Member news, 2006 Spring/Summer

STATE OF GEORGIA
Employees' MEMBER NEWS Retirement

System

Spring/Summer 2006

New Disability Retirement Application Process

The Employees' Retirement System is making improvements in disability retirement administration in order to be prudent managers of the retirement system and benefits. The goal is to keep healthy people working and to provide disability retirements to the disabled. To help accomplish this, ERS has significantly changed the procedures for filing disability retirement applications that will shorten the process. A major change requires the disability applicant to submit all pertinent information concerning a disabling condition at the same time the application is filed with ERS and with their employer/ agency.
A complete disability retirement application consists of five parts: (Part I) Retirement Application; (Part II) Employee's Disability Self-Report; (Part III) Employer's Disability Report; (Part IV) Physician's Report (for each medical provider); and (Part V) Current Detailed Job Description. If any of these five parts are not received, the five-part application will be considered incomplete and will be returned to the applicant for the complete information.

Inside This Issue:

Disability Earnings Limitations 2

Retirement Planning

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Important Numbers

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Fun In The Sun

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Another major change to the disability retirement process is that once the applicant has filed a completed retirement application, the applicant must be placed on leave with or without pay and cannot report to work during the entire disability application process. In filing an application for disability retirement, the applicant is stating that he/she is unable to perform his/her current job duties, and as such should not be working. If an applicant reports to work during the disability application process, the disability application will be considered null and void.
An additional change is mandated by Act No. 519 (House Bill 379) which amends O.C.G.A. 47-2-123(b).
This law states as of July 1, 2006, members will not be entitled to disability benefits if the employ-
er finds an alternative position, taking the medical/physical impairments of the member into consideration. Agencies are required to try and find alternative work for the employee so that they do not have to leave the work force simply because they can no longer perform their current job due to a documented medical condition.
What is an alternative position? The physical requirements are compatible with the applicant's medical limitations,
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Two Northside 75 - Atlanta, GA 30318-7778 www.ersga.org

New Disability Retirement Application Process
continued from front page
The annual compensation and possibility for advancement are comparable or greater than the current position, The duties are reasonably compatible with the applicant's experience and education, and The position is covered under the applicant's Retirement Plan.
Under this amendment, an employee submits his or her complete application for disability retirement to both ERS and his or her agency. Within 10 days of receipt, the agency head (or their designated agent) is required to interview the applicant in order to determine if alternative employment is available within 45 days of the date that application was submitted.
Upon receipt of the Alternative Position Form from the employer that no other suitable employment can be found, ERS proceeds with the normal disability process.
If an alternative position is available and offered and the applicant accepts that position, the disability application is voided.
If the member disputes his or her ability to perform in the alternative position, he or she must do so by written appeal to the agency and to ERS within 30 days after receipt of that offer. The ERS medical board then determines whether the employee is reasonably capable of performing either the current job or the duties of the alternative position. If this appeal is denied by the medical board, the employee can refuse the alternative position; however, this action invalidates the disability application.
An employee can refuse the alternative position and not file an appeal within 30 days, but this action also voids the disability application.
Disability Earnings Limitations
All ERS disability retirees under the age of 60 are restricted in the earnings they receive from gainful employment. The earnings limitation is determined by taking the difference between the salary used to calculate the disability retirement allowance at retirement and the initial gross monthly disability allowance. All disability retirees are advised of their individual earnings limitation at retirement. To the extent a disability retiree's earnings exceed this limitation, the monthly pension is reduced in a like amount.
Disability retirees are required to provide tax documents and other earnings records that will support all earned income and any other information relevant to their earnings capacity. Any non-compliance in providing this information could result in the suspension of a monthly disability retirement allowance. ERS is also authorized to require disability retirees to submit to medical re-examination after retirement. The re-exams may be performed annually for the first five years after retirement and every three years after that. If the re-exam indicates the retiree is capable of gainful employment, ERS reduces the pension to the extent the earnings ability exceeds the above limit. Since July, 2005 ERS has corresponded with over 2,000 disability retirees and requested various information and documentation on earned income. Because of the information ERS has received regarding its disability retirees, we have reduced disability pensions by over $60,000 per year.
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It's Never Too Early To Plan For Retirement
No matter what your age or years of service, ERS has an educational seminar that can help you assess your current financial situation and understand how your state benefits can enhance your financial security. Planning Your Financial Future is a one-day seminar for employees at the beginning or middle of their careers. The sooner you take advantage of this program, the better prepared you will be for future career decisions and the greater your financial security can be.
Topics addressed by this seminar include: Financial Planning & Budgeting Learn how to coordinate financial
resources today to provide for your financial future. Peach State Reserves 401(k) & 457 Plans Learn to calculate how
much to save now, whether you plan on staying with the state or making career changes; understanding investments; and Plan features.
Retirement Income Learn why your state employment is financially valuable; how to calculate and maximize your future pension benefit.
This seminar also covers Social Security and Estate Planning.
Our two-day Pre-Retirement Seminar provides comprehensive, practical information for late-career employees. The emphasis is on coordinating all of your state benefits and preparing for life during retirement.
Topics include:
ERS Retirement Income Learn about your monthly retirement benefits and distribution options.
Peach State Reserves 401(k) & 457 Plans Get the facts on using plan assets to the best advantage after retirement.
Other State Benefits Get the most current information on which state benefits can be kept after retirement.
This seminar also covers Financial Planning, Social Security, and Estate Planning.
Attending one of our seminars can help you plan your financial future. Check out our website at www.ersga.org and go to the Seminars Section for our schedule of programs. Complete and print the Seminar Registration Form and then mail or fax it to us.
Places in our seminar are limited and assigned on a first-come, first-served basis, so register as soon as possible. There is a non-refundable $10 fee to cover the cost of materials, but don't send that in now. We will request payment when we acknowledge your registration form.
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Contact Information

ERS General Office 404-350-6300

ERS Fax 404-350-6308

ERS Toll Free

800-805-4609

Web Site www.ersga.org

Peach State Reserves 401(k) & 457 800-701-8255

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PAID Permit #7926 ATLANTA, GA

FUN IN THE SUN It's the Season for Outdoor Activity
There are golf specials for State employees in eight locations around Georgia. You can reserve tee times as well as order special golf packages. Check out the website at www.georgiagolf.com.
www.georgiagolf.com
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