Boards & Commissions Supporting Documents - 02/22/2011 - Board of TrusteesITEM 10.17.
OF OAIC
I
R.r
0OUN 1,
AGENDA ITEM
Regular Board of Trustees Meeting
of
February 22, 2011
SUBJECT: Employees on Disability
FROM: Sharon Dangles, Finance Director
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: N/A
Discussion Purposes:
There have been some questions asked of the staff on employee disabilities that I would like to
address in this memorandum. Most of these questions are addressed in the State Statutes in
Articles 3 and 4 of the pension code, which is attached for reference. In addition, Attorney Rick
Reimer will be in attendance at the Village Board meeting to answer any additional questions
that the Village Board may have. Reimer is the attorney for the police and fire pension boards.
We currently do not have any employee disabilities other than the police or fire department.
When a police or fire employee goes on permanent disability does he eventually go on
retirement or stay on disability? If the time accrued from collecting disability plus the active
years of service is equal to 20 years and reached the age of 50, they can elect to retire with
written application to the Pension Board, however, this is not mandatory.
What is the compensation for police and fire disability in terms of salary and benefits?
Per Illinois State Statute:
• Duty Disability is the greater of (1) 65% of the month salary attached to the rank held at
the date they were removed from the municipality's payroll or (2) the retirement pension
that they would be eligible to receive. The first 65% of this benefit is tax -free. In
Im
that they would be eligible to receive. The first 65% of this benefit is tax -free. In
addition they are also entitled to a child's disability benefit of $20 per month for each
child under the age of 18 years old, which shall not exceed 75% of the salary at the time
of the disability. A line of duty disability results from sickness, accident or injury
incurred in or resulting from the performance of an act of duty.
Occupational Disease receives the same benefits as a Duty Disability pension; however
pension law requires that with an occupational disease disability you must have 5 or more
years of creditable service.
Non -Duty Disability is 50% of the month salary attached to the rank held at the date they
were removed from the municipality's payroll. Also, they must have 7 or more years of
creditable service. This pension benefit is taxable.
A disability pension will not be paid until the disability has been established by the Pension
Board, which includes examinations at the pension fund's expense, by 3 physicians selected by
the Board, as well as other evidence as the Pension Board deems necessary. Medical
examinations are done at least once a year prior to the age of 50 years old to verify the
continuance of the disability. No examinations are required after age 50.
Attorney Reimer can go into more detail on the differences between the types of disabilities.
What steps does the Village take to make sure that employees are not collecting disability
while getting other jobs? Reimer will speak to this issue in greater detail. Employees can
obtain other work to supplement their disability income. However, a firefighter who was
evaluated and determined disabled by a doctor cannot be a firefighter in another town.
Can employees on disability be put to work on other Village jobs? Reimer will speak to this
issue in greater detail. If there was an open position in the Village, the person would have to
meet the necessary qualifications in order to fulfill the duties, and most likely the person who
still have the option to apply to work for the Village or anywhere else.
Attached are four documents that provide additional information
Additional Information:
Attachment A — State Statutes of Article 4 of the fire pension code on disabilities.
Attachment B — List of former police and fire employees currently collecting disability pensions.
Attachment C— Survey of neighboring towns highlighting the number of employees currently
working in each department as well as the number of former employees collecting a pension
disability from those towns. The towns that have not responded to our survey, we hope to get
those responses back by Tuesday.
In conclusion, this information is for discussion purposes only and the attorney who represents
both pension funds, Rick Reimer will be in attendance to answer any additional questions on
disabilities as it relates to the pension code.
ATTACHMENT A
(40 ILCS 5/4 -110) (from Ch. 108 1/2, par. 4 -110)
Sec. 4 -110. Disability pension - Line of duty. If a
firefighter, as the result of sickness, accident or injury
incurred in or resulting from the performance of an act of
duty or from the cumulative effects of acts of duty, is found,
pursuant to Section 4 -112, to be physically or mentally
permanently disabled for service in the fire department, so as
to render necessary his or her being placed on disability
pension, the firefighter shall be entitled to a disability
pension equal to the greater of (1) 65% of the monthly salary
attached to the rank held by him or her in the fire department
at the date he or she is removed from the municipality's fire
department payroll or (2) the retirement pension that the
firefighter would be eligible to receive if he or she retired
(but not including any automatic annual increase in that
retirement pension). A firefighter shall be considered "on
duty" while on any assignment approved by the chief of the
fire department, even though away from the municipality he or
she serves as a firefighter, if the assignment is related to
the fire protection service of the municipality.
Such firefighter shall also be entitled to a child's
disability benefit of $20 a month on account of each unmarried
child less than 18 years of age and dependent upon the
firefighter for support, either the issue of the firefighter
or legally adopted by him or her. The total amount of child's
disability benefit payable to the firefighter, when added to
his or her disability pension, shall not exceed 75% of the
amount of salary which the firefighter was receiving at the
date of retirement.
Benefits payable on account of a child under this Section
shall not be reduced or terminated by reason of the child's
attainment of age 18 if he or she is then dependent by reason
of a physical or mental disability but shall continue to be
paid as long as such dependency continues. Individuals over
the age of 18 and adjudged to be disabled persons pursuant to
Article XIa of the Probate Act of 1975, except for persons
receiving benefits under Article III of the Illinois Public
Aid Code, shall be eligible to receive benefits under this
Act.
If a firefighter dies while still disabled and receiving a
disability pension under this Section, the disability pension
shall continue to be paid to the firefighter's survivors in
the sequence provided in Section 4 -114. A pension previously
granted under Section 4 -114 to a survivor of a firefighter who
died while receiving a disability pension under this Section
shall be deemed to be a continuation of the pension provided
under this Section and shall be deemed to be in the nature of
worker's compensation payments. The changes to this Section
made by this amendatory Act of 1995 are intended to be
retroactive and are not limited to persons in service on or
after its effective date.
(Source: P.A. 93 -1090, eff. 3- 11 -05.)
(40 ILCS 5/4- 110.1) (from Ch. 108 1/2, par. 4- 110.1)
Sec. 4- 110.1. Occupational disease disability pension. The
General Assembly finds that service in the fire department
requires firefighters in times of stress and danger to perform
unusual tasks; that firefighters are subject to exposure to
extreme heat or extreme cold in certain seasons while
performing their duties; that they are required to work in the
midst of and are subject to heavy smoke fumes, and
carcinogenic, poisonous, toxic or chemical gases from fires;
and that these conditions exist and arise out of or in the
course of employment.
An active firefighter with 5 or more years of creditable
service who is found, pursuant to Section 4 -112, unable to
perform his or her duties in the fire department by reason of
heart disease, stroke, tuberculosis, or any disease of the
lungs or respiratory tract, resulting from service as a
firefighter, is entitled to an occupational disease disability
pension during any period of such disability for which he or
she has no right to receive salary.
Any active firefighter who has completed 5 or more years
of service and is unable to perform his or her duties in the
fire department by reason of a disabling cancer, which
develops or manifests itself during a period while the
firefighter is in the service of the fire department, shall be
entitled to receive an occupational disease disability benefit
during any period of such disability for which he or she does
not have a right to receive salary. In order to receive this
occupational disease disability benefit, (i) the type of
cancer involved must be a type which may be caused by exposure
to heat, radiation or a known carcinogen as defined by the
International Agency for Research on Cancer and (ii) the.
cancer must (and is rebuttably presumed to) arise as a result
of service as a firefighter.
A firefighter who enters the service after August 27, 1971
shall be examined by one or more practicing physicians
appointed by the board. If the examination discloses
impairment of the heart, lungs or respiratory tract, or the
existence of any cancer, the firefighter shall not be entitled
to the occupational disease disability pension unless and
until a subsequent examination reveals no such impairment or
cancer.
The occupational disease disability pension shall be equal
to the greater of (1) 65% of the salary attached to the rank
held by the firefighter in the fire service at the time of his
or her removal from the municipality's fire department payroll
or (2) the retirement pension that the firefighter would be
eligible to receive if he or she retired (but not including
any automatic annual increase in that retirement pension).
The firefighter is also entitled to a child's disability
benefit of $20 a month for each natural or legally adopted
unmarried child less than age 18 dependent upon the
firefighter for support. The total child's disability benefit
when added to the occupational disease disability pension
shall not exceed 750 of the firefighter's salary at the time
of the grant of occupational disease disability pension.
The occupational disease disability pension is payable to
the firefighter during the period of the disability. If the
disability ceases before the death of the firefighter, the
disability pension payable under this Section shall also cease
and the firefighter thereafter shall receive such pension
benefits as are provided in accordance with other provisions
of this Article.
If a firefighter dies while still disabled and receiving a
disability pension under this Section, the disability pension
shall continue to be paid to the firefighter's survivors in
the sequence provided in Section 4 -114. A pension previously
granted under Section 4 -114 to a survivor of a firefighter who
died while receiving a disability pension under this Section
shall be deemed to be a continuation of the pension provided
under this Section and shall be deemed to be in the nature of
worker's occupational disease compensation payments. The
changes to this Section made by this amendatory Act of 1995
are intended to be retroactive and are not limited to persons
in service on or after its effective date.
The child's disability benefit shall terminate if the
disability ceases while the firefighter is alive or when the
child or children attain age 18 or marry, whichever event
occurs first, except that benefits payable on account of a
child under this Section shall not be reduced or terminated by
reason of the child's attainment of age 18 if he or she is
then dependent by reason of a physical or mental disability
but shall continue to be paid as long as such dependency
continues. Individuals over the age of 18 and adjudged as a
disabled person pursuant to Article XIa of the Probate Act of
1975, except for persons receiving benefits under Article III
of the Illinois Public Aid Code, shall be eligible to receive
benefits under this Act.
(Source: P.A. 93 -1090, off. 3- 11 -05.)
(40 ILCS 5/4 -111) (from Ch. 108 1/2, par. 4 -111)
Sec. 4 -111. Disability pension - Not in duty. A
firefighter having at least 7 years of creditable service who
becomes disabled as a result of any cause other than an act of
duty, and who is found, pursuant to Section 4 -112, to be
physically or mentally permanently disabled so as to render
necessary his or her being placed on disability pension, shall
be granted a disability pension of 50% of the monthly salary
attached to the rank held by the firefighter in the fire
service at the date he or she is removed from the
municipality's fire department payroll. If a firefighter dies
while still disabled and receiving a disability pension under
this Section, the disability pension shall continue to be paid
to the firefighter's survivors in`the sequence provided in
Section 4 -114 if that disability pension is greater than the
survivors pension provided under subsection (a) of Section
4 -114.
(Source: P.A. 93 -1090, off. 3- 11 -05.)
(40 ILCS 5/4 -112) (from Ch. 108 1/2, par. 4 -112)
Sec. 4 -112. Determination of disability; restoration to
active service; disability cannot constitute cause for
discharge. A disability pension shall not be paid until
disability has been established by the board by examinations
of the firefighter at pension fund expense by 3 physicians
selected by the board and such other evidence as the board
deems necessary. The 3 physicians selected by the board need
not agree as to the existence of any disability or the nature
and extent of a disability. Medical examination of a
firefighter receiving a disability pension shall be made at
least once each year prior to attainment of age 50 in order to
verify continuance of disability. No examination shall be
required after age 50. No physical or mental disability that
constitutes, in whole or in part, the basis of an application
for benefits under this Article may be used, in whole or in
part, by any municipality or fire protection district
employing firefighters, emergency medical technicians, or
paramedics as cause for discharge.
Upon satisfactory proof to the board that a firefighter on
the disability pension has recovered from disability, the
board shall terminate the disability pension. The firefighter
shall report to the marshal or chief of the fire department,
who shall thereupon order immediate reinstatement into active
service, and the municipality shall immediately return the
firefighter to its payroll, in the same rank or grade held at
the date he or she was placed on disability pension. If the
firefighter must file a civil action against the municipality
to enforce his or her mandated return to payroll under this
paragraph, then the firefighter is entitled to recovery of
reasonable court costs and attorney's fees.
The firefighter shall be entitled to 10 days notice before
any hearing or meeting of the board at which the question of
his or her disability is to be considered, and shall have the
right to be present at any such hearing or meeting, and to be
represented by counsel; however, the board shall not have any
obligation to provide such fireman with counsel.
(Source: P.A. 95 -681, eff. 10- 11 -07.)
(40 ILCS 5/4 -113) (from Ch. 108 112, par. 4 -113)
Sec. 4 -113. Disability pension option. (a) A firefighter
who has not completed 20 years of creditable service and is
receiving a disability pension under this Article whose
disability continues for a period which when added to his or
her period of active service equals 20 years may, if age 50 or
over, elect to retire from the fire service by submitting
written application to the board. A firefighter exercising
such option shall be entitled to continue to receive a
retirement pension equal in amount to the disability pension
he or she was entitled to as a disabled firefighter on the
date he or she was removed from the municipality's payroll for
disability. A firefighter electing to exercise such option
shall be entitled to the automatic increase in pension
provided under subsection (a) of Section 4- 109.1.
(b) A firefighter who is receiving a disability pension
under this Article who has sufficient creditable service to
qualify for a retirement pension and is age 50 or more may
elect to permanently retire from the fire service at any time
by submitting written application to the board. The salary to
be used in the determination of such firefighter's pension
shall be based on the salary attached to the rank held by the
firefighter in the fire service at the date of the election to
retire. All other conditions in the computation of the pension
shall be based upon the provisions of Section 4 -109 which were
applicable to the firefighter while he or she was in active
service as an employee. A firefighter electing to exercise
such option shall be entitled to the automatic increase in
pension provided under subsection (a) of Section 4- 109.1.
(Source: P.A. 83- 1440.)
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