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The Council may, by ordinance, amend the Fire and Police Pension Plan – Tier 3 to incorporate provisions of federal laws and regulations required to maintain the tax-qualified status of the Fire and Police Pension Plan – Tier 3. The Council also may enact ordinances to modify or repeal such provisions. Ordinances adopted pursuant to this section shall be adopted in accordance with Charter Section 1518. It is the intent of this section to facilitate compliance with the provisions of federal laws affecting the Fire and Police Pension Plan – Tier 3.
Notwithstanding any other provision of this Tier 3, the provisions of this section shall be controlling to the extent there is a conflict with another provision.
(a) Service or Disability Pensions for Former Plan Members. Any former Plan Member who shall believe that he or she is eligible to be paid a pension pursuant to Section 1504 or 1506 of this Tier 3, may file his or her written application for the payment of a pension pursuant to either one of the sections within the time prescribed for the filing thereof by any applicable provision of law, and the Board, if it were to determine that the contingencies provided in this Tier 3 for the payment thereof had happened or occurred as to such former Plan Member and if there is no legal bar or defense to the granting to him or her of such pension or to any judicial action or proceeding which could be brought by him or her with respect thereto, shall grant him or her the pension in accordance with his or her written application.
(b) Adoption of Board Rules to Comply with Federal or State Law. If at any time after December 8, 1980, federal or state law should become preemptive or controlling with respect to the provisions of this Tier 3, the Board shall have the power to adopt such rules as may be necessary to comply with such federal or state law. Such rules shall be adopted upon the advice and with the concurrence of the City Attorney.
(c) Payroll Deductions and Years of Service Credit for Overtime. Whenever a Plan 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 or her salary if such period had been one of regular work; and
(2) such period shall be part of his or her Years of Service.
Whenever a Plan Member, for overtime work, shall receive a cash payment:
(1) a deduction for pension purposes shall not be made from such payment; and
(2) the period of overtime work for which he or she shall receive such payment shall not be part of his or her Years of Service.
(d) Coordination with Deferred Compensation Plan. In the event the City establishes a deferred compensation system applicable to the members of the Fire and Police Pension Plan – Tier 3, the Board shall prescribe rates of contributions and benefits so that the interest of the City in protecting the Plan and the interest of the Plan Members in pension benefits are protected when compared with contributions and benefits which would have been received had deferred compensation not been instituted.
(a) Implementation Procedure for Social Security Participation. Should Social Security participation be mandated or made available to Plan Members by Federal legislation amending the Social Security Act or by action taken by the City or by Plan Members as provided by law, the following provisions shall govern the manner in which such participation by Plan Members is to be implemented and the limitations hereinafter set forth shall be controlling unless Federal law is contrary to these provisions, is in conflict therewith and is clearly intended to be preemptive. Should applicable provisions of Federal law in any respect differ from the provisions contained in this section and should they be determined to be preemptive as to any part thereof, then and in that event, those provisions of this section not affected by such Federal law shall remain in full force and effect.
(b) Council Authority to Coordinate Benefits and Contributions. As to the rights and entitlement to benefits of Plan Members participating in such Social Security coverage, the Council shall have the power and authority, subject to the veto of the Mayor, to adopt ordinances modifying the benefits and conditions of entitlement provided in this Tier 3, including adjustments of Plan Member contributions to the Fire and Police Pension Plan – Tier 3 as hereinafter more specifically provided and subject to the limitations stated herein.
(c) Supermajority Vote Required. 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 re-adoption by the Council by a vote of not less than three-fourths of the membership of 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 thereon. Any ordinance adopted pursuant to this section shall go into effect upon publication.
(d) Integration of Social Security and Pension Plan. Any participation in Social Security coverage shall be by integration with the benefits provided by this Tier 3 and shall not be in addition to the benefits provided in the Fire and Police Pension Plan – Tier 3. Integration is to be defined in harmony with the provisions of the Social Security Act and must be in substantial compliance with the rules and regulations governing said Act. Benefits provided by an integrated system must be at least equal to the benefits offered by the Fire and Police Pension Plan – Tier 3 prior to such integration. The level of integration may be periodically adjusted by the Mayor and Council to ensure an adequate level of integration.
(e) Minimum Plan Member Contributions. Plan Members participating in Social Security shall have their contributions to the Fire and Police Pension Plan – Tier 3 reduced but Plan Members must contribute at least 2% of salaries to the integrated Fire and Police Pension Plan – Tier 3.
(Formerly Article XXXV, Plan 2)
(a) Appointed Members. Each person who shall be appointed as a Department Member on or after July 1, 1997 shall become a Tier 4 Plan Member upon graduation by such person from training at the Police or Fire Academies or equivalent facility imparting basic training as a firefighter or police officer and maintained as such by the City of Los Angeles. A Chief of Police or a Fire Chief who is appointed to that position without having graduated from such facility may become a Member upon appointment. Upon becoming a Tier 4 Plan Member, a person may elect to purchase Years of Service credit for the period of such training in accordance with rules adopted by the Board.
(b) Active Members of Tier 3. Any active Department Member hired prior to July 1, 1997 who made an irrevocable election, in writing, during the period July 1, 1997 through June 30, 1998 to become eligible for the service retirement benefits provided under this Tier 4 shall become a Tier 4 Member.
(c) Former Members. Any Tier 1, 2 or 3 Member who ceased to be such as a result of resignation or discharge and who subsequently again becomes a Plan Member shall become a Tier 4 Member upon reappointment as a Department Member. However, a former Plan Member who previously had ten years of service under the provisions of Tier 3 who again becomes a Plan Member shall have the option of becoming a Tier 4 member only if both of the following conditions are met:
(1) the former Plan Member did not make an election to take a deferred pension under the provisions of Tier 3, and
(2) three years have not elapsed since the effective date of the former Plan Member’s resignation or discharge as a Plan Member.
Upon the return to duty, such Plan Member shall have 90 days to make an election to become a Tier 4 Member.
(d) Tier 3 Members On Disability. Any Plan Member who shall be receiving a disability pension pursuant to Tier 3 and who is restored to active duty as a Department Member on or after July 1, 1998 shall not be eligible to elect to become a Member of Tier 4, unless such Department Member was originally hired in under the provisions of this Tier 4.
(e) Members on Military Leave. Persons who are not active members during the election period due to service in the armed forces shall have 90 days following their return to active duty or June 30, 1998, whichever is later, to make an election to become a Tier 4 Member.
(f) Former Tier 1 & 2 Members. A person formerly a System Member under the provisions of Tier 1 or 2 of this Article whose membership had previously terminated by reason of resignation or discharge shall upon again being appointed as a Department Member become a Plan Member as of the effective date of such appointment. In the event such person did not receive a refund of contributions upon his or her termination as a System Member, then the definition of “Years of Service” elsewhere contained in this Tier 4 shall be controlling with respect to such person’s entitlement to service credit; and further, such person need not make back contributions on account of such former service and does not have any right to have contributions formerly made by him or her under the provisions of Tier 1 or 2 refunded in the event he or she should subsequently terminate as a Plan Member. In the event such person received a refund of his or her contributions under the provisions of Tier 1 or 2 as a result of his or her termination, then such person’s entitlement to Years of Service credit for the period of such former service shall be conditioned upon such person electing to repay and having paid to the Fire and Police Pension Plan the amount of previously refunded contributions, with interest thereon and an amount calculated as interest which would have been earned between the date of such termination and the date of entry into service as a Plan Member in accordance with rules adopted by the Board. In the event such member does not elect to so repay, the term Years of Service as elsewhere used in this Tier 4 shall not include any periods prior to his or her becoming a Plan Member, notwithstanding the definitions contained in Section 1602(m) and (n).
(g) Paramedics and Civilian Ambulance Employees. In addition to those Department Members described in subsection (a) of this section, paramedics or civilian ambulance employees shall become Plan Members upon the effective date of this subsection, except that persons employed as paramedic trainees shall become Plan Members only upon their certification, as provided by law, as mobile intensive care paramedics or equivalent. Upon certification Plan Members may elect to purchase Years of Service credit for the period of such training in accordance with rules to be adopted by the Board.
If such a Plan Member had periods of membership in the Los Angeles City Employees’ Retirement System while he or she was a paramedic or civilian ambulance employee, such Plan Member shall be entitled to elect to acquire Years of Service credit for such periods of membership in the Los Angeles City Employees’ Retirement System. Upon such election his or her contributions, plus interest credited thereon, and his or her City service credit shall be transferred to the Fire and Police Pension Plan – Tier 4 in accordance with rules to be adopted by the Board.
(h) Purchase of Credit by Surviving Spouse. A surviving spouse of a Plan Member may complete the purchase of Years of Service credit elected by the Plan Member.
(i) Prohibition of Double Benefits. No Plan Member may receive double benefits by receiving credit for Years of Service for the same periods of City service from the Los Angeles City Employees’ Retirement System and under the provisions of this Tier 4. Further, no Plan Member may transfer credit received from the Los Angeles City Employees’ Retirement System while employed in a capacity other than paramedic or civilian ambulance employee.
(j) Transfer of Released Liability. Upon the election by a Plan Member to acquire Years of Service credit, the released liability of the Los Angeles City Employees’ Retirement System shall be transferred to the Fire and Police Pension Plan – Tier 4. For the purposes of this subsection, the phrase Released Liability means the City’s share of the actuarially determined present value of benefits under the Los Angeles City Employees’ Retirement System as of the date of transfer.
(k) No Benefits Under Other Tiers. Department Members as defined in this section shall be identified as Tier 4 Members. Tier 4 Members shall not be entitled to a service retirement under any other Tier of this Fire and Police Pensions Plan for the same periods of service.
(l) Release of Liability. The Board shall have the authority to establish rules requiring a full and complete release from liability from members and their spouses upon the Plan Member’s election to transfer to Tier 4.
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 4, the following words or phrases shall have the meaning ascribed to them in this section, unless a different meaning is clearly indicated in the context.
(a) Member of the Fire Department. Member of the Fire Department means the Fire Chief and 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 which require the serving of probationary periods but not of original emergency or temporary appointments, to perform duties as a firefighter or as a paramedic or civilian ambulance employee 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, but such person shall be a member of the department only until his or her status as such shall be terminated by reason of retirement, resignation or discharge or for any other reason.
(b) Member of the Police Department. Member of the Police Department means the Chief of Police and 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 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 but such person shall be a member of the department only until his or her status as such shall be terminated by reason of his or her retirement, resignation or discharge or for any other reason.
(c) Plan Member. Plan Member means a person who is a Department Member and whose pension rights and benefits are governed by this Tier 4.
(d) Qualified Surviving Spouse. Qualified Surviving Spouse means a person who is the widow or widower of a deceased Plan Member or Retired Plan Member and who has been married (1) to the Plan Member for at least one year prior to the date of his or her nonservice-connected death while a Plan Member, or (2) to the Plan Member as of the date of his or her service-connected death while a Plan Member, or (3) to the Retired Plan Member for at least one year prior to the effective date of his or her retirement upon a service pension or upon a nonservice-connected disability pension pursuant, respectively, to Section 1604 or Section 1606(b), or (4) to the Retired Plan Member as of the effective date of his or her retirement upon a service-connected disability pension pursuant to Section 1606(a).
(e) Minor Child. Minor Child means a person who is a child or an adopted child of a deceased Plan Member or a Retired Plan Member but such person shall be a Minor Child only until such person shall attain the age of 18 years or shall marry, whichever shall be earlier.
A person may further qualify for the benefits provided for a Minor Child under the provisions of this Tier 4 until he or she reaches the age of 22 years if such person is enrolled in school on a full-time basis as determined by the Board but such person’s marriage terminates entitlement to the benefits of a Minor Child.
(f) Dependent Child. Dependent Child means a person who is a child of a deceased Plan Member or a deceased Retired Plan Member, 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 Plan Member or Retired Plan Member, from earning a livelihood for any cause or reason whatsoever, but such person shall be a Dependent Child only until he or she shall cease to be disabled from earning a livelihood. Should disability cease before the age of 22 years, the limitations set forth in subsection (e) shall be applicable.
(g) Dependent Parent. Dependent Parent means a person who is a parent of a deceased Plan Member or a deceased Retired Plan Member and to or for whom such deceased Plan Member or deceased Retired Plan Member, during at least one year immediately preceding his or her death, contributed one-half or more of such Dependent Parent’s necessary living expenses and who is unable to pay such expenses without the receipt of a pension but such person shall be a Dependent Parent only until he or she shall be able to pay his or her necessary living expenses.
(h) Length of Service Pay. Length of Service Pay means any additional gross monthly pay which, by reason of length of service, shall be provided by ordinance.
(i) Special Pay. Special Pay means any additional gross monthly pay which, by reason of assignment to perform special duties other than hazardous duties, shall be provided by ordinance.
(j) Hazard Pay. Hazard Pay means any additional gross monthly pay which, by reason of assignment to perform helicopter duties, two-wheel motorcycle duties or any other hazardous duties shall be provided by ordinance.
(k) Assignment Pay. Assignment Pay means any additional gross monthly 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 thereof within the Plan Member’s permanent rank, shall be provided therefor by ordinance.
(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 Plan Member was a Department Member of the Fire Department or of the Police Department, or of both and whether prior or after his or her becoming a Plan Member and subject to the limitations contained in Section 1600 of this Tier 4:
(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 under any Tier of the Fire and Police Pension Plans, provided, however, that he or she was or shall be restored to active duty as a Department Member and did or shall perform his or her duties as such for at least one year prior to again retiring or being retired pursuant to this Tier 4, 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 or her prior to such restoration. The restored Plan Member, upon completing one Year of Service following restoration, shall be eligible for such credit only to the extent that the length of service following restoration matches the period the disability pension was received; but upon completing three years of restored service, the restored Plan Member is eligible for credit for the entire period the disability pension was received; and provided further that a period during which a Plan Member was on a nonservice-connected disability pension may only be counted toward his or her Years of Service if the Plan Member makes contributions therefor at the rate provided in Section 1614 of this Tier 4 in accordance with the rules to be adopted by the Board;
(3) 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 as provided by general law on account of any injury or illness arising out of and in the course of employment but such period shall be made a part of the Plan Member’s Years of Service only if the Plan Member has made contributions to the Fire and Police Pension Plan in the manner prescribed by Board rule;
(5) is or shall become entitled pursuant to any ordinance of the City providing compensation for injury on duty; and
(6) had served as a member of the Fire and Police Pension System - Tiers 1 or 2 of this Article, without having become eligible to service retirement benefits but such prior service as a member under provisions of Tiers 1 or 2 does not entitle the Plan Member to a refund of contributions made on account of such previous service.
A Plan Member who has previously been a Plan Member and who has ceased to be such by virtue of his or her resignation or discharge and who subsequently again becomes a Plan Member, shall be entitled to service credit only if he or she has first redeposited with interest, any Plan Member contributions previously withdrawn by him or her, in the manner provided by the Board.
(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 such Partial Year of Service shall be calculated from the end of the Plan Member’s last completed Year of Service to the end of the payroll period immediately prior to the date of his or her retirement and shall be counted as part of a Plan Member’s Years of Service for his or her retirement upon a service pension hereafter granted or for a pension hereafter granted to his or her Qualified Surviving Spouse, Minor Child or children, Dependent Child or children or Dependent Parent or parents if he or she hereafter shall die while upon a service pension hereafter granted or while eligible for a service pension.
(o) Final Average Salary. Final Average Salary means an amount equivalent to a monthly average of salary actually received during any 12 consecutive months of service as a Plan Member as designated by the Plan Member. In the absence of such designation, the last 12 consecutive months preceding the date upon which retirement would become effective shall be used as the basis for the calculation of Final Average Salary.
For Plan Members employed as paramedics or civilian ambulance employees who have formerly been members of the Los Angeles City Employees’ Retirement System, and who, pursuant to the provisions of Section 1600 of this Tier 4 have become Plan Members, the determination of Final Average Salary shall include periods of City service for which such Plan Members have elected to acquire Years of Service credit by transfer of their contributions from the Los Angeles City Employees’ Retirement System to the Fire and Police Pension Plan – Tier 4. If a Plan Member should die before having made such election, his or her surviving spouse may make the election in place of the Plan Member.
For the purposes of determining Final Average Salary, periods during which the Plan Member receives less than full salary on account of injury or illness, pursuant to any applicable ordinance of the City, shall be included in the calculation of Final Average Salary based upon the salary, including any Length of Service Pay, Special Pay, Assignment Pay or Hazard Pay, the Plan Member would have received but for the injury or illness.
Included in the calculation of Final Average Salary shall be Length of Service Pay, Special Pay, Assignment Pay and Hazard Pay actually received during the 12 consecutive months used to determine Final Average Salary. To the extent that Hazard Pay was not received during all or any part of the 12 consecutive months used to determine Final Average Salary, then it shall be included in the calculation of Final Average Salary only if the Plan Member retires at the same rank as that occupied by him or her at a time when Hazard Pay was received during a period or periods other than the 12 months used to determine Final Average Salary, and for each such completed 12 month period during which the Plan Member served at that rank and received Hazard Pay, he or she shall be entitled to have included in the Final Average Salary 10% of the Hazard Pay which would have been payable had the hazardous duty been performed during the period for which the Final Average Salary is calculated except the total amount includable in the Final Average Salary for Hazard Pay may not exceed 100% of the amount the Plan Member would have received had he or she been entitled to Hazard Pay during the entire 12 month period utilized in the calculation of Final Average Salary.
Overtime compensation or payments of money to the member not designated as salary by an ordinance of the City shall not be considered for purposes of calculating Final Average Salary.
Notwithstanding any of the foregoing, if a Retired Plan Member were to be restored to active duty as a Department Member and thereby again were to become a Plan Member and if he or she again were to retire or to be retired without having performed his or her duties for at least one 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 or her prior to such restoration, the Final Average Salary which shall be applicable to his or her later retirement shall be the Final Average Salary which had been applicable to his or her previous retirement.
Should a Plan Member not have completed 12 consecutive months of service as a Plan Member, then and in that event only shall the Final Average Salary be calculated as a monthly average of all consecutive calendar months completed, and, if the Plan Member has completed less than one month of total service as a Plan Member, the salary actually received shall be used to calculate its monthly equivalent.
The following provision shall be effective for Plan Members who retire on or after July 1, 2000 from the Fire Department while holding a rank no higher than Captain or from the Police Department holding a rank no higher than Lieutenant. If Hazard Pay was not received during all or any part of the 12 consecutive months used to determine Final Average Salary, then an amount equivalent to 10% of the Hazard Pay received at the time of the termination of the last assignment to hazardous duties for each year in the aggregate of the assignment to hazardous duties shall be added to the Final Average Salary, not to exceed ten years in the aggregate. The total amount of Hazard Pay included in Final Average Salary may not exceed 100% of the amount the Plan Member would have received had the Plan Member been entitled to Hazard Pay during the entire 12 month period utilized in the calculation of Final Average Salary.
(a) Normal Retirement. Any Tier 4 Member with 20 years of service or more shall be retired by order of the Board from further active duty as a Department Member either upon the filing of his or her written application or upon the filing of a written request by or on behalf of the head of the department in which he or she 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 Plan Member to a disability pension pursuant to Section 1606, and the Board, if it shall so determine, shall state the cause or reason in its order retiring such Plan Member.
(b) Includable Years of Service. For Tier 4 Members, Years of Service shall include prior service covered under any other Tier of the Fire and Police Pension Plan.
(c) Physical Examination for Employees Age 70 and Over. After a Tier 4 Member has attained the age of 70 years, he or she shall annually submit to an examination by a regularly licensed, practicing physician selected by the head of his or her department who shall render a written report to such department and to the Board as to whether or not the Plan Member is physically and mentally fit to continue his or her duties as a Department Member. If the Plan Member is found by the Board not to be physically or mentally fit to so continue his or duties, he or she shall be retired effective the first day of the calendar month next succeeding that month in which the physician’s report is received by the Board.
(d) Pension Amount. A pension payable pursuant to the provisions of this section shall be paid monthly for life in an amount which shall be equal to 2% of Final Average Salary per Year of Service for up to 20 Years of Service; and for each additional year of service after 20 years, 3% of Final Average Salary per year but the maximum percentage of Final Average Salary payable, regardless of length of service, shall be 70% of such Final Average Salary.
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