Disability Benefits

Your retirement plan provides protection for you, your spouse, and your dependents if, while you are an active employee of a participating Michigan public school, you become totally and permanently disabled and unable to perform duties for which you are trained, educated, or experienced.

You may qualify for one of two types of disability retirement benefits depending on where you incur your injury or illness. 

• If you incur a total and permanently disabling injury or illness resulting from duties at work, you may be eligible for a duty disability benefit. Your duty disability protection begins your first day on the job. 
• If you incur a total and permanently disabling injury or illness not resulting from duties at work, you may qualify for a nonduty disability benefit. Your nonduty disability protection begins when you are vested with the equivalent of 10 years of full-time public school employment. 

Pension Eligibility Criteria

Duty disability pension

To qualify for a duty disability retirement, you must meet all the following conditions:

• You incur a total and permanently disabling injury or illness at work.
• You file an application with the Michigan Office of Retirement Services (ORS) within one year of the date of your termination from public school employment. There is no extension for filing. 
• An independent medical advisor certifies that you were totally and permanently disabled at the time you last worked at a Michigan public school. Totally disabled means you are unable to perform the duties of your position, or a similar position for which you are qualified by reason of training, experience, or both. Permanently disabled means the disability is likely to last your lifetime. 
• If you have a duty disability, a benefit could be payable regardless of how long you have been employed by the public school system. You must be receiving weekly workers' compensation benefits when you apply to be eligible for a duty disability benefit. 
• You are not able to retire with a regular age and service pension. If you are a Basic Plan member (generally those hired before Jan. 1, 1990), you qualify for a regular age and service pension at age 55 with 30 years of service (YOS) or age 60 with 10 YOS. If you are in the Member Investment Plan (MIP), you need to be at least 46 years old with 30 YOS or at least age 60 with 10 YOS to retire with a regular age and service pension. Note: In general, you earn 1 YOS when you work 1,020 hours in a school fiscal year. 

Nonduty disability pension

To qualify for a nonduty disability retirement, you must meet all the following conditions:

• You incur a total and permanently disabling injury or illness outside of work.
• You file an application with ORS within one year of the date of your termination from public school employment. This filing deadline can be extended an additional 24 months if ORS determines that you have extenuating circumstances for not filing within one year. If more than 12 but less than 36 months have passed since your termination date and you believe you can prove extenuating circumstances, substantiation for late filing must accompany your application.
• An independent medical advisor certifies that you were totally and permanently disabled at the time you last worked at a Michigan public school. Totally disabled means you are unable to perform the duties of your position, or a similar position for which you are qualified by reason of training, experience, or both. Permanently disabled means the disability is likely to last your lifetime. 
• You are vested with the equivalent of 10 years of full-time public school employment.
• You are not able to retire with a regular age and service pension. If you are a Basic Plan member (generally those hired before Jan. 1, 1990), you qualify for a regular age and service pension at age 55 with 30 YOS or age 60 with 10 YOS. If you are in the MIP, you need to be at least 46 years old with 30 YOS or at least age 60 with 10 YOS to retire with a regular age and service pension. Note: In general, you earn 1 YOS when you work 1,020 hours in a school fiscal year. 

Your termination date.

In most cases your termination date is the date you and your employer ended your relationship. However, effective Sept. 4, 2012, your termination date for retirement system purposes is the date two years after your employer last reported service credit for you, even if you are still on an approved leave of absence with your employer.

How Pensions Are Calculated

Nonduty disability pension calculation.

A nonduty disability retirement benefit is calculated the same as a regular service retirement.

When you apply, you can choose the straight life option that pays you the most money but does not provide any ongoing benefits to a beneficiary when you die. Or you can elect a survivor option, which pays you less but continues monthly pension benefits to your beneficiary upon your death. Learn more about your pension options. 

Duty disability pension calculation.

Insurance eligibility.

Personal Healthcare Fund. If you have the Personal Healthcare Fund, you are not eligible for subsidized health, prescription drug, dental, or vision insurances through the retirement system.

If your disability application is approved, you, your spouse, and any eligible dependents may enroll in the retiree healthcare plan if you enroll immediately when you retire, but you will be responsible for the entire premium. If you are disenrolled from the plan at any time, you, your spouse, and your dependents will not be able to reenroll. If your spouse or your dependents are disenrolled at any time, they will not be able to reenroll.

Premium Subsidy Benefit. If you are a member with the premium subsidy benefit and your disability application is approved, you are eligible for subsidized group insurances, with the maximum subsidy allowed by law. If you chose a survivor option, your beneficiary and eligible dependents will also be eligible for insurance benefits upon your death.

The Application Process

File an application. 

Your application for disability retirement must be received within one year from the date of your termination from public school employment. (Again, you may get a 24-month extension if you are applying for a nonduty disability and are able to show extenuating circumstances.) Any application for disability retirement, regardless of when it is filed, must be for a condition that you incurred before your termination from public school employment. (See Your termination date above.)

Your first step to apply for a disability pension is to contact ORS and request a disability retirement packet. Along with an application form, the packet contains detailed information about insurances and pension options, as well as the forms needed to process your application. You must sign the medical release forms that allow an independent medical advisor to obtain and review the medical records pertaining to the injury or illness that you believe prevents you from working. Once completed, you must send the forms to Disability Determination Services (DDS). 

The disability determination. 

DDS is part of Michigan's Department of Health and Human Services. DDS assists ORS in the disability application process by collecting and validating forms, obtaining and reviewing medical documentation, and providing expertise in determining medical eligibility.

DDS will ask the medical providers listed on your application to send your medical records directly to DDS for review. An independent medical advisor from DDS will review your medical records and, if necessary, schedule an exam for you with a medical professional. 

After the review of all the medical records, DDS reports its findings to ORS. 

If your application is approved. 

If DDS determines your medical condition meets the disability criteria, it will recommend that your application be approved. If ORS agrees with the DDS evaluation, you will receive an award letter. ORS will then process your application and insurance enrollments upon receiving official termination from your employer. You must terminate employment to avoid delays. You will receive your first pension payment four to six weeks after all required information is received from you and your employer. Your first payment will include any past due benefits as well.

If your disability retirement is approved and you have not terminated your employment with your school yet, contact your human resources office immediately so your benefits are not delayed. If you do not terminate employment within 30 days of your disability retirement determination, you may have to reapply.

If your application is denied. 

If DDS determines that your condition does not meet the medical requirements for a disability pension as defined in the retirement act, you will receive a denial letter. This letter will advise you of your appeal rights and the deadline for filing an appeal. 

What to Expect as a Disability Retiree