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All current and former members of the Retirement System who are not entitled to credit for service rendered prior to July 1, 1965, shall, at the time of retirement, whether for service or disability, be eligible for the benefit provided in this section, provided they have an eligible survivor as defined in this section. Should any current, former or retired members be entitled to credit for service rendered prior to July 1, 1965, the rights of their survivors shall not be governed by this section, except as otherwise provided in Section 4.1013.
(a) Definitions. For purposes of this section, the following words and phrases are defined as follows:
Eligible Survivor shall include the following:
(1) The spouse of a retired member to whom such member is married at time of retirement and has been so married for at least one (1) year prior thereto, and further provided that said spouse is either the surviving spouse or surviving domestic partner of the retired member at the time of the member’s death.
(2) The domestic partner of a retired member provided that at the time of the member’s retirement their domestic partnership had been established for at least one (1) year, and further provided that said domestic partner is either the surviving domestic partner or surviving spouse of the retired member at the time of the member’s death.
Member shall only include a member who is not entitled to credit for service rendered prior to July 1, 1965, unless a member with pre-July 1, 1965 service, or such member’s eligible survivor, shall exercise the election provided in Sec. 4.1013(b) and pay the required survivor contributions.
Joint and Survivor Cash Refund Annuity shall mean an annuity which shall be the actuarial equivalent of the member’s total accumulated contributions providing for equal monthly payments during the lifetime of such member and the eligible survivor, with payment of any unused contributions, as defined in Section 4.1010(c)(2), upon the death of the last survivor as provided in that provision, calculated in accordance with approved actuarial methods as of the date of retirement.
(b) Survivor Contributions. Every member shall contribute by salary deduction at the rate of contribution established elsewhere in this Article on account of the benefit provided by this section. Said contributions shall be known and designated as survivor contributions and are in addition to the member’s normal contributions.
(c) Retirement with Eligible Survivor. Upon the retirement of a member having an eligible survivor, other than one selecting one of the options available under Section 4.1015, the annuity portion of such member’s retirement allowance shall be calculated as a joint and survivor cash refund annuity, and the amount of pension payable during the member’s lifetime shall be the excess of the member’s unmodified retirement allowance over such joint and survivor cash refund annuity.
Upon the death of a member survived by an eligible survivor, there shall be continued to such survivor a retirement allowance which shall consist of:
(1) The joint and survivor cash refund annuity paid during the member’s lifetime; and
(2) A pension amount payable during the lifetime of the eligible survivor, which shall be the excess of one-half (1/2) of the unmodified allowance over said joint and survivor cash refund annuity.
(d) Retirement with No Eligible Survivor. Upon the retirement of a member having no eligible survivor at the time of retirement, the annuity portion of such member’s retirement allowance shall be calculated on the basis of the member’s normal accumulated contributions as opposed to the sum of the normal contributions and the survivor contributions taken pursuant to the provisions of this section. The excess of such member’s total accumulated contributions over the normal accumulated contributions at time of retirement shall be paid to such member, or at the member’s option, considered as additional contributions made to provide a larger annuity benefit.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
(a) Members Who Retired or Terminated Membership Prior to July 1, 1965.
(1) Member Retired Prior to July 1, 1965. A member who retired prior to July 1, 1965, pursuant to the provisions of former Charter Sections 508 or 510, and who has a spouse to whom the member was married for at least one (1) year at the time of retirement (an eligible survivor for purposes of this subsection), may elect in writing to provide for a continuance of the member’s retirement allowance to said eligible survivor, which election shall be filed with the Board of Administration. In the event a retired member who is eligible to make the election herein provided should die prior to having made such election, the member’s eligible survivor shall have the right to so elect in the member’s stead and shall thereafter receive the continuance to survivor benefit as hereinafter provided.
Upon the death of a retired member who elected to provide for a continuance to the member’s eligible survivor, as provided in the preceding paragraph, there shall be continued to such survivor, provided the survivor is the deceased retiree’s surviving spouse or domestic partner, an allowance which shall consist of:
(i) An annuity equal to the amount of the annuity which was payable to the retired member during the member’s lifetime by virtue of the member’s normal contributions; and
(ii) A pension amount payable during the lifetime of such survivor which shall be the difference between one-half (1/2) of the member’s base amount excluding from said base amount any portion payable by virtue of additional contributions paid towards a larger annuity, and the amount of said annuity.
(iii) A cost of living equal to one-half (1/2) the cost of living amount payable to the deceased member at the time of the member’s death, after excluding therefrom any portion of said cost of living amount payable by virtue of additional contributions paid towards a larger annuity. All adjustments to the cost of living amount pursuant to this provision shall be subject to future adjustments as provided in Section 4.1022.
(2) Former Member Who Terminated Prior to July 1, 1965. Any former member who terminated prior to July 1, 1965, and who elected the benefit of a “vested right” pension but has not made application for such pension, may make the election described above in Subsection(a)(1) at the time such former member files their application for service retirement if the member has either a spouse to whom the member has been married for at least one (1) year prior to the date of the member’s retirement or a domestic partner in a partnership that has been established for at least one (1) year prior to the date of the member’s retirement (an eligible survivor for purposes of this subsection). Upon the death of such retired member who elected to provide for a continuance to the member’s eligible survivor as provided herein, there shall be continued to such survivor, provided the survivor is the deceased retiree’s surviving spouse or domestic partner, an allowance which shall be based upon the components set forth in Subsection(a)(1)(i), (ii) and (iii).
(3) Payment of Contributions upon Death. Upon the death of both the retired member and the retired member’s eligible survivor where an election has been made as provided in this Subsection (a), any unused contributions and accrued retirement allowance shall be paid as provided in Section 4.1010(c)(2).
(b) Members with Service Prior to July 1, 1965. Members shall not receive credit under the provisions of Section 4.1012 for service rendered prior to July 1, 1965, unless said member shall both:
(1) Elect, in writing, and file with the Board of Administration an application to participate in the continuance to survivor benefit established in Section 4.1012; and
(2) Pay survivor contributions in an amount equal to all the contributions which the member would have made had the member elected said benefit on July 1, 1965, together with all regular interest which, had the member so made the same, would have been credited thereon prior to the date of such payment. The mode of paying such back contributions in a lump sum or on an installment basis shall be as decided by the Board of Administration and set forth in their rules.
The surviving spouse or domestic partner of a deceased retired member is hereby given the right to make an election to participate in the continuance to survivor benefit provided in Section 4.1012 if such deceased retired member did not during the deceased retired member’s lifetime make the election to participate in said benefit; provided, however, that such survivor must qualify as an eligible survivor as said term is defined in Section 4.1012.
The eligible survivor’s election shall be in writing on such forms as the Board may prescribe, and must be accompanied by the amount of survivor contributions which the deceased retired member would have contributed by salary deduction during the entire period of membership in the Retirement System during or for which the deceased retired member would have been eligible to participate in the benefit provided in Section 4.1012.
The benefit herein provided shall entitle a survivor eligible to make an election to receive an allowance calculated as of the time immediately following the deceased retired member’s death, but such allowance shall become payable only as of the first day of the month following the exercise of the election and receipt by the Retirement System of the required survivor contributions. There is to be no retroactive entitlement to benefits under the provisions of this section.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
A member or former member who does not have an eligible survivor, as defined in Section 4.1012, may make an irrevocable election at the time of retirement, in writing, to provide for a continuance of the member’s or former member’s retirement allowance to one designated beneficiary. The retiree shall take an actuarial reduction of the retiree’s retirement allowance to pay for the continuance to a designated beneficiary. The retiree shall specify any whole percentage not to exceed 100% as the portion of the retirement allowance to be paid as an allowance to the beneficiary, subject to any limits imposed by federal law. The allowance payable to the beneficiary shall commence the day following the retiree’s date of death and shall terminate upon the death of the beneficiary.
The beneficiary’s continuance shall be subject to all cost-of-living and discretionary increases.
A beneficiary under this section shall not be entitled to any disability retirement allowance, any basic death benefit, any special death benefit, any monthly allowance for survivors of a member or retired person, any insurance benefit or subsidy, or retired member lump-sum death benefit.
The Board shall adopt rules to administer this continuance and shall formulate the benefits in such a way that no additional actuarial liability is incurred either by the System or by the City.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
(a) Optional Retirement Allowance Election. At any time before the first payment of a service or disability retirement allowance, a member or former member who is retiring may elect to receive the actuarial equivalent of such retirement allowance as:
(1) One Hundred Percent (100%) Continuance. An optional retirement allowance payable throughout the balance of the retiree’s life, with the provision that upon the retiree’s death one hundred percent (100%) of such optional retirement allowance shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) the retired member’s minor children, in the event there be no surviving spouse or domestic partner; or (iii) the retired member’s dependent parents, in the event there be no surviving spouse or domestic partner or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years; or
(2) Lesser Percent (%) Continuance. Any other optional allowance which the retiree may elect to receive and which shall be authorized by the Board, payable throughout the balance of the retiree’s life, with the provision that, upon the retiree’s death, a specified percentage of such optional allowance selected by the retiree shall be continued through the life of and paid to: (i) the retiree’s surviving spouse or domestic partner; or (ii) the retiree’s minor children, in the event there be no surviving spouse; or (iii) the retiree’s dependent parents, in the event there be no surviving spouse or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years.
In order for the person who is the retiree’s spouse or domestic partner at the time of retirement to be eligible to receive the continuance provided in this section, this person must be the surviving spouse or surviving domestic partner of the retiree at the time of the retiree’s death.
(b) Calculation of Optional Retirement Allowances. The amount of any optional retirement allowance granted pursuant to this section shall be so calculated that the liability of the system at the date of retirement under the optional retirement allowance shall be equal to the liability of the system at the same date under the retirement allowance provided in Sections 4.1007 or 4.1008, including in each case the liability for continuance to an eligible survivor provided in Section 4.1012, if applicable. Any retiree selecting one of the options available under this section who has an eligible survivor as defined in Section 4.1012 shall have the annuity portion of such retiree’s retirement allowance calculated on the basis of the member’s total accumulated contributions, including both normal and survivor contributions. For the purpose of this section, the liability of the system is defined as the present value, in accordance with tables adopted by the Board, of the retirement allowance or optional retirement allowance calculated by approved actuarial methods, giving due weight to the average probabilities of survivorship of all parties involved in the allowance, or optional allowance, to the limitation of payments to age eighteen (18) in the case of a minor child, and to the requirement for refund of unused contributions after the death of the retiree or beneficiary as provided for in Section 4.1010(c)(2).
(c) Options for Members Who Retired Prior to July 1, 1965, with an Optional Allowance. Any retired member of the Retirement System who retired prior to July 1, 1965, and who selected one of the optional retirement allowances authorized in the predecessor to this section, upon written application filed with the Board of Administrators shall be entitled to receive the allowance the member would have been eligible to receive under the then applicable service retirement or disability retirement provisions had the member not elected an optional retirement allowance at that time. Any adjustment made pursuant to this provision shall be effected by modifying the pension portion of the allowance. For benefits that are increased, the ratio between the base amount and the cost of living amount shall be maintained by increasing the cost of living proportionately. All adjustment to the cost of living amount made pursuant to this section shall be subject to future adjustments as provided in Section 4.1022.
Any surviving spouse receiving a continuance of a retired member’s allowance based upon the member having made an election as provided in the predecessor to this section, which election was made when the member was not eligible to participate in the continuance to eligible survivor benefit currently provided in Section 4.1012, may elect to receive in lieu of such allowance the continuance to eligible survivor benefits provided by Section 4.1013(a)(1).
Any election or written application made pursuant to this subsection shall be irrevocable and not subject to the provisions of waiver of benefits as provided in Section 4.1024.
(d) Federal Law Limitations May Not Be Exceeded. No optional allowance shall be granted under the provisions of this section that exceed any limitations imposed by federal law.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
Any member or the survivor of a deceased member who is eligible for a retirement allowance under the provisions of this Article may, in lieu of the annuity payment calculated on the basis of the refund of unused contributions, elect to receive an annuity payable only during the life or lives of the persons covered by the option with no payment due upon the death of the last survivor on account of unused contributions. In all other respects, the provisions of Section 4.1015(b) with respect to the liability of the System under the option being equal to the liability of the System under the member’s unmodified retirement allowance shall be applicable.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
(a) Back Contributions for Past Periods of City Service. Every member who was a City employee during any period or periods in which the member was regularly employed, on a full-time basis or on a part-time basis but was not a member, and thus not contributing to the Retirement Fund, shall have the option to designate all or any portion of such employment for which the member may receive retirement credit, provided, however, that the member is not receiving and is not entitled to receive for that period of City employment any benefit from any other pension or retirement system, including, but not limited to, the Fire and Police Pension Plan, the Water and Power Employees’ Retirement Plan, the Limited Term Retirement Plan, the Pension Savings Plan for Part-time, Seasonal and Temporary Employees, and any union plan. Such option shall be exercised in writing, filed with the Board of Administration, designating the period of City employment for which the member desires to receive retirement credit, and must be accompanied by a single payment of back contributions or by an agreement to pay such back contributions in installments.
The back contributions to be paid shall be in an amount equal to all of the contributions which the member would have made to the Fund had the member been a member during such period, together with all regular interest which, had the member so made the same, would have been credited thereon prior to the date of such payment; provided, however, that in the case of such installment payment thereof, the same shall be made pursuant to the rules which shall be adopted by the Board of Administration establishing minimum amounts to be paid and the period of time within which they must be paid and, furthermore, providing the rate of interest which shall be paid upon the unpaid balance of the same. Every member who makes up back contributions as hereinabove provided shall be allowed credit for the period of City employment designated in the declaration filed by the member with the Board of Administration, the same as though the member had been a member during such period. Any such member shall be allowed at any time to make a single payment equal to the then present value of all of the unpaid installments in such manner as shall be determined by the Board. Should the member fail to make all of the payments required of the member under the provisions of this section, the member shall be allowed retirement credit, counter-calendarwise, for the same portion of such designated period as the amount made up by the member is of such full amount, and provided further that, should the member cease to be a member by reason the member’s death, retirement credit shall be allowed for the whole period designated by the member if the member’s surviving spouse or domestic partner exercises the option which, under such circumstances, hereby is given to such survivor to make a single payment equal to the then present value of all of the unpaid installments in such manner as may be determined by the Board. The written option hereinabove referred to shall be filed with the Board of Administration.
For purposes of determining whether a member is not receiving and is not entitled to receive for a prior period of City employment any benefit from a non-City pension or retirement system, such as a union plan, the Board shall adopt rules regarding the proof that a member must provide to establish a right to make back contributions for such prior period of City employment, since, for a non-City system, such information is not directly available to the Retirement System.
(b) Back Contributions for Periods of Participation in the Pension Saving Plan. Notwithstanding the provisions of Subsection (a), a member may receive retirement credit for any period or periods in which the member was a participant in the Pension Savings Plan for Part-time, Seasonal and Temporary Employees provided for in Chapter 16 of Division 4 of this Code. Such option shall be exercised in writing, filed with and subject to rules promulgated by the Board of Administration as provided for in Subsection (a) above. The amount of back contributions to be paid shall be the total of the following:
(1) An amount equal to all of the contributions which the member would have made to the Fund had the member been a member during such period, together with all regular interest which would have been credited thereon by the Board of Administration prior to the date of such payment; and
(2) The full amount of all contributions made to the Pension Savings Plan by the City on behalf of the member during such period or periods, plus all interest credited to those contributions by the Pension Savings Plan.
(c) Back Contributions for Periods of Participation in the Limited Term Retirement Plan. Notwithstanding the provisions of Subsection (a) herein and Section 4.1850(g) of Chapter 18.5 of Division 4 of this Code, every person who is a member may receive service credit for any period or periods in which the person was a participant in the Limited Term Retirement Plan provided for in Chapter 18.5 of Division 4 of this Code by making back contributions, which shall be paid in one of the following manners:
(1) All of the participant’s interest in the participant’s individual account with the Limited Term Retirement Plan, based upon contributions made both by the participant and by the City, and any gains or losses thereon, shall be transferred from the Limited Term Retirement Fund to the LACERS Retirement Fund for credit to the member’s LACERS account and, upon receipt, shall constitute full payment for the buy back; or
(2) Where the member’s entire account balance in the member’s former individual account with the Limited Term Retirement Plan, based upon contributions made both by the participant and by the City, and any gains or losses thereon, is directly rolled over from the Limited Term Retirement Plan to another eligible retirement plan prior to January 1, 2003, provided these funds have been segregated and not co-mingled with any other funds, the trustee-to-trustee transfer of the total balance from that eligible retirement plan to the LACERS Retirement Fund for credit to the member’s LACERS account shall constitute full payment for the buy back; or
(3) In all other cases in which the member’s Limited Term Retirement Plan account balance has been distributed, the amount of back contributions to be paid shall be in the amount of the entire lump sum distribution, whether received by the member or by any other person, together with all regular interest which would have been credited thereon by the Board of Administration subsequent to the date the lump sum was distributed had the member been a member during that period.
This option shall be exercised in writing, filed with and subject to rules to be promulgated by the Board of Administration. The service credit purchased pursuant to this subsection shall count as continuous service credit for all LACERS benefits, the same as if the person had been a member during the entire period of time for which service credit is given.
(d) Back Contributions for Periods when Member Received Workers’ Compensation Benefits. The Board of Administration shall, by rule, provide for the making up of contributions that a member failed to make for any period during which the member 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 the member’s employment with the City, together with an amount equal to the regular interest that would have been credited had the member made the contributions.
(e) Back Contributions in Connection with Disability Denials. A limited right to make back contributions in connection with denials of disability applications is provided in Section 4.1008(j)(4).
(f) Limitations on Back Contributions Imposed by Federal Law. Notwithstanding the provisions of Subsection (a), (b) and (c) herein, a member shall not be allowed to make back contributions to purchase retirement credit under this section if the period of time being purchased constitutes “unqualified service” which the member is prohibited from purchasing under federal law. The Board shall adopt such rules as are necessary to comply with federal law and may authorize payment methods that comport with federal requirements.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
Any former member who received a refund of that former member’s contributions upon separating from the service of the City shall, upon again becoming a member, have the option to re-deposit with the Retirement Fund the amount previously withdrawn, together with regular interest, irrespective of any time period that may have elapsed since such separation. Such option shall be filed in writing with the Board of Administration. The amount of the contributions to be re-deposited shall be the sum of the amount of accumulated contributions withdrawn, plus all of the regular interest which would have been credited thereon had said accumulated contributions remained on deposit in the fund to the date the member re-deposits such contributions either by a single lump sum payment or executes an agreement to pay such re-deposit in installments. In the case of installment payments, the Board of Administration shall establish the minimum amounts to be paid, the period of time therefore, the rate of interest which shall be paid on the unpaid balance of the same, and all other rules the Board may deem necessary for the carrying out of the provisions of this section. Any such member shall be allowed, at any time, to make a single payment equal to the then present value of all of the unpaid installments in such manner as shall be determined by the Board. Every member who makes a re-deposit as hereinabove provided shall be allowed retirement credit for the period of service for which the re-deposit is made; provided however, that the member is not receiving and is not entitled to receive retirement credit for such period of service from any other pension or retirement system of the City of Los Angeles. Should the member fail to complete payment of the re-deposit, credit shall be allowed counter-calendarwise from the same portion of such designated period as the amount made up by the member is of such full amount, and provided, further, that should the member cease to be a member by reason of their death, retirement credit shall be allowed for the whole period for which the re-deposit is being made if the member’s surviving spouse or domestic partner exercises the option which, under such circumstances, hereby is given to such survivor to make a single payment equal to the then present value of all of the unpaid installments in such manner as shall be determined by the Board.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
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