As a member of CalSTRS you may have disability protection under one of the CalSTRS disability benefit programs.

Disability benefits are available to you if you meet eligibility requirements, and you have a medically determinable physical or mental impairment that prevents you from performing your usual duties, your usual duties with reasonable accommodation, or duties of a comparable level position for which you are qualified or can become qualified for within a reasonable period of time with education, training or experience. The impairment must be permanent or expected to last at least 12 continuous months.

Before Filing a Disability Application

Before you file for disability benefits, CalSTRS suggests you see a CalSTRS benefits counselor. A benefits counselor can provide details to help you make an informed decision. When scheduling an interview, inform the schedule coordinator you wish to discuss a disability application.

If you are 55 or older and have 25 or more years of service credit, it is especially important that you consult with a CalSTRS benefits counselor before completing a disability application in order to compare the differences between disability and service retirement benefits.

Reasonable Accommodation

Sometimes adjustments in the work environment can enable a member to continue working. Federal and state laws require employers to make reasonable adjustments for employees. Making such adjustments is known as reasonable accommodation. CalSTRS may also require you to request reasonable accommodation from your employer.

Examples of reasonable accommodation include employing a teacher’s aide, changing your grade level or subject assignment, improving your classroom or parking assignment, relieving you from yard duty and assigning you to other positions you are qualified for.

If you have questions about reasonable accommodation, contact your school district, or call CalSTRS at 800-228-5453.

Filing a Disability Benefit Application

How to File

To request a disability application packet, call us at 800-228-5453, write to CalSTRS or request a packet online.

All application documents should be sent by certified mail with a return receipt requested.

When to File

You can file an application while you are working or receiving sick leave or differential pay benefits from your employer. The effective date of disability benefits cannot be earlier than the first day of the month in which CalSTRS receives the application, but must be later than the last day of service for which you are paid.

CalSTRS encourages you not to wait until all benefits are exhausted before filing for disability benefits.

You can also file an application while you are not working if you meet one of the following conditions:

• You have been physically or mentally incapacitated from performance of service and the incapacity has been continuous from your last day of actual performance of service for which compensation is payable.
• You have applied within four months of termination of your CalSTRS-covered employment.
• You have applied within four months of your last day of actual performance of service if you are on a personal leave of absence.
• You have applied within 12 months of your last day of actual performance of service if you are on an employer-approved leave to study at an approved college or university.

For a complete text, please refer to Education Code Sections 24002 and 24102 (timing and/or conditions for application) and 24001 and 24101 (application for disability).

For more information, please contact a CalSTRS benefits counselor or call CalSTRS.

CalSTRS encourages conservators, guardians or others caring for a CalSTRS member physically or mentally incapacitated to contact us to inquire if the member may qualify for disability benefits.

Service Retirement Pending Disability

Beginning January 1, 2008, if you are eligible for a CalSTRS service retirement, you may apply to receive that retirement benefit while we evaluate your disability application. This option can provide you with monthly retirement income while your disability application is pending. Please contact us for information.

Time Frame for Processing a Claim

The length of processing time varies from one to six months depending on individual cases.

Medical information, including additional professional opinions, may be required to make a final determination.

You can help CalSTRS by filing a complete application, including relevant physician and hospital reports, and promptly providing any other required documentation.

Do not wait to file your application because you do not have your medical documents.

Information to Provide

If you believe you are eligible to file for benefits, you will need to provide information, including medical records and hospital reports.

You are responsible for any fees charged by your medical provider for providing information to CalSTRS.

If additional medical information is necessary, an Independent Medical Examination may be scheduled for you. CalSTRS will notify you if this is necessary, and CalSTRS will pay for the examination and any reasonable related costs.

Independent Vocational Evaluation

An Independent Vocational Evaluation may be required to determine if you can perform your essential core duties at a comparable level. Duties of a comparable level are defined as any job that a member may be qualified to perform that will provide earnings of 66 2/3 percent or more of the member's indexed final compensation.

The Independent Vocational Evaluation usually begins with an interview with a vocational consultant. The consultant will discuss your job history and residual functional capabilities and limitations. Your employer may be interviewed to determine if your job can be modified and to see if reasonable accommodation would allow you to continue working.

Notification

You will receive written notification once CalSTRS reaches a decision on your disability application.

Approval

If your disability application is approved and you are still performing creditable service, you must cease on-the-job employment before CalSTRS can begin paying your benefits. Notification of your approval will also be sent to your employer.

Once notified of approval, you should receive your first disability payment within 45 days after CalSTRS receives all necessary information. The payment will include any retroactive disability payment amounts due.

After receipt of this first payment, you will receive a regular disability payment on or about the first of each month.

Prescribed Treatment Program

If your disability is amenable to treatment that could allow you to perform your usual duties or those of a comparable level, you may be required to participate in a Prescribed Treatment Program developed by your attending physician.

Limited-Term Disability Benefits

If your condition is expected to improve with mental, physical or vocational rehabilitation, you may be approved for limited-term disability benefits.

These benefits are granted for a specific time period. CalSTRS can renew them if your condition does not improve.

Vocational Rehabilitation Program

The CalSTRS Rehabilitation Program may provide services to members receiving a disability benefit.

If CalSTRS determines that you are a potential candidate for the Rehabilitation Program, an Independent Vocational Evaluation will be conducted to assess your current capabilities and limitations. The consultant will also discuss your career interests and help you develop a rehabilitation plan with the goal of helping you return to comparable level employment.

You are required to make a good-faith effort in developing a rehabilitation plan.

Upon development and approval of your plan, CalSTRS will pay reasonable costs for tuition, fees, books and supplies related to a college or vocational training program, transportation, job placement assistance and other activities that prepare you to return to comparable level employment.

Your allowance will not be terminated if your medical condition worsens and you cannot continue your vocational rehabilitation program.

Disapproval

If your disability application is not approved, you will receive a letter explaining the reasons and your right to reapply, request a review or appeal.

Reapply

You will be told that you can reapply and submit additional information that supports your original application.

Your benefit effective date will then be based upon the receipt date of your second application or your last day of compensation, whichever is later.

Executive Review

You will be told that you can request an Executive Review of your claim. An Executive Review is an internal, higher level review of your application and the original decision.

Right to Appeal

If you are not satisfied with the outcome of the Executive Review, you may request an administrative appeal.

Who hears the appeal?

• Office of Administrative Hearings

Appeals are processed through the Office of Administrative Hearings, a governmental agency independent of CalSTRS.

You may represent yourself or hire an attorney to represent you at the hearing. An administrative law judge hears all evidence related to the case and issues a proposed decision to the Teachers’ Retirement Board.

• Teachers’ Retirement Board

The board can adopt or reject the decision of the administrative law judge. If you are dissatisfied with the decision of the Teachers’ Retirement Board, you can appeal its decision to a Superior Court.

Steps in the Disability Process

1. Request an application packet from CalSTRS.
2. Send the application and any pertinent documents to CalSTRS, using certified mail, return receipt requested. The date that the application is received at CalSTRS establishes the benefit effective date.
3. CalSTRS receives and acknowledges receipt of your disability application and other documents you submit.
4. CalSTRS reviews application and your eligibility status and mails medical requests and other necessary documents to you.
5. CalSTRS awaits receipt of information and sends follow-up requests for missing documents.
6. CalSTRS will notify you if an Independent Medical Examination and/or Independent Vocational Evaluation needs to be scheduled.
7. CalSTRS reviews all data on file and determines approval or disapproval.
8. CalSTRS sends notification of decision to you.

Coverage A or Coverage B

You are protected for disability under either Coverage A, Disability Allowance or Coverage B, Disability Retirement.

If you became a CalSTRS member after October 15, 1992, you are protected under Coverage B. If you were a CalSTRS member before that date, you remain in Coverage A unless you elected Coverage B during the election period.

Your Retirement Progress Report (formerly Annual Statement of Account) will show which disability coverage you have or, if you are not certain of your coverage, you can call CalSTRS at 800-228-5453.

Coverage A - Disability Allowance Program

The information in this section is for individuals who became members of CalSTRS before October 16, 1992, and did not elect Coverage B.

A member receiving Disability Allowance, Coverage A is not considered retired. You are considered a disabled member of CalSTRS. The benefit will continue to be paid as long as you remain disabled or until you reach age 60.

At age 60, the disability allowance will be terminated, and you will be eligible to apply for service retirement. A disability allowance may continue beyond age 60 only if you have eligible children and remain disabled.

Coverage A - Eligibility Requirements

To apply for a disability allowance you must meet the following requirements:

• Age. You must be under age 60
• Service credit. You must have five or more years of credited service. Four of the five years of credit must be for actual performance creditable service. At least one year of service must have been earned after the date of your most recent reinstatement to membership:
• After receiving a disability benefit,
• Following a service retirement, or
• Following the most recent refund of your accumulated contributions, if applicable.

Your last five years of credited service must have been performed in California.

You may be eligible for a disability allowance with one year of credited California service if you are disabled due to an unlawful act of bodily injury committed by another person upon you while you were working in CalSTRS-covered employment. If you believe this circumstance applies to you, contact CalSTRS or a benefits counselor for more information.

Calculating Coverage A – Disability Allowance

The disability allowance for most applicants is 50 percent of final compensation.

Final compensation for a full-time employee is generally the highest average monthly compensation earnable by a member during any period of three consecutive years (36 consecutive months). For a member with 25 or more years of credited service, final compensation is the highest 12 consecutive months.

For periods of part-time employment (i.e., hourly, substitute, daily salaries), final compensation may be computed using actual salary earned during that period. Contact CalSTRS for more information.

Alternative Formula – Coverage A

An alternative formula is used for members who have fewer than 10 years of service credit and who become disabled between the ages of 45 and 60. The disability allowance formula for these members is five percent of final compensation for each year of credited service.

Other Benefits that Affect Your CalSTRS Disability Allowance

Your monthly CalSTRS benefit, including the amount received for a dependent child, will be reduced by the full amount paid or payable from other public systems.

Other public systems include:

• Workers’ compensation
• Social Security disability
• Federal military disability
• Income protection plans (if premiums were paid by the school employer, not by the member), and any other disability program financed with public funds.

Coverage A - Increased Benefit for Dependent Children

If you have eligible children you will receive an additional 10 percent of final compensation for each child, up to a maximum of four children (or 40 percent). The maximum benefit payable to a member is 90 percent of final compensation.

A child is eligible if, on the date of the disability allowance, he or she is:

• The unmarried natural, adopted or stepchild of the member and not adopted by a person other than the member’s spouse or registered domestic partner,
• Born within the 10-month period commencing on the effective date of the member's disability allowance,
• Under 22 years of age and financially dependent upon the member

When a child is no longer under age 22, marries, registers as a domestic partner or dies, the monthly benefit will be reduced by that child’s portion.

Coverage A - Disability Allowance Worksheet

Final compensation must be determined before the monthly disability allowance can be calculated. Service credit is not a factor in the determination of the disability allowance, except when determining the monthly benefit under Coverage A when a member has fewer than 10 years of service credit and is between the ages of 45 and 60.

Disability Allowance Examples
Regular (50 percent Formula)

Charles is granted disability benefits with a benefit effective date of July 1. He has 14 years of service credit. Charles has one eligible child and receives $300 a month from workers’ compensation.

Coverage A - Alternative Formula

Sharon is granted disability benefits with a benefit effective date of January 1. She has service credit of 8.072 years and is between age 45 and 60. She has two eligible children and receives $300 a month from workers’ compensation.

Coverage A - Earnings Limits

How much income can I earn and still receive a disability allowance?

You are allowed to earn money while receiving a disability allowance. CalSTRS recognizes it can be useful for you to begin with part-time or limited employment as you return to teaching or other employment.

The law establishes two separate earnings limits for members receiving a disability allowance: a single-month earnings limit and a six-month earnings limit. The earnings limits are initially based on your final compensation.

Each year an index factor, developed from the average salary increase of all CalSTRS active members, is used to determine indexed final compensation. Indexed final compensation serves as a measure of current salaries.

Coverage A - Single-Month Earnings Limit

The sum of your base disability allowance, plus your earnings from all employment, is compared to your indexed final compensation. A comparison is made to determine if your earnings have exceeded the single-month earnings limit.

If the earnings exceed the limit, the excess amount is considered an overpayment and CalSTRS must collect it back dollar for dollar.

Coverage A - Six-Month Earnings Limit

CalSTRS makes a separate calculation, which compares your earnings to 66 2/3 percent of your indexed final compensation.

If you are able to earn 66 2/3 percent of the indexed final compensation from employment earnings over a continuous six-month period, you are no longer considered disabled. Your disability allowance will be terminated and any benefit payments made after this period will be recovered by CalSTRS.

Annual Report of Earnings

You are required to provide an annual report of your gross earnings to CalSTRS. The Employment Development Department and your employer provide verification of the earnings you report to CalSTRS.

Periodic Review of Status

CalSTRS will review your medical and vocational status for continuing eligibility from time to time. This review may include:

• Periodic medical reports from your doctor
• Your annual earnings from all employment, if any
• An annual inquiry regarding other disability benefits

You should notify CalSTRS if:

• You return to employment or become self-employed
• You change your address
• Benefits you receive from another public agency change
• Your child marries or becomes a registered domestic partner
• Your child dies

It is important that you keep CalSTRS informed of events that may affect your benefit eligibility so that overpayment of benefits does not occur.

Coverage A - Pre-Retirement Election of an Option

You are not required to cancel a pre-retirement election of an option in order to be eligible for a disability allowance. In addition, after reaching age 55, you may make a pre-retirement election of an option while receiving a disability allowance. (A family allowance will not be payable if there is a pre-retirement election of an option in effect.)

This election is available if you want to ensure a monthly lifetime income to another person should you die prior to retirement.

Coverage A - What happens when I reach age 60?

Approximately six months before your 60th birthday, CalSTRS will notify you of the pending termination of the disability allowance and your eligibility to apply for service retirement.

The notification will include an estimate of your Member-Only service retirement benefit and a service retirement application packet.

Before calculating your service retirement benefit, CalSTRS will project your service credit through the duration of your disability. The final compensation used for the disability allowance will be projected forward at the rate of 2 percent per year. Your retirement benefit will be calculated using your actual and projected service credit and projected final compensation. You will receive either the service retirement benefit or the disability allowance you had been receiving prior to your 60th birthday, whichever is less.

You may also elect to modify the service retirement benefit by choosing one of the available options. If you had a pre-retirement election of an option before receiving your disability allowance, you can change your election if you convert to service retirement. However, if you do change, your retirement benefit will be reduced for life.

For more information, see Quick Topics message 426, “When does your Disability Allowance end and your Service Retirement begin?”

* For members with dependent children, termination of the disability allowance is postponed until the children are no longer eligible

Coverage B - Disability Retirement Program

The information in this section is for members who joined CalSTRS after October 15, 1992, and for individuals who elected Disability Retirement Coverage B during the election held between October 1992 and April 1993.

A member receiving a disability retirement benefit is considered retired from active status and does not receive service credit. Your benefit will continue to be paid as long as you remain disabled, without respect to age. If it is determined that you are no longer disabled, or you return to full-time employment, your disability retirement will be terminated and you will be reinstated to active membership.

Coverage B - Eligibility Requirements

To apply for a disability retirement benefit, you must meet the following requirements:

• Age. There are no restrictions
• Service credit. You must have five or more years of credited service. Four of the five years of credit must be for actual performance of creditable service.
  At least one year of service credit must have been earned after the date of your most recent reinstatement to membership:

1) after receiving a disability benefit 2) following a service retirement or 3) following the most recent refund of your accumulated contributions.

And

Your last five years of credited service must have been performed in California.

You may be eligible for a disability retirement benefit with one year of credited California service if you are disabled due to an unlawful act of bodily injury committed by another person upon you while you were working in a position performing creditable service in the DB program. If you believe this circumstance applies to you, contact CalSTRS or a benefits counselor for more information.

Coverage B - Option Beneficiary

An option is a plan feature that allows you to choose to distribute your disability retirement benefit over both your lifetime and the lifetime of a beneficiary you choose. An option provides a modified retirement benefit based on a percentage of the Member-Only Benefit. At the time you begin to receive a disability retirement benefit, you may elect an option if you wish to have a beneficiary receive a monthly income after your death. The amount of your modified benefit will depend upon your age and the age of your option beneficiary on your disability retirement effective date.

Option tables for disability are not included. For an estimate of your benefit and the benefit of your beneficiary under each of the options, CalSTRS recommends you contact a benefits counselor.

Coverage B - Disability Retirement Formula

How is the disability retirement benefit calculated?

The disability retirement benefit formula is 50 percent of final compensation. This is also referred to as the Member-Only Benefit.

Final compensation for a full-time employee is generally the highest average monthly compensation earnable by a member during any period of three consecutive school years (36 consecutive months) of credited service. One-year final compensation is available for eligible classroom teachers provided it has been included in a written collective bargaining agreement and all costs are paid by the employer, the employee or a combination of the two or 25 years of credited service.

A Member-Only Benefit is usually the highest monthly allowance available to a member receiving a disability retirement benefit. Upon your death, the benefit will stop. It does not provide for a monthly income to a survivor after your death.

Coverage B - Workers' Compensation

If a member receives both a CalSTRS disability retirement benefit and a disability benefit under a workers’ compensation program for the same impairment, the CalSTRS benefit will be reduced by an amount equal to the workers’ compensation benefit.

If you have eligible children, you will receive an additional 10 percent of final compensation for each child, up to a maximum of four children or 40 percent. The maximum benefit payable to a member is 90 percent of final compensation.

To qualify, your child must be financially dependent upon you on the effective date of your disability retirement benefit and must be under 21 years of age. The payment for children will continue until the day prior to the dependent child's 21st birth date, even upon your death, or on the day of death of the dependent child, whichever occurs first.

When your child no longer meets the eligibility requirements, the child will no longer receive payment.

Children’s CalSTRS benefits will not be affected by receipt of other benefits.

Coverage B - Disability Retirement Benefit Worksheet

Final compensation must be determined before your monthly benefit can be calculated. Service credit is not a factor in the determination of the disability retirement benefit.

If you have selected a disability retirement option, your Member-Only Benefit will be adjusted, depending on the option you have chosen.

Disability Retirement Example

Jack is granted benefits with an effective date of September 1, 1998. He has elected to receive a Member-Only Benefit.

Coverage B - Earnings Limit

You are allowed to earn money while receiving a disability retirement benefit. CalSTRS recognizes that it can be useful to begin with limited employment as you return to teaching or other employment.

However, your earnings from all types of employment, including self-employment, are subject to an earnings limit, unless you are enrolled in an approved rehabilitation plan.

How Much You Can Earn and Still Receive
a Disability Retirement Benefit (Coverage B)

Your CalSTRS disability retirement benefit will be reduced dollar-for-dollar by the total amount of earnings from all employment in excess of the 12-month calendar year limit.

You will be required to provide CalSTRS with an annual report of your gross earnings from all employment. The Employment Development Department and your employer(s) verify the reported earnings.

The 2008 calendar year earnings limit is $25,050. The limit is determined early each calendar year.

Periodic Review of Status

CalSTRS will review your medical and vocational status for continuing eligibility on a periodic basis.

This review will include:

• Medical reports from your doctor
• Your annual earnings from all employment, if any
• An annual inquiry about other disability benefits

You should notify CalSTRS if you:

• Return to employment or become self-employed
• Change your address
• Receive a change in benefits you receive from workers’ compensation

It is important that you keep CalSTRS informed of events that may affect your benefit eligibility so that overpayment of benefits does not occur. Failure to respond to requests for information could result in the termination of benefits.