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Disability Retirement

The Commonwealth provides retiree insurance benefits for Active Participants who become disabled. Disability Retirement benefits include discounted health care premiums, group life insurance, and dental coverage. 

Eligibility

Active participants who become disabled must meet the following criteria to participate in the Commonwealth’s program of disability retiree benefits:

1. Participants must currently be a member of the ORP with assets maintained in the program.
2. If the disability is not work-related, the participant must have completed ten or more Years of Service. The Board of Higher Education determines eligibility.
3. If the disability occurs while on the job at any age, there is no service requirement.
   The Board of Higher Education makes this determination based on eligibility for Workers’ Compensation benefits.
4. The participant's employment with the Commonwealth must be terminated.
5. The participant must receive a Monthly Income Benefit under the ORP Long Term Disability insurance policy.

Premium Deductions

Participants must draw the Monthly Income Benefit under the Program’s long term disability insurance policy. The insurance company deducts monthly premiums and forwards the premiums to the Board of Higher Education each month. The insurance company may require written authorization to deduct premiums. The Board of Higher Education remits the premiums to the Group Insurance Commission on your behalf.

Adequacy of Income

The participant's Monthly Income Benefit must be sufficient to pay the cost of Disability Retirement benefits. The Monthly Income Benefit is considered adequate when the sum of monthly insurance premiums does not exceed eighty per cent (80%) of the gross Monthly Income Benefit. If the participant's Monthly Income Benefit is not adequate, the GIC will send a bill to the participant's home address each month for the cost of benefits. The participant is responsible for paying this bill on a timely basis, directly to the GIC.

Income Starting Date

The participant begins receiving the Monthly Income Benefit within 60 days of the later of:

1. The participant's termination of employment with the Commonwealth, or
2. The participant's notice to the Group Insurance Commission of the intent to apply for Retiree Benefit coverage.

When Monthly Income Benefit Ends

Monthly Income Benefits typically end when the participant reaches age 65. At that time, participants begin to receive retirement income from the ORP retirement account. Premiums for retiree benefits will then be deducted from retirement income.