Reasonable Accommodation Workers’ Compensation vs. Disability Retirement

2. Reasonable Accommodation • Workers’ Compensation vs. Disability Retirement • Workers’ Compensation (Form of Vocational Rehabilitation) • In Worker’s Pre-Injury Job Class (Modified Work) • In New Job Class (Alternative Work) • Disability Retirement • In Applicant’s Pre-Injury job class, therefore Applicant not Permanently Incapacitated • In new job class, but only after found to be Permanently Incapacitated (re-employment plan pursuant to Section 31725.65)

3. Employee working within Reasonable Accommodation • Workers’ Compensation • Within worker’s job class (Modified Work) • Employer may provide modification to applicant’s assignment or offer another assignment in job class • Written offer • If worker accepts offer, and accommodation is successful, a disability retirement application is avoided • In new job class (Alternative Work) • Employer provides permanent accommodation in new job class • Written offer to worker • Worker either returns to work or may file a disability application

4. Employee working within Reasonable Accommodation (cont’d) • Disability Retirement • In Applicant’s Pre-Injury job class, Applicant not considered Permanently Incapacitated • In new job class, but only after found to be Permanently Incapacitated (re-employment plan pursuant to Section 31725.65) • Board of Retirement (BOR)has fiduciary duty to independently investigate and determine availability of reasonable accommodation • BOR decision not dependent on whether employer has actually offered accommodation to applicant • BOR is a separate legal entity, empowered to make its own finding of fact

5. Employee working within Reasonable Accommodation (cont’d) • Disability Retirement • If BOR determines reasonable accommodation is available within applicant’s pre-injury job class: • Applicant Is Not Permanently Incapacitated • Disability Retirement Is Denied

6. Supplemental Disability Allowance (Salary Supplement) • Why do we retain disabled employees in County Service? • County Departments face critical budget cuts, layoffs, and hiring freezes. Salary Supplement is the process of retaining experienced, disabled employees in County positions.

7. Supplemental Disability Allowance • Government Codes Sections 31725.5, 31725.6 and 31725.65 • Applications are to be treated like any other application; the criteria is that the applicant must be found disabled from the ORIGINAL position

8. Also Known as Salary Supplement The Supplement Disability Allowance is commonly referred to as the Salary Supplement in LACERA member materials, including the Summary Plan Descriptions (Plan Books).

9. Section 31725.5 - Applies to nonservice-connected disability retirements only • Section 31725.6 and/or 31725.65 - Applies to service-connected disability retirements only

10. Voluntary Demotion • There are two options for Voluntary Demotion: • Demoted to lesser position, lesser salary, and no provisions to supplement for the pay cut. These cases will have the supplement start on either the date of application or the date of demotion per Section 31724. • Demoted to lesser position, with a Y-Rate, assigned at the time of demotion. Pay stays the same until disability is determined.

11. Conditions of Supplemental Disability Allowance • Contingent on: • The offer of a permanent position with a lower salary schedule which accommodates the employee’s permanent work restrictions • The acceptance of this position by the employee • Engaging the Process • The Disability Retirement Services Division works closely with County Departments’ Human Resource managers and Return to Work Coordinators to facilitate a better awareness of the Salary Supplement options

12. Department’s Responsibilities • Confirm the employee has applied for disability retirement benefits with the Salary Supplement • Place the employee on a “Y”-Rate; pending the Board of Retirement’s action • The employee’s salary remains unchanged during the disability retirement application process

13. LACERA’s Responsibilities • Once the Board of Retirement takes action, the Department is notified and an effective date for the Salary Supplement is established • If the application is denied, appeal rights are not affected

14. Member’s Future Earnings • The calculation is based upon the member’s actual earnings at the time the benefit is granted. The calculation does not allow for future item raises and cost-of-living increases. • The member can be promoted in the new position career chain. When the member receives a pay raise, it is reviewed against the original item number salary and the Salary Supplement is lowered accordingly. If the new item number salary exceeds the original position’s salary, the Salary Supplement stops.

15. SCD Supplemental Disability Allowance Calculation Deputy Sheriff I permanently demoted to Dispatcher: • Previous position monthly salary = $6,077.36 • NEW position monthly salary = $3,996.82 • Difference in salary = $2,080.54 • SCD Supplemental Retirement Allowance = $2,080.54 • SCD Benefit if member retires (50% final comp) = $3,038.54