LACERA Investigators & RTW Coordinators How Your Efforts Help Us (and hopefully you too)

1. LACERA Investigators & RTW Coordinators How Your Efforts Help Us (and hopefully you too) Presented by Richard Schlosser & Shari Altmark Disability Retirement Section Supervisors

2. DISABILITY RETIREMENT: GENERAL TERMS • Service Connected Disability • Eligible from 1st day of employment • Must be permanently disabled • Must have a direct causational link to the workplace • Non Service Connected Disability • Must have at least 5 years of service (60 months) • Must be permanently disabled • No direct link to the workplace • Service Retirement • Concurrent with Disability Application • Waive reinstatement rights

3. DISABILITY RETIREMENT vs. WORKERS’ COMPENSATION • ComparisonWorker’s Compensation vs. Retirement Law • Worker’s Comp. system provides different benefits from County Retirement System: • Temporary Disability • Permanent Disability • Rehab or supplemental job displacement benefit • LACERA’s Board of Retirement not bound by Worker’s Comp. system; and is not a party to Worker’s Comp. Decisions • LACERA grants only Permanent Incapacity

4. EMPLOYEE’S APPLICATION EMPLOYER’S APPLICATION

5. Contents Within Employee’s Disability Retirement Packet • Disability Retirement brochure • Disability Retirement Eligibility and Application Instructions • Application for Disability Retirement • Physician Statement for Disability Retirement • Claims Against Third Parties form • Authorization to Obtain and Release Records and Information, signed by applicant

6. Contents Within Employer’sPacket • Disability Retirement brochure • Disability Retirement Eligibility and Application Instructions (Department version) • Application for Disability Retirement

7. Discovery and Obtaining of Records • Following records obtained prior to interviewing the member (where applicable): • Medical/Psychiatric Records through TPA or private • Personnel Records (cooperative effort with county departments) • Performance Evaluations • Grievance Filing/Internal Investigations • Workers’ Compensation Files • Benefit Awards • Notice of Work Restrictions • List of All Claims Filed • Electronic Access Listing • Third Party Administrator Assistance • CEO Office Communication

8. Member Interview • Prepare a Disability Evaluation Summary Report • The interview with employee is conducted to obtain information regarding the following: • History of Injury/Illness • Occupational History/Physical Requirements • Light Duty/Accommodated Assignments • Current Symptoms/Complaints • Retroactive Recommendation

9. Witness Statements • Investigator contact with supervisor and/or co-workers: • Statements to verify the witnessing of injury/illness • “actual duties” • Physical requirements • Frequency of movements • Ability to perform duties • Return-to-work Coordinator statements regarding accommodation

10. Medical Examination • Send Medical Records and Summary Report to Panel Physician (Panel Physician Guidelines) • The mechanism of injury • Show history and track treatment rendered • General medical history • Board Preparation • Notify the member/attorney in writing of exam date • Notify the Member/Attorney in writing of Board date • Member/Attorney may attend the closed session, but he/she may not address the Board regarding the application

11. Processing Timeframes • Minimum amount of time to process a disability application is 7 to 9 months • Assuming only one claim of disability involved; • Extra time is needed for extensive investigation or delays in obtaining medical evidence; or • Additional medical specialties evaluations are needed

12. REASONABLE ACCOMMODATION: DISABILITY RETIREMENT • What is a “Reasonable Accommodation?” • Position within Applicant’s current job class that is modified to accommodate permanent work restrictions. • The employer may choose to modify the applicant’s current assignment or offer another assignment, so long as it is within the same job class. • The offer must be written • The BOR’s decision is not dependent on whether or not the Applicant accepts position.

13. REASONABLE ACCOMMODATION: DISABILITY RETIREMENT • Board of Retirement (BOR) is a separate legal entity, empowered to make its own findings of fact • BOR has fiduciary duty to independently investigate and determine availability of reasonable accommodation • BOR decision not dependent on whether employer has actually offered accommodation to applicant. However, if there is a written offer of a permanent accommodation within applicant’s job class: • Applicant is found to be not permanently incapacitated • Disability retirement is denied

14. SUPPLEMENTAL RETIREMENT ALLOWANCE • Supplemental Retirement Allowance is a good way retaining disabled members in County Service. • County Departments face critical budget cuts, lay offs, and hiring freezes. Salary Supplement is the process of retaining experienced employees in rehabilitation positions. • Government Codes 31725.5 and 31725.6/.65 • Applications are to be treated like any other application; the criteria is that the applicant must be found disabled from the ORIGINAL position. Section 31725.5 Applies to nonservice-connected disability retirements. Section 31725.6/.65 Applies to service-connected disability retirements.

15. VOLUNTARY DEMOTION • A voluntary Demotion can be done two ways: • Demoted to lesser position, lesser salary, and no provisions to supplement for the pay cut. These cases will have the supplement start on either the date of application or the date of demotion per Section 31724. • Demoted to lesser position, with a Y-Rate, assigned at the time of demotion. Pay stays the same until disability is determined.

16. CONDITIONS FOR SUPPLEMENTAL RETIREMENT ALLOWANCE • Contingent on: • The offer of a permanent position with a lower salary schedule which accommodates the employee’s permanent work restrictions • The acceptance of this position by the employee

17. SALARY SUPPLEMENTAL ALLOWANCE • The Disability Retirement Services Division works closely with County departments’ Human Resource managers and Return to Work Coordinators to facilitate a better awareness of the Salary Supplement options. • Department’s Responsibilities are: • Confirm the employee has applied for disability retirement benefits with the salary supplement • Place the employee on a “Y”-Rate; pending the Board of Retirement’s action • Ensure the employee’s salary remains unchanged during the disability retirement application process

18. ENGAGING THE PROCESS • LACERA’s Responsibilities • Once the Board of Retirement takes action, the department is notified and an effective date for the Salary Supplement is established • If the application is denied, appeal rights are not affected

19. MEMBER’S FUTURE EARNINGS The calculation is based upon the member’s actual earnings at the time the benefit is granted. The calculation does not allow for future item raises and cost-of-living increases. The member can be promoted in the new position career chain. When the member receives a pay raise, it is reviewed against the original item number salary and the salary supplement allowance is lowered accordingly. If the new item number salary exceeds the original position’s salary, the Salary Supplement allowance stops.

20. SUPPLEMENTAL RETIREMENT CALCULATION • Example #1: • Previous position monthly salary = $4,000 • Disability Allowance = $1,333 • New Position monthly salary = $3,000 • LACERA pays = $1,000 • Example #2: • Previous position monthly salary = $4,000 • Disability Allowance = $1,333 • New Position monthly salary = $2,000 • LACERA pays = $1,333 * * Cannot exceed Disability Allowance amount