(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.