Pension legislation is causing a small update for current revised plan recipients of the Ohio Public Employees Retirement System’s disability benefits program.
This change affects the date at which a revised plan disability benefit recipient switches over to an age-and-service retirement benefit. We call that a “conversion retirement,” and after Jan. 7, 2013, the conversion retirement date will be based on the member’s age-and-service retirement transition group.
By Ohio law, current revised plan disability benefit recipients must convert to an age-and-service retirement at the appropriate time. For members who began receiving benefits before age 60, that conversion date is age 65.
As of Jan. 7, members who began receiving a disability benefit before age 60 will convert from a disability benefit to an age-and-service retirement benefit based on the eligibility requirement for his/her retirement transition group. Group A members will continue to convert at age 65. However, Group B members now will convert at age 66, and Group C members will convert at age 67.
This adjustment is being made to reflect the new minimum ages required to qualify for an unreduced age-and-service retirement benefit. Pension legislation is increasing the age to 66 and 67 for Group B and Group C members, respectively.
At conversion, disability benefit recipients receive the greater of:
- Final average salary times 2.2 percent, multiplied by years of service (with the benefit not to exceed 45 percent of FAS)
- The regular or law enforcement benefit calculation, using only years of contributing service.
No current disability recipients will be impacted by the new pension law while they are receiving the disability benefit. But in converting to an age-and-service retirement, they will be subject to all of the changes in the pension law, which we have detailed in the Comprehensive Guides to Pension and Health Care.
Current disability benefit recipients also will face changes in health care, mostly according to the general revisions that OPERS approved this year. Their health care allowances will be based on their years of service and their age at retirement, and there will be a three-year transition to the new allowance percentages.
It’s important to note that members who apply for a conversion retirement with an effective date on or after Jan. 1, 2014, must meet the new age-and-service requirements to be eligible for health care coverage. Those thresholds are 20 years of service at age 60 or 30 years of service at any age.
I am currently on disability retirement. How will the changes in the health care plan effect my wife? She is currently on SSD.
Mark,
Please contact OPERS Member Services at 800-222-7377.
–Ohio PERS
“It’s important to note that members who apply for a conversion retirement with an effective date on or after Jan. 1, 2014, must meet the new age-and-service requirements to be eligible for health care coverage. Those thresholds are 20 years of service at age 60 or 30 years of service at any age.”
i have been on disability since 11/09 for stage IV cancer. i am currently 63 with only slightly over 10 years of service. my disability benefits will continue until 2014, as i will not be medicare eligible until june of that year. does this mean i will be without any access to “advantage” or “supplemental” health care coverage through OPERS? i have no choice but to convert to age-and-service retirement after 1/1/14. i don’t understand what this means for me and others currently receiving disability. am i a “revised plan” recipient? i don’t understand what that means, either. i did not receive a “comprehensive guide.. . . . . “
Pamela,
Our Comprehensive Guides are available at the OPERS website. You can click on this link to access the page where they reside:
https://www.opers.org/News/ORSC/changes.shtml
For answers to your individual questions about disability changes in the health care bill, or how health care will work for those either currently on disability or those converting to age-and-service retirement from disability coverage, please contact OPERS Member Services at 800-222-7377.
–Ohio PERS
Really? Call that number and they will not answer. “We are too busy, call back later” is unacceptable. Our questions are important. This healthcare is a nightmare – my wife spent 2 1/2 hrs with a social worker trying to figure out what to do in April when she is picked up by Medicare. This is outrageous – you pull the rug from under our feet and then refuse to face it.
I was on disabilty for 6 months this past year, using some of my 2080 hrs. I heard that after April 2013, that anyone on disabilty would have to make up that time. Is there any truth to this..
kenneth ramsay
Does being off on disabilty count toward your retirement ?..
Kenneth,
For answers to your individual questions regarding the disability program, please contact Member Services at 800-222-7377.
–Ohio PERS
i’m currlently on disabillty [blind] i only have 17 yrs of service how would that effect my monthly check and my medicale
Janice,
For answers to your individual questions regarding disability, please contact OPERS Member Services at 800-222-7377.
–Ohio PERS
What is the difference between a “Original Disability recipient” and a “Revised Disability recipient”?
Shireley,
OPERS administers two disability plans. The original plan includes those who had OPERS membership prior to July 29, 1992, and who had not opted for the revised plan, which includes all members hired on or after July 29, 1992.
In the early 1990s, Ohio Sen. Howard Metzenbaum had federal law changed so that age could no longer be a factor in determining eligibilty for disability benefits. In response, the Ohio legislature created the revised plan, which does not subject applicants to an age restriction. Instead, the duration of the disability benefit is limited based on the age of the applicant at the time the benefit commences.
–Ohio PERS
I retired 11/1/2005 Group B with 33 years {OPERS Non-SS eligible} I became fully permantantly disabled in June 2007. Should I request Medicare eligibility now or will doing so require swapping OPERS pension (Gross $54303.29/month) for SS & SSI {total $88 &598/month rewspectively}?
Frederick,
Your message is unclear. We don’t grant disability benefits after retirement, and we’re not sure what you mean about “swapping” an OPERS pension benefit once you’ve already been receiving it. Your best bet is to call our Member Services department at 800-222-7377.
–Ohio PERS
Help me understand. A member in Group A who was 59 years of age when their disability became effective has 10.25 years of contributing service, has purchased 5.00 years of military service and has 6.00 years of revised disability time is scheduled to convert to an age and service benefit on July 1, 2013. Am I to understand that the member will be eligible for health care because of their 10.25 years of contributing service? Also, how many years of service credit, as it applies to the health care allowance, do they have? Thanks for the assistance.
Frank,
Yes, that member would be eligible for health care with 10.25 years of service credit. The military time never counted toward health care (unless it was purchased prior to Jan. 30, 1981). As for the health care allowance, the minimum number of years on our new charts is 20, so it wouldn’t matter if the member had 10.25 years or 16.25 years.
–Ohio PERS
Michael,
I don’t if I’m a B. It says 65. Convert 10/25?
I’m 52. I’m barely making it now. Actually I’m not making it now.
Will I be subject to new disability definition?
My benefit says 10 years of service upon conversion but this doesn’t seem correct. I’m confused. Plus scared. Jeez people making 54k on disability. No wonder it’s crazy!
Rebecca,
We’re not exactly sure what your question is. Please call Member Services at 800-222-7377 and ask to talk with a counselor.
–Ohio PERS
I took a disability in 12-1-2005 with 21 1/2 years. How will the new codes effect me?
Kenneth,
Here is a link to a recent blog on disability changes:
http://perspective.opers.org/benefits/revised-disability-benefit-recipients-to-see-change/
–Ohio PERS
I retired on Psych Disability on 01-01-2006. I had 24 years, 2 months and two weeks service. I was 48 years and one day old on my retirement date. How will the changes effect my monthly retirement allowence and will I be forced to convert to the years of service and age at retirement plan at age 65
Phillip,
Pension law changes will not affect your current benefit. You will need to convert to an age-and-service-based retirement at the appropriate time depending on your transition group. As the blog stated, your conversion retirement benefit will be the greater of 45 percent of your final average salary (with time spent on disability included in the service credit portion of the calcualtion), or FAS times 2.2 percent times your years of conributing service. Contact Member Services for more information: 800-222-7377.
–Ohio PERS
“your conversion retirement benefit will be the greater of 45 percent of your final average salary (with time spent on disability included in the service credit portion of the calculation), or FAS times 2.2 percent times your years of contributing service.”
What happens with the COLA amount(s) that have been granted during the disability period when the conversion occurs?
Frank,
Disability recipients will retain the COLA while they remain on disability. But the post-conversion COLA will be based on the Consumer Price Index, because members receive a new benefit effective date when they convert from disability to an age-and-service pension. Remember that there is a five-year transition period, beginning now, during which the COLA will remain fixed at 3 percent.
–Ohio PERS
I am really, really upset that I had asked repeatedly how to change my member directed account to a traditional account and no one at OPERS was able to assist me with what I thought was a simple request. I had asked over the course of several years. I was even told once that the customer service rep “(is) not permitted to give me that information.” I became disabled at had to completely cash out my savings and have lost all of my service time. Now, I am heading back to an OPERS system and have lost everything. I now find out that I might have been eligible for disability benefits from a traditional account. I am very unhappy. I wish someone would have tried to take care of me the same way they would themselves want cared for at OPERS.
Quite a few people gave up a percentage of their retirement with the information that this would provide our spouses with insurance upon retiree’s death. This is not true now. We could use this extra dollars taken from us to pay for the upcoming premiums and lack of any insurance provided by OPERS for spouses in the very near future. Due to the misinformation provided to retirees regarding spousal coverage upon retirees death, now no longer true, we should have the option of rescinding the percentage taken from our retirement. Most of us did this only due to medical coverage not because spouse would receive part of the retirement pension. We will need this extra dollars to pay for our current insurance changes. I am 68 yhears old and seriously doubt I have much chance of returning to the work place. Being able to collect my Social Security, which I am also vested in, would also help. How sad we had to give that up also. Wasted 16 years of my life working under Social Security.
I have a question about my 1099R. Box 7 should be 3 according to everything I have read. Since I have been receiving disability Box 7 has a 2, and I have topay taxes on my disability. Is this so? I also have a question about whether m y spouse will receive benefits and insurance after I am deceased. Please don’t tell me to call 1-800-222-8377 I spent hours trying to get answers to the above questions. There must be a way to handle those phone calls. People are already upset when they call, then when they get hung up on or told to call and other number that leads right back. Just a little constructive critisim.
Dave,
We can’t answer detailed questions about our members’ tax situations in this blog. A tax advisor should be able to provide an explanation of distribution codes, as defined by the Internal Revenue Service.
We can tell you, though, that a member’s spouse will not “step into the shoes” of the member upon the member’s death regarding health care. Please consult the Comprehensive Guide on our website for more information.
–Ohio PERS
I would like to know what the difference is in those deemed Disability Group A, B, and C? What is the explanation for these labels? Does is deal with the type of retirement plan we were in or whether or disability’s were deemed as on the job injuries, I am confused by this label, if someone could please explain.
Thank you!
Shawn
Shawn,
Groups A, B and C refer to the transition groups we created for pension redesign. They are not specific groups of disability recipients.
–Ohio PERS
My wife is on disability. The distribution code is a 2 because OPERS said they do not define disability or certify it the same way the IRS does. The two systems do not talk apparently and based upon that I cannot figure how anyone in Ohio could get a code of 3 on their form. Question 1- Is that true. Is it impossible to be coded that way in OPERS. That is what I was told…. On her statement It says disability payment at the bottom but coded a two. That would mean we pay fed taxes on it but ohio asks me if any of my income reported was the result of a disability. To me that is a yes as Ohio says she is disabled. Do I pay ohio state taxes on an OPERS code 2 disability payment?
Jason,
Give our Member Services department a call regarding your detailed question: 800-222-7377.
–Ohio PERS
It is difficult to get any answers so I am going to ask one simple yes or no question. Does anyone who receives an OPERS disability payment receive a 3 coded on their statement?
Frank, above, used the following quote and was not corrected. “your conversion retirement benefit will be the greater of 45 percent of your final average salary (with time spent on disability included in the service credit portion of the calculation), or FAS times 2.2 percent times your years of contributing service.”
Where does this quote appear? My understanding is that the conversion benefit is the LESSER of the two amounts, not the GREATER of the two amounts. I recently received my conversion information and it is the GREATER (not capped at 45%). So I am wondering which it is and whether my recent statement is correct or not. Where does Frank’s quote come from?
Chris,
We could have made the benefit scenario a little clearer in the earlier explanation. If the disability period is to be included in the years of contributing service, the total benefit cannot exceed 45 percent of FAS.
Here is how it is described in statute:
The greater of the following:
a) 2.2 percent of Final Average Salary multiplied by years of contributing service excluding the period during which the member was receiving a disability benefit; or
b) 2.2 percent of Final Average Salary multiplied by years of contributing service including the period during which the member was receiving a disability benefit, not to exceed 45 percent of the member’s FAS.
So it makes sense that your statement could reflect an amount not capped at 45 percent of FAS.
–Ohio PERS
I am on a disability with opers for about 2 years now,can i still take a service retirement at age 57 . I would like to outright retire so something would be left for my spouse.
Frank,
It’s possible to do so, but you likely will have to be deemed no longer disabled by your physician and have that decision supported by our medical advisers.
You begin by completing the OPERS self-termination process. The first step is to fill out a Disability Benefit Termination Request Form, which you may find here:
https://www.opers.org/forms-archive/DR-SELFTERMREQ.pdf
Then, you’ll have to have your doctor fill out the Report of Physician Form:
https://www.opers.org/forms-archive/DR-APS.pdf
Send those reports to OPERS, and we will proceed from there. For more specific information about this process, call Member Services at 800-222-7377.
– Ohio PERS
i have been out of work and on FMLA. i want to file for diability, however i am unsure if i will still be eligible for health insurance. and is my spouse covered if i go out on disability. i am in group A under the revised plan and i have 8.5 years of service. or should i wait until i have 10 years as i will still be within the 2 year limit to file for disability?
under revised plan i think i read that you need a minimum of 10 years to have health care coverage. why apply for SSI when on my statement it says i am not eligible for benefits because i did not pay into it for the last 8.5 years???
Mike,
You would be best served to give us a call to discuss all the details of your concerns. The number is 800-222-7377.
–Ohio PERS
I would like some type of information on filing for disability. Is there some type of packet you send out for me to file for?
Debrann,
The disability retirement application form (DR-1) is on our website. However, we suggest you begin by watching the informative disability benefits recorded presentation that’s on our website. You’ll find the link here:
https://www.opers.org/forms/formorder-member.shtml#disability
–Ohio PERS
I am so worried, I have only 4.4 years of service and had to have emergency back surgery which has left me disabled. It says I have to have 5 years, is there anything I can do?
Tiffany,
State law governing OPERS disability benefits requires 60 contributing months of service credit to be accumulated before members are eligible for the benefits. That’s a baseline that all members have to achieve.
–Ohio PERS