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Section
1150 Los Angeles City Employees’ Retirement System (LACERS).
1152 Definitions.
1154 Retirement Fund.
1156 Transfer of Released Liability for Transferred Employees.
1158 Actuarial Standards.
1160 Budget.
1162 Contribution of Members.
1164 Employment by the City of a Retired Member of the System.
1166 Authority to Administer Other Retirement Plans.
1168 Establishment of Benefits by Ordinance.
1170 Benefits Not Assignable.
There is hereby created, established and adopted a retirement system for all officers and employees of the City of Los Angeles not now included within any other pension or retirement system under the provisions of this Article. The benefits of the System’s Plan shall be adopted by ordinance in accordance with Section 1168 of this Part 1 and shall be set forth in the City Administrative Code.
For the purpose of this Part 1 concerning the LACERS, the following words and phrases shall have the meaning ascribed to them in this section unless a different meaning is clearly indicated by the context:
(a) Accumulated Contributions: The total of the amounts paid into the fund by the member and any interest credited to the member’s account.
(b) Beneficiary: Persons entitled to receive a benefit from the Plan.
(c) Member: An employee of the City of Los Angeles who meets the membership requirements of the Plan as further defined in ordinance(s) establishing the benefits of the Plan.
(d) Plan: The Los Angeles City Employees’ Retirement System as adopted by the Council under authority of Section 1168.
(e) Retired Member: A member who has ceased employment with the City of Los Angeles and is receiving a regular monthly benefit payment from the Plan.
(f) Retirement Fund: The trust fund established for the LACERS separate and apart from the other money of the City.
(g) System: The Los Angeles City Employees’ Retirement System (LACERS).
There shall be a fund known as Los Angeles City Employees’ Retirement Fund for the payment of administration expense, retirement allowances and other benefits of the System, which fund shall consist of all money paid into the fund in accordance with the provisions of this Part 1, and earnings from investments.
If any City function and System Members who perform that function are transferred to another public agency, and if the receiving public agency affords System Members the opportunity to secure retirement credit for their City service in that public agency’s retirement system, then the Released Liability to this System for the transferred System Members who elect to transfer their accumulated contributions from this System to the retirement system of the receiving public agency shall be made available for payment on account of the required employer contribution for the retirement system of the receiving public agency. The Released Liability shall be made available in the manner specified in the ordinance authorizing the transfer of the City function but in no event shall the amount of money made available exceed the required employer contributions on account of those System Members who request the transfer of their accumulated contributions.
For the purpose of this section, the phrase Released Liability shall mean the City’s share of the actuarially determined present value of benefits earned to the date of the transfer under the LACERS and shall be based upon the rates of withdrawal and other actuarial assumptions in effect on the date of the transfer and an assumed interest factor as determined by the Board of Administration which reflects, as closely as practicable, the interest rate at which member contributions and the City reserves were credited as provided in Section 1162 for the six-month period immediately preceding the date of the transfer.
(a) Reserve Basis. The Board of Administration shall adopt an actuarial report showing the cost of maintaining, upon a reserve basis, the System and Fund, and shall, at intervals of not to exceed five years, cause to be made an actuarial investigation into the mortality, service, and compensation experience of the members and beneficiaries, and shall further cause to be made an actuarial valuation of the assets and liabilities of the Retirement Fund. The board shall keep in convenient form any data necessary for the actuarial valuation of the Retirement Fund established in Section 1154.
(b) Setting Actuarial Assumptions. Upon the basis of the investigation and valuation, the Board of Administration shall:
(1) adopt for the System an interest rate and mortality, service and other tables as deemed necessary by the board; and
(2) revise or change the rates of the City contributions on the basis of these mortality, service and other tables.
(c) Records. In addition to other records and accounts, the board shall keep any records and accounts necessary to show at any time:
(1) the total accumulated contributions of the Members, both individually and collectively;
(2) the total accumulated contributions of Retired Members, less the total annuity payments made to such retired members; and
(3) separately the amounts paid into the fund by the City on account of that part of the cost of the System to be borne by the City.
(d) Annual Report. The board shall prepare at the close of each fiscal year a financial statement showing the assets and liabilities of the Retirement System and Fund.
(a) Transmittal of Budget. The board shall annually prepare and transmit to the Mayor and Controller a budget setting forth the estimated cost of maintaining the Retirement Fund. The budget shall include separate items as follows:
(1) City Contributions. A sum equal to a percentage of the salaries of all members of the retirement system, which percentage shall be the same as that shown in the last actuarial report rendered, as herein before provided to be the percentage required for members of departments with no past service.
(2) Liquidation of Unfunded Liabilities. A sum sufficient to liquidate, over a period of up to 30 years, any accrued unfunded liabilities assumed by the System.
(3) Administrative Expenses. At the discretion of the City Council, the administrative expenses of the System.
(b) General Obligation of the City. The obligation to pay benefits of LACERS shall be a general obligation of the City of Los Angeles.
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