Disability Benefits for Special Service Members Protection Against the Unexpected

Special Service Disability Benefits

Eligibility

To be eligible for Special Service disability benefits, you must meet all of these conditions:

• Terminate employment with all IPERS employers.
• Apply for benefits within 1 year after terminating employment.
• Complete a medical exam by the Medical Board of the University of Iowa. (This requirement can be waived by IPERS.)

Once you have been awarded Special Service disability benefits, you may have to undergo an annual reexamination to determine if your disability still exists.

Benefit Amount

Upon your request, you will receive an estimate of your potential Special Service disability benefits. The amount of those benefits depends on whether IPERS determines your disability to be an ordinary disability or an in-service disability. You may receive up to 6 months of retroactive payments for the time when IPERS is determining whether you have a disability, but when you have not yet begun receiving Special Service disability benefits. You choose how you want your benefit to be paid to you from various benefit payment options. See the "For Members Retiring" brochure for more information about available forms of payment.

Ordinary Disability

An ordinary disability means a permanent disability, resulting in mental or physical incapacity that stops you from performing the assigned duties of your job. An ordinary disability does not occur on the job.

Annual ordinary disability benefits equal one of the following:

• 50 percent of your highest 3-year average salary.
• The amount of retirement benefits earned at the time of your disability.

In-Service Disability

An in-service disability means a total and permanent incapacity resulting from an on-the-job injury, disease, or exposure that occurred at a specific time and place and prevents you from performing your job.

Annual in-service disability benefits equal one of the following, whichever is more:

• 60 percent of your highest 3-year average salary.
• The amount of the retirement benefit you earned at the time of your disability, without reduction for retiring before normal retirement age.

Benefit Offsets

Your Special Service disability benefits may be offset, or reduced, by other disability-related payments you receive for the same disability, including benefits from:

• Social Security.
• Long-term disability insurance.
• Workers’ compensation.
• Unemployment insurance.
• Employer-paid disability plans, programs, or policies.
• Other laws.

If you receive these other disability-related payments as a lump-sum payment, IPERS will calculate a monthly benefit offset.

You will need to provide complete copies of your state and federal tax returns annually. IPERS reviews these returns to determine if offsets apply to your Special Service disability benefits based on the income you declared on the tax returns. If you cannot provide proof of your earnings, your disability benefits will be suspended.

If You Return to Work After Benefits Begin

If you return to IPERS-covered employment after beginning to receive Special Service disability benefits, benefits will stop immediately. If you return to non-IPERS-covered employment, benefits may be reduced according to a formula that includes earnings adjusted for health care coverage for you and your dependents.