Disability Benefits
From Wikipension
Many state retirement systems offer benefits for disabled workers. In July 2011 NASRA conducted a survey on the provision of disability benefits which received responses from 47 systems in 36 states.
Over the years states have made changes to the laws which cover disability retirement. The National Conference of State Legislatures (NCSL) chronicles these changes by year, and NASRA compiles them by subject.
Line of Service Disability Benefits
Some states offer certain employee groups long-term disability benefits for disabilities incurred in the line of service. Benefit offerings vary depending on factors such as
- Employees covered;
- Definition of "line of service" disability;
- Disability benefit formula; and
- Disability benefit duration
In February 2012 NASRA conducted a survey on long-term, line-of-service disability benefits which received 24 responses from 23 states.
Research on Disability Retirement
Why do State Disability Application Rates Vary Over Time?, Center for Retirement Research, January 2012
- The brief's key findings are:
- Application rates for federal Disability Insurance (DI) have risen since the late-1990s.
- The economy is a key driver; rising unemployment and declining labor force participation lead to higher DI application rates.
- Interestingly, states with strict health insurance regulations have lower application rates, a finding that merits further exploration.
What Explains Variation in Disability Application Rates Across States?, Center for Retirement Research, January 2012
- Social Security Disability Insurance (SSDI) applications and benefit receipts vary greatly by state, which has led to concerns about potential inconsistencies in the way that states apply disability standards. This possibility has prompted numerous Congressional hearings and reports, and led the Social Security Advisory Board to express concern about the Social Security Administration’s ability to disentangle the potential causes. This brief, using a longer time period and more comprehensive list of variables than other studies, explores the extent to which health, demographic, and employment characteristics – as well as state policies or politics – explain the variation across states...
Disability Benefit Provisions
Source: Public Fund Survey
| Plan | LTD Vesting Period In-service (years) | LTD Vesting Period Out-of-service (years) | Long-Term Disability Benefit In-service | Long-Term Disaability Benefit Out-of-service |
| Alaska PERS | 0 | 5 | 40% of pay at time of disablement | based on service retirement |
| Alaska Teachers | 5 | 5 | 50% of pay at time of disablement, plus 10% for each dependent child up to 4 | 50% of pay at time of disablement, plus 10% for each dependent child up to 4 |
| Alabama Teachers | 10 | 10 | based on service retirement | based on service retirement |
| Alabama ERS | 10 | 10 | based on service retirement | based on service retirement |
| Arkansas Teachers | 5 | 5 | Same as service retirement | Same as service retirement |
| Arkansas PERS | 5 | 5 | based on service retirement | based on service retirement |
| Arizona SRS | 0 | 0 | Two-thirds of pay at time of disablement | Two-thirds of pay at time of disablement |
| Arizona Public Safety Personnel | 0 | 0 | Greater of 50% of salary or service retirement | Based on service retirement, reduced for service under 20 years |
| Phoenix ERS | 0 | 10 | based on normal retirement benefit with a minimum of 15% of final average salary | based on normal retirement benefit |
| San Francisco City & County | 0 | 5 | 50% of pay | 50% of pay |
| LA County ERS | 0 | 5 | greater of 50% of pay at time of disablement or normal retirement benefit | based on service retirement projected to age 65, with the factor reduced to 1.5%. Benefit for public safety personnel is somewhat higher |
| Contra Costa County | 0 | 10 | 40% FAS plus 10% FAS for each minor child up to three | 40% FAS plus 10% FAS for each minor child up to three |
| San Diego County | 0 | 5 | greater of 50% of FAS or normal retirement benefit | 1.8% for each year of service x FAS |
| California Teachers | 5 | 5 | 50% of pay at time of disablement plus 10% for each dependent child, up to an additional 40% | 50% of pay at time of disablement plus 10% for each dependent child, up to an additional 40% |
| California PERF | 5 | 5 | based on service retirement with a multiplier of 1.8% | based on service retirement with a multiplier of 1.8% |
| Colorado Municipal | 5 | 5 | Based on service retirement; plan also provide a short-term disability benefit up to 22 months at 60% of pre-disability earnings | Based on service retirement; plan also provide a short-term disability benefit up to 22 months at 60% of pre-disability earnings |
| Colorado Fire & Police Statewide | N/A | N/A | If member is totally disabled, they receive 70% of base salary. Occupational disability yields 50% of salary | If member is totally disabled, they receive 70% of base salary. Occupational disability yields 50% of salary |
| Colorado State | 5 | 5 | Based on service retirement; plan also provide a short-term disability benefit up to 22 months at 60% of pre-disability earnings | Based on service retirement; plan also provide a short-term disability benefit up to 22 months at 60% of pre-disability earnings |
| Denver Public Schools | N/A | N/A | N/A | N/A |
| Denver Employees | 0 | 5 | Based on the higher of 20 years credited service or actual service plus 10 years | 75% of the benefit calculated for an on-the-job disability |
| Colorado Affiliated Local | N/A | N/A | If member is totally disabled, they receive 70% of base salary. Occupational disability yields 50% of salary | If member is totally disabled, they receive 70% of base salary. Occupational disability yields 50% of salary |
| Colorado School | 5 | 5 | Based on service retirement; plan also provide a short-term disability benefit up to 22 months at 60% of pre-disability earnings | Based on service retirement; plan also provide a short-term disability benefit up to 22 months at 60% of pre-disability earnings |
| Connecticut SERS | 0 | 10 | based on normal service retirement projected to age 65 | based on normal service retirement projected to age 65 |
| Connecticut Teachers | 0 | 5 | based on normal retirement, with a minimum of 15% of FAS and a maximum of 50% | based on normal retirement, with a minimum of 15% of FAS and a maximum of 50% |
| DC Police & Fire | 0 | 5 | The Board uses a formula that calculates the percentage of disability experienced by the member, multiplied by 70%, then multiplied by the salary at the time of disablement. The minimum benefit is 40% of pay | The Board uses a formula that calculates the percentage of disability experienced by the member, multiplied by 70%, then multiplied by the salary at the time of disablement. The minimum benefit is 40% of pay |
| DC Teachers | 5 | 5 | N/A | N/A |
| Delaware State Employees | 5 | 5 | Normal service benefit | Normal service benefit |
| Florida RS | 0 | 8 | minimum of 42% of FAS; minimum of 65% for public safety personnel | greater of 25% or normal retirement benefit |
| Georgia Teachers | 10 | 10 | based on service credit | based on service credit |
| Georgia ERS | 13.3 | 13.3 | for members with 13.3 years of service but less than 18 years of service, 75% of normal retirement benefit had had the member continued to work until age 60; allowance rises for members with higher levels of service | for members with 13.3 years of service but less than 18 years of service, 75% of normal retirement benefit had had the member continued to work until age 60; allowance rises for members with higher levels of service |
| Hawaii ERS | 0 | 10 | equivalent to pension benefit accrued to-date, plus return of member contributions and accrued interest | based on service retirement, with a minimum of 25% of FAS |
| Iowa PERS | 4 | 4 | Based on service retirement | Based on service retirement |
| Idaho PERS | 0 | 5 | service retirement projected to normal retirement eligibility | service retirement projected to normal retirement eligibility |
| Illinois Teachers | 0 | 3 | 60% of pay | 40% of pay |
| Illinois Municipal | 1 | 1 | 50% of pay at time of disablement | 50% of pay at time of disablement |
| Illinois SERS | 0 | 1.5 | 75% of FAS | 50% of pay at time of disablement |
| Illinois Universities | 2 | 2 | 50% of pay at time of disablement | 50% of pay at time of disablement |
| Chicago Teachers | 0 | 10 | 75% of pay at time of disablement | 1.67% of average annual salary for each year of service |
| Indiana PERF | 5 | 5 | based on service retirement | based on service retirement |
| Indiana Teachers | 5 | 5 | Based on service retirement | $125 per month plus $5 for each year of service credit above five years |
| Kansas PERS | 0 | 0 | Two-thirds of pay at time of disability less Social Security, workers\' compensation, etc. | Two-thirds of pay at time of disability less Social Security, workers\' compensation, etc. |
| Kentucky Teachers | 5 | 5 | Based on service retirement, with a minimum benefit of 60% of pay | Based on service retirement, with a minimum benefit of 60% of pay |
| Kentucky ERS | 0.083 | 5 | Based on service retirement, with a floor of 25% of pay, plus 10% of salary for each dependent child for up to 4 children | Based on service retirement |
| Kentucky County | 0.083 | 5 | Based on service retirement, with a floor of 25% of pay, plus 10% of salary for each dependent child for up to 4 children | Based on service retirement |
| Louisiana Teachers | 5 | 5 | Based on service retirement, not to exceed 50% of salary, but with a minimum of the lesser of 40% of the state minimum teaching salary or 75% of final average salary | Based on service retirement, not to exceed 50% of salary, but with a minimum of the lesser of 40% of the state minimum teaching salary or 75% of final average salary |
| Louisiana SERS | 10 | 10 | based on service retirement | based on service retirement |
| Massachusetts SERS | 0 | 10 | 72% of salary at time of disablement plus accumulated contributions with interest, not to exceed 75% of salary, plus $48 per month per dependent child | based on the benefit the disabilitant would receive at age 55 |
| Massachusetts Teachers | N/A | N/A | N/A | N/A |
| Maryland PERS | 0 | 5 | Annuity provided by accumulated contributions, plus two-thirds of FAS | same as service retirement benefit, with a minimum of 25% of FAS |
| Maryland Teachers | 0 | 5 | Annuity provided by accumulated contributions, plus two-thirds of FAS | Service retirement projected to age 62 |
| Maine Local | 0 | 0 | 59% of FAS | 59% of FAS |
| Maine State and Teacher | 0 | 0 | Two-thirds of FAS | Two-thirds of FAS |
| Michigan Public Schools | 0 | 10 | based on normal service retirement, with a minimum of 10 years of service | based on normal service retirement |
| Michigan SERS | 0 | 10 | $6000 annually; recomputed at age 60 to normal retirement benefit | based on normal service retirement |
| Michigan Municipal | 0 | 10 | Based on normal retirement benefit, with a minimum of 25% | based on normal service retirement |
| Minnesota Teachers | 3 | 3 | based on service retirement | based on service retirement |
| Duluth Teachers | 3 | 3 | Equal to service retirement benefit at time of disablement | Equal to service retirement benefit at time of disablement |
| St. Paul Teachers | 3 | 3 | based on service retirement at time of disability with no reduction for early retirement | based on service retirement at time of disability with no reduction for early retirement |
| Minnesota PERF | 0 | 3 | Based on service retirement | Based on service retirement |
| Minnesota State Employees | 3 | 3 | Based on service retirement | Based on service retirement |
| Missouri DOT and Highway Patrol | 0 | 0 | 60% of salary at time of disability | based on service retirement |
| Missouri Local | 0 | 5 | Based on service projected to age 60 | Based on service retirement benefit |
| Missouri PEERS | 5 | 5 | based on 90% of normal service retirement benefit | based on 90% of normal service retirement benefit |
| St. Louis School Employees | 5 | 5 | based on normal service retirement | based on normal service retirement |
| Missouri Teachers | 5 | 5 | greater of 90% of service retirement benefit or 50% of final year\'s salary | greater of 90% of service retirement benefit or 50% of final year\'s salary |
| Missouri State Employees | 0 | 0 | 60% of pay at time of disablement | 60% of pay at time of disablement |
| Mississippi PERS | 0 | 4 | Equal to service retirement, with a minimum of 50% of FAS | 40% of FAS, and an additional 10% for each of up to 2 dependent children, up to age 65; thereafter, the greater of service retirement up to 40% of FAS, or the member\'s accrued balance |
| Montana Teachers | 5 | 5 | based on normal service retirement with a minimum benefit of 25% salary at time of disablement | based on normal service retirement with a minimum benefit of 25% salary at time of disablement |
| Montana PERS | 5 | 5 | based on service retirement | based on service retirement |
| North Carolina Local Government | 5 | 5 | based on service retirement with service projected to normal retirement | based on service retirement with service projected to normal retirement |
| North Carolina Teachers and State Employees | 5 | 5 | 65% of FAS, offset by Social Security, workers comp, et al | 65% of FAS, offset by Social Security, workers comp, et al |
| North Dakota PERS | 0.5 | 0.5 | 25% of FAS | 25% of FAS |
| North Dakota Teachers | 1 | 1 | based on service retirement with service projected to 20 years | based on service retirement with service projected to 20 years |
| Nebraska Schools | N/A | N/A | based on normal service retirement | based on normal service retirement |
| New Hampshire Retirement System | 0 | 10 | Service retirement if age 60, otherwise 50% of FAS for general employees and teachers; greater of 2/3 of FAS or service retirement for police and fire | Service retirement if age 60, otherwise 1.5% of FAS, with a minimum of 25% for general employees and teachers; service retirement with a minimum of 25% of FAS for police and fire |
| New Jersey Teachers | 0 | 10 | 72.7% of FAS | 43.6% of FAS |
| New Jersey Police & Fire | 0 | 4 | Greater of two-thirds of salary at time of disablement or normal service retirement | based on service retirement with multiplier of 1.5%, and a minimum benefit of 40% of FAS; 50% if 20 or more years and employer initiates the application |
| New Jersey PERS | 0 | 10 | based on normal service retirement with a minimum of 72.7% of FAS | based on normal service retirement with a minimum of 43.6% of FAS |
| New Mexico Teachers | 10 | 10 | 2% of FAS with a minimum of the smaller of one-third of FAS or 2% of FAS with service projected to age 60 | 2% of FAS with a minimum of the smaller of one-third of FAS or 2% of FAS with service projected to age 60 |
| New Mexico PERF | 0 | 5 | based on service retirement projected to normal retirement eligibility | based on service retirement at time of disability |
| Nevada Regular Employees | 5 | 5 | Benefit is based on service retirement | Benefit is based on service retirement |
| Nevada Police Officer and Firefighter | 5 | 5 | Benefit is based on service retirement | Benefit is based on service retirement |
| New York City Teachers | 0 | 10 | greater of one-third of FAS or normal retirement benefit | greater of one-third of FAS or normal retirement benefit |
| New York City ERS | 0 | 0.5 | greater of one-third of salary at time of disablement or service retirement based on 1.67% multiplier | greater of one-third of salary at time of disablement or service retirement based on 1.67% multiplier |
| NY State & Local ERS | 0 | 10 | One-third of salary at time of disablement | One-third of salary at time of disablement |
| NY State & Local Police & Fire | 0 | 10 | One-third of salary at time of disablement | One-third of salary at time of disablement |
| New York State Teachers | 10 | 10 | based on service retirement | based on service retirement |
| Ohio School Employees | 5 | 5 | Minimum benefit of 30% of FAS, and max of 75%, depending on service | Minimum benefit of 30% of FAS, and max of 75%, depending on service |
| Ohio Teachers | 5 | 5 | Vested members who joined before 7/30/92 qualify for a benefit based on service and salary, with a minimum of 30% and a maximum of 75% of FAS. Vested members joining after 7/29/92 receive a normal retirement benefit with a minimum of 45% and a 75% max | Vested members who joined before 7/30/92 qualify for a benefit based on service and salary, with a minimum of 30% and a maximum of 75% of FAS. Vested members joining after 7/29/92 receive a normal retirement benefit with a minimum of 45% and a 75% max |
| Ohio Police & Fire | N/A | N/A | N/A | N/A |
| Ohio PERS | 5 | 5 | Based on service and FAS, with a floor of 45% and a max of 60%. There is no vesting requirement for law enforcement employees who experience an in-service disability | Based on service and FAS, with a floor of 45% and a max of 60% |
| Oklahoma Teachers | 10 | 10 | based on service retirement | based on service retirement |
| Oklahoma PERS | 8 | 8 | Must meet Social Security standard of disability; benefit is based on normal service retirement, without actuarial reduction | Must meet Social Security standard of disability; benefit is based on normal service retirement, without actuarial reduction |
| Oregon PERS | 0 | 10 | based on service retirement projected to age 58 | based on service retirement projected to age 58 |
| Pennsylvania State ERS | 5 | 5 | based on normal service retirement benefit | based on normal service retirement benefit |
| Pennsylvania School Employees | 5 | 5 | Based on service retirement | Based on service retirement |
| Rhode Island ERS | 0 | 5 | for total disability: two-thirds of salary at time of disablement; for partial disability and member is able to work: 50% of salary. Both benefits are subject to annual review | based on normal service retirement, with a minimum service level of ten years |
| Rhode Island Municipal | 0 | 5 | N/A | N/A |
| South Carolina Police | 0 | 5 | based on service retirement projected to age 55 | based on service retirement projected to age 55 |
| South Carolina RS | 0 | 5 | based on service retirement projected to age 65, with an actuarial reduction | based on service retirement projected to age 65, with an actuarial reduction |
| South Dakota PERS | 0 | 3 | 50% of highest annual salary over previous 3 years | 50% of highest annual salary over previous 3 years |
| TN State and Teachers | 0 | 5 | 90% of the benefit the member would receive under service retirement; if the disabilitant has less than 20 years of service credit, service is projected to age 60 or 20 years, whichever comes first. Actual and projected service can not exceed 20 years | 90% of the benefit the member would receive under service retirement; if the disabilitant has less than 20 years of service credit, service is projected to age 60 or 20 years, whichever comes first. Actual and projected service can not exceed 20 years |
| TN Political Subdivisions | 0 | 5 | 90% of the benefit the member would receive under service retirement; if the disabilitant has less than 20 years of service credit, service is projected to age 60 or 20 years, whichever comes first. Actual and projected service can not exceed 20 years | 90% of the benefit the member would receive under service retirement; if the disabilitant has less than 20 years of service credit, service is projected to age 60 or 20 years, whichever comes first. Actual and projected service can not exceed 20 years |
| Texas County & District | 8 | 8 | Sum of member deposits, with interest, and employer-funded credits are converted to a monthly annuity | Sum of member deposits, with interest, and employer-funded credits are converted to a monthly annuity |
| Texas Teachers | 0 | 0 | Disabled members with at least 10 years of service qualify for a service retirement benefit with a minimum of $150 per month. Disabled members with less than 10 years of service receive $150 per month; payments continue for the duration of the disability | none |
| Texas LECOS | 0 | 10 | Same as service retirement benefit, with a minimum benefit of 50% | Same as service retirement benefit |
| Texas ERS | 0 | 10 | Same as service retirement, with a minimum of 35% of pay time of disablement | Same as service retirement benefit |
| Texas Municipal | 0 | 0 | Members unable to perform the duties of their position, or one of similar requirements, may retire. Minimum benefit of repayment of contributions via annuity or refund | Members unable to perform the duties of their position, or one of similar requirements, may retire. Minimum benefit of repayment of contributions via annuity or refund |
| City of Austin ERS | 0 | 5 | based on normal retirement benefit at time of disability | based on normal retirement benefit at time of disability |
| Houston Firefighters | 0 | 10 | 75% of average monthly salary | greater of 25% of average monthly salary , plus 2.5% of average monthly salary for each year of service to a maximum of 50% of pay, or service retirement |
| Utah Noncontributory | 0 | 0, 5 for firefighters hired before 7/1/11 | 100% of regular salary if meets standard of "disability due to external force or violence, except firefighters hired before 7/1/11, who receive 50% with the external force or violence standard | Two-thirds of pay, except firefighters hired before 7/1/11, who receive half-pay |
| Fairfax County Schools | N/A | N/A | N/A | N/A |
| Virginia Retirement System | 0 | 0 | 60% of pay at time of disablement | 60% of pay at time of disablement |
| Vermont State Employees | 0 | 5 | based on service retirement projected to normal retirement eligibility | based on service retirement, with a maximum of 25% of FAS |
| Vermont Teachers | 5 | 5 | based on normal service retirement, with a minimum of 25% of FAS | based on normal service retirement, with a minimum of 25% of FAS |
| Washington School Employees Plan 2/3 | 0 | 0 | based on service retirement, reduced for members under age 55 | based on service retirement, reduced for members under age 55 |
| Washington LEOFF Plan 2 | 0 | 0 | based on service retirement, actuarially reduced for age under 53 | based on service retirement, actuarially reduced for age under 53 |
| Washington LEOFF Plan 1 | 0 | 0.5 | One-half of FAS plus 5% for each each child, to a maximum of 60% | One-half of FAS plus 5% for each each child, to a maximum of 60% |
| Washington Teachers Plan 2/3 | 0 | 0 | based on service retirement, reduced for members under age 55 | based on service retirement, reduced for members under age 55 |
| Washington Teachers Plan 1 | 5 | 5 | based on service retirement | based on service retirement |
| Washington PERS 2/3 | 0 | 0 | 2.0% of FAS for each year of service, actuarially reduced for age under 65 | 2.0% of FAS for each year of service, actuarially reduced for age under 65 |
| Washington PERS 1 | 0 | 5 | Lesser of two-thirds of FAS or $350 per month | based on service retirement, reduced for each year of age under 55 |
| Wisconsin Retirement System | 0 | 0.5 | based on normal retirement with service projected to earliest normal retirement age | 40% of FAS |
| West Virginia PERS | 0 | 10 | based on normal retirement benefit | based on normal retirement benefit, with a minimum of 50% of FAS |
| West Virginia Teachers | 10 | 10 | N/A | N/A |
| Wyoming Public Employees | 10 | 10 | Equal to service retirement | Equal to service retirement |
