FROM: Barbara Hannah, Chief Counsel
SUBJECT: Review of the Supplemental Disability Retirement Allowance Process
RECOMMENDATION:
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Review of the Supplemental Disability Retirement Allowance Process.
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BACKGROUND:
At the request of Trustee Fiorino, this item is presented to inform the Committee and Board about the process for administering the supplemental disability retirement allowance after the Board grants the benefit, and to ensure that members receiving the benefit are accurately reporting their status.
Background:
On February 24, 1975, the San Bernardino County Board of Supervisors adopted Article 15.6 of the County Employees' Retirement Law (CERL), establishing survivor and supplemental disability retirement benefits to replace Social Security coverage. As a result, Government Code section 31740 (Supplemental Retirement Allowance) became effective January 3, 1976.
The Board of Supervisors intended that the $300 per month supplemental retirement allowance be awarded only to members with a permanent disability who are unable to engage in any gainful employment. Consistent with this intent, the SBCERA Board incorporated into its By-Laws a definition of "gainful employment" as the performance of any service for compensation. This standard differs from the Social Security standard, which considers "substantial" or "customary" employment. Under the SBCERA standard, a member who performs any type of work for compensation, regardless of whether it is similar to their prior position or provides equal or greater pay, does not qualify for the supplemental retirement allowance.
It is important to note that the award of this benefit is provided only if the Board determines the member is permanently incapacitated from performing their usual job duties and is incapable of performing any type of employment after retirement for compensation. To assist the Board in the determination of granting or denying the supplemental retirement allowan...
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