Eligible workers may seek retirement credit for temporary disability

A member may establish retirement credit for time they received temporary disability benefits, with retirement board approval. This applies to members who are not employees of political subdivisions. The benefits must come through a workers’ compensation program run by or for the employer. The employer must certify the disability period and the member’s salary before the disability. Contributions are based on that salary, plus interest if required. Members may apply during or after the disability period.

A member subject to mandatory retirement may establish this credit at no cost to them. This covers members subject to mandatory retirement under the cited retirement law. This applies to credit under this section. Members who received disability credit under this section before July 1, 2026, are excluded. The member must apply on or after July 1, 2026.

A political subdivision may let its employees establish disability retirement credit by passing a resolution and accepting responsibility for the cost. This applies to employees of participating political subdivisions. A resolution adopted on or after July 1, 2026, may allow workers subject to mandatory retirement to get credit at no cost, if the employer authorizes it. A subdivision with an earlier resolution that made employees pay may pass a later resolution allowing no-cost credit for employees subject to mandatory retirement. Credit may not exceed one year for each temporary disability period. A subdivision may adopt this option on or after July 1, 2026. It takes effect when its resolution does.