(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. Should back contributions be made for any period of City employment prior to July 1, 2013, such contributions shall be in an amount equal to the portion of the contributions the member would have paid as normal contributions if that member had been a member of Tier 1 during such period, together with all regular interest which would have been credited thereon prior to the date of such payment, but excluding the portion that would have been paid as a survivor contribution.
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 that 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 of 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.
Persons who become members of Tier 2 on or after January 1, 2014, shall not be eligible to make back contributions under this subsection for periods of employment with the Department of Water and Power.
(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.
With regard to any period of City employment prior to July 1, 2013, the amount required to be paid under (1), above, shall be an amount equal to the portion of the contributions the member would have paid as normal contributions if the member had been a member of Tier 1 during such period, together with all regular interest which would have been credited thereon prior to the date of such payment, but excluding the portion that would have been paid as a survivor contribution.
(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 contribution.
(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 4.1058(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.
Amended by: Subsec. (a), Ord. No. 182,824, Eff. 12-19-13.