Wednesday, February 6, 2008

The Disability Board


I attended this year’s first meeting of the disability board.

Long ago, police and firefighters would enroll in the LEOFF 1 retirement system, a system which required cities to fund their medical expenses for life.

The LEOFF 1 retirement system has since been replaced. City firefighters and police officers now participate in state retirement pools that are much better managed than LEOFF 1. However, the city is still obligated to the 30 plus LEOFF 1 retirees.

The disability board’s job is to review claims from LEOFF 1 retirees and make sure all “medically necessary” claims are paid. This includes the cost of insurance, expenses that are sometimes not covered by insurance, and the cost of nursing care, which can amount to thousands of dollars per month per individual.

The disability board has its own fund, but the fund has not been adequately financed by past councils. It’s essentially pay as you go out of the general fund. As LEOFF 1 retirees age, their medical expenses could potentially impose millions of dollars on the general fund. Expenses the city has no choice but to pay, by law.

The LEOFF 1 retirees, nor the current council and mayor, are at fault for this situation. Again, the fund to pay for all of this was not adequately managed by previous administrations. We essentially inherited the problem and we are obligated to solve it.

It’s essential for all council members to keep LEOFF 1 retirees in the back of their minds as they think about future budgets.

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