DISABILITY RETIREMENT OVERVIEW Shari

Reasonable Accommodation
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Workers’ Compensation vs. Disability Retirement
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Workers’ Compensation (Form of Vocational Rehabilitation)
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In Worker’s Pre-Injury Job Class (Modified Work)
In New Job Class (Alternative Work)
Disability Retirement
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In Applicant’s Pre-Injury job class, therefore Applicant not
Permanently Incapacitated
In new job class, but only after found to be Permanently Incapacitated
(re-employment plan pursuant to Section 31725.65)
Employee working within Reasonable Accommodation

Workers’ Compensation
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Within worker’s job class (Modified Work)
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Employer may provide modification to applicant’s assignment or offer
another assignment in job class

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Written offer
If worker accepts offer, and accommodation is successful, a disability
retirement application is avoided
In new job class (Alternative Work)
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Employer provides permanent accommodation in new job class

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Written offer to worker
Worker either returns to work or may file a disability application
Employee working within Reasonable Accommodation (cont’d)
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Disability Retirement
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In Applicant’s Pre-Injury job class, Applicant not considered
Permanently Incapacitated
In new job class, but only after found to be Permanently Incapacitated
(re-employment plan pursuant to Section 31725.65)
Board of Retirement (BOR) has fiduciary duty to independently
investigate and determine availability of reasonable accommodation
BOR decision not dependent on whether employer has actually
offered accommodation to applicant
BOR is a separate legal entity, empowered to make its own finding of
fact
Employee working within Reasonable Accommodation (cont’d)
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Disability Retirement

If BOR determines reasonable accommodation is available within
applicant’s pre-injury job class:


Applicant Is Not Permanently Incapacitated
Disability Retirement Is Denied
Supplemental Disability Allowance (Salary Supplement)
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Why do we retain disabled employees in County Service?

County Departments face critical budget cuts, layoffs, and hiring
freezes. Salary Supplement is the process of retaining experienced,
disabled employees in County positions.
Supplemental Disability Allowance

Government Codes Sections 31725.5, 31725.6 and 31725.65

Applications are to be treated like any other application; the criteria is
that the applicant must be found disabled from the ORIGINAL position
Also Known as Salary Supplement
The Supplement Disability Allowance is commonly referred to as the
Salary Supplement in LACERA member materials, including the
Summary Plan Descriptions (Plan Books).
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Section 31725.5 - Applies to nonservice-connected
disability retirements only

Section 31725.6 and/or 31725.65 - Applies to
service-connected disability retirements only
Voluntary Demotion

There are two options for Voluntary Demotion:
1.
2.
Demoted to lesser position, lesser salary, and no provisions to
supplement for the pay cut. These cases will have the supplement
start on either the date of application or the date of demotion per
Section 31724.
Demoted to lesser position, with a Y-Rate, assigned at the time of
demotion. Pay stays the same until disability is determined.
Conditions of Supplemental Disability Allowance
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Contingent on:
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The offer of a permanent position with a lower salary schedule
which accommodates the employee’s permanent work restrictions
The acceptance of this position by the employee
Engaging the Process
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The Disability Retirement Services Division works closely with
County Departments’ Human Resource managers and Return to
Work Coordinators to facilitate a better awareness of the Salary
Supplement options
Department’s Responsibilities


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Confirm the employee has applied for disability retirement
benefits with the Salary Supplement
Place the employee on a “Y”-Rate; pending the Board of
Retirement’s action
The employee’s salary remains unchanged during the disability
retirement application process
LACERA’s Responsibilities


Once the Board of Retirement takes
action, the Department is notified and an
effective date for the Salary Supplement
is established
If the application is denied, appeal rights
are not affected
Member’s Future Earnings

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The calculation is based upon the member’s actual earnings at
the time the benefit is granted. The calculation does not allow for
future item raises and cost-of-living increases.
The member can be promoted in the new position career chain.
When the member receives a pay raise, it is reviewed against
the original item number salary and the Salary Supplement is
lowered accordingly. If the new item number salary exceeds the
original position’s salary, the Salary Supplement stops.
SCD Supplemental Disability
Allowance Calculation
Deputy Sheriff I permanently demoted to Dispatcher:
 Previous position monthly salary =
$6,077.36
 NEW position monthly salary =
$3,996.82
 Difference in salary =
$2,080.54
 SCD Supplemental Retirement Allowance = $2,080.54
 SCD Benefit if member retires
(50% final comp) =
$3,038.54