(a) The City of Los Angeles (CITY) and County of Los Angeles (COUNTY) have agreed to enter into an “Agreement For Retiree Health Insurance Reciprocal Subsidy Credit for County General and City Civilian Retirement Members” (Agreement) that is subject to amendment or termination as specified in the Agreement. The Agreement provides a reciprocal health insurance subsidy credit for retiree health insurance for certain retirees of the Los Angeles City Employees’ Retirement System (LACERS) and the Los Angeles County Employees Retirement Association (LACERA). Accordingly, the following provisions, substantially as contained in the Agreement, are incorporated in the CITY’s Reciprocal Subsidy Credit Program;
(1) COUNTY agrees that all general members of LACERA who retire from COUNTY service on or after the effective date of the Agreement may receive reciprocal health insurance subsidy credit for eligible retirement service with the CITY in calculating the amount of the COUNTY contribution toward the premium for the COUNTY health insurance program for retired general members (or their eligible dependents or survivors) administered by LACERA pursuant to an agreement between COUNTY and LACERA dated April 20, 1982, as amended, provided such LACERA general members:
(A) were previously employed by CITY;
(B) were members of LACERS;
(C) receive full or limited reciprocal retirement benefits as defined below in (E)(i) and (ii) of this subdivision through agreement with the California Public Employees’ Retirement System (PERS) from LACERA based on such prior CITY employment,
(D) meet the requirements set forth in subdivisions (3) through (5) below, and
(E) for purposes of this subdivision:
(i) “full reciprocal retirement benefits” applies to persons who transferred within six months from the CITY to the COUNTY on or after July 14, 1997;
(ii) “limited reciprocal retirement benefits” applies to persons who transferred within six months from the CITY to the COUNTY prior to July 14, 1997; and
(iii) “eligible retirement service” with the CITY shall be limited to service otherwise recognized by the CITY under the CITY’s retiree health insurance subsidy credit program.
(2) CITY agrees that all members of LACERS who retire from CITY service on or after the effective date of the Agreement may receive reciprocal health insurance subsidy credit for eligible retirement service with the COUNTY in calculating the amount of the CITY contribution toward the premium for the CITY health insurance program for retired members (or their eligible dependents or survivors) administered by LACERS, provided such LACERS members:
(A) were previously employed by COUNTY;
(B) were general members of LACERA;
(C) receive full or limited reciprocal retirement benefits as defined below in (E)(i) and (ii) of this subdivision through agreement with PERS from LACERS based on such prior COUNTY employment,
(D) meet the requirements set forth in subdivisions (3) through (5) below; and
(E) for purposes of this subdivision:
(i) “full reciprocal retirement benefits” applies to persons who transferred within six months from the COUNTY to the CITY on or after July 14, 1997;
(ii) “limited reciprocal retirement benefits” applies to persons who transferred within six months from the COUNTY to the CITY prior to July 14, 1997; and
(iii) “eligible retirement service” with the COUNTY shall be limited to service otherwise recognized by the COUNTY under the COUNTY’S retiree health insurance subsidy credit program.
(3) The Agreement shall apply to each COUNTY and CITY retiree who is eligible for reciprocal health insurance subsidy credit for retiree health insurance under the Agreement if, at the time of retirement, such retiree has eligible retirement service with the CITY and eligible retirement service with the COUNTY that, in the aggregate, totals at least ten (10) years.
(4) A retiree receiving reciprocal health insurance subsidy credit for retiree health insurance under the Agreement must elect the health insurance program of the party (COUNTY or CITY) with which the retiree has the most eligible retirement service. The retiree may, instead, elect to receive health insurance benefits from LACERA if the retiree has a minimum of eight (8) years of uncombined eligible retirement service with the COUNTY or from LACERS if the retiree has a minimum of eight (8) years of uncombined eligible retirement service with the CITY. The retiree’s election shall be irrevocable and is binding upon the retiree’s eligible dependents or survivor.
(5) An eligible survivor of a deceased active member shall be entitled to elect to receive reciprocal health insurance subsidy credit for retiree health insurance under the Agreement at such time as the member would have become eligible to receive reciprocal health insurance subsidy credit for retiree health insurance under the Agreement.
(6) Each COUNTY or CITY retiree or eligible survivor of a retiree or deceased active member retains the right to elect health insurance benefits otherwise provided by LACERA or LACERS in lieu of electing reciprocal health insurance subsidy credit for retiree health insurance under the Agreement. Such election shall be irrevocable.
(7) In no event shall a COUNTY or CITY retiree (or the retiree’s eligible dependents or survivor) be entitled to participate in both COUNTY and CITY health insurance programs provided by LACERA or LACERS based on the provisions of the Agreement, or to receive duplicate health insurance subsidy credit for service recognized by the COUNTY or CITY. Nothing in the Agreement shall be construed to confer benefits to any person who does not qualify for health insurance provided by LACERA or LACERS.
(8) The Agreement shall not extend reciprocal health insurance subsidy credit for retiree health insurance to safety members of LACERA or to members of any CITY retirement systems other than LACERS.
(9) The provisions of the Agreement shall be applicable commencing the later of:
(A) the date the Agreement is executed;
(B) the date the retiree meets the conditions set forth in the Agreement; or
(C) the date the retiree or eligible survivor of a deceased active member makes application to LACERA for the reciprocal health insurance subsidy credit for retiree health insurance provided for in the Agreement, or to LACERS for the reciprocal health insurance subsidy credit for retiree health insurance provided for in the Agreement.
(10) In no event shall the Agreement be construed to require any expenditure on the part of COUNTY or CITY for any period prior to the date a retiring employee or eligible survivor of a deceased active member makes application to LACERA or LACERS for the reciprocal health insurance subsidy credit for retiree health insurance provided for in the Agreement.
(11) The COUNTY and CITY agree that the cost of reciprocal health insurance subsidy credit for retiree health insurance provided for in the Agreement will be reassessed at least every five (5) years. The cost of these valuations will be borne equally by the COUNTY and CITY. The Agreement may be amended at any time upon mutual consent of the COUNTY and CITY to maintain a de minimis cost to both COUNTY and CITY.
(12) The Agreement may be terminated by either the COUNTY or CITY, in its sole discretion, at any time upon serving the other party with written notification. The effective date of termination shall be one year from the date of the termination letter.
(13) In the event of amendment or termination of the Agreement, each retiree or eligible survivor currently receiving reciprocal health insurance subsidy credit for retiree health insurance under the Agreement as of the date of such amendment or termination will continue to receive the same subsidy credit in calculating the amount of the COUNTY or CITY contribution toward the retiree’s or eligible survivor’s health insurance premium.
(14) In the event of amendment or termination of the Agreement, COUNTY or CITY employees in active service as of the date of such amendment or termination shall be eligible upon retirement to receive reciprocal health insurance subsidy credit for retiree health insurance under the Agreement as provided as of the earliest date of membership in either LACERA or LACERS, provided that:
(A) such employee has eligible retirement service with COUNTY and with CITY as of the date the program is amended or terminated, and
(B) such employee meets all other requirements of the Agreement, or of the Agreement as amended, as of the date the employee retires.
(b) The Board of Administration of the Los Angeles City Employees’ Retirement System shall administer the Reciprocal Subsidy Credit Program for the CITY and shall make any changes to the Reciprocal Subsidy Credit Program that are necessitated due to Los Angeles City Council approved amendments or termination of the Agreement between the CITY and the COUNTY.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.