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All current and former members of Tier 3 of Retirement System shall, at the time of retirement, whether for service or disability, be eligible for the benefit provided in this section, provided they have an eligible survivor as defined in this section.
(a) Definitions. For purposes of this section, the following words and phrases are defined as follows:
Eligible Survivor shall include the following:
(1) The spouse of a retired member to whom such member is married at time of retirement and has been so married for at least one (1) year prior thereto, and further provided that said spouse is either the surviving spouse or surviving domestic partner of the retired member at the time of the retired member’s death.
(2) The domestic partner of a retired member provided that at the time of the member’s retirement their domestic partnership had been established for at least one (1) year, and further provided that said domestic partner is either the surviving domestic partner or surviving spouse of the retired member at the time of the retired member’s death.
Unmodified Allowance. The total monthly retirement allowance payable to the member as of the date of retirement, calculated in accordance with the provisions of sections 4.1080.7, in the case of service retirement and deferred service retirement, or 4.1080.8, in the case of disability retirement.
Joint and Survivor Cash Refund Annuity. An annuity which shall be the actuarial equivalent of the member’s total accumulated contributions providing for equal monthly payments during the lifetime of such member and the eligible survivor, with payment of any unused contributions, as defined in Section 4.1080.10 (c)(2), upon the death of the last survivor as provided in that provision, calculated in accordance with approved actuarial methods as of the date of retirement.
(b) Survivor Contributions. Every member shall contribute by salary deduction at the rate of contribution established in Section 4.1080.3(a) on account of the benefit provided by this section. Said contributions shall be known and designated as survivor contributions and are in addition to the member’s normal contributions.
(c) Retirement with Eligible Survivor. Upon the retirement of a member having an eligible survivor, other than one selecting one of the options available under Section 4.1080.13, the annuity portion of such member’s retirement allowance shall be calculated as a joint and survivor cash refund annuity, and the amount of pension payable during the member’s lifetime shall be the excess of the member’s unmodified retirement allowance over such joint and survivor cash refund annuity.
Upon the death of a member survived by an eligible survivor, there shall be continued to such survivor a retirement allowance which shall consist of:
(1) The joint and survivor cash refund annuity paid during the member’s lifetime; and
(2) A pension amount payable during the lifetime of the eligible survivor, which shall be the excess of one-half (1/2) of the unmodified allowance over said joint and survivor cash refund annuity.
(d) Retirement with No Eligible Survivor. Upon the retirement of a member having no eligible survivor at the time of retirement, the annuity portion of such member’s retirement allowance shall be calculated on the basis of the member’s normal accumulated contributions as opposed to the sum of the normal contributions and the survivor contributions taken pursuant to the provisions of this section. The excess of such member’s total accumulated contributions over the normal accumulated contributions at time of retirement shall be paid to such member, or at the member’s option, considered as additional contributions made to provide an increased annuity.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
A member or former member who does not have an eligible survivor, as defined in Section 4.1080.12, may make an irrevocable election at the time of retirement, in writing, to provide for a continuance of the member’s or former member’s retirement allowance to one designated beneficiary. The retiree shall take an actuarial reduction of the retiree’s retirement allowance to pay for the continuance to a designated beneficiary. The retiree shall specify any whole percentage not to exceed 100% as the portion of the retirement allowance to be paid as an allowance to the beneficiary, subject to any limits imposed by federal law. The allowance payable to the beneficiary shall commence the day following the retiree’s date of death and shall terminate upon the death of the beneficiary.
A beneficiary under this section shall not be entitled to any disability retirement allowance, any basic death benefit, any special death benefit, any monthly allowance for survivors of a member or retired person, any insurance benefit or subsidy, or retired member lump-sum death benefit.
The Board shall adopt rules to administer this continuance and shall formulate the benefits in such a way that no additional actuarial liability is incurred either by the System or by the City.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
(a) Optional Retirement Allowance Election. At any time before the first payment of a service or disability retirement allowance, a member or former member who is retiring may irrevocably elect to receive the actuarial equivalent of such retirement allowance as:
(1) One Hundred Percent (100%) Continuance. An optional retirement allowance payable throughout the balance of the retiree’s life, with the provision that upon the retiree’s death one hundred percent (100%) of such optional retirement allowance shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) the retired member’s minor children, in the event there be no surviving spouse or domestic partner; or (iii) the retired member’s dependent parents, in the event there be no surviving spouse or domestic partner or minor children, provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years; or
(2) Other Percent Continuance. Any other optional allowance which the retiree may elect to receive and which shall be authorized by the Board, payable throughout the balance of the retiree’s life, with the provision that, upon the retiree’s death, a specified percentage of such optional allowance selected by the retiree shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) the retired member’s minor children, in the event there be no surviving spouse; or (iii) the retired member’s dependent parents, in the event there be no surviving spouse or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years.
In order for the person who is the retiree’s spouse or domestic partner at the time of retirement to be eligible to receive the continuance provided in this section, this person must be the surviving spouse or surviving domestic partner of the retiree at the time of the retiree’s death.
(b) Calculation of Optional Retirement Allowances. The amount of any optional retirement allowance granted pursuant to this section shall be so calculated that the liability of the system at the date of retirement under the optional retirement allowance shall be equal to the liability of the system at the same date under the retirement allowance provided in Section 4.1080.7 for service and deferred service retirement allowances, or Section 4.1080.8 for disability retirement allowance, including in each case the liability for continuance to an eligible survivor provided in Section 4.1080.12, if applicable. Any retiree selecting one of the options available under this section who has an eligible survivor as defined in Section 4.1080.12 shall have the annuity portion of such retiree’s retirement allowance calculated on the basis of the member’s total accumulated contributions, including both normal and survivor contributions. For the purpose of this section, the liability of the system is defined as the present value, in accordance with tables adopted by the Board, of the retirement allowance or optional retirement allowance calculated by approved actuarial methods, giving due weight to the average probabilities of survivorship of all parties involved in the allowance, or optional allowance, to the limitation of payments to age eighteen (18) in the case of a minor child, and to the requirement for refund of unused contributions after the death of the retiree or beneficiary as provided for in Section 4.1080.10(c)(2).
(c) Federal Law Limitations May Not Be Exceeded. No optional allowance shall be granted under the provisions of this section that exceed any limitations imposed by federal law.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
Any member or the survivor of a deceased member who is eligible for a retirement allowance under the provisions of this Article may, in lieu of the annuity payment calculated on the basis of the refund of unused contributions, elect to receive an annuity payable only during the life or lives of the persons covered by the option with no payment due upon the death of the last survivor on account of unused contributions. In all other respects, the provisions of Section 4.1080.14(b) with respect to the liability of the System under the option being equal to the liability of the System under the member’s unmodified retirement allowance shall be applicable.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
When a portion of the community property interest in a member or former member’s benefits under Tier 3 has been awarded, pursuant to a valid court order in a proceeding in which the Retirement System has been joined as a party, to a former spouse, former domestic partner, legally separated spouse, or legally separated domestic partner (jointly referred to as “nonmember” herein), the following payment options are available, as applicable:
(a) Payments to Nonmember Based on Court Order (“In-Kind” Payments). The Retirement System shall pay directly to the nonmember any community property interest in benefits payable under the provisions of this article that have been awarded to the nonmember, provided that the Retirement System has been joined as a party in the proceedings and ordered to make such payment in a valid court order. To the extent that benefits are payable for the lifetime of a specific person, such as the retired member or an eligible survivor, any interest therein awarded to the nonmember will terminate when the right to benefit payments ends.
(b) Option to Elect a Life Annuity. When a court of competent jurisdiction awards a former spouse or former domestic partner a portion of the retirement benefits payable to the member/former member and to the member/former member’s surviving spouse or domestic partner (survivor), if any, the former spouse or former domestic partner, in lieu of receiving the former spouse’s or former domestic partner’s portion of the benefits payable based upon the lifetime of the member/former member and/or survivor, may instead make an irrevocable election to convert the former spouse’s or former domestic partner’s interest in such retirement benefits into an actuarially equivalent life annuity payable for the lifetime of the former spouse or former domestic partner. If the member/former member has not yet retired, the former spouse or former domestic partner must make this irrevocable election to receive a life annuity, in writing, prior to receiving payment of the former spouse’s or former domestic partner’s community property portion of the retirement allowance. If the member/former member has already retired, the election must be made at the time the former spouse or former domestic partner requests direct payment of the former spouse’s or former domestic partner’s community property portion of the retirement allowance. If this irrevocable election is not made prior to the applicable times specified herein, the former spouse or former domestic partner will be deemed to have waived the right to elect to receive a life annuity.
This option is not available in a legal separation where the parties’ relationship has not been legally terminated.
(c) Legal Separations. In the event the parties have obtained a legal separation, but remain married or remain domestic partners, the legally separated spouse or legally separated domestic partner may receive benefits payable to an eligible survivor under the provisions of this article, provided the legally separated spouse or legally separated domestic partner satisfies the applicable eligibility requirements.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
(a) Application. The provisions of this section shall not be applicable to any benefit payable to a member or former member, or to the member’s or former member’s beneficiaries, pursuant to the provisions of Section 4.1080.10(a)(2), concerning the limited pension. The provisions of this section, however, shall be applicable to each other benefit payable in monthly installments pursuant to any other provisions of this Article, but the application thereof to any such benefit shall not reduce the amount to be paid on or subsequent to July 1st of any year to an amount less than that payable immediately prior to July 1st of said year.
(b) Cost of Living Adjustments by Board of Administration.
(1) The Board of Administration, not later than the 1st day of May of each year, shall determine with respect to the Federal Bureau of Labor Statistics Consumer Price Index for the Los Angeles area (“the C.P.I.”) the percentage of increase or decrease, if any, in the C.P.I. for the whole of the first next preceding calendar year from the C.P.I. for the whole of the second next preceding calendar year and shall round any such percentage increase or decrease to the nearest one-tenth (1/10) of one percent (1%).
(2) The Board, whenever it shall have determined that there had been an increase or decrease in the C.P.I., shall increase or decrease the amount of each such benefit as hereunder provided, subject, however, to the limitations contained in Subsection (a) of this section:
Effective the 1st day of July of each year, the Board of Administration, with respect to each eligible benefit which became payable prior to the applicable 1st day of July, shall increase or decrease the amount thereof payable immediately prior to the applicable 1st day of July by one-twelfth (1/12) of the percentage of increase or decrease in the C.P.I. as determined by it pursuant to Subsection (b)(1) of this section, for each whole month that such benefit was payable during the year commencing the 1st day of July next preceding the applicable 1st day of July and ending the 30th day of June next preceding the applicable 1st day of July, providing that any increase or decrease in the amount of any such benefit shall not exceed one-twelfth (1/12) of two percent (2%) thereof for each whole month that it was payable during the year.
(3) If it is impossible or impracticable for the Board to cause all necessary calculations to be made in time for it to include any increases or decreases in the amounts of benefits, as hereinabove provided, in the demands drawn in payment of such benefits for the month of July in any year, then the Board shall have the power and authority, when such calculations shall have been made, to increase or decrease the amounts of the demands drawn in payment of such benefits for any month subsequent to the month of July so as to include any increases or decreases in such benefits which shall have accumulated from and after the 1st day of July.
(4) In contrast with the practice authorized for Tier 1 of the System, as provided by LAAC Section 4.1022(c)(2), nothing in this section shall be construed to authorize the accumulation or carrying over of any percentage increase or decrease in the C.P.I. from one calendar year to the next.
(c) Discretionary Cost of Living Adjustments by City Council.
(1) There is hereby created and established a policy whereby the City Council shall periodically review the matter of the cost of living adjustments for certain beneficiaries who receive retirement benefits from the Retirement System. The review shall be made to ascertain the impact of increases or decreases in the Consumer Price Index upon retirement benefits and the adequacy of the annual cost of living adjustments provided in subsection (b) herein.
Should the City Council find and determine that annual cost of living adjustments are inadequate in light of the movement of the Consumer Price Index, the City Council may grant additional, but discretionary, cost of living adjustments as hereinafter provided.
(2) The first of the reviews provided in Subsection (c)(1) herein shall be made during the third fiscal year following the date that the first beneficiary of Tier 3 receives a benefit that is subject to a cost of living adjustment, pursuant to Subsection (b) herein, and annually thereafter until the City Council has provided a first discretionary adjustment pursuant to this section. Thereafter, the City Council shall make periodic reviews in intervals not to exceed three (3) years from the date of the completion of the last review or from the effective date of the last discretionary cost of living adjustments, whichever shall be the later.
(3) Should it be the finding of the City Council that discretionary cost of living adjustments would be in order, any such adjustments would be subject to the following limitations:
(i) The first discretionary adjustment may be granted at any time. Thereafter, discretionary adjustments may not be provided more frequently than once every three (3) years, counting from the date the last discretionary adjustments became effective.
(ii) Discretionary adjustments shall not exceed one-half (1/2) of the difference between the percentage of the annual increases in the cost of living, as determined pursuant to the provisions of Subsection (g)(2) herein, for each of the preceding three (3) years and the annual adjustments made pursuant to Subsection (a). Discretionary adjustments shall be allocated to each of the three (3) years for which an adjustment is made.
(iii) Any discretionary cost of living adjustments provided pursuant to the provisions of this section shall be subject to the following further limitation: If a benefit became payable on or after July 1 immediately preceding the effective date of such adjustments, it shall not be so adjusted; and any benefit which shall become payable at a time within a three-year period between discretionary cost of living adjustments (but prior to the immediately preceding July 1), shall be prorated according to the annual increase, on a monthly basis, to the number of completed months for which the benefit was received.
(iv) Discretionary cost of living adjustments may be granted only by ordinances adopted in accordance with the provisions of Section 1168 of the City Charter.
(v) All adjustments provided in this subsection are to be applied prospectively only. Nothing in this section shall be understood to permit retroactive adjustments of benefits.
(vi) Only those monthly benefits which are entitled to cost of living adjustments as provided in Subsection (a) and (b) of this section are entitled to discretionary cost of living adjustments under Subsection (c) herein. Discretionary cost of living adjustments shall not be applied to monthly benefits excluded from receiving cost of living adjustments under any provision in this article.
(vii) It shall be the duty of the City Administrative Officer to prepare appropriate reports and recommendations to enable the City Council to make findings as to the adequacy of the annual cost of living adjustments.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
(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 service 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.
The option to make back contributions shall be exercised in writing, filed with the Board of Administration, designating the period of City employment for which the member desires to receive service 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 that 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.
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 the 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 service credit, counter-calendarwise, for the same portion of such designated period as the amount made up by the member, and provided further that, should the member cease to be a member by reason of the member’s death, service 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.
(b) Back Contributions for Periods of Participation in the Pension Savings Plan. Notwithstanding the provisions of Subsection (a), a member may receive service 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 that 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.
(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. The member’s LACERS account shall be credited with back contributions equal to the total contributions that the member would have made to the Fund had the member been a member during such period, together with the regular interest that would have been credited to those contributions; 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 shall be transferred to the LACERS Retirement Fund. The member’s LACERS account shall be credited with back contributions equal to the total contributions that the member would have made to the Fund had the member been a member during such period, together with the regular interest that would have been credited to those contributions; 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 that member been a member during that period. The member’s LACERS account shall be credited with back contributions equal to the total contributions that the member would have made to the Fund had that member been a member during such period, together with the regular interest that would have been credited to those contributions.
This option shall be exercised in writing, filed with and subject to rules to be promulgated by the Board of Administration, and shall be irrevocable. The service credit purchased pursuant to this subsection shall count as continuous service credit for all LACERS benefits, 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 contributions.
(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 4.1080.7, Subsection (j).
(f) Limitations on Back Contributions Imposed by Federal Law. Notwithstanding the provisions of Subsections (a), (b), (c), (d) and (e) herein, a member shall not be allowed to make back contributions to purchase service 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. 184,134, Eff. 1-22-16.
Any former member who received a refund of the former member’s contributions from the Retirement Fund upon separating from the service of the City shall, upon again becoming a member, have the option to redeposit with the Retirement Fund the amount previously withdrawn, together with regular interest, irrespective of any time period that may have elapsed since such separation. Such option shall be filed in writing with the Board of Administration. The amount of the contributions to be redeposited shall be the sum of the amount of accumulated contributions withdrawn, plus all of the regular interest which would have been credited thereon had said accumulated contributions remained on deposit in the fund to the date the member redeposits such contributions either by a single lump sum payment or executes an agreement to pay such redeposit in installments. In the case of installment payments, the Board of Administration shall establish the minimum amounts to be paid, the period of time therefore, the rate of interest which shall be paid on the unpaid balance of the same, and all other rules the Board may deem necessary for the carrying out of the provisions of this section. 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. Every member who makes a redeposit as hereinabove provided shall be allowed service credit for the period of service for which the redeposit is made; provided however, that the member is not receiving and is not entitled to receive service credit for such period of service from any other pension or retirement system of the City of Los Angeles. Should the member fail to complete payment of the redeposit, service credit shall be allowed counter-calendarwise from the same portion of such designated period as the amount made up by the member, and provided, further, that should the member cease to be a member by reason of the member’s death, service credit shall be allowed for the whole period for which the redeposit is being made 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 shall be determined by the Board.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.
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