Workers' Compensation

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Workers’ Compensation and Disability Workers’ Compensation payments are never IPERS-covered under any circumstances, even if paid by the employer.

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Short- and long-term disability payments are not covered if they are made by an insurance company or third party (such as a trust). However, if short- or long-term disability payments are paid directly from an employer’s own assets to an employee, then they are covered.

Frequently, organizations allow employees to supplement workers’ compensation and short- or long-term disability payments by using vacation or sick leave in order to maintain the employee’s income at or near its normal level. These extra payments are covered.

Please do not have your employees sign over their Workers Compensation checks to you and then you provide them with their normal earnings - even in these circumstances, the portion turned over from Workers Compensation is not IPERS' eligible. If you have done this in the past, please notify our office in order to make the adjustment to remove these non-covered earnings. 

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