Code of Alabama - Title 45: Local Laws - Section 45-37A-51.226 - Extraordinary disability allowance

Section 45-37A-51.226 - Extraordinary disability allowance.

(a) Extraordinary disability allowance for participants joining the system prior to January 1, 1989.

(1) In the event a participant who joins the system prior to January 1, 1989, shall become totally disabled to perform his or her customary duties by reason of personal injury received as a result of an accident arising out of and in the course of his or her employment in the service and occurring at a definite time and place, then in the event such total disability shall continue until the participant ceases to draw salary as an employee of the city, such disabled participant shall be entitled to a monthly allowance from the fund equal to 70 percent of his or her monthly salary at the time of the accident which resulted in such total disability, subject to the offset for any workers' compensation benefit or other such disability benefit payable by the city as set forth hereafter.

(2) Benefits payable hereunder shall commence upon the cessation of the disabled participant’s drawing a salary from the city and shall continue until such time as such participant is no longer disabled by such injury to perform his or her customary duties or substantially comparable duties at the same or greater salary or wage. If, however, such disabled participant, during the continuation of such disability, should be separated from the service of the city and should the disability cease to exist, the board, in its discretion, may continue him or her on the disability rolls until such time as in the judgment of the board he or she is able to find suitable employment at a rate of pay equal or in excess of his or her disability allowance.

(3) Application for an extraordinary disability allowance shall be made within 12 months after the accident resulting in such disability and if granted shall be granted within 12 months after the accident resulting in such disability. Applications for injuries prior to January 1, 1989, received thereafter shall not be considered and no extraordinary disability allowance shall be awarded with respect thereto.

(4) Anything herein to the contrary notwithstanding, an extraordinary disability allowance heretofore or hereafter granted shall be computed and paid throughout the continuance of such disability as provided and at the rate prescribed by the law in effect at the time of the commencement of such disability. If any extraordinary disability beneficiary should become separated from the service and withdraw his or her contributions, his or her right to continuance of disability benefits shall immediately cease.

(b) Extraordinary disability allowance for participants joining the system on or after January 1, 1989.

(1) In the event a participant who joins the system on or after January 1, 1989, shall become totally disabled to perform his or her customary duties by reason of personal injury received as a result of an accident arising out of and in the course of his or her employment in the service and occurring at a definite time and place, then in the event such total disability shall continue until the participant ceases to draw salary as an employee of the city, such disabled participant shall be entitled to a monthly allowance from the fund

equal to 70 percent of his or her monthly salary at the time of the application for extraordinary disability benefits arising from the accident which resulted in such total disability. If such participant shall be eligible for extraordinary disability benefits subsequent to August 1, 2009, the extraordinary disability benefit shall be subject to the offset for any workers' compensation benefit or other such disability benefit payable by the city as set forth hereafter.

(2) Benefits shall not be payable hereunder during any period that a disabled participant is able to perform other duties in his or her job classification or the customary duties of another job with that participant's employer, which other duties or job has been offered to participant and which job pays a salary or wage equal to or greater than the salary or wage such participant was earning at the time of the application for the extraordinary disability benefits arising from the accident causing the disability.

(3) Benefits payable hereunder shall commence upon the cessation of the disabled participant’s drawing a salary from the city and shall continue until such time as such participant is no longer disabled by such injury to perform his or her customary or other duties, substantially comparable duties, or a substitute job as described above. If, however, such disabled participant, during the continuation of such disability, should be separated from the service of the city and should the disability cease to exist, the board, in its discretion, may continue him or her on the disability rolls until such time as in the judgment of the board he or she is able to find suitable employment with an employer at a rate of pay equal or in excess of his or her disability allowance.

(4) Upon employment by any employer, for which the disabled participant receives wages or other compensation or both, from the new employer, for duties which are alike and substantially similar to the work or job functions performed for the city by the disabled participant at the time the application for extraordinary disability was filed with the pension system under this subpart, the amount of the extraordinary disability benefit payable to the disabled participant shall be reduced by the amount, dollar for dollar, in cash or other types of compensation for which the disabled employee is required to pay taxes to the federal government, so that the extraordinary disability benefit is offset up to the total amount of the extraordinary disability benefit payable under this section.

(5) Further, should the disabled participant who is eligible to receive an extraordinary disability benefit under this section also receive workers' compensation or other such benefit from the city, which is based upon the same injury giving rise to an extraordinary disability benefit under this section, the fund shall be entitled to reduce the extraordinary disability benefit payable to such disabled participant, dollar for dollar for each amount due to the disabled participant. For the purposes of calculating the amount of monthly reduction in extraordinary disability benefits, the weekly wage under the Workers' Compensation Act or other such benefit shall be converted into a yearly wage by multiplying the weekly wage by 52 weeks in a year and then dividing the yearly wage by 12 for the monthly amount. The monthly amount of workers' compensation or other such benefit paid by the city shall be subtracted from the extraordinary disability benefit due to the disabled participant to arrive at the new amount of extraordinary disability benefit due to such disabled participant from the fund while the disabled participant remains disabled under this section. If the disabled participant receives full extraordinary disability benefits, prior to receiving workers' compensation, or other such benefit from the city, the fund shall be due a refund from the disabled participant through a reduction in the extraordinary disability benefit based upon the amount of monthly benefit, as calculated above, the disabled participant received from the city for workers’ compensation, or other such benefits, for the same period full payment was made by the fund under this section.

(6)a. Application for an extraordinary disability allowance shall be made within 12 months after the accident resulting in such disability and if granted shall be granted within 12 months after the accident resulting in such disability. For injuries occurring after January 1, 1989, the board of managers, in its sole discretion, may choose to waive this one-year limitation and grant an application for extraordinary disability allowance if granted within 36 months after the incident resulting in such disability. Applications received thereafter shall not be considered and no extraordinary disability allowance shall be awarded with respect thereto.

b. Effective January 1, 2005, the board has the discretion to waive the 36-month period and to grant extraordinary disability benefits if the application for the extraordinary disability benefits arising from the accident is filed within 60 months of the accident resulting in such disability; provided that such accident resulting in disability occurred and application for an extraordinary benefit has been filed for an accident which occurred prior to August 1, 2009.

(7) Anything herein to the contrary notwithstanding, an extraordinary disability allowance heretofore or hereafter granted shall be computed and paid throughout the continuance of such disability as provided and at the rate prescribed by the law in effect at the time of the commencement of such disability. If any extraordinary disability beneficiary should become separated from the service and withdraw his or her contributions, his or her right to continuance of disability benefits shall immediately cease.

(c) Extraordinary disability allowance for participants joining the system on or after July 1, 2005. In addition to the provision set forth in subsection (b), the board, in its discretion, in determining an application for extraordinary disability, may consider whether or not the applicant for extraordinary disability has other physical ailments, illnesses, diseases, or other maladies which contribute to the participant’s inability to perform job functions. In circumstances in which, in addition to the injuries in an accident sustained by the participant while performing job functions, there is present in the participant other significant illnesses, diseases, or other maladies which are contributing causes for the participant’s inability to perform job functions, the board, in its discretion, may offset, or reduce the total amount of the extraordinary benefit below 70 percent of the salary at the time of the application based upon the amount the other physical ailments contribute to the participant's inability to perform job functions for the city. The board may base its decision upon the opinion of a medical expert in the field of job-related injuries. In no event shall the extraordinary disability in such cases be less than that due for ordinary disability.

(d) Certain extraordinary disability benefits for firefighters. Nothing contained in this section shall be interpreted to be in contradiction with or shall alter or replace certain benefits allowed to firefighters pursuant to Section11-43-144, who are not eligible for workers’ compensation or any other such disability benefit from the city.

(e) Subsections (b) and (c) apply to all employees who are participants in the fund on August 1, 2009, who are not currently receiving extraordinary disability.

(f) Notwithstanding any other provision herein, the time for the filing of the application for extraordinary disability benefits on account from an accident occurring subsequent to August 1, 2009, shall be within 24 months from the date of the accident causing injury which is the basis of the application for extraordinary disability benefits or the board shall not be able to consider the application.

(Act 2006-339, p. 851, Art. VI, §8; Act 2009-780, p. 2447, §2.)

Last modified: May 3, 2021