Disability benefits overview
The TRA disability program provides partial income replacement if you become unable to work due to a physical or mental impairment. Your disability benefit is calculated using the standard retirement formula but without any reduction for age.
ELIGIBILITY
To be eligible for disability benefits, you must be actively working in a TRA-eligible role or on an approved leave of absence at the time the disability occurs. Under Minnesota law, your employer must certify that your physical or mental impairment is the primary reason you must terminate your TRA-eligible employment. Additionally, you must meet the three-year vesting requirement, and at least two of those three years must occur after the most recent date in which you became an active TRA member.
If you have service across multiple Minnesota public pension systems, you can combine your service to meet the three-year vesting threshold, provided you have at least one-half year of service in each fund. Because the systems do not share a single application process, you must submit separate disability applications to each individual fund.
The timing of your application is crucial. You must submit your application for disability benefits within the 18-month period following your termination of employment due to your condition. While you have 18 months to apply, disability benefits will not begin to accrue more than six months before your application is filed with TRA.
Many members remain on unpaid medical leave while receiving disability benefits, which allows them to continue coverage under their employers’ group health insurance programs. You may also be eligible for disability benefits offered through your employer or the Social Security Administration.
‘TOTAL AND PERMANENT’ DISABILITY REQUIREMENT
To qualify for TRA’s disability program, you must meet the definition of “totally and permanently disabled” under Minnesota law. This is defined as the inability to engage in any substantial gainful activity because of a physical or mental impairment. The impairment must be expected to last at least one year. You will need to submit medical reports about your condition and whether it meets these thresholds.
APPLICATION AND REQUIRED FORMS
The most convenient way to apply for a disability benefit is to sign in to your myTRA account and follow the step-by-step instructions. You also can call TRA to request a paper disability estimate and application packet by mail.
You must complete and return the following documents for TRA to process your claim:
- Disability Benefit Application: This application must be completed and signed by you or an authorized representative and submitted within 18 months of your termination.
- Release of Medical Information: This form grants TRA permission to request the medical records necessary to evaluate your claim and must be submitted with your application.
- Medical Examination Report: You are required to submit two separate medical reports, both referencing the same medical condition. The first must be completed by a licensed physician. The second may be completed by a licensed physician, advanced practice registered nurse (APRN), chiropractor, physician assistant (PA), or—with respect to a mental impairment—a psychologist.
- Employer Certification of Service at Time of Disability: This form verifies that your TRA-eligible employment ended due to your disability. It must be completed by your most recent employer.
You are responsible for ensuring all reports and certifications are submitted to TRA.
TAXES
If you have not yet reached the TRA minimum retirement age, your disability income must be reported as ordinary income. If you are older than the TRA minimum retirement age, a portion of your disability income may be disbursed tax-free.
If you are approved for disability benefit payments and do not submit federal and Minnesota state tax withholding certificates, TRA is required to apply default withholding rates of “single with no adjustments” for federal tax withholding, and 6.25% for Minnesota state tax withholding.
METHOD OF PAYMENT
Having your monthly benefit electronically deposited ensures you receive your payments on the first banking day of each month, and it protects you against mail delays or theft. Submit a TRA direct deposit agreement to take advantage of this easy way to receive payments.
If you choose not to use direct deposit, a paper check will be mailed to your address on file. Please be aware that the post office cannot forward TRA checks; you must notify us immediately if your address changes.
PROCESSING YOUR APPLICATION
TRA reviews all medical evidence to determine your claim for total and permanent disability benefits.
- If your claim is denied: You have the right to appeal the decision. Your appeal must be postmarked or delivered in person no later than 60 days after receiving notice of the denial. Any additional medical evidence you provide for this review is at your own expense.
- If your claim is approved: You will receive an initial payment that is retroactive to your established accrual date. Following this, regular monthly payments are made during the first week of each month.
ONGOING MEDICAL EXAMINATIONS
To ensure continued eligibility, TRA requires regular medical examinations. These typically occur annually for the first five years of your disability and once every three years thereafter. Benefits continue as long as you remain “totally and permanently disabled” as defined by Minnesota law.
WORKERS' COMPENSATION
If your disability is related to a workers’ compensation claim, be aware that workers’ compensation payments may be reduced by the amount of any TRA disability benefit you receive. For detailed information on how these benefits interact, contact the Minnesota Department of Labor and Industry Workers’ Compensation Division.
WHEN PAYMENTS BEGIN AND END
Benefits begin to accrue on the day following the start of your disability, or the day following your last paid salary, whichever is later.
Important deadlines:
- The 18-month rule: You must apply for the TRA disability program within 18 months of terminating TRA-eligible employment due to total and permanent disability.
- The six-month backdate limit: Regardless of when your disability began, benefits cannot be backdated more than six months before TRA receives your disability application.
RETURNING TO WORK
If you are able to resume work in any capacity, you must notify TRA immediately. Your disability status is based on your inability to engage in “substantial gainful activity,” so employment may impact your benefits.
- Reductions: You are allowed to earn supplemental income, but there are limits. If your total combined income (your new salary plus your original TRA benefit) exceeds the salary you were earning at the time you became disabled, your TRA benefits will be reduced accordingly.
- Annual reporting: To monitor these limits you are required to submit an annual earnings form and a copy of your W-2 form to TRA for every year you receive a disability benefit.
- Full-time employment trial: If you return to full-time work, you may be granted a six-month trial work period. If your condition prevents you from continuing work during this time, your benefits can be reinstated without a new, full application. However, if you remain fully employed longer than six months, your disability benefits will cease. You would then need to submit a new application if you become disabled again in the future.
If the character and extent of your reemployment—including part-time teaching—indicates that you no longer meet the definition of “totally and permanently disabled,” your disability payments will be discontinued, regardless of your earnings level.
SURVIVOR BENEFITS AND BENEFICIARIES
Please review your beneficiary designations to ensure your loved ones are protected. If you die while receiving disability benefits, your beneficiaries will receive an estimate of the benefits available to them based on your marital status and the beneficiary designations you have on file with TRA.
TRANSITION TO RETIREMENT
When you reach normal retirement age, or the five-year anniversary of the effective date of your disability benefit, whichever is later, you will assume retirement status automatically. At that time, you will have the right to elect a lifetime annuity plan that provides payment to a beneficiary upon your death.
