(a) Member contributions shall continue as usual while the member participates in DROP at the rates specified as follows: Tier 2 = 6% or 7%, as specified in Charter Section 1420(b); Tier 3 = 8%; Tier 4 = 8%; Tier 5 = 8% or 9%, as specified in Charter Section 1222(b)(3) and Administrative Code Section 4.2014; Tier 6 = 9% or 11%, as specified in Charter Section 1714(a). Member contributions, however, shall cease when the member would have become eligible for the maximum service retirement formula established by the member’s Tier, except that members who have agreed to make Additional Contributions as provided in Administrative Code Section 4.1167 shall continue to make Additional Contributions as provided therein.
(b) Member contributions will be deposited into and become part of the general assets of the Fire and Police Pension Plan. Member contributions will not be deposited into nor become part of the member’s DROP account.
(c) The City will continue to make the annual contributions to the Plan under the Charter. These contributions will be deposited into and become part of the general assets of the Pension Plan. No City contributions will be credited to the member’s DROP account.
(d) After a member retires and simultaneously leaves DROP, the member will thereafter receive a monthly service pension benefit based upon the years of service and pension base at the time of entry into DROP and COLAs granted while in DROP, plus future COLAs according to the member’s Tier.
(e) A member who participates in DROP and who elects to apply for and is granted a disability pension after entering DROP shall forfeit the member’s entire DROP account and receive the member’s disability pension benefits as if the member had never entered DROP. Members waive any right to apply for or be granted a disability pension once they have taken distribution of their DROP account.
(f) Members on IOD status at the conclusion of their final month of participation must leave DROP but are permitted to continue on IOD status with their Department. Those members are not eligible to receive distribution of their DROP account until their retirement status is determined. If the member takes a disability retirement, the member shall forfeit the member’s DROP account. If the member elects to take a service retirement and distribution of the member’s DROP account, the member shall be required to repay any IOD pay earned after the last day of the member's participation in DROP.
(g) In the event of a member’s service connected death during the period of the member’s DROP participation, the member’s surviving spouse or domestic partner shall have the right to elect to forfeit the member’s DROP account and collect survivorship benefits as if the member had never entered DROP, provided that the election must be made no later than one hundred eighty (180) days following the member’s death. For all other deaths occurring while a member is participating in DROP, the normal post-retirement continuance benefits of the member’s Tier will be available plus the proceeds of the member’s DROP account.
(h) A member must be married or have a domestic partnership affidavit on file with the Fire and Police Pension Plan for at least one year prior to the member’s entrance into DROP for the member’s surviving spouse or domestic partner to be eligible for qualified surviving spouse/qualified surviving domestic partner pension benefits.
(i) Members, by entering DROP, are not eligible to be returned to active duty (as reactivated members) as provided in Charter Section 1410(a), Los Angeles Administrative Code Sections 4.2026(f) and 4.2200, or any other provision authorizing retired members to return to active duty as reactivated members.
SECTION HISTORY
Added by Ord. No. 174,540, Eff. 5-8-02.
Amended by: Subsec. (i), Ord. No. 177,900, Eff. 9-28-06; Subsecs. (a) and (i), Ord. No. 183,163, Eff. 8-8-14; Subsecs. (f) - (h), Ord. No. 185,935, Eff. 1-23-19.