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PORS - Active Members  Disability Retirement
Who
May Apply Who May Apply
The five-year service requirement is waived if you can substantiate that your disability is the result of an on-the-job injury. For retirement purposes, you are considered occupationally disabled if you become physically or mentally incapable of performing the regular duties of your job, your disability is likely to be permanent, and you should be retired. Becoming disabled does not automatically qualify you for disability retirement; you must file an application and go through the review process. You may arrange with your employer to make your Retirement Systems’ contributions through the employer if your disability requires you to be placed in an employer-approved leave status while receiving Workers’ Compensation benefits. Doing so will ensure that you will continue to earn Retirement Systems’ service credit during your Workers' Compensation leave period. Be sure to apply for disability benefits while you are still in service of a covered employer. Since many Workers' Compensation claims are often settled after covered employment has ended, do not wait until your Worker's Compensation claim is finalized to apply for disability benefits. If your disability claim is denied, the continuance of paying contributions and earning Retirement Systems’ service credit may be important to your long-term retirement plans. Retired members who work for a covered employer are not eligible to apply for disability benefits.
How to Apply You should file your application for disability retirement as soon as you become disabled. You must apply prior to leaving covered employment or you will not be eligible to participate in the disability retirement program. If you do not receive notification of the Retirement Systems' receipt of your application within 10 days after you submit it, please contact the Retirement Systems. If you are eligible for service retirement when you become disabled, you may apply for service retirement while awaiting determination of your disability claim; however, you will receive only one type of payment (service or disability) if your disability claim is approved.
Processing the Claim Please allow a minimum of three months after all required documentation has been received from you, your employer, and your health care providers for your disability application to be processed. If you have not received the Retirement Systems' decision within three months, please contact the Retirement Systems.
Effective Date A disability annuity, once approved, may be discontinued if:
Periodic medical reexaminations may be required up to age 55. If the Retirement Systems determines that your disability benefits should cease because of an improvement in your medical condition, your retirement benefits will stop the month of your scheduled review or the month of the Retirement Systems’ decision, whichever is later.
Annuity Payments Because the Retirement Systems does not determine your disability based on the criteria for a disability that is total and permanent, your disability benefits are considered to be a normal distribution from your retirement account. For tax information, contact the Internal Revenue Service, the SC Department of Revenue if you live in South Carolina, and/or your personal tax advisor. Disability benefits paid under PORS are based on approval for an occupational or job-related disability. Per Internal Revenue Service (IRS) guidelines, all such benefits are reported as normal distributions with a distribution code of 7 on IRS Form 1099-R. If you also receive benefits from the Social Security Administration that are based on total and permanent disability, such benefits are reported to you with a distribution code of 3 on IRS Form 1099-R. If you are considered to be totally and permanently disabled, benefits paid by the Retirement Systems may be eligible for additional tax credits. Please have your tax advisor refer to the instructions for completing IRS Schedule R in preparing your income tax return.
Returning to Employment
While Receiving a Disability Retirement Annuity Example
Your AFC may be adjusted each year for inflation for earnings limitation purposes only. This increase generally matches the percentage increase of the Consumer Price Index (CPI). These adjustments affect the amount you can earn while receiving a disability retirement annuity; however, they do not affect the amount of your benefit. You will receive a letter each January advising you on how much you can earn and requesting confirmation of your prior year earnings. You will have to repay any benefits that you received to which you were not entitled. If you earn more than the difference between your adjusted AFC and your disability annuity amount, your monthly annuity will be reduced or possibly canceled. If you return to work with an employer covered by the Retirement Systems and your salary is equal to or greater than your adjusted AFC, your disability retirement annuity ceases and you must become an active member of the Retirement Systems. Retired members who work for a covered employer will make tax-deferred employee contributions for the duration of their covered employment and are eligible for an increased group life insurance benefit equal to one year’s annual salary. |
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