Supplemental Disability Allowance (Salary Supplement)

A supplemental disability allowance, or “salary supplement,” is a benefit for active members who are approved for a service-connected or nonservice-connected disability retirement, but want to keep working with the County in an alternative position. The salary supplement helps make up any difference in pay.

The salary supplement enables disabled members to work and maintain their current income while continuing to receive County benefits and earn service credit, which can increase their future retirement benefits. (Safety members also retain their safety status.) When they eventually retire, the member receives all the benefits allowed under their disability retirement type.

If you are considering a disability retirement and want to continue working for the County, the following types of salary supplements are available.

Service-Connected Salary Supplement:

• Available for industrial (work-related) disabilities
  • You must have a permanently incapacitating condition that prevents you from continuing to work in your current job classification, and you must meet the qualifications for another, typically less arduous job classification.
  • No minimum years of service credit required
  • The maximum salary supplement allowance is 50 percent of your final average compensation.

Non-Service-Connected Salary Supplement:

• Available for non-industrial (not work-related) disabilities
• You must have a permanently incapacitating condition that prevents you from continuing to work in your current job classification, and you must meet the qualifications for another, typically less arduous job classification.
• You must have a minimum of five years of service credit.
• The maximum salary supplement allowance varies, but pays up to 33.3 percent of your final average compensation.

Eligibility for the Salary Supplement

Your plan and LACERA membership status determine your eligibility for the salary supplement:

• Members of LACERA’s contributory General Plans A, B, C, D, and G, and Safety Plans A, B, and C who become permanently incapacitated from their usual job duties due to illness or injury are eligible for a salary supplement.
• Members of LACERA’s noncontributory Plan E are not eligible, but may be eligible for other disability benefits under the County’s Long-Term Disability and Survivor Benefit Plan.
• Members who have withdrawn their retirement contributions are not eligible for disability retirement or a salary supplement.

How the Salary Supplement Works

If you, or your department on your behalf, applies for a salary supplement, a departmental or County-wide job search will be conducted to locate a vacant position appropriate for your disability. LACERA is not responsible for identifying vacant positions.

The position must align with any permanent work restrictions, and you must meet the minimum qualifications required for the position. The position may be within your current department or another County department, and you must voluntarily accept the position offered. Availability of a suitable position is not guaranteed.

If you are approved for a salary supplement, LACERA will pay the difference between your former salary and the new position’s salary, up to the maximum benefit you would have been eligible for under a disability retirement. (See Salary Supplement Examples below.)

How to Apply

To qualify for a salary supplement, you must apply for a disability retirement and submit a completed Application for Supplemental Disability Allowance. Preferably, you should submit both applications at the same time, but you don’t have to. You have six months from the time you file for disability to submit the salary supplement application, which must be completed by you and your department.

How Is the Benefit Paid?

If you are granted the supplemental disability allowance, the salary for your new job classification is paid by the County. The salary supplement is paid monthly by LACERA by mailed check. Direct deposits are not available at this time. Checks are usually mailed by the 25th of each month.

Following are salary supplement examples taken from the Disability Retirement Step-by-Step Guide. Salary supplement percentages and numbers vary based on the type of benefit granted. See pages 5–7 of the guide for further explanation.

Salary Supplement Examples

The following examples show how the salary supplement is paid for a service-connected disability. The maximum benefit that can be paid under the service-connected disability is 50 percent of the member’s final average compensation (salary).

Example 1: In this instance, a Children’s Social Worker III voluntarily demotes to Senior Typist Clerk. LACERA pays the salary difference since it does not exceed the disability retirement amount.

Example 2: In this instance, a Children’s Social Worker III voluntarily demotes to Typist Clerk II. LACERA pays the salary difference because it is equal to the disability retirement amount.

Example 3: In this instance, a Children’s Social Worker III voluntarily demotes to Typist Clerk 1. LACERA will not cover the full salary difference because it exceeds the disability retirement amount.

Requesting Retirement While Receiving a Salary Supplement

When you are ready to retire and begin receiving your disability retirement, simply contact LACERA or submit a written request stating your wish to start your disability retirement, providing your retirement date and selected retirement option.