A member who is not represented by an employee union, or who is represented by an employee union which has entered into a written agreement with the City to provide for the election specified herein, may irrevocably elect to make voluntary additional contributions (Additional Contributions) to the member’s tier of the Fire and Police Pension Plan by salary deduction at the rate of 2% of the member’s regular bi-weekly base salary (as distinguished from pay actually received) in order to support the City’s ability to fund retiree health benefits. These Additional Contributions shall be deposited into each such member’s individual contribution account and shall be treated for any and all purposes the same as the member’s regular contributions to the Fire and Police Pension Plan. These Additional Contributions shall be paid by the member on a post-tax basis unless and until the Internal Revenue Service rules that such contributions may be tax-deferred through a reduction in wages pursuant to the provisions of Sections 4.1505 through 4.1509 of this Code.
Once a member irrevocably elects to make these Additional Contributions, the member shall continue to make such Additional Contributions until the member has done one of the following, whichever is earliest, at which time the member’s obligation to make further Additional Contributions shall terminate: (i) made such Additional Contributions for 25 years, or (ii) retired under the provisions of Sections 1408, 1412(a), 1412(b), 1504, 1506(a), 1506(b), 1604, 1606(a), or 1606(b) of the Charter or Sections 4.2004, 4.2006(a), or 4.2006(b) of the Los Angeles Administrative Code, or (iii) terminated participation in the City’s Deferred Retirement Option Plan (DROP) pursuant to Section 4.2105 of the Los Angeles Administrative Code. In consideration for such Additional Contributions being made for the period specified above, each such member and the member’s survivors shall have a vested right to receive the retiree health benefits that were provided in this Chapter on July 1, 2011, and to receive the maximum amount of annual increases in subsidies or reimbursements for retiree health benefits in all subsequent years thereafter as authorized in this Chapter on June 30, 2011, provided that all conditions of eligibility prescribed in this Chapter are satisfied. The freeze established in Section 4.1166(a) of this Chapter shall not apply to these members and their survivors.
The right to make the irrevocable election provided in this Section 4.1167 shall be limited to a 45-day opt-in period, except as required by applicable law or as otherwise provided below. In order to make such irrevocable election, a member must file with the Department of Fire and Police Pensions (LAFPP) an election form prescribed by the LAFPP. Based upon input from the Office of the City Administrative Officer (CAO), the LAFPP shall establish the 45-day period during which members’ election forms may be accepted. If a member does not file the election form within the 45-day period, the member is assumed to have irrevocably elected to not make the Additional Contributions and the freeze established in Section 4.1166 of this Chapter shall apply to the member and the member’s survivors.
The CAO shall establish a Dispute Resolution Committee (DRC) to review member requests to make an election after the 45-day period. The LAFPP shall have no authority to decide whether or not to accept late election forms after the close of the 45-day period (a late election form) and shall refer members to the DRC for that purpose. The DRC may approve a member’s request to irrevocably elect to make the Additional Contributions only if the DRC determines that the member did not timely elect to make the Additional Contributions due to a personal hardship that occurred outside of the opt-in period. The DRC’s decision to approve or deny a member’s request shall be final and conclusive. If the DRC approves the member’s request, the CAO shall so advise the LAFPP in writing, whereupon the LAFPP shall accept the member’s late election form. The Additional Contributions shall commence after the DRC’s approval of the late election form, and the LAFPP shall be authorized to collect back contributions as determined by the DRC in its sole discretion and communicated in writing to the LAFPP by the CAO. The DRC is not authorized to allow a member to revoke the member’s irrevocable election.
The City Council, on a Motion that is adopted by a two-thirds majority, may authorize the LAFPP to conduct additional opt-in periods during which members shall have the right to make the irrevocable election provided in this Section.
SECTION HISTORY
Added by Ord. No. 181,893, Eff. 10-11-11.
Amended by: Second Para., Ord. No. 183,163, Eff. 8-8-14.