FROM: Barbara Hannah, Chief Counsel
SUBJECT: Benefits Policy No. 036 (Disability Retirement Effective Date)
RECOMMENDATION:
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Recommend that the Board approve and adopt Benefits Policy No. 036 (Disability Retirement Effective Date).
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BACKGROUND:
The purpose of Benefits Policy No. 036 (Disability Retirement Effective Date) is to provide a clear framework for evaluating delayed disability retirement applications under the County Employees Retirement Law, specifically Government Code section 31724, to determine the effective date of a member’s disability retirement benefit. Benefits Policy No. 036 ensures that a member who is entitled to receive an earlier effective date is not unjustly denied the earlier effective date due to delays caused by an administrative oversight or the inability to determine the permanency of their incapacity until after the last day of regular compensation. In addition, the Policy formalizes the process for assessing circumstances to determine entitlement to an earlier effective date and outlines procedural steps to ensure consistent and fair decision-making with regard to a member’s application.
A. Exceptions and Circumstances
There are two primary exceptions in accordance with Government Code section 31724 for a delayed application that would permit the Board to grant an earlier effective date other than the date of application as the effective date.
1. Administrative Oversight
Section II. A. covers circumstances where the delay in filing an application is due to errors, such as a failure to inform the member of their right to apply for a disability retirement, lost paperwork, incorrect information provided, or failure to process necessary forms.
2. Inability to Ascertain Permanency of Incapacity
Section II. B. accounts for cases where, despite diligent medical care and evaluation, the member could not reasonably determine their incapacity was permanent until the day after the last day they received regular compensation. Examples include prolonged treatment, progressive or degenerative condition, delayed diagnosis, or mental impairments that might take time to conclusively establish that incapacity is permanent.
By recognizing these exceptions and ascribing circumstances to define the requirements, Benefits Policy No. 036 aligns with the legislative intent to award an earlier effective date where factors or circumstances were beyond the control of the member that existed after the last day for which the member received regular compensation.
B. Delegation of Authority to the CEO
To enhance efficiency and reduce processing delays, Benefits Policy No. 036 delegates authority to the Chief Executive Officer (CEO) to make a determination when the facts provided are unclear whether the delay in filing the application, entitling the member to the earlier effective date, was due to circumstances out of the control of the member. Here the CEO may:
• Request additional information.
• Assess whether the delay qualifies under an administrative oversight or incapacity related exceptions.
• Refer to the Board where the facts remain inconclusive or the evidence does not support an earlier effective date.
Overall, Benefits Policy No. 036 promotes fairness and improves clarity and consistency when determining whether the member is entitled to an earlier effective date other than the date of application as the effective date.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
STAFF CONTACT:
Barbara Hannah
David Lantzer
ATTACHMENTS:
Exhibit A: Benefits Policy No. 036 (Disability Retirement Effective Date)