or mentally incapacitated, the judge will then appoint a legal guardian. The guardian must furnish the Division with a copy of the Letters of Guardianship in order to act on the behalf of the member or retiree. The guardian will be notified if any other documentation is needed. A member or retiree may grant a durable power of attorney to someone to handle his/her financial affairs. A copy of the current durable power of attorney must be provided to the Division. The person appointed as attorney-in-fact through the durable power of attorney will be notified if any other documentation is needed. The Division does not accept medical powers of attorney. A legal guardian or attorney-in-fact may make application for retirement on behalf of a member and is allowed to make changes to the deductions, address and direct deposit information for the member or retiree. BENEFICIARY DESIGNATION At any time before you retire, you may name a beneficiary or beneficiaries to receive any benefits that may be payable in the event of your death. As a member of the Florida Retirement System Pension Plan or the Florida Retirement System Investment Plan, you are encouraged to designate one or more persons as your beneficiary or beneficiaries and to keep your designation up to date. You may state that your beneficiaries share jointly or sequentially, or specify that any benefits due be paid through a trust. If you fail to name a beneficiary, or if your 17

26 beneficiary has died, any benefits due upon your death will be paid according to Florida law. Option Selection and Beneficiary Designation When you apply for disability retirement under either the Florida Retirement System Pension Plan or Florida Retirement System Investment Plan, you will be asked to designate a new beneficiary. You may do this on your disability retirement application (see page 20), or by making a new beneficiary designation. When you retire under the Florida Retirement System Pension Plan, the benefit payment option 7 you select can affect your choice of beneficiary: If you choose Option 1 or 2, you may name as beneficiary any person, organization, trust or your estate, or you may designate that benefits be paid according to Florida law. If you choose Option 2, you may name one or more contingent beneficiaries to receive any benefits remaining after you and your primary beneficiaries have died. If you choose Option 3 or 4, your beneficiary must qualify as your joint annuitant (see page 27 or 60). If you name your spouse, you may be asked to provide proof of marriage. If you choose Option 3, you may name more than one joint annuitant and specify the share to be paid to each, but if you choose Option 4, you may name only one joint annuitant. Forms for designating or changing beneficiaries and for selecting a benefit payment option are available on request from the Division or from your employer s personnel office. Or, you may obtain these forms online from the Forms page of the Division of Retirement s website at 7 For more on benefit payment options, see page

27 Miscellaneous Provisions Provisions in the law could affect you or the person(s) you would prefer to receive benefits when you die: Automatic designation of spouse. If you die before your effective retirement date as a member of the Florida Retirement System Pension Plan, your spouse at the time of your death will automatically be your beneficiary unless you named a different beneficiary after your most recent marriage. If you die after you retire, your most recently designated beneficiary receives any benefits payable, regardless of any life changes that may have occurred since you retired (such as divorce, remarriage or death of a beneficiary). Death in the line of duty. If you die in the line of duty as a member of the Florida Retirement System Pension Plan, your surviving spouse is eligible for a lifetime monthly benefit equal to half of your last monthly salary, regardless of your length of service or whether you named someone else as your beneficiary. If you have a dependent child or children at the time of your death, but are not married or your spouse dies before your youngest child reaches age 18, the benefit will be paid on behalf of your unmarried children until the youngest child reaches age 18. This provision also applies if you are disabled in the line of duty as a member of the Florida Retirement System Pension Plan and are approved for disability retirement, but die as a result of your illness or injury before your effective retirement date. If you are approved for disability retirement as a member of the Florida Retirement System Investment Plan, but die before your disability retirement effective date, survivor benefits would be paid to your beneficiary as provided in Section (3), Florida Statutes Changing your joint annuitant. When you retire due to disability with an Option 3 or 4 benefit, you may change your joint annuitant up to two times. To make this change, you must file a notarized Change of Joint Annuitant Form, 19

28 Form JA-1, with the Division and notify, in writing, your surviving former joint annuitant of the change. 8 Joint annuitant nullification. If you retire due to disability under Option 3 or 4 and named your spouse as your beneficiary (your joint annuitant) and you subsequently divorce, you may nullify your designation of your former spouse as your joint annuitant (unless a Qualified Domestic Relations Order prevents you from taking such action). To do this, you must submit to the Division a notarized Joint Annuitant Nullification Form, Form JA-NUL, and a copy of your divorce papers. After nullification, your former spouse is considered by law to have died before you and, if you ve chosen Option 4, your benefit payments will be reduced by one-third. You may not reverse a joint annuitant nullification, but you may make a new joint annuitant designation. Nullification forms are available from the Division. Disability retirees of the Florida Retirement System Investment Plan. In some cases, an amount equal to the remaining vested Investment Plan account balance may be payable (see page 29 for details). Reference: Sections (28) and (46) and (6)-(8) and (14), Florida Statutes Rules 60S-4.008, 4.010, and 4.011, Florida Administrative Code APPLICATION FOR DISABILITY BENEFITS Required Forms To apply for disability benefits under the Florida Retirement System Pension Plan or Florida Retirement System Investment Plan, you must submit the following forms. You may obtain these forms from your personnel office, by downloading them from the Online Services Page or the Forms page of the Division of 8 When you nullify or otherwise change a joint annuitant designation after you have retired, your benefit may be recalculated. This nearly always results in reduced benefits. 20

29 Retirement's website at or by writing or calling the Disability Determination Section (see page 2). 1. For members of the Florida Retirement System Pension Plan, a Florida Retirement System Application for Disability Retirement, Form FR-13, completed by you and signed in the presence of a Notary Public. Your effective date of retirement (see page 23) can depend in part on when the Division of Retirement receives this form. The rest of the required forms and documents can be sent in later do not delay submitting your Form FR-13 while you gather other information. Members of the Florida Retirement System Investment Plan must complete an Investment Plan Application for Disability Retirement, Form PR-13, to apply for disability benefits. 2. A Statement of Disability by Employer, Form FR-13a, completed by a designated person in your personnel office Two copies of the Physician s Report of Disability, Form FR-13b, completed by two different Florida-licensed physicians currently treating you who can attest that you are mentally or physically disabled from gainful employment and your disability is total and permanent.9 If you are employed in a Florida Retirement System-covered position and you are permanently assigned by your Florida Retirement System employer to work outside the State of Florida, but within the United States, then two licensed physicians of the state where you work may be used instead of two Florida-licensed physicians. 4. For members of the Florida Retirement System Pension Plan, an Option Selection for FRS Members, Form FRS-11o, completed by you and signed in the presence of a Notary Public. Members of the Florida Retirement System Investment Plan must complete an Option Selection for Disability Retirement, Form PR-11o. 9 This form is used by Florida Retirement System Pension Plan and Florida Retirement System Investment Plan members. 21

30 5. For members of the Florida Retirement System Pension Plan, a Spousal Acknowledgment Form, Form SA-1, completed by you and signed in the presence of a Notary Public, verifying your marital status. If you are married and select Option 1 or Option 2, your spouse must acknowledge your choice of option by signing the form in the presence of a Notary Public. Members of the Florida Retirement System Investment Plan must complete a Spousal Acknowledgment Form for Disability Retirement, Form SA-2. If you are applying for in-line-of-duty disability benefits, you must also provide copies of each workers compensation Notice of Injury, as filed by your employer. If no such reports were filed, you should submit a written statement containing the following: 1. An explanation of why a Notice of Injury was not completed and why you did not apply for workers compensation benefits. 2. The dates, times, and circumstances surrounding each onthe-job accident or illness. 3. A statement from you explaining why you consider the accident or illness to have been suffered in the line of duty. 4. A statement from your supervisor explaining why he or she considers the accident or illness to be job-related (suffered in the line of duty). The Disability Determination Section will review your application and will let you know if additional information is needed from you, your employer, or your physicians. Examples of the types of additional information that could be required to determine your eligibility for disability benefits include: 1. Personal interviews with you, your physicians, or your employer. 2. An examination by a medical specialist. 3. A personal interview by a rehabilitation nurse. 4. Workers compensation information from your employer or the third party carrier administering workers' compensation coverage for your employer. 22

31 Once the required information is received, the Division will notify you in writing that your disability claim has been approved or denied. Reference: Sections (4)(c) and (2)(e), Florida Statutes Rule 60S-4.007, Florida Administrative Code Proof of Age When you apply for disability retirement, you must provide proof of your age. If you choose benefit payment Option 3 or 4 (see page 27), you must also furnish proof of age for your joint annuitant. The Division must receive any required proof of age before you can begin receiving benefits. A legible copy of one of the following documents will be accepted as proof of age: Birth certificate issued by the state or country of birth; Delayed birth certificate; Census report more than 30 years old; Life insurance policy more than 30 years old; Documentation from the Social Security Administration stating the date of birth established for payment of benefits to you or your joint annuitant; or Certificate of Naturalization. If you cannot furnish any of these documents, a legible copy of a document from two of the following categories will be required: Birth certificate of child, displaying your age or your joint annuitant s age, as appropriate. Baptismal certificate more than 30 years old. Hospital record of birth. School record at time you or your joint annuitant entered grammar school. Reference: Section (6), Florida Statutes Rule 60S , Florida Administrative Code Effective Retirement Date If you are approved for disability retirement benefits, your effective retirement date cannot be established until the Division receives official documentation from your employer that you 23

32 have terminated employment. Benefit payments will be retroactive to your effective retirement date. If your disability retirement application 10 is submitted within 30 days of your termination date, your effective retirement date will be the first day of the month following your termination date. If you do not submit your application within 30 days of termination, your effective retirement date will be the first day of the month after the Division receives your application. For example, if you terminate on June 30th and your application is received on July 5th, your effective retirement date would be July 1st, but if the Division didn t receive your application until August 2nd, your effective retirement date would be September 1st. An effective retirement date is always the first day of the month, and benefits are payable on the last working day of the month. If salary is reported or creditable service is granted on your behalf after you have applied for disability benefits, your effective retirement date can be no earlier than the first day of the month following the last month that you earned salary or received service credit. If you were receiving workers compensation payments, your effective disability retirement date may also be affected (see page 16). Reference: Sections (4)(a) and (2)(c), Florida Statutes Rules 60S (3)(b) and 4.007, Florida Administrative Code DENIAL OF APPLICATION If you fail to demonstrate total and permanent disability or in-lineof-duty disability, you will be notified by certified mail that the Division intends to deny your application. The notice will include factual, legal, and policy grounds for the decision. You will then have 21 days to challenge the intended denial by submitting your written objections and evidence to the Division, after which the Division will have 21 days to respond. You will be notified by certified mail, with a copy to your employer, if the Division rejects your challenge. The final denial 10 Form FR-13 for Florida Retirement System Pension Plan members or Form PR- 13 for Florida Retirement System Investment Plan members. 24

33 letter will explain the Division s final decision and will advise you regarding your appeal rights. The Disability Determination Section will enclose an appeal form with your final disability denial letter. Right to Appeal If the Division of Retirement denies your disability claim, you may request a hearing before the State Retirement Commission. To receive a hearing before the Commission, you must submit the appeal form to the State Retirement Commission within 21 days of receipt of the Division's final denial. If you appeal to the State Retirement Commission, you may elect to receive the service retirement benefits for which you are eligible while you wait for the Commission's decision on your appeal. However, if you choose to receive service retirement benefits while your appeal is pending and your application for disability benefits is later approved as a result of your appeal, you cannot change your benefit payment option. If you choose to take an early service retirement and your appeal is denied, you cannot subsequently cancel or change this election. If the State Retirement Commission approves your application for disability retirement, the commission may cover your reasonable attorney s fees and taxable costs up to an amount equal to half of your first year s disability benefit payments. A decision of the State Retirement Commission is considered final agency action. However, you may petition the District Court of Appeal for review of the Commission s decision. Reapplication and Review If your initial application for disability retirement is denied, you may reapply for disability benefits, but your disability claim will be reconsidered only if you present new medical evidence, that was not available at the time of your initial application, of a medical condition that existed before you terminated employment covered under the Florida Retirement System. Your reapplication for disability retirement will be reviewed to determine if new information has been submitted. 25