Motion by Supervisor Zev Yaroslavsky

May 9, 2000

MOTION BY SUPERVISOR ZEV YAROSLAVSKY

The Chief Administrative Officer recently issued a report on service-connected disability retirement benefits in response to a Board request. According to this report, service-connected disability retirements are more desirable than regular safety retirements for three reasons: they provide a minimum benefit of 50% of final compensation, no matter how many years the employee has worked for the County and contributed to the system; they provide a tax-exempt benefit on the first 50% of final compensation; and, they provide a 100%, tax-exempt survivor benefit, as opposed to the 60%, taxable survivor benefit which non-service-connected disability retirees receive.

According to the report, during the past three years approximately 53% of all safety member retirements were service-connected disability retirements. This compares to a 20% service-connected disability retirement rate for safety employees under the City of Los Angeles' retirement plan. Obviously a Deputy Sheriff or Firefighter who is disabled on the job should be entitled to an enhanced retirement benefit. However, the above figures strongly suggest that employees are taking

advantage of loopholes in our system and that some employees do not deserve the lucrative service-connected disability retirements they have received.

The CAO has proposed several changes to our system to resolve this problem. Many require changes to State law and are subject to the meet-and-confer process. The Board should instruct the CAO to immediately pursue the recommended changes, and to begin negotiations with employee representatives where necessary.

I THEREFORE MOVE that the Board adopt the recommendations in the CAO's May 5, 2000 "Report on Service-Connected Disability Retirement Benefits", and instruct the CAO to immediately seek their implementation, including pursuing changes in State law and beginning negotiations with employee representatives where necessary.