Sec. 4.1095. Benefits for Employees Upon Their Change of Membership from the Water and Power Employees’ Retirement Plan to Membership in the Los Angeles City Employees’ Retirement System and for Members Who Change Membership from the Los Angeles City Employees’ Retirement System to the Water and Power Employees’ Retirement Plan.
(a) Definitions. For the purpose of this section, the Los Angeles City Employees’ Retirement System will be referred to as “LACERS” and the Water and Power Employees’ Retirement Plan as “WPERP.” Members of the Los Angeles City Employees’ Retirement System will be referred to as “System Members,” and the members of the Water and Power Employees’ Retirement Plan will be referred to as “Plan Members.”
City Service or Service shall mean only those periods during which a member received compensation from the City as an employee and for which the member made contributions to either the LACERS or the WPERP.
With respect to all other terms used in this section the definitions contained in Articles 1 and 2 of this chapter shall be applicable unless a different meaning is clearly indicated by the context.
(b) Membership in the LACERS. A Plan Member shall become a system member immediately upon changing employment from the Department of Water and Power to such other office, class, or position established by the City of Los Angeles as would make him or her eligible for membership in the LACERS; provided, however, that there is no break in service of more than seven (7) calendar days. If there is a break in service of more than seven (7) calendar days, the former Plan Member shall become a System Member on the date that his or her entrance into such employment with the City of Los Angeles makes him or her eligible to become a System Member.
If a Plan Member participates in the reciprocal retirement benefit arrangement established in this Section, he or she shall become a member of Tier 1 upon becoming a System Member, provided that his or her employment with the DWP commenced prior to July 1, 2013, and there is no break in service of more than seven (7) calendar days, as provided in the preceding paragraph. If a Plan Member becomes a System Member on or after July 1, 2013, he or she shall become a member of Tier 2 upon becoming a System Member if (1) he or she did not commence employment with the DWP prior to July 1, 2013, (2) he or she commenced employment with the DWP prior to July 1, 2013, but there was a break in service of more than seven (7) calendar days upon the change in employment from the DWP, or (3) the system member elects not to participate in the reciprocal retirement benefits arrangement as provided in Subsection (d) herein.
Membership shall entitle the system member to all benefits for retirement, disability and death for which he or she would qualify based upon his or her total service in both the LACERS and the WPERP.
(c) Contributions of System Members Who Transfer from the Department of Water and Power. A Plan Member who becomes a System Member shall contribute to LACERS at the rate provided in Tier 1 or Tier 2, as applicable.
(d) Election Not to Participate in the Reciprocal Retirement Benefits Arrangement. A System Member may, at any time prior to the expiration of a seven (7) month period following a change of employment from the Department of Water and Power, elect, in writing, as prescribed by the Board of Administration of the LACERS, to commence membership with the LACERS as if such member had no previous City service if (a) the member withdraws his or her contributions from the WPERP or (b) leaves his or her contributions on deposit with the WPERP in order to qualify for a deferred retirement allowance from WPERP in the future.
Notwithstanding the seven-month period specified above, a System Member who changed employment on a protective leave status pursuant to Civil Service Rule 7.7 or Charter Section 1001(e), as applicable, from the Department of Water and Power (DWP) to the City and qualified for reciprocity on or before December 31, 2013, and who continues to be employed by the City on such protective leave status as of December 31, 2013, shall have until thirty (30) days following the termination of his or her protective leave or until the expiration of a seven-month period from his or her entry into City service, whichever occurs later, to elect in writing not to participate in the reciprocal retirement benefits arrangement provided in this section.
(e) Transfer of Members’ Accumulated Contributions and Service Credit between WPERP and LACERS. A member’s accumulated contributions in the WPERP will be transferred from the WPERP to the LACERS in accordance with necessary administrative procedures to be developed between the WPERP Board of Administration and the LACERS Board of Administration, unless the System Member has made one of the elections provided in Subsection (d) of this section.
In the case of a System Member who becomes a Plan Member by virtue of his or her change of employment to the Department of Water and Power, and who has not made an election pursuant to the terms of the WPERP, the LACERS upon an appropriate demand for such transfer by the WPERP, shall pay to the WPERP the former System Member’s accumulated contributions to the LACERS.
(f) Treatment of Uncompleted Service Purchases. System Members who, at the time of their transfer to membership in the LACERS, have commenced making service purchases with the WPERP for service, but have not completed payment of the obligation undertaken by them, may complete the payment thereof with the LACERS at the same rate that was to be payable by them pursuant to the arrangements with WPERP to make such service purchase.
(g) Continuous Service. Continuous service to determine a System Member’s eligibility for service or disability retirement shall include City service as defined in this section, and not as defined in Sections 4.1001 or 4.1051; provided however, that the System Member has not exercised one of the elections provided in Subsection (d) of this section.
(h) Family Death Benefit Plan. The phrase “Death Benefit Plan Service” as used in Section 4.1090 of this Chapter, shall, in the case of a Plan Member who transfers to the LACERS, include such City service as a Plan Member for which the System Member has made back contributions in accordance with the requirements set forth in Section 4.1090(i) of this Chapter.
A System member, in order to be eligible to make back contributions, must not have exercised one of the elections provided in Subsection (d) of this section.
The mode of paying such back contributions in a lump sum or on an installment basis shall be decided by the Board of Administration of the LACERS, which Board shall, within a reasonable time after the effective date of this section, adopt appropriate rules for the implementation of the provisions of this subsection.
(i) Prohibition Against Dual Benefits. Benefits provided to System Members as a result of the enactment of this section shall not be in addition to benefits provided by the WPERP on account of the occurrence or non-occurrence of any contingency or event which would, under the provisions of the WPERP, generate entitlement to a benefit or benefits.
(j) Application of this Section to Persons Who Were System Members on February 15, 1980; Waiver by LACERS of Funds from WPERP and the General Fund. Any person who was a system member on February 15, 1980, who has been a Plan Member of the WPERP prior to his membership in LACERS, and who has not transferred or withdrawn his accumulated contributions from WPERP, shall be entitled to the benefits herein described upon making application for such benefits as provided herein, provided however, that no funds shall be provided by WPERP or the General Fund of the City in excess of a Plan Member’s accumulated contributions.
(k) Reciprocity of Benefit Provisions and Conditions Affecting this Section. It is the intent and purpose of this section to provide, or help to provide, portability between the LACERS and the WPERP. The achievement of complete portability of benefits is dependent upon appropriate action by the governing body of the WPERP. Should the implementation of any provisions of this section be possible only if some specific action is taken by the WPERP, then, and as to such provisions only, the effect of this section shall be suspended until appropriate action has been taken by the WPERP.
(l) Suspension of the Reciprocal Retirement Arrangement. Employees who change employment from the DWP to other positions with the City that make them eligible for membership in LACERS on or after January 1, 2014, shall not be eligible to participate in the reciprocal retirement arrangement established in this section. Reciprocity on the terms and conditions set forth in this section shall only be provided to those employees who changed employment from the DWP to other positions with the City that made them eligible for membership in LACERS prior to January 1, 2014.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
Amended by: Subsec. (d) amended and Subsec. (l) added, Ord. No. 182,824, Eff. 12-19-13.