(a) For the purposes of Article 3 of Chapter 10 and Article 4 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 regular interest credited to the Member's account, as provided in Charter Section 1162(b).
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 of the Los Angeles City Employees' Retirement System, established in Charter Section 1104(b).
City Service or Service. Only those periods during which a Member (1) received compensation from the City as an employee or (2) during which the employee both 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, and made contributions to the Retirement 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 their years of service from the date such Member entered employment with the City of Los Angeles in a capacity that would entitle them 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 Rules.
Compensation Earnable. The base salary established for service in any City position or office for the period involved in any calculation required, plus any items of compensation that are designated as pension based in an applicable Memorandum of Understanding or City ordinance. All other items of compensation shall be excluded from the calculation of compensation earnable.
Continuous Service. Uninterrupted City service except that discontinuance of such service for any cause whatever, followed by re-entrance into City service within three (3) years from the date of such discontinuance, shall not be considered as an interruption in the continuity of service.
Cost of Living Amount or COLA. That portion of a retirement allowance resulting from adjustments made pursuant to Section 4.1080.16.
Dependent Parent. A person who 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 4.1080.9 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, rank, or office, at a regular salary, wage, or compensation.
Forfeit or Forfeiture shall have the meaning provided by Internal Revenue Code Section 401(a)(8).
Larger Annuity. The annuity funded entirely by the Member as provided in Section 4.1080.3(d).
Member or Tier 3 Member. An employee of the City of Los Angeles who meets the membership requirements contained in Section 4.1080.2. 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 3 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 3 unless otherwise specified.
Operative Date. The "effective date", unless a different date is specified by any ordinance adopted pursuant to the provisions of Charter Section 1168.
Public Safety Officer Member. The following definition shall apply only to Article 3 of Chapter 10 of the Los Angeles Administrative Code. A Member of Tier 3 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Member also shall include an Airport Peace Officer Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019 in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1080.8.1 and 4.1080.10.1, LACERS will adjust those benefits accordingly.
Public Safety Officer Former Member. The following definition shall apply only to Article 3 of Chapter 10 of the Los Angeles Administrative Code. A former Member of Tier 3 of the Retirement System who while a City employee and on the date that they separated from City Service or ceased to be a member of the Retirement System, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Former Member also shall include an Airport Peace Officer Former Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019 in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Former Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1080.8.1 and 4.1080.10.1, LACERS will adjust those benefits accordingly.
Public Safety Officer Retired Member. The following definition shall apply only to Article 3 of Chapter 10 of the Los Angeles Administrative Code. A retired Member of Tier 3 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Retired Member also shall include an Airport Peace Officer Retired Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019 in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Retired Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1080.8.1 and 4.1080.10.1, LACERS will adjust those benefits accordingly.
Regular Interest. Interest credited to the individual account of each member as provided in Charter Section 1162(b).
Reserve Basis. A system which provides for the accumulation and maintenance of a fund which 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, together with all subsequent adjustments thereto, if any.
Retired Member or Retired Tier 3 Member. A former member who is receiving a monthly benefit from Tier 3 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 Fund. The trust fund established for the Retirement System in Charter Section 1154.
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 earnable during the member’s last thirty-six (36) months of service or any other thirty-six (36) consecutive months of service designated by the member.
Since employees are paid on a bi-weekly basis, rather than a monthly basis, the Board shall adopt appropriate rules to convert a member’s bi-weekly compensation earnable into an amount that represents the member’s equivalent compensation earnable 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 fewer than thirty-six (36) months of continuous service, the salary for the missing months shall be at the rate of compensation for the member’s first month of service. This exception shall not apply if a member has completed any period of continuous service of thirty-six (36) months or longer for which he or she will receive service credit.
In calculating final compensation for the purposes of this article, compensation shall be limited to items of compensation designated as base salary by an applicable City ordinance or memorandum of understanding, and any items of compensation that are designated as pension based in an applicable memorandum of understanding or City ordinance. All other items of compensation shall be excluded from the calculation of final compensation.
When calculating final compensation for an employee who began 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 of the Los Angeles Administrative Code, unless expressly indicated otherwise by the text.
(d) Words used in the singular form in this article and in Article 4 of Chapter 11 of Division 4 of this Code shall be construed to include the plural meaning, and words used in the plural form shall be construed to include the singular meaning, unless expressly indicated otherwise by the text.
(e) Words used in the male form in this article and in Article 4 of Chapter 11 of Division 4 of this Code shall be construed to include the female meaning, and words used in the female form shall be construed to include the male meaning, unless expressly indicated otherwise by the text.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Amended by: Subsec. (a), Ord. No. 187,923, Eff. 7-9-23