Terminating the Employment Relationship

a. Advanced Disability Pension Payments If an application for industrial disability retirement is made by a safety employee who has qualified for 4850 benefits, the employer is required to make advanced disability pension payments only if the employee does the following:

Files an application for disability retirement at least 60 days prior to the time in which advanced disability pension payments will commence; Fully cooperates in providing the employer with medical information and attends all statutorily required medical examinations and evaluations set by the employer; and

Fully cooperates with the evaluation process established by the retirement plan.

For any period in which the employee fails to comply with these conditions, the period for commencement of payments shall be tolled. 220 For example, if the employee files the application less than 60 days prior to the time in which the advanced disability pension payments would otherwise commence, the employee may still be entitled to the payments, but the time in which those payments must commence will be tolled by the period of delay. When the employer files the retirement application on behalf of the employee, CalPERS has taken the position that advanced disability pension payments are not required where the employee does not fill out his or her portion of the retirement application. Advanced disability pension payments must commence no later than 30 days from the last date the employee receives any of following, unless tolled: (1) the employee’s last regular payment of wages or salary; (2) the employee’s last payment of 4850 benefits; or (3) the employee’s last payment for sick leave. The advanced disability pension payments will continue until the employee is approved or disapproved for a disability retirement pursuant to final adjudication as provided by law. 221 Advanced disability pension payments do not have to be made where the employee service retires pending a determination on an industrial disability retirement. For CalPERS employers, an employee is entitled to exhaust the one-year of 4850 benefits before receiving advanced disability pension benefits or otherwise until he or she is found permanent and stationary in the workers’ compensation proceedings. An employee may voluntarily consent to an earlier retirement date and otherwise forego the continued 4850 payments. 222 In addition, the employee is entitled to exhaust sick leave and compensatory time off prior to the effective date of advanced disability pension payments unless the member consents to waive exhaustion of these leave balances or the employer has a policy to the contrary. 223 For ’37 Act employers, an employee should not receive advanced disability pension payments until the expiration of any workers’ compensation leave of absence with compensation to which the employee is entitled unless the employee consents to an earlier time. In addition, an employee should not receive advanced disability pension payments until he or she has exhausted paid sick leave unless the employee consents to an earlier date. 224

Terminating the Employment Relationship ©2019 (s) Liebert Cassidy Whitmore 65