RETURNING TO SERVICE AFTER A SERVICE-CONNECTED DISABILITY (SCD)

In cases where the Board of Retirement finds, based on medical examination, that a member who has been granted a service-connected disability is no longer permanently incapacitated, the member may return to County employment. The member’s return is contingent upon an employer’s offer to rehire.

Contribution Rate

The retirement plan contribution rate for a returning member is based on the member’s age at the time of reentry into the retirement system. Any service credit earned in the course of reemployment is added to the years of service credit the member had accrued at the time of the SCD.

Reinstatement Procedure

The procedure for members seeking to return to service after an SCD requires the member to submit two documents to LACERA:

  • Letter from physician stating that the applicant is no longer disabled
  • Letter from department stating intent to rehire applicant

Upon receipt of these documents, LACERA will:

  • Obtain authorization from the member for a release of medical records
  • Obtain medical records; review all documents for accuracy and completeness
  • Conduct interviews with the department and the member
  • Arrange for medical evaluation of the member

After the physician’s report is received, LACERA will:

  • Review medical reports
  • Prepare documents for presentation to the Board of Retirement, requesting reemployment of applicant

If the Board of Retirement finds the applicant is no longer disabled and his or her department elects to rehire, LACERA will:

  • Send the hiring department a letter, within three days of Board of Retirement approval, confirming the board’s action and requesting written confirmation of effective date of reemployment
  • Suspend returning employee’s retirement benefit, effective as of reemployment date
  • Place legal hold on member’s retirement account to ensure no additional retirement benefits are distributed
  • Issue the member a special check for the total of any retirement benefits due up to the date of reemployment
  • Process the member’s active membership within one day after issuing of check

If the Board of Retirement finds the applicant is no longer disabled, but his or her department elects not to rehire:

  • Member’s status is changed from SCD to service retirement
  • Monthly allowance remains unchanged
  • LACERA will adjust amount of taxable income reported on Form 1099-R

3/26/14