BASIC (09-08)

Under Minnesota law, a person employed as a police officer or firefighter who becomes disabled from an injury or illness arising out of or in the course of the line of duty shall be entitled to a disability benefit (i.e., PDB) if they are not entitled to a service pension (i.e., retirement benefit). To determine if the PDB will cause offset, see DI 52135.130A. below. For a definition and information about service pensions, see DI 52135.130B. below.

A. State disability pension

Receipt of a state disability pension may cause offset. Offset a state disability pension using the following steps:

1. Offset disability benefits based on local employment less than 85% of which is covered for FICA purposes.

2. Advise the individual to notify SSA when the disability benefit converts to a service pension if offset applies.

3. Remove offset the date the individual is entitled to the service pension.

Do not offset if the disability benefit is based on local service all or substantially all of which (i.e., 85 percent or more) is covered for FICA purposes.

B. Service pension

A service pension is a retirement benefit based on years of service or other non-disability requirements (i.e., is not based on disability and therefore does not cause offset).

The State disability pension discussed in DI 52135.130A. above ends when the individual becomes eligible for a service pension. When the disability benefit is converted to a service pension (i.e., PDB converted to retirement benefit), the service pension is generally provided on the same terms as apply under regular retirement. The following factors apply when a disability pension is converted to a retirement pension:

• The disability benefit terminates when the disabled person attains the minimum age or number of years of service to begin receiving a service pension in the amount equal to the amount of the disability benefit. When this occurs, the disabled person is deemed a service pensioner and is entitled to receive a service pension.

• There is no requirement that a person must remain disabled in order to receive a service pension once the disability benefit ceases.

• Once the disabled person becomes a service pensioner, that person cannot be eligible for disability benefits after that date even if he/she becomes “permanently disabled.”

• If a converted service pensioner does become “permanently disabled,” that person can receive a service pension equal to the amount of the disability benefit which would have been paid if the person had been entitled to the disability benefit; or the amount of the service pension, whichever is greater.

C. References

• DI 52125.010 - Determining When to Apply Public Disability Benefit (PDB) Offset.

• DI 52125.015 - Determining Public Disability Benefit (PDB) for State and Local Employment.

• https://www.revisor.leg.state.mn.us/statutes/?id=423A.11&year=2007 - Minnesota Statute 423A.11 explains the recomputation of a disability benefit as a service pension