California Disability Retirement & Vocational Rehabilitation
In this article the attorneys at Cantrell Green explain vocational rehabilitation under California disability retirement law, and the major public employee unions including CalPERS, OCERS, and LACERA.
What Is Vocational Rehabilitation?
Vocational rehabilitation is a service that can help employees who are disabled to return to work. Vocational rehabilitation counselors can help employees develop new skills, find new jobs, and adjust to the challenges of working with a disability.
Under California disability retirement law, vocational rehabilitation is not mandatory for disabled workers seeking to retire. In other words, if a worker is eligible to take disability retirement according to their benefits system, they cannot be forced to undergo vocation rehabilitation.
However, if an employee is interested in pursuing vocational rehabilitation, they may be eligible for services from the California Department of Rehabilitation (DOR) and/or vocational rehab services from their public employee union such as CalPERS, OCERS, LACERA, and others.
California Department of Rehabilitation (DOR) Vocational Rehabilitation
The DOR provides a variety of services to help disabled workers, including job search assistance to help employees find new jobs that are suitable for their abilities and that that match their skills and interests.
California Department of Rehabilitation can also provide training to help employees develop new skills. And the DOR can help employees find jobs. In many cases, the DOR can also provide financial assistance to help employees pay for training, job search expenses, and other costs associated with returning to work.
Pubic Employee System Union Vocational Rehabilitation
The major public employee unions in California include:
- CalPERS: CalPERS is the California Public Employees’ Retirement System. It is the largest public pension fund in the United States.
- OCERS: OCERS is the Orange County Employees’ Retirement System. It is the second largest public pension fund in California.
- LACERA: LACERA is the Los Angeles County Employees’ Retirement System. It is the third largest public pension fund in California.
These unions provide a variety of benefits to their members, including pensions, health insurance, and retirement benefits. Public employee unions negotiate specific retirement benefits for their members that are usually more comprehensive than non-union workers, including disability retirement, survivor benefits, and death benefits.
Public employee system (CalPERS, OCERS & LACERA, etc.) typically offer vocational rehabilitation services that may be more extensive than vocational rehab provided by the California Department of Rehabilitation (DOR).
Qualifying for Vocational Rehabilitation Under CalPERS, OCERS & LACERA
CalPERS, OCERS, and LACERA all offer a variety of vocational rehabilitation services to its members, including:
- Job search assistance: help members find new jobs that are suitable for their abilities.
- Training: provide training to help members develop new skills.
- Job placement: help members find jobs that match their skills and interests.
- Financial assistance: provide financial assistance to help members pay for training, job search expenses, and other costs associated with returning to work.
To be eligible for vocational rehabilitation services from CalPERS, OCERS, LACERA, and many other public employee systems, members must meet the following requirements:
- Be a current member of the public employee system.
- Be disabled and unable to return to their previous job.
- Be willing to participate in the rehabilitation process.
What if My New Job Pays Less After Vocational Rehabilitation?
If an injured/disabled CalPERS, OCERS & LACERA employee undergoes vocational rehabilitation training but the new work they find pays less than their old job, they may be eligible for a benefit called “loss of earnings.” Loss of earnings is a benefit that is designed to help employees who have lost income due to a disability. The amount of loss of earnings benefits can vary depending on the employee’s income and the severity of their disability.
To be eligible for loss of earnings benefits, employees must meet the following requirements:
- Be a current member of CalPERS, OCERS, or LACERA.
- Be disabled and unable to return to their previous job.
- Have a new job that pays less than their previous job.
- Be willing to participate in the rehabilitation process.
If an employee meets the eligibility requirements, they can apply for loss of earnings benefits by submitting a claim to their respective retirement system. The retirement system will review the claim and make a decision on whether or not to approve the benefits. If the claim is approved, the employee will receive loss of earnings benefits for a period of time, depending on the severity of their disability. The benefits will typically be paid monthly.
It is important to note that loss of earnings benefits are not a permanent solution. The goal of vocational rehabilitation is to help employees return to work and earn a living. If an employee is able to find a new job that pays as much or more than their previous job, they will no longer be eligible for loss of earnings benefits.
Vocational Rehabilitation & Disability Retirement
If you are a public employee who is considering applying for vocational rehabilitation, you should speak with a union representative to discuss your options. The union representative can help you understand the requirements for vocational rehabilitation under the system you belong to and the benefits that are available to you.
Remember, vocational rehabilitation is not mandatory if you are collecting disability retirement. However, for many injured workers vocational rehab provides both a source of income and a sense of accomplishment as they recover from their injury or disability.
Retirement Disability Attorneys
If you are injured on the job close to the time you intend to retire, our experienced Retirement Disability Attorneys would be happy to help you determine your eligibility for disability retirement and related benefits such as vocational rehabilitation under CalPERS, OCERS, LACERA or other system.
Free Consultation with a Retirement Disability Attorney: 562-622-4800
This article applies to members of CalPERS, OCERS, LACERA; and may 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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