SERS outlines occupational, temporary and nonoccupational disability benefits and survivor payments

A State Employees Retirement System presenter described the system's three disability programs (occupational, temporary and nonoccupational), how they interact with workers' compensation, and the survivor benefit rules for active employees.

Why it matters: disability benefits preserve service credit and provide income for members who become unable to work; survivor benefits ensure payments to eligible dependents or nominated beneficiaries after an active member's death.

Key details presented: - Disability types and eligibility: - Occupational disability: applies to work-related injuries. Members must file a workers' compensation claim and file required SERS forms. SERS offsets the member's benefit against workers' compensation so the combined benefit can reach 75% of FAC for tier 2 members. The presenter said members do not have to use sick or vacation time while receiving occupational disability benefits. - Temporary disability: available when workers' comp benefits are denied or suspended; members must have 18 months of credited service (reciprocal time from SURS or TRS may be used) and complete required forms. There is a 30-day waiting period from the date last paid by the agency. - Nonoccupational disability: for medically necessary leaves not related to work. Members must be on agency-approved medical leave, use accumulated sick time, be absent at least 30 days and have 18 months of credited service. Nonoccupational benefits generally pay 50% of FAC and the member may be eligible for benefits for up to half their service credit or until age limits noted in plan rules. - Interaction with workers' compensation and claims handling: presenter identified Gallagher Bassett as the administrator for SERS workers' compensation claims and CorVel as administrator for toll-highway employees; SERS can begin paying once workers' comp starts, and if a claim is denied and the member appeals, temporary disability may be available. - Survivor and active-employee death benefits: for an active member with 18 months of service and eligible survivors, SERS provides a one-time $1,000 lump sum and a monthly annuity of up to two-thirds (66 2/3%) of the deceased member's accrued pension and may extend insurance coverage to survivors. If there are no qualifying survivors, SERS refunds retirement-contribution amounts plus interest to nominated beneficiaries and provides an additional lump-sum payment equal to one month's salary for each full year worked up to six months' salary equivalent.

The presenter emphasized filing SERS paperwork promptly after a workers' compensation settlement to avoid gaps in posted service credit: "Because we're not paying you a benefit, you are not getting service credit or earnings posted to your account for any of those months." The session provided operational guidance; no policy changes were proposed.