Opinion ID: 1292625
Heading Depth: 1
Heading Rank: 3

Heading: when should benefits begin?

Text: Petitioner Gonzales also argues that Regulation VI(C) is an unconstitutional statute of limitations. Regulation VI(C) provides: Effective Date of Benefits (1) The effective date of disability benefits shall be the first day of the month following the member's termination of employment, or the first day of the month following receipt of the member's application, whichever is later. (Emphasis added.) This regulation is within the scope of power vested in the Board by the Act. The legislature, through the Act, gives authority to the Board to grant disability benefits after an applicant has been certified disabled. Delaying benefits until the time of application falls within the statutory grant because the Board must have information upon which to base its disability decision. This logically and reasonably falls within the grant of authority vested in the ERB. The ERB exceeded its authority and abused its discretion in creating Regulation VI(A) by requiring divestment of the contract before the application would be considered. However, requiring an application before awarding benefits is an acceptable use of the Board's power. So the question remaining is when should benefits begin? Regulation VI(C) provides that benefits should begin either one month after termination or one month after an application is received, whichever is later. Notice of disability is what is necessary, and in this instance, the ERB had notice of disability through the filing of an application March 1, 1985. Benefits for Ms. Gonzales should have begun on April 1, 1985, one month after receipt of her application. It would serve no useful purpose to go back and try to reconstruct the period when she was disabled but still maintained an interest in the bus contract.