SF356

Senate Bill SF No. 356 aims to modify the rules regarding the earnings limit for retired public employees (like police officers, firefighters, and paramedics) who are on disability benefits. Currently, if these retirees go back to work and their total income (including the disability pay and any workers' compensation) exceeds a certain limit, their disability benefit is reduced. This bill proposes changes to how that limit is calculated and how the reduction in benefits is applied:

1. The reemployment earnings limit will now be the greater of either the monthly salary earned at the time the disability began, or 125-150% of the monthly salary paid by the government for similar positions.

2. For members who start receiving disability payments before July 1, 2023, if they earn more than this limit due to resuming work, their disability benefit will be reduced. The reduction will be by one dollar for every three dollars they exceed the limit.

3. For members who start receiving disability benefits or have to reapply for them after July 1, 2023, the rules are slightly different. Their disability benefits will be reduced annually until they reach the normal retirement age. The reductions depend on their years of service and salary, with specific formulas given.

This bill is designed to ensure that those on disability are not dissuaded from returning to work due to fear of losing their benefits entirely, while still maintaining a cap on combined earnings and benefits to prevent excessive payments.