(a) Application for Disability Retirement. Any member who has ten (10) or more years of continuous service and who has become physically or mentally incapacitated and who is incapable, as a result thereof, of performing the member’s duties, may be retired upon written application of such member, or of any person acting in the member’s behalf, or of the head of the department in which such member is employed. Any such application for disability retirement may be made at any time within, but not exceeding, one (1) year after the discontinuance of the service of an employee or the termination of any duly authorized sick leave with pay, provided such incapacity has been continuous from the discontinuance of such service.
(b) Disability Determination. The Board shall cause each member who applies to be examined by and a written report thereon rendered by at least three regularly licensed, practicing physicians selected by the Board unless the member is terminally ill, in which case the Board shall only require the member to be examined by one such physician selected by the Board. If, upon considering the report(s) of such physician(s) and such other evidence as shall have been presented to it, the Board finds that the member has become physically or mentally incapacitated and is incapable, as a result thereof, of performing the member’s duties and if said Board finds that such disability was not due to intemperance or the willful misconduct of such member, the member shall be retired as of the date of the discontinuance of the member’s service on account of such disability or termination of sick leave with pay.
(c) Disability Retirement Allowance. Any member retired on account of disability shall receive a disability retirement allowance which shall consist of:
(1) An annuity which shall be the actuarial equivalent of the member’s accumulated contributions at the time of the member’s retirement, calculated in accordance with approved actuarial methods as of the date of retirement; and
(2) A pension which shall be in such an amount that the same, when added to that portion of the member’s annuity not derived from additional contributions paid to provide a larger annuity at the time of retirement, shall be a sum which shall be equal to one-ninetieth (1/90) of the member’s final compensation, as defined in Section 4.1001(b), calculated as of the date of retirement, multiplied by the City service credit of such member.
(d) Death of Applicant Prior to Board Action. Whenever the Board shall have before it for consideration an application for disability retirement by a member who died while the member was waiting for the application to be processed and prior to reports of examination being obtained from three or more physicians selected by the Board, a disability retirement may be granted on the basis of fewer than three medical reports or no such reports subject to the following provisions:
The Board must find:
(1) That the applicant was physically or mentally incapacitated since the discontinuance of service and incapable of performing the duties of the applicant’s position; and
(2) That the disabling condition(s) and death of the applicant were not due to the applicant’s intemperance or willful misconduct.
It shall be within the power of the Board to adopt all necessary rules to implement the provisions of this subsection, including, but not limited to, rules regarding the type and quantity of evidence required to make the determination required herein.
(e) Review of Disability Retirees. The Board may, from time to time in its discretion, require any beneficiary under the age of sixty (60) years who shall have been retired because of disability to submit to medical examination by three regularly licensed practicing physicians selected by the Board. Upon the basis of such examination and other proper evidence, said Board shall determine whether such beneficiary is still incapacitated for service in the position held by the beneficiary at the time of the beneficiary’s retirement. If the Board shall determine that such beneficiary is not so incapacitated, the beneficiary shall be restored to duty in the position held by the beneficiary at the time of said retirement order and, upon the beneficiary’s return to active service, the beneficiary’s retirement allowance shall be canceled.
The failure, neglect, or refusal of any beneficiary to submit to such medical examination as the Board may order or to return to active service when determined to be no longer incapacitated, within such reasonable time as the Board may determine, shall be sufficient cause for cancellation of such retirement allowance, in the discretion of the Board, in which event the only right that the beneficiary shall have as a former member pursuant to Section 4.1054 is to receive a refund of the beneficiary’s accumulated contributions, less any payments made on account of the annuity provided herein.
If the Board should determine that a beneficiary is no longer incapacitated, but the beneficiary cannot be restored to duty in the position held by the beneficiary at the time of retirement due to the beneficiary’s termination or resignation, the Board shall cancel the beneficiary’s retirement allowance, and, as a former member, the beneficiary shall have the rights set forth in Section 4.1054, provided that, in the event the beneficiary requests a refund of contributions, the accumulated contributions shall be reduced by any payments made on account of the annuity provided herein.
(f) Consentual Re-Employment in a Different Position. Any person retired for disability by the Board, even though incapable of performing the duties of the position from which the person was retired, may be re-employed in a different vacant position if the Board of Civil Service Commissioners were to find that the person is capable of performing the duties of such position, provided, however, that such person may be so re-employed only with the consent of the appointing authority for such position and the written consent of such person. The Board of Civil Service Commissioners shall adopt rules and regulations to effectuate the purpose of the foregoing provisions. Upon the re-employment of such person, the person’s disability retirement allowance shall cease, and, should the person be eligible for membership in the Retirement System, the person shall again become a member
(g) Rights and Obligations upon Re-Employment. Any beneficiary who re-enters the service of the City, as provided in Subsection (e) or (f) herein, and again becomes a member of the Retirement System, shall return to membership in Tier 2. The balance, if any, of the member’s accumulated contributions, after deducting the annuity payments made to their member on account of a disability retirement allowance, shall be credited to the individual account of such member with the Retirement System, regardless of whether the member becomes a member of the Retirement System or of another City retirement system upon re-employment.
The member shall receive credit for services rendered prior to the date of the member’s retirement in the same manner as though the member had never been retired for disability, but the payment of a disability pension shall not constitute compensation from the City entitling the member to service for the period it was paid. If otherwise eligible, a member may purchase eligible service with another governmental entity for employment during periods in which the member received a disability allowance. Members of Tier 2 may elect to make contributions, on a post-tax basis, in order to replace some or all of the contributions used to fund the annuity portion of the member’s disability pension so as to reduce or eliminate the reduction that would otherwise occur to the member’s service retirement allowance pursuant to the provisions of Section 4.1057(a)(1). The Board shall adopt rules to allow Tier 2 members to make contributions for this purpose.
(h) Board Authority. The Board shall have the power to hear and determine all matters pertaining to the granting or termination of any retirement allowance provided for in this section, and the determination of the Board shall be final and conclusive.
(i) Loan Program for Disability Applicants. The Board shall, by rule, establish a loan program for members who have made application for disability retirement or upon whose behalf an application has been made in accordance with the provisions of this chapter, provided that the loan program shall be in compliance with the provisions of Internal Revenue Code Section 72(p). The loan program shall further provide that in no event shall the amount of funds loaned to any member exceed the amount of contributions and interest in the member’s LACERS account, and that once a Board determination is made granting or denying a member’s disability application, no further funds shall be lent to the member in connection with that application. Loan repayments will be suspended under this program as permitted under Section 414(u)(4) of the Internal Revenue Code.
(j) Right to Make Back Contributions When Disability Application Denied. Any member who has, at any time, filed an application for the benefit of a disability retirement, which application was thereafter denied by the Board of Administration upon a finding by said Board that the applicant had not become physically or mentally incapacitated so as to be incapable of performing the member’s duties, shall have the right to designate up to six (6) months of the period while such application was pending for purposes of acquiring credit towards City service as defined in Section 4.1051, subject to the following conditions:
(1) The designated period does not already entitle the member to service credit.
(2) The maximum period to be designated is six (6) months or the actual period of time while the application for disability retirement was pending, whichever was less.
(3) If a member has applied more than once for disability retirement, the cumulative total period to be designated may not exceed six (6) months or the time elapsed while applications were processed, whichever is less.
(4) The right granted herein shall be exercised in writing, filed with the Board, designating the period of City Service for which the member desires to receive retirement credit, and must be accompanied by a single payment of back contributions or by an irrevocable 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 making contributions during such period, based upon such member’s Compensation Earnable before the discontinuance of the member’s service, 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 payments thereof, the same shall be made pursuant to rules which shall be adopted by the Board establishing minimum amounts to be paid and the period of time therefor and providing the rate of interest which shall also be paid upon the unpaid balance of the same. Every member who makes up back contributions as provided herein shall be allowed credit for the period of City Service designated in the declaration filed by the member with the Board; provided, however, that should the member, for any reason, cease to be a member before making up the full amount thereof, 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.
(k) WPERP Service. Service with the Water and Power Employees’ Retirement Plan (WPERP) shall not count towards continuous service for purposes of Subsection (a) of this section unless the member has purchased credit for this WPERP service with the Retirement System or unless such service was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or prior Section 4.1060. Service credit with the WPERP shall not be included in the calculation of the member’s disability retirement allowance pursuant to Subsection (c) of this section unless the member has purchased credit for this WPERP service with the Retirement System or unless such service was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or prior Section 4.1060.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.
Amended by: Subsec. (k) added, Ord. No. 182,824, Eff. 12-19-13.