FROM: Barbara Hannah, Chief Counsel
SUBJECT: Update to Procedures for Disability Retirement and Formal Hearings
RECOMMENDATION:
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Recommend that the Board approve and adopt updates to the Procedures for Disability Retirement and Formal Hearings.
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BACKGROUND:
The SBCERA Board adopted the Procedures for Disability Retirement Application and Formal Hearings (“Procedures”) to govern the disability retirement process. The Procedures were last amended on April 3, 2025.
On February 19, 2026, the Committee reviewed the proposed changes and recommended staff consult with San Bernardino County regarding the revisions to Rule 6 to ensure that employers are aware of the legal requirements and implications when an employee is terminated for cause or resigns in lieu of termination. At that meeting, additional edits were proposed to better align the Rule with circumstances under which an employer separates an employee from service. Those revisions have been incorporated into the current draft of Rule 6.
Following the Committee’s review on February 19, 2026, staff has identified additional revisions to the Procedures. These revisions affect Rules 5 (d), 5(e),10A(b)(3), and 13B, and are described in greater detail below.
After review of the Procedures, staff recommends the following updates:
1. Rule 5 (d) - Amending an Application
The proposed revision clarifies that an Applicant may amend a disability application only within ninety (90) days of filing the initial application. After that period, amendments will no longer be accepted, and the application will proceed on the information previously submitted. This change is intended to provide certainty regarding the scope of the application, facilitate timely processing, and ensure that the Board’s review is based on a complete and defined record.
2. Rule 5 (e) - Rejecting Applications
The proposed change revises the process for addressing applications or amendments that do not satisfy the procedural requirements (timely and complete) of the Procedures. Under the current rule, disputes regarding the CEO’s rejection of an application or amendment are referred to a Formal Hearing. The proposed revision removes the requirements and instead provides direct review by the Board. If the Applicant objects to the CEO’s determination, the matter will be presented to the Board, together with the CEO’s recommendation, for a final determination. This change streamlines the review process, reduces administrative costs and delays associated with a Formal hearing, and reserves the Formal Hearing process for disputes involving the merits of a disability retirement claim.
3. Rule 6 - Terminated for Cause or Resigned in Lieu of Termination
Rule 6 applies when a member is terminated for cause or resigns in lieu of termination. Recently, there have been several cases in which a member resigned, but the settlement agreement did not specify whether the resignation was in lieu of termination. In other instances, a member resigned before the disciplinary process was completed, likely to avoid a final determination of termination. In both situations, the record clearly established that the circumstances were tantamount to a dismissal, thereby precluding eligibility for a disability retirement. As currently written, Rule 6 specifically addresses resignation in lieu of clear termination or termination for cause. The recommended revision would close the gap by expressly including other circumstances that are equivalent to a dismissal, such as the following:
• Where there is a settlement agreement, but such agreement is silent as to termination and the record shows that the actions of the employer would have been tantamount to a dismissal.
• Where the Participating Employer serves a notice of intent to terminate.
• Where the employee requests a Skelly hearing or one that is equivalent but then resigns prior to the conclusion of the hearing.
• Where the employee is placed on administrative leave with the employer’s intent to separate the employee for service.
4. Rule 10A - Administrative Review of Initial Hearings
The proposed revision removes an outdated reference to non-disability benefit appeals being processed under the Disability Retirement Procedures. The reference is no longer necessary because non-disability benefits appeals are now governed by the Procedures for Administrative Hearings. The revision clarifies the applicable appeal procedures.
5. Rule 11A - Expedited Administrative Review
The Expedited Review process allows for a determination on a disability retirement application to be made within 120 days from the date the matter is assigned to a hearing officer. Since the inception of this process, SBCERA has been limited to submitting the administrative and medical records without formally framing the Board’s position on the application or identifying the specific issues for the hearing officer to address.
Recently, it was determined that providing only the records, without a written statement outlining SBCERA’s position, the applicable legal standard, or the disputed issues, places SBCERA at a disadvantage. Without this context, the hearing officer may not have a clear understanding of the Board’s determination, the relevant factual disputes, or the legal framework guiding the determination. Accordingly, it is recommended that the process be revised to permit SBCERA to submit a Pre-Hearing Statement, along with a statement of contested issues, summary of documented evidence, and written arguments. The current version of the Rule permits the member to submit an affidavit and declaration. The proposed revision would replace that requirement with the submission of a prehearing statement.
Additionally, the submission due dates for the parties were changed to provide a period of thirty (30) days for each party to submit their Prehearing Statement and any supporting evidence. The Hearing Officer’s due date to submit the proposed recommendations and findings to SBCERA has been changed from 60 days after the assignment to 120 days after the assignment to accommodate the parties’ submission of evidence timeline. Lastly, the Hearing Officer’s jurisdiction for an Expedited Administrative Review proceeding has been changed from 120 days to 180 days.
6. Rule 13B - Formal Hearing - Allegation of New Injury or Disease
The proposed revision clarifies that once a disability retirement application has been referred to a Formal Hearing, the Applicant may not amend the application to add new injuries, diseases, medical conditions, or theories of incapacity. The amendment limits the scope of the Formal Hearing to the conditions and issues that were before the Board when it rendered the determination being appealed, ensuring that the hearing is confined to the review of the Board’s original decision. The change is intended to prevent the expansion of the claims during the appeal process and promote administrative efficiency.
7. Rule 33(j) and (r) - Dismissal for Lack of Prosecution
The proposed edits to Rule 33(j), is added to coincide with the proposed changes in Rule 5 as outlined above.
Additionally, Rule 33(r) edits are made to include that should a party fail to appear at a scheduled Prehearing Conference and/or Formal Hearing the case would be dismissed with prejudice by the Board. This edit is made to include the Prehearing Conference for the fact that due to prior instances where an applicant in pro per agreed to the scheduled prehearing conference date; did not appear at the scheduled hearing date, nor reach out SBCERA to reschedule; and ultimately withdrew the disability retirement application prior to the Formal Hearing date.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
COMMITTEE REVIEW:
This item was reviewed by the Administrative Committee at its February 19, 2026 meeting.
A discussion was held regarding Rule 6 - Terminated for Cause or Resigned in Lieu of Termination and it was determined that SBCERA staff would reach out to County of San Bernardino to discuss the documentation needed in regard to employees who are ineligible to apply for a disability retirement due to resignation in lieu of termination procedures. The Committee deferred approval of this section and requested it be returned to committee for further discussion.
Rule 11 - Expedited Administrative Review was approved as to form, and no further discussion is required for approval of this section.
The Committee approved Rule 11A as presented and recommended further discussion with participating employers regarding Rule 6 with a 3-1 vote.
STAFF CONTACT:
Barbara Hannah
ATTACHMENTS:
Exhibit A: SBCERA Procedures for Disability Retirement Applications and Formal Hearings (Redline)