105 KAR 1:210. Disability procedures.

 

      RELATES TO: KRS 16.505-16.652,

61.510-61.705, 78.510-78.852, 344.030, 29 C.F.R. Part 1630, 42 U.S.C. 12111(9)

      STATUTORY AUTHORITY: KRS 61.645(9)(g)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

61.645(9)(g) authorizes the Board of Trustees of Kentucky Retirement Systems to

promulgate all administrative regulations necessary or proper in order to carry

out the provisions of KRS 61.515 to 61.705, 16.510 to 16.652, and 78.520 to

78.852. KRS 16.582, 61.600, and 61.665 provide for a process for applying for

disability retirement benefits to members of the retirement systems and a

process for administrative appeal of a denial of an application or

reapplication for disability retirement benefits. This administrative regulation

establishes the procedure for filing an application or reapplication for

disability retirement benefits and the procedures for filing an administrative

appeal of a denial of an application for disability retirement benefits.

 

      Section 1. (1) An application or

reapplication for disability benefits shall be made on "Form 6000,

Notification of Retirement".

      (2)(a) The application or reapplication

shall be filed at the retirement systems within twenty-four (24) months, which

is 730 calendar days, of the applicant's last day of paid employment in a

regular full-time position.

      (b) The time period for filing an

application or reapplication for disability retirement benefits shall begin on

the day after the applicant's last day of paid employment in the regular full-time

position and shall end at close of business on the following 730th day.

      (c) If the last day of the period is a

Saturday, Sunday, or state or federal holiday, then the application shall be

valid if filed at the retirement systems by the close of the next business day

following the weekend or holiday.

      (d) The applicant's employer shall

certify the applicant's last day of paid employment.

      (e) An application or reapplication may

be submitted prior to the applicant's last day of paid employment.

 

      Section 2. (1) If the applicant is

eligible to begin drawing early retirement benefits, the applicant shall be

notified of the right to receive a retirement allowance while the disability

application is being processed.

      (2) Election of early retirement by the

applicant shall not affect the application for disability retirement.

 

      Section 3. (1) The applicant shall

complete and submit to the retirement systems a "Form 8035, Employee's Job

Description". The applicant's employer shall complete and submit to the retirement

systems a "Form 8030, Employer's Job Description". Both the applicant

and the employer shall provide information regarding applicant’s request for

reasonable accommodations and the reasonable accommodations available to

applicant, whether or not the applicant actually accepted the reasonable

accommodations.

      (2) The retirement systems may require

additional details from the applicant and the applicant's employer regarding

the applicant's job duties, if necessary.

 

      Section 4. (1) If the retirement systems

requires an applicant to submit to a medical or psychological examination under

KRS 61.665(2)(j) or 61.665(3)(c), the retirement systems shall reimburse the

applicant for mileage from the applicant's home address as it is on file at the

retirement systems, to the place of the examination or evaluation, and

returning to the applicant's home address on file at the retirement systems.

The applicant shall be reimbursed for the most direct and usually traveled

routes.

      (2) Mileage shall be based on the "Kentucky

Official Highway Map", mileage software, or the most recent edition of the

"Rand McNally Road Atlas." The applicant shall complete and submit a

Form 8846, Independent Examination Travel Voucher indicating the mileage the

applicant traveled from the applicant's home address as it is on file at the

retirement systems, to the place of the examination or evaluation, and

returning to the applicant's home address on file at the retirement systems.

The applicant shall use the most direct and usually traveled routes.

      (3) The mileage certified by the

applicant shall not be greater than the mileage indicated by the "Kentucky

Official Highway Map", mileage software, or the most recent edition of the

"Rand McNally Road Atlas" for the most direct and usually traveled

route from applicant's home address as it is on file at the retirement systems,

to the place of the examination or evaluation, and returning to the applicant's

home address on file at the retirement systems. If the mileage certified by the

applicant is greater than the mileage indicated by the "Kentucky Official

Highway Map", mileage software, or the most recent edition of the

"Rand McNally Road Atlas" the retirement systems shall pay the applicant

the mileage indicated by the "Kentucky Official Highway Map", mileage

software, or the most recent edition of the "Rand McNally Road

Atlas".

      (4) Reimbursement for use of a privately

owned vehicle shall be made at the IRS established standard mileage rate which

changes periodically; and shall not exceed the cost of commercial coach fare.

      (5) Actual costs for parking shall be

reimbursed upon submission of receipts. The applicant shall submit the

originals of the parking receipts along with a written request for reimbursement.

      (6) Actually bridge and highway toll

charges shall be reimbursed if the bridge or highway is on the most direct and

usually traveled route. The applicant shall submit the originals of the bridge

and highway toll receipts along with a written request for reimbursement.

      (7) The applicant shall file at the

retirement office a completed Form 8846, Independent Examination Travel

Voucher, within fifteen (15) days of the date of the examination or evaluation

in order to receive reimbursement for travel expenses.

 

      Section 5. The applicant shall provide to

the retirement system information concerning his continuing status with regard

to receipt of Workers' Compensation and Social Security disability benefits.

 

      Section 6. (1) The applicant shall

complete and submit a "Form 8001, Certification of Application for

Disability Retirement and Supporting Medical Information." The applicant

shall attach all medical information, forms, and other information for review

by the medical examiners to the "Form 8001, Certification of Application

for Disability Retirement and Supporting Medical Information."

      (2) The retirement systems shall submit

the completed "Form 8001, Certification of Application for Disability

Retirement and Supporting Medical Information" and all the attached

information to the medical examiners upon receipt by the retirement systems.

      (3) The time periods prescribed in KRS

61.600 and 61.665 shall begin on the day the notification of the recommendation

of the medical examiners is mailed by the retirement systems and shall end at

close of business on the last day of the prescribed time period.

      (4) If the last day of the period is a

Saturday, Sunday, or state or federal holiday, then the application shall be

valid if filed at the retirement systems by the close of the next business day

following the weekend or holiday.

      (5) An applicant’s request for a formal

hearing shall be made in writing.

      (6) Statements by the physicians shall

not be considered medical evidence unless accompanied by documented medical

records or test results.

 

      Section 7. (1) The medical examiner may

contact the applicant or the applicant's physicians to request additional

medical evidence as necessary.

 

      Section 8. (1) The hearing officer may

allow the applicant to introduce, among other evidence, the determination of Workers'

Compensation or Social Security Administration awarding disability benefits to

the applicant.

      (2) The hearing officer shall consider

only objective medical records contained within the determination and shall not

consider vocational factors or be bound by factual or legal findings of other

state or federal agencies.

 

      Section 9. (1) The provisions of this

section shall only apply to a member who began participating on or before July

31, 2004.

      (2) If an application for disability is

approved, the applicant's disability benefit shall be paid retroactive to the

month following the month of the applicant's last day of paid employment.

      (3) The service added for determining the

disability retirement allowance shall be determined under KRS 16.582 if the applicant’s

last day of paid employment was in a hazardous position, or under KRS 61.605 if

the applicant’s last day of paid employment was in a nonhazardous position.

      (4) If the applicant has both hazardous

and nonhazardous service in the same system, the added service shall be

prorated between hazardous and nonhazardous service based on the proportion of

service in each position to the whole, except that all of the added service

shall be applied toward the nonhazardous retirement allowance if:

      (a) The applicant is disabled from a

hazardous position as a result of an act in line of duty; and

      (b) Twenty-five (25) percent of the

applicant’s final rate of pay is greater than the hazardous disability

retirement allowance determined using the prorated added service.

      (5) If the applicant has service in more

than one (1) system administered by the Kentucky Retirement Systems, the added

service shall be prorated between the systems based on the proportion of

service in each system to the whole, except if the applicant is disabled from a

hazardous position in one (1) system as a result of an act in line of duty and

twenty-five (25) percent of the applicant’s final rate of pay is greater than

the hazardous disability retirement allowance determined using the prorated

added service:

      (a) All of the added service shall be

applied toward the nonhazardous retirement system if the applicant is vested

for disability benefits from the nonhazardous system.

      (b) All of the added service shall be

applied toward the hazardous retirement system if the applicant is not vested

for disability benefits from the nonhazardous system.

 

      Section 10. (1) If the applicant who is

awarded disability retirement benefits did not receive early retirement

benefits, upon the applicant's selection of a payment option, the retirement systems

shall pay the applicant the total monthly retirement allowances payable from

the effective date of disability retirement.

      (2) (a) If the applicant received early

retirement benefits, the retirement systems shall calculate and pay to the

applicant the difference between the early retirement benefit which was paid to

the applicant and the disability benefit.

      (b) The applicant shall not change his

payment option.

      (3) If benefits are payable to dependent

children, as defined in KRS 16.505(17), the parent or guardian shall provide:

      (a) A completed Form 6456, Designation of

Dependent Child;

      (b) A verification of full-time student

status of a child age eighteen (18) or over;

      (c) A copy of the birth certificate of each

dependent child;

      (d) If a dependent child is a minor, a

Form 6110, Affidavit of Authorization to Receive Funds on Behalf of Minor. If

the minor child has a court appointed guardian or conservator and the court

appointed guardian or conservator completed the Form 6110, Affidavit of Authorization

to Receive Funds on Behalf of Minor, the guardian or conservator shall submit a

copy of the court order appointing the guardian or conservator; and

      (e) Notice of the death or marriage of a

dependent child, or if the dependent child ceases to be a full-time student.

      (f) A copy of the dependent child's

verification of full-time student status shall be filed with the retirement

system for each semester of study within thirty (30) days following the start

and within thirty (30) days following the end of each semester.

      (4) An increase provided to recipients

under KRS 61.691 shall be applied to the applicant's disability benefit and

payments to dependent children in determining the total retroactive payments

owed to the applicant and dependent children.

 

      Section 11. (1) The applicant shall

notify the retirement systems of his intent to apply for workers’ compensation

or benefits from the Social Security Administration. Upon receipt of approval

for workers’ compensation or benefits from the Social Security Administration,

the applicant shall file at the retirement systems a copy of the approval

notice containing the amount of the award.

      (2) To determine the maximum benefit

under KRS 61.607, the following shall be added together:

      (a) The applicant's gross monthly

disability retirement allowance determined in accordance with KRS 61.605 or

16.582, excluding payments to dependent children and before any actuarial

reduction for purposes of an optional retirement plan under KRS 61.635 or

16.576, converted to an annual amount.

      (b) The applicant's total gross annual

benefit from workers' compensation. If the applicant's benefit includes a lump

sum payment or a payment for a period less than the applicant's lifetime, then

an annualized benefit shall be determined as follows:

      1. The gross amount of any lump sum

payment shall be divided by the applicant's life expectancy, expressed in

years, from the effective date of the award.

      2. The total gross amount of all payments

paid for any period other than the applicant's lifetime shall be divided by the

applicant's life expectancy, expressed in years, from the effective date of the

award.

      3. The total determined in subparagraphs

1 and 2 of this paragraph shall be combined and added to the total gross annual

amount of the applicant's lifetime benefit, if any.

      (c) The applicant's gross monthly

disability benefit from the Social Security Administration, excluding spouse or

dependent benefits converted to an annual amount.

      (3) If the projected combined monthly

benefit exceeds 100 percent of the disabled employee's final rate of pay or

final compensation, whichever is greater, the disability retirement allowance

from the retirement system shall be reduced as follows:

      (a) The difference shall be divided by

twelve (12) and subtracted from the applicant's monthly retirement allowance

determined in accordance with KRS 61.605 or 16.582, excluding payments to dependent

children and before any actuarial reduction for purposes of an optional retirement

plan under KRS 61.635 or 16.576.

      (b) The actuarial reduction for the

applicant's optional plan under KRS 61.635 or 16.576 shall be applied to

determine the applicant's monthly retirement allowance. The reduction shall

apply to all retirement allowances received since the date the combined

benefits exceeded 100 percent of the higher of the applicant's final

compensation or final rate of pay based on the effective dates of the

individual benefits.

      (4) The disability retirement allowance

payable shall not be reduced below an amount which would result from a

computation of retirement allowance under early retirement or the disability

retirement allowance from the retirement system using the disabled employee's

actual total service, whichever is greater.

 

      Section 12. (1) A recipient shall

complete a Form 6130, Authorization for Deposit of Retirement Payment, to have

the monthly retirement allowance deposited to an account in a financial institution.

      (2) The recipient and the financial

institution shall provide the information and authorizations required for the

electronic transfer of funds from the State Treasurer's office to the

designated financial institution.

      (3)(a) At any time while receiving a

retirement allowance, the recipient may change the designated institution by

completing a new Form 6130, Authorization for Deposit of Retirement Payment,

and filing the form at the retirement systems.

      (b) The last Form 6130, Authorization for

Deposit of Retirement Payment on file at the retirement systems shall control

the electronic transfer of the recipient's retirement allowance.

      (4) The recipient may complete a Form

6135, Request for Payment by Check.

      (5) The retirement systems shall not

process the retirement allowance until the recipient has filed a completed Form

6130, Authorization for Deposit of Retirement Payment or filed a completed Form

6135, Request for Payment by Check.

 

      Section 13. Incorporation by Reference.

(1) The following material is incorporated by reference:

      (a) Form 6000, "Notification of

Retirement", July 2004;

      (b) Form 8030, "Employer’s Job

Description", July 2004;

      (c) Form 8035, "Employee’s Job

Description", July 2004;

      (d) Form 6110, "Affidavit of

Authorization to Receive Funds on Behalf of Minor", May 2003;

      (e) Form 6456, "Designation of

Dependent Child," July 2004;

      (f) Form 6130, Authorization for Deposit

of Retirement Payment", May 2008;

      (g) Form 6135, "Request for Payment

by Check", February 2002;

      (h) Form 8001, "Certification of

Application for Disability Retirement and Supporting Medical Information",

May 2008; and

      (i) Form 8846, "Independent

Examination Travel Voucher", May 2008.

      (2) This material may be inspected,

copied, or obtained, subject to applicable copyright law, at the Kentucky

Retirement Systems, Perimeter Park West, 1260 Louisville Road, Frankfort, Kentucky

40601, Monday through Friday, 8 a.m. to 4:30 p.m. (18 Ky.R. 932; eff. 11-8-91;

Am. 19 Ky.R. 968; 1338; eff. 12-9-92; 20 Ky.R. 829; eff. 12-6-93; 21 Ky.R.

1525; eff. 2-8-95; 22 Ky.R. 775; eff. 12-7-95; 27 Ky.R. 1050; 1444; eff.

12-21-2000; 28 Ky.R. 912; 1350; eff. 12-19-2001; 29 Ky.R. 767; 1250; eff.

11-12-02; 31 Ky.R. 386; eff. 11-5-04; 35 Ky.R. 111; Am. 538; eff. 10-3-08.)