(a) Membership Provisions. Effective February 21, 2016, and ongoing, every employee shall become a member of Tier 3 of the Retirement System on the first day of employment in a position with the City in which the employee is not excluded from membership pursuant to the provisions of Subsection (c) of this section, unless the employee qualifies for Tier 1 membership pursuant to the exceptions to Tier 3 membership set forth in Subsection (b).
A City employee shall cease to be a member of the Retirement System upon termination of employment. A City employee shall also cease to be a member if a change in the employee’s employment results in an exclusion from membership pursuant to the provisions of Subsection (c) of this section or if the employee’s membership has been terminated.
A member or former member of LACERS who, after January 1, 2014, became ineligible to participate in LACERS by reason of transfer (including promotion, displacement, reclassification, or any other employment status change) to the Department of Water and Power, whose accumulated LACERS contributions remained on deposit in the Retirement Fund, and who is also a current, former, or retired member of the Water and Power Employees’ Retirement Plan (WPERP), shall be considered for retirement eligibility purposes only to be a member or former member of LACERS at the time such member or former member applies for retirement or deferred service retirement, as applicable, from LACERS, and shall be entitled to have the member’s or former member’s service and/or service credit with LACERS as provided in LACERS plan provisions governing Tier 1 or Tier 3, as applicable. As used herein, “service credit” shall have the meaning ascribed to it under Section VII.F of the plan provisions governing WPERP Tier 2.
(b) Exceptions from Tier 3 Membership for Members Who Qualify for Tier 1 Membership.
(1) Former Tier 1 Member with Contributions on Deposit. A former Tier 1 member who returns to membership in the Retirement System on or after February 21, 2016, shall return to membership in Tier 1 if the former member has pre-February 21, 2016, contributions that remain on deposit with the Retirement Fund on the date the former member begins City service in a position in which the former member again becomes eligible for membership in the Retirement System. In the event a former member’s pre-February 21, 2016, contributions have been forfeited to the Retirement Fund, the former member shall return to membership in Tier 1, provided that the former member is relieved from such forfeiture and said funds are returned to the former member’s individual account. Former members may not qualify to return to Tier 1 membership under this paragraph by making back contributions or redeposits of contributions after re-entry into City service.
(2) Tier 1 Disability Retirees Returned to Employment. A Tier 1 disability retiree who is returned to City employment on or after February 21, 2016, as provided in Subsections 4.1008(e) or (f), shall return to membership in Tier 1.
(3) Tier 2 Disability Retirees Returned to Employment. A Tier 2 disability retiree who is returned to City employment on or after February 21, 2016, as provided in Subsections 4.1058(e) or (f), shall return to membership in Tier 1.
(4) Former Tier 2 Member with Contributions on Deposit. A former Tier 2 member who returns to membership in the Retirement System on or after February 21, 2016, shall return to membership in Tier 1 if the former member has pre-February 21, 2016, contributions that remain on deposit with the Retirement Fund on the date the former member begins City service in a position in which the former member again becomes eligible for membership in the Retirement System. In the event a former member’s pre-February 21, 2016 contributions have been forfeited to the Retirement Fund, the ormer member shall return to membership in Tier 1, provided that the former member is relieved from such forfeiture and said funds are returned to the former member’s individual account. Former members may not qualify to return to Tier 1 membership under this
paragraph by making back contributions or redeposits of contributions after re-entry into City service. The City shall contribute the funds necessary to make the Retirement Fund whole, as determined by the actuary for the Retirement System, for any contributions that would have been made by the City and the former Tier 2 member had that former member been making contributions as a member of Tier 1 from the former member’s initial date of membership in LACERS. Such contributions will reflect the difference between the Tier 1 and Tier 2 normal cost rates calculated for the affected Tier 2 members adjusted with interest at the assumed earnings rate. Any such back contributions made by the City shall not be credited to the former member’s account, but shall be contributed solely for the purpose of making the Retirement Fund whole.
(5) Tier 2 Members. All employees who entered LACERS membership between July 1, 2013, and February 21, 2016, as Tier 2 members shall be members of Tier 1. The City shall contribute the funds necessary, as determined by the actuary for the Retirement System, to make the Retirement Fund whole for any contributions that would have been made by the City and all former Tier 2 members had those former Tier 2 members been members of Tier 1 from their respective initial dates of membership in LACERS. Such contributions will reflect the difference between the Tier 1 and Tier 2 normal cost rates calculated for the affected Tier 2 members adjusted with interest at the assumed earnings rate. Any such back contributions made by the City shall not be credited to the former Tier 2 member’s account but shall be contributed solely for the purpose of making the Retirement Fund whole.
(6) Certain Limited Term Retirement Plan Members. An elected official who was a member of the Limited Term Retirement Plan (LTRP) on February 20, 2016, and subsequently becomes a member of the Retirement System shall become a member of Tier 1, rather than Tier 3, provided that the elected official’s service as an elected official was continuous from February 20, 2016, until the date the elected official became a member of the Retirement System and all of the funds in the elected official’s individual account with the LTRP are transferred to the elected official’s member account with the Retirement System pursuant to the provisions of Section 4.1080.18(c)(1).
(7) Certain Part-Time Employee Members. As provided in Subsection (d), employees who first commenced employment with the City prior to February 21, 2016, in a position eligible for part-time employee membership pursuant to the requirements of Subsection (c)(8), who become eligible for LACERS membership on or after February 21, 2016, shall become members of LACERS Tier 1. An employee who first commenced employment with the City in a position eligible for part-time employee membership prior to February 21, 2016, who terminates employment with the City but subsequently returns to City employment on or after February 21, 2016, and thereafter becomes eligible for LACERS membership, shall become a member of Tier 1.
(8) Airport Peace Officers Appointed Prior to January 7, 2018. Effective January 7, 2018, all Members of Tier 3 who were appointed prior to January 7, 2018 and who, on that date, were sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports, in class codes 3225-1, 3225-2, 3225-3, 3202-0, 3202-1, 3202-2, 3236, 3226-0, 3226-1, 3226-2, 3227, 3203, 3203-9, 3228-0, 3228-1, 3228-2, 3205, 3234 or 3232, shall be Members of Tier 1 of the Retirement System and shall be subject to all the benefits and conditions of entitlement of that tier, including the obligation to make an irrevocable written election to either remain in Tier 1 of the Retirement System as an Airport Peace Officer Member or become a member of Tier 6 of LAFPP, as described in Section 4.1002(e). Upon becoming a Member of Tier 1 of the Retirement System pursuant to this section, the Member's irrevocable written election under Section 4.1002(e) shall take effect in the manner described in that section. Such Members shall not be entitled to elect to remain in Tier 3 of the Retirement System. The Department of Airports shall contribute to the Retirement System the funds necessary, as determined by the actuary for the Retirement System, to make the Retirement Fund whole for any contributions that would have been made by the City and these former Tier 3 Members had those members been members of Tier 1 from their respective initial dates of membership in LACERS. Such contributions shall be made regardless of whether a former Tier 3 Airport Peace Officer Member elects to remain in Tier 1 of the Retirement System or become a member of Tier 6 of LAFPP. Such contributions will reflect the difference between the Tier 1 and Tier 3 normal cost rates calculated for the affected Tier 3 members adjusted
with interest at the assumed earnings rate. Any such back contributions made by the Department of Airports shall not be credited to any individual member’s account but shall be contributed solely for the purpose of making the Retirement Fund whole.
(c) Exclusions from Membership. The following employees shall not be members of the Retirement System:
(1) Persons employed by the Board of Education or School District.
(2) Persons serving on any Board of Commissioners whose compensation consists of attendance fees per meeting attended.
(3) Members of the Fire and Police Pension Plan and members of the Water and Power Employees’ Retirement Plan, provided; however, that this exclusion shall not operate during any period of City service in which any such person is employed in any capacity which renders that person ineligible for current membership in said plans. Nothing in this chapter shall be construed to prevent any person entitled to the payment of any benefit on account of service as a member of the Fire and Police Pension Plan or the Water and Power Employees’ Retirement Plan from receiving payment on account of any benefit to which such person is entitled as a member of this Retirement System; provided, nevertheless, that no payment shall be made under provisions of this chapter, based upon any period of service for which such person is entitled to receive or is receiving any benefit, under the Fire and Police Pension Plan or the Water and Power Employees’ Retirement Plan.
(4) Inmates of City institutions who are allowed compensation for such services as they are able to perform.
(5) Persons in City institutions principally for the purpose of receiving training but who receive compensation.
(6) Persons employed under contract for a definite period or for the performance of a particular special service.
(7) Persons employed only on call or for seasonal work.
(8) Any person employed on an intermittent, temporary, or part-time basis, unless the person (i) is a member at the time the person commences to serve on such a basis; or (ii) the person’s appointing authority certifies to the Board of Administration, under penalty of perjury, that the person’s employment is regular and continuous and will likely extend for at least one year and require service for at least one-half (1/2) the time required of full-time employees in the same group or class of service; or (iii) the person’s appointing authority certifies to the Board of Administration, under penalty of perjury, that the person has satisfied the requirements for certification as a part-time employee member of the Retirement System, as such requirements have been set forth under an applicable memorandum of understanding.
(9) Any officer of the City elected for a fixed term who files a written declaration of the officer’s desire not to become a member of the System within ninety (90) days following the last day of the calendar month during which the first deduction on account of member contributions to the Retirement Fund is taken. When the declaration is filed, any contributions already taken attributable to the fixed term to which the officer was just elected, including interest thereon, shall be transferred to the officer’s account with the Limited Term Retirement Plan and said officer shall have no right to benefits from the System for any periods for which such contributions were taken. Any officer who has filed such a declaration may revoke it in writing and, upon filing the written revocation with the Board of Administration, shall become a member of the System.
In addition to persons elected for a fixed term as an officer of the City, any person appointed to fill a vacancy in an elected office for a fixed term, whether for the full remainder of such term or any portion thereof, may choose not to become a member of the System by filing the declaration procedure provided in this paragraph. Such a person shall be considered an elected official of the City for purposes of participation in the Limited Term Retirement Plan.
Notwithstanding the foregoing, whenever any retired member of the System is elected as an officer of the City, the retired member shall not re-enter membership in the System, but shall instead become a participant in the Limited Term Retirement Plan, during which time the retired member shall continue to receive benefits as a retired member of the System.
(10) Any person undergoing training who will become a member of the Fire and Police Pension Plan upon completion of training.
(11) Any retired member of the System employed by the City on a temporary basis not to exceed one hundred and twenty (120) days pursuant to Charter Section 1164.
(d) Part-Time Employee Members. Employees who qualify for membership in the Retirement System pursuant to Subsection (c)(8) herein shall be referred to as part-time employee members herein. As provided in Subsection (b)(7), employees who commence employment with the City prior to February 21, 2016, in a position eligible for part-time employee membership in LACERS pursuant to the requirements of Subsection (c)(8), who become eligible for part-time employee membership pursuant to the requirements of Subsection (c)(8) on or after February 21, 2016, shall become members of LACERS Tier 1.
Part-time employee members shall have their compensation earnable prorated based upon hours paid per pay period for purposes of the payment of member contributions in Section 4.1080.3(a) and 4.1080.3(b), and shall receive prorated service credit based on the hours worked per pay period for purposes of the calculation of their service retirement allowance, deferred service retirement allowance, and the amount of the retiree health subsidy to which they are entitled, if any, under Chapter 11 Division 4 of this Code. A person who qualifies as a part-time employee member shall continue in this status until the person’s status changes to that of a full-time employee or until the person’s membership in the Retirement System is terminated.
Any part-time employee member whose employment status changes in such manner that the part-time employee member would be ineligible for membership pursuant to the provisions of Subsection (c)(8) if not already a member, may file a written application, together with proof of status change, with the Board of Administration requesting that the part-time employee member’s membership in the Retirement System be terminated. Provided that the part-time employee member provides sufficient proof of status change, the Retirement System shall approve the request. If such request is approved, the former member shall become a member of the Pension Savings Plan for Part-time, Seasonal and Temporary Employees established in Chapter 16 of this Code, provided that the former member otherwise qualifies to participate in such plan. Unless federal law permits a withdrawal of contributions, the former member’s accumulated contributions shall remain in the fund so long as the former member continues to be employed, in any capacity, by the City.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Amended by: Subsec. (a) amended and Subsec. (b)(8) added, Ord. No. 184,853, Eff. 4-6-17.