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Sec. 1718.  Provision of Certain Subsidy Payments by Ordinance.
 
   (a)   Purpose of this Section.  It is the purpose of this section to enable the City Council to provide by ordinance a program or programs whereby persons receiving pensions pursuant to the provisions of Tier 6 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 section.
 
   (b)   Mode of Adoption of Ordinance.  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 thereon.  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.  Council shall, prior to approval of the ordinance, be advised in writing by an enrolled actuary as to the cost of the proposed benefits.
 
   (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)   Administration of Subsidy Program.  Any subsidy program adopted by ordinance pursuant to this section shall be administered by the Board.  In furtherance thereof, the Board shall have the authority to contract for suitable programs as defined in subsection (a), to be made available to retired members or other beneficiaries, and shall have the power to adopt such rules as it deems necessary to administer such programs.  Notwithstanding the foregoing provisions, the Board may authorize the Personnel Department to administer any program or part thereof established by ordinance pursuant to the provisions of this section, but the Board shall reimburse the General Fund of the City of Los Angeles for all necessary expenses incurred by the Personnel Department in 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.
 
   (f)   Subsidies for Tier 6 Disability Retirees With Less Than Ten Years of Service.  The Council, by ordinance adopted pursuant to this section, shall provide a health subsidy at age 55 for Tier 6 Plan Members who retire on service-connected disability pensions with less than ten Years of Service.  Such ordinance shall be adopted by the Council no later than June 30, 2011.
 
   (g)   Health Insurance Premium Subsidy for Tier 6 to be Provided on the Same Terms and Conditions as for the Other Tiers.  In consideration of the additional 2% contribution that Tier 6 members are making, pursuant to Section 1714(a)(2), to provide additional employee funding for service pensions in order to support the City's ability to fund retiree health benefits, the City Council, by ordinance adopted pursuant to this section, shall provide a health insurance premium subsidy for Retired Tier 6 Plan Members on the same terms and conditions that apply to retired members of other Tiers as of the effective date of the Charter amendment establishing Tier 6.  Such ordinance shall be adopted by the Council no later than June 30, 2011. The rights granted in this Subsection (g), however, may include appropriate limitations for employees receiving subsidies from other City plans as provided in Subsection (c) herein.
 
SECTION HISTORY
 
Added by Charter Amendment G § 1, approved March 8, 2011, effective April 8, 2011.