ORD 41063 - Amend sections 22-78 and 22-79 of municipal code °MAHA,
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Omaha,Nebraska 68183-0804
(402)444-5115
FAX: (402)444-5125
Paul D. Kratz
City of Omaha City Attorney
Stothert,Mayor
Honorable President
and Members of the City Council,
The purpose of the attached ordinance is to amend Sections 22-78 and 22-79 of those ordinances
which apply to the City of Omaha Police and Fire Retirement System. When the City and the
public safety unions agreed to the Deferred Retirement Option Program (DROP), the language
provided that individuals who were injured during the DROP period could qualify for either a
service or a non-service connected disability pension. The City Law Department subsequently
amended Chapter 22 to make it consistent with the collective bargaining agreements.
In reviewing the provisions and after discussion with the law firm that ensures that we are
complying with the Internal Revenue Code, it was determined that it was appropriate to slightly
change the language in the City Code. The revised language will not result in any change in
pensions, but rather will make it clear that the intent of the parties was that the disability pension
for any individual who is injured while in the DROP will be calculated in the manner that the
service retirement pension was for the participant when they entered into DROP.
The City Law Department recommends this revision in that it ensures that the code provisions are
consistent with the collective bargaining agreement and also ensures that the code is in compliance
with the Internal Revenue Code.
Respectfully submitted: Referred to City Council for Consideration
1 e I vi 1-7 1--- ...yki-___ 1 iz y 1
Bernard J. in den Bosch ate Mayor's Office
/D?te
Deputy City Attorney
p:\law-city council documents\2017\10006dae.doc
ORDINANCE NO. y/ecf;....
1 AN ORDINANCE to amend sections 22-78 and 22-79 of Chapter 22 of the Omaha Municipal
2 Code to modify the provisions relating to the service and non-service connected disability
3 pension that will be received by Deferred Retirement Option Program(DROP)
4 participants who are injured during the DROP period to make it consistent with the intent
5 of the collective bargaining agreements and consistent with the Internal Revenue Code;
6 and to provide an effective date.
7 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
8 Section 1. That Section 22-78 of the Omaha Municipal Code is hereby amended as
9 follows:
10 "Sec. 22-78. - Accidental disability pension; injuries in the line of duty.
11
12 (a) Any member of the system, except those participating in DROP pursuant to section 22-77,
13 who, while in the line of duty, has sustained or shall sustain injuries or sickness, arising out of
14 the immediate or direct performance or discharge of his/her duty, which immediately or after a
15 lapse of time permanently unfit such annuitant for active duty in his/her department, shall receive
16 a monthly disability pension as long as such annuitant remains unfit for active duty in such
17 member's department, provided, that an application for such disability pension is made during
18 the member's employment and upon a determination by the board of trustees that such applicant
19 has met the requirements hereof, as set forth hereinbelow. In addition thereto, such annuitant
20 shall be paid medically necessary covered services which may be incurred as a result of such
21 sickness or injury. The payment for medically necessary covered services pursuant to this section
22 shall be determined by reference to the health insurance in effect for current city employees at
23 the time the services are rendered to the annuitant. The pension and other benefits in excess of
24 benefits under the worker's compensation act, shall be in lieu thereof.
25
26 Any member of the system participating in DROP pursuant to section 22-77 who, while in the
27 line of duty during the DROP period, has sustained or shall sustain injuries or sickness, arising
28 out of the immediate or direct performance or discharge of his/her duty, which immediately or
29 after a lapse of time permanently unfit such annuitant for active duty in his/her department, shall
30 receive a monthly disability pension as long as such annuitant remains unfit for active duty in
31 such member's department, provided, that an application for such disability pension is made
32 during the member's employment and upon a determination by the board of trustees that such
ORDINANCE NO. yZe"J6,..
Page 2
1 applicant has met the requirements hereof Such DROP participant who qualifies for a disability
2 pension shall be entitled to that disability pension tonEhh—he/sn h a b en entitllea upon
3 entering the DROP option to a disability pension calculated in accordance with this Section as of
4 the date the DROP participant entered into the DROP. Such annuitant shall not be paid medically
5 necessary covered services which may be incurred as a result of such sickness or injury. The
6 pension and other benefits in excess of benefits under the worker's compensation act, shall be in
7 lieu thereof
8
9 (1) Police members and police management.
10
11 Prior to May 26, 1989: Equal to 50 percent of the member's average final monthly
12 pensionable earnings.
13
14 From and including May 26, 1989 to and including January 29, 1998:
Years offercent of Average Final Monthly Pensionable,
Service Earnings
3
Up to 25 e_ _ 50
26 '51
27 52
28 [53
29 '54
30 '55
33 158
34 59
3 5 [60
ORDINANCE NO. V/c l 3
Page 3
1 From and including January 30, 1998 to and including May 12, 2004 for police members
2 and to and including March 6, 2003 for police management:
3
Years ofIPercent of Average Final Monthly Pensionable
Service Earnings
Less than 25 50
25 55
25.5 56
26 57
26.6 58
27 59
27.5 60
28 61
28.5 62
29 63
29.5 64
30 65
4
5 From and including May 13, 2004 to and including September 18, 2010 for police members and
6 from and including March 6, 2003 for police management:
7
8 Such pension shall be equal to 50 percent of such member's average final pensionable earnings if
9 the member has less than 20 years of service. If the member has 20 or more years of service the
10 monthly disability pension shall be at the same percentage the employee would receive if he took
11 a service retirement pursuant to section 22-76 on the date of disability according to years of
12 service.
ORDINANCE NO. 9/ezr
Page 4
1
2 From and including September 19, 2010 for police members:
3
4 Such pension shall be equal to 50 percent of such member's average final pensionable earnings if
5 the member has less than 20 years of service. If the member has 20 or more years of service the
6 monthly disability pension shall be at the same percentage the employee would receive if he took
7 a service retirement pursuant to section 22-76 on the date of disability according to years of
8 service, provided that the final monthly pension calculation of any police member retiring
9 pursuant to this subsection who is not at least 55 years of age and who has less than 30 years of
10 service, shall not be reduced by seven percent per year for each year the police member is less
11 than 55 years of age.
12
13 (2) Fire members and fire management.
14
15 Prior to May 26, 1989: Equal to 50 percent of such member's average final monthly
16 pensionable earnings.
17
18 From and including May 26, 1989 to and including August 17, 1998:
Years of,Percent of Average Final Monthly Pensionable
Service Earnings
Up to 25 50
26 `51
27 52
28 53
29 '54
30 55
31 56
32 .__ 57 ._
33 58
ORDINANCE NO. 97(14,,3
Page 5
34 159
35 '60
1
2 From and including August 18, 1998 to and including December 22, 2001 for fire
3 members and August 31, 2002 for fire management:
4
Years of Percent of Average Final Monthly Pensionable
Service Earnings
Less than 25 '50
25 55
25.5 '56
26 57
26.6 -58
27 59
27.5 60
28 61
28.5 ;62
29 63
29.5 64
30 65
5
6 From and including December 23, 2001 to and including December 21, 2002 for fire
7 members and from and including September 1, 2002 to and including December 21, 2002 for fire
8 management:
ORDINANCE NO. /0 3
Page 6
1
Years of Percent of Average Final Monthly Pensionable
Service Earnings
Less than 25 50
25 61
26 163
27.. 65
28 67
39
F9
30 and over 69
2
3 From and including December 22, 2002 to and including December 20, 2003:
4
Years of Percent of Average Final Monthly Pensionable
Service Earnings
Less than 25 50
25 63
26 65
27 67
28 69
39 69
30 and over 69
ORDINANCE NO.
Page 7
1 From and after December 21, 2003 to and including June 30, 2005:
2
3 Such pension shall be equal to 50 percent of such member's average final monthly pensionable
4 earnings if the member has 20-24 years of service. If the member has 25 or more years of service
5 the monthly disability pension shall be at 69 percent.
6
7 From and after July 1, 2005 to and including June 30, 2006:
8
9 Such pension shall be equal to 51 percent of such member's average final monthly pensionable
10 earnings if the member has less than 25 years of service. If the member has 25 or more years of
11 service the monthly disability pension shall be at 71 percent.
12
13 From and after July 1, 2006 to and including June 30, 2007:
14
15 Such pension shall be equal to 53 percent of such member's average final monthly pensionable
16 earnings if the member has less than 25 years of service. If the member has 25 or more years of
17 service the monthly disability pension shall be at 73 percent.
18
19 From and after July 1, 2007:
20
21 Such pension shall be equal to 55 percent of such member's average final monthly pensionable
22 earnings if the member has less than 25 years of service. If the member has 25 or more years of
23 service the monthly disability pension shall be at 75 percent.
24
25 (b) The disability annuitant may be required by the board of trustees of the city police and
26 firemen's retirement system to undergo a medical examination to determine if such annuitant
27 is still qualified to receive a disability annuity.
28
29 (c) Nothing contained in this section shall be construed as limiting, altering, repealing or
30 affecting the authority of the city council to grant full salary payment; provided, however, any
31 member receiving full salary payment shall not be entitled to the benefits of this section during
32 the period full salary payments are authorized and paid.
33
34 (d) Any provision in this section, or in any other provision in chapter 22, providing for the
35 payment of medical, surgical and hospital expenses shall exclude investigative medical
36 treatment as that term is defined and interpreted under the city's health insurance program at
37 the time the services are rendered.
38
39 (e) The city and/or police and fire pension system shall have the right to be subrogated for
40 its payment of any amount hereunder, where such sum has been recovered by a member of the
41 system; the city and/or the police and fire pension system shall have the right of bringing an
ORDINANCE NO. q/ 3
Page 8
1 original action in any court to collect such amount or amounts so recovered by any member of
2 the system. The system expressly rejects the "common fund doctrine" with respect to payment
3 of attorney fees. The system does not recognize the "make-whole doctrine."
4
5 Section 2. That Section 22-79 of the Omaha Municipal Code is hereby created as
6 follows:
7 "Sec. 22-79. Ordinary disability pension; injuries not in the line of duty.
8
9 (a) Any member of the system, except police members, police management members, and
10 fire management members participating in DROP pursuant to section 22-77, who, while not in
11 the line of duty, has sustained or shall sustain injuries or sickness, not arising out of the
12 immediate or direct performance or discharge of duty, which immediately or after a lapse of time
13 permanently unfit for such annuitant for active duty in such annuitant's department, shall receive
14 a monthly ordinary disability pension as long as such annuitant remains unfit for active duty in
15 such annuitant's department, provided, that an application for such disability pension is made
16 during the member's employment, and upon a determination by the board of trustees that such
17 applicant has met the requirements hereof, in an amount as shown in a(1)to a(3) below.
18
19 Any member of the system participating in DROP pursuant to section 22-77, who, while not in
20 the line of duty during the DROP period, has sustained or shall sustain injuries or sickness, not
21 arising out of the immediate or direct performance or discharge of duty, which immediately or
22 after a lapse of time permanently unfit for such annuitant for active duty in such annuitant's
23 department, shall receive a monthly ordinary disability pension as long as such annuitant remains
24 unfit for active duty in such annuitant's department, provided, that an application for such
25 disability pension is made during the member's employment, and upon a determination by the
26 board of trustees that such applicant has met the requirements hereof. Such DROP participant
27 who qualifies for a non-service connected disability pension shall be entitled to that disability
28 pension to which he/she had been entitled upon-entering the DROP option to a disability pension
29 calculated in accordance with this Section as of the date the DROP participant entered into the
30 DROP.
31
32 (1) Police members and police management prior to December 24, 2000 and fire
33 members and fire management prior to August 18, 1998:
34 (1) Those members having less than ten years of service shall receive a
35 pension equal to ten percent of such member's average final monthly pensionable
36 earnings.
37 (2) Those members having at least ten but less than 15 years of service shall
38 receive a pension equal to 20 percent of such member's average final monthly
39 pensionable earnings.
ORDINANCE NO.
Page 9
1 (3) Those members having at least 15 but less than 20 years of service shall
2 receive a pension equal to 30 percent of such member's average final monthly
3 pensionable earnings.
4 (4) Those members having at least 20 but less than 25 years of service shall
5 receive a pension equal to 45 percent of such member's average final monthly
6 pensionable earnings.
7 (5) Those members having at least 25 years of service shall receive a pension
8 equal to 55 percent of such member's average final monthly pensionable earnings.
9
10 In addition to the foregoing a one percent increase for each full year over 25 years up to a
11 maximum of ten percent with 30 years or more will be earned.
12
13 (2) Police members and police management.
14
15 From and including December 24, 2000 to and including May 12, 2004:
16 (1) Those members having less than ten years of service shall receive a
17 pension equal to ten percent of such member's average final monthly pensionable
18 earnings.
19 (2) Those members having at least ten but less than 15 years of service shall
20 receive a pension equal to 20 percent of such member's average final monthly
21 pensionable earnings.
22 (3) Those members having at least 15 but less than 20 years of service shall
23 receive a pension equal to 30 percent of such member's average final monthly
24 pensionable earnings.
25 (4) Those members having 20 years of service but less than 25 shall receive a
26 pension equal to 45 percent of such member's average final monthly pensionable
27 earnings.
28 (5) Those members having 25 years of service shall receive a pension equal to
29 55 percent of such member's average final monthly pensionable earnings.
30
31 In addition to the foregoing a one percent increase for each additional six months over 25
32 years up to a maximum of 65 percent with 30 years of service or more will be earned.
33
34 From and after May 13, 2004 for police management and from and after May 13, 2004 to
35 and including September 18, 2010 for police members:
36 (1) Those members having less than ten years of service shall receive a
37 pension equal to ten percent of such member's average final monthly pensionable
38 earnings.
39 (2) Those members having at least ten but less than 15 years of service shall
40 receive a pension equal to 20 percent of such member's average final monthly
41 pensionable earnings.
ORDINANCE NO. z//Z1/4,3
Page 10
1 (3) Those members having at least 15 but less than 20 years of service shall
2 receive a pension equal to 30 percent of such member's average final monthly
3 pensionable earnings.
4 (4) Those members having 20 years of service shall receive a pension equal to
5 45 percent of such member's average final monthly pensionable earnings.
6 (5) Those members having more than 20 years of service shall receive a
7 pension equal to the percentage of such member's average final monthly pensionable
8 earnings the member would receive if he took a service retirement pursuant to section 22-
9 76 on the date of disability.
10
11 From and after September 19, 2010 for police members and for police management
12 effective 30 days after the legal execution of Ordinance No. 39422:
13 (1) Those members having less than ten years of service shall receive a
14 pension equal to ten percent of such member's average final monthly pensionable earnings.
15 (2) Those members having at least ten but less than 15 years of service shall
16 receive a pension equal to 20 percent of such member's average final monthly pensionable
17 earnings.
18 (3) Those members having at least 15 but less than 20 years of service shall
19 receive a pension equal to 30 percent of such member's average final monthly pensionable
20 earnings.
21 (4) Those members having 20 years of service shall receive a pension equal to
22 45 percent of such member's average final monthly pensionable earnings.
23 (5) Those members having more than 20 years of service shall receive a
24 pension equal to the percentage of such member's average final monthly pensionable
25 earnings the member would receive if he took a service retirement pursuant to section 22-
26 76 on the date of disability, provided that the final monthly pension calculation of any
27 police member retiring pursuant to this subsection who is not at least 55 years of age and
28 who has less than 30 years of service, shall not be reduced by seven percent per year for
29 each year the police member is less than 55 years of age.
30
31 (3) Fire members and fire management.
32
33 From and after August 18, 1998 to and including December 22, 2001:
Years of Percent of Average Final Monthly Pensionable
Service Earnings
0-9 10
10 14 20
15-19 f30
ORDINANCE NO. 9/�‘,
Page 11
20-24 '45
25 55
1
2 Additionally, a one percent increase for each six months of service over 25 years up to a
3 maximum of total pension of 65 percent with 30 years of service.
4
5 From and after December 23, 2001 to and including December 21, 2002:
Years of Percent of Average Final Monthly Pensionable
Service Earnings
0-9 10
10-14 20
15-19 30
20-24 45
25 61
26 63
27 65
28 67
29 69
30 and over 69
6
7 From and after December 22, 2002 to and including December 20, 2003:
8
Years of Percent of Average Final Monthly Pensionable.
Service Earnings
ORDINANCE NO. q%G
Page 12
0-9 10
10-14 20
15 19 30
20-24 47
25 63
26 65
27 67
29 69
30 and over 69
1
2 From and after December 21, 2003 to and including June 30, 2005:
3
Years of Percent of Average Final Monthly Pensionable
Service Earnings
0-9 10
10-14 20
15-19 30
20-24 49
25 69
26 69
ORDINANCE NO. /k1 ,3
Page 13
27 69
28 69
29 69
30 and over 69
1
2 From and after July 1, 2005 to and including June 30, 2006:
3
Years of Percent of Average Final Monthly Pensionable
Service Earnings
0-9 10
10
14 20
15-19 30
20-24 51
25 71
26 71
27 71
28 71
29 71
30 and over 71
4
5 From and after July 1, 2006 to and including June 30, 2007:
6
Years of Percent of Average Final Monthly Pensionable
ORDINANCE NO. ,//16)(.4.;
Page 14
Service Earnings
0-9 10
10-14 20
15-19 30
20-24 53
25 73
26 73
27 73
28 73
29 73
30 and over 73
1
2 From and after July 1, 2007, except this table is no longer applicable to fire management
3 30 days after the legally effective date of the passage of the ordinance approving a collective
4 bargaining agreement between the City of Omaha and the Professional Fire Service Manager
5 Association for 2008 to 2014:
6
Years ofPercent of Average Final Monthly Pensionable
Service Earnings
0-9 10
10-14 20
15-19 30
20-24 55
ORDINANCE NO. i%
Page 15
25 75
26 75
27 75
28 75
29 75
30 and over 75
1
2 Effective 30 days after the legal execution of Ordinance No. 39422 approving a collective
3 bargaining agreement between the City of Omaha and the Professional Fire Service Manager
4 Association for 2008 to 2014 fire management qualifying under this Code section shall receive
5 the following:
6 (1) Those members having less than ten years of service shall receive a
7 pension equal to ten percent of such member's average final monthly pensionable earnings.
8 (2) Those members having at least ten but less than 15 years of service shall
9 receive a pension equal to 20 percent of such member's average final monthly pensionable
10 earnings.
11 (3) Those members having at least 15 but less than 20 years of service shall
12 receive a pension equal to 30 percent of such member's average final monthly pensionable
13 earnings.
14 (4) Those members having 20 or more years of service shall receive a pension
15 equal to the percentage of such member's average final monthly pensionable earnings the
16 member would receive if he took a service retirement pursuant to section 22-76 on the date
17 of disability, provided that the final monthly pension calculation of any fire member retiring
18 pursuant to this subsection who is not at least 55 years of age and who has less than 30 years
19 of service, shall not be reduced by seven percent per year for each year the fire member is
20 less than 55 years of age.
21
22 (b) Any member of the system seeking benefits under this section shall not be entitled to any
23 benefit provided herein if such annuitant's disability from injuries or illness arises from or is a
24 result of any act committed by such member, which act is a violation of any state or federal
25 criminal statute or any city criminal ordinance.
26
27 (c) The city and/or police and fire pension system shall have the right to be subrogated for its
28 payment of any amount hereunder, where such sum has been recovered by a member of the
29 system; the city and/or the police and fire pension system shall have the right of bringing an
ORDINANCE NO. 9/0o3
Page 16
1 original action in any court to collect such amount or amounts so recovered by any member of
2 the system."
3
4 Section 3. That Sections 22-78 and 22-79 of the Omaha Municipal Code as heretofore
5 existing are hereby repealed.
6 Section 4. That this Ordinance shall be in force and take effect fifteen (15) days from and
7 after its date of passage.
INTRODUCED BY COUNCILMEMBER
Lt./ APPROVED BY:
MAYOR OF THE CITY OF OMAHA A /7
PASSED FEB 2 8 2017 7-0
ATTEST:
CI CLERK OF HE CITY OF OMA A AT
APPROVED AS TO FORM:
• r 1 \2'-1/t
DEPUTY CITY ATTORNEY DATE
p:Alaw-city council documents\2017\10007dae.doc
Zreaj
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ORDINANCE NO. 6�__
AN ORDINANCE to amend sections 22-78
and 22-79 of Chapter 22 of the
Omaha Municipal Code to modify
the provisions relating to the service
and non-service connected disability
pension that will be received by
Deferred Retirement Option Program
(DROP) participants who are injured
during the DROP period to make it
consistent with the intent of the
collective bargaining agreements and
consistent with the Internal Revenue
Code; and to provide an effective
date.
p:\law-city council documents\2017\10008dae.doc7 PRESENTED TO COUNCIL
1st ;ad" g Rom— 7r_?(1 ` /
Hearing FLDCCpp
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4- :*6-4,, 2.z, ,ezo//
Final Reading FEB L 8 2Q'�j
PUBLICATIONS Pa 6,
PUBLICATION OF HEARING
BUSTER BROWN
Date R—1 0 -I 7
City Clerk
PUBLICATION OF ORDINANCE
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Date ` I i