SECTION 27-40.4. Income earned during disability retirement; reduction in benefits


If any person is entitled to and receives pensions and benefits under this article and subsequently becomes employed, whether full-time or part-time, the pensions and benefits received shall be reduced by the amount of income received which exceeds the difference between the benefits received under this article and the amount of pay to which he would have been entitled had his employment progressed in the same rank and grade with credit for the level of seniority he would have attained had he not been disabled. Such a reduction in benefits shall continue until the time he becomes eligible for normal retirement, had he remained uninjured and continued his employment. For the purposes of this section, "income" means gross income received less deductions for social security taxes only.

Any person receiving pensions or benefits under the provisions of this article shall upon request, on or before May 1 of each year, provide a true and correct copy of all W-2 forms showing income received, or a statement under oath as to whether he has received compensation for work performed in the previous calendar year, to the governing body of the jurisdiction which is the source of the pension, or to that body's designee. Refusal to provide such documents shall be grounds for termination of benefits under this section, until such documents are produced. Production of the documents shall be required only until such time as the person shall be eligible for normal retirement, had he remained uninjured and continued his employment.

Nothing contained herein shall limit or restrict the right of any person to receive workers' compensation benefits under Title 65.2, as amended.

1983, c. 351.