61.615 Disability retirement allowance -- Reduction -- Discontinuance -- Medical examiners -- Hearings and appeals -- Early retirement upon discontinuance of disability allowance. - Kentucky Statutes

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61.615 Disability retirement allowance -- Reduction -- Discontinuance -- Medical examiners -- Hearings and appeals -- Early retirement upon discontinuance of
disability allowance. (1) If the board's medical examiner determines that a recipient of a disability retirement allowance is, prior to his normal retirement date, employed in a position with the
same or similar duties, or in a position with duties requiring greater residual
functional capacity and physical exertion, as the position from which he was
disabled, except where the recipient has returned to work on a trial basis not to
exceed nine (9) months, the system may reduce or discontinue the retirement
allowance. Each recipient of a disability retirement allowance who is engaged in
gainful employment shall notify the system of any employment; otherwise, the
system shall have the right to recover payments of a disability retirement allowance
made during the employment. (2) If the board's medical examiner determines that a recipient of a disability retirement allowance is, prior to his normal retirement date, no longer incapacitated by the
bodily injury, mental illness, or disease for which he receives a disability retirement
allowance, the board may reduce or discontinue the retirement allowance. (3) The system shall have full power and exclusive authority to reduce or discontinue a disability retirement allowance and the system shall utilize the services of a medical
examiner as provided in KRS 61.665, in determining whether to continue, reduce,
or discontinue a disability retirement allowance under this section.
(a) The system shall select a medical examiner to evaluate the forms and medical information submitted by the person. If there is objective medical evidence of
a mental impairment, the medical examiner may request the board's licensed
mental health professional to assist in determining the level of the mental
impairment. (b) The medical examiners shall be paid a reasonable amount by the retirement system for each case evaluated. (c) The medical examiner shall recommend that disability retirement allowance be continued, reduced, or discontinued.
1. If the medical examiner recommends that the disability retirement
allowance be continued, the system shall make retirement payments in
accordance with the retirement plan selected by the person. 2. If the medical examiner recommends that the disability retirement
allowance be reduced or discontinued, the system shall send notice of
the recommendation by United States first-class mail to the person's last
address on file in the retirement office.
a. The person shall have sixty (60) days from the day that the system
mailed the notice to file at the retirement office additional
supporting employment or medical information and certify to the
retirement office that the forms and additional supporting
employment information or medical information are ready to be
evaluated by the medical examiner or to appeal the recommendation of the medical examiner to reduce or discontinue
the disability retirement allowance by filing at the retirement office
a request for a formal hearing. b. If the person fails or refuses to file at the retirement office the
forms, the additional supporting employment information, and
current medical information or to appeal the recommendation of
the medical examiners to reduce or discontinue the disability
retirement allowance, his retirement allowance shall be
discontinued on the first day of the month following the expiration
of the period of the sixty (60) days from the day the system mailed
the notice of the recommendation to the person's last address on
file in the retirement office. (d) The medical examiner shall make a recommendation based upon the evaluation of additional supporting medical information submitted in
accordance with paragraph (c)2.a. of this subsection.
1. If the medical examiner recommends that the disability retirement
allowance be continued, the system shall make disability retirement
payments in accordance with the retirement plan selected by the person. 2. If the medical examiner recommends that the disability retirement
allowance be reduced or discontinued based upon the evaluation of
additional supporting medical information, the system shall send notice
of this recommendation by United States first-class mail to the person's
last address on file in the retirement office.
a. The person shall have sixty (60) days from the day that the system
mailed the notice of the recommendation to appeal the
recommendation to reduce or discontinue the disability retirement
allowance by filing at the retirement office a request for formal
hearing. b. If the person fails or refuses to appeal the recommendation of the
medical examiners to reduce or discontinue the disability
retirement allowance, his retirement allowance shall be
discontinued on the first day of the month following the expiration
of the period of the sixty (60) days from the day the system mailed
the notice of the recommendation to the person's last address on
file in the retirement office. (e) Any person whose disability benefits have been reduced or discontinued, pursuant to paragraph (c)2. or (d)2. of this subsection, may file at the
retirement office a request for formal hearing to be conducted in accordance
with KRS Chapter 13B. The right to demand a formal hearing shall be limited
to a period of sixty (60) days after the person had notice, as described in
paragraph (c) or (d) of this subsection. The request for formal hearing shall be
filed with the system, at the retirement office in Frankfort. The request for
formal hearing shall include a short and plain statement of the reasons the
reduction, discontinuance, or denial of disability retirement is being contested. (f) Failure of the person to request a formal hearing within the period of time specified shall preclude the person from proceeding any further with
contesting the reduction or discontinuation of disability retirement allowance,
except as provided in subsection (6)(d) of this section. This paragraph shall
not limit the person's right to appeal to a court. (g) A final order of the board shall be based on substantial evidence appearing in the record as a whole and shall set forth the decision of the board and the facts
and law upon which the decision is based. If the board orders that the person's
disability retirement allowance be discontinued or reduced, the order shall
take effect on the first day of the month following the day the system mailed
the order to the person's last address on file in the retirement office. Judicial
review of the final board order shall not operate as a stay and the system shall
discontinue or reduce the person's disability retirement allowance as provided
in this section. (h) Notwithstanding any other provisions of this section, the system may require the person to submit to one (1) or more medical or psychological
examinations at any time. The system shall be responsible for any costs
associated with any examinations of the person requested by the medical
examiner or the system for the purpose of providing medical information
deemed necessary by the medical examiner or the system. Notice of the time
and place of the examination shall be mailed to the person or his legal
representative. If the person fails or refuses to submit to one (1) or more
medical examinations, his rights to further disability retirement allowance
shall cease. (i) All requests for a hearing pursuant to this section shall be made in writing. (4) The board may establish an appeals committee whose members shall be appointed by the chair and who shall have the authority to act upon the recommendations and
reports of the hearing officer pursuant to this section on behalf of the board. (5) Any person aggrieved by a final order of the board may seek judicial review after all administrative appeals have been exhausted by filing a petition for judicial review
in the Franklin Circuit Court in accordance with KRS Chapter 13B. (6) If a disability retirement allowance is reduced or discontinued, the person may apply for early retirement benefits as provided under KRS 61.559, subject to the following
provisions:
(a) The person may not change his beneficiary or payment option;
(b) If the person has returned to employment with an employer participating in one (1) of the systems administered by Kentucky Retirement Systems, the
service and creditable compensation shall be used in recomputing his benefit,
except that the person's final compensation shall not be less than the final
compensation last used in determining his retirement allowance; (c) The benefit shall be reduced as provided by KRS 61.595(2);
(d) The person shall remain eligible for reinstatement of his disability allowance upon reevaluation by the medical review board until his normal retirement age. The person shall apply for reinstatement of disability benefits in
accordance with the provisions of this section. An application for
reinstatement of disability benefits shall be administered as an application
under KRS 61.600, and only the bodily injuries, mental illnesses, diseases, or
conditions for which the person was originally approved for disability benefits
shall be considered. Bodily injuries, mental illnesses, diseases, or conditions
that came into existence after the person's last day of paid employment shall
not be considered as a basis for reinstatement of disability benefits. Bodily
injuries, mental illnesses, diseases, or conditions alleged by the person as
being incapacitating, but which were not the basis for the award of disability
retirement benefits, shall not be considered. If the person establishes that the
disability benefits should be reinstated, the retirement system shall pay
disability benefits effective from the first day of the month following the
month in which the person applied for reinstatement of the disability benefits;
and (e) Upon attaining normal retirement age, the person shall receive the higher of either his disability retirement allowance or his early retirement allowance. (7) No disability retirement allowance shall be reduced or discontinued by the system after the person's normal retirement date except in case of reemployment as
provided for by KRS 61.637. If a disability retirement allowance has been reduced
or discontinued, except if the person is reemployed as provided for by KRS 61.637,
the retirement allowance shall be reinstated upon attainment of the person's normal
retirement date to the retirement allowance prior to adjustment. No reinstated
payment shall be less than the person is receiving upon attainment of the person's
normal retirement date. Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 77, sec. 15, effective June 25, 2009. -- Amended 2004 Ky. Acts ch. 36, sec. 18, effective July 13, 2004. -- Amended 1996 Ky. Acts
ch. 167, sec. 28, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 473, sec. 1,
effective July 15, 1994; and ch. 485, sec. 17, effective July 15, 1994.