FROM: Barbara Hannah, Chief Counsel
SUBJECT: Disability Retirement Survey
RECOMMENDATION:
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Review Disability Retirement Survey regarding other retirement systems’ disability retirement process including SBCERA’s process.
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BACKGROUND:
Staff conducted a disability retirement survey regarding other retirement systems’ disability retirement process and the documentation required to apply. The purpose of the survey is to provide a comparison of all systems, including SBCERA and determine where SBCERA is in line with other systems or areas in which SBCERA may want to consider adjusting its procedures and documentation. SBCERA surveyed 38 retirement systems that are members of California Association of Public Retirement Systems (CALAPRS) and have a disability retirement process. Out of the 38 retirement systems, SBCERA received responses from 22 systems.
As part of this survey, staff found that SBCERA’s process is in line with other public retirement systems. For example, SBCERA requires a Physician’s Report to be completed as part of the Application. Through the results, we determined that this is standard practice among all retirement systems, specifically requiring on the Physician’s Report a statement by a physician that the member is permanently incapacitated (CERL systems) or a statement of impairment (non-CERL systems). In addition, all the systems require the report to be in the form provided by the system. Another notable similarity among the systems is that an application must be timely in order to move forward with processing the application. If untimely, the application is rejected.
The systems do vary when it comes to the use of an Independent Medical Examiner (IME). Some systems only send to an IME where it is deemed to be necessary or at the request of the employer. Here, SBCERA’s procedures require all applicants applying for service-connected disability retirement be sent to an IME. Another area where the process is dissimilar is the use of a medical advisor and the role of the medical advisor if the system does utilize the service of one. For example, for systems that use a medical advisor, the role varies between providing a written report or being an advisor during closed session without submitting a written report.
Furthermore, regarding a determination of the application, there are two systems where an application is referred to an administrative hearing if the recommendation is to deny in whole or in part. In other words, prior to the matter being considered by the full Board, either a disability committee or staff makes the determination to send the denied application to a hearing.
Overall, based on the responses, SBCERA’s disability retirement process is in line with most the other public retirement systems.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
STAFF CONTACT:
Barbara Hannah
ATTACHMENTS:
Exhibit A: Disability Retirement Survey