(a) Council Authority. The Council may, by ordinance adopted in accordance with the provisions of this section, authorize payment of a portion of employee contributions to Tiers 3, 4, and 5 of the Fire and Police Pension Plan, not to exceed a portion of the required contributions under Charter Sections 1514 and 1614 and Los Angeles Administrative Code Section 4.2014 equal to 2% of salary, pursuant to labor-management Memoranda of Understanding (MOU) for members of the Fire and Police Pension Plan. Provided that a defrayal of an amount equal to no more than 1% of salary may be negotiated as part of each MOU and that such defrayal shall not be considered salary for purposes of computing Final Average Salary or for any other purpose. Funds paid by the City as a defrayal of member contributions pursuant to this section shall be paid into the appropriate Fund of the Fire and Police Pension Plan, but shall not be credited to members' individual contribution accounts, nor shall such funds be refundable to any member, former member or beneficiary. The defrayal of employee contributions authorized in this section shall be in addition to the contribution payment authorized under Charter Section 1222 in an amount equal to 1% of salary; should that payment cease by operation of the terms of Charter Section 1222, this shall not affect the authority granted to the Council under this section.
(b) Mode of Adoption. Ordinances adopted pursuant to this section shall be adopted in the same manner as provided in section 1618(b), but the City Council shall be advised in writing by an enrolled actuary as to the cost of the proposed defrayal.
Added by Charter Amendment 2, approved March 8, 2005, effective April 6, 2005.