Section
4.1600 Purpose and Authority for Pension Savings Plan.
4.1601 Definitions.
4.1602 Commencement of Participation.
4.1603 Pension Savings Plan Contributions.
4.1604 Pension Savings Investment Fund and Trust.
4.1605 Investment Accounts.
4.1606 Benefit Distributions.
4.1607 Disability or Death.
4.1608 Division of Participant’s Community Property Interest in the Plan.
4.1609 Changes in Distribution.
4.1610 Administration of the Plan.
4.1611 Transfers to or from Comparable Plans.
4.1612 Transfers to Other City Plans.
4.1613 Amendment or Termination of the Pension Savings Plan.
4.1614 Rights of the Participants.
4.1615 Miscellaneous.
This Pension Savings Plan is designed to provide retirement benefits for certain part-time, seasonal and temporary employees of the City of Los Angeles who are not members of the Los Angeles City Employees’ Retirement System, the Fire and Police Pension Plans or the Water and Power Employees’ Retirement Plan. The plan is provided to employees in lieu of participation in the Social Security System. The Plan is intended to comply with Section 457 of the Internal Revenue Code of 1986, the Omnibus Budget Reconciliation Act (OBRA) of 1990, and applicable Treasury regulations. The Plan shall be considered an employee benefit plan or savings plan for purposes of California Civil Code Section 5106(b), as amended from time to time, or its successor sections.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: First Sentence, Ord. No. 173,272, Eff. 6-25-00, Oper. 7-1-00.
(a) “Administrator” means a duly authorized designee for the purpose of acting as the City’s agent with respect to the Plan. The General Manager of the Personnel Department shall be the Plan Administrator, however, the City may elect to contract with one or more firms to provide services related to the Plan.
(b) “Beneficiary” means any person, trust, firm, or corporation or any combination thereof, designated by a participant to receive benefits under the Plan.
(c) “City Contribution” means an amount equal to 3.0% of a Participant’s Compensation that is credited by the City as deferred compensation to such participant’s Book Account (also referred to as Investment Account) in the Plan.
(d) “Code” means the Internal Revenue Code of 1986, as amended.
(e) “Compensation” means all wages or salaries to be paid to an employee for services rendered, without deduction for any portion thereof deferred under the provisions of this Plan, but shall not exceed the contribution and benefit base determined under Section 230 of the Social Security Act for such Plan Year.
(f) “Eligible employee” means any part-time, seasonal or temporary officer or employee of the City who is not a member of any other City Retirement plan.
(g) “Employer” or “City” means all offices, bureaus and departments of the City of Los Angeles and included departments which have control of their own definite revenues.
(h) “Normal Retirement” means a Participant’s separation from service at an age no earlier than the earliest age of voluntary retirement without actuarial or similar reduction for an employee similarly situated who is a member of the Los Angeles City Employees’ Retirement System, and no later than age 70 1/2.
(i) “Participant” means any eligible employee or officer of the City who is a member of the Pension Savings Plan.
(j) “Participant Contribution” means an amount equal to 4.5% of a participant’s compensation that is deferred and credited to such participant’s Investment Account in the Plan as a term and condition of the Participant’s employment with the City.
(k) “Plan” means the City of Los Angeles Pension Savings Plan, the terms and provisions of which are herein set forth, as the same may be amended from time to time.
(l) “Plan Year” means each 12-month period beginning on January 1 and ending on December 31.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: Subsec. (a), Ord. No. 170,512, Eff. 6-10-95; Subsec. (h), Ord. No. 173,272, Eff. 6-25-00, Oper. 7-1-00.
An eligible employee shall automatically become a participant in the Plan on the later of (i) the effective date of the Plan or (ii) the date of commencement of employment status which causes the employee to become eligible for participation in the Plan. An agreement for participation shall be executed for each participant as a condition of employment. An eligible employee shall cease to be a participant upon termination from City service or on the commencement of participation in one of the City’s other retirement or pension plans. An eligible employee shall cease to be a participant upon the distribution of the participant’s interest in the investment account.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
(a) Each eligible employee who becomes a participant shall defer 4.5% of their compensation for each plan year, and the City shall credit such participant contribution to the participant’s investment account. The City shall further credit to the investment account of each participant an amount equal to 3.0% of such participant’s compensation for the plan year. The 4.5% of compensation deferred by the participant and the 3% of compensation credited by the City shall total 7.5% of the participant’s compensation for the plan year.
(b) For any calendar year, total participant contributions plus City contributions credited to the participant’s investment account shall not exceed the lesser of (1) $7,500, as adjusted for the cost-of-living in accordance with Internal Revenue Code section 457(e)(15) for taxable years beginning after December 31, 1996, or (2) 33-1/3 percent of the participant’s compensation.
(c) The Controller shall cause such deferrals and City contributions to be made for each payroll period during which the employee is a participant in the Plan.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: Subsec. (b) Ord. No. 172,105, Eff. 7-14-98.
The City shall establish a separate City fund (the “Pension Savings Investment Fund”) as a method of setting aside a portion of its assets to meet the City’s obligations under the Pensions Savings Plan. All participant and City contributions shall be invested in this fund and shall be held by the City in trust for the exclusive benefit of participants and their beneficiaries in accordance with the terms and conditions of the Plan, and for defraying reasonable expenses of administration of the Plan. Neither the existence of the Plan, nor of the trust nor of the Investment Fund shall entitle any participant, beneficiary or other person to a claim or lien against the assets of the Investment Fund, the Plan or the trust. The participants and their beneficiaries shall have only the right to receive the benefits payable under the Plan as provided in this chapter.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: In Entirety, Ord. No. 172,105, Eff. 7-14-98.
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