City Council Study Session Agenda and Packet 2017 05 09

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Occupational Disability Total Disability Statewide Death & Disability Plan for members of affiliated Social Security Employers Disability Benefit Comparison continued What benefit payment options are available? Benefit Adjustments (Commonly known as COLA) Temporary Occupational Disability The member does not elect a benefit payment option. Normal unre- duced benefits are paid to the member. If he/she should die while receiving Temporary Disability, the Survivor Benefits explained on page 6 would apply. A benefit adjustment of up to 3% may be granted by the FPPA Board annually. The benefit adjustment is effective October 1St Benefit adjustments may begin after receiving retirement benefits for at least 12 calendar months prior to October 1. Permanent Occupational Disability Upon disability retirement, the disabled member elects one of the payment options listed below. This payment option determines what is payable to a beneficiary. A benefit adjustment of up to 3% may be granted by the FPPA Board annually. The benefit adjustment is effective October 1st Benefit adjustments may begin after receiving retirement benefits for at least 12 calendar months prior to October 1. Upon disability retirement, the disabled member elects one of the payment options listed below. This payment option determines what is payable to a beneficiary. A 3% benefit adjustment will be granted by the FPPA Board annually. The benefit adjustment is effective October 1st Benefit adjustments may begin after receiving retirement benefits for at least 12 calendar months prior to October 1. Benefit Payment Options The benefit payment options listed here apply to Permanent Occupa- tional Disability and Total Disability only. The benefit amounts shown on page 2 are used to calculate these payment options. The Statewide Death & Disability Plan provides four choices for receipt of the Permanent Occupational and Total Disability benefits. Normal Option — The disability retiree receives an unreduced benefit payable for as long as the disability exists and as long as the member remains eligible. Upon the retiree's death, the benefit is discontinued. The following options provide a reduced benefit, payable to a designated beneficiary upon the death of the member. The amount of the reduction is based on the age of a member and the age of their designated beneficiary. Option 1 - The disabled retiree's benefit amount is reduced, payable for as long as the dis- ability exists and as long as the member remains eligible. Upon the death of the retiree, the designated beneficiary receives 100% of the retiree's reduced benefit for life. Option 2 - The disabled retiree's benefit amount is reduced, payable for as long as the dis- ability exists and as long as the member remains eligible. Upon the death of the retiree, the designated beneficiary receives 50% of the retiree's reduced benefit for life. Option 3 - The disabled retiree's benefit amount is reduced, payable for as long as the dis- ability exists and as long as the member remains eligible. Upon the death of the retiree, the reduced benefit amount is paid to the surviving spouse and dependent children, if any, until the death of the surviving spouse, the death of any incapacitated child, or until the youngest child reaches age 23, whichever is later.