Police & Fire Disability Offsets
If you are receiving a regular or duty-related disability, you can work as long as the new position is not covered by the PERA Police & Fire Plan. If you return to a PERA-covered position not considered Police & Fire, you will not pay contributions to PERA.
Workers’ compensation benefits will no longer offset disability benefits. If you have no reemployment earnings, there will be no offset to your disability benefit.
On July 1, 2023, PERA’s statute regarding how offsets are calculated changed. This section is for individuals impacted by this change. Those members are P&F disability recipients with reemployment earnings who have:
- A benefit effective date on or after July 1, 2023, and;
- A benefit effective date prior to July 1, 2023 who are required to provide continuing eligibility, also known as reapplication.
Earnings and Regular or Duty Disability
If you are receiving a disability benefit and have reemployment earnings, your benefit may be impacted by two offsets:
Offset 1
This offset applies if you have less service than the minimum benefit you are receiving.
» regular disability—minimum 15 years
» duty disability—minimum 20 years
Offset 2
This offset applies if the disability benefit plus reemployment earnings exceeds what the current base pay is for the position held at the time of disability. If your earnings when added to your disability exceed 100% (but less than 125%) of the base salary currently paid, the disability benefit will be reduced $1 for every $2 over. If your earnings when added to your disability exceed 125% of the base salary currently paid, the disability benefit will be reduced $1 for $1 over.
Resources
Earnings and Total and Permanent Disability
If you remain totally and permanently disabled, you may return to employment, as long as that employment is not considered to be substantial gainful activity.
The law does not define “substantial gainful activity”. However, we will likely ask that you provide medical documentation that you continue to be totally and permanently disabled, as defined by law, if you are:
- earning more than the Social Security limit,
- working or volunteering more than 20 hours per week, or
- participating in substantial activity, i.e. attending school on a part-time or full-time basis.
If you remain totally and permanently disabled and have earnings, your benefits are not offset.
Reductions are Not Refunded Later
Any amount deducted from your disability benefit due to employment is not recoverable at a later date.