2022 Kentucky Revised Statutes Chapter 78 - County employees' civil service and retirement 78.5528 Disability retirement allowance -- Reduction -- Discontinuance -- Medical examiners -- Hearings and appeals -- Early retirement upon discontinuance of disability allowance for member who began participating before January 1, 2014.
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78.5528
Disability retirement allowance -- Reduction -- Discontinuance -Medical examiners -- Hearings and appeals -- Early retirement upon
discontinuance of disability allowance for member who began
participating before January 1, 2014.
(1)
(2)
(3)
If the Authority's medical examiner determines that a recipient of a disability
retirement allowance is, prior to his or her normal retirement date, employed in
a position with the same or similar duties, or in a position with duties requiring
greater residual functional capacity and physical exertion, as the position from
which he or she was disabled, except where the recipient has returned to work
on a trial basis not to exceed nine (9) months, the system may reduce or
discontinue the retirement allowance. Each recipient of a disability retirement
allowance who is engaged in gainful employment shall notify the Authority of
any employment; otherwise, the system shall have the right to recover
payments of a disability retirement allowance made during the employment.
If the Authority's medical examiner determines that a recipient of a disability
retirement allowance is, prior to his or her normal retirement date, no longer
incapacitated by the bodily injury, mental illness, or disease for which he or she
receives a disability retirement allowance, the system may reduce or
discontinue the retirement allowance.
The system shall have full power and authority to reduce or discontinue a
disability retirement allowance and the Authority shall utilize the services of a
medical examiner as provided in KRS 61.665, in determining whether to
continue, reduce, or discontinue a disability retirement allowance under this
section.
(a) The Authority shall select a medical examiner to evaluate the forms and
medical information submitted by the person. If there is objective medical
evidence of a mental impairment, the medical examiner may request the
Authority's licensed mental health professional to assist in determining the
level of the mental impairment.
(b) The medical examiners shall be paid a reasonable amount by the
retirement system for each case evaluated.
(c) The medical examiner shall recommend that the disability retirement
allowance be continued, reduced, or discontinued.
1.
If the medical examiner recommends that the disability retirement
allowance be continued, the system shall make retirement payments
in accordance with the retirement plan selected by the person.
2.
If the medical examiner recommends that the disability retirement
allowance be reduced or discontinued, the Authority shall send
notice of the recommendation by United States first-class mail to the
person's last address on file in the retirement office.
a.
The person shall have sixty (60) days from the day that the
Authority mailed the notice to file at the retirement office
additional supporting employment or medical information and
certify to the Authority that the forms and additional supporting
employment information or medical information are ready to be
evaluated by the medical examiner or to appeal the
(d)
(e)
(f)
recommendation of the medical examiner to reduce or
discontinue the disability retirement allowance by filing at the
retirement office a request for a formal hearing.
b.
If the person fails or refuses to file at the retirement office the
forms, the additional supporting employment information, and
current medical information or to appeal the recommendation
of the medical examiners to reduce or discontinue the disability
retirement allowance, his or her retirement allowance shall be
discontinued on the first day of the month following the
expiration of the period of the sixty (60) days from the day the
Authority mailed the notice of the recommendation to the
person's last address on file in the retirement office.
The medical examiner shall make a recommendation based upon the
evaluation of additional supporting medical information submitted in
accordance with paragraph (c)2.a. of this subsection.
1.
If the medical examiner recommends that the disability retirement
allowance be continued, the system shall make disability retirement
payments in accordance with the retirement plan selected by the
person.
2.
If the medical examiner recommends that the disability retirement
allowance be reduced or discontinued based upon the evaluation of
additional supporting medical information, the Authority shall send
notice of this recommendation by United States first-class mail to the
person's last address on file in the retirement office.
a.
The person shall have sixty (60) days from the day that the
Authority mailed the notice of the recommendation to appeal
the recommendation to reduce or discontinue the disability
retirement allowance by filing at the retirement office a request
for formal hearing.
b.
If the person fails or refuses to appeal the recommendation of
the medical examiners to reduce or discontinue the disability
retirement allowance, his or her retirement allowance shall be
discontinued on the first day of the month following the
expiration of the period of the sixty (60) days from the day the
Authority mailed the notice of the recommendation to the
person's last address on file in the retirement office.
Any person whose disability benefits have been reduced or discontinued,
pursuant to paragraph (c)2. or (d)2. of this subsection, may file at the
retirement office a request for formal hearing to be conducted in
accordance with KRS Chapter 13B. The right to demand a formal hearing
shall be limited to a period of sixty (60) days after the person had notice,
as described in paragraph (c) or (d) of this subsection. The request for
formal hearing shall be filed with the Authority, at the retirement office in
Frankfort. The request for formal hearing shall include a short and plain
statement of the reasons the reduction, discontinuance, or denial of
disability retirement is being contested.
Failure of the person to request a formal hearing within the period of time
(4)
(5)
(6)
specified shall preclude the person from proceeding any further with
contesting the reduction or discontinuation of disability retirement
allowance, except as provided in subsection (6)(d) of this section. This
paragraph shall not limit the person's right to appeal to a court.
(g) A final order of the board shall be based on substantial evidence
appearing in the record as a whole and shall set forth the decision of the
board and the facts and law upon which the decision is based. If the
board orders that the person's disability retirement allowance be
discontinued or reduced, the order shall take effect on the first day of the
month following the day the Authority mailed the order to the person's last
address on file in the retirement office. Judicial review of the final board
order shall not operate as a stay and the system shall discontinue or
reduce the person's disability retirement allowance as provided in this
section.
(h) Notwithstanding any other provisions of this section, the Authority may
require the person to submit to one (1) or more medical or psychological
examinations at any time. The system shall be responsible for any costs
associated with any examinations of the person requested by the medical
examiner or the system for the purpose of providing medical information
deemed necessary by the medical examiner or the system. Notice of the
time and place of the examination shall be mailed to the person or his or
her legal representative. If the person fails or refuses to submit to one (1)
or more medical examinations, his or her rights to further disability
retirement allowance shall cease.
(i) All requests for a hearing pursuant to this section shall be made in
writing.
The board may establish an appeals committee whose members shall be
appointed by the chair and who shall have the authority to act upon the
recommendations and reports of the hearing officer pursuant to this section on
behalf of the board. The board may also establish a joint appeals committee
with the Kentucky Retirement Systems.
Any person aggrieved by a final order of the board may seek judicial review
after all administrative appeals have been exhausted by filing a petition for
judicial review in the Franklin Circuit Court in accordance with KRS Chapter
13B.
If a disability retirement allowance is reduced or discontinued for a person who
began participating prior to January 1, 2014, the person may apply for early
retirement benefits as provided under KRS 78.5510 or 78.5514, as applicable,
subject to the following provisions:
(a) The person may not change his or her beneficiary or payment option;
(b) If the person has returned to employment with an employer participating
in the County Employees Retirement System or the Kentucky Retirement
Systems, the service and creditable compensation shall be used in
recomputing his or her benefit, except that the person's final
compensation shall not be less than the final compensation last used in
determining his or her retirement allowance;
(c) The benefit shall be reduced as provided by KRS 78.5510(4) or
(7)
78.5514(4);
(d) The person shall remain eligible for reinstatement of his or her disability
allowance upon reevaluation by the medical examiners until his or her
normal retirement age. The person shall apply for reinstatement of
disability benefits in accordance with the provisions of this section. An
application for reinstatement of disability benefits shall be administered as
an application under KRS 78.5524 or 78.5526, as applicable, and only the
bodily injuries, mental illnesses, diseases, or conditions for which the
person was originally approved for disability benefits shall be considered.
Bodily injuries, mental illnesses, diseases, or conditions that came into
existence after the person's last day of paid employment shall not be
considered as a basis for reinstatement of disability benefits. Bodily
injuries, mental illnesses, diseases, or conditions alleged by the person as
being incapacitating, but which were not the basis for the award of
disability retirement benefits, shall not be considered. If the person
establishes that the disability benefits should be reinstated, the system
shall pay disability benefits effective from the first day of the month
following the month in which the person applied for reinstatement of the
disability benefits; and
(e) Upon attaining normal retirement age, the person shall receive the higher
of either his or her disability retirement allowance or his or her early
retirement allowance.
No disability retirement allowance shall be reduced or discontinued by the
system after the person's normal retirement date except in case of
reemployment as provided for by KRS 78.5540. If a disability retirement
allowance has been reduced or discontinued, except if the person is
reemployed as provided for by KRS 78.5540, the retirement allowance shall be
reinstated upon attainment of the person's normal retirement date to the
retirement allowance prior to adjustment. No reinstated payment shall be less
than the person is receiving upon attainment of the person's normal retirement
date.
Effective:April 1, 2021
History: Created 2021 Ky. Acts ch. 102, sec. 10, effective April 1, 2021.
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