This PML is superseded by the HR Manual and is no longer active.
PML Number
2002-005
Title
Involuntary Leave Upon Filing for Disability Retirement
Date Issued
January 24, 2002
Owner
Classification and Compensation Division
Contact
Clarice Pace
Personnel Program Technician
(916) 324-9381
ClaricePace@dpa.ca.gov
Signed By
Michael T. Navarro, Chief of Classification and Compensation Division
Content
The purpose of this memorandum is to provide departments with program information and guidelines when applying for disability retirement on behalf of an employee, and if appropriate, placing the employee on Involuntary Leave (IL).  Senate Bill 1073 amended Government Code (GC) Section 19253.5 effective January 01, 2000 providing the appointing authority the ability to place an employee on IL upon filing an application for disability retirement.  The amendment provides for a temporary disability allowance (TDA) for employees who exhaust their leave credits and programs while on IL.  The employee’s health benefits are also continued.  The intent of this legislation is to reduce the financial hardship to an employee who is awaiting a disability retirement decision from the California Public Employees’ Retirement System (CalPERS).  An employee who is placed on IL shall be subject to the following provisions:
“19253.5(i)(1)  If the appointing power, after considering the conclusions of the medical examination provided for by this section or medical reports from the employee’s physician and other pertinent information, concludes that the employee is unable to perform the work of his or her present position or any other position in the agency and the employee is eligible and does not waive the right to retire for disability, the appointing power shall file an application for disability retirement on the employee’s behalf.  The appointing power shall give the employee 15 days written notice of its intention to file such an application and a reasonable opportunity to respond to the appointing power prior to the appointing power’s filing of the application.  However, the appointing power’s decision to file the application is final and is not appealable to the State Personnel Board.
“(2)  Notwithstanding Section 21153, upon filing the application for disability retirement, the appointing power may remove the employee from the job and place the employee on involuntary leave status.  The employee may use any accrued leave eligible during the period of the involuntary leave.  If the employee’s leave credits and programs are exhausted or if they do not provide benefits at least equal to the estimated retirement allowance, the appointing power shall pay the employee an additional temporary disability allowance so that the employee receives payment equal to the retirement allowance.  The appointing power shall continue to make all employer contributions to the employee’s health plans during the period of the involuntary leave.
“(3)  If the application for disability retirement is subsequently granted, the retirement system shall reimburse the appointing power for the temporary disability allowance, which shall be deducted from any back disability retirement benefits otherwise payable to the employee.  If the application is denied, the appointing power shall reinstate the employee to his or her position with back salary and benefits pursuant to subdivision (g), less any temporary disability allowance paid by the appointing power.  The appointing power shall also restore any leave credits the employee used during the period of the involuntary leave.”
This legislation requires coordination between several departments:  State Personnel Board (SPB), Department of Personnel Administration (DPA), State Controller’s Office (SCO), and CalPERS.
SPB is responsible for hearing appeals regarding IL.  The employee may not appeal to SPB the appointing power’s decision to file the application.  However, if an employee who is placed on an IL contends that his or her appointing power has not complied with the provisions of GC 19253.5, the employee may file an appeal to SPB.
DPA provides policy provisions relating to the employee’s leave credits and programs, i.e., industrial disability leave programs, nonindustrial disability leave programs, and health plans during the period of IL.
SCO is responsible for maintaining the employee’s employment history and processing the employee’s payroll documents.  An SCO Payroll Letter will be issued providing instructions for documenting and issuing payments to employees who are placed on IL.
CalPERS processes the TDA estimate and the retirement application, and provides information on the retirement benefit options available to the employee, pursuant to GC21419.5.  CalPERS is also responsible for deducting the amount of interim disability allowance made to a State member as provided by subdivision (i) of Section19253.5.
In order to assist departmental personnel in implementing IL and disseminating information to eligible employees, this memorandum also includes the following attachments:
1.	Administrative Guidelines (Attachment I).
2.	A sample Notice Letter required by GC 19253.5(i) (Attachment II).
3.	CalPERS Disability Retirement Estimate Request form (Attachment III).
4.	Explanation of the optional retirement benefit allowance from CalPERS (Attachment IV).
Please direct your questions regarding IL as follows:
SPB
Appeals Division
(916) 653-0544
DPA Leaves/Programs
(Non-Work Related)
Personnel Services Branch
(916) 324-0439
DPA Benefits 
(Work Related)
Worker’s Compensation Division
(916) 324-3247
SCO PAR History/Payroll
Refer to Payroll Letter
CalPERS TDA Estimates
Member Services Division
(800) 352-2238
CalPERS Disability Retirement Application 
Benefits Services
(800) 352-2238