Comptroller, SEBAC announce disability pension survey penalties

Comptroller Sean Scanlon recently announced the state has reached a deal to implement penalties for individuals who receive disability pension benefits and who fail to respond to an annual survey about other income they receive.

Under the new deal, which the state and the State Employees Bargaining Agent Coalition (SEBAC) recently reached, individuals who receive disability pension benefits will received “enhanced communication” about the need to fully fill out the survey.

The survey asks questions about what kind of income recipients receive from sources like social security and workers’ compensation, as well as business or self-employment income received during the previous year.

“Until today, there were no consequences for failure to fill out this survey.” the comptroller’s office stated in a press release accompanying the announcement.

That “enhanced communication” will include three written notices sent out to recipients over the course of 90 days. If an individual does not fill out the survey or provide all information and documentation the survey requires, their benefits will be reduced. However, the reduction will not fall below the “amount necessary to continue health insurance coverage” to protect recipients who can’t fill out the survey for medical reasons.

The press release also notes that individuals who do not fill out the survey will receive additional communication about the reason for the reduction. Full benefits will also be retroactively restored upon completion of the survey.

The survey for this year was distributed today and recipients have until August 16 to fill it out. Penalties for individuals who do not respond will begin on October 21.

“Any abuse of the system, however rare, is unacceptable. The reforms announced today will help us identify potential fraud and strengthen the system for those who truly need it.” Scanlon said in a press release.

Announcement of the agreement with SEBAC comes days after the Division of Criminal Justice announced that an investigation into worker’s compensation fraud against state senator Paul Cicarella was ending because the statute of limitations had expired.

Scanlon previously announced a slate of proposed reforms to the disability pension system in April, including giving the comptroller’s office the authority to investigate disability retirees and conduct audits of benefits. Penalties for not filling out the survey were also among the proposed reforms and are so far the only item on Scanlon’s list to be implemented.

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