Big Changes May Be Ahead for CalPERS Disability Retirement
The California Public Employees’ Retirement System (CalPERS) is currently proposing a number of significant changes to the California Public Employees’ Retirement Law (PERL) that will have a substantial impact on CalPERS disability retirement benefits.
These changes would affect the eligibility requirements for disability retirement, the calculation of disability retirement benefits, and the process for appealing disability retirement decisions. They would also create a new category of disability retirement for mental illness, establish a new review process, and provide more information to employees about the disability retirement process.
While some of these proposed changes are CalPERS member-friendly, others are clearly designed to cut costs by making disability retirement benefits harder to collect under certain circumstances.
In this article the specialized disability retirement lawyers at Cantrell Green explain the six big changes to CalPERS / PERL law that are currently being discussed.
#1. Tightening CalPERS Disability Retirement Requirements
These proposed changes would tighten the eligibility requirements for disability retirement. For example, the proposed changes would require that employees have a longer period of continuous service before they can be eligible for disability retirement.
This is definitely NOT a member-friendly change. The proposed changes to the eligibility requirements are intended to reduce the number of people who are eligible for disability retirement. CalPERS believes that the current eligibility requirements are too lenient and that they allow too many people to collect disability retirement benefits who are not truly disabled.
#2. Reducing CalPERS Disability Retirement Benefits
This proposed changes would change the way that disability retirement benefits are calculated. For example, the proposed changes would reduce the amount of benefits that are based on an employee’s final salary.
CalPERS believes that the current calculation of benefits is too generous and that it costs too much money. So, the proposed changes to the calculation of benefits are intended to reduce the cost of disability retirement benefits.
#3. Shortening CalPERS Disability Retirement Appeals Time
CalPERS is also considering changed changes would make it more difficult for employees to appeal disability retirement decisions, by shortening the time period in which an employee can appeal a decision.
CalPERS believes that the current appeal process is too lenient and that it allows too many employees to win their appeals. The proposed changes to the appeal process are intended to make it more difficult for employees to win their appeals.
#4. Creating a New CalPERS Disability Retirement Category for Mental Illness
Currently, there is no specific category of disability retirement for employees who are unable to work due to a mental illness. Instead, these employees must file for disability retirement under the same category as employees who are unable to work due to a physical illness. This can be difficult for employees with mental illnesses, as their symptoms may not be as easily documented as the symptoms of physical illnesses.
The proposed change would create a new category of disability retirement specifically for employees who are unable to work due to a mental illness. This would ideally make it easier for these employees to file for disability retirement and to receive the benefits they need.
#5. A New Review Process for CalPERS Disability Retirement Claims
The current process for reviewing disability retirement claims is lengthy and complex. This can make it difficult for employees to get their claims processed in a timely manner.
The proposed change would establish a new, allegedly streamlined process for reviewing disability retirement claims. This new process would be more efficient and would hopefully help to speed up the processing of CalPERS disability retirement claims.
If enacted, this could help to ensure that employees receive the benefits they need in a timely manner – while also saving CalPERS money by implementing a more efficient system.
#6. Providing More Information to Employees about CalPERS Disability Retirement Process
This proposed change would mandate providing more information to employees about the CalPERS disability retirement process. This information would be available online and in print. It would explain the eligibility requirements, the calculation of benefits, and the appeal process.
The possible outcome of this proposed change is that employees would be more informed about the disability retirement process – helping them to make informed decisions about when and how to file for disability retirement. It would also be aimed at helping CalPERS members navigate the disability retirement process more easily.
CalPERS Disability Retirement Lawyers
It is important to note that these proposed changes are still in the early stages – and it is not yet clear whether they will be adopted. However, if they are adopted, our lawyers would like to emphasize that they will have a significant impact on the way that CalPERS disability retirement is administered in California.
According to CalPERS, the changes to disability retirement program are intended to improve the way that the program is administered and to ensure that employees who are truly disabled receive the benefits they need – while also cutting the costs of the program.
But while some of these changes would make it easier for employees to file for disability retirement and/or help to have their claims processed more quickly – other changes will reduce eligibility and benefits, as well as make filing some claims and appeals more difficult.
One this is clear though: Disability retirement law can be complex, and the application or appeals process can be confusing. Our skilled and experienced CalPERS disability retirement lawyers have been helping public employee union member collect the benefits to which they are entitled for decades – and have collected millions of dollars for our clients.
If you have questions about collecting disability retirement under CalPERS or any other California public employee’s union, call our experienced lawyers today. We will help you understand your rights and ensure that you collect the maximum disability retirement benefits for which you qualify.
Free Consultation with a Disability Retirement Attorney: 562-622-4800
This article applies to members of California Public Employees’ Retirement System (CalPERS); and does not reflect the rules, laws or regulations governing how other public retirement systems are administered. If you have question about another public employee retirement system, find your system, below – or call our attorneys at: 562-622-4800
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