Whenever any member of the police or fire department, as defined in Sections 8.586-1 and 8.588-1, respectively, is incapacitated for the performance of his duties by reason of any bodily injury received in, or illness caused by, the performance of his duty, as determined by the retirement board, he shall become entitled with respect to any one injury or illness, regardless of his period of service with the City and County, to disability benefits equal to and in lieu of his salary, while so disabled, for a period or periods not exceeding 12 months in the aggregate, or until such earlier date as he is retired, whether for service or disability.
Said disability benefit shall be reduced in the manner fixed by the Board of Supervisors by the amount of any benefits other than medical benefits payable to such person under the Labor Code concurrently with said disability benefit, and because of the injury or illness resulting in said disability. Such disability benefits as are paid in the absence of payments of any benefits other than medical benefits under the workers' compensation laws included in said Labor Code, shall be considered as in lieu of such benefits payable to such person under the said code concurrently with said disability benefits, and shall be in satisfaction and discharge of the obligations of the City and County to pay such benefits under the Labor Code.
The provisions of this section shall be administered exclusively by the retirement board, and the City and County shall pay to the Retirement System during each fiscal year an amount equal to the total disability benefits paid by said system during that year.
A member of the police or fire department shall receive credit as service, under the Retirement System, for time during which he is incapacitated for performance of duty and receives said disability benefit; provided, however, that contributions for the Retirement System shall be deducted from payments of such disability benefits paid to him. The City and County shall contribute, in addition to its other contributions provided herein, to the Retirement System on the basis of said benefits in the same manner as it would contribute on salary paid to said member.