38-844

38-844. Requirements for retirement benefits
and disability pensions

A. A member shall be eligible for a normal pension on retirement on or after the
member's normal retirement date. Payment of a normal pension shall commence as of the
first day of the month following the date of retirement, and the last payment shall be
made as of the last day of the month in which the death of the retired member occurs.

B. A member is eligible for an accidental disability pension if the member's
employment is terminated by reason of accidental disability. A member is eligible for an
ordinary disability pension if the member's employment is terminated before the member's
normal retirement date by reason of ordinary disability. A member shall file an
application for a disability pension after the disabling incident or within one year
after the date the member ceases to be an employee. Timely application for an
accidental, catastrophic or ordinary disability pension is a prerequisite to receipt of
the pension. Payment of an accidental, catastrophic or ordinary disability pension shall
commence as of the first day of the month following the date of retirement or the
expiration of a period during which the member is receiving sick leave payments or a
temporary disability pension, whichever is later. The last payment shall be made as of
the last day of the month in which the death of the retired member occurs, or if
disability ceases before the member's normal retirement date, the first day of the month
in which disability ceases.

C. A member is eligible for a catastrophic disability pension if the member's
employment is terminated by reason of catastrophic disability. If more than the allowable
catastrophic disability pensions are approved by the local boards in a calendar year,
from and after December 31 of the following calendar year a member of the system is not
eligible to apply for a catastrophic disability pension. On or before January 31, the
board of trustees shall report to the president of the senate and the speaker of the
house of representatives the number of catastrophic disability pensions that were
approved by the local boards in the preceding calendar year. For the purposes of this
subsection, "allowable catastrophic disability pensions" means for calendar year 2004,
ten, and for subsequent calendar years the number of allowable catastrophic disability
pensions allowed in the prior calendar year minus the number of catastrophic disability
pensions approved by the local boards in the prior calendar year plus four.

D. Notwithstanding any other provision of this section, no member shall qualify for
an accidental, catastrophic or ordinary disability pension if the local board determines
that the member's disability results from the following:

1. An injury suffered while engaged in a felonious criminal act or enterprise.

2. Service in the armed forces of the United States that entitles the member to a
veteran's disability pension.

3. A physical or mental condition or injury that existed or occurred before the
member's date of membership in the system.

E. Accidental or ordinary disability shall be considered to have ceased and an
accidental or ordinary disability pension terminates if the member:

1. Has sufficiently recovered, in the opinion of the local board, based on a
medical examination by a physician or clinic appointed by the local board, to be able to
engage in a reasonable range of duties within the member's department and the member
refuses an offer of employment by an employer in the system.

2. Refuses to undergo any medical examination requested by the local board,
provided that a medical examination shall not be required more frequently than once in
any calendar year.

F. Sixty months after the award of a catastrophic disability pension, the local
board shall reevaluate the member. If the member still qualifies for the catastrophic
disability pension, the member is entitled to continue to receive the pension at the
reduced amount prescribed in section 38-845, subsection E. A catastrophic disability
shall be considered to have ceased and a catastrophic disability pension terminates if
the local board determines that the member has sufficiently recovered and is able to
engage in gainful employment based on a medical examination by a physician or a clinic
appointed by the local board. After the sixty month review, the catastrophic disability
shall be considered to have ceased and a catastrophic disability pension terminates if
the local board determines that the member has sufficiently recovered and is able to
engage in gainful employment based on a medical examination by a physician or a clinic
appointed by the local board, except that the medical examination shall not be required
more frequently than once in a calendar year. The medical review after the sixty month
period does not apply after the date the catastrophic disability pensioner would have
attained twenty-five years of service assuming the pensioner remained a member of the
system. The local board shall also terminate a catastrophic disability pension if the
member refuses to undergo any medical examination requested by the local board. A member
whose catastrophic disability pension is terminated may apply for and if eligible is
entitled to receive an accidental disability pension as provided in this section.

G. Subsection E of this section does not apply after a disability pensioner's
normal retirement date. The amount of a disability pension shall not be recomputed at a
disability pensioner's normal retirement date.

H. If accidental or ordinary disability ceases before a retired member attains the
member's normal retirement date and the member is reemployed by an employer, the pension
payable on the member's subsequent retirement shall be determined as provided in section
38-849, subsection D.

I. A member shall be eligible for a temporary disability pension if the member's
employment is terminated before the member's normal retirement date by reason of
temporary disability. Payment of a temporary disability pension shall commence as of the
first day of the month following the date of disability or the expiration of a period
during which the member is receiving compensation and sick leave payments, whichever is
later. The last payment shall be made as of the first day of the month in which either
the death of the member occurs or the local board deems the member is no longer under
temporary disability, whichever first occurs, provided that no more than twelve monthly
temporary disability payments shall be made in total to the member.

J. If on the expiration of a temporary disability pension the local board finds on
application that the member has an accidental or ordinary disability, the member shall be
eligible for an accidental or ordinary disability pension, as provided in this section.

K. The system shall make payments pursuant to section 401(a)(9) of the internal
revenue code and the regulations that are issued under that section. Notwithstanding any
other provision of the system, beginning January 1, 1987 payment of benefits to a member
shall commence no later than April 1 of the calendar year following the later of:

1. The calendar year in which the member attains seventy and one-half years of age.

2. The date the member terminates employment.