Loading...
(a) Normal and Survivor Contribution Rate. Each member shall contribute by salary deduction to the Retirement Fund at the rate of seven percent (7%) of the member’s compensation earnable. Of this seven percent (7%), one-half percent (0.5%) shall be the survivor contribution portion, and the remaining six and one-half percent (6.5%) shall be the normal contribution. Contributions paid pursuant to this section shall be deposited into each member’s individual account and credited with interest as provided in Charter Section 1162. No portion of a member’s contributions shall be paid into the 401(h) account. No portion of a member’s contributions shall be credited to the ERIP Cost Obligation under the Early Retirement Incentive Program provided by Section 4.1033 of this Code. The ERIP Cost Obligation is not an obligation of Tier 3 members, and, conversely, the recoupment by the Retirement System of the ERIP Cost Obligation shall have no impact on the seven percent (7%) normal contribution rate for Tier 3 members.
(b) Additional Contribution to Defray Cost of Providing Retiree Medical Plan Premium Subsidy. In addition to the contributions required pursuant to Subsection (a) herein, each member shall contribute by salary deduction four percent (4%) of the member’s compensation earnable to defray the cost to the City of providing the benefit set forth in Section 4.1126. The rate of the additional contribution described in this subsection is intended to defray the cost to the City to provide the benefit set forth in Section 4.1126. No portion of a member’s contributions shall be paid into the 401(h) account.
(c) Pick Up of Employee Contribution. The City shall pick up, by salary deduction, all employee contributions as provided in Sections 4.1500 through 4.1504 of Chapter 15 of Division 4 of this Code to the extent that the City’s pick up of employees’ contributions continues to be excludable from the gross income of the affected employees under the provisions of Internal Revenue Code Section 414(h)(2).
(d) Optional Additional Contributions under Larger Annuity Program Established by the Board. The Board of Administration shall, by rule, provide for the making by members of additional contributions to provide for a larger annuity benefit at the time of retirement. A member shall not be permitted to make such additional contributions, however, if doing so would cause the member’s benefits to exceed the Internal Revenue Code limitations referenced in Section 4.1080.26. All larger annuity benefits funded by the making of additional contributions by members, as authorized in this section, shall be determined by the actuary for the Retirement System to be cost-neutral.
Solely for the purpose of making additional contributions to provide a larger annuity benefit at the time of retirement, the Board of Administration may accept, subject to any limitations imposed by federal law, a direct rollover distribution of funds from the City of Los Angeles 457 Deferred Compensation Plan after the date of the member’s retirement provided that: the member’s application to purchase a larger annuity benefit is received prior to the effective date of the member’s retirement; the member, prior to the member’s retirement, shall have provided the Deferred Compensation Plan with the written authorization that is required for funds to be transferred to the Retirement System immediately after the member’s retirement; the rollover is completed as soon as administratively feasible; and the larger annuity benefit is not payable to the member until after the funds have been received.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Amended by: Subsec. (d), Ord. No. 184,853, Eff. 4-6-17.
“Former member” shall include both a City employee who ceases to be a member upon separating from City service and a City employee who continues to be employed by the City, but becomes ineligible for membership in the Retirement System. For purposes of this section, former member shall not include, a retired member who is receiving any retirement allowance provided in this Article.
(a) Refund of Contributions. Upon written demand made to the Board of Administration, a former member of Tier 3 shall be paid the former member’s accumulated contributions. But contributions shall not be refunded to a former member who is employed in any capacity by the City unless such a refund is permitted under federal law. After a former member’s contributions have been refunded, the former member shall have no right to any benefits provided by the Retirement System.
(b) Contributions Remain in the Fund. A former member of Tier 3 may permit the former member’s accumulated contributions to remain in the Retirement Fund. A former member’s individual account shall be credited with regular interest in the same manner as applies to a member’s individual account.
A former member whose contributions remain on deposit in the Retirement Fund and who is eligible for service retirement may apply to retire as provided in this article. If such former member fails to file a written retirement application prior to attaining age seventy and one-half (70 1/2), the Retirement System, pursuant to rules to be adopted by the Board of Administration, shall make such mandatory minimum distributions as are required by the Internal Revenue Code. If mandatory minimum distributions cannot be paid to a former member for any reason, such as the former member’s failure to cooperate or where the former member’s whereabouts is unknown and the Retirement System has followed Internal Revenue Service procedures to locate the former member, then such funds shall be forfeited to the Retirement Fund, provided that the former member shall be relieved from such forfeiture upon the making of a valid claim for relief, determined at the sole discretion of the Board of Administration.
If a former member’s years of service are insufficient to qualify the former member for a deferred service retirement, and the former member fails to request a refund of contributions pursuant to Subsection (a) above within ten (10) years from the date the former member’s membership terminated or from the date the former member was last employed by the City, whichever occurs later, the former member’s accumulated contributions shall be forfeited to the Retirement Fund. The former member shall be relieved from such forfeiture, however: (1) upon returning to membership in the Retirement System, at which time said funds shall be returned to the former member’s individual account pursuant to rules to be adopted by the Board of Administration; or (2) upon making a valid claim for relief from forfeiture, as determined at the sole discretion of the Board of Administration. If any such former member attains age seventy and one-half (70 1/2) with contributions still on deposit in the former member’s account, the Retirement System, pursuant to rules to be adopted by the Board of Administration, shall make such mandatory minimum distributions as are required by the Internal Revenue Code.
In the event that a former member whose contributions or other benefits have been forfeited pursuant to this subsection is deceased, any person or entity who would be entitled to the payment of the former member’s funds upon the former member’s death may make a claim for relief from forfeiture on the deceased’s behalf.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
(a) Eligibility for Service Retirement and Retirement Factors. This subsection sets forth the age and service eligibility requirements and retirement factors for Tier 3 members who retire directly from City employment.
(1) Early Retirement Prior to Age 60. A Tier 3 member with thirty (30) or more years of service, including at least five (5) years of continuous City service, shall be eligible to retire prior to age sixty (60) with a retirement factor of two percent (2%).
(i) If the member is age fifty-five (55) or older at the date of retirement, the member’s retirement allowance shall not be subject to reduction on account of age.
(ii) If the member is younger than age fifty-five (55) at the date of retirement, the member’s retirement allowance shall be reduced by the applicable early retirement reduction factor set forth in Section 4.1080.7, Subsection (c).
(2) Normal Retirement at Age 60.
(i) A Tier 3 member shall be eligible to retire at age sixty (60) or older with a retirement factor of one and one-half percent (1.5%), provided the member shall have at least ten (10) years of service, including at least five (5) years of continuous City service.
(ii) A Tier 3 member shall be eligible to retire at age sixty (60) or older with a retirement factor of two percent (2%), provided the member shall have at least thirty (30) years of Service, including at least five (5) years of continuous City service.
(3) Enhanced Retirement at Age 63.
(i) A Tier 3 member shall be eligible to retire after reaching age sixty-three (63) with a retirement factor of two percent (2%), provided the member has at least ten (10) years of service, including at least five (5) years of continuous City service.
(ii) A Tier 3 member shall be eligible to retire after reaching age sixty-three (63) with a retirement factor of two and one-tenth percent (2.1%), provided the member has at least thirty (30) years of service, including at least five (5) years of continuous City service.
(b) Continuous City Service Requirement. Service purchased under Section 4.1080.20 shall not count toward establishing the minimum five (5) years of continuous City service required for retirement under this section. The requirement for five (5) years of continuous City service set forth in this section, however, may be satisfied based upon service with a reciprocal system to the extent necessary to comply with the provisions of Section 4.1096.
(c) Service with the Water and Power Employees’ Retirement Plan. Service with the Water and Power Employees’ Retirement Plan (WPERP) shall not be considered for the purpose of determining the member’s length of service for retirement eligibility under this section unless such service was transferred to the Retirement System pursuant to reciprocity between LACERS and WPERP as provided by current Section 4.1095 or former Section 4.1060 of this Code, in which case LACERS shall consider such service to the extent required by those Code sections.
(d) Retirement Application Requirements. A Tier 3 member who is eligible for retirement under this section may file a service retirement application with the Board of Administration specifying a retirement date. The application shall be filed not less than thirty (30) or more than sixty (60) days prior to the requested retirement date, except that in the event a member has been notified by the City that the member will be laid off, the application may be filed less than thirty (30) days in advance and shall be accepted, provided it is filed with the Board while the member is still employed and specifies a retirement date prior to the member’s termination. Under no circumstance shall an applicant be entitled to a retirement date earlier than the date upon which the retirement application is filed.
(e) Calculation of Retirement Allowance. A member who retires under this section shall have the member’s retirement allowance calculated as set forth in Section 4.1080.7.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
(a) Eligibility for Deferred Service Retirement and Retirement Factors. This subsection sets forth the age and service eligibility requirements, and the applicable retirement factors, for deferred service retirement for Tier 3 members. To be eligible for a deferred service retirement from Tier 3, a former member’s Tier 3 contributions must remain on deposit in the Retirement Fund.
(1) Full Retirement with Unreduced 1.5% Retirement Factor. A former member shall be eligible for a full (unreduced) deferred service retirement allowance:
(i) at age sixty (60) or older, with five (5) years of continuous City service, provided that ten (10) years have elapsed since the former member first became a member of the Retirement System; or
(ii) at age seventy (70) or older, with five (5) years of continuous City service, regardless of the number of years that have elapsed since the former member first became a member of the Retirement System.
A former member who is eligible for full (unreduced) deferred service retirement under this subsection shall have the former member’s retirement allowance calculated as set forth in Section 4.1080.7, applying a one and one-half percent (1.5%) retirement factor.
(2) Full Retirement with Unreduced 2.0% Retirement Factor. A former member shall be eligible for a full (unreduced) deferred service retirement allowance:
(i) at age sixty (60), with thirty (30) years of continuous City service, provided that ten (10) years have elapsed since the first date of membership; or
(ii) at age sixty-three (63), with ten (10) years of service, including five (5) years of continuous City service.
A former member who is eligible for full (unreduced) deferred service retirement under this subsection shall have the former member’s retirement allowance calculated as set forth in Section 4.1080.7, applying a two percent (2.0%) retirement factor.
(3) Full Retirement with Unreduced 2.1% Retirement Factor. A former member shall be eligible for a full (unreduced) deferred service retirement allowance at age sixty-three (63), with thirty (30) years of continuous City service, provided that ten (10) years have elapsed since the first date of membership.
A former member who is eligible for full (unreduced) deferred service retirement under this subsection shall have the former member’s retirement allowance calculated as set forth in Section 4.1080.7, applying a two and one-tenths percent (2.1%) retirement factor.
(4) Early Retirement with 1.5% Retirement Factor and Age Reduction Factor. A former member who is at least age fifty-five (55) but not yet sixty (60), with five (5) years of continuous City service, may retire with an age-based reduced retirement allowance, provided ten (10) years have elapsed since the former member first became a member of the Retirement System.
A former member who is eligible for early retirement under this subsection shall have the former member’s retirement allowance calculated as set forth in Section 4.1080.7, applying a one and one-half percent (1.5%) retirement factor, with an age-based early retirement reduction factor as set forth in Section 4.1080.7, Subsection (c).
(b) Continuous Service Requirement. Service purchased under Section 4.1080.20 shall not count toward establishing the minimum five (5) years of continuous City service required for retirement under this section. The requirement for five (5) years of continuous City service set forth in this section, however, may be satisfied based upon service with a reciprocal system to the extent necessary to comply with the provisions of Section 4.1096. A former member does not need to have five (5) years of continuous service if the former member has been a member while employed for any period of time as a part-time employee whose membership terminates for any reason on or after October 18, 1992.
(c) Service with the Water and Power Employees’ Retirement Plan. A former member whose contributions remain on deposit with the Retirement System and who either:
(1) is employed in a position with the Department of Water and Power (DWP) in which the former member is a member of WPERP; or
(2) is a retiree of the DWP who qualified for retirement under Tier 1 of WPERP with a Minimum Pension C, or who qualified for retirement from Tier 2 of WPERP under Subsection F of Section VIII, shall be eligible to retire as a former member under the provisions of this section. Service with the Water and Power Employees’ Retirement Plan (WPERP) shall be considered for the purpose of determining the member’s length of service for retirement eligibility under this section where such service was transferred to the Retirement System pursuant to reciprocity between LACERS and WPERP as provided by current Section 4.1095 or former Section 4.1060 of this Code. LACERS shall consider such service to the extent required by those Code sections.
(d) Application Requirements. A former member of Tier 3 who is eligible for a deferred service retirement must notify the Retirement System in writing when the former member wants to retire, provided that the date of the former member’s retirement may not be earlier than the date that the written notification is received by the System.
(e) Calculation of Retirement Allowance. A former member who retires under this section shall have the former member’s retirement allowance calculated as set forth in Section 4.1080.7.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Retirement factor × (multiplied by) City Service Credit × (multiplied by) final compensation = (equals) service retirement allowance.
Each service retirement allowance shall be allocated between the following two components:
(1) An annuity which shall be the actuarial equivalent of the retiree’s accumulated contributions at the time of retirement (excluding any additional contributions paid to provide a larger annuity at the time of retirement), calculated in accordance with approved actuarial methods as of the date of retirement; and
(2) A pension, in the amount of the remaining balance, payable to the retiree on account of the retiree’s service.
(b) City Service Credit Based Upon Time Working for the Department of Water and Power under the Water and Power Employees’ Retirement Plan. In calculating the service or deferred retirement allowance pursuant to the formula set forth in Subsection (a), City service credit based upon service with the Water and Power Employees’ Retirement Plan (WPERP) shall be included where such service credit was transferred to the Retirement System pursuant to reciprocity between LACERS and WPERP, as provided by current Section 4.1095 or former Section 4.1060 of this Code. LACERS shall consider such service credit to the extent required by those Code sections.
(c) Age Based Reduction Factor for Early Retirement. For members who retire pursuant to Section 4.1080.5(a)(1)(ii), and former members who retire pursuant to Section 4.1080.6(a)(4), an age-based reduction shall be made by multiplying the retirement allowance as calculated in Subsection (a) by the factor set forth in the table.
Early Retirement Reduction Factors
45 | 0.6250 |
45 1/4 | 0.6325 |
45 1/2 | 0.6400 |
45 3/4 | 0.6475 |
46 | 0.6550 |
46 1/4 | 0.6625 |
46 1/2 | 0.6700 |
46 3/4 | 0.6775 |
47 | 0.6850 |
47 1/4 | 0.6925 |
47 1/2 | 0.7000 |
47 3/4 | 0.7075 |
48 | 0.7150 |
48 1/4 | 0.7225 |
48 1/2 | 0.7300 |
48 3/4 | 0.7375 |
49 | 0.7450 |
49 1/4 | 0.7525 |
49 1/2 | 0.7600 |
49 3/4 | 0.7675 |
50 | 0.7750 |
50 1/4 | 0.7825 |
50 1/2 | 0.7900 |
50 3/4 | 0.7975 |
51 | 0.8050 |
51 1/4 | 0.8125 |
51 1/2 | 0.8200 |
51 3/4 | 0.8275 |
52 | 0.8350 |
52 1/4 | 0.8425 |
52 1/2 | 0.8500 |
52 3/4 | 0.8575 |
53 | 0.8650 |
53 1/4 | 0.8725 |
53 1/2 | 0.8800 |
53 3/4 | 0.8875 |
54 | 0.8950 |
54 1/4 | 0.9025 |
54 1/2 | 0.9100 |
54 3/4 | 0.9175 |
55 | 0.9250 |
55 1/4 | 0.92875 |
55 1/2 | 0.93250 |
55 3/4 | 0.93625 |
56 | 0.94000 |
56 1/4 | 0.94375 |
56 1/2 | 0.94750 |
56 3/4 | 0.95125 |
57 | 0.95500 |
57 1/4 | 0.95875 |
57 1/2 | 0.96250 |
57 3/4 | 0.96625 |
58 | 0.97000 |
58 1/4 | 0.97375 |
58 1/2 | 0.97750 |
58 3/4 | 0.98125 |
59 | 0.98500 |
59 1/4 | 0.98875 |
59 1/2 | 0.99250 |
59 3/4 | 0.99625 |
60 and over | 1.00
|
(d) Adjustment for Prior Disability Retirement. The retirement allowance calculated in Subsection (a) shall be subject to the following adjustment, if applicable. If the retiree had previously been on disability retirement, the retiree’s service retirement allowance shall be reduced by an amount equal to the annuity which the total of the disability annuity payments made to the retiree would have provided had they still been part of the retiree’s accumulated contributions at the time of retirement unless, upon returning to service from disability retirement, a member elected, as provided by Board rule, to make additional contributions in order to restore part or all of the retiree’s annuity.
(e) Adjustment for Prior Minimum Distribution. The retirement allowance calculated in Subsection (a) shall be subject to the following adjustment, if applicable. If the retiree previously received any minimum distribution required by the Internal Revenue Code, the retiree’s service retirement allowance shall be subject to adjustment as provided in rules to be adopted by the Board of Administration.
(f) Cap on Allowances. In no event shall any Tier 3 retirement allowance exceed eighty percent (80%) of the member or former member’s final compensation, except where the allowance is based solely upon the annuity component funded by the retiree’s accumulated contributions and thus does not include a pension component. The eighty percent (80%) of final compensation limitation upon the retirement allowance set forth above, which is subject to one exception as noted, shall apply to the member or former member’s retirement allowance prior to any adjustments that may be required as a result of the purchase of an additional annuity, the provision for a continuance to a survivor, or any other election authorized in this section.
(g) Internal Revenue Limitations. All Internal Revenue Code limitations set forth in Section 4.1080.1(b) shall be applicable to benefits payable under Tier 3. In addition, Tier 3 members or former members shall not be entitled to the payment of benefits to the extent such benefits are reduced by the limitations on benefits imposed by Section 415 of the Internal Revenue Code. Tier 3 retirees shall not be eligible to participate in the Excess Benefit Plan established in Section 4.1800.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Amended by: Subsec. (c), Ord. No. 184,853, Eff. 4-6-17.
(a) Application for Disability Retirement. Any Member who has five (5) 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 any person acting the Member’s behalf, or of the head of the department in which such Member is employed. Where the Member’s incapacity has been continuous from the discontinuance of such service, any application for disability retirement may be made at any time within, but not exceeding, one (1) year after the discontinuance of the service of such employee or the termination of any duly authorized sick leave with pay.
(b) Disability Determination. The Board shall cause each Member who applies for disability retirement to be examined by, and a written report thereon rendered by, at least three (3) regularly licensed, practicing physicians selected by the Board. If the Member is terminally ill, however, the Board only shall require the Member to be examined by one (1) 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 in connection with the disability retirement application, the Board finds that: (1) the Member has become physically or mentally incapacitated and is incapable, as a result thereof, of performing the Member’s duties; and (2) such disability was not due to intemperance or the willful misconduct of such Member, then the Board shall determine that 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 that 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-seventieth (1/70) of the Member’s Final Compensation, as defined in Section 4.1080.1(b), calculated as of the date of retirement, multiplied by the number of years of City Service Credit of such Member.
If the sum resulting from this calculation should be an amount that represents less than one-third (1/3) of the Member’s Final Compensation, the disability retirement allowance shall be one-third (1/3) of the Member’s Final Compensation.
(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 they were waiting for the application to be processed and prior to the Board’s receipt of the physician reports required under Subsection (b) of this section, 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.
The Board shall have the authority 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.
In the event that an applicant’s disability retirement is granted by the Board after their death, whether pursuant to the provisions of this subsection or based upon three or more reports that were obtained from physicians selected by the Board, and they leave a survivor eligible for a continuance of their disability retirement allowance as provided in Section 4.1080.12, the disability retirement allowance payable to such deceased Member shall be reduced so as to provide for a one hundred percent (100%) disability survivorship allowance as if such deceased applicant had elected to provide a one hundred percent (100%) continuance benefit under the provisions of Section 4.1080.14(a)(1).
(e) Review of Disability Retirees. The Board, from time to time in its discretion, may require any beneficiary under the age of sixty (60) years who shall have been retired because of disability to submit to medical examination by one or more 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 determines that such beneficiary is not so incapacitated, the beneficiary shall be restored to duty in the position held by them at the time of the disability retirement order, and, upon the beneficiary’s return to active service, the beneficiary’s retirement allowance shall be canceled.
The Board, at its discretion, may cancel a retirement allowance where a beneficiary fails, neglects, or refuses either to submit to a medical examination ordered by the Board or to return to active service when deemed no longer incapacitated and within such reasonable time as determined by the Board. If the Board so determines, the only right that the beneficiary shall have as a former Member pursuant to Section 4.1080.4 of this article 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 them 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, they shall have the rights set forth in Section 4.1080.4, provided that, in the event they requests a refund of contributions, the accumulated contributions shall be reduced by any payments made on account of the annuity provided herein.
(f) Consensual 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 they have been or shall be retired, may be re-employed in a different vacant position if the Board of Civil Service Commissioners finds that they are capable of performing the duties of such position. 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 this subsection. Upon the re-employment of such person, the person’s disability retirement allowance shall cease, and, should they be eligible for membership in the Retirement System, the person again shall become a Member of the Retirement System.
(g) Rights and Obligations upon Re-Employment. Any beneficiary who retires for disability as a Tier 3 Member and subsequently 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 3. The balance, if any, of their Accumulated Contributions, after deducting the annuity payments made to the 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. Upon returning to service from disability retirement, a Member may elect to make additional contributions to the Member’s individual retirement account, as provided by Board rule, in order to restore part or all of the Member’s annuity.
A beneficiary 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.
(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 establish a loan program, by rule, 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 section, provided that the loan program shall be in compliance with the provisions of Internal Revenue Code Section 72(p). The loan program further shall 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 loaned 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 disability retirement that was denied by the Board of Administration upon a finding that the applicant had not become physically or mentally incapacitated so as to be incapable of performing the applicant’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 4.1080.1(a), 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 fewer.
(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 Service 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 they would have made to the Fund had they 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 they so made the same, would have been credited thereon prior to the date of such payment. Installment payments shall be made pursuant to rules adopted by the Board. 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 them with the Board. If the Member ceases to be a Member of the System before making up the full amount thereof, the Member shall be allowed Service Credit, counter-calendarwise, for the same portion of such designated period as the amount made up by the Member. If the Member ceases to be a Member by reason of the Member’s death, Service Credit shall be allowed for the whole period designated by them if their surviving spouse or Domestic Partner exercises the option granted in this article to any surviving spouse or Domestic Partner to make a single payment of all of the unpaid installments with accrued interest thereon.
(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. Service with the WPERP shall be included as years of service in the calculation of the Member’s disability retirement allowance pursuant to Subsection (c) of this section, where such service was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or former Section 4.1060. LACERS shall consider such service to the extent required by those Code sections.
(l) A Public Safety Officer Member who applies for disability retirement shall be subject to Section 4.1080.8.1, and the provisions of this Section 4.1080.8 shall not apply.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Amended by: Subsec. (e), Ord. No. 184,853, Eff. 4-6-17; In Entirety, Ord. No. 187,923, Eff. 7-9-23.
(a) Application for Disability Retirement. Any Public Safety Officer Member who has completed Peace Officer Standards and Training and taken the Oath of Office, applying for a service-connected disability, or who has five (5) or more years of Continuous Service, applying for a nonservice-connected disability, who has become physically or mentally incapacitated and who is incapable, as a result thereof, of performing their duties, may be retired upon written application of such Member, or any person acting on their behalf, or on behalf of the head of the department wherein such Member is employed. Any such application may be made at any time within, but not exceeding, one (1) year after the discontinuance of the service of such employee or the termination of any duly authorized sick leave with payment, provided such incapacity has been continuous from the discontinuance of such service. No application may be filed under this Section 4.1080.8.1 prior to March 25, 2022.
(b) Service-Connected Disability. Upon the filing of their written application for a disability retirement allowance or upon the filing of a written application by any person acting on their behalf or on behalf of the head of the department wherein such Member is employed, any Public Safety Officer Member whom the Board shall determine has become physically or mentally incapacitated by reason of injuries received or sickness caused by the discharge of the duties of such person as an employee sworn in, as provided by Penal Code Section 830.1 or Section 830.31, to perform peace officer functions for the department wherein such Member is employed, and who is incapable as a result thereof from performing their assigned duties, or those to which they would be assigned within their civil service classification if returned to duty, shall be retired by order of the Board from further active duty as a Public Safety Officer Member.
A Public Safety Officer Member’s incapacity is caused by the discharge of their duties if there is clear and convincing evidence that the discharge of the Member’s duties is the predominant cause of the incapacity.
A Public Safety Officer Member retired under the provisions of this subsection shall be paid thereafter a monthly service-connected disability retirement allowance in an amount which shall be equal to the same percentage of the Member’s Final Compensation as the Board shall determine, from time to time, to be the percentage of their disability. Such retirement allowance shall be in an amount of not less than 30% and not more than 90% of the Retired Public Safety Officer Member’s Final Compensation, but in no case shall the retirement allowance be less than the equivalent of 2% of Final Compensation for each year of Service of the Retired Public Safety Officer Member.
(c) Nonservice-Connected Disability. Upon the filing by any Public Safety Officer Member’s written application for a disability retirement allowance who shall have five (5) or more years of continuous service, or upon the filing of a written application by any person acting on the Member’s behalf, or on behalf of the head of the department wherein such Member is employed, for any Public Safety Officer Member whom the Board shall determine has become physically or mentally incapacitated by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the duties of such person, and who is incapable as a result thereof from performing their assigned duties or those to which they would be assigned within the Member’s civil service classification if returned to duty, shall be retired by order of the Board from further active duty as an employee. As a further condition of entitlement to such a retirement, the Board also shall determine that such disability was not due principally to or caused by intemperance or the willful misconduct of the Member intended to entitle them to a nonservice-connected disability retirement.
A Public Safety Officer Member retired under the provisions of this subsection shall be paid thereafter a monthly nonservice-connected disability retirement allowance in an amount which shall be equal to the same percentage of the Retired Public Safety Officer Member’s Final Compensation as the Board shall determine, from time to time, to be the percentage of their disability, but such retirement allowance shall be in an amount of not less than 30% and not more than 50% of the Retired Public Safety Officer Member’s Final Compensation.
(d) Determination of Disability. The Board shall have the power to hear and determine all matters pertaining to the granting and denying of any application for a disability retirement. The Board shall cause each Member who applies to be examined by, and a written report thereon rendered by, at least three (3) regularly licensed, practicing physicians selected by the Board, unless the Member is terminally ill, in which case the Board only shall require the Member to be examined by one (1) such physician selected by the Board. The Board shall hold a hearing with respect to such application. The Board shall receive such other evidence relating to or concerning the Member’s disability or claimed disability as may be presented to it.
The Board first shall determine whether or not the Member is incapable of performing their duties or those to which they would be assigned within the Member’s civil service classification if returned to duty. If the Board were to determine that they are not so incapable, it then shall be the duty of the Board to deny the application. If the Board were to determine that they are so incapable, it then shall determine, pursuant to the language used in Subsections (b) and (c) of this section, whether their incapacity or disability is service-connected or nonservice-connected. The Board then shall determine the percentage of the Member’s incapacity or disability, within the limitations prescribed in Subsections (b) and (c) of this section, and shall grant the application accordingly. If the Board were to determine that the incapacity or disability was principally due to or caused by voluntary action by the Member intended to entitle them to a nonservice-connected disability retirement allowance, or due to intemperance or the willful misconduct of such Member, as defined in rules promulgated by the Board, it then shall be the duty of the Board to deny the application. In the case of any Public Safety Officer Former Member, the Board, in order to grant any application filed by them for a disability retirement, also must determine, in addition to all of the foregoing, that any existing incapacity or disability upon their part occurred prior to the termination of their active status, and that such incapacity or disability had been continuous up to the date of the Board’s determinations.
The Board upon its own motion or upon the written request of any Retired Public Safety Officer Member, retired pursuant to Subsections (b) or (c) of this section, shall have the power to consider new evidence pertaining to the case of any such Retired Member and to increase or decrease the percentage of their incapacity or disability within the limitations prescribed in Subsections (b) or (c) of this section. Any such increase or decrease shall be based only upon the injuries or sickness for which they were retired.
The Board shall adopt a disability rating schedule by rule to assist in standardizing disability retirement awards.
(e) Death of Applicant Prior to Board Action. If a Public Safety Officer Member dies while they were waiting for the application to be processed, the death and survivorship benefits payable to their survivor(s) shall be determined under Section 4.1080.10.1 herein.
(f) Termination of Disability Retirements. The Board shall have the power to hear and determine upon its own motion all matters pertaining to the termination or reduction of any disability retirement pursuant to the provisions of this subsection.
(1) Retirements Granted to Persons Whose Active Status Terminated By Reason of Disability Retirement. The retirement of any Retired Public Safety Officer Member, retired pursuant to Subsections (b) or (c) of this section and whose active status as an employee sworn in, as provided by Penal Code Section 830.1 or Section 830.31, to perform peace officer functions for the department wherein the Member is employed, had been terminated by reason of their retirement, shall cease when the incapacity or disability for which they had been retired shall cease and they either:
(A) shall have been restored to active duty as an employee sworn in, as provided by Penal Code Section 830.1 or Section 830.31, to perform peace officer functions for the department wherein the Member had been employed prior to retiring, in the same permanent rank which they had held as of the date of retirement; or
(B) shall have been ordered restored to active duty as an employee sworn in, as provided by Penal Code Section 830.1 or Section 830.31, to perform peace officer functions for the department wherein the Member had been employed prior to retiring, in such same permanent rank and shall have declined, refused or neglected to report therefor or to perform duties as such.
Provided, however, that any Retired Public Safety Officer Member who has been retired for more than five (5) years from the date of the Board’s action by which they were retired may never be restored to active duty as a Public Safety Officer Member. After a Retired Public Safety Officer Member, who has been retired for more than five (5) years on a service- connected or nonservice-connected disability retirement, has been found to be no longer disabled, the Board shall adjust such Retired Public Safety Officer Member’s retirement allowance to 30% of their Final Compensation. The adjusted allowance shall reflect such cost of living adjustments as would have occurred had the Retired Public Safety Officer Member’s retirement allowance originally been based on such adjusted percentage.
(2) Return to Active Duty from Disability Retirement. A Public Safety Officer Member who the Board restored to active duty shall begin to earn time toward a service retirement (for the period they were receiving a service-connected disability retirement) after one year back on active duty, provided no time is lost due to the disabling condition. If they complete one (1) to three (3) years of service, they shall receive credit for the time retired on a service-connected disability, to the extent the length of service following restoration matches the length of time on a service- connected disability retirement. After three (3) years of completed service after returning to duty, the Public Safety Officer Member shall receive credit for the entire period they were on a service-connected disability retirement.
A Public Safety Officer Member who is restored to active duty from a nonservice-connected disability retirement may, after completing one (1) year of service, make contributions to restore their Service Credit for the period they received a disability retirement allowance, subject to requirements provided by Board rule.
(3) Retirements Granted to Public Safety Former Members. The retirement of any Retired Public Safety Officer Member, retired pursuant to Subsections (b) or (c) of this Section, whose active status as an employee sworn in, as provided by Penal Code Section 830.1 or Section 830.31, to perform peace officer functions for the Department wherein they were employed, had been terminated by reason of their resignation or discharge as such, shall cease when the incapacity or disability for which they received a disability retirement shall cease.
(g) Periodic Medical Examinations. Except in those instances in which the Board has determined that, due to the nature of the disability, no purpose would be served in having periodic medical examinations to determine whether or not a Retired Public Safety Officer Member is still disabled, all Retired Public Safety Officer Members on a disability retirement shall undergo medical examinations at periodic intervals on a schedule determined by the Board for the first five (5) years of disability retirement, and at any time thereafter.
Any Retired Public Safety Officer Member who has been retired for more than five (5) years on a service- connected or nonservice-connected disability retirement and who the Board found to be no longer disabled, or who has failed to submit to such medical examination as the Board may order within such reasonable time as the Board may determine, shall have their allowance adjusted by the Board to thirty percent (30%) of the Member’s Final Compensation. The adjusted allowance shall reflect such cost of living adjustments as would have occurred had the Retired Public Safety Officer Member’s pension originally been based on such adjusted percentage.
If a Retired Public Safety Officer Member resides outside of the State of California, the Board shall have the authority to order medical examinations of Retired Members at any place it may determine to be desirable and shall have the authority to defray the reasonable cost of any such travel required if it is determined that it would impose hardship on the person to be examined to travel to such place. The definition of hardship and the documentation required to verify hardship shall be established by the Board.
(h) Assessing Cost for Missed Medical Appointments. The Board shall have the authority to establish a rule that assesses the cost of missed medical appointments on the Public Safety Officer Member applying for disability retirement or the Retired Public Safety Officer Member receiving a disability retirement allowance, where such missed appointments were not caused by factors beyond the control of the Public Safety Officer Member or Retired Public Safety Officer Member.
(i) Re-application After Denial of Disability Retirement. The Board shall establish reasonable rules governing the re-application by a Public Safety Officer Member for a disability retirement where an application has been denied and a new application has been filed subsequently for the same or similar medical reasons as those which were the basis of a previously denied application. A Public Safety Officer Former Member, whose status as an employee sworn in, as provided by Penal Code Section 830.1 or Section 830.31, to perform peace officer functions for the department wherein the Public Safety Officer Member was employed, had been terminated by reason of their resignation or discharge prior to the date that the Board determined to deny the original application, shall have no right to file a new application because the earlier denial, once final, established as a matter of law that they did not qualify for disability retirement at the time of the Board’s determination.
(j) Consensual Re-Employment in a Different Position. Any person heretofore or hereafter retired for disability by the Board, even though incapable of performing the duties of the position from which they have been or shall be retired, may be re-employed in a different vacant position if the Board of Civil Service Commissioners were to find that they are 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, their disability retirement allowance shall cease, and, should they be eligible for membership in the Retirement System, they again shall become a Member of the Retirement System. Re-employment must occur within five (5) years of being granted a disability retirement.
(k) Rights and Obligations upon Re-Employment. Any Public Safety Officer Retired Member who re-enters the service of the City, as provided in Subsections (f) or (j) of this section, and again becomes a Member of the Retirement System, shall return to membership as a Public Safety Officer Member of Tier 3. The balance, if any, of the Public Safety Officer Retired Member’s Accumulated Contributions, after deducting the annuity payments made to them on account of a disability retirement allowance, shall be credited to the individual account of such Member with the Retirement System, regardless of whether they become a Member of the Retirement System or of another City retirement system upon re-employment.
The Public Safety Officer Retired Member shall receive Service Credit for City Service prior to the date of their retirement in the same manner as though they had never been retired for disability. The payment of a disability retirement allowance shall not constitute compensation from the City entitling them to service for the period it was paid, except as provided in Section 4.1080.8.1(f)(2).
(l) Exclusion for Intemperance or Willful Conduct. In making its determinations and findings relative to Subsections (a), (b) and (c) of this section, the Board shall consider whether and to what extent the activity giving rise to the disability of a Public Safety Officer Member was caused or aggravated by such Member’s willful misconduct. If the Board finds that the disability was caused or aggravated by such willful misconduct, the Board shall deny the Public Safety Officer Member’s application for a disability retirement.
(m) 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. The determination of the Board shall be final and conclusive.
(n) Loan Program for Public Safety Officer Member Disability Applicants. The Board, by rule, shall establish a loan program for Public Safety Officer Members who have applied 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) and any other applicable provisions of the Internal Revenue Code. The loan program further shall 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.
(o) 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 their 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 4.1080.1, 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 is fewer.
(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 fewer.
(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 they would have made to the Retirement Fund had they been making contributions during such period, based upon such person’s Compensation Earnable before the discontinuance of their service, together with all regular interest which, had they 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 also shall 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 them with the Board; provided, however, that should they, for any reason, cease to be a Member before making up the full amount thereof, they shall be allowed retirement credit, counter- calendarwise, for the same portion of such designated period as the amount made up by them is of such full amount, and provided further that, should they cease to be a Member by reason of their death, retirement credit shall be allowed for the whole period designated by them if the Member’s surviving spouse or domestic partner were to exercise the option which, under such circumstances, hereby is given to any surviving spouse or Domestic Partner to make a single payment of all of the unpaid installments with accrued interest thereon.
(p) Disability Retirements for Public Safety Officer Former Members. Any Public Safety Officer Former Member, who became separated from City Service or ceased to be a Member of the Retirement System because of termination of their employment for any reason including service retirement and shall believe that they are eligible to be paid a disability retirement allowance pursuant to this Section 4.1080.8.1, may file their written application for the payment of a disability retirement allowance within one (1) year from the date they ceased to be a Public Safety Officer Member, or one (1) year from their last day on active payroll. The Board, if it were to determine that the contingencies provided in this section for the payment of a disability retirement allowance had happened or occurred as to the Public Safety Officer Former Member prior to the date upon which they had ceased to be a Member, and if there is no legal bar or defense to the granting to them of such retirement or to any judicial action or proceeding which could be brought by them with respect thereto, shall grant them the retirement allowance in accordance with their written application.
SECTION HISTORY
Added by Ord. No. 187,923, Eff. 7-9-23.
Loading...