(a) Appointed Members. Each person who shall be appointed as a Department Member on or after January 1, 2002 shall become a Tier 5 Plan Member upon graduation by such person from training at the Police or Fire Academies or equivalent facility imparting basic training as a firefighter or police officer and maintained as such by the City of Los Angeles. A Chief of Police or a Fire Chief who is appointed to that position without having graduated from such facility may become a Member upon appointment. Upon becoming a Tier 5 Plan Member, a person may elect to purchase Years of Service credit for the period of such training in accordance with rules adopted by the Board.
(b) Former Tier 2, 3 & 4 Members. A person formerly a Plan Member under the provisions of Tiers 2, 3, or 4 of the Fire and Police Pension System whose member- ship had previously terminated by reason of resignation or discharge shall upon again being appointed as a Department Member become a Tier 5 Plan Member as of the effective date of such appointment.
(c) Certain Former Tier 2, 3 and 4 Members. Any Plan Member as of January 1, 2002 in Tiers 2, 3, or 4 hired prior to January 1, 2002, who makes an irrevocable election in writing during the election period provided in subsection (c)(1) shall become a Tier 5 Plan Member.
(1) Election Period. The election period shall commence January 2, 2002 and shall remain in effect until the close of business on December 31, 2002.
(2) Members on Military Leave. Persons who are not active members during the election period provided in subsection (c)(1) due to service in the armed forces shall have 90 days following their return from active duty or the expiration date of the election period, whichever is later, to make an election to become a Tier 5 Plan Member.
(3) Release of Liability. The Board shall have the authority to establish rules requiring a full and complete release from liability upon the Plan Member’s election to transfer from Tiers 2, 3 or 4 to Tier 5.
(4) Purchase of Certain Years of Service Credit. If a Plan Member of Tier 2 elected to become a Tier 5 Plan Member pursuant to the provisions of this subsection and was formerly a member of the Los Angeles City Employees’ Retirement System (LACERS) during a period of time that the Plan Member was a paramedic or civilian ambulance employee, such Tier 5 Plan Member shall be entitled to purchase Years of Service credit for all or part of that period of time by depositing with the Fire and Police Pension Plan -Tier 5, in accordance with Board rules, the amount of contributions refunded to the Plan Member for such periods of service plus the amount of interest that would have been credited had those contributions been in the member’s account with the Plan. If such Tier 5 Plan Member does not want to purchase all eligible service, the purchase price shall be prorated based on the percentage of eligible service to be purchased. The purchase shall be completed prior to retiring or entering DROP. The provisions of this paragraph shall become operative on January 20, 2005, and shall not apply to Tier 5 Plan Members who retired or entered DROP prior to that date.
(5) Late Elections. The Board shall not accept late election forms after the close of the Election Period described in Subsection (c)(1). The provisions of this paragraph shall not apply to any member who transferred into Tier 5 prior to January 1, 2017.
(d) Paramedics. In addition to those Department Members described in subsection (a) of this section, persons employed as paramedic trainees shall become Tier 5 Plan Members only upon their certification, as provided by law, as mobile intensive care paramedics or equivalent. Upon becoming a Tier 5 Plan Member, such person may elect to purchase Years of Service credit for the period of such training in accordance with rules to be adopted by the Board. If such a Plan Member had periods of membership in the Los Angeles City Employees’ Retirement System while the Plan Member was a paramedic or civilian ambulance employee, such Plan Member shall be entitled to elect to acquire Years of Service credit for such periods of membership in the Los Angeles City Employees’ Retirement System. Upon such election the Plan Member’s contributions plus interest credited thereon, and the Plan Member’s City service credit shall be transferred to the Fire and Police Pension Plan – Tier 5 in accordance with rules to be adopted by the Board.
(e) Purchase of Credit by Surviving Spouse. A surviving spouse or domestic partner of a Tier 5 Plan Member may complete the purchase of Years of Service credit elected by the Plan Member.
(f) Prohibition of Double Benefits. No Tier 5 Plan Member may receive double benefits by receiving credit for Years of Service for the same periods of City service from the Los Angles City Employees’ Retirement System (LACERS) and under the provisions of this Tier 5. Further, no Tier 5 Plan Member may transfer credit received from the LACERS while employed in a capacity other than paramedic or civilian ambulance employee, except as otherwise provided in Subsection (i)(2)(D) herein below.
(g) Transfer of Released Liability. Upon the election by a Tier 5 Plan Member to acquire Years of Service credit, the released liability of the Los Angeles City Employees’ Retirement System shall be transferred to the Fire and Police Pension Plan – Tier 5. For the purposes of this subsection, the phrase Released Liability means the City’s share of the actuarially determined present value of benefits under the Los Angeles City Employees’ Retirement System as of the date of transfer.
(h) Department members as of January 1, 2002, who become Plan Members after January 1, 2002. Each person who was appointed as a Department Member prior to January 1, 2002, but who graduates from training at the Police or Fire Academy or equivalent facility imparting basic training as a police officer or firefighter and maintained as such by the City of Los Angeles after January 1, 2002 may, upon their graduation from the respective academy, make an irrevocable election in writing during the election period provided in subsection (c)(1) to become a Tier 5 Plan Member. Those Department Members appointed prior to January 1, 2002, but who graduate from the respective academy after the end of the election period shall have 90 days following their graduation or the expiration date of the election period, whichever is later, to make an irrevocable election to become a Tier 5 Plan Member.
(i) Harbor Department Members. In addition to those Department Members described in Subsection (a) of this section, the following persons qualify for membership in Tier 5 as provided below:
(1) Persons Appointed On or After January 8, 2006. Each person appointed on or after January 8, 2006, to any of the positions in the Harbor Department set forth in Section 4.2002(r) of this Chapter shall become a Tier 5 Plan Member upon graduation by the person from academy training required by the Harbor Department. Upon becoming a Tier 5 Plan Member, a person may elect to purchase Years of Service credit for the academy training period in accordance with rules to be adopted by the Board, provided that only academy training time during which the person was a member of the Pension Savings Plan for Part-time, Seasonal and Temporary Employees is eligible for purchase. A Port Warden appointed on or after January 8, 2006, if not already a Tier 5 Plan member, may irrevocably elect in writing at the time of appointment not to become a member of Tier 5.
(2) Persons Appointed Prior to January 8, 2006. A person appointed prior to January 8, 2006 and who is employed on that date in any of the positions in the Harbor Department set forth in Section 4.2002(r) of this Chapter, including any person in academy training, may make an irrevocable election in writing to become a Tier 5 Plan Member on the terms and conditions set forth below, provided that no person shall become a Tier 5 Plan Member until the person has completed the academy training required by the Harbor Department. A person who does not file an election within the period specified below shall continue as a LACERS member and shall remain a LACERS member if subsequently appointed without a break in Harbor Department service to a Harbor Department sworn position that would otherwise require the person to become a Tier 5 Plan Member.
(A) Election Period. The election period shall commence January 8, 2006, and shall remain in effect until 4:45 p.m. on January 5, 2007. A written election to transfer to Tier 5 must be received in the office of the Department of Fire and Police Pensions prior to the expiration of the election period, except that a person who has not graduated from the academy by October 5, 2006, shall have 90 days following graduation to make an irrevocable election to become a Tier 5 Plan Member.
(B) Contributions. Each person who transfers from LACERS into Tier 5 shall pay contributions as provided in Section 4.2014(a) of this Chapter retroactive to January 8, 2006. To the extent that the transferring member has already paid contributions to LACERS for these pay periods, those sums shall be credited to meet the member’s obligation required here.
(C) Mandatory Transfer Contribution Payment. Each person who transfers from LACERS to Tier 5 shall pay $5,700 for transferring service credit as provided in Subparagraph (D) below. These contributions shall be credited to the member’s contribution account established pursuant to Section 4.2014(b) upon payment. The Board shall have the authority to establish rules regarding the manner and time within which these contributions shall be paid, including the right to charge interest. Notwithstanding any provision of Tier 5 or DROP to the contrary, a member shall not be eligible to retire from Tier 5 or to enter DROP until this contribution payment is paid in full, including interest, nor shall benefits be paid to any survivor of the member pursuant to Section 4.2008 of this Chapter until these contributions and interest have been paid in full.
(D) Transfer of Service Credit. Each person who transfers from LACERS into Tier 5 shall have any required academy training time with the Harbor Department and all sworn service with the Harbor Department in port police civil service classifications requiring peace officer status under Penal Code Section 830.1 transferred to Tier 5 from LACERS. Only actual service with the Harbor Department in these classifications shall be transferred; prior service with other City Departments transferred for purposes of Charter Section 1014 to the Harbor Department shall not be transferred. All funds on deposit in LACERS attributable to service transferred to Tier 5 on behalf of these employees shall be transferred to the Plan. The amount of funds due to the Plan from LACERS shall be mutually agreed upon between the Plan and LACERS and is to include, but not necessarily be limited to, employee contributions, City contributions, and earnings to cover all funded accrued liability for the period of the transferred service. After transferring to Tier 5, a Tier 5 Plan Member may not purchase Years of Service credit for any periods of employment while a LACERS member.
(E) Prohibition of LACERS Retirement During Employment. Each person transferring to Tier 5 who retains service credit with LACERS for periods of service that do not qualify for transfer to Tier 5, shall agree as a condition to the transfer that the person shall not retire from LACERS while the person remains employed as a Department Member, including any period in DROP, due to the prohibition set forth in Charter Section 1164.
(F) Disability Retirement and Survivor Benefits. For purposes of Sections 4.2006 and 4.2008 of this Chapter and Charter Section 1212, a Tier 5 Plan Member who transfers under Subdivision (2) shall be considered a Department Member as defined in Charter Section 1202(e) during all employment periods for which the member receives Years of Service credit pursuant to Paragraph (D), notwithstanding that the person was not an actual Tier 5 Plan Member at the time of employment. The intent of this provision is that the person shall be considered a Department Member at the time of employment for purposes of these sections, so that the amount of any disability or survivor pension granted pursuant to the provisions of Tier 5 shall be reduced as provided in Charter Section 1212.
(3) Actuarial Funding of the Plan. As authorized by Charter Section 1232(b)(6), inclusion of Harbor Department Members in Tier 5 of the Plan pursuant to Subsection (i) herein shall not trigger the elimination of the 1% payment by the City of Tier 5 employee contributions as provided in Charter Section 1222 and Section 4.2014 of this Chapter. The determination of 100% funded status required by Charter Section 1222 and Section 4.2014 of this Chapter shall be made without regard to any impact resulting from including these employees in Tier 5 of the Plan. The Harbor Department shall reimburse the City so that the City does not incur any costs to the Plan for these employees.
(4) Harbor Department Responsibility for Payment. The Harbor Department shall pay the Plan for all costs and expenses incurred by the Plan as a result of including Harbor Department Members as members of Tier 5, including any unfunded liability incurred by the Plan. The Harbor Department shall also pay LACERS for all costs and expenses incurred by LACERS in connection with transfers between LACERS and Tier 5 related to the inclusion of these members in Tier 5.
(j) Notwithstanding any other provision of this chapter, any person appointed as Fire Chief or Chief of Police, who is not currently a Department Member, shall have the right to opt out of Plan membership in Tier 5 in order to become a member of the Los Angeles City Employees’ Retirement System. To exercise this right, the Chief must file a written opt out election with the Department of Fire and Police Pensions within seven calendar days of appointment. Once filed, the Chief shall be considered a member of the Los Angeles City Employees’ Retirement System effective as of the date of appointment.
SECTION HISTORY
Chapter and Section Added by Ord. No. 174,367, Eff. 12-19-01.
Amended by: Subsec. (c)(4) added, Ord. No. 176,416, Eff. 1-25-05; Subsec. (f) amended and Subsec. (i) added, Ord. No. 177,214, Eff. 1-4-06; Subsec. (j) added, Ord. No. 179,987, Eff. 7-3-08; Subsec. (c)(5) added, Ord. No. 184,853, Eff. 4-6-17.