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HomeMy WebLinkAbout16 DELEGATING AUTHORITY TO SUBMIT EMPLOYER ORIGINATED APPLICATIONS FOR INDUSTRIAL DISABILITY RETIREMDocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 Agenda Item 16 Reviewed: DS AGENDA REPORT City Manager Finance Director MEETING DATE: MAY 17, 2022 TO: MATTHEW S. WEST, CITY MANAGER FROM: DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES SUBJECT: DELEGATING AUTHORITY TO SUBMIT EMPLOYER ORIGINATED APPLICATIONS FOR INDUSTRIAL DISABILITY RETIREMENT TO CALPERS SUMMARY Adoption of the attached Resolution will allow staff to submit Employer Originated Applications for Industrial Disability Retirement to CalPERS. RECOMMENDATION Adopt Resolution No. 22-24 to delegate authority to staff to file Employer Originated Applications for Industrial Disability Retirement to CalPERS. FISCAL IMPACT None. BACKGROUND AND DISCUSSION An industrial disability retirement (IDR) is retirement resulting from an employee's mental or physical incapacity to perform his/her usual job duties as the result of a job- related injury or illness. For local safety employees (e.g. sworn Police Officers) enrolled in the California Public Employees' Retirement System (CaIPERS), state law requires the employer to determine an employee's eligibility for an IDR. From the City's perspective, there are two key steps required to process an IDR: 1) the employee's disability retirement application must be submitted to CaIPERS (by the employee or by the City on the employee's behalf) and 2) the City must determine the employee is "disabled" within the meaning of the Public Employees Retirement Law (PERL). By default, both of these actions must be taken by the City Council, however pursuant to Government Code sections 21152 and 21173, the City Council may delegate authority to staff to handle either or both of these functions. The purpose of this agenda item is to simply maintain the City's status quo on how IDRs are processed while ensuring we comply with CalPERS guidelines: allow staff to continue to submit disability retirement applications to CalPERS, but continue to have DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 City Council Agenda Report May 17, 2022 Delegating Authority to Submit Employer Originated Applications for IDR Page 2 the City Council maintain authority for determining whether an employee is disabled and therefore eligible for an IDR. An application for IDR may be initiated by the employee or the employer. If the employee has not already filed an application, Government Code section 21153 obligates the employer to file on behalf of the employee if the employer has reason to believe the employee is disabled as defined in the PERL. An employee is considered to be disabled if they are substantially incapacitated from performing the usual and customary duties of their position with the City, the disability is permanent or of an extended and uncertain duration, and the disability has been determined to be work- related. In many cases, the employee initiates the disability retirement application themselves, however there are times where it becomes necessary for the City to submit the application in order to move the process forward in a timely manner. In the past, CalPERS has accepted Employer Originated Applications completed and submitted by staff. However, CaIPERS recently notified the City that in order for staff to continue to submit Employer Originated Applications without the City Council approving the application in a public meeting, Government Code section 21152 requires the City Council to officially delegate that authority to staff via a Resolution. Absent such a Resolution, the City Council as a body will be required to approve an Employer Originated Application during a public meeting each time the City needs to submit an Employer Originated Application on behalf of an employee who is believed to be disabled. FDocuSigned by: '56Pi0k7Y&MUda Director of Human Resources Attachments: 1. City Council Resolution No. 22-24 DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 RESOLUTION NO. 22-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DELEGATING AUTHORITY TO SUBMIT EMPLOYER ORIGINATED DISABILITY RETIREMENT APPLICATIONS TO CALPERS WHEREAS, the City of Tustin (hereinafter referred to as "City") is a contracting agency of the California Public Employees' Retirement System (CaIPERS); and WHEREAS, the California Public Employees' Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is "disabled" for purposes of the California Public Employees' Retirement Law and whether such disability is "industrial" within the meaning of such law; and WHEREAS, the City of Tustin has determined upon legal advice that it may delegate authority under Government Code section 21173 to apply for a disability retirement on behalf of any member believed to be disabled to the incumbent of the position of Director of Human Resources. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin does hereby delegate to the incumbent of the position of Director of Human Resources authority to make application on behalf of the City pursuant to Government Code section 21152(c) for disability retirement of all employees and to initiate requests for reinstatement of such employees who are retired for disability. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 17th day of May 2022. AUSTIN LUMBARD Mayor ATTEST: ERICA N. YASUDA City Clerk Resolution 22-24 Page 1 of 2 DocuSign Envelope ID: F5AAB750-D243-4FB0-A521-EE7F836FBF11 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN 1 I, Erica N. Yasuda, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 22-24 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of May 2022, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA City Clerk Resolution 22-24 Page 2 of 2