Minnesota Statutes Retirement (Ch. 352-356B) § 353E.06. Disability benefits

Subd. 4. Disability benefit application; accrual of benefits. (a) Procedures for the application process and determining eligibility for disability benefits are defined insection 353.031.

(b) The disability benefit begins to accrue when the applicant is no longer receiving any form of compensation, whether salary or paid leave; 90 days preceding the filing of the application, or, if annual or sick leave, or any other employer-paid salary continuation plan is paid for more than the 90-day period, from the date salary ceased, whichever is latest. No member is entitled to receive a disability benefit payment when there remains to the member's credit any unused annual leave, sick leave, or any other employer-paid salary continuation benefits or under any other circumstances when, during the period of disability, there has been no impairment of the person's salary.

(c) No payment may accrue beyond the end of the month in which entitlement has terminated. If the disabilitant dies before negotiating the check for the month in which death occurs, payment must be made to the optional annuitant or beneficiary.

Subd. 5. Disability benefit termination. (a) The disability benefit paid to a disabled member terminates at the end of the month in which the employee reaches age 55, or the first of the month after the expiration of the 60-month period from the effective date of the disability benefit, whichever is later.

(b) If the disabled member is still disabled when the employee has been collecting the disability benefit for 60 months or has reached age 55, whichever is later, the employee is deemed to be a retired employee and, if the employee had elected an optional annuity under subdivision 3, must receive an annuity in accordance with the terms of the optional annuity previously elected.

(c) If the employee had not elected an optional annuity under subdivision 3, the employee may elect either to receive a single life retirement annuity computed in the manner provided insection 353E.04, subdivision 3, or to receive an optional annuity as provided insection 353.30, subdivision 3, based on the same length of service as used in the calculation of the disability benefit. Election of an optional annuity must be made within 90 days before termination of the disability benefit under paragraph (a).

(d) When an individual's disability benefit terminates under this subdivision and is recalculated as a retirement annuity, the annuity must include all prior adjustments provided underMinnesota Statutes 2008, section 11A.18, through January 1, 2009, and thereafter as provided insection 356.415.

Subd. 6. Limitation on disability benefit payments. (a) If a member receiving disability benefits resumes a gainful occupation with earnings, the amount of the member's disability benefit must be reduced as described in paragraph (b) if the total of the disability benefit and earnings exceeds the greater of:

(b) If paragraph (a) applies, the member's disability benefit must be reduced until the disability benefit plus the monthly earnings from employment do not exceed the greater of the salaries described in paragraph (a), clause (1) or (2).