Disability Benefits Under the State Retirement Systems
Ohio PERS members who participate in the Traditional Pension and Combined Plans are eligible for one of two disability programs - the original plan or the revised plan. Employees who had contributions on deposit with OPERS on July 29, 1992, had a one-time opportunity to select coverage under one of these programs. Those employees hired after July 29, 1992, are covered only under the revised plan. Ohio PERS members who participate in the Member-Directed Plan are not eligible for disability benefits through OPERS. Under the Member-Directed Plan, the vested portion of your individual account would be available through a refund after your OPERS-covered employment is terminated.
The following is a summary of the common features of the two disability programs under the Traditional Pension and Combined Plans; the differences also are defined. If you wish to apply for a disability benefit through the Ohio Public Employees Retirement System, please contact Kay Pyles in the Kent State University - Benefits Office at 330-672-3107. Ms. Pyles will assist you with this process or you may work directly with OPERS at 1-800-222-PERS.
Eligibility
Common Features
- As a member participating in the Traditional Pension or Combined Plan, you must have at least five years of contributing service credit in the Plan. For members in the law enforcement division of the Traditional Pension Plan who become disabled due to an on-duty illness or injury, disability coverage is available immediately after membership is established.
- You are no longer on the payroll because of a presumably permanent disabling condition, either mental or physical, which prevents you from performing your job. You are not eligible for a disability benefit due to a temporary illness or temporary disability. The disability need not have occurred "on the job"; a majority of the persons receiving a disability benefit became disabled as a result of disease or an "off the job" accident.
- No more than two years have passed since contributing service in the Plan has terminated, unless at the end of the two-year period you were disabled and unable to file an application as proven by medical records.
- You must not be receiving a retirement benefit under any of the OPERS retirement plans.
Different Features
Original Plan
- You must file an application for disability before age 60.
Revised Plan
- You may file an application for disability at any age.
Application
Common Features
If you are participating in the Traditional Pension and Combined Plans, you are responsible for filing the Application for a Disability Benefit along with reports by your employer and personal physician. After the three forms (DR-1, DR-3, DR-4) and proof of date of birth have been received, you will be required to have a medical examination by a physician selected by the System. The fee for the examination is paid by the System.
Benefit Amount
Common Features
If the Board of Trustees approves your application, the disability benefit is effective the first day of the month following your service termination, provided you otherwise qualify. Prior to approval of a disability benefit, members participating in the Combined Plan must agree to transfer both their employer contributions and their individual OPERS account to the Traditional Pension Plan for the payment of benefits. For purposes of calculating the benefit, all service credit earned under the Combined Plan is treated as if the credit was earned or purchased in the Traditional Pension Plan.
Different Features
Original Plan
- The amount of disability allowance is based on your final average salary (FAS) and years of service with OPERS, plus the length of time between the effective date of the disability benefit and age 60. For example, if you are 56 when granted a disability benefit and you have 16 years of service credit, 20 years of service credit will be used in determining the amount of allowance instead of 16 years.
- The disability benefit cannot be less than 30 percent, or exceed 75 percent of your final average salary.
- The benefit payment is fully taxable until minimum retirement age, at which time a specified dollar amount, representing the return of taxed contributions, is provided on a monthly tax-free basis. Law enforcement members participating in the Traditional Pension Plan who are disabled due to an on-duty injury or illness receive 30 percent of their benefit payments tax-free.
Revised Plan
- The benefit is based on the FAS and years of service with OPERS, with no early retirement reductions, but cannot be less than 45 percent or exceed 60 percent of FAS.
- The benefit is fully taxable as long as it is received. For a law enforcement member participating in the Traditional Pension Plan who is disabled due to an on-duty injury or illness, 45 percent of the benefit payment is excludable from taxable income.
Continuing Benefits and Termination
Common Features
- A disability benefit terminates if you are no longer disabled, if you return to public service, if you choose to begin receiving an age and service retirement benefit, at your death, or at your request.
- You may be required to have medical examinations at least once a year. If it is determined that you are no longer disabled, your benefit will be terminated within three months. If you received a disability benefit for less than five years, OPERS will certify to your previous employer that you are no longer incapable of returning to work. At that time, your employer should restore you to your previous, or similar, position and salary unless you were dismissed or resigned in lieu of dismissal for dishonesty, misfeasance, malfeasance or conviction of a felony.
- If you return to public service and contribute to the Traditional Pension Plan for two years, you receive service credit for the period of time you received a disability benefit.
- A return to employment with a private employer may affect continuing receipt of a disability benefit.
- Health care coverage is effective the first of the month following the OPERS Board's approval of your application, provided your public service has terminated.
- An annual cost of living adjustment will be paid.
Different Features
Original Plan
The disability benefit is payable for life, but will terminate if one of the events listed above occurs. In this case, an existing age and service retirement benefit under the Traditional Pension Plan may be available if you are otherwise eligible.
Revised Plan
- The benefit is payable for only a definite period of time, depending on your age at the effective date of your benefit.
Age at Effective Benefit Date of Disability | Period Benefit Payable |
younger than 60 | until age 65 |
60-61 | 60 months |
62-63 | 48 months |
64-65 | 36 months |
66-68 | 24 months |
69 or older | 12 months |
- When the disability benefit ends, you have the opportunity to apply for an age and service retirement benefit under the Traditional Pension Plan or to apply for a refund of your account, which is not reduced by the amount of disability benefits paid. The amount would be the greater of a) 2.2 percent of your FAS multiplied by your years of service (contributing and disability), not to exceed 45 percent of FAS; or b) the regular or law enforcement benefit calculation, using only your years of contributing service. Under this benefit: a) an annual 3 percent cost of living adjustment calculated from the beginning of the disability period will be paid; b) a specified dollar amount each month, representing the return of taxed contributions, is tax-free; c) you select a plan of payment and designate a beneficiary to receive any benefits which may be due at your death; and d) health care coverage is provided if you meet the ten years total service credit eligibility requirement, which would include the years during which you received a disability benefit.
Appeal of Denial or Termination of Disability Benefits
You have a right to appeal the OPERS Board's denial of your application for, or termination of, your disability benefits. If you wish to appeal, you must file written notice of your intent to appeal and must supply additional objective medical evidence, at your expense, to the Retirement System as the basis of your appeal.
Faculty members paying into STRS may apply for disability benefits by contacting STRS directly at 1-888-227-7877.