|PENSION ACCOUNT LOGIN | INVESTMENT ACCOUNT LOGIN||VOYA ADVISORY SERVICE | VOYA COMPARE ME | myOrangeMoney® | KEY TERMS|
Your retirement plan provides protection for you and your dependents if, while you are an active employee of a participating Michigan public school, you become totally and permanently disabled and unable to perform duties for which you are trained, educated, or experienced.
You may qualify for one of two types of disability retirement benefits depending on where you acquire your injury or illness.
Pension Eligibility Criteria
To qualify for a disability retirement, you must meet all of the following conditions:
Important Information: Effective September 4, 2010, if you are on an approved leave of absence, your termination date for retirement system purposes is the date two years after your employer last reported service credit for you. This termination date determines your application deadline.
How Pensions Are Calculated
Nonduty disability pension calculation
A nonduty disability pension is calculated the same as a regular service retirement pension — final average compensation (FAC) times 1.5 percent times years of service.
When you apply, you can choose the straight life option that pays you the most money but does not provide any ongoing benefits to a beneficiary when you die. Or you can elect a survivor option, which pays you less but continues pension benefits to your beneficiary upon your death. For more information about your pension payment options, click here.
Duty disability pension calculation
A duty disability pension is calculated the same as a regular service retirement pension. We always credit at least 10 years of service to calculate a duty disability pension, even if you have not worked for the public school system that long.
You are also able to choose a pension payment option. As in a regular service retirement pension, you can choose the straight life option, which pays you the most money but does not provide any ongoing benefits to a beneficiary when you die. Or you can elect a survivor option, which pays you less but continues pension benefits to your beneficiary upon your death.
Personal Healthcare Fund
If you have the Personal Healthcare Fund, you are not eligible for subsizided health, prescription drug, dental, or vision insurances through the retirement system.
You may enroll in the retiree health plan if you enroll immediately if your disability application is approved, but you will be responsible for the entire premium. If you disenroll from the plan at any time, you will not be able to re-enroll.
Premium Subsidy Benefit
If you are a member with the Premium Subsidy retiree healthcare benefit, you are eligible for subsidized group insurances, with the maximum subsidy allowed by law. If you chose a survivor option, your beneficiary and eligible dependents will also be eligible for insurance benefits upon your death.
The Application Process
File an application
Your application for disability retirement must be received within one year from the date of your termination from public school employment. (Again, you may get a 24 month extension if you are able to show extenuating circumstances.) Any application for disability retirement, regardless of when it is filed, must be for a condition that you incurred before your termination from public school employment.
Your first step to apply for a disability pension is to contact ORS and request a disability retirement packet. Along with an application form, the packet contains detailed information about insurances and pension options, as well as the forms needed to process your application.
You must sign the medical release forms that allow an independent medical advisor to obtain and review the medical records pertaining to the injury or illness that you believe prevents you from working. Once completed, you must send the forms to Disability Determination Services (DDS).
The disability determination
DDS is part of Michigan's Department of Human Services. DDS assists ORS in the disability application process by collecting and validating forms, obtaining and reviewing medical documentation, and providing expertise in determining medical eligibility to the retirement board.
If your application is approved
If DDS determines your medical condition meets the disability criteria, it will recommend to the retirement board that your application be approved. If the board agrees with the DDS evaluation, ORS will notify you of the approval. We will then process your application and insurance enrollments and you will receive your first pension payment four to six weeks after all required information is received. Your first payment will include any past due benefits as well.
If the board approves your disability retirement and you have not terminated your employment with your school yet, contact your human resource office immediately so your benefits are not delayed. If you do not terminate employment within 30 days of the board's decision, you may have to reapply.
If your application is denied
If DDS determines that your condition does not meet the medical requirements for a disability pension as defined in the retirement act, you will receive a denial letter. This letter will advise you of the steps you need to take if you disagree with this determination.
What to expect as a disability retiree
Your pension payments
Before your payments begin we will send you an award letter that tells you the amount of your pension and when you can expect your first payment. Pensions are issued on the 25th of each month.
As a disability retiree, every year until age 59 you will receive an Annual Disability Certification form that you must complete and return to ORS. This form verifies that you are still unable to work because of a disabling condition.
The retirement board may require that you have a medical reexamination. If a reexam finds you are capable of resuming employment and you are restored to active service, your disability benefits will stop.
If you return to work
If you return to employment, there is a limit on how much you can earn without affecting your pension. As a disability retiree, you can be employed only after receiving the approval of the retirement system, and you can earn up to the difference between your final average compensation and your annual pension without your pension being reduced. If you earn more than the limit, you will have to repay the excess amount to the retirement system (a dollar-for-dollar reduction in your pension). This limit applies until you reach the regular age and service pension requirements.