PENSION BENEFITS REPORT
Qualifications for ordinary disability
Recently, we have been fielding a tremendous volume of calls from our members regarding their possible disability retirements. Many of our members are confused about this process. I hope I can help with some of the confusion by explaining the basic qualifications regarding a disability retirement. I will explain the qualifications in a very broad sense; if you read this and still have questions, please call or email me so we can discuss your scenario on the phone or in person.
If you are unaware, there are three types of disability retirement pensions for which our members may or may not qualify. This article will explain the ordinary disability retirement. Subsequent articles will explain accidental and involuntary disability retirements.
The application process starts when you log on to your MBOS account and submit your application for disability retirement. To qualify for ordinary disability retirement, you must have four or more years of service credit in a New Jersey – administered pension system. In cases where our members had previous pension credit in an out-of-state pension system, the military or U. S. government service, this service credit does not apply toward the four years of service. In other words, you must have completed four actual years of service in a New Jersey stateadministered pension system such as PFRS. You can’ t have two years of pension credit in the PFRS and another two years of pension credit that you purchased because you were in the military or worked for an out-of-state agency.
Upon submitting an application for retirement, a member must be a“ member in service,” which basically means you must be an active law enforcement officer making your pension contributions when you submit your application for a disability pension with a minimum of four years of service credit in a New Jersey state-administered pension system. During the process, you must prove that you are considered totally and permanently disabled. You must also prove that your disability is either physically or mentally incapacitating you from doing your normal or assigned job functions or any other job positions your employer assigns you to.
At the time you have separated yourself from service, you must be disabled as a result of the alleged disability that renders you totally disabled, and you must submit all of your medical documents along with any other evidence that supports your position. All the documents supporting your disability application must be sent to the Division of Pensions within six months of your submitting your application. If you do not send in those required documents within the six months, the Division of Pensions could cancel your application and then you will need to
file again. It is your responsibility to ensure that you have sent all the required medical records, doctor reports and any other health information that pertains to your application to the Division of Pensions.
In the event that your medical information is deemed insufficient to approve your disability application, the Division of Pensions will require you to see independent doctors selected by the retirement system. These doctor appointments will be scheduled for you by the state and will not cost you anything. If this happens, make every effort to be at the appointment, because if the state is advised that you failed to appear for the scheduled doctor appointment, you will be charged for future doctor appointments.
During the medical review process, the Division of Pensions requires information from your doctors and a release of your health information related to your disability. This process needs to show that two doctors agree that your condition supports your application for disability from your job. Be sure to complete the application as thoroughly as possible, because the more complete the application is with your medical information and supporting documents, the faster it can be evaluated. Generally, this process will take six to eight months, possibly longer if your application is missing some information.
If your application has been approved by the PFRS board of trustees for ordinary disability, you will receive an annual pension benefit of 40 percent of your final compensation, or 1.5 percent of your final compensation for each year of service credit, whichever is higher. Once your application has been approved by the PFRS board of trustees, you cannot withdraw, amend or cancel your application.
Final compensation for Tier 1 members is the salary used to determine your pension contributions in the last 12 months of credible service before retirement. Tier 1 members are those members enrolled in the PFRS on or before May 21, 2010. Final compensation for Tier 2 members( enrolled after May 21, 2010, and before June 28, 2011) and Tier 3 members( enrolled after June 28, 2011) means the average salary upon which pension contributions were based for any three fiscal years of membership before retirement that provides the largest possible benefit.
Ordinary disability retirement benefits are not reduced by any Social Security or private insurance benefits that may be payable; however, any workers comp award you receive could be reduced. Ordinary disability retirement benefits are subject to federal tax, but they are not subject to New Jersey income tax until you reach 65 years of age.
If you have any questions regarding your disability retirement application, please call or email me at the NJSPBA office. d
14 NEW JERSEY COPS ■ AUGUST 2017