The Difference Between Accidental and Ordinary Disability Benefits Under PERS, TPAF, SPRS, and JRS
Following up on our previous entry, this article will help our readers understand the criteria that must be met in order for a public employee to qualify for an ordinary or accidental disability pension within one of the following State pension systems, the Public Employees Retirement System, the Teachers Pension and Annuity Fund, the State Police Retirement System, and the Judicial Retirement System. While these pension plans are similar in defined benefits and criteria for eligibility, each has their own specific nuances that are particular to the membership they serve.
Accidental v. Ordinary Disability Benefits
Public Employees Retirement System and Teachers Pension and Annuity Fund
In accordance with the Public Employees Retirement System (“PERS”) and Teachers Pension and Annuity Fund (“TPAF”) handbooks, in order to qualify for an ordinary disability retirement, an employee must:
· Have an active pension account;
· Have 10 or more years of New Jersey service credit;
· Be considered totally and permanently disabled; and
· Submit medical reports certifying the disability.
In order to qualify for an accidental disability retirement, a member must:
· Be an active member of PERS or TPAF on the date of the “traumatic event”;
· Be considered totally and permanently disabled as a result of a “traumatic event” that happened during and as a direct result of carrying out the member’s regular or assigned job duties;
· File an application for disability retirement within five (5) years of the date of the “traumatic event”; and
· Be examined by physicians selected by the retirement system.
If an employee claiming membership to either one of these retirement funds qualified for accidental disability, his/her annual retirement allowance will be 72.7% of their salary at the time of the “traumatic event.”
Should the public employee be receiving periodic workers’ compensation benefits, the accidental disability retirement benefits will be reduced dollar for dollar by the periodic benefits paid after the retirement date. However, the retirement benefit is not reduced by any Social Security or private insurance benefits that may be payable.
The New Jersey Division of Pensions and Benefits reports accidental disability retirement benefits as exempt from federal income tax. The benefits are also
not subject to New Jersey state income tax until the employee reached the age of 65.
State Police Retirement System
In accordance with the State Police Retirement System (“SPRS”) handbook, in order to qualify for an ordinary disability retirement, an employee must:
· Be a member in service at the time the application is filed with the Division of Pension and Benefits (an official leave of absence is considered in service);
· Be under age 55 and have four or more years of service credit as a State Trooper;
· Be considered totally and permanently disabled; and
· Submit medical reports certifying the disability.
Should an employee qualify for ordinary disability retirement, the annual benefit is equal to 40% of your final compensation or 1.5% percent of your final compensation for each year of service credit, whichever is higher.
An employee’s approval for workers’ compensation or Social Security has no bearing on his/her application for disability retirement from theSPRS .
In order to qualify for accidental disability retirement, the employee must:
· Be enrolled in the SPRS on or before the date of the “traumatic event”;
· Be a member in service at the time the application is filed with the Division of Pensions and Benefits (an official leave of absence is considered in service);
· Be considered totally and permanently disabled as a result of a “traumatic event” that happened during and as a direct result of carrying out the member’s regular or assigned job duties;
· Show that the disability was not a result of the member’s willful negligence;
· File an application within five (5) years of the date of the “traumatic event”; and
· Be examined by physicians selected by the retirement system.
If an employee qualifies for an accidental disability retirement, the annual benefit is equal to 2/3 of the member’s final compensation.
Should the public employee be receiving periodic workers’ compensation benefits, the accidental disability retirement benefits will be reduced dollar for dollar by the periodic benefits paid after the retirement date. However, the retirement benefit is not reduced by any Social Security or private insurance benefits that may be payable.
Unlike the other pension systems, the Judicial Retirement System (“JRS”) does not distinguish between accidental and ordinary disability retirement benefits. The JRS only provides disability retirement benefits is the following criteria is met:
· The employee is physically or otherwise incapacitated for full and efficient service to the State in a judicial capacity as determined by three (3) physicians appointed by the Governor; and
· The individual’s disability is certified by the Supreme Court and approved by the Governor.
If a JRS member is certified as disabled, they will receive disability retirement benefits calculated at 75% of their final salary. Moreover, approval for workers’ compensation or Social Security disability benefits has no bearing on a member’s application for JRS disability retirement.
