102 KAR 1:290reg. Disability retirement application, review, and examinations

      Section 1. To qualify for disability retirement, a member shall meet the requirements set forth in KRS 161.661(1) and (9) or KRS 161.663. A member who requests an application shall be given a copy of:

      (1) Disability Retirement Information You Should Know;

      (2) Disability New Retiree Health Insurance Information for Plan Year 2016; and

      (3) Wage Bracket Method Tables for Income Tax Withholding.

 

      Section 2. Administrative Provisions. (1) An application for disability retirement shall be filed on the Application for Disability Retirement (application) and shall include:

      (a) A photocopy of the member’s certified birth certificate;

      (b) A photocopy of the member’s signed Social Security card;

      (c) A voided or cancelled check from the institution where monthly disbursements shall be electronically transmitted;

      (d) If applicable, a photocopy of the member’s certified marriage certificate;

      (e) A photocopy of the primary beneficiary’s certified birth certificate; and

      (f) A photocopy of the primary beneficiary’s signed Social Security card.

      (2) The Report of Physician and supporting documentation regarding the member’s physical or mental condition shall be submitted with the application.

      (3) TRS shall submit the application, Applicant Statement of Disability, Report of Physician, and supporting documentation to the medical review committee for evaluation and written disposition as required by KRS 161.661(14).

      (4) If the application is approved, payment of disability benefits shall be effective on the applicable date set forth in KRS 161.661(11).

 

      Section 3. A member’s receipt of disability benefits shall be subject to the restrictions set forth in KRS 161.661(12).

 

      Section 4. A member retired by reason of disability shall undergo examinations on an annual basis to determine whether the member’s disability retirement allowance shall[should] be continued, except that, on the recommendation of the medical review committee, a member’s examinations may be less frequent, but not less than once every five (5) years.

 

      Section 5. If either of the conditions in KRS 161.661(16) is met, a member may seek reinstatement of disability benefits by filing an application as required in Section 2 of this administrative regulation. Application shall be made within the time frame set forth in KRS 161.661(16).

 

      Section 6. Incorporation by reference. (1) The following material is incorporated by reference:

      (a) "Application for Disability Retirement", July 2016;

      (b) "Applicant Statement of Disability", D-1, July 2016;

      (c) "Disability Retirement Information You Should Know", D-2, July 2016;

      (d) "Report of Physician", D-3, July 2016;

      (e) "Disability New Retiree Health Insurance Information for Plan Year 2016", July 2016; and

      (f) "Wage Bracket Method Tables for Income Tax Withholding", 2016.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at Teachers’ Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m.

 

ARTHUR GREEN, Chairperson

      APPROVED BY AGENCY: June 20, 2016

      FILED WITH LRC: July 15, 2016 at 8 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Wednesday, 24 August 2016, at 9:00 a.m. at the Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency in writing by Wednesday, 17 August 2016, five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by this date, the heating may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation through Wednesday, 31 August 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Robert B. Barnes, Deputy Executive Secretary of Operations and General Counsel, Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone [phone], fax [phone] or email at [e-mail].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Robert B. Barnes

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: Establishes procedures for filing an application for disability retirement and for periodic examinations.

      (b) The necessity of this administrative regulation: Members who meet the conditions for disability retirement mandated by KRS 161.661(9) and 161.663 must also meet the criteria for filing an application to begin receiving a disability benefit. Members retired by reason of disability must undergo periodic examinations by their health care providers mandated by KRS 161.661(10).

      (c) How this administrative regulation conforms to the content of the authorizing statutes: The TRS Board of Trustees is mandated under KRS 161.661 to establish the process for filing an application for disability retirement and for undergoing periodic examinations by health care providers.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation establishes the detailed procedures for (1) filing an application for disability retirement as contemplated by KRS 161.661 and 161.663 and (2) undergoing periodic examinations by health care providers to continue receipt of disability benefits.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment clarifies the documents and information that must be provided with an application for disability retirement, as well as an application for reinstatement of disability benefits.

      (b) The necessity of the amendment to this administrative regulation: To clarify (1) the circumstances under which a member may apply for disability benefits and (2) what must be provided with the application for disability retirement benefits, as well as an application for reinstatement of disability benefits.

      (c) How the amendment conforms to the content of the authorizing statutes: Clarifies (1) the circumstances under which a member may apply for disability benefits and (2) documentation required to be submitted with the disability retirement application.

      (d) How the amendment will assist in the effective administration of the statues: Provides a member seeking disability retirement with information regarding what conditions qualify for disability benefits and the documentation which must be submitted in support of the member’s application.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Active, contributing, members of TRS who are eligible for disability retirement.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to comply with this administrative regulation or amendment: Members applying for disability benefits must obtain information and records regarding their physical or mental condition from their health care provider for submission with the application for disability retirement.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): Members of the retirement system may incur a co-pay cost to obtain opinions from health care providers or copying costs of their medical records.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Members will be able to receive disability retirement benefits.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: There is no cost to implement this regulation.

      (b) On a continuing basis: The $50 fee paid to physicians who serve on the medical review committee.

      (6) What is the source of funding to be used for the implementation and enforcement of this administrative regulation: Administrative expenses of the retirement system are paid by trust and agency funds.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: There is no increase in fees or funding required.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This regulation does not establish any fees or directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? Tiering is not applied, as all members seeking disability retirement benefits are treated the same.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Teachers' Retirement System.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 161.310(1), 161.661, 161.663.

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. Administrative costs, via the fees paid to physicians who serve on the medical review committee, will depend upon the number of applications for disability benefits processed and cannot be quantified at this time.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? None.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? None.

      (c) How much will it cost to administer this program for the first year? Administrative costs will be dependent upon the number of applications processed and cannot be quantified at this time.

      (d) How much will it cost to administer this program for subsequent years? Administrative costs incurred will be dependent upon the number of applications processed and cannot be quantified at this time.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-): N/A

      Expenditures (+/-): N/A

      Other Explanation:

Notation

      RELATES TO: KRS 161.661(1), (10)

      STATUTORY AUTHORITY: KRS 161.310, 161.661(1), 161.663 [(10)]

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 161.310 requires the Board of Trustees of the Teachers’ Retirement System of the State of Kentucky (TRS) to promulgate administrative regulations for the administration of the funds of the retirement system and for the transaction of business. KRS 161.661(1) and (14) provide that an application for disability retirement shall be timely submitted for review and disposition by the medical review committee. KRS 161.661(10) provides that members retired by reason of disability shall undergo periodic examinations at the discretion of the board of trustees to determine whether the disability retirement allowance shall be continued. KRS 161.663 provides that members with less than five (5) years of Kentucky service credit may file an application for disability retirement if the member meets the requirements set forth in KRS 161.663 and 161.661. This administrative regulation establishes[sets forth] guidelines for filing an application for disability retirement and the required periodic examinations.