We are informed by the Office of Payroll Administration ("OPA") that the City has reached a settlement with the Internal Revenue Service ("IRS") involving FICA (i.e., Social Security & Medicare) tax refunds to both the City and eligible uniformed members of the City's Police, Fire, Correction, and Sanitation Departments. According to the OPA, the years covered by the settlement are 1989-2005. Eligible members of the Police Department who were on authorized Line of Duty Injury leave at some point during the years 1989 through 2005 will likely be eligible for a refund of the FICA taxes paid on Line of Duty Injury payments received for a period of six (6) months or less.

We are further informed by OPA that Line of Duty payments received for a period greater than six (6) months have previously been deemed to be exempt under a separate statutory provision and thus are not part of this refund.

In order to collect a refund in connection with this settlement, eligible members must submit a signed consent form to the City allowing the City to collect the refund on the employees' behalf. Once the IRS refunds the monies to the City, the City will then remit the money to the employee. In the absence of a signed consent form from an employee, that employee will not be able to participate in this settlement. Moreover, that employee may be forever barred from collecting a refund of these amounts since his/her time for filing an individual refund will likely have expired.

We are informed that the City is in the process of gathering the information it needs to reach out to every affected employee. The City plans to to send a letter by year's end to each affected employee explaining the settlement process. Enclosed with the City's letter will be a consent form, which we are informed must be filled out and returned to the City within sixty (60) days of the City's letter. The deadline date will be included in the letter.

This settlement may entitle some of our members to receive substantial sums of money in back FICA taxes. We therefore urge ALL members who believe that they may be covered by the settlement, to log onto the following website to learn more about the settlement and information regarding updating their mailing addresses: http://www.nyc.gov/html/opa/html/lodi_refund/lodi_refund.shtml

Fraternally,

Patrick J. Lynch
President

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