Title
Termination of Disability Retirement Benefits for Disability Retiree Thomas Travis Rahn (B)
This item requests consideration and approval of Termination of Disability Retirement benefit of former GRU-Wastewater Collection Service Operator Thomas Travis Rahn
Explanation
A meeting of the Disability Review Committee was conducted on Friday, December 14, 2018 to review the termination of disability retirement benefits of former GRU-Wastewater Collection Service Operator Thomas Travis Rahn. Upon review of Mr. Rahn’s recertification documents and employment verification from his current employer, he is performing work that substantially equivalent based on skills and duties for which he is receiving a disability. According to the plan that Mr. Rahn received his disability, it states in Section. 2-526(18) Termination or reduction of disability benefits (c). In the event that a disabled employee is able to engage in full or part-time employment for other employers, and/or substantial self-employment, resulting in current employment earnings, disability payments made to such employee shall be reduced as follows. The employee's monthly reported (city employment and approved outside employment) employment earnings at the date the disability occurred will be adjusted for seasonal or other reasonable variations, and then adjusted by cost of living increases to date of reduction. This amount (adjusted earnings) shall be compared with the employee's current employment earnings. If the employee's current employment earnings exceed 25 percent of his/her adjusted earnings, then for each three percent in excess of that level, the disability benefits shall be reduced by one percent. For example, if his/her current earnings become 55 percent of his/her adjusted earnings, then the disability payments shall be reduced by ten percent. Such recovery of earning capacity shall not affect the determination of disability unless the city specifically determines to discontinue disability payments upon the basis that the employee is no longer disabled as provided for herein. Any reduction authorized herein shall be imposed in addition, and subsequent to, any offsets authorized by section 2-526(d)(15). Because this determination has to be made by the Board of Trustees city commission, the Disability Review Committee that you review and consider termination of the Disability Benefits for Mr. Rahn if deemed appropriate.
Fiscal Note
Mr. Rahn’s not in-line-of duty pension benefit is $1129.92 before Social Security Offsets and is paid out of the City of Gainesville Employee’s Pension Plan. The benefit is gross of any offsets associated with collateral income as required by the Plan. If Mr. Rahn should receive collateral employer provided benefit income, those offsets will be taken from the monthly benefit. Mr. Rahn was no longer considered disabled under Social Security as of January 18, 2013 has not applied for Social Security benefits since that time. Mr. Rahn is gainfully employed since November 14, 2016 full-time by the City of Newberry and is currently making $32,460.48 a year as a Water/Wastewater Technician I. Mr. Rahn will be eligible for a future vested benefit from the plan after reaching age 65 receiving $1129.92 per month.
Recommendation
The Board of Trustees of the City of Gainesville Employee’s Pension Plan consider and approve the termination of disability retirement benefits of Thomas Travis Rahn, with benefits ending six-months after approval by the Board of Trustees effective July 1, 2019.