AGO 1989-012.

Case DateFebruary 10, 1989
CourtKansas
Kansas Attorney General Opinions 1989. AGO 1989-012. February 10, 1989ATTORNEY GENERAL OPINION NO. 89-12James B. McKay, Jr. City Attorney P.O. Box 49 El Dorado, Kansas 67042 Re: State Boards, Commissions and Authorities--Public Employees Retirement Systems; Kansas Public Employees Retirement System--Disability Benefits; Firefighters Relief Association Synopsis: Disability payments received from a firefighters association insurance policy may be deducted in calculating long-term disability benefits payable to members of the Kansas Public Employees Retirement System. Cited herein: K.S.A. 40-1701; 40-1703; K.S.A. 1988 Supp. 40-1707; 74-4927. * * * Dear Mr. McKay: As attorney for the City of El Dorado, you have asked our opinion regarding the El Dorado Firemen's Relief Association (Association) and disability benefits under the Kansas Public Employees Retirement System (KPERS). Specifically, you ask whether the benefits from the Association's insurance policy that pays disability income to the Association's members can be legally deducted from the long-term disability payments under KPERS. The KPERS board of trustees "may establish a plan of death and long-term disability benefits to be paid to the members of the retirement system. . . ." K.S.A. 1988 Supp. 74-4927(1). The statute further provides:
"Such plan may provide that any amount which a member receives as a social security benefit or a disability benefit from any source by reason of employment including, but not limited, [sic] to workman's compensation benefits may be deducted from the amount of insured disability benefit payments under such plan. . . ." K.S.A. 1988 Supp. 74-4927(1)(b). (Emphasis added).
KPERS has adopted a long-term disability plan funded by disability insurance issued by Security Benefit Life Insurance Company (SBL). Under the heading "Disability Income Benefits," the policy states as follows:
"The Disability Income Benefit shall be 65% of the Member's Current Annual Rate of Compensation on the date such disability commenced, payable in equal monthly installments, reduced by the Social Security primary disability or retirement benefit, one-half of the Worker's Compensation benefit, and by any other disability benefit from any other source by reason of employment, subject to a minimum disability benefit of $100.00 per month." (Emphasis added).
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