A. Disability benefit payments shall be offset by an amount equal to any sumspayable to a participating employee from the following sources:
1. During the first 12 months the employee receives disability benefits, anamount equal to the employee's wages and salary from any employment times thecreditable compensation replacement percentage;
2. After the first 12 months the employee receives disability benefits, anamount equal to 70 percent of the employee's wages and salary from anyemployment;
3. Except as provided in subsection F, disability payments from the SocialSecurity Administration, military disability benefits, local governmentdisability benefits, federal civil service disability benefits or othersimilar governmental disability program benefits received by the employee orhis family as a result of the qualifying disability;
4. Benefits received from any other group insurance contract provided by theCommonwealth for the purpose of providing income replacement; and
5. Benefits paid under any compulsory benefits law.
B. If the plan administrator deems a participating employee to be eligiblefor benefits from any of the sources listed in subdivisions A 3, A 4, and A5, the plan administrator may direct the participating employee to apply forthose benefits and to pursue whatever additional steps are necessary toobtain the benefits. If a participating employee fails or refuses to pursuethe available benefits as directed by the plan administrator, disabilitybenefit payments may be offset by amounts from any of the sources listed insubdivisions A 3, A 4, and A 5 for which a participating employee is deemedeligible by the plan administrator as if the employee received such amounts.However, if the employee has applied for such benefits, and has reapplied andappealed denials of the claim as requested by the administrator of the plan,and the claim is not approved, the employee's disability payments shall notbe reduced thereby.
C. If a participating employee's disability benefit payments are reduced asthe result of payments from sources listed in subdivisions A 3, A 4, and A 5or pursuant to subsection B, the employee's disability benefits shall notthereafter be further reduced on account of cost-of-living increases inpayments from such sources.
D. Participating employees shall be required to repay, with interest to theBoard or their employer, any overpayments of disability benefits on accountof the failure of the employee to provide the Board or its designee withinformation necessary to make any of the reductions required to be made underthis article.
E. Any payment to a participating employee that is later determined by theBoard or by the employer to have been procured on the basis of any falsestatement or falsification of any record knowingly made by or on behalf ofthe member, or the employee's failure to make any required report of changein disability status, may be recovered from the employee by the Board, withinterest, either by way of a credit against future payments due the employee,his survivor and beneficiaries or by an action at law against the employee.
F. Supplemental disability payments will not be offset for a participatingemployee if the employee is receiving a primary retirement benefit forservice in the United States armed services, even if a percentage of thatprimary retirement benefit has been declared a disability payment. Anydisability payment that is not a part of the primary retirement benefit willbe offset.
(1998, c. 774; 1999, c. 144; 2000, c. 889; 2003, c. 5; 2004, c. 99; 2006, cc.778, 841.)
A. Disability benefit payments shall be offset by an amount equal to any sumspayable to a participating employee from the following sources:
1. During the first 12 months the employee receives disability benefits, anamount equal to the employee's wages and salary from any employment times thecreditable compensation replacement percentage;
2. After the first 12 months the employee receives disability benefits, anamount equal to 70 percent of the employee's wages and salary from anyemployment;
3. Except as provided in subsection F, disability payments from the SocialSecurity Administration, military disability benefits, local governmentdisability benefits, federal civil service disability benefits or othersimilar governmental disability program benefits received by the employee orhis family as a result of the qualifying disability;
4. Benefits received from any other group insurance contract provided by theCommonwealth for the purpose of providing income replacement; and
5. Benefits paid under any compulsory benefits law.
B. If the plan administrator deems a participating employee to be eligiblefor benefits from any of the sources listed in subdivisions A 3, A 4, and A5, the plan administrator may direct the participating employee to apply forthose benefits and to pursue whatever additional steps are necessary toobtain the benefits. If a participating employee fails or refuses to pursuethe available benefits as directed by the plan administrator, disabilitybenefit payments may be offset by amounts from any of the sources listed insubdivisions A 3, A 4, and A 5 for which a participating employee is deemedeligible by the plan administrator as if the employee received such amounts.However, if the employee has applied for such benefits, and has reapplied andappealed denials of the claim as requested by the administrator of the plan,and the claim is not approved, the employee's disability payments shall notbe reduced thereby.
C. If a participating employee's disability benefit payments are reduced asthe result of payments from sources listed in subdivisions A 3, A 4, and A 5or pursuant to subsection B, the employee's disability benefits shall notthereafter be further reduced on account of cost-of-living increases inpayments from such sources.
D. Participating employees shall be required to repay, with interest to theBoard or their employer, any overpayments of disability benefits on accountof the failure of the employee to provide the Board or its designee withinformation necessary to make any of the reductions required to be made underthis article.
E. Any payment to a participating employee that is later determined by theBoard or by the employer to have been procured on the basis of any falsestatement or falsification of any record knowingly made by or on behalf ofthe member, or the employee's failure to make any required report of changein disability status, may be recovered from the employee by the Board, withinterest, either by way of a credit against future payments due the employee,his survivor and beneficiaries or by an action at law against the employee.
F. Supplemental disability payments will not be offset for a participatingemployee if the employee is receiving a primary retirement benefit forservice in the United States armed services, even if a percentage of thatprimary retirement benefit has been declared a disability payment. Anydisability payment that is not a part of the primary retirement benefit willbe offset.
(1998, c. 774; 1999, c. 144; 2000, c. 889; 2003, c. 5; 2004, c. 99; 2006, cc.778, 841.)
A. Disability benefit payments shall be offset by an amount equal to any sumspayable to a participating employee from the following sources:
1. During the first 12 months the employee receives disability benefits, anamount equal to the employee's wages and salary from any employment times thecreditable compensation replacement percentage;
2. After the first 12 months the employee receives disability benefits, anamount equal to 70 percent of the employee's wages and salary from anyemployment;
3. Except as provided in subsection F, disability payments from the SocialSecurity Administration, military disability benefits, local governmentdisability benefits, federal civil service disability benefits or othersimilar governmental disability program benefits received by the employee orhis family as a result of the qualifying disability;
4. Benefits received from any other group insurance contract provided by theCommonwealth for the purpose of providing income replacement; and
5. Benefits paid under any compulsory benefits law.
B. If the plan administrator deems a participating employee to be eligiblefor benefits from any of the sources listed in subdivisions A 3, A 4, and A5, the plan administrator may direct the participating employee to apply forthose benefits and to pursue whatever additional steps are necessary toobtain the benefits. If a participating employee fails or refuses to pursuethe available benefits as directed by the plan administrator, disabilitybenefit payments may be offset by amounts from any of the sources listed insubdivisions A 3, A 4, and A 5 for which a participating employee is deemedeligible by the plan administrator as if the employee received such amounts.However, if the employee has applied for such benefits, and has reapplied andappealed denials of the claim as requested by the administrator of the plan,and the claim is not approved, the employee's disability payments shall notbe reduced thereby.
C. If a participating employee's disability benefit payments are reduced asthe result of payments from sources listed in subdivisions A 3, A 4, and A 5or pursuant to subsection B, the employee's disability benefits shall notthereafter be further reduced on account of cost-of-living increases inpayments from such sources.
D. Participating employees shall be required to repay, with interest to theBoard or their employer, any overpayments of disability benefits on accountof the failure of the employee to provide the Board or its designee withinformation necessary to make any of the reductions required to be made underthis article.
E. Any payment to a participating employee that is later determined by theBoard or by the employer to have been procured on the basis of any falsestatement or falsification of any record knowingly made by or on behalf ofthe member, or the employee's failure to make any required report of changein disability status, may be recovered from the employee by the Board, withinterest, either by way of a credit against future payments due the employee,his survivor and beneficiaries or by an action at law against the employee.
F. Supplemental disability payments will not be offset for a participatingemployee if the employee is receiving a primary retirement benefit forservice in the United States armed services, even if a percentage of thatprimary retirement benefit has been declared a disability payment. Anydisability payment that is not a part of the primary retirement benefit willbe offset.
(1998, c. 774; 1999, c. 144; 2000, c. 889; 2003, c. 5; 2004, c. 99; 2006, cc.778, 841.)
