Disability benefits overview for Tier One/Tier Two members

PERS disability retirement has two categories: duty and nonduty. 

To be eligible for either duty or nonduty disability retirement, you must be totally, not partially, disabled and anticipate being unable to perform any work for which you are qualified for a minimum of 90 consecutive days.  

Beyond this basic criteria, each category has the following additional requirements: 

Duty 

• You have established membership (completed your waiting time) as a Tier One or Tier Two member.
  AND
• Your work was the material contributing cause of your injury or disabling condition.

Nonduty 

• You must have 10 or more years of qualifying service as a Tier One or Tier Two member.
  • If you have fewer than 10 years of service, contact PERS to have a disability specialist review your service time.

You must submit a Tier One/Tier Two disability eligibility application. 

Apply as soon as you are physically off the job, including being off remote work. You may apply while on paid leave. 

You do not need to wait until you have been off work for 90 consecutive days to submit your disability retirement application. You can apply during those first 90 days.  

However, you must not be working when you submit your application — not for a PERS employer, not for a non-PERS employer, and not in self-employment.  

Contact Member Services to request a Tier One/Tier Two disability eligibility application packet. 

When you are completing your application for disability eligibility, you will need to list all physician specialists who have treated your disabling condition.  

To meet PERS’ criteria, a “physician specialist” must: 

• Be a doctor with one of these two general medical degrees: doctor of medicine (MD) or doctor of osteopathic medicine (DO).

• Have completed additional education and training in a specific area of medicine after earning their general medical degree to become a specialist. Examples of specialists include but are not limited to: cardiologist, neurologist, oncologist, gastroenterologist.  

  AND
• Be a specialist in an area of medicine applicable to your disabling condition.

The following are examples of professions that do not qualify as physician specialists under PERS’ criteria: 

• Nurse practitioner (NP)
• Physician’s associate (PA)
• Naturopath/naturopathic doctor (ND)
• Chiropractor (“doctor of chiropractic” degree, or DC)

PERS will require medical documentation from the time you stopped working to the time you apply for disability eligibility.  

Before submitting your application, speak to the physician specialist(s) you list, and let them know that PERS will contact them to confirm and document your disabling condition.  

Ask your physician specialist if they require their own HIPPA information release. If so, complete their required form and submit it to PERS with your application.  

Total disability must be supported by your physician specialist from your date of disability (last day on the job or last date paid) to the date of application.  

If your disability is duty-related and you have filed a workers’ compensation claim, PERS will request your workers’ compensation report.  

For some disabling conditions, PERS requires reports to be submitted by certain physician specialists: 

• Mental or emotional disorders — a treating or consulting psychiatrist or psychologist.
• Orthopedic injuries or disease — a treating or consulting orthopedic specialist or orthopedic surgeon.
• Neurological injuries or disease — a treating or consulting neurologist or neurosurgeon.
• Fibromyalgia — a treating or consulting rheumatologist and ongoing treatment from a rheumatologist or physical medicine and rehabilitation specialist.

PERS may require reports from other physician specialists, depending on your condition. 

If you’re not sure your physician specialist meets PERS criteria, contact Member Services for assistance. 

If you are a general service member, you must be unable to perform any work you are qualified to do, not just your last or usual job.  

If you are a police and firefighter member, you must be unable to perform any work you were qualified to perform in your last or usual job.  

When you submit your disability eligibility application, you also will complete a medical/nonmedical release form. 

Once your forms are received, PERS will send requests to: 

• Your doctor(s), hospital, or clinic for medical information.
• Your employer.
  AND
• Workers’ compensation carrier and disability insurance company, if applicable.

After documentation is received, PERS staff, a medical adviser, and a PERS Board representative will review your documents to determine eligibility using Oregon Revised Statutes and Oregon Administrative Rules.  

Yes, you can apply within five calendar years of the date of separation (last day worked or last day of paid leave) from your PERS-participating employer, if:  

• Your disabling condition has been continuous from your date of separation through to your disability application date with supporting medical documentation from your physician specialist.
• You have not withdrawn your Tier One/Tier Two member account.
  AND
• You have not worked in any capacity, including non-PERS employment and self-employment, during this time.

You must apply within six months of your separation date. After that timeframe, you are not eligible. 

If you were disabled within that six-month period; have not withdrawn your Tier One/Tier Two member account; and you continue to be disabled, you may be eligible for disability benefits.  

The disability determination can take up to six months, sometimes longer, from the date PERS receives your disability eligibility application.  

If your application for disability eligibility is approved, you will receive the disability benefit application and required forms you will need to complete for your disability benefits.  

Your employer also must submit mandatory information to PERS before benefits can be paid. 

After your disability eligibility application has been approved, your effective date of disability is the first of the month after all salary and paid leave has been paid to you by your employer. Lump-sum payments of vacation or compensatory time are excluded.  

No payment can be made until the required 90-consecutive-day period of disability has elapsed, except in terminal cases. 

After the 90-day period of disability has elapsed, benefits are paid retroactively to your effective date of disability retirement.  

You are not required to use all your sick leave. 

Your disability benefits will not begin until you receive the last of any paid leave, including sick leave. However, this does not include lump-sum payments for accrued vacation leave or compensatory time.  

You will receive a disability estimate request form with your disability eligibility application packet. 

If you would like an estimate of your benefits, you must complete this form and send it in with your disability eligibility application.  

PERS will then send you an estimate of your disability benefits. 

The same calculation methods are used to calculate either disability or service retirement benefits: 

• If you are a general service member, the years and months of service you would have accrued had you been able to work to age 58 will be used to calculate a monthly disability benefit.
• If you are a police officer or a firefighter member, the years and months of service you would have accrued had you been able to work to age 55 will be used to calculate a monthly disability benefit.

Lump-sum payment options are not available under a disability retirement. All other payment options are available. 

The option you choose will apply to the time you are receiving disability retirement benefits and will continue for life unless you are no longer disabled and your disability payments are discontinued.  

If your disability retirement is discontinued, you will select a new option when you apply for service retirement. 

You have 60 days from the date of the first benefit payment to change your option. 

If you continue to meet the PERS disability eligibility criteria, the disability retirement benefits will continue for your lifetime and possibly your beneficiary’s lifetime, depending on the option you select.  

Yes, the law requires periodic reviews of your disability status to continue disability retirement benefits. 

Schedule routine visits with your physician specialist so that current information (within three months of your review date) will be available for your periodic review.  

As part of the review, PERS also will contact the Oregon Employment Department to determine if you are working and may request a copy of your annual tax return.  

Medical reviews are normally no longer required once you reach normal retirement age, which depends on your membership and service types:  

• 58 years old for general service Tier One members.
• 60 years old for general service Tier Two members.
• 55 years old for police officer or firefighter members.

You can cancel your application for disability eligibility or disability benefit any time before the date your first disability retirement benefit is issued.  

To cancel, you must complete a Cancellation of Application for Disability Benefits form. 

PERS will notify you by regular and certified mail if your disability eligibility application is denied. 

The first notification is an “intent to deny” letter and is considered a preliminary denial. This letter will cite the reasons for the determination.  

You will have 30 days to provide PERS with additional documentation to support your claim. You also will have the option of requesting a time extension of 30 additional days.  

If PERS does not receive additional information supporting your claim or if the additional information submitted does not change the determination, we will send you a second notification by regular and certified mail.  

The second notification is a formal denial. This denial letter will cite the reasons for the determination and provide you with your appeal rights. You will have 45 days to submit your appeal.  

When you receive your disability benefit application, you also will receive information about purchasing PERS-sponsored health insurance plans through the PERS Health Insurance Program.  

If you have any questions, contact PERS Member Services. 

If you are medically released to work before reaching normal retirement age, you must notify PERS immediately.  

If this occurs, your disability benefit will end, and your account balance will be reinstated to the amount in your account when your disability retirement became effective.  

You will be invoiced for any payments for which you were not entitled. 

If you are receiving a disability retirement benefit and you return to work in any capacity, including self-employment, you must notify PERS immediately that you have returned to work.  

In some cases, you may be able to return to work and still receive disability retirement benefits. 

In other cases, your disability retirement benefit is reduced based on the amount of earnings from your job. In other cases, disability retirement benefits may be discontinued entirely.  

If you return to work for a PERS-participating employer, you are limited to 599 hours in a calendar year. If you work 600 or more hours in a calendar year, your disability retirement benefit will be discontinued as of the first of the calendar year that you returned to work. You will be invoiced for benefits for which you were not entitled. If you are working for a PERS-participating employer, are self-employed, or if you are working for a non-PERS-participating employer, you must report your income monthly to PERS.  

For additional information regarding returning to work, read the Disability retirement work income guidelines for Tier One/Tier Two members webpage.  

While receiving unemployment benefits, you must certify weekly that you are physically and mentally able to work, available for work, and actively seeking work.  

Receiving unemployment benefits may affect your eligibility for disability retirement benefits, which requires that you be totally disabled and unable to perform any work for which you are qualified.  

You are eligible to request a distribution of your Individual Account Program (IAP) account if you are separated from your employer and have reached early retirement age.  

If you have not reached early retirement age, you may withdraw your IAP account. Check with your tax professional about possible tax implications.  

You must be separated from all PERS-participating employment before you can request a distribution of your IAP account. 

Oregon Revised Statute Chapter 656 allows a member who received a PERS disability retirement benefit or workers’ compensation benefit after January 1, 1985, to receive service retirement credit for that period if the member returns to employment with a PERS-participating employer after the period of disability and subsequently applies for a service retirement.  

If your disability was caused by a job-related injury or illness, the cost of the additional retirement service credit is charged to your employer at the time of injury.  

If you received workers’ compensation benefits, you must request this service time in writing and provide proof of your approved claim.  

If you wish to restore creditable service for the period of disability, and your disability was not caused by your job, you must pay the full cost of the anticipated lifetime monthly benefit increase. This purchase is available when no other creditable service time has been given for that time period. The full cost, whether paid by your employer or you, only restores service time. No funds are placed into your account.