Sec. 4.1001. Definition of Terms.

4.1029 Provision Required to Comply with Internal Revenue Code Section 401(a)(37) and the Heroes Earnings Assistance and Relief Tax Act of 2008 § 104(a).

4.1030 Provision Required to Comply With Internal Revenue Code Section 401(a)(9).

4.1030.1 Provisions Required for Retirement System Compliance with the Internal Revenue Code.

4.1031 Former Spouse or Domestic Partner's Option to Elect a Life Annuity.

4.1032 Separate Account Option in Legal Separations or Dissolutions.

4.1033 Early Retirement Incentive Program.

4.1034 Separation Incentive Program.

Sec. 4.1000. Statement of Purpose.

This Article sets forth the benefits and conditions of entitlement that have been established for persons who are members of Tier 1 of the Los Angeles City Employees’ Retirement System (LACERS) and for their beneficiaries. These benefits may be modified and the conditions of entitlement changed by ordinance as authorized in Section 1168 of the City Charter.

It is also the purpose of this Article to demonstrate the intent of the City of Los Angeles, through its governing bodies, to promote the improvement of personnel management and employer-employee relations by enacting from time to time such ordinances as may legally be adopted under the authority of Section 1168 of the City Charter whenever Memorandums of Understanding and other agreements, duly executed by all parties thereto and approved by the City Council, require by their terms presentation to the City Council of ordinances changing retirement benefits or conditions of entitlement thereto.

The Retirement System is established, as may be amended from time to time, as a qualified defined benefit plan intended to satisfy the provisions of Section 401(a) of the Internal Revenue Code as applicable under Section 414(d) of the Internal Revenue Code for a governmental plan and such other applicable provisions of the Internal Revenue Code, Treasury regulations, or other guidance.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Third para. added, Ord. No. 183,456, Eff. 3-4-15.

Sec. 4.1001. Definition of Terms.

(a) For the purposes of Article 1 of Chapter 10 and Article 2 of Chapter 11 of Division 4 of the Los Angeles Administrative Code, the following words and phrases shall have the meaning ascribed to them in this Section unless elsewhere defined:

Accumulated Contributions. The total of the amounts paid into the Retirement Fund by the Member and any regular interest credited to the Member’s account, as provided in Charter Section 1162(b).

Airport Peace Officer Member. A Member of Tier 1 of the Retirement System who: (i) while a City employee and on their retirement date was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1 and was appointed to that position before January 7, 2018; or (ii) on their retirement date was employed by the Fire Department as a firefighter, was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1, and served as a firefighter for the Fire Department from the date of appointment until the date of retirement. An Airport Peace Officer Member shall include an individual who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8). Notwithstanding anything in this subsection or elsewhere in this Code to the contrary, an Airport Peace Officer Member shall be ineligible for any enhanced benefits under Sections 4.1007(a), 4.1008.1 and 4.1010.1, and shall revert to status as a Tier 1 Member, if LACERS did not receive a lump sum payment of $5,700, by cashier’s check, on a post-tax basis, before January 8, 2019, or prior to the Member’s retirement date, whichever was earlier.

Airport Peace Officer Former Member. A former Member of Tier 1 of the Retirement System who was eligible for, and elected to, remain in LACERS rather than transfer to LAFPP under Charter Section 1704 and LAAC Section 4.1002(e) and who: (i) while a City employee and on the date that they separated from City service or ceased to be a Member of the Retirement System was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1 and was appointed to that position before January 7, 2018; or (ii) on the date they separated from City service or ceased to be a Member of the Retirement System was employed by the Fire Department as a firefighter, was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1, and served as a firefighter for the Fire Department from the date of appointment until the date of separation. Notwithstanding anything in this subsection or elsewhere in this Code to the contrary, an Airport Peace Officer Former Member shall be ineligible for any enhanced benefits under Sections 4.1007(a), 4.1008.1 and 4.1010.1, and shall revert to status as a former Tier 1 Member or Tier 1 Member, as applicable, if LACERS did not receive a lump sum payment of $5,700, by cashier’s check, on a post-tax basis, before January 8, 2019, or prior to the Member’s retirement date, whichever was earlier.

Airport Peace Officer Retired Member. A Member of Tier 1 of the Retirement System who, on their retirement date: (i) was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1, and was appointed to that position before January 7, 2018; or (ii) was employed by the Fire Department as a firefighter, and was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1; and (iii) had paid to LACERS the $5,700 mandatory additional contribution payment required by Section 4.1002(e)(2). An Airport Peace Officer Retired Member shall include an individual who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8).

Annuity. Payments for life derived from the Accumulated Contributions of a Member as provided in this Article.

Base Amount. That portion of a Retirement Allowance resulting if cost of living amount is deducted therefrom.

Beneficiary. A person entitled to receive a benefit from the Retirement System.

Board of Administration or Board. The Board of Administration for the Los Angeles City Employees’ Retirement System established in Charter Section 1104(b).

City Service or Service. Only those periods during which a Member received compensation from the City as an employee or during which the Member not only received Workers’ Compensation benefits (Div. IV, Labor Code) for temporary disability on account of any injury or illness arising out of and in the course of employment with the City, but for which the Member also made contributions to the Retirement Fund as provided in Charter Section 1162. Notwithstanding the foregoing, a Member shall be entitled, at the time of death or retirement, to receive credit for their years of service from the date such Member entered employment with the City of Los Angeles in a capacity that would entitle the Member to membership in the Retirement System.

City Service Credit or Service Credit. The time component of the formula used by the Retirement System for purposes of calculating benefits pursuant to applicable Los Angeles Administrative Code and Board Rules.

Compensation Earnable. The full salary, wage or compensation established for any position or office in City service for the particular period involved in any calculation required.

Continuous Service. Uninterrupted City Service except that discontinuance of such service of a Member for any cause whatever, followed by re-entrance into City Service within three (3) years from the date of such discontinuance, shall not be considered as a break in the continuity of service.

Cost of Living Amount. That portion of a Retirement Allowance resulting from adjustments made pursuant to Section 4.1022.

Dependent Parent. A person whom the Board of Administration, upon investigation and after a hearing in the matter, shall find is the parent of a Member to or for whom the Member, during the last year of the Member’s service, contributed at least one- half the necessary living expenses.

Domestic Partner. A person who has formed a valid domestic partnership by filing a Declaration of Domestic Partnership with the Retirement System, as authorized in Section 4.1009 herein, or with the State of California, as authorized in Family Code Section 298.5, or a person who has established a legal union which was validly formed in another jurisdiction that is substantially equivalent to a domestic partnership, as provided in Family Code Section 299.2. Domestic Partner shall not include a person who has established a domestic partnership pursuant to any other authority, unless expressly otherwise provided in this Article. A partnership shall be established, for purposes of this Article, on the date of the filing with the Retirement System or state.

Employee. Every person in the employ or service of the City of Los Angeles in any capacity or rank whatever at a regular salary, wage or compensation, and regardless of whether the position held by any such person is classified as an office or employment.

Larger Annuity. The annuity funded entirely by the Member as provided in Section 4.1021.

Member or Tier 1 Member. An employee of the City of Los Angeles who meets the membership requirements contained in Section 4.1002 of this Article. Member, as used in this Article, shall mean a Member of Tier 1 unless otherwise specified. Notwithstanding the foregoing, a person who is no longer employed by the City, but who qualifies for reciprocity under Section 4.1096 and whose Tier 1 member contributions remain on deposit with the Retirement Fund may be considered to be a Member, but only to the limited extent necessary to comply with the reciprocity provisions contained in Section 4.1096.

Operative Date. Shall mean the “effective date”, unless a different date is specified by any ordinance adopted pursuant to the provisions of Charter Section 1168.

Public Safety Officer Member. The following definition shall apply only to Article 1 of Chapter 10 of the Los Angeles Administrative Code. A Member of Tier 1 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Member also shall include an Airport Peace Officer Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019 in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Public Safety Officer Former Member. The following definition shall apply only to Article 1 of Chapter 10 of the Los Angeles Administrative Code. A former Member of Tier 1 of the Retirement System who while a City employee and on the date that they separated from City Service or ceased to be a Member of the Retirement System, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Former Member also shall include an Airport Peace Officer Former Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019 in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Former Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Public Safety Officer Retired Member. The following definition shall apply only to Article 1 of Chapter 10 of the Los Angeles Administrative Code. A retired Member of Tier 1 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Retired Member also shall include an Airport Peace Officer Retired Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019 in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Retired Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Regular Interest. Interest credited to the individual account of each Member as provided in Charter Section 1162(b).

Reserve Basis. A system that provides for the accumulation and maintenance of a fund that will at all times be equal to the difference between the present value of the obligations assumed and the present value of the money to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of money with which they are to be paid.

Retirement Allowance or Allowance. An allowance granted under this Article, except for those allowances granted pursuant to Section 4.1010(a)(2), together with all subsequent adjustments thereto.

Retired Member or Retired Tier 1 Member. A former Member who is receiving a monthly benefit from Tier 1 of the Retirement System. A retired Member shall not be considered a Member for purposes of this Article and, if re-employed as authorized in Charter Section 1164, shall continue to be a retired Member.

Retirement Fund. The trust fund established for the Retirement System in Charter Section 1154.

Retirement System or System. The Los Angeles City Employees’ Retirement System (LACERS).

Spouse. A person who is a party to a valid marriage.

(b) Wherever the phrase “Final Compensation” is used in this Article, it shall, unless a different meaning is clearly indicated by the context, have the following meaning:

The final compensation of every member shall be calculated upon an annual compensation earnable of the member during the member’s last twelve (12) months of service or during any other twelve (12) consecutive months of service which the member shall designate.

Compensation which is to be included in Final Compensation shall be limited to base salary and regularly assigned bonuses or premium pay. Payments of money to be included in the calculation of Final Compensation are limited, prior to July 1, 2000, to payments designated as salary by an ordinance of the City or, effective July 1, 2000, to payments designated as salary by an ordinance of the City or a memorandum of understanding; all other payments of money not so designated shall not be included in the calculation of Final Compensation. Compensation which shall not be included in the calculation of Final Compensation shall include, but not be limited to, overtime, daily and other non-regularly assigned bonuses, reimbursements, car allowances, uniform allowances, payments in lieu of benefits or cash-out of benefits and other forms of compensation.

With respect to an employee who begins membership in the Retirement System after June 30, 1996, compensation taken into account in any Plan year may not exceed the annual compensation limits established under Internal Revenue Code Section 401(a)(17), as adjusted for increases in the cost of living in accordance with Internal Revenue Code Section 401(a)(17)(B).

(c) Whenever a reference is made in this Article to a specific section, such reference shall refer to a section contained in this Chapter, unless expressly indicated otherwise.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (a), Ord. No. 184,853, Eff. 4-6-17; Subsec. (a), Ord. No. 187,923, Eff. 7-9-23.

Sec. 4.1002. Membership in Tier 1.

(a) Membership Provision. Prior to July 1, 2013, every employee shall become a member of Tier 1 of the Retirement System on the first day of employment in a position with the City in which the employee is not excluded from membership pursuant to the provisions of Subsection (b) of this section. Beginning July 1, 2013, and ongoing, an employee shall only become a member of Tier 1 of the Retirement System on the first day of employment in a position with the City in which the employee is not excluded from membership pursuant to the provisions of Subsection (b) of this section if one of the following exceptions to Tier 2 membership applies:

(1) Former Tier 1 Member with Contributions on Deposit. A former Tier 1 member who returns to membership in the Retirement System on or after July 1, 2013, shall only return to membership in Tier 1 if the former member has pre-July 1, 2013, contributions that remain on deposit with the Retirement Fund on the date the former member begins City service in a position in which the former member again becomes eligible for membership in the Retirement System. In the event a former member’s pre-July 1, 2013, contributions have been forfeited to the Retirement Fund, the former member shall return to membership in Tier 1, provided that the former member is relieved from such forfeiture and said funds are returned to the former member’s individual account. Former members may not qualify for the exception provided in this paragraph by making back contributions or re-deposits of contributions after re-entry into City service.

(2) Tier 1 Disability Retirees Returned to Employment. A Tier 1 disability retiree who is returned to City employment on or after July 1, 2013, as provided in Section 4.1008(e) or (f), shall return to membership in Tier 1.

(3) Reciprocal Retirement Benefit Arrangement. If an employee of the City’s Department of Water and Power (DWP) participates in the reciprocal retirement benefit arrangement established in Section 4.1095, the employee shall become a member of Tier 1 upon becoming a member of the Retirement System, rather than Tier 2, provided that the employee’s employment with the DWP commenced prior to January 1, 2014, and there is no break in service of more than seven (7) calendar days, as provided in Section 4.1095(b). This exception shall not apply if the member elects not to participate in the reciprocal retirement benefits arrangement, as provided in Section 4.1095(d).

A member or former member of LACERS who, on or after January 1, 2014, became ineligible to participate in LACERS by reason of transfer (including promotion, displacement, reclassification, or any other employment status change) to the Department of Water and Power, whose accumulated LACERS contributions remained on deposit in the Retirement Fund, and who is also a current, former, or retired member of the Water and Power Employees’ Retirement Plan (WPERP), shall be considered for retirement eligibility purposes only to be a member or former member of LACERS at the time such member or former member applies for retirement or deferred service retirement, as applicable, from LACERS, and shall be entitled to have the member’s or former member’s service and/or service credit with LACERS as provided in LACERS plan provisions governing Tier 1 or Tier 3, as applicable. As used herein, “service credit” shall have the meaning ascribed to it under Section VII.F of the plan provisions governing WPERP Tier 2.

(4) Limited Term Retirement Plan. An elected official who was a member of the Limited Term Retirement Plan (LTRP) on June 30, 2013, and subsequently becomes a member of the Retirement System shall become a member of Tier 1, rather than Tier 2, provided that the elected official’s service as an elected official was continuous from June 30, 2013, until the date the elected official became a member of the Retirement System and all of the funds in the elected official’s individual account with the LTRP are transferred to the elected official’s member account with the Retirement System pursuant to the provisions of Section 4.1017(c)(1).

A City employee shall cease to be a member upon termination of employment. A City employee shall also cease to be a member if a change in the employee’s employment results in an exclusion from membership pursuant to the provisions of Subsection (b) of this section or if the employee’s membership has been terminated pursuant to the provisions of either Subsection (c) or (d) of this section. A former member who re-enters City employment or whose City employment changes on or after July 1, 2013, shall only return to membership in Tier 1 if the former member satisfies exception (1) to Tier 2 membership listed above.

(b) Exclusions from Membership. The following employees shall not be members of said Retirement System:

(1) Persons employed by the Board of Education or School District.

(2) Persons serving on any Board of Commissioners whose compensation consists of attendance fees per meeting attended.

(3) Members of the Fire and Police Pension Plans and members of the Water and Power Employees’ Retirement Plan; provided, however, that this exclusion shall not operate during any period of City service in which any such person is employed in any capacity which renders that person ineligible for current membership in said Plans. Nothing in this chapter shall be construed to prevent any person entitled to the payment of any benefit on account of service as a member of the Plans herein mentioned, from receiving payment on account of any benefit to which such person is entitled as a member of this Retirement System; provided, nevertheless, that no payment shall be made under provisions of this Chapter, for or on account of any period of service for which such person is entitled to receive or is receiving any benefit, under the Fire and Police Pension Plans or the Water and Power Employees’ Retirement Plan.

(4) Inmates of City institutions who are allowed compensation for such services as they are able to perform.

(5) Persons in City institutions principally for the purpose of receiving training but who receive compensation.

(6) Persons employed under contract for a definite period or for the performance of a particular special service.

(7) Persons employed only on call or for seasonal work.

(8) Any person employed on an intermittent, temporary, or part-time basis, unless the person is a member at the time the person commences to serve on such a basis, or unless the appointing authority certifies to the Board of Administration that the person’s employment is regular and continuous and will probably extend for at least one (1) year and require service for at least one-half the time required of employees in the same group or class of service on a full-time basis.

(9) Any officer of the City elected for a fixed term who files a written declaration of the officer’s desire not to become a member of the System within ninety (90) days next following the last day of the calendar month during which the first deduction on account of member contributions to the Retirement Fund is taken. When the declaration is filed, any contributions already taken attributable to the fixed term to which the officer was just elected, including interest thereon, shall be transferred to the officer’s account with the Limited Term Retirement Plan and said officer shall have no right to benefits from the System for any periods for which such contributions were taken. Provided that any officer who has filed such declaration may revoke it in writing and, upon filing the revocation with the Board of Administration, shall become a member of the System. In addition to persons elected for a fixed term as an officer of the City, any person appointed to fill a vacancy in an elected office for a fixed term, whether for the full remainder of such term or any portion thereof, may choose not to become a member of the System as provided in this paragraph and shall be considered an elected official of the City for purposes of participation in the Limited Term Retirement Plan.

Notwithstanding the foregoing, whenever any retired member of the System is elected as an officer of the City, the retired member shall not re-enter membership in the System, but shall instead become a participant in the Limited Term Retirement Plan, during which time the retired member shall continue to receive benefits as a retired member of the System.

(10) Any person undergoing training who will become a member of the Fire and Police Pension Plan upon completion of training.

(c) Transferred Employees Who Remain Members. Notwithstanding the provisions of Subsections (a) and (b) of this section, certain employees shall remain members of the Retirement System pursuant to the provisions of this subsection.

The Department of General Services is an Outside Agency as defined in Charter Section 1202(h). Members employed by the Department of General Services as sworn peace officer personnel whose positions may be transferred to the Los Angeles Police Department (LAPD) pursuant to a merger of police services authorized by the City Council shall, at the time of the transfer, become Transferring Employees as defined in Charter Section 1202(i) and for purposes of this subsection. The purpose of this subsection is to provide these Transferring Employees with the benefits provided by the Retirement System, in lieu of the benefits provided by the Fire and Police Pension Plan, pursuant to the authority provided in Charter Section 1216(b)(1).

Transferring Employees shall remain members of the Retirement System for so long as they continue in employment with the LAPD in any sworn position, except as otherwise provided in the following paragraph. In addition to continuing to be members during any period(s) of Academy training required in connection with positions held at the time of the transfer, Transferring Employees shall continue to be members of the Retirement System during any period(s) of academy training required to qualify for employment in any other sworn position with the LAPD, provided that they have not opted out of membership as provided in the following paragraph.

In the event that a Transferring Employee decides to transfer to a position with the LAPD that is not a sworn position transferred from the Department of General Services, such Transferring Employee may elect to opt out of membership in the Retirement System. In order to opt out of membership in the Retirement System, a member shall file a written opt out election form with the Retirement System, which election shall become effective on the date the Transferring Employee changes classifications and becomes eligible for membership in the Fire and Police Pension Plan or the Pension Savings Plan established in Chapter 16, Division 4 of this Code, as applicable. The Retirement System shall establish the period during which an opt out election form must be filed, which period shall be at least seven (7) days in length and shall end not later than the day before the date the member is scheduled to change classifications; failure to file an opt out election form within the period established by the Retirement System shall constitute an irrevocable election not to opt out of membership in the Retirement System. A member shall have seven (7) days from the date an opt out election form is filed to revoke the member’s election, after which the election shall be irrevocable. Once an election has become irrevocable, it shall not be revoked for any reason by anyone, including the Board, except in the following circumstance: If a Transferring Employee who has opted out and changed classifications should for any reason subsequently revert to a position that was transferred from the Department of General Services, the Transferring Employee shall be reinstated to membership in Tier 1 of the Retirement System. The provisions of this paragraph allowing a member, under specified conditions, to opt out of membership shall expire two (2) years from the effective date of this subsection, although a member who timely files an opt out form prior to expiration of the two-year period shall be allowed to opt out even if the member’s classification changes after expiration of the two-year period. The Board shall not have any authority to waive or extend any time limitation set forth in this paragraph.

Transferring Employees shall not become members of the Fire and Police Pension Plan, except as provided in the preceding paragraph. In the event that a Transferring Employee should terminate employment and thus cease to be a member of the Retirement System, the Transferring Employee’s status as a Transferring Employee shall terminate and shall not be reinstated in the event the Transferring Employee should again enter City employment.

(d) Employees Who May Terminate Membership. Any member whose employment status changes in such manner that the member would be ineligible for membership pursuant to the provisions of Subsection 4.1002(b)(8) if not already a member, may file a written application, together with proof of status change, with the Board of Administration requesting that the member’s membership in the Retirement System be terminated. Provided that the member provides sufficient proof of status change, the Retirement System shall approve the request. If such request is approved, the former member shall become a member of the Pension Savings Plan for Part-time, Seasonal and Temporary Employees established in Chapter 16 of this code, provided that the former member otherwise qualifies to participate in such plan. Unless federal law permits a withdrawal of contributions, the former member’s accumulated contributions shall remain in the fund so long as the former member continues to be employed, in any capacity, by the City. If a former member who has terminated membership on this basis should become a member of the Retirement System on or after July 1, 2013, the former member shall become a member of Tier 2 unless the former member’s Tier 1 contributions were not withdrawn and remained in the fund, in which case the former member shall return to membership in Tier 1.

(e) Airport Peace Officer Members. A person appointed prior to January 7, 2018, and who, on that date, or on the date immediately preceding the date of such persons’ appointment as a firefighter and employment by the Fire Department, is sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports, in class codes 3225-1, 3225-2, 3225-3, 3202-0, 3202-1, 3202-2, 3236, 3226-0, 3226-1, 3226-2, 3227, 3203, 3203-9, 3228-0, 3228-1, 3228-2, 3205, 3234 or 3232, including a person who will become a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall make an irrevocable election in writing whether to become a member of Tier 6 of the Los Angeles Fire and Police Pension plan (LAFPP) in lieu of membership in LACERS, on the terms and conditions set forth in (e)(1) below and further set forth in Section 4.2215 and Charter Section 1704, or to remain in LACERS.

(1) Election for Airport Peace Officers Appointed Prior to January 7, 2018.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require mandatory counseling for all eligible Members, promulgate election filing rules and procedures, and determine the election period(s) and deadlines.

(i) Mandatory Counseling Sessions. Every person appointed prior to January 7, 2018, and who, on that date, is sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports, in class codes 3225-1, 3225-2, 3225-3, 3202-0, 3202-1, 3202-2, 3236, 3226-0, 3226-1, 3226-2, 3227, 3203, 3203-9, 3228-0, 3228-1, 3228-2, 3205, 3234 or 3232, including a person who will become a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall be required to attend a mandatory counseling session administered by LACERS, in coordination with LAFPP, the Fire Department, and the Department of Airports, in order to make an informed and voluntary decision whether to transfer to LAFPP Tier 6 or remain a LACERS Member. Such counseling sessions shall be held at dates and times established by LACERS and LAFPP. Such counseling sessions shall include, but shall not be limited to, information regarding the cost to the individual member of purchasing all of the member’s prior service, and a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Within fourteen (14) calendar days after attending one of the mandatory counseling sessions described in Subsection (A)(i), every Member who is eligible for the election described herein, including a Member who will become a Member of Tier 1 of Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall file a written election form with LACERS indicating whether the Member elects to transfer to LAFPP or remain in LACERS. Once filed, such election shall be irrevocable and the Board shall have no authority to revoke the election or waive the deadline. A Member’s failure to file an election form before January 7, 2018, shall be deemed an irrevocable election to remain in LACERS.

(iii) Irrevocable Agreement to Purchase All Prior Service at Full Actuarial Cost. A Member’s election to transfer to LAFPP Tier 6 shall constitute an irrevocable decision not only to opt out of LACERS and transfer into LAFPP Tier 6 but also an irrevocable agreement to purchase all of the Member’s prior service with LACERS from LAFPP at full actuarial cost pursuant the requirements set forth in Charter Section 1704 and Section 4.2215 of this Code. A Member shall enter into a service purchase agreement with LAFPP on the date upon which the Member files their election to transfer to LAFPP from LACERS as provided in Subparagraph (ii) above. Such purchase agreement shall be subject to the terms and conditions established by LAFPP and set forth in Charter Section 1704 and Section 4.2215 of this Code.

(B) Election and Service Purchase Shall Be Irrevocable. Consistent with Charter Section 1704(b)(3), a Member’s election to remain in LACERS or transfer to LAFPP Tier 6, and to purchase all of the Member’s prior LACERS service from LAFPP at full actuarial cost, shall be irrevocable on the date upon which the member files their election form with LACERS. A Member’s failure to file an election form before January 7, 2018, shall be deemed an irrevocable election to remain in LACERS. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a Member’s election, refund a Member’s service purchase, or allow transfers after such deadline.

(C) Transfer Effective Date. A Member’s election to transfer to LAFPP Tier 6 shall be effective on January 7, 2018, or upon graduation from the Fire Department drill tower, whichever is earlier. The election of a Member who becomes a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8) shall be effective immediately after such Member becomes a Tier 1 Member.

(D) Department of Airports Responsibility for Payment. The Department of Airports shall pay LACERS for all costs and expenses incurred by the Retirement System in connection with administering this election process, including, but not limited to, the cost of any necessary reports prepared by the Retirement System’s actuary, the cost of any changes to the pension administration system, any legal expenses incurred by the Retirement System in connection with this election, and any staff time dedicated to administering this election. LACERS shall be responsible for preparing invoices of all expenses incurred and submitting them to the Department of Airports for its review and approval.

(2) Enhanced LACERS Benefits Effective January 7, 2018 for Airport Peace Officers Who Remain in LACERS; Eligibility for Enhanced Benefits Contingent Upon Mandatory Additional Contribution. A person who elects to remain in LACERS rather than transfer to LAFPP shall remain a LACERS Tier 1 Member if subsequently appointed without a break in Department of Airports service to a sworn position in the Department of Airports or, consistent with Charter Section 1700(c)(5), the Fire Department, that would otherwise qualify the person for membership in LAFPP.

Effective January 7, 2018, such person shall be deemed an Airport Peace Officer Member, as defined in Section 4.1001(a), and shall be responsible for making a lump sum mandatory additional contribution payment of $5,700 to LACERS, on a post-tax basis, by cashier’s check, before January 8, 2019, and prior to becoming eligible for any of the enhanced benefits provided to such Members in Sections 4.1007(a), 4.1008.1 and 4.1010.1. LACERS shall deposit these funds into each Airport Peace Officer Member’s individual account as provided in Charter Section 1162. Notwithstanding any provision of this Code to the contrary, no Airport Peace Officer Member shall be eligible for the enhanced benefits provided by Sections 4.1007(a) or 4.1008.1, nor shall benefits be paid to any survivor or beneficiary of the Member pursuant to Section 4.1010.1, until LACERS has received this $5,700 payment. If an Airport Peace Officer Member fails to complete this $5,700 payment before January 8, 2019, or prior to the Member’s retirement date, whichever is earlier, the Member shall forfeit eligibility for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1, and shall revert to status as a Tier 1 Member or former Tier 1 Member, as applicable. Before January 8, 2019, an Eligible Survivor may submit the lump sum $5,700 payment by cashier’s check, on a post-tax basis, to satisfy eligibility requirements to receive the enhanced benefits payable to the beneficiaries of an Airport Peace Officer Member.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (a)(3), Ord. No. 184,134, Eff. 1-22-16; Subsec. (a)(3) amended and Subsec. (e) added, Ord. No. 184,853, Eff. 4-6-17.

Sec. 4.1002.1. Mandatory Transfer of Tier 2 Members to Tier 1.

(a) Tier 2 Members. Effective February 21, 2016, all persons who entered LACERS membership between July 1, 2013 and February 21, 2016, as members of Tier 2 of the Retirement System shall be members of Tier 1 of the Retirement System and shall be subject to all the benefits and conditions of entitlement of that tier. The City shall contribute to the Retirement System the funds necessary, as determined by the actuary for the Retirement System, to make the Retirement Fund whole for any contributions that would have been made by the City and Tier 2 members had those members been members of Tier 1 from their respective initial dates of membership in LACERS. Such contributions will reflect the difference between the Tier 1 and Tier 2 normal cost rates calculated for the affected Tier 2 members adjusted with interest at the assumed earnings rate. Any such back contributions made by the City shall not be credited to any individual member’s account but shall be contributed solely for the purpose of making the Retirement Fund whole.

(b) Former Tier 2 Member with Contributions on Deposit. A former Tier 2 member who returns to membership in the Retirement System on or after February 21, 2016, shall return to membership in Tier 1 if the former Tier 2 member has pre-February 21, 2016, contributions that remain on deposit with the Retirement Fund on the date the former Tier 2 member begins City service in a position in which the former Tier 2 member again becomes eligible for membership in the Retirement System. In the event a former member’s pre-February 21, 2016, contributions have been forfeited to the Retirement Fund, the former member shall return to membership in Tier 1, provided that the former member is relieved from such forfeiture and said funds are returned to the former member’s individual account. Former members may not qualify to return to Tier 1 membership under this paragraph by making back contributions or redeposits of contributions after re-entry into City service. The City shall contribute the funds necessary, as determined by the actuary for the Retirement System, to make the Retirement Fund whole for any contributions that would have been made by the City and the former Tier 2 member had that former member been a member of Tier 1 from the former member’s initial date of membership in LACERS. Such contributions will reflect the difference between the Tier 1 and Tier 2 normal cost rates calculated for the affected Tier 2 members adjusted with interest at the assumed earnings rate. Any such back contributions made by the City shall not be credited to the former member's account, but shall be contributed solely for the purpose of making the Retirement Fund whole. A former Tier 2 member who was employed for any period of time as a part-time employee and was certified as a member pursuant to Section 4.1052(b)(8), and who leaves their pre-February 21, 2016, contributions on deposit in the Retirement Fund, but does not return to membership in the Retirement System, shall be entitled to apply to retire as a former Tier 1 member pursuant to Section 4.1006 of this Code.

(c) Tier 2 Disability Retirees Returned to Employment. A Tier 2 disability retiree who is returned to City employment on or after February 21, 2016, as provided in Section 4.1058(e) or (f), or Section 4.1008(e) or (f), shall return to membership in Tier 1.

(d) Service Purchase Elections of Tier 2 Members.

(1) Government Service Buy Back. Tier 2 members who elected to purchase Government Service Buy Back (GSB) prior to February 21, 2016, shall have their service purchases re-calculated using the Tier 1 cost benefits methodology and conditions of entitlement. The Tier 1 GSB cost, including the member’s salary, contribution rate, and interest rate, shall be based on the date the member signed the member’s agreement. If payment has been received by the Retirement System and the Tier 1 purchase cost is less than the Tier 2 purchase cost, the Retirement System shall credit the member’s account with regular interest, as provided in Charter Section 1162(b), any excess funds collected in error. Excess funds originating from post-tax dollars may, at the member’s option, be refunded, applied to an additional service purchase, or transferred to a Larger Annuity Account. Excess funds originating from a pre-tax rollover of funds may, at the member’s option, be applied to an additional service purchase, or transferred to a Larger Annuity Account. If payment has been received by the Retirement System and the Tier 1 purchase cost is greater than the Tier 2 purchase cost, the member shall either receive prorated service based on the payment already received or enter into an agreement to purchase the difference to receive full service credit.

(2) Purchase of Back Contributions and Redeposit. Tier 2 members who elected to purchase Back Contributions or Redeposit prior to February 21, 2016, shall have their service purchases re-calculated using the Tier 1 cost benefits methodology and conditions of entitlement. The Tier 1 Back Contributions and Redeposit cost calculations shall include the survivor contributions for the period of purchased service and regular interest, as provided in Charter Section 1162(b), based on the date the Member signed the Member’s agreement. If the Tier 1 purchase cost is greater than the Tier 2 purchase cost, the Member shall either receive prorated service based on the payment already received or enter into an agreement to purchase the difference to receive full service credit.

(e) Death Benefits for Survivors of Tier 2 Members. Survivors of Tier 2 members, who are receiving benefits that were calculated prior to February 21, 2016, shall have their survivor benefits re-calculated based on the Tier 1 benefits and conditions of entitlement.

SECTION HISTORY

Added by Ord. No. 184,134, Eff. 1-22-16.

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