(a) For the purposes of Article 2 of Chapter 10 and Article 3 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 interest credited to the member’s account.
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 LACERS 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 employee 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 employee also made contributions to the 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 his or her years of service from the date such member entered employment with the City of Los Angeles in a capacity that would entitle him or her 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 Rule provisions.
Compensation Earnable. The base salary established for any position or office in the City service for the particular period involved in any calculation required and shall not include any bonuses or premium pay.
Continuous Service. Shall mean uninterrupted City service, except that discontinuance of such service of a member for any cause whatever, followed by re-entrance into the 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 4.1069.
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 his 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 4.1059 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.
Member or Tier 2 Member. An employee of the City of Los Angeles who meets the membership requirements contained in Section 4.1052. 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 2 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. Member, as used in this Article, shall mean a member of Tier 2 unless otherwise specified.
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.
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 4.1060(a)(2), together with all subsequent adjustments thereto.
Retired Member or Retired Tier 2 Member. A former member who is receiving a monthly benefit from Tier 2 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 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 as an average of the monthly compensation paid during the member’s last thirty-six (36) months of service or any other thirty-six (36) consecutive months of service which he or she shall designate. Since employees are paid on a biweekly basis, rather than a monthly basis, the Board shall adopt appropriate rules to convert a member’s biweekly compensation into an amount that represents the member’s equivalent compensation for the thirty-six (36)-month period that is to be used to determine final compensation pursuant to this provision. If for any reason final compensation must be computed for any member who has completed less than thirty-six (36) months of continuous service, the salary for the missing months shall be at the rate for the first month of service to arrive at the compensation earnable. This exception shall not apply if a member has any period of continuous service of thirty-six (36) months or more for which he or she will receive service credit.
Compensation which is to be included in the calculation of Final Compensation shall be limited to payments designated as base 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, regularly assigned bonuses, premium pay, 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.