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Disability Retirement Document
This document has been prepared for members of the Public
Employees' Retirement System of Nevada to provide general information.
It is based on retirement law effective from the 71st session of the
Nevada Legislature, 2001. This is not a legal document, nor is it
intended to serve as a basis for legal interpretation. Official
legal reference may be found in the Nevada Revised Statutes.
Disability Retirement Eligibility
Eligibility to apply for disability retirement is established if:
- The member has five or more years of service credit in PERS; and
- The member becomes totally unable to perform his current job or a
comparable job due to an injury or mental or physical illness of a
permanent nature; and
- The member is in the employ of a Nevada public employer at the
time of application for disability retirement.
Application Procedure
The member should contact the PERS office directly or through the
employer's personnel or liaison officer. PERS will forward an
application, an estimate of disability benefits and other instructions.
The form entitled "Disability Retirement Application Form" must be
completed by the member and received by PERS prior to termination
of employment. This form should be completed and submitted to the PERS
office first. Part II must be completed by the personnel or liaison
officer. Part III must be completed by the member's immediate
supervisor. Part IV is to be completed by the member's personal
physician. If the member has more than one physician, a photocopy
of Part IV can be distributed to as many physicians as applicable.
In addition to the physician's reports, PERS requires medical
documentation be submitted to support the member's diagnoses. Proof
of birth date and continuity of name change documentation for the
member and the named beneficiary are also required.
Receipt of any portion of an application for disability retirement
will be acknowledged in writing by PERS. The member will have 45
calendar days from the date of acknowledgement to finalize his
application. If the completed application has not been received within
this time frame, PERS will return the parts of the application that
are on file.
A member may reapply any time as long as the application is submitted
in its entirety at one time.
Board Review
Once the completed application is received, it will be reviewed
by PERS staff and medical advisor. It will then be presented to the
Retirement Board in a closed meeting for final determination. The
member will be notified within five working days after the meeting
as to whether or not his application was approved.
The Retirement Board meets on a monthly basis. To assure timely
consideration by the Board, the application should be received in the
PERS office by the 15th day of the prior month. Assuming that
documentation is sufficient for a recommendation by PERS' medical
advisor, an application is reviewed by the Board at the following
months meeting.
If the Board denies a member's application for disability benefits,
the following options are available:
- Application to the Board within 45 days for one reconsideration.
New medical information which was not available or the existence of
which was not known at the time the Board originally considered the
application must be submitted prior to the hearing.
- Elect service retirement if a regular member is 65 years or older
with five or more years of service, 60 years or older with 10 or more
years of service, or at any age with 30 or more years of service. If
a police/fire member, elect service retirement if 65 years or older
with five or more years of service, 55 years or older with 10 or more
years of police/fire service, 50 years or older with 20 or more years
of police/fire service or at any age with 25 or more years of
police/fire service.
- Elect early service retirement with a third of one percent
reduction for each month the member is under the regular retirement age.
- Terminate from employment and apply for a refund of personal
contributions, if any.
When the Board approves the member's application for disability
benefits, the member must terminate employment and begin drawing a
benefit within 60 days after the date of approval or remain on sick
leave for the entire period from date of approval through termination.
Otherwise, he would have to reapply to the board and be reapproved.
Benefits
The factors used in calculating a disability benefit are as follows:
- Service Credit - A member receives 2.5 percent of his average
compensation for each year of service earned before July 1, 2001 and 2.67% for each
year of service earned after July 1, 2001, up to 36 years (maximum of 90
percent) if he was a member as of July 1, 1985. If PERS membership was established
after July 1, 1985, the member earns a maximum of 75 percent of average compensation with
30 years of service.
- Average Compensation - The average of the member's highest 36
consecutive months of salary as reported by his employer.
- Age - The member's age and his beneficiary's age at the
time of retirement are used to establish the actuarial factor to calculate
the various options.
Retirement Plans - Prospective retirees can choose one of seven plans upon retirement.
- Unmodified Retirement Allowance (Option 1) - Provides the retired
employeeSince Options 6 and 7 are based on an amount which you specify,
we do not normally provide an estimate for these options. If you wish
to provide for a set amount to go to your beneficiary, contact the
PERS Benefits Division and indicate the amount. We will be happy to
provide an estimate for these options. with the maximum retirement
allowance for his lifetime. Upon the retiree's death, the benefit
discontinues and no monthly allowance is provided for a beneficiary.
If the retired employee was receiving his benefit under the police/fire
fund, his spouse would receive 50 percent of the benefit that was
based on creditable police/fire service as long as the spouse was
married to the member at the time of retirement and is age 50. If
the beneficiary is not age 50 at the time of the retired employee's
death, the beneficiary would have to wait until age 50 to begin
receiving a benefit.
- Option 2 - Provides an actuarially reduced allowance for the
lifetime of the retired employee. After the retired employee's death,
the same allowance continues for the lifetime of the beneficiary.
- Option 3 - Provides an actuarially reduced allowance for the
lifetime of the retired employee. After the retired employee's death,
50 percent of the allowance continues for the lifetime of the beneficiary.
- Option 4 - Provides an actuarially reduced allowance for the
lifetime of the retired employee. After the retired employee's death,
and beginning when the beneficiary reaches age 60, the same allowance
continues for the lifetime of the beneficiary.
- Option 5 - Provides an actuarially reduced allowance for the
lifetime of the retired employee. After the retired employee's death,
and beginning when the beneficiary reaches age 60, 50 percent of the
allowance continues for the lifetime of the beneficiary.
- Option 6 - Provides an actuarially reduced allowance for the lifetime
of the retired employee. After the retired employee's death, a specific
sum per month, as selected by the retired employee, will continue for
the lifetime of the beneficiary. This amount may not exceed the monthly
allowance paid to the retired employee.
- Option 7 - Provides an actuarially reduced allowance for the
lifetime of the retired employee. After the retired employee's death,
and beginning when the beneficiary reaches age 60, a specific sum per
month, as selected by the retired employee, will continue for the
lifetime of the beneficiary. This amount may not exceed the monthly
allowance paid to the retired employee.
Since Options 6 and 7 are based on an amount which you specify, we do
not normally provide an estimate for these options. If you wish to
provide for a set amount to go to your beneficiary, contact the PERS
Benefits Division and indicate the amount. We will be happy to provide
an estimate for these options.
Examples
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This example assumes you have 15 years of service and an average
monthly compensation of $1,500 per month. For the purpose of
determining the actuarial reduction for Options 2 through 5, we will
assume that you are 60 years old with a 55-year- old beneficiary.
Service Credit = 15 years x 2.5%* = 37.5%
Average Compensation = $1,500
Unmodified Allowance = $562.50
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Monthly Benefit
You will receive
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Monthly Amount
Beneficiary Will Receive
After Your Death
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Unmodified
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$562.50
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$ - 0 -
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Option 2
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$470.81
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$470.81
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Option 3
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$512.44
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$256.22
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Option 4
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$474.75
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$474.75
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Option 5
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$514.69
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$257.34
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Option 6
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$494.34
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$350.00
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Option 7
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$497.81
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$350.00
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*For service credit earned after July 1,
2001, a 2.67% multiplier will be used.
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This example assumes you have 7 years of service and an average
monthly compensation of $1,500 per month. For the purpose
of determining the actuarial reduction for Options 2 through 7,
we will assume that you are 43 years old with a 40-year-old beneficiary.
Service Credit = 7 years x 2.5%* = 17.5%
Average compensation = $1,500
Unmodified Allowance = $262.50
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Monthly Benefit
You will receive
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Monthly Amount
Beneficiary Will Receive
After Your Death
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Unmodified
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$262.50
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$ - 0 -
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Option 2
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$245.70
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$245.70
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Option 3
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$253.84
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$126.92
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Option 4
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$250.43
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$250.43
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Option 5
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$256.46
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$128.23
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Option 6
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$248.82
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$200.00
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Option 7
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$252.86
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$200.00
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*For service credit earned after July 1, 2001, a 2.67% multiplier
will be used.
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Restrictions
- A member must file an employment questionnaire each calendar
year by May 1 of the succeeding year.
- The Board may require medical examinations on an annual basis
until the disabled retired employee attains the equivalent of service
retirement eligibility.
- A disabled retired employee must apply for and receive Board
approval before returning to any type of employment either public or
private, or the disability benefit may be suspended.
- If a disabled retired employee returns to employment with a Nevada
public employer in a position eligible for membership in PERS', he
becomes a contributing member. All previous service credit is restored
to the membership account, the employee contribution less 15 percent
of the total disability benefits paid are returned to the
membership account, and the disability allowance is cancelled.
Answers to Frequently Asked Questions
Q - What type of benefit will my beneficiary receive should
I die prior to retirement?
A - If you have applied for disability retirement and die before
the application has been approved by the Board and the Board later
approves your application, your beneficiary is entitled to receive
an allowance under the option selected rather than the benefits
otherwise provided to a survivor. Also, if a member whose application
has been approved by the Board dies prior to termination, his
beneficiary is entitled to receive an allowance under the option
selected rather than the benefits otherwise provided to a survivor.
Q - If my application for disability retirement is approved,
what will be the effective date of my retirement?
A - Disability retirement becomes effective on the day
immediately following the applicant's last day of employment, or the
day immediately following the applicant's last day of service,
whichever is later, or the day after death, if death intervenes
between the filing of the application and retirement.
Q - If my application for disability retirement is
approved, will I be penalized for retiring prior to the minimum
retirement age?
A - No. Disability retirement allowances are computed in the
same manner as service retirement allowances without a reduction for age.
Q - Is there a possibility of my allowance being reduced
because I receive benefits from other sources?
A - Yes. Your disability allowance will be reduced by the
amount of any other benefit received from any source on account of
the same disability if that benefit was paid for by a Nevada public
employer and to the extent that the total of the unmodified benefit
and the other benefit would otherwise exceed the member's average
compensation. Workers compensation typically falls into this category.
Q - Am I still considered to be under disability retirement
after reaching age 60 or the equivalent of service retirement eligibility?
A - Yes. However, a disabled retired employee, if eligible,
may elect to change from disability retirement to service retirement
effective on the first of the month following the month that the
written request is received by the Retirement System.
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