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(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)
Each person who shall be appointed as a Department Member on or after January 29, 1967 and through December 7, 1980 shall become a Tier 2 System Member as of the effective date of such appointment. Each person who was appointed as a Department Member prior to January 29, 1967 shall become a Tier 2 System Member as of the date upon which a request is filed as provided by Section 1402. In no event shall any other person become a Tier 2 System Member.
(a) Filing of Request with Board. Each Department Member who was appointed prior to January 29, 1967 shall have the right to become a Tier 2 System Member and may exercise such right only by filing a request with the Board by January 29, 1968, except as is hereinafter provided. Each such Department Member who shall be serving in the armed forces of the United States as of January 29, 1967 and who thereafter shall return to active duty as a Department Member, within the time required for job rights and other benefits, may exercise such right only by filing a request with the Board by January 29, 1968 or within 90 days immediately following such return to active duty, whichever shall be the later. Each person who shall be receiving a disability pension pursuant to Section 1310 or to Section 1312 of Tier 1 of this Article as of January 29, 1967 and who thereafter shall be restored to active duty as a Department Member may exercise such right only by filing a request with the Board by January 29, 1968 or within 90 days immediately following such restoration to active duty, whichever shall be the later. The legally appointed, qualified and acting guardian of the estate of any such Department Member may exercise such right for and on behalf of the Department Member only by filing a request with the Board by January 29, 1968, but Court approval first shall have been obtained.
(b) Extension of Filing Time. The Board, for good cause and in its discretion, may extend the time within which any such Department Member or the guardian of the estate of any such Department Member may file a request, whether the applicable period hereinabove prescribed shall have or shall not have elapsed, and may impose whatever terms and conditions which it shall deem to be reasonable and just for the giving of any extension of time.
(c) Waiver of Pension Rights and Benefits in Tier 1. Each request shall be in writing, shall be signed by such Department Member or by the legally appointed, qualified and acting guardian of the estate of such Department Member, shall contain his full and complete waiver of any and all present and future pension rights and benefits provided by Tier 1 of this Article, including derivative rights and benefits for widows and other beneficiaries, shall contain his full and complete release, discharge and acquittance of the City and the Board of and from any and all present and future liabilities for the payment of any benefits pursuant to Tier 1 and shall contain his election to become a Tier 2 System Member. The contents of the request need not be restricted to the aforementioned items and such request may include any and all provisions which the Board and the City Attorney may deem to be necessary or desirable to effectuate full and complete release, discharge and acquittance by each such member of the City and the Board of and from any and all present and future liabilities for the payment of any benefits pursuant to Tier 1, and the Board, after the effective date of this Tier 2, shall have the power and authority to expend moneys for the preparation of requests and for the distribution of them to such Department Members.
(d) Spousal Consent or Waiver by Board. Each request, whether signed by such Department Member or by the guardian of his estate, shall be signed by the spouse of such Department Member whereby he or she shall freely and voluntarily join in and consent to everything contained therein with the same force and effect as if he or she had signed the same as a member, and such request, when so signed, shall be both effective and irrevocable upon filing with the Board. However, the Board, in its discretion but only upon the written request therefor by the particular Department Member involved, may waive the requirement that the request shall be signed by the spouse of such Department Member, except in the case of any Department Member who was appointed as a member of the Fire Department or of the Police Department prior to January 17, 1927, and such request, when signed by the Department Member or the guardian of his estate, shall be both effective and irrevocable upon filing with the Board after but not prior to the Board’s action waiving the requirement.
A reactivated member under Tier 1 of this Article who, after the effective date of his return to active duty shall have had five years of service as defined in Section 1306(a)(4)(C), shall have the right, pursuant to Section 1402, to become a System Member under this Tier 2. He may exercise such right only within the one year from and after the date upon which he shall have completed such five years of service. Any reactivated member who shall become a Tier 2 System Member also shall become a reactivated member under this Tier 2. Section 1402 hereafter shall be construed and applied, as to a reactivated member under Tier 1, in accordance with this section.
In addition to the words and phrases defined in the Fire and Police Pension Plans General Provisions in Part 3 and for the purposes of this Tier 2, 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) Member of the Fire Department: Member of the Fire Department means a person duly and regularly appointed in the Fire Department, under civil service rules and regulations or provisions of the Charter, or both, governing the making of original regular and permanent appointments therein which require the serving of probationary periods but not of original emergency or temporary appointments therein, to perform duties as a firefighter for the City, under whatever designation such person may be described in any salary or departmental ordinance providing salaries for the members of the department. Such person shall be a member of the department only until his status as such shall be terminated by reason of his retirement, resignation or discharge or for any other reason.
(b) Member of the Police Department: Member of the Police Department means a person duly and regularly appointed in the Police Department, under civil service rules and regulations or provisions of the Charter, or both, governing the making of original regular and permanent appointments therein which require the serving of probationary periods but not of original emergency or temporary appointments therein and sworn in, as provided by law, to perform duties as a police officer for the City, under whatever designation such person may be described in any salary or departmental ordinance providing salaries for the members of the department. Such person shall be a member of the department only until his status as such shall be terminated by reason of his retirement, resignation or discharge or for any other reason.
(c) System Member: System Member means a person who is a Department Member and whose pension rights and benefits are governed by this Tier 2.
(d) Qualified Surviving Spouse: Qualified Surviving Spouse means a person who is the widow or widower of a deceased System Member or Retired Member who had been married:
(1) to the System Member for at least one year prior to the date of his or her nonservice-connected death while a System Member, or
(2) to the System Member as of the date of his or her service-connected death while a System Member, or
(4) to the Retired Member as of the effective date of his or her retirement upon a service-connected disability pension pursuant to Section 1412(a).
(e) Minor Child: Minor Child means a person, but not including a person who is an illegitimate child of a deceased System Member or Retired Member who had not been legitimatized by such member, who is a legitimate child, a legitimatized child or an adopted child of such member, and who had not been adopted by a person of the same gender as such member prior to the date of his death, who is under the age of 18 years and who is not married. Such person shall be a minor child only until he shall be adopted by a person of the same gender as such member, shall attain the age of 18 years or shall marry, whichever shall be the earlier.
(f) Dependent Child: Dependent Child means a person, but not including a person who is an illegitimate child of a deceased System Member or Retired Member who had not been legitimatized by such member, who is a legitimate child, a legitimatized child or an adopted child of such member, and who had not been adopted by a person of the same gender as such member prior to the date of his death, who is not married and who, while under the age of 21 years, had become disabled, either prior or after the date of death of such member, from earning a livelihood for any cause or reason whatsoever, other than by reason of his own moral turpitude or as a result thereof. Such person shall be a dependent child only until he:
(1) shall be adopted by a person of the same gender as such member or shall marry, whichever shall be the earlier, regardless of his age at the time of the occurrence of either such event and whether or not he then is disabled from earning a livelihood; or
(2) shall attain the age of 18 years if neither of the events mentioned in this subsection had occurred prior thereto and if, at that time, he is not disabled from earning a livelihood; or
(3) shall cease to be disabled from earning a livelihood if none of the events mentioned in (1) and (2) had occurred prior thereto.
(g) Dependent Parent: Dependent Parent means a person who is a natural parent of a deceased System Member or Retired Member and to or for whom such member, during at least one year immediately preceding his death, contributed one half or more of such person’s necessary living expenses and who is unable to pay such expenses without the receipt of a pension. Such person shall be a dependent parent only until he shall be able to pay his necessary living expenses.
(h) Length of Service Pay: Length of Service Pay means any additional gross monthly pay or one twelfth of any additional gross annual pay which, by reason of length of service, shall be provided by ordinance, upon the conditions therein set forth, for the System Member’s permanent rank as of the date of the termination of his status as a Department Member.
(i) Special Pay: Special Pay means any additional gross monthly pay or one twelfth of any additional gross annual pay which, by reason of assignment to perform special duties other than hazardous duties, shall be provided by ordinance, upon the conditions therein set forth, for the System Member’s permanent rank as of the date of the termination of his status as a Department Member.
(j) Hazard Pay: Hazard Pay means any additional gross monthly pay or one twelfth of any additional gross annual pay which, by reason of assignment to perform helicopter duties, two-wheel motorcycle duties or any other hazardous duties, shall be provided by ordinance, upon the conditions therein set forth, for the System Member’s permanent rank as of the date of the termination of his status as a Department Member.
(k) Assignment Pay: Assignment Pay means any additional gross monthly pay or one twelfth of any additional gross annual pay which, by reason of assignment to perform special duties or hazardous duties, in a higher class, position, grade, code or other title than the lowest within the System Member’s permanent rank, shall be provided by ordinance, upon the conditions therein set forth, as of the date of the termination of such System Member’s status as a Department Member.
Any such assignment pay shall not be included in the sum of any System Member’s Nonservice-Connected Pension Base but hereafter shall be included in the sum of his Normal Pension Base to the same extent and upon the same conditions as any hazard pay shall be included.
The provisions of this Tier 2 wherein the words “Normal Pension Base” are used hereafter shall be construed and applied in accordance with the provisions of this subsection.
(l) Year: Year means a period of 12 months or, in aggregating partial years for purposes of determining years of service, means 365 days.
(m) Years of Service: Years of Service means and includes only those periods during or for which the System Member as a Department Member of the Fire Department or of the Police Department, or of both, and whether prior or subsequent to his becoming a System Member:
(1) did or shall receive salary, whether in full or reduced amounts thereof;
(2) did or shall receive either a service connected disability pension or a nonservice connected disability pension, whether pursuant to Tier 1 of the Charter or pursuant to this Tier 2, if he was or shall be restored to active duty as a Department Member and did or shall perform his duties as such for at least 1 year prior to again retiring or being retired pursuant to this Tier 2, which year shall not include any time off from work by reason of any injury or illness which had been caused by or contributed to by any injury or illness which had been sustained or suffered by him prior to such restoration;
(3) is or shall become entitled, under any provision of general law or ordinance of the City, to credit toward retirement for periods of military service or military leave;
(4) did or shall receive Workers’ Compensation benefits for temporary disability on account of any injury or illness arising out of and in the course of employment; and
(5) is or shall become entitled pursuant to any ordinance of the City.
In computing years of service, all partial years shall be aggregated but, after the aggregation, any remaining partial year shall be disregarded in the computation of any pension.
(n) Partial Year of Service: Partial Year of Service means any period mentioned in subsection (m) of this section which is less than 12 months.
Any partial year of service shall be calculated from the end of the member’s last completed year of service to the end of the payroll period immediately prior to the date of his retirement and shall be counted as part of a System Member’s years of service for his retirement upon a service pension hereafter granted or for a pension hereafter granted to his qualified surviving spouse, minor child or children, dependent child or children or dependent parent or parents if he hereafter shall die while upon a service pension hereafter granted or while eligible for a service pension.
Any such partial year of service, in the case of a System Member who shall have had less than 25 years of service, shall be credited in the same ratio of 2% of his Normal Pension Base as such partial year shall bear to a complete year and, in the case of a System Member who shall have had 25 years of service or more, shall be credited in the same ratio of 3% of his Normal Pension Base as such partial year shall bear to a complete year.
(o) Normal Pension Base: Normal Pension Base of any System Member means the sum of:
(1) his monthly salary;
(2) any length of service pay which he had received immediately preceding the date of his retirement or death or upon the last day he had performed duties as a Department Member;
(3) any special pay which he had received immediately preceding the date of his retirement or death or upon the last day he had performed duties as a Department Member; and
(4) any hazard pay which he had received immediately preceding the date of his retirement or death or upon the last day he had performed duties as a Department Member or, if he had not received the same at either such time but had received such pay at some time prior thereto, 10% of the hazard pay which he had received at the time of the termination of his last assignment to hazardous duties for each year in the aggregate of his assignment to any hazardous duties not exceeding, however, ten years in the aggregate.
(5) for only those System Members who completed at least 12 months service in a Deputy Chief position, which was exempt from civil service, and who did not retire in the position of Deputy Chief or Chief of Police, an additional supplement of a percentage of the difference in the amount of compensation between the Deputy Chief position and the System Member’s compensation at the time of retirement. This percentage shall be prescribed by ordinance and shall apply for each year of service in the position of Deputy Chief, not to exceed the number of years as prescribed by ordinance.
Notwithstanding any of the foregoing, if a Retired Member were to be restored to active duty as a Department Member and thereby again were to become a System Member and if he again were to retire or to be retired without having performed his duties for at least 1 year subsequent to such restoration, which year shall not include any time off from work by reason of any injury or illness which had been caused by or contributed to by any injury or illness which had been sustained or suffered by him prior to such restoration, the Normal Pension Base which shall be applicable to his later retirement shall be the Normal Pension Base which had been applicable to his previous retirement.
(p) Nonservice-Connected Pension Base: Nonservice-Connected Pension Base of any System Member means the sum of:
(1) the highest monthly salary provided, as of the date of the System Member’s retirement or death, whichever shall first occur, for a Department Member then holding the basic rank of firefighter or police officer; and
(2) the highest length of service pay provided, as of the date of the System Member’s retirement or death, whichever shall first occur, for a Department Member then holding either of the basic ranks.
(q) Monthly Salary: Monthly Salary means the gross monthly salary or 1/12 of the gross annual salary which shall be provided by ordinance for the System Member’s permanent rank as of the date of the termination of his status as a Department Member excluding, however, length of service pay, special pay and hazard pay as defined in this section.
(r) Permanent Rank: Permanent Rank means the rank or the position within the rank which shall be held, upon a permanent basis under applicable civil service rules and regulations or provisions of the Charter, or both, by the System Member immediately preceding the termination of his status as a Department Member, but does not mean any higher rank or any position within any higher rank in which the System Member then may be serving or theretofore may have served either a portion of a probationary period or pursuant to an emergency or temporary appointment.
(a) Time of Retirement. Any Tier 2 System Member under the age of 70 years who shall have 20 years of service or more shall be retired by order of the Board from further active duty as a Department Member either (a) upon the filing of a written application or (b) upon the filing of a written request by or on behalf of the head of the department in which the System Member is a Department Member if it shall be determined by the Board to be for the good of such department, other than for a cause or reason which would entitle such System Member to a disability pension pursuant to Section 1412, and the Board, if it shall so determine, shall state the cause or reason in its order retiring such Tier 2 System Member.
(b) Physical Exam for Members Age 70 Years or More. After a Tier 2 System Member has attained the age of 70, he shall annually submit to an examination by a regularly licensed, practicing physician selected by the head of the department who shall render a written report to such department as to whether or not the Tier 2 System Member is physically and mentally fit to continue his duties as a Department Member. If the Tier 2 System Member is found not to be physically and mentally fit to so continue his duties, he shall be retired effective the first day of the calendar month next succeeding that month in which the physician’s report was received by the Board.
(c) Pension Amount. Any such Retired Member shall be paid thereafter and for life a monthly service pension in an amount which shall be equal to a percentage of his Normal Pension Base, to wit:
(1) For less than 25 years of service: 2% thereof for each year of service;
(2) For 25 years of service: 55% hereof; and for each year of service over 25 years of service, an additional 3% thereof, not exceeding in all, however, a maximum of 70% thereof, which maximum of 70% shall be applicable regardless of the Retired Member’s length of service as a System Member or his age at retirement.
No Retired Member, retired pursuant to this section, ever shall be paid pension pursuant to Section 1412 concerning Disability Pensions.
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