NCJ Number
109607
Date Published
1986
Length
108 pages
Annotation
This study examines the emerging issue of industrial disability retirements and their problematic effect on California's Public Employees' Retirement System (PERS).
Abstract
The industrial disability retirement benefit enables a PERS member to retire at 50 percent of existing salary, tax-free, if the member suffers a qualifying on-the-job injury or illness. Qualifying injuries and illnesses have encompassed stress-related claims. There are few restrictions and many incentives for using the benefit, and its use has increased significantly in the last decade. Future projections and an analysis of PERS identified four issues which suggest the need for system reform: incentives to use the benefit, ambiguous definition of qualifying injury/illness, lack of knowledge about how the system works, and 'stakeholder' conflicts. A three-phase plan will reduce the impact of current weaknesses. Phase I will involve appropriate stakeholders convening to create a single guide that details the appropriate use of the benefit. Phase II will train supervisors to recognize early employee behavior which may issue in claims for the benefit, and it will encourage wellness programs for membership agencies. Phase III will redefine industrial disability and reduce or eliminate current incentives to use the benefit. 16 footnotes, 30-item bibliography. (Author summary modified)