(a) Six Percent (6%) Contribution Rate. Beginning November 8, 2009, all members shall contribute by salary deduction to the Retirement Fund at the rate of six (6%) of the member’s compensation earnable, of which one-half percent (0.5%) shall be the survivor contribution portion, and the remaining five and a half percent (5.5%) shall be the normal contribution.
(b) Seven Percent (7%) Contribution Rate. Pursuant to the provisions of Section 4.1033(a)(9), commencing on July 1, 2011, and ending on June 30, 2026, or when the ERIP Cost Obligation is fully paid, whichever comes first, in lieu of contributing as provided in Subsection (a), above, all members shall contribute by salary deduction to the Retirement Fund at the rate of seven percent (7%) of the amount of the member’s compensation earnable, of which one-half percent (0.5%) shall be the survivor contribution portion and the remaining six and a half percent (6.5%) shall be the normal contribution.
(c) Additional Contributions. In addition to the contributions required pursuant to Subsection (a) or (b) herein, as applicable, certain members shall make additional normal contributions to the Retirement Fund as provided herein. In consideration for such additional contributions, these members shall receive the benefit set forth in Section 4.1111(c) of Article 2 of Chapter 11 of Division 4 of this Code. The City Administrative Officer shall notify the Retirement System and the Controller of the specific Memoranda of Understanding (MOUs) which require members to contribute as provided herein, and shall also provide the Retirement System and Controller with the names of all members who are non-represented employees, including elected officials. Because the benefit conferred by the aforesaid Section 4.1111(c) is a vested benefit, a member who is employed in a position requiring the payment of additional contributions to the Retirement Fund as provided in this subsection shall continue to make additional contributions to the Retirement Fund for so long as that member is a member, notwithstanding that the member may subsequently transfer to a position that does not require the payment of the additional contributions.
(1) Members subject to specific MOUs shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable retroactive to April 24, 2011, and ongoing. Further, such members shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable commencing on July 1, 2011, and ongoing, for a total additional contribution of four percent (4%) effective July 1, 2011, and ongoing.
(2) Members subject to other specific MOUs shall contribute by salary deduction to the Retirement Fund an additional four percent (4%) of the member’s compensation earnable retroactive to July 1, 2011, and ongoing.
(3) Members who are subject to other specific MOUs and members who are non-represented employees, including elected officials, shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable retroactive to July 1, 2011, and ongoing. Further, such members shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable commencing on January 1, 2013, and ongoing, for a total additional contribution of four percent (4%) effective January 1, 2013, and ongoing.
(4) Members subject to other specific MOUs shall contribute by salary deduction to the Retirement Fund an additional one percent (1%) of the member’s compensation earnable retroactive to February 9, 2014, and ongoing, and an additional three percent (3%) of the member’s compensation earnable commencing on June 29, 2016, and ongoing, for a total additional contribution of four percent (4%) effective June 29, 2016, and ongoing.
(d) Pick Up of Employee Contributions. All contributions paid pursuant to this section shall be deposited in each member’s individual account as provided in Charter Section 1162. The City shall pick up all employee contributions payable by salary deduction pursuant to this section as provided in Sections 4.1500 through 4.1504 of Chapter 15 of Division 4 of this Code.
(e) Prior Defrayal of Age-based Contributions. Prior to November 8, 2009, certain members paid age-based contributions to the Retirement System, which were reduced by a defrayal in which the City, or the member’s employing department, paid contributions (referred to hereafter as City defrayal funds) sufficient to equal the amount by which the employee contributions were reduced, subject to certain discounts. When a member’s contributions have been reduced by defrayal, the following conditions shall continue to apply:
(1) City defrayal funds shall not be credited to the members’ individual accounts nor shall such funds be refundable to any member, former member or beneficiary of a former member; and such funds shall not be included in the calculation of any annuity representing the actuarial equivalent of accumulated contributions wherever the provisions of this Code require such calculation.
(2) City defrayal funds shall not be returned to any funds of the City from which they were appropriated except to adjust for incorrect payments.
(3) Defrayal of employee contributions by the City shall not apply to or affect the amount of a member’s liability for back contributions, Family Death Benefit Plan contributions, additional contributions towards a Larger Annuity, or re-deposits of formerly withdrawn contributions; provided, however, that re-deposits of a member’s contributions, withdrawn during or after any period of City service for which the City defrayed any portion of the member’s contributions, shall not include the amounts so defrayed. If a member’s liability for back contributions involves any period in which the member would have been obligated, under former provisions of this Chapter, to make age-based contributions, the member’s liability for back contributions shall be computed based upon the former provisions of this Chapter that were applicable at that time.
(4) Any amounts of employees’ contributions defrayed by the City shall not be includable in the determination of “Compensation Earnable” or “Final Compensation.”
(f) Notwithstanding any language in this Section 4.1003 to the contrary, an Airport Peace Officer Member, including an Airport Peace Officer Member who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8), who elected to remain in the Retirement System rather than transfer to LAFPP Tier 6 pursuant to Charter Section 1704 and Sections 4.1002(e) and 4.2215 of this Code shall, to the extent required by the Internal Revenue Code, continue to make member contributions in the manner applicable to the Airport Peace Officer Member’s membership without regard to the irrevocable election to remain in LACERS. If this Section 4.1003 would otherwise require additional member contributions by such Airport Peace Officer Member, such additional member contributions shall be made on an after- tax basis to the extent required by the Internal Revenue Code. If this Section 4.1003 would otherwise require member contributions at a rate that is lower than the rate applicable to the Airport Peace Officer Member’s LACERS membership, the Council may, subject to applicable provisions of the Charter and this Code, provide for a larger annuity benefit at the time of retirement for such Airport Peace Officer Member to reflect the additional contribution amounts, as determined by the System’s actuary and subject to all limitations of the Internal Revenue Code.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
Amended by: Subsec. (c)(4) added, Ord. No. 183,006, Eff. 5-5-14; Subsec. (f) added, Ord. No. 184,853, Eff. 4-6-17.