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(a) Reserve Basis of System. The Fire and Police Pension Plan – Tier 1 shall be maintained on a reserve basis which, for the purposes of this Tier 1 shall mean one which provides for the accumulation and maintenance of the Fire and Police Tier 1 Service Pension Fund and the Fire and Police Tier 2 General Pension Fund which together will at all times be equal to the difference between the present value of the obligations assumed and the present value of the moneys to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of moneys with which they are to be paid in accordance with the provisions of Sections 1210(b)(1) concerning Fire and Police Pension Plans Budget and 1324 concerning Member Contributions. The Board shall retain a competent consulting actuary for the purpose of making the necessary actuarial studies and reports on the required investigations and valuations.
(b) Actuarial Investigation and Valuation. The Board shall secure an actuarial valuation showing the cost of maintaining the system and funds on such reserve basis and, at intervals of not to exceed five years, shall cause to be made an actuarial investigation including, but not limited to, the mortality, service and salary experience of the members and beneficiaries and shall further cause to be made annually an actuarial valuation of the assets and liabilities of the funds.
(c) Assumed Rate of Interest. The Board, from time to time and with the advice of the investment counsel, shall establish an assumed rate of interest as in its judgment seems proper in the light of the experience and prospective earnings on the investments of the funds.
(d) Unrealized Profits and Losses. With the advice of the consulting actuary and of the investment counsel, the Board, for the purpose of the actuarial valuations, shall provide by rule for the manner and to the extent to which any unrealized profits or losses in the equity-type investments of the funds shall be taken into consideration.
(a) Required Contributions. Each member of the Fire Department and of the Police Department included within the pension provisions of this Tier 1 shall contribute to the Fire and Police Tier 1 Service Pension Fund in the manner provided in this section, except that further contributions to the Fund shall not be required from an employee who has served as a member of the Fire Department or of the Police Department for more than 30 years.
(b) Payroll Deduction. The administrative head of each such department shall cause to be shown on each and every payroll of the department a deduction of six percent (6%) of the amount of salary, as shown on each such payroll, of each such member whose name appears thereon, and shall certify to the Controller on each such payroll the amount to be deducted from the compensation of each such member whose name appears thereon, and shall cause to be drawn a payroll check in favor of the “Board of Fire and Police Pension Commissioners” for the total amount of deduction shown on each payroll of such department, and the Board shall deposit the payroll check to the credit of the Fire and Police Tier 1 Service Pension Fund. It shall be the duty of the administrative head of each department to cause to be furnished a copy of each and every payroll to the Board.
(c) Deemed Consent to Deduction. Each member shall be deemed to consent and agree to each deduction made as provided for herein and the payment of each payroll check to such member shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by each member during the period covered by such payroll, except such claims as a member has to the benefits or payments provided for in this Tier 1.
(d) Maintenance of Individual Accounts. Starting July 1, 1982, the Board shall maintain an individual account of the contributions by each member, as hereinabove provided. Regular interest shall be credited to such individual accounts as of the last day of June and December of each year after July 1, 1982, at such rate as the Board may deem proper in light of the earnings of the funds of the Fire and Police Pension Plan – Tier 1, exclusive of profits and losses on principal resulting from sales of securities. No such interest shall be credited at any other time, except such interest shall be credited to the individual account of a member whose employment is terminated for any reason for any period of service between the next preceding last day of June or December and the end of the pay period preceding the date of such termination at the rate at which regular interest was last credited to members’ individual accounts.
(e) Refund of Individual Account Balance. Every person who is a member of the Fire and Police Pension Plan – Tier 1 on July 1, 1982 shall, upon termination of employment be entitled to a refund of contributions made by him or her pursuant to the provisions of this section. A person not a member on July 1, 1982 and whose employment terminated prior to that date, shall not be entitled to a refund of contributions made by him or her during periods of membership prior to July 1, 1982.
The refund of contributions shall be subject to the following conditions and limitations:
(1) Refund on Termination. Upon termination of employment as a member of the Fire Department or the Police Department for any reason except retirement pursuant to the provisions of this Tier 1, a member shall be entitled to have refunded to him or her all contributions made by such member to the Fire and Police Tier 1 Service Pension Fund (and any predecessor funds) prior to July 1, 1982, plus 6% per annum interest on such contributions calculated in the same manner as if interest had regularly been credited to the member’s contributions, compounded as of the last day of the last pay period of December and to the end of the last pay period preceding the effective date of termination of employment.
(2) Forfeiture of Pension. Members who elect to receive a refund of contributions, forfeit the right to benefits provided in this Tier 1. After payment of any pension benefit has commenced, a member forfeits the right to a refund of the member’s contributions. Members who return to active duty from a disability pension may not thereafter have contributions made by them prior to their retirement on such disability pension refunded.
(3) Beneficiary Designation. Members shall have the right to designate persons who shall be entitled to receive monies to which a member would otherwise be entitled upon termination of employment, to be payable to such designated person or persons upon the member’s death; except that no such monies shall become payable if any person should be entitled to any other benefit provided in this Tier 1. The Board shall adopt appropriate forms for the designation by members of persons who shall be a member’s beneficiaries.
(a) Time Off With Pay. Whenever a member, for overtime work, shall take a period of time off with pay:
(1) a deduction for pension purposes shall be made from such pay but only in the same amount as that which would have been deducted from his regular salary if such period had been one of regular work;
(2) such pay shall be part of the salary assigned or attached to the rank or position held by him but only in the same amount as that which would have been his regular salary if such period had been one of regular work; and
(3) such period shall be part of his years of aggregate service.
(b) Cash Payment. Whenever a member, for overtime work, shall receive a cash payment:
(1) a deduction for pension purposes shall not be made from such payment;
(2) such payment shall not be part of the salary assigned or attached to the rank or position held by him; and
(3) the period of overtime work for which he shall receive such payment shall not be part of his years of aggregate service except that any period of a member’s overtime work, for which he shall not have taken time off with pay, shall be credited, by the Board, as part of his years of aggregate service, upon his or his survivor’s written request therefor, to the same extent as he would have been entitled to take therefor time off with pay but only to the extent, and not in excess thereof, that he, while a member, shall have had any period of absence from work without pay. Such request shall be accompanied with payment of the amount which would have been deducted for pension purposes from his regular salary if the period of overtime work, to the extent credited, had been one of regular work.
(a) Service, Disability and Survivor Pensions to Remain Unaffected Except as Adjusted for Cost of Living. That all pensions granted in accordance with the provisions of Sections 1304, 1310, 1312, 1314 and 1316 concerning Service, Disability and Survivor Pensions shall remain in full force and effect for the period granted, and any increase or decrease of salaries of active members of the Fire and Police Departments shall not in any way affect the amount of the pensions to be paid to retired members of such departments, or to any other person pensioned pursuant to the provisions of this Tier 1, nor shall the amount of such pensions be changed for any other reason, except as otherwise specifically provided in this Tier 1.
(b) Cost of Living Adjustment. From and after July 1, 1961, pension payments on account of service-connected disability or death granted prior to June 30, 1960, shall be increased as follows:
(1) Service Connected Disability Pension. In the case of a disability pensioner retired under the provisions of Section 1310 concerning Service Connected Disability Pensions, the amount payable as of June 30, 1960, calculated, however, on the degree of disability as of June 26, 1961, shall be increased in the ratio which the consumer price index for the month of June, 1960, bears to the consumer price index for the month in which such pension became effective. The power vested in the Board under the provision of Section 1310 to change the amount of pension by reason of the degree of disability, as therein provided, is expressly continued and in the event of any such change after June 26, 1961, the amount established hereunder shall be increased or decreased in the ratio which the newly determined degree of disability bears to the degree of disability immediately preceding such change.
(2) Service Connected Survivor Pension. In the case of a widow, or child or children, entitled to a pension based on service-connected disability or death pursuant to Section 1314 concerning Service Connected Survivor Pensions, the amount payable, calculated as of June 30, 1960, shall be increased in the ratio which the sum of the consumer price indexes for the three-year period ending June 30, 1960, or lesser period where the original pension was calculated on a period of less than three years, bears to the sum of such indexes for the period during which salary was originally taken into account in determining the amount of such pension. In the case of a widow receiving an additional amount on account of a child or children pursuant to Section 1314 concerning Service Connected Survivor Pensions, the increase provided by this section shall first be calculated upon the amount due her, exclusive of such additional amount and the applicable percentage increase on account of children shall then be applied to her new pension amount.
(c) Applicable Index. The consumer price indexes referred to in this section shall be those published by the Bureau of Labor Statistics for the Los Angeles area (all items and commodity groups 1947-49 =100 base) and for those months for which a monthly index is not published, monthly indexes shall be established by a straight line interpolation between the published monthly indexes.
(d) Inapplicability to Fluctuating Pensions. This section shall not apply to any pension payment which fluctuates with the current salaries established for the several ranks and positions in the Fire or Police Department and in the event it is held by any final judgment or decree of a court of competent jurisdiction, after the effective date of this section that any person granted an increase under the provisions of this section is entitled to a fluctuating pension based upon such salary rates, then, from and after the effective date of such adjudication, this section shall have no further force or effect as to such person.
The additional liabilities assumed by Tier 1 under this section, shall be funded under the provisions of Section 1210(b)(1) concerning the Tier 1 Budget.
(e) Minimum Pension Amount. Each pension granted pursuant to this Tier 1, regardless of the type of the pension, which shall be less in amount than $250 per month as of January 26, 1967 shall be increased to the amount of $250 per month as of February 1, 1967, and the monthly amount of such pension thereafter shall not be reduced to a monthly amount less than such increased monthly amount except pursuant to Section 1212 concerning Worker’s Compensation.
(f) Implementation of Minimum Pension Provisions. Subject to and upon the conditions contained in this section, the minimum monthly amount of pension provided by subsection (e) shall be applicable, from and after July 1, 1967, to all pensions heretofore or hereafter granted pursuant to this Tier 1. The monthly amount of each pension which, as of August 1, 1967, is in a lesser monthly amount than the minimum monthly amount of pension provided by subsection (e), as augmented pursuant to subsection (g), shall be increased, effective as of the first day of the month, to the minimum monthly amount of pension so provided and as so augmented. Each pension granted after August 1, 1967, shall be in a monthly amount not less than the minimum monthly amount of pension provided, as of the effective date of the pension, by subsection (e), as augmented pursuant to subsection (g). The monthly amount of any pension which is or shall be affected by the minimum monthly amount of pension provided by subsection (e), as augmented pursuant to subsection (g):
(1) shall be subject to be reduced pursuant to Section 1212 concerning Worker’s Compensation despite any other provisions of this Tier 1; and
Any such reduction under subsection (f)(2) shall be made only if it shall not reduce the monthly amount of the pension to a lesser monthly amount than the monthly amount of pension to which it had been increased pursuant to subsection (b) or to a lesser monthly amount than the minimum monthly amount of pension provided by subsection (e), as augmented pursuant to subsection (g) effective as of the date of any such reduction, whichever shall be the greater.
(g) Cost of Living Adjustments for Service and Survivor Pensions. The Board, before May 1st of each year commencing with the year 1967, shall determine the percentage of the annual increase or decrease in the cost of living as of March 1st of that year from March 1st of the preceding year, as shown by the consumer price index published by the Bureau of Labor Statistics for the area in which the City of Los Angeles is located. If any such index were not to reflect the cost of living as of a particular March 1st, then the next preceding such index which had done so shall be used. If there were to be any change in the statistical method or the components which were used in any such index from those which were used in any such index of the preceding year with which a comparison is to be made, then the Board, to the extent possible, shall adjust any such differences therein for the purpose of determining the percentage of increase or decrease in the cost of living.
Commencing as of July 1st of the year in which the Board shall so determine the percentage of increase or decrease in the cost of living, the amounts of certain pensions, as hereinafter identified and upon the conditions hereunder stated therefor, shall be increased or decreased by reason of such determined percentage of increase or decrease in the cost of living but not to exceed, however, two percent (2%) in any given year. Such determined percentage of increase or decrease in the cost of living, as so limited, shall be applied to the amounts of such pensions which shall be payable for the preceding month of June, including any previous percentage of increase or decrease in the cost of living made with respect thereto.
The percentage of increase or decrease in the cost of living first shall be applied to:
(1) Minimum Pensions Under Subsection (e). The pension of any person, whose pension shall be increased pursuant to subsection (e) on July 1, 1967;
(2) Nonfluctuating Service Pensions of Persons Retired Prior to July 1, 1967. The pension of any retired member who had been retired or who shall be retired pursuant to Section 1304 concerning Service Pensions prior to July 1, 1967, upon a pension which shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon July 1, 1967, if he shall have attained the age of 55 years prior to that date, or, if he shall not have attained such age prior to that date, upon the July 1st following the date upon which he shall have attained such age;
(3) Nonfluctuating Service Pensions of Persons Retired After July 1, 1967. The pension of any retired member who shall be retired pursuant to Section 1304 concerning Service Pensions after July 1, 1967, upon a pension which shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon the July 1st following the effective date of his pension if he shall have attained the age of 55 years prior to that date or, if he shall not have attained such age prior to that date, upon the July 1st following the date upon which he shall have attained such age;
(4) Survivor Pensions Granted Prior to July 1, 1967 and Based Upon Nonfluctuating Service Pensions. The pension of any widow, minor child or children or dependent parent or parents which had been or shall be granted pursuant to Section 1314 concerning Service Connected Survivor Pensions prior to July 1, 1967, following the death of a retired member who had been retired pursuant to Section 1304 with a Service Pension or of an active member who had become eligible to retire pursuant thereto, and which pension shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon July 1, 1967, if such retired member or such active member, as the case may be, would have attained the age of 55 years prior to that date if he had been alive on that date or, if he would not have attained such age prior to that date if he had been alive on that date, upon the July 1st following the date upon which he would have attained such age if he had been alive on that date; and
(5) Survivor Pensions Granted After July 1, 1967 and Based Upon Nonfluctuating Service Pensions. The pension of any widow, minor child or children or dependent parent or parents which shall be granted pursuant to Section 1314 concerning Service Connected Survivor Pensions after July 1, 1967, following the death of a retired member who had been retired pursuant to Section 1304 with a Service Pension or of an active member who had become eligible to retire pursuant thereto, and which pension shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon the July 1st following the effective date of such pension if such retired member or such active member, as the case may be, would have attained the age of 55 years prior to that date if he had been alive on that date or, if he would not have attained such age prior to that date if he had been alive on that date, upon the July 1st following the date upon which he would have attained such age if he had been alive on that date.
The amount of any pension referred to in subsections (g)(1), (2), (3), (4) or (5) hereof never shall be reduced, by reason of the application thereto of this section, to an amount less than the amount to which any pension referred to in subsection (e) shall be increased or to an amount less than the amount thereof originally granted.
(h) Carryover of Excess Cost of Living Adjustment From Year to Year. If the percentage of increase or decrease in the cost of living in any year, as determined by the Board, were to exceed 2% as compared with the cost of living as of March 1st of the preceding year, the percentage of increase or decrease in the cost of living in excess of 2% shall be carried over and added to or subtracted from the percentage of increase or decrease in the cost of living in the succeeding year, and such procedure shall be complied with from year to year.
(i) Application of Cost of Living Adjustment to Other Pensions. The provisions of subsection (g), if otherwise not applicable as of July 1, 1967 to any pension referred to in subsection (f), shall be applicable thereto, from and after July 1, 1967, to the same extent and in the same manner as they are applicable to any pension referred to in subsection (e). Any adjustments provided to be made in monthly amounts of pensions pursuant to subsection (g) shall be applicable to the monthly amounts of other pensions which are not referred to in that section or in the foregoing provisions of this section whenever the monthly amounts of any such other pensions otherwise would be in lesser monthly amounts than the minimum monthly amount of pension provided by subsection (e), as then augmented pursuant to subsection (g).
(j) Additional Cost of Living Adjustments for Disability and Survivor Pensions.
(1) Special Definitions. Wherever used in this subsection:
(A) “the pension” shall mean, unless subsection (g) shall be mentioned in conjunction therewith, only a pension which is not identified in subsection (g), is not referred to in subsection (i) and is in an amount which shall not increase or decrease by reason of any increase or decrease in the salary of any active member;
(B) “the July 1st following” shall mean only a July 1st after May 2, 1969; and
(C) “person” shall include its plural.
(2) Application of Subsection (g) Adjustments. The percentage of increase or decrease in the cost of living hereafter shall be applied pursuant to subsection (g) and the terms and conditions contained in this section:
(A) Disability Pensions. To the pension of any retired member, ever retired pursuant to:
(i) Section 1310 concerning Service Connected Disability Pensions, upon the July 1st following the date of this retirement or the effective date of this paragraph of this section, whichever shall be the later; or
(ii) Section 1312 concerning Nonservice Connected Disability Pensions, upon the July 1st following the date he shall have attained the age of 55 years or the fifth anniversary of the effective date of the pension, whichever shall be the earlier;
(B) Survivor Pensions. To the pension of any person,
(iv) hereafter granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 concerning Nonservice Connected Disability Pensions where the amount of the pension shall be calculated upon the salary specified in Section 1316 by reason of such person’s written election therefor pursuant to Section 1318, upon the July 1st following: the date such member shall have attained the age of 55 years, the date such member would have attained such age if he then had been alive, or the fifth anniversary of the effective date of the pension of such person, whichever shall be the earliest. Pensions described in subsection (j)(2)(D) shall be adjusted upon the effective date specified in that subsection;
(C) Other Survivor Pensions. To the pension of any person,
(iii) hereafter granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 with a Nonservice Connected Disability Pension where the amount of the pension shall be calculated upon the salary specified in Section 1312 by reason of such person’s written election therefor pursuant to Section 1318, upon the July 1st following the date such member shall have attained the age of 55 years, the date such member would have attained such age if he then had been alive, or the fifth anniversary of the effective date of the pension of such member, whichever shall be the earliest; and
(D) Survivor Pensions Based Upon Line of Duty Death. To the pension of any person ever granted on account of the death of an active member of the Fire or Police Department who died as result of any injury received during the performance of his or her duties, or from sickness caused by the discharge of such duties, upon the July 1st following the effective date of such pension, but if such pension became effective before July 1, 1989, it shall be retroactively adjusted as of July 1, 1989.
(3) Procedure for Applying Cost of Living Adjustments to Certain Pensions. The following provisions in respects other than those provided for in subsection (j)(2) of this section, hereafter shall be controlling the application to certain pensions of the percentage of increase or decrease in the cost of living.
(A) Service Pensions and Widow Pensions. Whenever the amount of the pension,
(i) of any retired member shall be increased or decreased pursuant to Section 1310 concerning Service Connected Disability Pensions, or
(ii) of any widow shall be increased or decreased pursuant to Section 1314 or Section 1316 concerning Survivor Pensions: the amount of any such increase shall not include the percentage of any increase in the cost of living which previously had been applied to the former amount of the pension; and the amount of any such decrease shall include the percentage of any increase in the cost of living which previously had been applied to it as a portion of the former amount of the pension.
(B) Other Survivor Pensions. Whenever the pension of any person,
(iii) hereafter shall be granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 concerning Nonservice Connected Disability Pensions where the amount of the pension shall be calculated upon the salary specified in Section 1312 by reason of such person’s written election therefor pursuant to Section 1318,
the amount of the pension of any such person (I) if the amount thereof which shall be payable to such person were to be more than the amount of the pension which had been payable to such member, shall include the percentage of any increase in the cost of living which had been applied to the pension of such member, or (II) if the amount thereof which shall be payable to such person were to be less than the amount of the pension which had been payable to such member, shall include that portion of the percentage of any increase in the cost of living which had been applied to the pension of such member which shall be in the same ratio as the amount of the pension which shall be payable to such person shall bear to the amount of the pension which had been payable to such member, and the percentage of any increase or decrease in the cost of living in excess of 2% per year which had been carried over for such member as of the date of his death shall be carried over for such person if (I) hereof were to be applicable or in the same ratio therein provided if (II) hereof were to be applicable.
(C) Pensions of Minor Children. Whenever the pension of any widow hereafter shall be terminated pursuant to Section 1314 or Section 1316 concerning Survivor Pensions and the pension therein provided thereafter shall become payable pursuant thereto on behalf of any minor child or children of the deceased member, the amount of pension on behalf of such child or children shall include that portion of the percentage of any increase in the cost of living which had been applied to the pension of such widow which shall be in the same ratio as the amount of the pension which shall be payable on behalf of such child or children shall bear to the amount of the pension which had been payable to such widow, and the percentage of any increase or decrease in the cost of living in excess of 2% per year which had been carried over for such widow as of the date of the termination of her pension shall be carried over on behalf of such child or children in the same ratio hereinabove provided.
(4) Limitations on Subsection (g) Reductions. The amount of the pension never shall be reduced, by reason of the application thereto of the provisions of subsection (g) of this section, to an amount less than:
(A) the amount thereof if subsection (b) is applicable,
(B) the amount thereof if subsection (e) is applicable,
(C) the amount thereof if subsection (f) is applicable, or
(D) the amount thereof payable pursuant to provisions of this Tier 1, other than those of subsection (g) or this section, if none of the sections mentioned in (A), (B), or (C) above is applicable.
(5) Applicability. Subsection (g) hereafter shall be construed and applied in accordance with this subsection (j) as to each pension mentioned in this subsection.
(k) Monthly Minimum Pension.
(1) Amount of Minimum Pension. Each pension granted pursuant to this Tier 1, regardless of the type of the pension, which became or becomes effective prior to July 1, 1971 and which, as of June 30, 1971, is in a monthly amount of less than three hundred fifty dollars ($350) shall be increased, effective July 1, 1971 pursuant to the provisions of subsections (k)(2) and (3), and shall, if such increase results in a monthly pension amount which is less than three hundred fifty dollars ($350), be increased to provide for a monthly minimum pension of three hundred fifty dollars ($350). Each pension granted pursuant to this Tier 1, regardless of the type of the pension, which becomes effective on or subsequent to July 1, 1971 shall be in a monthly amount not less than the minimum monthly pension amount provided, as of the effective date of the pension by this subsection of this section. The monthly amount of each such pension never shall be reduced, by reason of the provisions of subsection (g), subsection (i), subsection (j) or subsection (k)(3) of this section, to a monthly amount less than the minimum monthly pension amount provided by this subsection (k)(1).
(2) Amount of Increase. The monthly amount of pension of each retired member or other person which, prior to July 1, 1971, had been increased by reason of a cost of living adjustment thereof pursuant to subsection (g), subsection (i) or subsection (j) shall be increased, as of July 1, 1971, by that portion of the percentage of the annual increase in the cost of living, as had been determined by the Board pursuant to subsection (g), which was in excess of 2% but not in excess of 3% for each year the monthly amount of such pension had been increased.
(3) Subsection (g) Adjustments. The monthly amount of pension of each retired member or other person who heretofore did qualify or hereafter shall qualify for a cost of living adjustment thereof pursuant to subsection (g), subsection (i) or subsection (j) and the monthly amount of pension of each retired member or other person which shall be the minimum monthly pension amount provided by subsection (k)(1) of this section, hereafter shall be increased or decreased, as of the dates provided therefor by subsection (g), by the percentage of the annual increase or decrease in the cost of living as hereafter shall be determined by the Board pursuant to subsection (g).
(4) Applicability of This Subsection. The provisions of Section 1304, 1310, 1312, 1314 and 1316, and subsections (b), (e), (f), (g), (i) and (j) of this section hereafter shall be construed and applied in accordance with the provisions of this subsection (k).
(5) Savings Clause. Should any provision of this subsection (k) at any time be held to be invalid, in their application to certain persons or periods of time, such invalidity shall not affect the validity of any provisions as to other persons entitled to benefits hereunder or the applicability as to other periods of time.
(a) Purpose of this Section. It is the purpose of this section to enable the Council to provide by ordinance a program or programs whereby persons receiving pensions pursuant to the provisions of this Tier 1 may become eligible to have subsidy payments made on their behalf for health insurance, accident insurance, life insurance or health care plan coverage or coverage for any combination of such programs as determined by the Council and subject to such conditions of entitlement as may be set forth in any ordinance adopted in accordance with the provisions of this Tier 1.
(b) Supermajority Vote Requirement. Ordinances adopted pursuant to this section must be approved by not less than two-thirds of the membership of the Council, subject to the veto of the Mayor and readoption by the Council by three-fourths of the membership of the Council. No such ordinance may be finally adopted by the Council until the expiration of at least 30 days after its first presentation to the Council, nor until after a public hearing has been held.
Any ordinance adopted pursuant to this section shall go into effect upon its publication, but the terms of such ordinance, or portions thereof, may be operative at a later date or dates.
(c) Council Authority to Establish Subsidy Limitations. The Council may establish by ordinance the maximum subsidy payments for beneficiaries under any programs established by the Council pursuant to subsection (a), including appropriate limitations for employees receiving subsidies from other City plans.
(d) Subsidy Program Administration. Any subsidy program adopted by ordinance pursuant to this section shall be administered by the Board. The Board shall have the authority to contract for suitable programs as hereinabove defined in subsection (a) to be made available to retired members or other beneficiaries, and shall have the power to adopt rules necessary to administer the programs.
Notwithstanding the foregoing provisions, the Board may authorize the Personnel Department to administer any program or part established by ordinance pursuant to the provisions of this section. The Board shall reimburse the General Fund of the City of Los Angeles for all necessary expenses incurred by the Personnel Department as a result of administering these programs.
(e) Board Authority to Adjust Subsidy Amount. The Council may by ordinance authorize the Board to increase or decrease subsidy payments pursuant to factors, standards, and limitations prescribed in the ordinance.
SECTION HISTORY
Amended by: Charter Amendment 2, approved March 8, 2005, effective April 6, 2005.
(a) With the enactment of this section an election has been made as authorized under the provisions of Section 415(b)(10)(C) of the Internal Revenue Code to be bound by the limitations of Section 415 of the Code subject to the provisions of Section 415(b)(10)(A) and (B).
(b) If any of the provisions of Section 415 of the Internal Revenue Code should be repealed, the provisions of this section shall be deemed repealed to the same extent.
(Formerly Article XVIII)
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