(a) Notwithstanding any provision of the general statutes or of any charter or special act, a municipality may, by two-thirds vote of its legislative body or, in a municipality where the legislative body is a town meeting, by two-thirds vote of the board of selectmen, provide for compensation, in accordance with subsection (b) of this section, by such municipality of a retired public safety employee (1) with a permanent and severe disability caused by a serious bodily injury which (A) arose out of and in the course of his or her employment as a public safety employee, and (B) was suffered in the line of duty and within the scope of his or her employment as a public safety employee, (2) who retired from service as a public safety employee as a result of such disability, and (3) who is under the age of sixty-five. As used in this section, “public safety employee” means a retired uniformed member of such municipality’s paid fire department or a retired regular member of such municipality’s paid police department.

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(b) The compensation paid to any public safety employee described in subsection (a) of this section shall be in an amount equal to the difference between (1) the total payment of benefits received by such employee under the provisions of chapter 568 and any other benefits, and (2) the regular rate of pay of such employee at the time of his or her retirement. Upon approval by the legislative body or board of selectmen, as applicable, in accordance with subsection (a) of this section, such compensation shall be paid annually to such employee and shall continue until such employee attains the age of sixty-five.

(c) A municipality providing for compensation in accordance with this section shall establish procedures for the evaluation of any retired public safety employee considered for such compensation to determine such person’s eligibility.