Management and Fiscal Policy Committee
Robert H. Drummer, Senior Legislative
Expedited Bill 35-10, Personnel- Disability Retirement - Imputed
Expedited Bill 35-10, Personnel - Disability Retirement - Imputed Compensation,
sponsored by Councilmembers EIrich, Andrews, and Trachtenberg, was introduced on May 27,
2010. A public hearing is scheduled for June 15 at 1:30 p.m.
Bill 35-10 would amend the definition of final earnings to extend imputed compensation
beyond FY10 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 FYI0 last year, Expedited Bill 18-09 required that the calculation of
regular earnings used to determine a retirement benefit include the FY10 general wage
adjustment as if the employee had received it 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 FY10 only.
During the debate on Bill 16-10, the Council discussed an amendment that would have
created an exception for Group G members (Fire and Rescue) who have a pending application
for disability retirement that is approved after July 1. A disability retirement benefit is calculated
based upon an employee's "final earnings" or the employee's regular earnings as of the last date
Although the collective bargaining agreements use the term "postpone," the Council did not fund these wage
adjustments in the Approved FYI1 Operating Budget.
Employees of the Montgomery County Public Schools also agreed to "postpone" a negotiated general wage
adjustment for FYlO, but did not receive this imputed compensation.