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Home My WebLink AboutA001 - Council Action Form dated May 9, 1995 ITEM # DATE May 9. 1995 COUNCIL ACTION FORM SUBJECT: Utility Retirement System - Ordinance Change BACKGROUND: The Utility Retirement Board has proposed a change to the existing ordinance that would allow a member to work on a part-time basis to receive disability benefits on a pro-rated basis. The existing regulations state that benefits cease when "...earnings again become payable" to the employee. The Board has approved the attached language drafted by the City Attorney. The current language has caused employees to remain on disability until such time as they can return to work full time. Allowing a period of partial disability could benefit the City, the employee, and the retirement system. The City could regain the services of the employee on a part-time basis; the employee would then receive part-time earnings, plus a disability benefit equal to 75% of the non-working time; the cost to the system would be reduced by the percent of time the member is able to work. There have been instances in the past when a physician has authorized a member on disability to return to work if the return could be part-time for a temporary period. The member then faces the prospect of a reduced income and normally remains on disability. If this ordinance change becomes a part of the retirement system, the ultimate decision to grant partial disability will be shared by the retirement board and the member's department head. ALTERNATIVES: 1. Adopt on first reading the ordinance enacting subsection 28.431(6) and allow a partial disability benefit under the Utility Retirement System. 2. Deny the request to amend the Municipal Code to add subsection 28.431(6). 3. Request further research/information from the Utility Retirement Board. MANAGER'S RECOMMENDATION: It is the recommendation of the'City Manager that the City Council adopt Alternative #1, Adopt on first reading the ordinance enacting subsection 28.431(6) and allow a partial disability benefit under the Utility Retirement System. COUNCIL ACTION: