IPERS Member Handbook

IF YOU RETIRE BECAUSE OF DISABILITY

A vested IPERS member may retire at anytime without an early retirement adjustment if the member qualifies to retire because of disability. See the specific conditions for qualifying for disability below.

A. Disability Benefits for Regular Members

To qualify for disability benefits, you must meet all of the following conditions:

• Be vested.
• Have ended all employment with an IPERS-covered employer.
• Apply for benefits. You must indicate on your application for IPERS retirement benefits that you are retiring because of a disability, or you will not be eligible for this benefit.
• Be receiving federal social security or railroad retirement disability benefits.

See “Retirement” in this handbook for more on the selection of retirement options if you are eligible for disability benefits.

Important: IPERS cannot assist members in obtaining disability benefits from either the Social Security Administration or Railroad Retirement Board.

1. Important Considerations When Applying for Benefits

If you are considering applying for IPERS disability benefits, proceed carefully in deciding when to terminate covered employment. In order to be eligible for benefits, you must live into your first month of entitlement. The first month of entitlement is the first month you qualify for a monthly benefit. This usually is the month following the month in which you end employment (regardless of the day of the month you terminate). If you do not live into your first month of entitlement, your application is canceled and a preretirement death benefit is payable to your beneficiary.

2. If You Return to Work While Receiving Disability Benefits

If you return to covered employment after retiring with disability benefits and completing a bona fide retirement, your benefits will be reduced or suspended.

B. Disability Benefits for Special Service Members

Special Service members may choose between regular and Special Service disability benefits.

If you are a vested Special Service member, you may apply for Special Service disability benefits. You do not have to be eligible for any federal disability benefits to receive Special Service disability benefits. Special Service members include sheriffs, deputy sheriffs, and members in other protection occupations. You must have been an IPERS-covered employee on or after July 1, 2000.

1. Eligibility for Special Service Disability Benefits

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

• Terminate employment with all IPERS-covered employers.
• Apply for benefits within one 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 examination to determine if your disability still exists.

There are two different types of Special Service disability benefits, which are described below.

a. 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.

b. 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.

2. Applying for Special Service Disability Benefits

You must apply for IPERS Special Service disability benefits within one year after you terminate employment (after July 1, 2000). You may qualify for benefits for an in-service disability or an ordinary disability.

After IPERS processes your completed application, you usually will be required to complete a medical exam and evaluation by the Medical Board at the University of Iowa. If you are not yet 55 years of age, you may be required to have additional examinations in the future to continue to receive benefits.

Upon receipt of the letter of recommendation from the Medical Board, IPERS will determine whether you have a disability. If you do, IPERS will determine the type of disability and prepare an estimate of your benefits.

If approved for in-service disability benefits, you can receive a monthly benefit equal to your accrued retirement allowance, calculated without reduction for early retirement, or a monthly amount equal to one-twelfth of 60 percent of your average high three-year covered wage (adjusted for the option you selected). See “Retirement” in this handbook for more on the selection of retirement options.

3. Offsetting Special Service Disability Benefits

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.

IPERS requires you to provide complete copies of your state and federal tax returns by June 30 of each calendar year. 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.

4. If You Return to Work While Receiving Special Service Disability Benefits

You may decide to return to work after being awarded IPERS Special Service disability benefits. If you return to IPERS-covered employment, all benefits will cease immediately. If you return to noncovered employment, your IPERS Special Service disability benefit will be limited according to the reemployment comparison amount formula explained in the following table: