Human Resources Academy II for Community College Districts

To be eligible for disability retirement, the employee must:

 have five or more years of credited service, including four of the last five years of credit for actual performance; and

 at least five years of credited service performed in California. 119

Unlike disability allowance, there is no age restriction.

2. C ALCULATING A D ISABILITY R ETIREMENT A LLOWANCE

An individual eligible for the retirement disability benefit receives:

 an annual allowance equal to 50% of final compensation payable in monthly installments;  an additional 10% of final compensation for each dependent child, up to a maximum of 40% of final compensation; and  an annuity that is the actuarial equivalent of the accumulated annuity deposit contributions standing to the credit of the member’s account on the effective date of the disability retirement.

The disability retirement allowance formula is 50% of final compensation. Final compensation for a full-time employee is generally the highest average monthly compensation earnable by a member during any period of three consecutive years (36 consecutive months) of credited service. One-year final compensation is available for eligible classroom teachers provided it has been included in a written collective bargaining agreement and all costs are paid by the employer, the employee or a combination of the two, or 25 years of credited service. Unlike disability allowance , which is reduced by all amounts paid or payable from various public systems (e.g., Workers Compensation, Social Security disability, Federal military disability, income protection plans, or other publicly funded disability programs), 120 the disability retirement benefit will only be reduced by the full amount paid or payable from Workers’ Compensation, but not other public systems. 121 3. W ORKING W HILE R ECEIVING A D ISABILITY R ETIREMENT B ENEFIT The Education Code permits an individual who receives a disability retirement allowance to be employed or self-employed in any capacity. However, Section 24114 does place an earnings limit on such an individual. An individual who receives a disability retirement may not earn more than $15,000 in any one calendar year. If the individual does earn more than $15,000, his or her retirement allowance will be reduced by the amount of the excess earnings. 122

Human Resources Academy II for Community College Districts ©2019 (c) Liebert Cassidy Whitmore 56