Agenda Item 22
Robert H. Drummer, Senior Legislative Attorney
Expedited Bill 35-10, Personnel - Disability Retirement - Imputed
Management and Fiscal Policy Committee recommends
Bill 35-10 .
with an amendment.
Expedited Bill 35-10, Personnel
Disability Retirement - Imputed Compensation,
sponsored by Councilmembers EIrich, Andrews, and Trachtenberg, was introduced on May 27,
2010. A Management and Fiscal Policy Committee worksession was held on June 14 and a
public hearing was held on June 15.
Bill 35-10 would amend the definition of final earnings to extend imputed compensation
beyond FYlO for certain employees who applied for disability retirement benefits under the
employees' retirement system (ERS) by May 18, 2010. The Bill would also modify the
qualifications, selection, and operating procedures for the members of the Disability Review
Although the Executive and each of the 3 County employee unions representing police,
fire, and general government workers agreed to "postpone"l the previously negotiated general
wage adjustments for FYIO last year, Expedited Bill 18-09 required that the calculation of
regular earnings used to determine a retirement benefit include the FYlO general wage
adjustment as if the employee had received
on July 1,2009.
This imputed compensation was
scheduled to carryover into the calculation of regular earnings used to calculate a defined benefit
pension for the rest of an employee's County career. However, Expedited Bill 16-10, enacted on
May 18, amended the retirement laws to limit the effect of the imputed compensation to the
calculation of regular earnings for FYIO only.
Although the collective bargaining agreements use the term "postpone," the Council did not fund these wage
adjustments in the Approved
II Operating Budget.
Employees of the Montgomery County Public Schools also agreed to "postpone" a negotiated general wage
but did not receive this imputed compensation.