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(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.
(a) Definitions. For the purpose of this section, the following words and phrases shall have the meaning ascribed to them in this subsection unless a different meaning is clearly indicated by the context:
Leave of Absence shall mean an approved uncompensated leave of absence from City Service, excluding any period of absence due to disciplinary suspension.
Buy Back shall mean purchase by a member of retirement credit for periods of eligible leaves of absence from City Service.
(b) Eligibility. Every person who is a member on the effective date of this section or who shall become a member subsequent thereto shall be eligible to buy back credit for periods of uncompensated leave of absence from City Service.
(c) Application of Buy Back Credit. A member electing to buy back periods of leave of absence from City Service may apply buy back credit to increase service retirement benefit credit. Buy back credit shall not be used to meet minimum qualification for service retirement, disability retirement or vested retirement or to qualify for the Family Death Benefit Plan, or to qualify for or increase health and dental insurance premium subsidies.
(d) Effect of Benefit Increases. If retirement benefits should be increased by City Council action pursuant to Section 1168 of the City Charter, such increased benefits shall be applicable to service credits purchased pursuant to this section.
(e) Minimum Periods of Purchase. A member electing to buy back credit for periods of uncompensated leave of absence shall file with the Board of Administration a written application identifying the time periods for which credit is to be purchased. A member may buy back credit for one or more periods of uncompensated leave, except, however, a minimum of six (6) months of leave in the aggregate shall be purchased. Total buy back credit purchased shall not exceed the member’s actual City Service at the time the buy back is concluded.
(f) Agreement with the City Employees’ Retirement System - Buy Back Methods. A member electing to buy back credit described herein shall enter into a written agreement with the Retirement System. Such agreement shall provide that the member contribute an amount equal to the present value of the liability incurred by the System in crediting the service based upon actuarial assumptions in effect at the time the agreement is entered into or amended and the projected retirement date contained in the agreement. Such agreement shall identify the method of payment of the additional contributions required to fund the purchased credit, which may be a specific dollar payment or percent of salary obligation. If a member elects to make the required contribution by a specific dollar payment, the payment may be made in a lump sum or in biweekly installments through payroll deduction over a period not to exceed five (5) years. If the member elects to enter into a percent of salary obligation, the member shall agree to make the contributions as a percent of salary through payroll deduction over a period extending from the date of the agreement with the Retirement System to a projected retirement date included in the agreement.
(g) Termination or Completion of Agreement. A member who has entered into a buy back agreement shall complete all contributions prior to the effective date of retirement in order to receive agreed upon buy back credit. If all contributions have not been completed and the member elects to retire, the member may receive prorated buy back credit for that portion of the service which has been purchased by contributions already made and forfeit the remainder of credit covered by the agreement, or may make a lump sum payment sufficient to complete the total payment covered by the agreement. In the event the member elects to retire at a later date than the age specified in the agreement after completing all payments, no adjustments shall be made in the buy back credit or the cost of such credit. A member who elects to terminate an after-tax agreement prior to its completion or at the time of retirement shall forfeit buy back credit and may elect to receive a cash refund of the buy back contributions and interest payable upon the earlier of death, termination of employment or retirement.
(h) Member’s Death. In the event of the death of a member who has entered into a buy back agreement, the surviving eligible beneficiary of the member may elect a refund of the buy back contributions and interest thereon, or elect to apply the credit, or a portion thereof, to the calculation of the benefits for which the survivor qualifies without the addition of buy back service credit, or elect to complete the terms of the agreement with a lump sum payment of the remaining amount owed.
(i) Administration. The administration of this section shall be under the exclusive management and control of the Board of Administration. Said Board shall have, and is hereby granted, full power and authority to adopt and enforce all such rules and regulations as it may deem necessary for the carrying out of the provisions of this ordinance. The Board of Administration shall have the right to construe this section, to interpret any provision thereof, to make rules and regulations relating to this section, and to determine any factual questions arising in connection with the operation of this section after such investigation or hearing as the Board may deem appropriate. Any decision made by the Board under the provisions of this section shall be conclusive and binding on all parties concerned.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
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