WHEREAS, the Employee Benefit Board administers a system of employee benefits for officers and employees of the Metropolitan Government; and

WHEREAS, the system of employee benefits includes the payment of disability pensions for employees injured in the line of duty; and

WHEREAS, the current provisions for payment of disability pensions for employees injured in the line of duty does not expressly permit the Metropolitan Government to recover the cost of disability pensions from third parties who are responsible for the injury to the employee; and

WHEREAS, the Employee Benefit Board has unanimously approved legislation to permit the recovery of the cost of disability pensions from third parties responsible for in line of duty injuries to metropolitan employees; and

WHEREAS, an actuarial determination has been made that such legislation does not negatively impact the soundness of the system of employee benefits and would lower the cost of such system.

NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. Section 3.28.050 is amended by adding a new subsection “D” which shall read as follows:

When a disability pension is paid to a member for an in-line-of-duty injury, at the expense of the metropolitan government, and was caused under circumstances creating a legal liability against some person other than the metropolitan government to pay damages, the injured employee shall have the right to receive benefits as provided herein, and such injured employee and/or the metropolitan government may pursue his/her remedy by proper action in a court of competent jurisdiction against such person. In the event of recovery against such third person by judgment, settlement or otherwise, the metropolitan government shall have a subrogation right against such recovery for the cost of the disability pension. The metropolitan government shall only collect its subrogation interest when the employee has been made whole by settlement, judgment or otherwise. Such settlements shall be reported to and approved by the board.

Section 2. Section 3.29.050 is amended by adding a new subsection “C” which shall read as follows:

When a disability pension is paid to a member for an in-line-of-duty injury, at the expense of the metropolitan government, and was caused under circumstances creating a legal liability against some person other than the metropolitan government to pay damages, the injured employee shall have the right to receive benefits as provided herein, and such injured employee and/or the metropolitan government may pursue his/her remedy by proper action in a court of competent jurisdiction against such person. In the event of recovery against such third person by judgment, settlement or otherwise, the metropolitan government shall have a subrogation right against such recovery for the cost of the disability pension. The metropolitan government shall only collect its subrogation interest when the employee has been made whole by settlement, judgment or otherwise. Such settlements shall be reported to and approved by the board.

Section 3. This ordinance shall take effect from and its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.


Sponsored by: Ludye Wallace, Craig Jenkins

LEGISLATIVE HISTORY
Introduced:	November 7, 2002
Passed First Reading:	November 7, 2002
Referred to:	Budget & Finance Committee Personnel Committee
Passed Second Reading:	November 19, 2002
Deferred:	December 3, 2002
Passed Third Reading:	December 17, 2002
Approved:	December 19, 2002
By: