City Council Study Session Agenda and Packet 2017 05 09

Home Browse Search

Statewide Death & Disability Plan for members of affiliated Social Security Employers Disability & Survivor Benefit Offsets The offsets listed here apply to those receiving Permanent Occupational and Total Disability benefits. Social Security Offset If a member or survivor of a member is awarded a disability or survivor benefit, the benefit is payable immediately. However, a reduction to the disability benefit is made when the member re- ceives a Social Security benefit. Offsets to benefits payable from the Statewide Death & Disability Plan are applied as follows: Disability • If the member does qualify for a disability benefit from Social Security FPPA will offset pro rata the actual Social Security disability benefit when payable. FPPA will also recalculate the offset when the Social Security disability benefit ceases and reverts to a Social Security retirement benefit. • If the member does not qualify for the disability benefit from Social Security FPPA will offset pro rata the estimated Social Security retirement pension when the member turns age 62. Active Member Death - Survivor Benefit • No offset for a death benefit from Social Security will be made to the SWD&D-SS active member death benefit. Separate Retirement Account (SRA) The SRA funds are available to the member or survivor at the time disability or survivor benefits are awarded. The benefit awarded is offset (reduced) based on the amount in the member's SRA. DROP Account DROP funds are available to the member or survivor at the time disability or survivor benefits are awarded. The benefit award is offset (reduced) based on the amount in the member's DROP account. Other Income and Investments Spousal income, IRAs, insurance benefits, legal awards, deferred compensation accounts, and other investment incomes are not subject to any offset. Other Procedures Verification of Eligibility FPPA is required by law to monitor certain benefit eligibility requirements. Annually, disability/ survivor benefit recipients may receive a Verification of Eligibility Affidavit form to complete and return to FPPA. Certain supporting documents, such as tax returns may also be required. It is important that the Verification of Eligibility Affidavit and any required documentation be returned to FPPA in order to avoid suspension of benefits. Military Leave A member on military leave continues to be covered by the Statewide Death and Disability Plan upon payment of the required Statewide Death and Disability contribution by the employer. Any benefits payable under the Statewide Death and Disability Plan shall be offset by any death or disability benefits received from the military.