Government - Municipal - Digest of Bills

Digest of Bills - 2002

GOVERNMENT - MUNICIPAL

S.B. 02-26 Fire and police pension association - new hire pension plans - death and disability benefits. Creates a permanent occupational disability benefit and a temporary occupational disability benefit for members of the statewide death and disability plan for police officers and firefighters.

States that a member who becomes permanently occupationally disabled shall be retired from active service while such disability continues. Specifies that the annual disability benefit for a permanent occupational disability shall be 50% of the annual base salary paid to the member immediately preceding retirement for disability. States that a member who becomes temporarily occupationally disabled shall be retired from active service for as long as the temporary occupational disability continues for a period of up to 5 years from the date of the original disablement. Specifies that the annual disability benefit for a member who is temporarily disabled shall be 40% of the annual base salary paid to the member immediately preceding retirement for disability.

States that a member who receives a temporary occupational disability benefit shall be subject to reexamination at the discretion of the board of directors of the fire and police pension association. States that the board may require treatment, counseling, or therapy necessary to rehabilitate the member. Specifies that it is the member's responsibility to show compliance with such requirements. Authorizes the board to terminate the temporary occupational disability benefit if the member fails to make rehabilitation efforts or if the member cannot provide evidence of a continuing disability.

Allows a member receiving a temporary occupational disability benefit to apply for an upgrade to a permanent occupational disability or total disability no later than 6 months prior to the end of 5 years from the date of original disablement.

For a member whose temporary occupational disability benefit ceases and who is not restored to active service or for a member who elects to terminate his or her temporary occupational disability benefit, entitles such member to any vested benefit earned prior to becoming disabled or a refund of the member's contributions if no benefit has vested.

Authorizes the board of directors of the fire and police pension association to consider any relevant evidence in the determination of an occupational, total, or on-duty disability.

Requires that all disability benefits be redetermined each year. Specifies that the member shall have received the disability benefit for at least 12 calendar months prior to the effective date of redetermination in order to be eligible for redetermination. Establishes that the amount of a member's permanent or temporary occupational disability benefit shall be increased by a percentage to be determined by the board of directors of the fire and police pension association, but such increase shall not be greater than 3% each year. Requires that the amount of a member's total disability benefit shall be increased by 3% each year.

If a members receives total or permanent occupational disability benefits and is eligible to receive payments from such member's separate retirement account or local pension plan, states that the disability benefit shall be reduced by the actuarial equivalent of the benefits such member is eligible to receive from the separate retirement account or local pension plan.

Allows any member who is awarded a total or permanent occupational disability benefit to receive the applicable normal disability pension or to make an election for a reduced pension to allow for survivor benefits in the event that the member dies while receiving such benefit. Includes adult dependant and incapacitated children in the family payment option for survivor benefits for members receiving total and permanent occupational disability benefits.

Requires that an application for any disability benefit shall be filed by the member no later than 180 days after such member's last day on the payroll. Allows a member in the disability benefit application process to irrevocably elect not to be considered for reinstatement in the event that such member becomes eligible for reinstatement.

Within the application for disability benefits, requires the employer to make a statement indicating the reason for the member's separation from employment and to submit a statement of additional basis for the member's disability under the death and disability program that the employer believes exists.

States that when a member's temporary occupational disability ceases to exist and the member is restored to active service, a transfer will be made from the statewide death and disability plan to the member's normal retirement plan in the amount of 16% of the monthly base salary that the member was paid at the time of disability retirement, multiplied by the number of months the member received the temporary occupational disability benefit.

States that if a member, while receiving a temporary occupational disability benefit, satisfies the age and service requirements for a normal retirement, a transfer will be made from the statewide death and disability plan to the member's normal retirement plan in the amount of 16% of the monthly base salary that the member was paid at the time of disability retirement, multiplied by the number of months the member received the temporary occupational disability benefit. States that such member shall then be granted a normal retirement and the disability benefit shall terminate.

If a member dies while receiving a temporary occupational disability benefit, allows the member's family to receive the same survivor benefits that the family would receive had the member died while in active service.

Increases the survivor benefit for survivors of members of the statewide death and disability pension plan for police officers and firefighters if the member dies while in active service in the line-of-duty and is not eligible for a normal retirement pension.

Increases the benefit for survivors of members of the statewide death and disability pension plan for police officers and firefighters if the member dies while in active service in the line-of-duty and is eligible for a normal retirement pension as follows:

For a spouse either with or without children, in addition to the monthly retirement benefit otherwise payable, the monthly benefit paid shall be the difference between 70% of the monthly base salary paid to such member immediately preceding death and the amount of the retirement benefit otherwise payable;
For one or more dependent children who were living in the member's home at the time of the member's death, the monthly benefit paid shall be the difference between 70% of the monthly base salary paid to such member immediately preceding death and the amount of the retirement benefit otherwise payable; or
For one or more dependent children who were not living in the member's home at the time of the member's death, the monthly benefit paid shall be the sum of 40% of the monthly base salary paid to such member immediately preceding death for the first child plus 15% for each additional child, the total of which shall not be greater than 70% of the monthly base salary, less the amount payable under the normal retirement pension.

Modifies the division of the survivor benefit in the event that a surviving spouse and one or more dependent children residing in a separate household from the surviving spouse must share the benefit.

States that survivors of members of the statewide death and disability pension plan for police officers and firefighters who die while on-duty but whose death falls within an exception of the internal revenue code shall receive the same benefit as such survivor would receive if the member's death was off-duty.

Includes leave for military service within authorized leave as allowed by the board of directors of the fire and police pension association. Directs the board to adopt rules regarding authorized leave for absence for military service.

APPROVED by Governor April 3, 2002
EFFECTIVE October 1, 2002

S.B. 02-32 Downtown development authority - tax increment financing - extension. Extends the period that a portion of local property and sales taxes may be allocated to a special fund to pay indebtedness related to a downtown development authority from 25 years to 30 years.

APPROVED by Governor June 7, 2002
EFFECTIVE August 7, 2002
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 02-1032 Fire and police pension association - statewide defined benefit plan - purchase or roll over prior service credit. Allows members of the statewide defined benefit plan, subject to fire and police pension association board rules, to purchase or roll over service credit:

For any other type of public employment; or
Of up to 5 years for private employment upon completion of at least 5 years of continuous service with an employer covered by the statewide defined benefit plan, submittal of specified documentation, verification that the member will not otherwise receive a benefit for that prior employment, and payment or transfer of the cost of the service credit.

APPROVED by Governor March 21, 2002
EFFECTIVE January 1, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 02-1036 Fire and police pensions - volunteer firefighter pension plans - state contribution - appropriation. Modifies the method of calculating the state contributions for volunteer firefighter pension plans. Increases the minimum state contribution for said plans to $1,000 for any municipality or district that contributes the proceeds of a levy of one-half mill on the current valuation for assessment of the municipality or district.

Appropriates $3,000 to the department of treasury for allocation to the fire and police pension association for funding the increase in the minimum state contribution for volunteer firefighter pension plans, but makes the increase in the minimum state contribution and the corresponding appropriation contingent upon the passage of and savings realized from House Bill 02-1241.

APPROVED by Governor May 24, 2002
EFFECTIVE July 1, 2002
NOTE: House Bill 02-1241 was signed by the Governor on May 24, 2002, and the fiscal estimate shows sufficient general fund savings.