As a member of the Missouri Local Government Employees Retirement System (LAGERS), you have disability protection built into your retirement benefit. This protection is designed to help support your financial security if a serious illness or injury permanently prevents you from performing the duties of your current LAGERS-covered job.
A disability benefit is your regular retirement benefit paid early without penalty. It is calculated using your employer’s benefit multiplier, your final average salary, and your accrued service credit. Disability benefits are paid monthly for your lifetime and do not include temporary benefits payable under Life and Temporary plans (LT Plans).
A LAGERS disability benefit can provide valuable long-term income protection for you and your family. With that safeguard in place, you can focus on your health and recovery knowing your retirement benefit may still be there to support you.
Eligibility
You may be eligible for a LAGERS disability benefit if all the following are true:
- You are unable to perform your current LAGERS-covered job.
- Your disabling condition is permanent.
- You are vested with LAGERS, or your job caused the disability.
When you apply for a LAGERS disability benefit, you will be asked whether your condition was the direct result of performing your current job duties. This is called a duty-related disability.
If you are approved for a duty-related disability, your benefit will include service credit extended as though you had worked until age 60. You do not have to be vested to apply for a duty-related disability.
Regardless of your normal retirement age, service credit for an approved duty-related disability is extended as though you had worked until age 60.
If your condition was not the direct result of performing your current job duties, you can apply for a non-duty disability. You must be vested, totally and permanently disabled, and unable to perform your current job to qualify. If approved, your monthly benefit will be calculated the same as normal retirement, based upon your salary and service credit at the time of disability with no reduction for age.
How to Apply:
Since a disability benefit is your regular retirement benefit paid early without penalty, the first step to apply for disability benefits is to complete a retirement application. This application will ask you what type of retirement you are applying for. This is where you will indicate whether it is a duty or a non-duty application.
You can apply directly on your myLAGERS account or download and mail in the paper Application for Retirement form available on molagers.org. You must apply within two years of the onset of your disabling condition.
After you submit your application, LAGERS will send you a disability packet. It will request:
- Your statement of disability which will include signing a release allowing LAGERS to share your statement of disability with the medical committee and your employer.
- That your doctor complete LAGERS’ Attending Physician’s Statement of Disability form.
That you submit all supporting medical records and treatment notes. A medical committee will then review your entire file. It takes approximately four to five weeks to receive the medical committee’s recommendation on approval or denial.
If your application is approved and LAGERS does not receive an appeal within 21 calendar days, LAGERS will send your retirement options packet. Your retirement effective date and first payment date will be determined based on your last date of employment or the date your application is received, whichever is later. All LAGERS benefits are paid on the first of the month, for that month.
If your application is denied, you have the right to request a formal hearing to appeal LAGERS’ preliminary decision. Your employer also has the right to appeal the LAGERS’ preliminary decision.
Ongoing Medical Recertification
If you begin receiving a disability benefit, you must recertify your disability through a medical examination each year for the first five years of disability retirement. After that, you must recertify once every three years until you reach normal retirement age.
These recertifications are used to determine whether you are still permanently disabled from performing the duties of the occupation you held at the time of retirement.
FAQ:
- How do I know if my employer offers disability benefits as part of my LAGERS plan?
All LAGERS members are automatically covered by LAGERS disability benefits. Your employer does not have to elect this coverage separately. - Will my spouse be eligible for my benefit if something happens to me?
If you are approved for disability retirement, you will elect a payout option that determines how your disability benefit will be paid in the event of your death. This election is irrevocable once your benefit begins. - If I retire with a disability benefit, does that mean I can never work another job?
No. If you retire with a LAGERS disability benefit, you simply cannot return to the same position that led to your disability. Depending on your circumstances, you may be able to work again. - Will LAGERS notify my employer once I apply for a disability retirement?
Yes. LAGERS will notify your employer after we have received your statement of disability. Your employer will be asked to weigh in on the nature of your disability if it is duty-related. - How does LAGERS determine whether a disability is duty-related?
In your statement of disability, you must tell LAGERS whether you believe your disabling condition was caused by your job. LAGERS considers a disability duty-related when it is the natural and proximate result of a personal injury or disease that arose out of and during the actual performance of your duties as an employee. - What if my disabling condition is not permanent?
LAGERS disability retirement benefits are only payable in the event of a total and permanent mental or physical disability. Please visit with your employer about if there is other benefit coverage you might be eligible for if you have a condition that is not considered total and permanent. - Are my disability benefits taxable?
Yes. LAGERS disability retirement benefits are taxable income and will be reported on your Form 1099-R. While Internal Revenue Code Section 104(a)(1) allows certain disability payments to be excluded from taxable income, this exclusion does not apply to LAGERS disability retirement benefits. LAGERS disability benefits are treated as retirement benefits because they are based on your years of service. For this reason, they must be included in your taxable income.
For more information, visit molagers.org or email [email protected].
