FROM: Barbara Hannah, Chief Counsel
SUBJECT: Procedures for Disability Retirement and Formal Hearings
RECOMMENDATION:
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Recommend that the Board approve and adopt updates to the Procedure for Disability Retirement and Formal Hearings.
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BACKGROUND:
The SBCERA Board adopted the Procedures for Disability Retirement Application and Formal Hearings (“Rules”) to govern the disability retirement process. On September 7, 2023, the Board approved changes to the Rules. Subsequent to that approval, staff identified additional areas that would benefit from clarification. As such, staff is bringing another set of proposed redlined changes to the Rules for the Board’s consideration.
Attached as Exhibit A is a redlined version of the Rules which incorporates the following proposed changes:
1. Rule 5 (c)- Timely Applications - Lack of Information.
Government Code section 31722 prescribes the requirements to file a timely application. (See Rule 5(a) for the requirements.) However, if there is a delay in filing a timely application, such delay could potentially prejudice the Board’s ability to make a determination on the Application either due to the lack of information or availability of medical records because of the passage of time. Where a member has delayed filing an Application or there is a lack of information (e.g., no available medical records) to support the claim, such cases will be referred to a hearing officer as required by Rule 5(e). The proposed change to Rule 5(c) provides clarity that a delay could result in the Application being rejected and referred to a formal hearing on the issue of whether the Application is timely.
2. Rule 7B.1 - Nonservice-Connected Disability Retirement
The proposed new Rule carves out a path for processing a nonservice-connected disability retirement application. The change will likely shorten the length of time between the date of application and the Board’s determination. In addition, as part of the proposed change, SBCERA will utilize the services of a Medical Advisor to provide a recommendation based on the Medical Advisor’s review of the Application, including all medical records and relevant documents.
3. Rule 8 - Disability Retirement Consultation
In order to ensure the security of member information, Applicants are encouraged to use secure methods, such as facsimile, in person drop-off or mySBCERA to transmit documents to SBCERA. The proposed change incorporates the secure methods mentioned herein.
4. Rule 10 and 11 - Board Administrative Action and Formal Hearings
The proposed change incorporates an additional administrative review option, specifically a referral by the Board to a fact-finding administrative review. The change also requires that staff will assign a hearing officer to conduct the proceedings.
5. Rule 16 - Representation
The proposed change permits a person with authority under a Power of Attorney and/or Conservatorship to assist an Applicant in completing any required forms during the proceedings.
6. Rule 33(k) -Dismissal For Lack of Prosecution
The proposed deleted portion referring to Benefits Policy No. 025 conflicts with the requirement stated in the Policy, specifically that disability benefit appeal should be governed by the Rules and not Benefits Policy No. 025.
Non-substantive changes were also incorporated to provide clarity.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
STAFF CONTACT:
Barbara Hannah
David Lantzer
ATTACHMENTS:
Exhibit A: Proposed Redlined Procedures for Disability Retirement and Formal Hearings