Los Angeles Municipal Code Art. 1 Tier 1 Provisions

Section

• 4.1000 Statement of Purpose.

• 4.1001 Definition of Terms.

• 4.1002 Membership in Tier 1.

• 4.1002.1 Mandatory Transfer of Tier 2 Members to Tier 1.

• 4.1003 Member Contributions.

• 4.1004 Rights of Former Members.

• 4.1005 Service Retirement For Employees.

• 4.1006 Service Retirement for Former Members (Deferred Retirement).

• 4.1007 Service Retirement Allowances.

• 4.1008 Disability Retirement.

• 4.1008.1 Disability Retirement for Airport Peace Officer Members.

• 4.1008.2 Disability Retirement for Public Safety Officer Members.

• 4.1009 LACERS Domestic Partnerships.

• 4.1010 Payments Upon Death of Member, Former Member, or Retired Member.

4.1010.1 Payments Upon Death of Airport Peace Officer Member, Airport Peace Officer Former Member, or Airport Peace Officer Retired Member.

4.1010.2 Payments Upon Death of Public Safety Officer Member, Public Safety Officer Former Member, or Public Safety Officer Retired Member.

4.1011 Benefits Payable Upon a Member's Death Before Retirement.

4.1012 Benefits Payable to an Eligible Survivor Upon a Retiree's Death.

4.1013 Benefits Payable to an Eligible Survivor Upon the Death of a Retiree with Service Prior to July 1, 1965.

4.1014 Election to Provide an Allowance to a Designated Beneficiary Upon the Retiree's Death.

4.1015 Election to Provide an Optional Allowance to Specified Survivors Upon a Retiree's Death.

• 4.1016 Right to Elect Life Annuity with No Refund of Contributions.

• 4.1017 Back Contributions.

• 4.1018 Redeposit of Formerly Withdrawn Contributions.

• 4.1019 Buy Back of Periods of Uncompensated Leave from City Service.

• 4.1020 Government Service Buy Back Program.

• 4.1020.1 Purchase of Service with WPERP.

• 4.1021 Larger Annuity Program.

• 4.1022 Cost of Living Adjustment.

• 4.1023 Discretionary Cost of Living Adjustments.

• 4.1024 Waiver of Benefits.

• 4.1025 Unclaimed Benefits Revert to the Retirement Fund.

• 4.1026 Board Determinations.

• 4.1027 Rule Making Power of the Board.

4.1028 Provision Required to Comply with the Pension Protection Act of 2006 § 822(a) Regarding Rollover Distributions.

4.1029 Provision Required to Comply with Internal Revenue Code Section 401(a)(37) and the Heroes Earnings Assistance and Relief Tax Act of 2008 § 104(a).

4.1030 Provision Required to Comply With Internal Revenue Code Section 401(a)(9).

4.1030.1 Provisions Required for Retirement System Compliance with the Internal Revenue Code.

• 4.1031 Former Spouse or Domestic Partner's Option to Elect a Life Annuity.

• 4.1032 Separate Account Option in Legal Separations or Dissolutions.

• 4.1033 Early Retirement Incentive Program.

• 4.1034 Separation Incentive Program.

This Article sets forth the benefits and conditions of entitlement that have been established for persons who are members of Tier 1 of the Los Angeles City Employees’ Retirement System (LACERS) and for their beneficiaries. These benefits may be modified and the conditions of entitlement changed by ordinance as authorized in Section 1168 of the City Charter.

It is also the purpose of this Article to demonstrate the intent of the City of Los Angeles, through its governing bodies, to promote the improvement of personnel management and employer-employee relations by enacting from time to time such ordinances as may legally be adopted under the authority of Section 1168 of the City Charter whenever Memorandums of Understanding and other agreements, duly executed by all parties thereto and approved by the City Council, require by their terms presentation to the City Council of ordinances changing retirement benefits or conditions of entitlement thereto.

The Retirement System is established, as may be amended from time to time, as a qualified defined benefit plan intended to satisfy the provisions of Section 401(a) of the Internal Revenue Code as applicable under Section 414(d) of the Internal Revenue Code for a governmental plan and such other applicable provisions of the Internal Revenue Code, Treasury regulations, or other guidance.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Third para. added, Ord. No. 183,456, Eff. 3-4-15.

(a) For the purposes of Article 1 of Chapter 10 and Article 2 of Chapter 11 of Division 4 of the Los Angeles Administrative Code, the following words and phrases shall have the meaning ascribed to them in this section unless elsewhere defined:

Accumulated Contributions. The total of the amounts paid into the Retirement Fund by the Member and any regular interest credited to the Member’s account, as provided in Charter Section 1162(b).

Active Employee. A person who currently is employed by any City department. This definition does not include a person who has terminated employment with the City for any reason.

Airport Peace Officer Member. A Member of Tier 1 of the Retirement System who: (i) while a City employee and on their retirement date was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1 and was appointed to that position before January 7, 2018; or (ii) on their retirement date was employed by the Fire Department as a firefighter, was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1, and served as a firefighter for the Fire Department from the date of appointment until the date of retirement. An Airport Peace Officer Member shall include an individual who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8). Notwithstanding anything in this subsection or elsewhere in this Code to the contrary, an Airport Peace Officer Member shall be ineligible for any enhanced benefits under Sections 4.1007(a), 4.1008.1, and 4.1010.1, and shall revert to status as a Tier 1 Member, if LACERS did not receive a lump sum payment of $5,700, by cashier’s check, on a post-tax basis, before January 8, 2019, or prior to the Member’s retirement date, whichever was earlier.

Airport Peace Officer Former Member. A former Member of Tier 1 of the Retirement System who was eligible for, and elected to, remain in LACERS rather than transfer to LAFPP under Charter Section 1704 and Section 4.1002(e) and who: (i) while a City employee and on the date that they separated from City service or ceased to be a Member of the Retirement System was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1 and was appointed to that position before January 7, 2018; or (ii) on the date they separated from City service or ceased to be a Member of the Retirement System was employed by the Fire Department as a firefighter, was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1, and served as a firefighter for the Fire Department from the date of appointment until the date of separation. Notwithstanding anything in this subsection or elsewhere in this Code to the contrary, an Airport Peace Officer Former Member shall be ineligible for any enhanced benefits under Sections 4.1007(a), 4.1008.1, and 4.1010.1, and shall revert to status as a former Tier 1 Member or Tier 1 Member, as applicable, if LACERS did not receive a lump sum payment of $5,700, by cashier’s check, on a post-tax basis, before January 8, 2019, or prior to the Member’s retirement date, whichever was earlier.

Airport Peace Officer Retired Member. A Member of Tier 1 of the Retirement System who, on their retirement date: (i) was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1, and was appointed to that position before January 7, 2018; or (ii) was employed by the Fire Department as a firefighter, and was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1; and (iii) had paid to LACERS the $5,700 mandatory additional contribution payment required by Section 4.1002(e)(2). An Airport Peace Officer Retired Member shall include an individual who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8).

Annuity. Payments for life derived from the Accumulated Contributions of a Member as provided in this Article.

Base Amount. That portion of a Retirement Allowance resulting if cost of living amount is deducted therefrom.

Beneficiary. A person entitled to receive a benefit from the Retirement System.

Board of Administration or Board. The Board of Administration for the Los Angeles City Employees’ Retirement System established in Charter Section 1104(b).

City Service or Service. Only those periods during which a Member received compensation from the City as an employee or during which the Member not only received Workers’ Compensation benefits (Div. IV, California Labor Code) for temporary disability on account of any injury or illness arising out of and in the course of employment with the City, but for which the Member also made contributions to the Retirement Fund as provided in Charter Section 1162. Notwithstanding the foregoing, a Member shall be entitled, at the time of death or retirement, to receive credit for their years of service from the date such Member entered employment with the City of Los Angeles in a capacity that would entitle the Member to membership in the Retirement System.

City Service Credit or Service Credit. The time component of the formula used by the Retirement System for purposes of calculating benefits pursuant to applicable Los Angeles Administrative Code and Board Rules.

Compensation Earnable. The full salary, wage or compensation established for any position or office in City service for the particular period involved in any calculation required.

Continuous Service. Uninterrupted City Service except that discontinuance of such service of a Member for any cause whatever, followed by re-entrance into City Service within three years from the date of such discontinuance, shall not be considered as a break in the continuity of service.

Cost of Living Amount. That portion of a Retirement Allowance resulting from adjustments made pursuant to Section 4.1022.

Dependent Parent. A person whom the Board of Administration, upon investigation and after a hearing in the matter, shall find is the parent of a Member to or for whom the Member, during the last year of the Member’s service, contributed at least one-half the necessary living expenses.

Domestic Partner. A person who has formed a valid domestic partnership by filing a Declaration of Domestic Partnership with the Retirement System, as authorized in Section 4.1009 herein, or with the State of California, as authorized in Family Code Section 298.5, or a person who has established a legal union which was validly formed in another jurisdiction that is substantially equivalent to a domestic partnership, as provided in Family Code Section 299.2. Domestic Partner shall not include a person who has established a domestic partnership pursuant to any other authority, unless expressly otherwise provided in this article. A partnership shall be established, for purposes of this article, on the date of the filing with the Retirement System or state.

Employee. Every person in the employ or service of the City of Los Angeles in any capacity or rank whatever at a regular salary, wage or compensation, and regardless of whether the position held by any such person is classified as an office or employment.

Fire and Police Pension Plan or LAFPP. The retirement plan for sworn members established in Article XI, Part 3 of the Los Angeles City Charter.

Larger Annuity. The annuity funded entirely by the Member as provided in Section 4.1021.

LACERS Peace Officer Former Member. A former Member of the Retirement System who is an Active Employee of the Police Department on and as of January 12, 2025; transferred to Tier 6 pursuant to Charter Section 1703 and Section 4.2214 of this Code; has Service remaining with the Retirement System; serves as a sworn peace officer pursuant to California Penal Code Section 830.1; performs police duties; and belongs to one of the following class codes: 2214-1, 2214-2, 2214-3, 2217, 2223-1, 2223-2, 2223-3, 2227-1, 2227-2, 2232-1, 2232-2, 2244-1, 2244-2, 2244-3, 2251, 2262-1, 2262-2, 3188-1, 3188-2, 3183-1, 3183- 2, or 3183-3. An employee in Class Code 2112 is not a LACERS Peace Officer Former Member for the purposes of this definition.

LACERS Peace Officer Member. A Member of the Retirement System who, on and as of January 12, 2025, is an Active Employee of the Police Department , the Department of Airports, the Harbor Department, or the Department of Recreation and Parks; serves as a sworn peace officer pursuant to California Penal Code Section 830.1 or Section 830.31; performs police or firefighting duties; and belongs to one of the following class codes: 1968-0, 1966-0,1967-1, 1967-2, 2214-1, 2214-2, 2214-3, 2217, 2223-1, 2223-2, 2223-3, 2227-1, 2227-2, 2232-1, 2232-2, 2244-1, 2244-2, 2244-3, 2251, 2262-1, 2262-2, 3188-1, 3188-2, 3183-1, 3183-2, 3183-3, 3221-1, 3221-F, 3221-2, 3238-0, 3221-3, 3222-0, 3225-1, 3225-F, 3225-2, 3225-3, 3333-0, 3185-0, 3226-0, 3227-0, 3228-0, 3205, 3234, 3233, or 3232. An employee in Class Code 2112 is not a LACERS Peace Officer Member for the purposes of this definition.

LACERS Peace Officer Retired Member. A retired Member of the Retirement System who elected to remain in the Retirement System and not to transfer to Tier 6, though the Member was eligible to participate in the LACERS Peace Officer Transfer Program because the Member was, on and as of January 12, 2025, an Active Employee of the Police Department, the Department of Airports, the Harbor Department, or the Department of Recreation and Parks; served as a sworn peace officer pursuant to California Penal Code Section 830.1 or Section 830.31; performed police or firefighting duties; and belonged to one of the following class codes: 1968-0, 1966-0, 1967-1, 1967-2, 2214-1, 2214-2, 2214-3, 2217, 2223-1, 2223-2, 2223-3, 2227-1, 2227-2, 2232-1, 2232-2, 2244-1, 2244-2, 2244-3, 2251, 2262-1, 2262-2, 3188-1, 3188-2, 3183-1, 3183-2, 3183-3, 3221-1, 3221-F, 3221-2, 3238-0, 3221-3, 3222-0, 3225-1, 3225-F, 3225-2, 3225-3, 3333-0, 3185-0, 3226-0, 3227-0, 3228-0, 3205, 3234, 3233, or 3232. An employee in Class Code 2112 is not a LACERS Peace Officer Retired Member for the purposes of this definition.

LACERS Peace Officer Transfer Program. The voluntary program that allows LACERS Peace Officer Members and LACERS Peace Officer Former Members who are Active Employees on and as of January 12, 2025, to transfer membership and/or LACERS Service from LACERS to Tier 6.

Member or Tier 1 Member. An employee of the City of Los Angeles who meets the membership requirements contained in Section 4.1002 of this article. Member, as used in this article, shall mean a Member of Tier 1 unless otherwise specified. Notwithstanding the foregoing, a person who is no longer employed by the City, but who qualifies for reciprocity under Section 4.1096 and whose Tier 1 member contributions remain on deposit with the Retirement Fund may be considered to be a Member, but only to the limited extent necessary to comply with the reciprocity provisions contained in Section 4.1096.

Operative Date. Shall mean the “effective date”, unless a different date is specified by any ordinance adopted pursuant to the provisions of Charter Section 1168.

Public Safety Officer Member. The following definition shall apply only to Article 1 of Chapter 10 of this Code. A Member of Tier 1 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Member also shall include an Airport Peace Officer Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019, in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1, and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Public Safety Officer Former Member. The following definition shall apply only to Article 1 of Chapter 10 of this Code. A former Member of Tier 1 of the Retirement System who while a City employee and on the date that they separated from City Service or ceased to be a Member of the Retirement System, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Former Member also shall include an Airport Peace Officer Former Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019, in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Former Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Public Safety Officer Retired Member. The following definition shall apply only to Article 1 of Chapter 10 of this Code. A retired Member of Tier 1 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Retired Member also shall include an Airport Peace Officer Retired Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019, in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Retired Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Regular Interest. Interest credited to the individual account of each Member as provided in Charter Section 1162(b).

Reserve Basis. A system that provides for the accumulation and maintenance of a fund that will at all times be equal to the difference between the present value of the obligations assumed and the present value of the money to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of money with which they are to be paid.

Retirement Allowance or Allowance. An allowance granted under this article, except for those allowances granted pursuant to Section 4.1010(a)(2), together with all subsequent adjustments thereto.

Retired Member or Retired Tier 1 Member. A former Member who is receiving a monthly benefit from Tier 1 of the Retirement System. A retired Member shall not be considered a Member for purposes of this article and, if re-employed as authorized in Charter Section 1164, shall continue to be a retired Member.

Retirement Fund. The trust fund established for the Retirement System in Charter Section 1154.

Retirement System or System. The Los Angeles City Employees’ Retirement System (LACERS).

Spouse. A person who is a party to a valid marriage.

Tier 6. The Tier of the Fire and Police Pension Plan established in Charter Sections 1700 - 1726.

(b) Wherever the phrase “Final Compensation” is used in this Article, it shall, unless a different meaning is clearly indicated by the context, have the following meaning:

The final compensation of every member shall be calculated upon an annual compensation earnable of the member during the member’s last twelve (12) months of service or during any other twelve (12) consecutive months of service which the member shall designate.

Compensation which is to be included in Final Compensation shall be limited to base salary and regularly assigned bonuses or premium pay. Payments of money to be included in the calculation of Final Compensation are limited, prior to July 1, 2000, to payments designated as salary by an ordinance of the City or, effective July 1, 2000, to payments designated as salary by an ordinance of the City or a memorandum of understanding; all other payments of money not so designated shall not be included in the calculation of Final Compensation. Compensation which shall not be included in the calculation of Final Compensation shall include, but not be limited to, overtime, daily and other non-regularly assigned bonuses, reimbursements, car allowances, uniform allowances, payments in lieu of benefits or cash-out of benefits and other forms of compensation.

With respect to an employee who begins membership in the Retirement System after June 30, 1996, compensation taken into account in any Plan year may not exceed the annual compensation limits established under Internal Revenue Code Section 401(a)(17), as adjusted for increases in the cost of living in accordance with Internal Revenue Code Section 401(a)(17)(B).

(c) Whenever a reference is made in this Article to a specific section, such reference shall refer to a section contained in this Chapter, unless expressly indicated otherwise.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (a), Ord. No. 184,853, Eff. 4-6-17; Subsec. (a), Ord. No. 187,923, Eff. 7-9-23; Subsec. (a), Ord. No. 188,756, Eff. 11-16-25.

(a) Membership Provision. Prior to July 1, 2013, every employee shall become a member of Tier 1 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 (b) of this section. Beginning July 1, 2013, and ongoing, an employee shall only become a member of Tier 1 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 (b) of this section if one of the following exceptions to Tier 2 membership applies:

(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 July 1, 2013, shall only return to membership in Tier 1 if the former member has pre-July 1, 2013, 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-July 1, 2013, 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 for the exception provided in this paragraph by making back contributions or re-deposits 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 July 1, 2013, as provided in Section 4.1008(e) or (f), shall return to membership in Tier 1.

(3) Reciprocal Retirement Benefit Arrangement. If an employee of the City’s Department of Water and Power (DWP) participates in the reciprocal retirement benefit arrangement established in Section 4.1095, the employee shall become a member of Tier 1 upon becoming a member of the Retirement System, rather than Tier 2, provided that the employee’s employment with the DWP commenced prior to January 1, 2014, and there is no break in service of more than seven (7) calendar days, as provided in Section 4.1095(b). This exception shall not apply if the member elects not to participate in the reciprocal retirement benefits arrangement, as provided in Section 4.1095(d).

A member or former member of LACERS who, on or 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.

(4) Limited Term Retirement Plan. An elected official who was a member of the Limited Term Retirement Plan (LTRP) on June 30, 2013, and subsequently becomes a member of the Retirement System shall become a member of Tier 1, rather than Tier 2, provided that the elected official’s service as an elected official was continuous from June 30, 2013, 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 4.1017(c)(1).

A City employee shall cease to be a member 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 (b) of this section or if the employee’s membership has been terminated pursuant to the provisions of either Subsection (c) or (d) of this section. A former member who re-enters City employment or whose City employment changes on or after July 1, 2013, shall only return to membership in Tier 1 if the former member satisfies exception (1) to Tier 2 membership listed above.

(b) Exclusions from Membership. The following employees shall not be members of said 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 Plans 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 Plans herein mentioned, 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, for or on account of any period of service for which such person is entitled to receive or is receiving any benefit, under the Fire and Police Pension Plans 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 is a member at the time the person commences to serve on such a basis, or unless the appointing authority certifies to the Board of Administration that the person’s employment is regular and continuous and will probably extend for at least one (1) year and require service for at least one-half the time required of employees in the same group or class of service on a full-time basis.

(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 next 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. Provided that any officer who has filed such declaration may revoke it in writing and, upon filing the 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 as provided in this paragraph and 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.

(c) Transferred Employees Who Remain Members. Notwithstanding the provisions of Subsections (a) and (b) of this section, certain employees shall remain members of the Retirement System pursuant to the provisions of this subsection.

The Department of General Services is an Outside Agency as defined in Charter Section 1202(h). Members employed by the Department of General Services as sworn peace officer personnel whose positions may be transferred to the Los Angeles Police Department (LAPD) pursuant to a merger of police services authorized by the City Council shall, at the time of the transfer, become Transferring Employees as defined in Charter Section 1202(i) and for purposes of this subsection. The purpose of this subsection is to provide these Transferring Employees with the benefits provided by the Retirement System, in lieu of the benefits provided by the Fire and Police Pension Plan, pursuant to the authority provided in Charter Section 1216(b)(1).

Transferring Employees shall remain members of the Retirement System for so long as they continue in employment with the LAPD in any sworn position, except as otherwise provided in the following paragraph. In addition to continuing to be members during any period(s) of Academy training required in connection with positions held at the time of the transfer, Transferring Employees shall continue to be members of the Retirement System during any period(s) of academy training required to qualify for employment in any other sworn position with the LAPD, provided that they have not opted out of membership as provided in the following paragraph.

In the event that a Transferring Employee decides to transfer to a position with the LAPD that is not a sworn position transferred from the Department of General Services, such Transferring Employee may elect to opt out of membership in the Retirement System. In order to opt out of membership in the Retirement System, a member shall file a written opt out election form with the Retirement System, which election shall become effective on the date the Transferring Employee changes classifications and becomes eligible for membership in the Fire and Police Pension Plan or the Pension Savings Plan established in Chapter 16, Division 4 of this Code, as applicable. The Retirement System shall establish the period during which an opt out election form must be filed, which period shall be at least seven (7) days in length and shall end not later than the day before the date the member is scheduled to change classifications; failure to file an opt out election form within the period established by the Retirement System shall constitute an irrevocable election not to opt out of membership in the Retirement System. A member shall have seven (7) days from the date an opt out election form is filed to revoke the member’s election, after which the election shall be irrevocable. Once an election has become irrevocable, it shall not be revoked for any reason by anyone, including the Board, except in the following circumstance: If a Transferring Employee who has opted out and changed classifications should for any reason subsequently revert to a position that was transferred from the Department of General Services, the Transferring Employee shall be reinstated to membership in Tier 1 of the Retirement System. The provisions of this paragraph allowing a member, under specified conditions, to opt out of membership shall expire two (2) years from the effective date of this subsection, although a member who timely files an opt out form prior to expiration of the two-year period shall be allowed to opt out even if the member’s classification changes after expiration of the two-year period. The Board shall not have any authority to waive or extend any time limitation set forth in this paragraph.

Transferring Employees shall not become members of the Fire and Police Pension Plan, except as provided in the preceding paragraph. In the event that a Transferring Employee should terminate employment and thus cease to be a member of the Retirement System, the Transferring Employee’s status as a Transferring Employee shall terminate and shall not be reinstated in the event the Transferring Employee should again enter City employment.

(d) Employees Who May Terminate Membership. Any member whose employment status changes in such manner that the member would be ineligible for membership pursuant to the provisions of Subsection 4.1002(b)(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 member’s membership in the Retirement System be terminated. Provided that the 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. If a former member who has terminated membership on this basis should become a member of the Retirement System on or after July 1, 2013, the former member shall become a member of Tier 2 unless the former member’s Tier 1 contributions were not withdrawn and remained in the fund, in which case the former member shall return to membership in Tier 1.

(e) Airport Peace Officer Members. A person appointed prior to January 7, 2018, and who, on that date, or on the date immediately preceding the date of such persons’ appointment as a firefighter and employment by the Fire Department, is 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, including a person who will become a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall make an irrevocable election in writing whether to become a member of Tier 6 of the Los Angeles Fire and Police Pension plan (LAFPP) in lieu of membership in LACERS, on the terms and conditions set forth in (e)(1) below and further set forth in Section 4.2215 and Charter Section 1704, or to remain in LACERS.

(1) Election for Airport Peace Officers Appointed Prior to January 7, 2018.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require mandatory counseling for all eligible Members, promulgate election filing rules and procedures, and determine the election period(s) and deadlines.

(i) Mandatory Counseling Sessions. Every person appointed prior to January 7, 2018, and who, on that date, is 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, including a person who will become a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall be required to attend a mandatory counseling session administered by LACERS, in coordination with LAFPP, the Fire Department, and the Department of Airports, in order to make an informed and voluntary decision whether to transfer to LAFPP Tier 6 or remain a LACERS Member. Such counseling sessions shall be held at dates and times established by LACERS and LAFPP. Such counseling sessions shall include, but shall not be limited to, information regarding the cost to the individual member of purchasing all of the member’s prior service, and a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Within fourteen (14) calendar days after attending one of the mandatory counseling sessions described in Subsection (A)(i), every Member who is eligible for the election described herein, including a Member who will become a Member of Tier 1 of Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall file a written election form with LACERS indicating whether the Member elects to transfer to LAFPP or remain in LACERS. Once filed, such election shall be irrevocable and the Board shall have no authority to revoke the election or waive the deadline. A Member’s failure to file an election form before January 7, 2018, shall be deemed an irrevocable election to remain in LACERS.

(iii) Irrevocable Agreement to Purchase All Prior Service at Full Actuarial Cost. A Member’s election to transfer to LAFPP Tier 6 shall constitute an irrevocable decision not only to opt out of LACERS and transfer into LAFPP Tier 6 but also an irrevocable agreement to purchase all of the Member’s prior service with LACERS from LAFPP at full actuarial cost pursuant the requirements set forth in Charter Section 1704 and Section 4.2215 of this Code. A Member shall enter into a service purchase agreement with LAFPP on the date upon which the Member files their election to transfer to LAFPP from LACERS as provided in Subparagraph (ii) above. Such purchase agreement shall be subject to the terms and conditions established by LAFPP and set forth in Charter Section 1704 and Section 4.2215 of this Code.

(B) Election and Service Purchase Shall Be Irrevocable. Consistent with Charter Section 1704(b)(3), a Member’s election to remain in LACERS or transfer to LAFPP Tier 6, and to purchase all of the Member’s prior LACERS service from LAFPP at full actuarial cost, shall be irrevocable on the date upon which the member files their election form with LACERS. A Member’s failure to file an election form before January 7, 2018, shall be deemed an irrevocable election to remain in LACERS. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a Member’s election, refund a Member’s service purchase, or allow transfers after such deadline.

(C) Transfer Effective Date. A Member’s election to transfer to LAFPP Tier 6 shall be effective on January 7, 2018, or upon graduation from the Fire Department drill tower, whichever is earlier. The election of a Member who becomes a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8) shall be effective immediately after such Member becomes a Tier 1 Member.

(D) Department of Airports Responsibility for Payment. The Department of Airports shall pay LACERS for all costs and expenses incurred by the Retirement System in connection with administering this election process, including, but not limited to, the cost of any necessary reports prepared by the Retirement System’s actuary, the cost of any changes to the pension administration system, any legal expenses incurred by the Retirement System in connection with this election, and any staff time dedicated to administering this election. LACERS shall be responsible for preparing invoices of all expenses incurred and submitting them to the Department of Airports for its review and approval.

(2) Enhanced LACERS Benefits Effective January 7, 2018 for Airport Peace Officers Who Remain in LACERS; Eligibility for Enhanced Benefits Contingent Upon Mandatory Additional Contribution. A person who elects to remain in LACERS rather than transfer to LAFPP shall remain a LACERS Tier 1 Member if subsequently appointed without a break in Department of Airports service to a sworn position in the Department of Airports or, consistent with Charter Section 1700(c)(5), the Fire Department, that would otherwise qualify the person for membership in LAFPP.

Effective January 7, 2018, such person shall be deemed an Airport Peace Officer Member, as defined in Section 4.1001(a), and shall be responsible for making a lump sum mandatory additional contribution payment of $5,700 to LACERS, on a post-tax basis, by cashier’s check, before January 8, 2019, and prior to becoming eligible for any of the enhanced benefits provided to such Members in Sections 4.1007(a), 4.1008.1 and 4.1010.1. LACERS shall deposit these funds into each Airport Peace Officer Member’s individual account as provided in Charter Section 1162. Notwithstanding any provision of this Code to the contrary, no Airport Peace Officer Member shall be eligible for the enhanced benefits provided by Sections 4.1007(a) or 4.1008.1, nor shall benefits be paid to any survivor or beneficiary of the Member pursuant to Section 4.1010.1, until LACERS has received this $5,700 payment. If an Airport Peace Officer Member fails to complete this $5,700 payment before January 8, 2019, or prior to the Member’s retirement date, whichever is earlier, the Member shall forfeit eligibility for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1, and shall revert to status as a Tier 1 Member or former Tier 1 Member, as applicable. Before January 8, 2019, an Eligible Survivor may submit the lump sum $5,700 payment by cashier’s check, on a post-tax basis, to satisfy eligibility requirements to receive the enhanced benefits payable to the beneficiaries of an Airport Peace Officer Member.

Notwithstanding the foregoing, effective January 12, 2025, all actively employed Airport Peace Officer Members who previously made the $5,700 lump sum after-tax payment described above and subsequently elect to transfer their LACERS contributions and membership to Tier 6, shall be entitled to a no-interest, tax-compliant refund of this lump sum payment, as provided in Subsection (h) below and consistent with any rules established by the LACERS Board of Administration.

(f) LACERS Peace Officer Member. A LACERS Peace Officer Member shall make an irrevocable election in writing whether to remain a LACERS Member or to become a Member of Tier 6 in lieu of membership in LACERS and to transfer LACERS Service to Tier 6, on the terms and conditions set forth in Subdivision (1) below and further set forth in Charter Section 1709 and Section 4.2216 of this Code.

(1) Election for LACERS Peace Officer Members Actively Employed as of January 12, 2025.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require counseling, promulgate election filing rules and procedures, and determine the election period and deadlines.

(i) Mandatory Counseling Sessions. Every LACERS Peace Officer Member shall attend a mandatory counseling session administered by LACERS in coordination with LAFPP, the Police Department, the Department of Airports, the Harbor Department, or the Department of Recreation and Parks, in order to make an informed and voluntary decision whether to transfer to Tier 6 or to remain a LACERS Member. The counseling sessions shall be held at dates and times established by LACERS and LAFPP. The counseling sessions shall include, but shall not be limited to, information regarding a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Every LACERS Peace Officer Member shall file a written election form with LACERS indicating whether the Member elects to transfer to Tier 6 or to remain a LACERS Member by the election deadline, which shall be January 9, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissioners and the LACERS Board of Administration. A LACERS Peace Officer Member’s failure to file an election form before the election deadline shall be deemed an irrevocable election to remain a LACERS Member.

(iii) Irrevocable Agreement to Transfer All Prior Service. A LACERS Peace Officer Member electing to transfer to Tier 6 must agree to transfer all prior LACERS Service to Tier 6 pursuant to the requirements set forth in Charter Section 1709 and Section 4.2216 of this Code, and to forfeit any and all benefits administered by LACERS. A LACERS Peace Officer Member shall file their election form to transfer to Tier 6 from LACERS as provided in Subparagraph (ii) above.

(B) Election and Service Transfer Shall Be Irrevocable. Consistent with Charter Section 1709(b)(3), a LACERS Peace Officer Member’s election to remain a LACERS Member or transfer to Tier 6 shall be irrevocable after LACERS accepts the election form. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a LACERS Peace Officer Member’s election or allow transfers after the election deadline, except as provided by Section 4.2216.

(C) Transfer Effective Date. A LACERS Peace Officer Member’s election to transfer to Tier 6 shall be effective on January 11, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissioners and the LACERS Board of Administration.

(D) Responsibility for Payment. To ensure cost neutrality for the Retirement System, the City, Department of Airports, and Harbor Department shall pay the full actuarial cost of the transfer of membership and LACERS Service and all associated costs and expenses as set forth in Charter Section 1709 and Section 4.2216 of this Code, as well as all costs and expenses incurred by the Retirement System in connection with administering the election process for LACERS Peace Officer Members belonging to their respective departments, excluding LACERS staff time dedicated to administering the election process, which may be reimbursed at the City’s discretion. Mandatory reimbursement includes but is not limited to the following costs and expenses: the cost of any necessary reports prepared by the Retirement System’s actuary, the cost of programming any changes to the pension administration system, and any legal expenses incurred by the Retirement System. The City shall pay all costs and expenses associated with Members of the Police Department and Department of Recreation and Parks who elect to transfer. LACERS shall be responsible for preparing invoices for all costs and expenses incurred, and submitting them to the City, the Department of Airports, or the Harbor Department, for their review and approval, provided that any requests for reimbursement of LACERS staff time shall be submitted as a separate invoice.

(E) Board’s Administration of the Program. The LACERS Board of Administration shall administer the Program and adopt all rules necessary to implement this section. The LACERS Board of Administration shall determine any factual questions arising in connection with the Program, and shall take all appropriate action. The Board’s determination shall be final and binding on all parties.

(g) LACERS Peace Officer Former Member. A LACERS Peace Officer Former Member shall make an irrevocable election in writing whether to transfer remaining LACERS Service to Tier 6, on the terms and conditions set forth in Subdivision (1) below and further set forth in Charter Section 1709 and Section 4.2216 of this Code.

(1) Transfer of Service for LACERS Peace Officer Former Members Actively Employed as of January 12, 2025.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require counseling, promulgate election filing rules and procedures, and determine the election period and deadlines.

(i) Mandatory Counseling Sessions. Every LACERS Peace Officer Former Member shall attend a mandatory counseling session administered by LACERS, in coordination with LAFPP and the Police Department in order to make an informed and voluntary decision whether to transfer remaining LACERS Service to Tier 6. The counseling sessions shall be held at dates and times established by LACERS and LAFPP. The counseling sessions shall include, but shall not be limited to, information regarding a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Every LACERS Peace Officer Former Member shall file a written election form with LACERS indicating whether the Member elects to transfer remaining LACERS Service from LACERS to Tier 6 by the election deadline, which shall be January 9, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissioners and the LACERS Board of Administration. A LACERS Peace Officer Former Member’s failure to file an election form with LACERS before the election deadline shall be deemed an irrevocable election to keep LACERS Service in LACERS.

(iii) Irrevocable Agreement to Transfer All Prior Service. A LACERS Peace Officer Former Member must elect to transfer all prior LACERS Service to Tier 6, pursuant to the requirements set forth in Charter Section 1709 and Section 4.2216 of this Code, and to forfeit any and all benefits administered by LACERS. A LACERS Peace Officer Former Member shall file their election form to transfer LACERS Service to Tier 6 from LACERS as provided in Subparagraph (ii) above.

(B) Election and Service Transfer Shall Be Irrevocable. Consistent with Charter Section 1709(b)(3), a LACERS Peace Officer Former Member’s election to transfer remaining LACERS Service to Tier 6 shall be irrevocable after LACERS accepts the election form. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a LACERS Peace Officer Former Member’s election or to allow transfers after the election deadline, except as provided by Section 4.2216.

(C) Transfer Effective Date. A LACERS Peace Officer Former Member’s election to transfer LACERS Service to Tier 6 shall be effective on January 11, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissions and the LACERS Board of Administration.

(D) Responsibility for Payment. To ensure cost neutrality for the Retirement System, the City shall pay the full actuarial cost of the transfer of LACERS Service and all associated costs and expenses as set forth in Charter Section 1709 and Section 4.2216 of this Code, as well as all costs and expenses incurred by the Retirement System in connection with administering the election process for LACERS Peace Officer Former Members, excluding LACERS staff time dedicated to administering the election process, which may be reimbursed at the City’s discretion. Mandatory reimbursement includes but is not limited to the following costs and expenses: the cost of any necessary reports prepared by the Retirement System’s actuary, the cost of programming any changes to the pension administration system, and any legal expenses incurred by the Retirement System. LACERS shall be responsible for preparing invoices for all costs and expenses incurred, and submitting them to the City for review and approval, provided that any requests for reimbursement of LACERS staff time shall be submitted as a separate invoice.

(E) Board’s Administration of the Program. The LACERS Board of Administration shall administer the Program and adopt all rules necessary to implement this section. The LACERS Board of Administration shall determine any factual questions arising in connection with the Program, and shall take all appropriate action. The Board’s determination shall be final and binding on all parties.

(h) Refunds to Airport Peace Officer Members for LACERS Enhanced Benefits. LACERS shall refund to an Airport Peace Officer Member the exact amount of monies paid to receive Enhanced LACERS Benefits pursuant to Subsection (e) of this section, subject to the following terms and conditions.

(1) LACERS Peace Officer Program Participants. Only those Airport Peace Officer Members who elect to transfer to Tier 6 are eligible to receive a refund of monies paid for Enhanced Benefits. Any Airport Peace Officer Member who remains a LACERS Member is not eligible to receive a refund of monies paid for LACERS Enhanced Benefits.

(2) No Interest. LACERS shall not pay an Airport Peace Officer Member any interest on the refunded monies. Any accrued regular interest credited to the Airport Peace Officer Member’s account with the Retirement System cannot be refunded pursuant to this section and only may be refunded to the Airport Peace Officer Member pursuant to the terms and conditions of Charter Section 1714 or Section 4.1004 of this Code.

(3) Payment Source and Method. Enhanced Benefits refunds will be paid in a manner that complies with the Internal Revenue Code and any rules adopted by the LACERS Board of Administration to implement the refund process.

(4) No Fiscal Impact on LACERS. The Department of Airports shall issue up-front payments to the Retirement System in an amount that covers the full cost of refunds for LACERS Enhanced Benefits. The amount of funds due and the timing of payment from the Department of Airports shall be agreed upon between the Retirement System, the Department of Airports, and the City. The Retirement System shall not issue any refunds until after it has received payment from the Department of Airports. At its discretion, the City may reimburse the Retirement System for LACERS staff time dedicated to processing refunds. LACERS shall be responsible for preparing invoices for all costs and expenses incurred and submitting them to the City for review and approval, provided that any requests for reimbursement of LACERS staff time shall be submitted as a separate invoice.

(5) Board’s Administration of Refunds. The LACERS Board of Administration shall administer the payment of refunds and adopt all rules necessary to implement this section. The LACERS Board of Administration shall determine any factual questions arising in connection with refunds, and shall take all appropriate action. The Board’s determination shall be final and binding on all parties.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (a)(3), Ord. No. 184,134, Eff. 1-22-16; Subsec. (a)(3) amended and Subsec. (e) added, Ord. No. 184,853, Eff. 4-6-17; Subsec. (e)(2) amended and Subsecs. (f), (g) and (h) added, Ord. No. 188,756, Eff. 11-16-25.

(a) Tier 2 Members. Effective February 21, 2016, all persons who entered LACERS membership between July 1, 2013 and February 21, 2016, as members of Tier 2 of the Retirement System 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. The City 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 Tier 2 members had those 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 any individual member’s account but shall be contributed solely for the purpose of making the Retirement Fund whole.

(b) 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 Tier 2 member has pre-February 21, 2016, contributions that remain on deposit with the Retirement Fund on the date the former Tier 2 member begins City service in a position in which the former Tier 2 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. 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 the former Tier 2 member had that former member been 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. A former Tier 2 member who was employed for any period of time as a part-time employee and was certified as a member pursuant to Section 4.1052(b)(8), and who leaves their pre-February 21, 2016, contributions on deposit in the Retirement Fund, but does not return to membership in the Retirement System, shall be entitled to apply to retire as a former Tier 1 member pursuant to Section 4.1006 of this Code.

(c) 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 Section 4.1058(e) or (f), or Section 4.1008(e) or (f), shall return to membership in Tier 1.

(d) Service Purchase Elections of Tier 2 Members.

(1) Government Service Buy Back. Tier 2 members who elected to purchase Government Service Buy Back (GSB) prior to February 21, 2016, shall have their service purchases re-calculated using the Tier 1 cost benefits methodology and conditions of entitlement. The Tier 1 GSB cost, including the member’s salary, contribution rate, and interest rate, shall be based on the date the member signed the member’s agreement. If payment has been received by the Retirement System and the Tier 1 purchase cost is less than the Tier 2 purchase cost, the Retirement System shall credit the member’s account with regular interest, as provided in Charter Section 1162(b), any excess funds collected in error. Excess funds originating from post-tax dollars may, at the member’s option, be refunded, applied to an additional service purchase, or transferred to a Larger Annuity Account. Excess funds originating from a pre-tax rollover of funds may, at the member’s option, be applied to an additional service purchase, or transferred to a Larger Annuity Account. If payment has been received by the Retirement System and the Tier 1 purchase cost is greater than the Tier 2 purchase cost, the member shall either receive prorated service based on the payment already received or enter into an agreement to purchase the difference to receive full service credit.

(2) Purchase of Back Contributions and Redeposit. Tier 2 members who elected to purchase Back Contributions or Redeposit prior to February 21, 2016, shall have their service purchases re-calculated using the Tier 1 cost benefits methodology and conditions of entitlement. The Tier 1 Back Contributions and Redeposit cost calculations shall include the survivor contributions for the period of purchased service and regular interest, as provided in Charter Section 1162(b), based on the date the Member signed the Member’s agreement. If the Tier 1 purchase cost is greater than the Tier 2 purchase cost, the Member shall either receive prorated service based on the payment already received or enter into an agreement to purchase the difference to receive full service credit.

(e) Death Benefits for Survivors of Tier 2 Members. Survivors of Tier 2 members, who are receiving benefits that were calculated prior to February 21, 2016, shall have their survivor benefits re-calculated based on the Tier 1 benefits and conditions of entitlement.

SECTION HISTORY

Added by Ord. No. 184,134, Eff. 1-22-16.

(a) Six Percent (6%) Contribution Rate. Beginning November 8, 2009, all members shall contribute by salary deduction to the Retirement Fund at the rate of six (6%) of the member’s compensation earnable, of which one-half percent (0.5%) shall be the survivor contribution portion, and the remaining five and a half percent (5.5%) shall be the normal contribution.

(b) Seven Percent (7%) Contribution Rate. Pursuant to the provisions of Section 4.1033(a)(9), commencing on July 1, 2011, and ending on June 30, 2026, or when the ERIP Cost Obligation is fully paid, whichever comes first, in lieu of contributing as provided in Subsection (a), above, all members shall contribute by salary deduction to the Retirement Fund at the rate of seven percent (7%) of the amount of the member’s compensation earnable, of which one-half percent (0.5%) shall be the survivor contribution portion and the remaining six and a half percent (6.5%) shall be the normal contribution.

(c) Additional Contributions. In addition to the contributions required pursuant to Subsection (a) or (b) herein, as applicable, certain members shall make additional normal contributions to the Retirement Fund as provided herein. In consideration for such additional contributions, these members shall receive the benefit set forth in Section 4.1111(c) of Article 2 of Chapter 11 of Division 4 of this Code. The City Administrative Officer shall notify the Retirement System and the Controller of the specific Memoranda of Understanding (MOUs) which require members to contribute as provided herein, and shall also provide the Retirement System and Controller with the names of all members who are non-represented employees, including elected officials. Because the benefit conferred by the aforesaid Section 4.1111(c) is a vested benefit, a member who is employed in a position requiring the payment of additional contributions to the Retirement Fund as provided in this subsection shall continue to make additional contributions to the Retirement Fund for so long as that member is a member, notwithstanding that the member may subsequently transfer to a position that does not require the payment of the additional contributions.

(1) Members subject to specific MOUs shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable retroactive to April 24, 2011, and ongoing. Further, such members shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable commencing on July 1, 2011, and ongoing, for a total additional contribution of four percent (4%) effective July 1, 2011, and ongoing.

(2) Members subject to other specific MOUs shall contribute by salary deduction to the Retirement Fund an additional four percent (4%) of the member’s compensation earnable retroactive to July 1, 2011, and ongoing.

(3) Members who are subject to other specific MOUs and members who are non-represented employees, including elected officials, shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable retroactive to July 1, 2011, and ongoing. Further, such members shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable commencing on January 1, 2013, and ongoing, for a total additional contribution of four percent (4%) effective January 1, 2013, and ongoing.

(4) Members subject to other specific MOUs shall contribute by salary deduction to the Retirement Fund an additional one percent (1%) of the member’s compensation earnable retroactive to February 9, 2014, and ongoing, and an additional three percent (3%) of the member’s compensation earnable commencing on June 29, 2016, and ongoing, for a total additional contribution of four percent (4%) effective June 29, 2016, and ongoing.

(d) Pick Up of Employee Contributions. All contributions paid pursuant to this section shall be deposited in each member’s individual account as provided in Charter Section 1162. The City shall pick up all employee contributions payable by salary deduction pursuant to this section as provided in Sections 4.1500 through 4.1504 of Chapter 15 of Division 4 of this Code.

(e) Prior Defrayal of Age-based Contributions. Prior to November 8, 2009, certain members paid age-based contributions to the Retirement System, which were reduced by a defrayal in which the City, or the member’s employing department, paid contributions (referred to hereafter as City defrayal funds) sufficient to equal the amount by which the employee contributions were reduced, subject to certain discounts. When a member’s contributions have been reduced by defrayal, the following conditions shall continue to apply:

(1) City defrayal funds shall not be credited to the members’ individual accounts nor shall such funds be refundable to any member, former member or beneficiary of a former member; and such funds shall not be included in the calculation of any annuity representing the actuarial equivalent of accumulated contributions wherever the provisions of this Code require such calculation.

(2) City defrayal funds shall not be returned to any funds of the City from which they were appropriated except to adjust for incorrect payments.

(3) Defrayal of employee contributions by the City shall not apply to or affect the amount of a member’s liability for back contributions, Family Death Benefit Plan contributions, additional contributions towards a Larger Annuity, or re-deposits of formerly withdrawn contributions; provided, however, that re-deposits of a member’s contributions, withdrawn during or after any period of City service for which the City defrayed any portion of the member’s contributions, shall not include the amounts so defrayed. If a member’s liability for back contributions involves any period in which the member would have been obligated, under former provisions of this Chapter, to make age-based contributions, the member’s liability for back contributions shall be computed based upon the former provisions of this Chapter that were applicable at that time.

(4) Any amounts of employees’ contributions defrayed by the City shall not be includable in the determination of “Compensation Earnable” or “Final Compensation.”

(f) Notwithstanding any language in this Section 4.1003 to the contrary, an Airport Peace Officer Member, including an Airport Peace Officer Member who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8), who elected to remain in the Retirement System rather than transfer to LAFPP Tier 6 pursuant to Charter Section 1704 and Sections 4.1002(e) and 4.2215 of this Code shall, to the extent required by the Internal Revenue Code, continue to make member contributions in the manner applicable to the Airport Peace Officer Member’s membership without regard to the irrevocable election to remain in LACERS. If this Section 4.1003 would otherwise require additional member contributions by such Airport Peace Officer Member, such additional member contributions shall be made on an after- tax basis to the extent required by the Internal Revenue Code. If this Section 4.1003 would otherwise require member contributions at a rate that is lower than the rate applicable to the Airport Peace Officer Member’s LACERS membership, the Council may, subject to applicable provisions of the Charter and this Code, provide for a larger annuity benefit at the time of retirement for such Airport Peace Officer Member to reflect the additional contribution amounts, as determined by the System’s actuary and subject to all limitations of the Internal Revenue Code.

(g) Notwithstanding any language in this Section 4.1003 to the contrary, a LACERS Peace Officer Member who opted to remain in the Retirement System rather than transfer to Tier 6 pursuant to Charter Section 1709 and Sections 4.1002(f) and 4.2216 of this Code shall, to the extent required by the Internal Revenue Code, continue to make member contributions in the manner applicable to the LACERS Peace Officer Member’s membership without regard to the irrevocable election to remain in LACERS. If this Section 4.1003 would otherwise require additional member contributions by such LACERS Peace Officer Member, such additional member contributions shall be made on an after-tax basis to the extent required by the Internal Revenue Code. If Section 4.1003 would otherwise require member contributions at a rate that is lower than the rate applicable to the LACERS Peace Officer Member’s membership in LACERS, the Council may, subject to applicable provisions of the Charter and this Code, provide for a larger annuity benefit at the time of retirement for such LACERS Peace Officer Member to reflect the additional contribution amounts, as determined by the System’s actuary and subject to all limitations of the Internal Revenue Code.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (c)(4) added, Ord. No. 183,006, Eff. 5-5-14; Subsec. (f) added, Ord. No. 184,853, Eff. 4-6-17; Subsec. (g) added, Ord. No. 188,756, Eff. 11-16-25.

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 ceases to be a member of 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. A former member shall be paid their accumulated contributions upon written demand made to the Board of Administration. Contributions, however, 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 may permit their accumulated contributions to remain in the fund.

A former member whose contributions remain on deposit and who qualifies for deferred service retirement may apply to retire as provided in Section 4.1006. If such former member fails to file a written retirement application prior to attaining age seventy and a 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 a former member does not have sufficient years of continuous service so as to be entitled to a deferred service retirement and 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, provided that the former member(1) shall be relieved from such forfeiture upon returning to membership in the 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) shall be relieved from such forfeiture upon the making of a valid claim therefor determined at the sole discretion of the Board of Administration. If any such former member attains age seventy and a 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.

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 therefor, determined at the sole discretion of the Board of Administration.

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. 182,629, Eff. 7-25-13.

(a) Full Retirement. A member shall be eligible to retire with a full (unreduced) retirement allowance:

(1) After reaching age fifty-five (55) with thirty (30) or more years of City service;

(2) After reaching age sixty (60) with ten (10) or more years of continuous City service;

(3) At age seventy (70) or older, regardless of length of City service.

(b) Early Retirement. A member shall be eligible to retire with an age-based reduced retirement allowance:

(1) After reaching age fifty-five (55) with ten (10) or more years of continuous City service;

(2) At any age with thirty (30) or more years of City service.

(c) Continuous Service Requirement. Where ten (10) years of continuous City service is required to qualify for retirement under this section, a minimum of five (5) years of such continuous service shall be actual service with the City. Service purchased under Section 4.1020 shall not count toward establishing the minimum five (5) years of continuous service based on actual service with the City. None of the service purchased under Section 4.1019 shall count toward establishing the minimum ten years of continuous City service required for retirement under this section. The requirement for ten 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.

(d) Application Requirements. A Tier 1 member who is eligible for full or early retirement 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), nor more than sixty (60), days prior to the requested retirement date, except as follows:

(1) In the event a member has been notified by the City that the member will be laid off, an application that is filed less than thirty (30) days in advance shall be accepted provided it is filed with the Board while the member is still employed, specifies a retirement date prior to the member’s termination, and shall not be effective earlier than the date on which it is filed.

(2) So long as the Resolution of Fiscal Emergency adopted by the City Council on May 18, 2009 (Council file No. 09-0600-S8) has been extended in successive periods of ninety (90) days each by written notification from the Mayor to LACERS and continues in effect, as amended or revised from time to time, and the Mayor determines that the City’s fiscal condition so warrants, an application less than thirty (30) days in advance shall be accepted provided it shall not be effective earlier than the date on which it is filed.

(e) WPERP Service. All of the member’s service with the Water and Power Employees’ Retirement Plan (WPERP) shall be combined with LACERS service solely for the purpose of determining retirement eligibility under this section. All WPERP service, except WPERP service based on the purchase of Other Government Service (OGS) and noncontributory WPERP service, may count towards the minimum five (5) years of continuous City service based on actual service with the City requirement and towards the ten (10) years of continuous City service requirement, as applicable.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (e) added, Ord. No. 182,824, Eff. 12-19-13.

(a) Eligibility for Deferred Retirement. In order to be eligible for deferred service retirement, a former member’s Tier 1 contributions must remain in the Retirement Fund, and the former member must have five (5) or more years of continuous City service or satisfy the part-time employee exception set forth below.

(1) Full Retirement. To retire with a full (unreduced) retirement allowance, the former member must be:

(i) Age 55 or older with thirty (30) years of service; or

(ii) Age 60 or older and ten (10) years must have elapsed since the former member first became a member; or

(iii) Age seventy (70) or older.

(2) Early Retirement. A former Member who is not yet 60 may retire with an age-based reduced retirement allowance at age 55 or older, provided 10 years must have elapsed since the former member first became a member.

A former Member does not need to have five 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, 1993.

(b) Continuous Service Requirement. Service purchased under Sections 4.1019 and 4.1020 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) Application Requirements. A former member of Tier 1 who is eligible for 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.

(d) WPERP Service. All of the member’s service with the Water and Power Employees’ Retirement Plan (WPERP) shall be combined with LACERS service solely for the purpose of determining retirement eligibility under this section. All WPERP service, except WPERP service based on the purchase of Other Government Service (OGS) and noncontributory WPERP service, may count towards the minimum five (5) years of continuous City service, as applicable. Further, the date that the member first became a member of WPERP may be used to satisfy the requirement that ten (10) years must have elapsed since the member first became a member.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (d) added, Ord. No. 182,824, Eff. 12-19-13; Subsec. (a)(1), Ord. No. 184,853, Eff. 4-6-17; Subsec. (a)(2), Ord. No. 188,756, Eff. 11-16-25.

(a) Tier 1 Formula and Enhanced Tier 1 Formula for Airport Peace Officer Members and Airport Peace Officer Former Members. A Member who retires pursuant to the provisions of Section 4.1006 or Section 4.1007 shall receive a service retirement allowance calculated pursuant to the following Tier 1 Formula (formerly the Beta Formula): 2.16 percent (.0216) of the Member’s Final Compensation, calculated as of the date of retirement, multiplied by the number of years and parts thereof of the Member’s Service Credit, subject to applicable adjustments as provided below. An Airport Peace Officer Member or Airport Peace Officer Former Member who retires on or after January 7, 2018, shall receive a service retirement allowance calculated pursuant to the following Enhanced Tier 1 Formula: 2.30 percent (.023) of the Member’s Final Compensation, calculated as of the date of retirement, multiplied by the number of years and parts thereof of the Member’s Service Credit, subject to applicable adjustments as provided below. Each retirement allowance as so calculated shall be allocated between the following two components: (1) an annuity which shall be the actuarial equivalent of the Member’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.

The retirement allowance as so calculated shall be subject to the following adjustments, if applicable:

(1) Where the retiree’s allowance is subject to an age-based reduction, the adjustment provided in Subsection (b) of this section.

(2) If the retiree had 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.

(3) If the retiree 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.

(4) The retiree may be entitled to a minimum pension of fifty percent (50%) of the amount determined pursuant to the aforesaid Tier 1 Formula. (The annuity portion of the retirement allowance shall not be changed as a result of the testing required in this provision.) This testing uses the retiree’s Tier 1 Formula entitlement and the pension and annuity entitlement amounts, as calculated above, provided that such shall be adjusted, if applicable, to: (i) exclude Service Credit purchased under Sections 4.1019 and 4.1020, and the annuity calculation shall likewise exclude accumulated contributions attributable to these purchases; and (ii) the annuity calculation, for members who made back contributions under either Section 4.1017(b) or Section 4.1017(c), shall exclude accumulated contributions in the person’s account which are attributable to matching contributions paid by the City in the prior plan. The purpose of this testing is to determine if, absent such purchases or matching City contributions, the pension would have required an increase to provide a minimum pension of fifty percent (50%) of the amount of the retiree’s Tier 1 Formula entitlement. If such test determines that an adjustment is in order, the pension portion of the retiree’s retirement allowance shall be increased by the same amount as the increase that the test determined would be necessary to provide a minimum pension of fifty percent (50%), and the total retirement allowance payable shall be increased accordingly (with the annuity portion remaining unchanged).

(b) Age-Based Reduction Factors. An age-based reduction shall be made by multiplying the retirement allowance by the factor set forth in the table below corresponding to the retiree’s age, taken to the completed quarter year.

EARLY RETIREMENT REDUCTION FACTORS FOR 2.16 PERCENT FORMULA

(c) Cap on Allowances. Service retirement allowances granted pursuant to Subsection (a) of this section may never exceed a member’s “Final Compensation.”

(d) WPERP Service Credit. Service credit with the Water and Power Employees’ Retirement Plan (WPERP) shall not be included in the calculation of the member’s retirement allowance pursuant to Subsection (a) of this section unless the member has purchased credit for this WPERP service with the Retirement System or unless such service credit was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or prior Section 4.1060.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (d) added, Ord. No. 182,824, Eff. 12-19-13; Subsec. (a), 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 their duties, may be retired upon written application of such Member, of any person acting in their 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 to be examined by, and a written report thereon rendered by, at least three 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 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, the Board finds that the Member has become physically or mentally incapacitated and is incapable, as a result thereof, of performing their duties, and if said Board finds that such disability was not due to intemperance unattributable to a physical or mental impairment, or the willful misconduct of such Member, the Member shall be retired as of the date of the discontinuance of their 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 their Accumulated Contributions at the time of their 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 their 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 their Final Compensation, as presently herein defined, calculated as of the date of retirement, multiplied by the number of years of service of such Member.

If the sum resulting from this calculation should be an amount that represents less than one-third of the Member’s Final Compensation, the disability retirement allowance shall be one-third of their 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 unattributable to a physical or mental impairment, or willful misconduct.

It shall be within the power of the Board 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 the applicant’s disability retirement allowance as provided in Section 4.1012, 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 continuing benefit under the provisions of Section 4.1015(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 three (3) 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 shall determine that such beneficiary is not so incapacitated, they shall be restored to duty in the position held by them at the time of said retirement order, and, upon their return to active service, their 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. In which event, the only right the beneficiary shall have as a former Member pursuant to Section 4.1004 of this Chapter is to receive a refund of their 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 their retirement allowance, and, as a former Member, they shall have the rights set forth in Section 4.1004, provided that, in the event they request 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 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, the person’s 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.

(g) Rights and Obligations upon Re-Employment. Any beneficiary who 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 1. The balance, if any, of their 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 beneficiary with the Retirement System, regardless of whether they become a Member of the Retirement System or of another City retirement system upon re-employment.

A beneficiary shall receive credit for services rendered prior to the date of their retirement in the same manner as though they had never been retired for disability, but the payment of a disability pension shall not constitute compensation from the City entitling them 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 they 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 Chapter, 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 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.

(j) 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 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 4.1001, 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 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 Member’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 their 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.

(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 unless such service was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or prior Section 4.1060. Service with the WPERP shall not be included as years of service in the calculation of the Member’s disability retirement allowance pursuant to Subsection (c) of this section unless the Member has purchased credit for this WPERP service with the Retirement System or unless such service was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or prior Section 4.1060.

(l) An Airport Peace Officer Member who applies for disability retirement shall be subject to Section 4.1008.1, and the provisions of this Section 4.1008 shall not apply.

(m) A Public Safety Officer Member who applies for disability retirement shall be subject to Section 4.1008.2, and the provisions of this Section and Section 4.1008.1 shall not apply.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (k) added, Ord. No. 182,824, Eff. 12-19-13; Subsec. (l) added, Ord. No. 184,853, Eff. 4-6-17; In Entirety, Ord. No. 187,923, Eff. 7-9-23; Subsecs. (b) and (e)(2), Ord. No. 188,756, Eff. 11-16-25.

(a) Application for Disability Retirement. Any Airport Peace Officer Member who has graduated from basic training and taken the Oath of Office, applying for a service-connected disability, or who has five 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 the Member’s duties, may be retired upon written application of such Member, or any person acting on the Member’s behalf, or on behalf of the head of the Department of Airports or Fire Department wherein such Member is employed. Any such application may be made at any time, but no later than one year after the discontinuance of the service of such employee, provided such incapacity has been continuous from the discontinuance of such service. No application may be filed under this Section 4.1008.1 prior to January 7, 2018.

(b) Service-Connected Disability. Upon the filing of the Member’s written application for a disability retirement allowance or upon the filing of a written application by any person acting on the Member’s behalf or on behalf of the head of Department of Airports or Fire Department, any Airport Peace 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, to perform police or firefighting duties for the Department of Airports or Fire Department, and who is incapable as a result thereof from performing the Member’s assigned duties, or those to which the Member 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 Department of Airports or Fire Department Member.

An Airport Peace Officer Member’s incapacity is caused by the discharge of the Member’s duties if there is clear and convincing evidence that the discharge of the Member’s duties is the predominant cause of the incapacity.

An Airport Peace 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 the Member’s disability. Such retirement allowance shall be in an amount of not less than 30% and not more than 90% of the Retired Airport Peace 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 Airport Peace Officer Member.

No Retired Airport Peace Officer Member, while retired pursuant to this subsection, ever shall be paid any retirement allowance pursuant to Sections 4.1005 (Service Retirement) or 4.1006 (Deferred Service Retirement) or Subsection (c) of this section.

(c) Nonservice-Connected Disability. Upon the filing of a written application for a disability retirement allowance by any Airport Peace Officer Member 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 of Airports or Fire Department, for any Airport Peace 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 the Member’s assigned duties or those to which the Member 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 Department of Airports or Fire Department employee. As a further condition of entitlement to such a retirement, the Board shall also determine that such disability was not principally due to or caused by voluntary action of the Member intended to entitle the Member to a nonservice-connected disability retirement.

An Airport Peace 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 Airport Peace Officer Member’s Final Compensation as the Board shall determine, from time to time, to be the percentage of the Member’s disability, but such retirement allowance shall be in an amount of not less than 30% and not more than 50% of the Retired Airport Peace Officer Member’s Final Compensation.

No Airport Peace Officer Member, while retired pursuant to this subsection, ever shall be paid any retirement pursuant either to Sections 4.1005 (Service Retirement) or 4.1006 (Deferred Service Retirement) or to Subsection (b) of this section.

(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 regularly licensed, practicing physicians selected by the Board, unless the Member is terminally ill, in which case the Board shall only require the member to be examined by one such physician selected by the Board. The Board shall hold a hearing with respect to such application. The Board shall hear or 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 the Member’s duties or those to which the Member would be assigned within the Member’s civil service classification if returned to duty. If the Board were to determine that the Member is not so incapable, it shall then be the duty of the Board to deny the application. If the Board were to determine that the Member is so incapable, it then shall determine, pursuant to the language used in Subsections (b) and (c) of this section, whether the Member’s incapacity or disability is service-connected or nonservice-connected. The Board shall then 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 the Member to a nonservice-connected disability retirement allowance, or due to intemperance unattributable to a physical or mental impairment, or the willful misconduct of such Member, it shall then be the duty of the Board to deny the application. In the case of any Airport Peace Officer Former Member, the Board, in order to grant any application filed by the Member for a disability retirement, must also determine, in addition to all of the foregoing, that any existing incapacity or disability upon the Member’s part occurred prior to the termination of the Member’s 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 Airport Peace 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 the Retired Member’s 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 the Retired Member was 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 an Airport Peace Officer Member dies while the Member was waiting for the application to be processed, the death and survivorship benefits payable to the Member’s survivor(s) shall be determined under Section 4.1010.1 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 Retirement. The retirement of any Retired Airport Peace 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, to perform police or firefighting duties for the Department of Airports or Fire Department, had been terminated by reason of the Member’s retirement, shall cease when the incapacity or disability for which the Member had been retired shall cease and the Member either:

(A) shall have been restored to active duty as an employee sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports or Fire Department, in the same permanent rank which the Member 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, to perform police or firefighting duties for the Department of Airports or Fire Department, 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 Airport Peace Officer Member who has been retired for more than five (5) years from the date of the Board’s action by which the Member was retired may never be restored to active duty as an Department of Airports or Fire Department Member. After a Retired Airport Peace Officer Member, who has been retired for more than five years on a service-connected or nonservice-connected disability retirement, has been found to be no longer disabled, the Board shall adjust such Retired Airport Peace Officer Member’s retirement allowance to 30% of the Member’s Final Compensation. The adjusted allowance shall reflect such cost of living adjustments as would have occurred had the Retired Airport Peace Officer Member’s retirement allowance originally been based on such adjusted percentage.

(2) Return to Active Duty from Disability Retirement. An Airport Peace Officer who is restored to active duty shall begin to earn time toward a service retirement (for the period the Officer was receiving a service-connected disability retirement) after one year back on active duty, provided no time is lost due to the disabling condition. If the Officer completes one (1) to three (3) years of service, the Officer 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 Airport Peace Officer shall receive credit for the entire period the Airport Peace Officer was on a service-connected disability retirement.

An Airport Peace Officer who is restored to active duty from a nonservice-connected disability retirement may, after completing one (1) year of service, make contributions to restore the Officer’s service credit for the period the Officer received a disability retirement allowance, subject to requirements provided by Board rule.

(3) Retirements Granted to Airport Peace Officer Former Members. The retirement of any Retired Airport Peace 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, to perform police or firefighting duties for the Department of Airports or Fire Department, had been terminated by reason of the Member’s resignation or discharge as such, shall cease when the incapacity or disability for which the Member 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 Airport Peace Officer Member is still disabled, all Retired Airport Peace Officer Members on a disability retirement shall undergo medical examinations at periodic intervals for the first five (5) years of disability retirement, and at any time thereafter, as determined by the Board.

Any Retired Airport Peace Officer Member who has been retired for more than five (5) years on a service- connected or nonservice-connected disability retirement and has been 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 the Member’s 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 Airport Peace Officer Member’s pension originally been based on such adjusted percentage.

If a Retired Airport Peace 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, if it is determined that it would impose hardship on the person to be examined to travel to such place, have the authority to defray the reasonable cost of any such travel required. 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 provide, by rule, for assessing the cost of medical appointments missed by disability retirement applicants, or by Retired Airport Peace Officer Members receiving a disability retirement allowance, where such missed appointments were not caused by factors beyond the control of the Airport Peace Officer Member or Retired Airport Peace Officer Member.

(i) Re-application After Denial of Disability Retirement. The Board shall establish reasonable rules governing the re-application by an Airport Peace 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. An Airport Peace Officer Former Member, whose status as an employee sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports or Fire Department, had been terminated by reason of the Member’s 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 the Member 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 the person has 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 the person is 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, the person’s disability retirement allowance shall cease, and, should the person be eligible for membership in the Retirement System, the person shall again 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 Airport Peace 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 an Airport Peace Officer Member of Tier 1. The balance, if any, of the Member’ 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.

The Member shall receive service credit for City Service prior to the date of their retirement in the same manner as though the Member had never been retired for disability. The payment of a disability retirement allowance shall not constitute compensation from the City entitling the Member to service for the period it was paid, except as provided in Section 4.1008.1(f)(2).

(l) Exclusion for Willful Misconduct. 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 an Airport Peace 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 Airport Peace 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 Airport Peace Officer Member Disability Applicants. The Board shall, by rule, establish a loan program for Airport Peace 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 shall further 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 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 4.1001, 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 less.

(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 the member would have made to the Fund had the member 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 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 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 shall also 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 the member with the Board; provided, however, that should the member, for any reason, cease to be a member before making up the full amount thereof, the member shall be allowed retirement credit, counter- calendarwise, for the same portion of such designated period as the amount made up by the member is of such full amount, and provided further that, should the member cease to be a member by reason of the member’s death, retirement credit shall be allowed for the whole period designated by the member if the member’s surviving spouse or domestic partner 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 Airport Peace Officer Former Members. Any Airport Peace Officer Former Member, who became such because of termination of their employment for any reason including service retirement, who shall believe that the Member is eligible to be paid a disability retirement allowance pursuant to this Section 4.1008.1, may file the Member’s written application for the payment of a disability retirement allowance within one (1) year from the date the Member ceased to be an Airport Peace Officer Member, or one (1) year from the Member’s last day on active payroll. The Board, if it were to determine that the contingencies provided in this Section for the payment thereof had happened or occurred as to the Airport Peace Officer Former Member prior to the date upon which the Member had ceased to be a Member, and if there is no legal bar or defense to the granting to the Member of such retirement or to any judicial action or proceeding which could be brought by the Member with respect thereto, shall grant the Member the retirement allowance in accordance with the Member’s written application.

SECTION HISTORY

Added by Ord. No. 184,853, Eff. 4-6-17.

Amended by: Subsecs. (a), (d) and (l), Ord. No. 188,756, Eff. 11-16-25.

(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 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, but no later than one year after the discontinuance of the service of such employee, provided such incapacity has been continuous from the discontinuance of such service. No application may be filed under this Section 4.1008.2 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.

No Retired Public Safety Officer Member, while retired pursuant to this subsection, ever shall be paid any retirement allowance pursuant to Sections 4.1005 (Service Retirement) or 4.1006 (Deferred Service Retirement) or Subsection (c) of this section.

(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 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 unattributable to a physical or mental impairment, 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.

No Public Safety Officer Member, while retired pursuant to this subsection, ever shall be paid any retirement pursuant either to Sections 4.1005 (Service Retirement) or 4.1006 (Deferred Service Retirement) or to Subsection (b) of this section.

(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 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.

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 unattributable to a physical or mental impairment, 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 4.1010.2 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 Service 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 Officer 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. The Board shall have the authority to defray the reasonable cost of any such travel required if it determines 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 and 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 had 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 1. 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 4.1008.2(f)(2).

(l) Exclusion for Willful Misconduct. 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 4.1001, 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 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 their 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 4.1008.2, 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.

Amended by: Subsecs. (a), (c), (d) and (l), Ord. No. 188,756, Eff. 11-16-25.

(a) Establishment of Domestic Partnerships with LACERS. Domestic partners are two adults who have chosen to share one another’s lives in an intimate and committed relationship of mutual caring. A domestic partnership shall be established for purposes of this Article when both partners file a Declaration of Domestic Partnership with the Board, provided all the following requirements are met:

(1) Both persons agree to be jointly responsible for each other’s basic living expenses incurred during the domestic partnership.

(2) Neither person is married or a member of another domestic partnership.

(3) The two persons are not related by blood in a way that would prevent them from being married to each other in this State.

(4) Both persons are at least eighteen (18) years of age.

(5) Both persons may be of the same sex or the opposite sex.

(6) Both persons are capable of consenting to the domestic partnership.

An Affidavit of Domestic Partnership filed prior to July 1, 2000, with the Board shall be treated for all purposes of this Article as being the same as a Declaration of Domestic Partnership filed pursuant to this subsection.

(b) Termination of Domestic Partnerships with LACERS. Once a domestic partnership is established as provided above, this domestic partnership shall be terminated when any of the following occurs:

(1) One partner gives, or sends by certified mail, to the other partner a written notice that the partner is terminating the partnership.

(2) One of the domestic partners dies.

(3) One of the domestic partners marries.

Upon termination of a domestic partnership, at least one of the former partners shall file a Notice of Termination of Domestic Partnership with the Board, provided that failure to file such notice shall not prevent the termination of the domestic partnership. This provision shall apply both to partnerships established on or after July 1, 2000 by the filing of a Declaration of Domestic Partnership and to partnerships established prior to July 1, 2000, by the filing of an Affidavit of Domestic Partnership.

(c) Six Month Prohibition. No person who has established a domestic partnership, by filing either an Affidavit of Domestic Partnership or a Declaration of Domestic Partnership with the Board, may file a new Declaration of Domestic Partnership with the Board until at least six (6) months after the date that a Notice of Termination of Domestic Partnership was filed with the Board as provided herein. This prohibition does not apply if the previous domestic partnership ended because one of the partners died or married.

(d) Board Authority to Establish Earlier Filing Date. Where a Declaration of Domestic Partnership is required to be on file with the Board for at least one (1) year, the Board may establish an earlier filing date than the actual date that the parties filed their Declaration of Domestic Partnership with the Board upon sufficient proof that the parties have an Affidavit or Declaration of Domestic Partnership on file earlier with the Personnel Department.

(e) Death Prior to Filing. Should a member die prior to filing a Declaration of Domestic Partnership with the Board, but (1) have a current domestic partner based upon an earlier established domestic partnership with the Personnel Department, and (2) have a beneficiary designation on file with the Board that designates that domestic partner as the beneficiary entitled to receive all of the member’s contributions, then such domestic partner shall be entitled to receive the same benefits that the domestic partner would have received had their domestic partnership been filed with the Board, as provided herein, on the date that the parties filed their Affidavit or Declaration of Domestic Partnership with the Personnel Department.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Death of Member before Retirement. Upon the death of any Member before retirement:

(1) Accumulated Contributions. The Member’s Accumulated Contributions shall be paid to such person or legal entity as the Member shall have nominated by written designation duly executed and filed with the Board of Administration or, if there be no such written designation of beneficiary, then to the surviving spouse or Domestic Partner of such deceased Member, or to the Member’s children in the event there be no surviving spouse or Domestic Partner, or to the Member’s parents in the event there be no surviving spouse or Domestic Partner or children. In the event there be no written designation of beneficiary, surviving spouse or Domestic Partner, children or parents, then said Accumulated Contributions shall be paid to the executor or administrator of the estate of such deceased Member, or to any other person or legal entity legally authorized to collect money due the decedent.

(2) Limited Pension. In the event such Member shall have had at least one year of City Service for which the Member is entitled to receive Service Credit, then a limited pension shall be paid as provided herein. The limited pension shall be paid in equal monthly payments of one-half of the average monthly Compensation Earnable of such Member during the Member’s last year of service. For each year of service, not to exceed six years, two monthly payments shall be paid, not to exceed a total of 12 monthly payments for six or more years of service. Such limited pension shall be paid to the surviving spouse or Domestic Partner of such deceased Member or, in the event there shall be no surviving spouse or Domestic Partner, to the minor children of such Member. The payment to a minor child shall continue beyond the month the child reaches age 18 if the child was a minor on the date of the Member’s death. In the event there be no surviving spouse or Domestic Partner or minor children, the limited pension shall be paid to the dependent parents of such Member. However, no limited pension shall be paid in the event the Board of Administration, upon investigation and after a hearing in the matter, finds that the death of such Member was due to or resulted from the intemperance unattributable to a physical or mental impairment, or the willful misconduct of such Member. In the event any such beneficiary dies before receiving the full amount of such limited pension, the same shall be continued to the persons who, in the order hereinabove set forth, qualify as beneficiaries thereof as of the date of death of such deceased beneficiary and who, within sixty (60) days after such date make demand for payment thereof; provided, however, that in the event no such demand is made within such time, the said limited pension shall be deemed conclusively to have been terminated as of such date of death.

(3) Election of Optional Retirement Allowance When Member Eligible to Retire. In the event a Member was eligible to retire pursuant to the provisions of Section 4.1005 and the person or persons entitled to be paid the Member’s limited pension is or are the same person or persons entitled to be paid, against the claims or demands of any and all other persons thereto, the full amount of the Member’s Accumulated Contributions, then the person or persons entitled to be paid both the Member’s limited pension and the Accumulated Contributions may, by a written instrument duly executed, acknowledged and filed with the Board of Administration, waive payment of such limited pension and such Accumulated Contributions and elect to be paid, in lieu thereof, the optional retirement allowance which would have been paid to the Member throughout the Member’s life and continued, upon the Member’s death, throughout the life or lives of the person or persons as the Member’s designated survivor or survivors, had the Member, as of the day preceding their death, been retired pursuant to the provisions of Section 4.1015(a)(1) and designated such person or persons as the Member’s survivor or survivors. In no event shall the benefits of this subsection be payable to any person after the allowance of a limited pension pursuant to the provisions of this subsection, nor shall the limited pension be payable to any person after the allowance of the benefits of this subsection. If any person elects to receive the optional retirement allowance provided in this subsection, no benefits shall be paid from the Family Death Benefit Plan established in Section 4.1090 of this chapter.

The duly appointed, qualified and acting guardian of the estate of a minor child or an incompetent shall make such waiver and election on behalf of such minor child or incompetent.

If a surviving spouse or Domestic Partner makes the election authorized herein, the annuity portion of the allowance to be paid 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. The excess of the deceased Member’s total Accumulated Contributions over the normal Accumulated Contributions at the time of death shall be paid to said surviving spouse or Domestic Partner or, at the option of such survivor, considered as additional contributions made to provide a larger annuity benefit.

The deceased Member’s accrued vacation time, or any necessary portion thereof, as defined in Article 1, Chapter 6, Division 4 of this Code or an applicable memorandum of understanding, immediately preceding the day of the Member’s death may be added to their total years of service in order to render the deceased Member eligible to have retired pursuant to Section 4.1005 at the time of death and to ensure their survivor qualifies for the survivorship benefits provided in this subsection. The benefit herein created shall be available at the option of the eligible survivor of the deceased Member. The deceased Member's accrued vacation time may be utilized only for purposes of establishing eligibility to the survivorship benefits provided in this subsection and may not be used to create or affect other retirement rights provided in the City Charter or the Los Angeles Administrative Code.

(4) Survivor Benefit Options. Certain survivors of Members who die before retirement may be eligible to elect to receive a lifetime allowance pursuant to the provisions of Section 4.1011. The right to elect the benefit provided in Section 4.1011 is contingent upon an otherwise eligible survivor being entitled to receive all of the deceased Member’s contributions because that benefit is provided in lieu of the payment of the Member’s contributions and a limited pension, as authorized in this subsection.

(b) Death of Former Member Before Retirement. Upon the death of any former Member who had not yet retired and whose contributions remain on deposit:

(1) Accumulated Contributions. The former Member’s Accumulated Contributions shall be paid to such person or legal entity as the former Member shall have nominated by written designation duly executed and filed with the Board of Administration or, if there be no such written designation of beneficiary, then to the surviving spouse or Domestic Partner of such deceased Member, or to the Member’s children in the event there be no surviving spouse or Domestic Partner, or to the Member’s parents in the event there be no surviving spouse or Domestic Partner or children. In the event there be no written designation of beneficiary, surviving spouse or Domestic Partner, children or parents, then said Accumulated Contributions shall be paid to the executor or administrator of the estate of such deceased Member, or to any other person or legal entity legally authorized to collect money due the decedent.

(2) Optional Retirement Allowance. In the event the surviving spouse or Domestic Partner of such former Member is entitled to be paid, against the claims or demands of any and all other persons thereto, the full amount of such former Member’s Accumulated Contributions, and further provided that such former Member had completed five (5) or more years of Continuous Service with the City:

(i) Eligible for Deferred Retirement. If a former Member was eligible for deferred service retirement at the time of their death, then such surviving spouse or Domestic Partner may by a written instrument, duly executed, acknowledged and filed with the Board of Administration, waive payment of the Accumulated Contributions that would otherwise be payable under this subsection and elect to receive an optional retirement allowance equal to that which the former Member would have received had they retired under the provisions of Section 4.1015(a)(1) on the day prior to their death.

(ii) Eligible for Future Deferred Retirement. If a former Member was not eligible for deferred service retirement at the time of their death, then such surviving spouse or Domestic Partner may, by a written instrument duly executed, acknowledged and filed with the Board of Administration, waive payment of the Accumulated Contributions that would otherwise be payable under this subsection, and elect to wait until such time as the former Member would have been entitled to receive a service retirement allowance and then shall receive an optional retirement allowance equal to that which the former Member would have received had they retired under the provisions of Section 4.1015(a)(1) on the day first eligible to receive such benefit.

(c) Death of Retired Member. Upon the death of a retired Member:

(1) Survivor Continuance Options. Sections 4.1012, 4.1013, 4.1014 and 4.1015 contain provisions that authorize the payment of retirement allowances to specified survivors of retired Members. These benefits are generally referred to as continuance benefits because the benefit is based on a continuation to the survivor of some portion of the deceased retired Member's allowance.

(2) Unused Contributions and Unpaid Retirement Allowance. Upon the death of a retired Member or upon the death of all of the Member’s survivors to whom a retirement allowance was paid, the unused contributions and any accrued but unpaid retirement allowance due the retiree shall be paid in the same manner as that provided in Subsection (a)(1) of this section for the payment of the Accumulated Contributions of a Member who dies before retirement; provided, however, that the retired Member or any survivors shall not have received a retirement allowance pursuant to which no refund of contributions is payable upon the death of the retiree or the retiree’s last survivor, in which case no contributions shall be refundable. For the purpose of this Article, the phrase “unused contributions” shall be the remainder, if any, of the Accumulated Contributions of such deceased Member after deducting the total of all amounts paid on account of any annuity to such retiree and to the retiree’s survivor or survivors, provided that there shall be no unused contributions in the event that the retiree or any survivors received a retirement allowance pursuant to which no refund of contributions is payable upon the death of the retiree or the retiree’s last survivor.

The spouse or Domestic Partner who is receiving an allowance as a result of the death of a deceased Member, referred to as a survivor for purposes of this provision, may file a beneficiary designation with the Board of Administration naming a beneficiary or beneficiaries for any accrued but unpaid allowance payable upon the survivor's death and, subject to the limitations set forth below, for the deceased Member’s unused contributions.

Upon the survivor’s death, any accrued but unpaid allowance due the survivor shall be paid in the following order: (i) to the survivor’s designated beneficiaries; (ii) if none, to the children of the survivor; (iii) if no children, to the parents of the survivor; (iv) if no parents, to the executor or administrator of the estate of the survivor; or (v) to any other person or legal entity legally entitled to collect money due to the survivor. Should the survivor leave no person or legal entity legally entitled to collect any accrued allowance, it shall be paid in the following order: (i) to the deceased Member's children; or (ii) if none, to the deceased Member's parents; or (iii) if none, to the executor or administrator of the estate of the Member; or (iv) to any other person or legal entity legally entitled to collect money due to the deceased Member.

If the deceased Member has failed to designate a beneficiary for the unused contributions or if the beneficiaries so designated by the deceased Member have all predeceased the survivor, then, upon the death of the survivor, the Board of Administration shall pay the unused contributions pursuant to the survivor’s beneficiary designation on file with the Board. In the event the survivor has no beneficiary designation on file or the named beneficiaries have all predeceased the survivor, then the unused contributions shall be paid in the following order: (i) to the deceased Member’s children; or (ii) if none, to the deceased Member’s parents; or (iii) if none, to the executor or administrator of the estate of the survivor; or (iv) to any other person or legal entity legally entitled to collect money due to the deceased survivor.

(3) Burial Allowance. Upon the death of every retired Member, the sum of $2,500.00 shall be paid to such person or legal entity as the retired Member shall have nominated by written designation, duly executed and filed with the Board of Administration; or to the surviving spouse or Domestic Partner of such deceased retired Member, in the event there be no designated beneficiary; or to their child or children, in the event there be no designated beneficiary or surviving spouse or Domestic Partner, provided that such payment shall be made only after satisfactory evidence has been presented to the Board showing that the expense of burial of the decedent has been paid or that the obligation to pay therefor has been assumed by a person or persons or an organization legally capable of contracting such obligation. The fact of burial, as evidenced by a certified copy of the death certificate, shall be sufficient evidence of compliance with the requirements stated in the foregoing sentence. While the purpose of this benefit is to provide a funeral allowance for the retired Member, the Retirement System shall have no responsibility to assure that this payment is used for that purpose.

In the event there be no designated beneficiary, surviving spouse or Domestic Partner, or child or children, or in the event the requirements herein stated with respect to the expense of burial of such retired Member have not been complied with within such time as said Board, in its discretion, may determine, then the payment of the amount specified in this subsection shall be paid to the executor or administrator of the estate of such decedent, or to any other person or legal entity legally authorized to receive money due said decedent.

(d) Reversion of Unclaimed Contributions to the Retirement Fund. The right to payment of the Accumulated Contributions upon the death of the Member or former Member before retirement, as provided in Subsections (a) and (b) herein, and the right to payment of the Member’s unused contributions, as provided in Subsection (c) herein, upon the later of the death of the retired Member or the Member’s survivor to whom an allowance was paid, is a vested property right of the person(s) entitled to such payment; provided, however, that should the person(s) entitled thereto fail to claim this benefit within ten (10) years from the date of such death, the funds shall revert to the Retirement Fund, unless and until, the Board of Administration receives a valid belated claim for payment, determined at the sole discretion of the Board of Administration. Any death benefit payable shall be subject to mandatory minimum distribution as required by the Internal Revenue Code; provided that the funds that are required to be distributed shall revert to the Retirement Fund if the person(s) entitled to the funds refuses to cooperate in electing to be paid such funds or cannot be located and the Retirement System has followed Internal Revenue Service procedures to locate such person(s).

(e) Reserved.

(f) All benefits payable upon the death of an Airport Peace Officer Member, Airport Peace Officer Former Member, or Airport Peace Officer Retired Member, shall be determined by Section 4.1010.1, and the provisions of this section and Sections 4.1011, 4.1012, 4.1013, 4.1014 and 4.1015, shall not apply. The provisions of Section 4.1090 establishing the Family Death Benefit Plan shall apply only to the extent that it would not cause a survivor benefit to be paid that exceeds any limitations imposed by the Internal Revenue Code.

(g) All benefits payable upon the death of a Public Safety Officer Member or Public Safety Officer Former Member shall be determined by Section 4.1010.2, and the provisions of this section and Sections 4.1010.1, 4.1011, 4.1012(b) and (c), 4.1013, 4.1014 and 4.1015, shall not apply. All benefits payable upon the death of a Public Safety Officer Retired Member, who at the time of death was receiving a disability retirement allowance pursuant to Section 4.1008.2, shall be determined by Section 4.1010.2, and the provisions of this section and Sections 4.1010.1, 4.1011, 4.1012(b) and (c), 4.1013, 4.1014 and 4.1015, shall not apply. The provisions of Section 4.1090 establishing the Family Death Benefit Plan shall apply only to the extent that it would not cause a survivor allowance to be paid that exceeds any limitations imposed by the Internal Revenue Code.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (f) added, Ord. No. 184,853, Eff. 4-6-17; Title and Section In Entirety, Ord. No. 187,923, Eff. 7-9-23; Subsecs. (a)(2) and (g), Ord. No. 188,756, Eff. 11-16-25.

All benefits payable upon the death of an Airport Peace Officer Member, Airport Peace Officer Former Member, or Airport Peace Officer Retired Member, as defined in Section 4.1001(a), shall be determined by this Section 4.1010.1, and the provisions of Sections 4.1010, 4.1011, 4.1012(b) and (c), 4.1013, 4.1014, and 4.1015, shall not apply. Notwithstanding anything to the contrary, no survivor allowance shall be paid under this Section 4.1010.1 to the extent it exceeds any limitations imposed by the Internal Revenue Code. The Board shall have the authority to adopt rules to implement this limitation.

(a) Definitions. As used in this section, the following words and phrases shall have the meaning ascribed to them in this paragraph:

Accumulated Contributions. The total of the amounts paid into the Retirement Fund by the Airport Peace Officer Member and any interest credited to the Member’s account.

Assignment Pay. Assignment Pay means any additional gross monthly pay which, by reason of assignment to perform special duties or hazardous duties, in a higher class, position, grade, code or other title than the lowest thereof within the Airport Peace Officer Member’s permanent rank, shall be provided by ordinance or Memorandum of Understanding.

Minor Child. Minor Child means a person who is a natural child or an adopted child of a deceased Airport Peace Officer Member or Airport Peace Officer Retired Member but such person shall be a Minor Child only until such person shall attain the age of 18 years or until such person reaches the age of 22 years if such person is enrolled in school on a full-time basis as determined by the Board. Entitlement to the benefits of a Minor Child shall terminate if such person marries prior to reaching the age limit(s) provided herein.

Dependent Child. Dependent Child means a person who is a child of a deceased Airport Peace Officer Member or Airport Peace Officer Retired Member, who, while under the age of 21 years, had become disabled, either prior to or after the date of death of such member, from earning a livelihood for any cause or reason whatsoever. Such person shall be a Dependent Child only until such person shall cease to be disabled from earning a livelihood. Should disability cease before the age of 22 years, the limitations set forth in Subsection (g) of this section shall be applicable.

Dependent Parent. Dependent Parent means a person who is a parent of a deceased Airport Peace Officer Member or Airport Peace Officer Retired Member and to or for whom such deceased member, during at least one (1) year immediately preceding the member’s death, contributed one-half or more of such Dependent Parent’s necessary living expenses and who is unable to pay such expenses without the receipt of an allowance. Such person shall be a Dependent Parent only until the person shall be able to pay the person’s necessary living expenses.

Eligible Surviving Domestic Partner. Eligible Surviving Domestic Partner means a person whose Declaration of Domestic Partnership with the Airport Peace Officer Member was on file with the Board, as provided in Section 4.1009 of the Los Angeles Administrative Code, or whose domestic partnership with the Airport Peace Officer Member was registered with the state:

(1) for at least one (1) year prior to the date of the Airport Peace Officer Member’s nonservice-connected death; or

(2) on the date of the Airport Peace Officer Member’s service-connected death; or

(3) for at least one (1) year prior to the effective date of the Airport Peace Officer Member’s retirement upon a service retirement or a nonservice-connected disability retirement; or

(4) on the effective date of the Airport Peace Officer Member’s service-connected disability; or

(5) on the date of the Airport Peace Officer Member’s nonservice-connected death while on military leave.

In addition, on the date of the Member’s death, this person must be either the domestic partner (registered with the state or filed with the Plan) or spouse of such member.

Eligible Surviving Spouse. Eligible Surviving Spouse means a person who was married to the Airport Peace Officer Member:

(1) for at least one year prior to the date of the Member’s nonservice-connected death while an Airport Peace Officer Member, or

(2) on the date of the Airport Peace Officer Member’s service-connected death, or

(3) for at least one year prior to the effective date of the Airport Peace Officer Member’s retirement upon a service retirement or a nonservice-connected disability retirement, or

(4) on the effective date of the Airport Peace Officer Member’s service-connected disability retirement, or

(5) on the date of the Airport Peace Officer Member’s nonservice-connected death while on military leave.

Eligible Survivor. Eligible Survivor means a person who is either an Eligible Surviving Spouse or an Eligible Surviving Domestic Partner.

Hazard Pay. Hazard Pay means any additional gross monthly pay which, by reason of assignment to perform helicopter duties, two-wheel motorcycle duties or any other hazardous duties, shall be provided by ordinance or Memorandum of Understanding

Length of Service Pay. Length of Service Pay means any additional gross monthly pay which, by reason of length of service, shall be provided by ordinance or by Memorandum of Understanding.

Member. Member means Airport Peace Officer Member, Airport Peace Officer Retired Member, or Airport Peace Officer Former Member, as appropriate.

Special Pay. Special Pay means any additional gross monthly pay which, by reason of assignment to perform special duties other than hazardous duties, shall be provided by ordinance or Memorandum of Understanding.

Year. Year means a period of 12 months or, in aggregating partial years for purposes of determining Service, means 365 days.

Final Compensation. Final Compensation means an amount equivalent to a monthly average of salary actually earned during any 12 consecutive months of service as a Member of the Retirement System, as designated by the Member. In the absence of such designation, the last 12 consecutive months preceding the date upon which retirement would become effective shall be used as the basis for the calculation of Final Compensation.

For the purposes of determining Final Compensation for periods during which the Member receives less than full salary on account of injury or illness, pursuant to any applicable ordinance of the City, the Final Compensation shall be based upon the salary, including any Length of Service Pay, Special Pay, Assignment Pay or Hazard Pay, the Member would have received but for the injury or illness.

Included in the calculation of Final Compensation shall be Length of Service Pay, Special Pay, Assignment Pay and Hazard Pay actually earned during the 12 consecutive months used to determine Final Compensation.

For those Airport Peace Officer Members who retire from the Department of Airports while holding a rank no higher than Lieutenant or the Fire Department while holding a rank no higher than Captain: If Hazard Pay was not earned during all or any part of the 12 consecutive months used to determine Final Compensation, then an amount equivalent to 10% of the Hazard Pay earned at the time of the termination of the last assignment of hazardous duties for each year in the aggregate of the assignment to hazardous duties shall be added to the Final Compensation, not to exceed 10 years in the aggregate. The total amount of Hazard Pay included in Final Compensation may not exceed 100% of the amount the Member would have earned had the Member been entitled to Hazard Pay during the entire 12-month period utilized in the calculation of Final Compensation.

Overtime compensation or payments of money to the member not designated as salary by an ordinance or Memorandum of Understanding shall not be considered for purposes of calculating Final Compensation.

Should a Member not have completed 12 consecutive months of service, then and in that event only shall the Final Compensation be calculated as a monthly average of all consecutive calendar months completed, and, if the Member has completed less than one month of total service as a Member, the salary actually received shall be used to calculate its monthly equivalent.

(b) Benefits for Eligible Survivor.

(1) Member’s Service-Connected Death. The Eligible Survivor of an Airport Peace Officer Member who shall die by reason of injuries received or sickness caused by the discharge of the Member’s duties while an Airport Peace Officer Member, shall be paid for life a monthly allowance in an amount which shall be equal to 80% of the deceased Member’s Final Compensation.

For the purposes of the benefit provided in this Subsection (b)(1), an Airport Peace Officer Member has died by reason of injuries received or sickness caused by the discharge of the Member’s duties if there is clear and convincing evidence that the discharge of the Member’s duties were the predominant cause of the Member’s death.

(2) Member’s Nonservice-Connected Death. The Eligible Survivor of an Airport Peace Officer Member who shall have five (5) or more years of Service and who shall die while an Airport Peace Officer Member, by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the Member’s duties, shall be paid for life a monthly allowance in an amount which shall be equal to 50% of the deceased Member’s Final Compensation.

(3) Retired Member’s Death While on a Service Retirement. The Eligible Survivor of an Airport Peace Officer Retired Member, who shall die while the Member is receiving a retirement allowance pursuant to Section 4.1007, shall be paid for life a monthly allowance in an amount which shall be equal to 70% of the retirement allowance received by the deceased Airport Peace Officer Retired Member immediately preceding the date of the Member’s death. The benefit described in this Subsection (b)(3) may be modified as provided in Subsection (c) of this section.

(4) Member’s Nonservice-Connected Death While on Military Leave. The Eligible Survivor of an Airport Peace Officer Member who, while on military leave, is killed as a result of the discharge of the Member’s military duties shall be paid for life, as a nonservice-connected survivor benefit, a monthly allowance in an amount which shall be equal to 50% of the deceased Member’

(5) Nonservice-Connected Death of Member with Less than Five Years of Service. In the event the Member died of nonservice-connected causes before having completed five years of Service, the Eligible Survivor of the deceased Airport Peace Officer Member, or the Member’s Minor or Dependent Children if there is no Eligible Survivor, or the Member’s Dependent Parents if there is no Eligible Survivor and no Minor or Dependent Children, shall be entitled to the Basic Death Benefit described in Subsection (b)(6) below.

(6) Basic Death Benefit and Election. The Basic Death Benefit shall consist of: (1) the return of a deceased Member’s accumulated contributions to the Retirement System with accrued interest thereon, subject to the rights created by virtue of the Member’s designation of a beneficiary as otherwise provided in the Retirement System; and (2) if the deceased Member had at least one year of Service, the deceased Member’s Final Compensation multiplied by the number of completed years of Service, not to exceed six years, provided that said amount shall be paid in monthly installments of one-half of the deceased Member’s Final Compensation.

An Eligible Survivor, or a guardian acting on behalf of the Minor or Dependent Children of a deceased Airport Peace Officer if there is no Eligible Survivor, or Dependent Parents if there is no Eligible Survivor and no Minor or Dependent Children entitled to an allowance pursuant to any of the provisions of this section, where benefits are based upon the Member’s death in active service, may, in lieu of the allowance provided and before the first payment of such allowance, elect to receive the Basic Death Benefit.

(7) Retired Member’s Death While on a Service-Connected Disability Retirement. The Eligible Survivor of an Airport Peace Officer Retired Member, who shall die while the Retired Member is receiving a service-connected disability allowance pursuant to Section 4.1008.1, shall be paid for life a monthly allowance in an amount which shall be equal to 80% of the allowance received by the deceased Airport Peace Officer Retired Member immediately preceding the date of the Retired Member’s death, unless the death of the Retired Member occurs within three (3) years after the effective date of the Retired Member’s allowance and is due to service-connected causes, in which case, the Eligible Survivor shall receive, or in a case where an option has been elected pursuant to Subsection (c) of this section, may elect to receive, 80% of the Retired Member’s Final Compensation, as modified by the cost of living adjustments made pursuant to Section 4.1022. The benefit described in this Subsection (b)(7) may be modified as provided in Subsection (c) of this section.

(8) Retired Member’s Death While on a Nonservice-Connected Disability Retirement. The Eligible Survivor of an Airport Peace Officer Retired Member, who shall die while the Retired Member is receiving a nonservice-connected disability allowance pursuant to Section 4.1008.1, shall be paid for life a monthly allowance in an amount which shall be equal to 70% of the allowance received by the deceased Retired Member immediately preceding the date of the Retired Member’s death. The benefit described in this Subsection (b)(8) may be modified as provided in Subsection (c) of this section.

(c) Optional Allowances for Eligible Survivor. At any time before the first payment of a service allowance, a service-connected disability allowance, or a nonservice- connected disability allowance, the Member may elect to receive, in lieu of the Member’s allowance as provided in Section 4.1007 (Service) or Section 4.1008.1 (Disability), the actuarial equivalent at that time of such allowance and of the allowance for the Eligible Survivor, as provided in Subsection (b) of this section, by electing an optional allowance payable throughout the balance of the Member’s life, with the provisions that upon the Member’s death such optional allowance shall be continued to the Member’s Eligible Survivor in the proportional amount designated by the Member at the time of election of the option provided by this section.

The amount of such optional allowance shall be so calculated that the liability of LACERS at the date of retirement under the optional allowance shall be equal to the liability of LACERS at the same date under the allowance awarded in accordance with the provisions of Section 4.1007 or Section 4.1008.1 and of the survivorship allowance provided by Subsection (b) of this section. For the purpose of this section, the liability of LACERS is defined as the present value, in accordance with tables adopted by the Board, of the allowances or optional allowances calculated by approved actuarial methods, and recommended by the Retirement System’s actuary. In determining the actuarial equivalent of the allowance for an Eligible Survivor as provided pursuant to Subsection (b)(7) of this section, the equivalent of a survivorship allowance of 80% of the retiree’s allowance shall be used in all cases.

The optional amounts, calculated in accordance with the foregoing paragraph, shall provide a range of optional values such that the amount to be paid to the Eligible Survivor shall range from 75% to 100% of the allowance payable to the Member.

If an Airport Peace Officer Retired Member, previously retired pursuant to the provisions of Section 4.1008.1, should be reinstated to active duty upon termination of the Member’s disability, the election to receive the optional allowance as herein provided shall be deemed cancelled as of the effective date of such reinstatement.

An Airport Peace Officer Retired Member, previously retired on a disability allowance pursuant to the provisions of Section 4.1008.1, shall have the right to cancel any option previously elected by the Member pursuant to the provisions of this subsection in the event the Member’s allowance is subsequently adjusted as provided for in Section 4.1008.1.

(d) Additional Allowance Amounts for Additional Beneficiaries. Whenever any Airport Peace Officer Member or Airport Peace Officer Retired Member shall die and leave surviving the Member, in addition to an Eligible Survivor, a Minor Child or Children or a Dependent Child or Children of the deceased member and the Eligible Survivor, then such Eligible Survivor shall be paid an additional monthly allowance in an amount which shall be equal to 25% of the allowance they as an Eligible Survivor would be entitled to pursuant to the provisions of Subsection (b) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination thereof, and 50% while there are three or more Minor Children or Dependent Children or a combination, and such additional monthly allowance shall be the exclusive property of such Eligible Survivor and not the property of any such Minor Child or Dependent Child.

Whenever any Airport Peace Officer Member or Airport Peace Officer Retired Member shall die and leave surviving the Member, in addition to an Eligible Survivor, a Minor Child or Children or a Dependent Child or Children who are not the child or children of the Eligible Survivor, then the guardian(s) or conservator(s), as appropriate, of the estate(s) of any such Minor Child or Children or Dependent Child or Children shall be paid a monthly allowance in an amount which shall be equal to 25% of the allowance the Eligible Survivor would be entitled to pursuant to the provisions of Subsection (b) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination.

Whenever any Airport Peace Officer Member or Airport Peace Officer Retired Member shall die and leave surviving the Member, in addition to an Eligible Survivor, a Minor Child or Children or a Dependent Child or Children of the deceased member and the Eligible Survivor and a Minor Child or Children or a Dependent Child or Children not the child or children of the Eligible Survivor, then a monthly allowance shall be paid in an amount which shall be equal to 25% of the allowance the Eligible Surviving Spouse would be entitled to pursuant to the provisions of Subsection (b) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination. The amount of such monthly allowance shall be divided by the number of Minor Children or Dependent Children and shall be adjusted accordingly whenever any Minor or Dependent Child shall cease to be such. The Eligible Survivor shall be paid the portion of such monthly allowance which shall be applicable to the number of the Eligible Survivor’s Minor Children or Dependent Children and the same shall be the Eligible Survivor’s exclusive property. The guardian(s) or conservator(s), as appropriate, of the estate(s) of the Minor Children or Dependent Children who are not those of the Eligible Survivor shall be paid the portion of such monthly allowance which shall be applicable to such Minor Children or Dependent Children and the same shall be the exclusive property of such children.

Any benefits provided in this subsection, which are not the property of the Eligible Survivor but are the property of the Minor Child or Dependent Child, shall not be required to be paid to a guardian or conservator of the Minor Child or Dependent Child if the Minor Child or Dependent Child is an adult who is capable of managing their financial affairs, in which case the benefits may be paid directly to such adult Minor Child or Dependent Child. Dependent Child benefits payable under this subsection shall be paid pursuant to the provisions of Charter Section 1238, if applicable.

The additional allowance amounts provided in this subsection for persons other than an Eligible Survivor are to be calculated on the basis of the applicable Eligible Survivor allowance provided pursuant to Subsection (b) of this section, unmodified by any election that may previously have been made pursuant to the provisions of Subsection (c) of this section.

Additional allowance amounts are also subject to the limitation that the amount of any survivorship allowance provided in this section, after the additional payments provided in this subsection are added thereto, may not exceed 100% of the Final Compensation of the deceased Airport Peace Officer or 100% of the Final Compensation of the deceased Retired Airport Peace Officer, as modified by the cost of living adjustments made pursuant to Section 4.1022 since the date of retirement of the Retired Member. In case of such excess, any additional allowance amounts shall be reduced to a level where the total amount of allowance is equal to such maximum.

(e) Allowance for Minor or Dependent Children Where Member Had No Eligible Survivor. Whenever any Airport Peace Officer Member or Airport Peace Officer Retired Member shall die without leaving an Eligible Survivor, the guardian or conservator, as applicable, of the estate(s) of the Member’s Minor or Dependent Children shall be paid, until each such child shall cease to be a Minor or Dependent Child, a monthly allowance equal to the allowance an Eligible Survivor would have been eligible to receive pursuant to Subsection (b) of this section had an Eligible Survivor survived such Member. Whenever any Airport Peace Officer or Retired Airport Peace Officer shall die leaving an Eligible Survivor who thereafter shall die, the guardian or conservator, as applicable, of the estate(s) of the Member’s Minor or Dependent Children shall be paid, until each such child shall cease to be a Minor or Dependent Child, a monthly allowance equal to the allowance an Eligible Survivor would have been eligible to receive pursuant to Subsection (b) of this section. In any of the foregoing events and if there were to be more than one Minor or Dependent Child, an equal share of such monthly allowance shall be paid for and on behalf of each such child to the guardian or conservator, as applicable, of each such child’s estate and shall be adjusted as each of them shall cease to be a Minor or Dependent Child in the manner set forth in Subsection (d) of this section. If payments are made pursuant to this Subsection (e), no additional allowance amounts shall be paid pursuant to Subsection (d) of this section. With regard to benefits payable to a Minor Child or Dependent Child who is an adult and capable of managing their financial affairs, the foregoing provisions requiring payment to a guardian or conservator of such child shall be disregarded and payment may be made directly to such adult child.

Dependent Child benefits payable under this subsection shall be paid pursuant to the provisions of Charter Section 1238, if applicable.

(f) Allowance for Dependent Parents Where Member Had No Eligible Survivor. Whenever any Airport Peace Officer Member or Airport Peace Officer Retired Member shall die without leaving an Eligible Survivor or a Minor or Dependent Child, a monthly allowance shall be paid to such Dependent Parents or to the survivor of them until each such Dependent Parent shall cease to be such. Any Dependent Parent who shall cease to be such, but who thereafter again shall become unable to pay the Dependent Parent’s necessary living expenses without an allowance, shall be entitled to have the Dependent Parent’s allowance reinstated.

The total amount of an allowance payable to the Dependent Parents shall be the same as that to which an Eligible Survivor would have been entitled pursuant to Subsection (b) of this section.

(g) Determinations With Respect to Cause of Death and Dependency. The Board shall have the same power as that which has been given to it by Section 4.1008.1(d) and (f) in order to determine:

(1) whether an Airport Peace Officer Member’s death was service-connected or nonservice-connected for the purposes of Section 4.1010.1(b)(1) and (2);

(2) whether or not a child of a deceased Airport Peace Officer Member or Airport Peace Officer Retired Member is a Dependent Child; and

(3) whether or not any parent of a deceased Airport Peace Officer Member or Airport Peace Officer Retired Member is a Dependent Parent.

The Board also shall have the power to determine, from time to time, whether or not a child continues to be a Dependent Child, whether or not a parent continues to be a Dependent Parent and whether or not a Dependent Parent who had ceased to be such thereafter shall have become entitled to have the Dependent Parent’s allowance reinstated. The Board shall also have the power to determine whether an adult Minor Child or Dependent Child is capable of managing their own financial affairs.

(h) Medical Reports and Hearings. The power of the Board to determine whether an Airport Peace Officer Member’s death was service-connected or nonservice- connected, as provided in Subsection (g) of this section, hereafter may be exercised by it upon the basis of a written report from one regularly licensed and practicing physician selected by it, but the Board, in its discretion, may obtain such a report from more than one such physician. This determination may, at the option of the Board, be made without a hearing being held pursuant to the provisions of Subsection (g) of this section, provided that, should any decision made without a hearing being held adversely affect any person, such person may request and, upon such request, shall be granted a hearing before the Board at which such decision shall be reconsidered.

(i) Distribution of Contributions. Whenever a Member dies prior to retirement without leaving a person or persons entitled to receive an allowance pursuant to the provisions of this section, then, and in that event, the Member’s contributions to the Retirement System, together with such interest as may have been credited to the Member’s individual account shall be paid to such person as the Member shall have nominated by written designation duly executed and filed with the Board; or, if there is no such designation, then to the Member’s Eligible Survivor; or, if none, then to the Member’s children; or, if no children, then to the Member’s parents. In the event there is no written designation of beneficiary, Eligible Survivor, children or parents, then the contributions shall be paid to the executor or administrator of the estate of such deceased Member or to any other person legally authorized to collect money due the decedent.

(j) Burial Allowance. Upon the death of every retired Member, the sum of $2,500.00 shall be paid to such person or legal entity as the retired member shall have nominated by written designation, duly executed and filed with the Board of Administration; or to the Eligible Survivor of such deceased retired member, in the event there be no designated beneficiary; or to the retired Member’s child or children, in the event there be no designated beneficiary or Eligible Survivor, provided that such payment shall be made only after satisfactory evidence has been presented to the Board showing that the expense of burial of the decedent has been paid or that the obligation to pay therefor has been assumed by a person or persons or an organization legally capable of contracting such obligation. The fact of burial, as evidenced by a certified copy of the death certificate, shall be sufficient evidence of compliance with the requirements stated in the foregoing sentence. While the purpose of this benefit is to provide a funeral allowance for the deceased retiree, the Retirement System shall have no responsibility to assure that this payment is used for that purpose.

In the event there be no designated beneficiary, Eligible Survivor, or child or children, or in the event the requirements herein stated with respect to the expense of burial of such retired member have not been complied with within such time as said Board, in its discretion, may determine, then the payment of the amount specified in this subsection shall be paid to the executor or administrator of the estate of such decedent, or to any other person or legal entity legally authorized to receive money due said decedent.

(k) Reversion of Unclaimed Contributions to the Retirement Fund. The right to the payments set forth in this section is a vested property right of the person(s) entitled to such payment; provided, however, that should the person(s) entitled thereto fail to claim this benefit within ten (10) years from the date of such death, the funds shall revert to the Retirement Fund, unless and until, the Board of Administration receives a valid belated claim for payment, determined at the sole discretion of the Board of Administration. Any death benefit payable shall be subject to mandatory minimum distribution as required by the Internal Revenue Code, provided that the funds that are required to be distributed shall revert to the Retirement Fund if the person(s) entitled to the funds refuses to cooperate in electing to be paid such funds or cannot be located and the Retirement System has followed Internal Revenue Service procedures to locate such person(s).

(l) Survivor Benefit Purchase Program for Airport Peace Officer Retired Members. An Airport Peace Officer Retired Member may elect, after retirement, to provide a survivor benefit to a spouse or domestic partner subject to the following:

(1) Member to Pay Full Cost. The Airport Peace Officer Retired Member shall pay the full actuarially determined cost of the survivor benefit through an actuarial reduction in the Member’s monthly pension benefit.

(2) Vesting Requirement. The right to benefits under this program shall not vest until the Airport Peace Officer Retired Member survives at least one (1) year from the date the Member makes an election to provide this benefit, unless the Board shall determine by a preponderance of the evidence that the Airport Peace Officer Retired Member’s death was accidental.

If the right to benefits has not vested before the date of the Airport Peace Officer Retired Member’s death and the accidental death exception does not apply, then no survivor benefit shall be provided by the Retirement System and the amount by which the Airport Peace Officer Retired Member’s monthly benefits were reduced after making this election shall be paid as a lump sum to the spouse or domestic partner, provided that if the spouse or domestic partner has predeceased the member, the lump sum shall be paid to the member’s estate.

(3) Only One Election Allowed. In order to minimize administrative costs to the Retirement System, an Airport Peace Officer Retired Member may only exercise this election once. The Airport Peace Officer Retired Member’s election shall not apply to any interest in their pension benefit awarded by the court to another person, but only to the interest retained by the Airport Peace Officer Retired Member. The election may only be made to provide a benefit for a spouse or domestic partner who is not already qualified to receive a benefit from the Retirement System upon the Airport Peace Officer Retired Member’s death. For purposes of this section, a domestic partnership must either be filed with the Retirement System or the California Secretary of State or be recognized as a valid domestic partnership in this state based upon the provisions of Section 299.2 of the Family Code or any successor provisions.

(4) Irrevocable Election. Once an election is made, it is irrevocable. The Airport Peace Officer Retired Member’s monthly pension benefits will be permanently reduced and will not increase if the spouse or domestic partner predeceases the Airport Peace Officer Retired Member or if their marriage or domestic partnership is otherwise terminated.

(5) Survivor Benefit. The benefit authorized by this section consists of a percentage continuation of the Airport Peace Officer Retired Member’s monthly pension benefit payable to the surviving spouse or domestic partner of the Retired Member for the survivor’s lifetime. In order to be eligible to receive the survivor benefit provided by this section, the survivor must be either the spouse or domestic partner of the Retired Member at the time the Member elected to provide this benefit and at the time of the Member’s death. A survivor receiving a benefit under this section shall not be eligible for a health subsidy from the Retirement System. The payment of a survivor benefit provided by this section does not impact the payment of other survivor benefits from the Retirement System.

(6) Payment Options. The Airport Peace Officer Retired Member shall select the percentage of continuance that the Retired Member desires to fund from the options provided by the Retirement System. These options shall be established by Board rule and shall provide a reasonable range of choices, subject to any limitations imposed by federal law. If no continuance is payable based on the provisions of Subdivision (2), then the amount paid by the Airport Peace Officer Retired Member as a reduction in their monthly retirement benefit shall be refunded as provided therein.

(7) Right to Review, Modify and Terminate the Program. The City’s right to review the program, as provided below, may not be exercised more often than every five (5) years.

To initiate a review, the City Administrative Officer (CAO) shall request the Retirement System to provide data relevant to the program’s costs. If the CAO so requests after reviewing the data provided, an actuarial report shall be obtained. As part of this review, the City Council shall have the authority, by ordinance, to enact modifications to the program necessary to maintain cost neutrality or to terminate the program if the program cannot be modified to maintain cost neutrality.

If the program is modified, the modifications shall not apply to Airport Peace Officer Retired Members who elected this benefit before the effective date of the modifications. If the program is terminated, the Retirement System shall continue to administer the program for all Airport Peace Officer Retired Members who elected benefits under the program prior to the termination date, but shall not allow Airport Peace Officer Retired Members to elect benefits under the program after the termination date.

(8) Board’s Authority to Adopt Rules and Administer the Program. The Board shall administer this program and adopt any necessary rules. This includes the authority to establish any mortality assumptions required for the administration of the program.

SECTION HISTORY

Added by Ord. No. 184,853, Eff. 4-6-17.

Amended by: First Para., Ord. No. 188,756, Eff. 11-16-25.

All benefits payable upon the death of a Public Safety Officer Member or Public Safety Officer Former Member, as defined in Section 4.1001(a), shall be determined by this Section 4.1010.2, and the provisions of Sections 4.1010, 4.1010.1, 4.1011, 4.1012(b) and (c), 4.1013, 4.1014 and 4.1015, shall not apply. All benefits payable upon the death of a Public Safety Officer Retired Member as defined in Section 4.1001(a), who at the time of death was receiving a disability retirement allowance pursuant to Section 4.1008.2, shall be determined by this Section 4.1010.2, and the provisions of Sections 4.1010, 4.1010.1, 4.1011, 4.1012(b) and (c), 4.1013, 4.1014 and 4.1015, shall not apply. Notwithstanding anything to the contrary, no survivor allowance shall be paid under this Section 4.1010.2 to the extent it exceeds any limitations imposed by the Internal Revenue Code. The Board shall have the authority to adopt rules to implement this limitation.

(a) Definitions. As used in this section, the following words and phrases shall have the meaning ascribed to them in this subsection:

Accumulated Contributions. The total of the amounts paid into the Retirement Fund by the Public Safety Officer Member and any interest credited to the Member’s account.

Assignment Pay. Assignment Pay means any additional gross monthly pay which, by reason of assignment to perform special duties or hazardous duties, in a higher class, position, grade, code or other title than the lowest thereof within the Public Safety Officer Member’s permanent rank, shall be provided by ordinance or Memorandum of Understanding.

Dependent Child. Dependent Child means a person who is a child of a deceased Public Safety Officer Member or Public Safety Officer Retired Member, who, while under the age of 21 years, had become disabled, either prior to or after the date of death of such Member, from earning a livelihood for any cause or reason whatsoever. Such person shall be a Dependent Child only until they shall cease to be disabled from earning a livelihood. Should disability cease before the age of 22 years, the limitations set forth in Subsection (g) of this section shall be applicable.

Dependent Parent. Dependent Parent means a person who is a parent of a deceased Public Safety Officer Member or Public Safety Officer Retired Member and to or for whom such deceased Member, during at least one (1) year immediately preceding their death, contributed one-half or more of such Dependent Parent’s necessary living expenses and who is unable to pay such expenses without the receipt of an allowance. Such person shall be a Dependent Parent only until they shall be able to pay their necessary living expenses.

Eligible Surviving Domestic Partner. Eligible Surviving Domestic Partner means a person whose Declaration of Domestic Partnership with the Public Safety Officer Member was on file with the Board, as provided in Section 4.1009 of the Los Angeles Administrative Code, or whose domestic partnership with the Public Safety Officer Member was registered with the State of California, as authorized in Family Code Section 298.5, or who had established a legal union with the Public Safety Officer Member which was validly formed in another jurisdiction that is substantially equivalent to a domestic partnership, as provided in Family Code Section 299.2:

(1) for at least one (1) year prior to the date of the Public Safety Officer Member’s nonservice-connected death;

(2) on the date of the Public Safety Officer Member’s service-connected death;

(3) for at least one (1) year prior to the effective date of the Public Safety Officer Member’s retirement upon a nonservice- connected disability retirement;

(4) on the effective date of the Public Safety Officer Member’s service-connected disability retirement; or

(5) on the date of the Public Safety Officer Member’s nonservice-connected death while on military leave.

In addition, on the date of the Member’s death, this person must be the Domestic Partner of such Member.

Eligible Surviving Spouse. Eligible Surviving Spouse means a person who was married to the Public Safety Officer Member:

(1) for at least one (1) year prior to the date of their nonservice-connected death while a Public Safety Officer Member;

(2) on the date of the Public Safety Officer Member’s service-connected death;

(3) for at least one (1) year prior to the effective date of the Public Safety Officer Member’s retirement upon a nonservice- connected disability retirement;

(4) on the effective date of the Public Safety Officer Member’s service-connected disability retirement; or

(5) on the date of the Public Safety Officer Member’s nonservice-connected death while on military leave.

In addition, on the date of the Member’s death, the person must be the spouse of such Member.

Eligible Survivor. Eligible Survivor means a person who is either an Eligible Surviving Spouse or an Eligible Surviving Domestic Partner as defined in this subsection.

Final Compensation. Final Compensation means an amount equivalent to a monthly average of salary actually earned during any twelve (12) consecutive months of service as a Member of the Retirement System, as designated by the Member. In the absence of such designation, the last twelve (12) consecutive months preceding the date upon which retirement would become effective shall be used as the basis for the calculation of Final Compensation.

For the purposes of determining Final Compensation for periods during which the Member receives less than full salary on account of injury or illness, pursuant to any applicable ordinance of the City, the Final Compensation shall be based upon the salary, including, if applicable, any Length of Service Pay, Special Pay, Assignment Pay or Hazard Pay, the Member would have received but for the injury or illness.

Included in the calculation of Final Compensation shall be Length of Service Pay, Special Pay, Assignment Pay and Hazard Pay actually earned during the twelve (12) consecutive months used to determine Final Compensation.

For those Members who retire from the department wherein they were employed while holding a rank no higher than Lieutenant: If Hazard Pay was not earned during all or any part of the twelve (12) consecutive months used to determine Final Compensation, then an amount equivalent to 10% of the Hazard Pay earned at the time of the termination of the last assignment of hazardous duties for each year in the aggregate of the assignment to hazardous duties shall be added to the Final Compensation, not to exceed ten (10) years in the aggregate. The total amount of Hazard Pay included in Final Compensation may not exceed 100% of the amount the Member would have earned had they been entitled to Hazard Pay during the entire 12-month period utilized in the calculation of Final Compensation.

Overtime compensation or payments of money to the member not designated as salary by an ordinance or Memorandum of Understanding shall not be considered for purposes of calculating Final Compensation.

If a Member has not completed twelve (12) consecutive months of service, then and in that event only shall the Final Compensation be calculated as a monthly average of all consecutive calendar months completed, and, if the Member has completed less than one month of total service as a Member, the salary actually received shall be used to calculate its monthly equivalent.

Hazard Pay. Hazard Pay means any additional gross monthly pay which, by reason of assignment to perform helicopter duties, two-wheel motorcycle duties or any other hazardous duties, shall be provided by ordinance or Memorandum of Understanding.

Length of Service Pay. Length of Service Pay means any additional gross monthly pay which, by reason of length of service, shall be provided by ordinance or by Memorandum of Understanding.

Member. Member means Public Safety Officer Member, Public Safety Officer Retired Member, or Public Safety Officer Former Member, as appropriate.

Minor Child. Minor Child means a person who is a natural child or an adopted child of a deceased Public Safety Officer Member or Public Safety Officer Retired Member but such person shall be a Minor Child only until such person shall attain the age of 18 years or until they reach the age of 22 years if such person is enrolled in school on a full-time basis as determined by the Board. Entitlement to the benefits of a Minor Child shall terminate if such person marries prior to reaching the age limit(s) provided herein.

Special Pay. Special Pay means any additional gross monthly pay which, by reason of assignment to perform special duties other than hazardous duties, shall be provided by ordinance or Memorandum of Understanding.

Year. Year means a period of 12 months or, in aggregating partial years for purposes of determining Service, means 365 days.

(b) Benefits for Eligible Survivor.

(1) Member’s Service-Connected Death. The Eligible Survivor of a Public Safety Officer Member who shall die by reason of injuries received or sickness caused by the discharge of their duties while a Public Safety Officer Member, shall be paid for life a monthly allowance in an amount which shall be equal to 80% of the deceased Member’s Final Compensation.

For the purposes of the benefit provided in this Subsection (b)(1), a Public Safety Officer Member has died by reason of injuries received or sickness caused by the discharge of Public Safety Officer Member’s duties if there is clear and convincing evidence that the discharge of the Member’s duties was the predominant cause of their death.

(2) Member’s Nonservice-Connected Death. The Eligible Survivor of a Public Safety Officer Member who shall have five (5) or more years of Service and who shall die while a Public Safety Officer Member, by reason of injuries or sickness other than injuries received or sickness caused by the discharge of Public Safety Officer Member’s duties, shall be paid for life a monthly allowance in an amount which shall be equal to 50% of the deceased Member’s Final Compensation.

(3) Member’s Nonservice-Connected Death While on Military Leave. The Eligible Survivor of a Public Safety Officer Member who, while on military leave, is killed as a result of the discharge of the Public Safety Officer Member’s military duties, shall be paid for life, as a nonservice-connected survivor benefit, a monthly allowance in an amount which shall be equal to 50% of the deceased Member’s Final Compensation. This benefit shall be paid in lieu of any benefits that would otherwise be payable under Subsections (b)(2), (b)(4) or (b)(5) of this section.

(4) Nonservice-Connected Death of Member with Less than Five Years of Service. In the event a Member dies of nonservice-connected causes before having completed five years of Service, the Eligible Survivor of the deceased Public Safety Officer Member, or the Member’s Minor or Dependent Children if there is no Eligible Survivor, or the Member’s Dependent Parents if there is no Eligible Survivor and no Minor or Dependent Children, shall be entitled to the Basic Death Benefit described in Subsection (b)(5) below.

(5) Basic Death Benefit and Election. The Basic Death Benefit shall consist of: (1) the return of a deceased Member’s accumulated contributions to the Retirement System with accrued interest thereon, subject to the rights created by virtue of the Member’s designation of a beneficiary as otherwise provided in the Retirement System; and (2) if the deceased Member had at least one year of Service, the deceased Member’s Final Compensation multiplied by the number of completed years of Service, not to exceed six years, provided that said amount shall be paid in monthly installments of one-half of the deceased Member’s Final Compensation.

An Eligible Survivor, or a guardian acting on behalf of the Minor or Dependent Children of a deceased Public Safety Officer if there is no Eligible Survivor, or Dependent Parents if there is no Eligible Survivor and no Minor or Dependent Children entitled to an allowance pursuant to any of the provisions of this section, where benefits are based upon the Member’s death in active service, may elect to receive the Basic Death Benefit in lieu of the allowance provided and before the first payment of such allowance.

(6) Retired Member’s Death While on a Service-Connected Disability Retirement. In the event a Public Safety Officer Retired Member dies while they are receiving a service-connected disability allowance pursuant to Section 4.1008.2, the Eligible Survivor shall be paid for life a monthly allowance in an amount which shall be equal to 80% of the allowance received by the deceased Public Safety Officer Retired Member immediately preceding the date of the Public Safety Officer Retired Member’s death, unless the death of the Retired Member occurs within three (3) years after the effective date of their allowance and is due to service-connected causes, in which case, the Eligible Survivor shall receive, or in a case where an option has been elected pursuant to Subsection (c) of this section, may elect to receive, 80% of the Retired Member’s Final Compensation, as modified by the cost of living adjustments made pursuant to Section 4.1022. The benefit described in this Subsection (b)(6) may be modified as provided in Subsection (c) of this section.

(7) Retired Member’s Death While on a Nonservice-Connected Disability Retirement. In the event a Public Safety Officer Retired Member dies while they are receiving a nonservice-connected disability allowance pursuant to Section 4.1008.2, the Eligible Survivor shall be paid for life a monthly allowance in an amount which shall be equal to 70% of the allowance received by the deceased Retired Member immediately preceding the date of the Public Safety Officer Retired Member’s death. The benefit described in this Subsection (b)(7) may be modified as provided in Subsection (c) of this section.

(c) Optional Allowances for Eligible Survivor. At any time before the first payment of a service retirement allowance, a service-connected disability allowance or a nonservice-connected disability allowance, the Member may elect to receive, in lieu of their allowance as provided in Section 4.1007 (Service) or Section 4.1008.2 (Disability), the actuarial equivalent at that time of such allowance and of the allowance for the Eligible Survivor, as provided in Subsection (b) of this section, by electing an optional allowance payable throughout the balance of their life, with the proviso that upon their death such optional allowance shall be continued to the Member’s Eligible Survivor in the proportional amount designated by the Member at the time of election of the option provided by this section.

The amount of such optional allowance shall be so calculated that the liability of LACERS at the date of retirement under the optional allowance shall be equal to the liability of LACERS at the same date under the allowance awarded in accordance with the provisions of Section 4.1007 (Service) or Section 4.1008.2 (Disability) and of the survivorship allowance provided by Subsection (b) of this section. For the purpose of this section, the liability of LACERS is defined as the present value, in accordance with tables adopted by the Board, of the allowances or optional allowances calculated by approved actuarial methods, and recommended by the Retirement System’s actuary. In determining the actuarial equivalent of the allowance for an Eligible Survivor as provided pursuant to Subsection (b)(6) of this section, the equivalent of a survivorship allowance of 80% of the Retired Member’s allowance shall be used in all cases.

The optional amounts, calculated in accordance with the foregoing subsection, shall provide a range of optional values such that the amount to be paid to the Eligible Survivor shall range from 75% to 100% of the allowance payable to the Member.

If a Public Safety Officer Retired Member, previously retired pursuant to the provisions of Section 4.1008.2, is reinstated to active duty upon termination of Public Safety Officer Retired Member’s disability, the election to receive the optional allowance as herein provided shall be deemed cancelled as of the effective date of such reinstatement.

A Public Safety Officer Retired Member, previously retired on a disability allowance pursuant to the provisions of Section 4.1008.2, shall have the right to cancel any option previously elected by them pursuant to the provisions of this subsection in the event their allowance is subsequently adjusted as provided for in Section 4.1008.2.

(d) Additional Allowance Amounts for Additional Beneficiaries. Whenever any Public Safety Officer Member or Public Safety Officer Retired Member shall die and leave surviving them, in addition to an Eligible Survivor, a Minor Child or Children or a Dependent Child or Children of the deceased Member and the Eligible Survivor, then such Eligible Survivor shall be paid an additional monthly allowance in an amount which shall be equal to 25% of the allowance they as an Eligible Survivor would be entitled to receive pursuant to the provisions of Subsection (b) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination, and such additional monthly allowance shall be the exclusive property of such Eligible Survivor and not the property of any such Minor Child or Dependent Child.

Whenever any Public Safety Officer Member or Public Safety Officer Retired Member dies and leaves surviving them in addition to an Eligible Survivor, a Minor Child or Children or a Dependent Child or Children who are not the child or children of the Eligible Survivor, then the guardian(s) or conservator(s), as appropriate, of the estate(s) of any such Minor Child or Children or Dependent Child or Children shall be paid a monthly allowance in an amount which shall be equal to 25% of the allowance the Eligible Survivor would be entitled to pursuant to the provisions of Subsection (b) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination.

Whenever any Public Safety Officer Member or Public Safety Officer Retired Member dies and leaves surviving them, in addition to an Eligible Survivor, a Minor Child or Children or a Dependent Child or Children of the deceased Member and the Eligible Survivor and a Minor Child or Children or a Dependent Child or Children not the child or children of the Eligible Survivor, then a monthly allowance shall be paid in an amount which shall be equal to 25% of the allowance the Eligible Surviving Spouse would be entitled to pursuant to the provisions of Subsection (b) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination. The amount of such monthly allowance shall be divided by the number of Minor Children or Dependent Children and shall be adjusted accordingly whenever any Minor or Dependent Child ceases to be such. The Eligible Survivor shall be paid the portion of such monthly allowance which shall be applicable to the number of Public Safety Officer Member’s or Public Safety Officer Retired Member’s Minor Children or Dependent Children and the same shall be their exclusive property. The guardian(s) or conservator(s), as appropriate, of the estate(s) of the Minor Children or Dependent Children who are not those of the Eligible Survivor shall be paid the portion of such monthly allowance which shall be applicable to such Minor Children or Dependent Children and the same shall be the exclusive property of such children.

If a Minor Child or Dependent Child is an adult who is capable of managing their financial affairs, the Board is not required to pay the guardian or conservator of the Minor Child or Dependent Child any benefits provided in this subsection, which are not the property of the Eligible Survivor but are the property of the Minor Child or Dependent Child. Dependent Child benefits payable under this subsection shall be paid pursuant to the provisions of Charter Section 1238, if applicable.

The additional allowance amounts provided in this subsection for persons other than an Eligible Survivor are to be calculated on the basis of the applicable Eligible Survivor allowance provided pursuant to Subsection (b) of this section, unmodified by any election that may have been made previously pursuant to the provisions of Subsection (c) of this section.

Additional allowance amounts are also subject to the limitation that the amount of any survivorship allowance provided in this section, after the additional payments provided in this subsection are added thereto, may not exceed 100% of the Final Compensation of the deceased Public Safety Officer Member or 100% of the Final Compensation of the deceased Retired Public Safety Officer Member, as modified by the cost of living adjustments made pursuant to Section 4.1022 since the date of retirement of the Public Safety Officer Retired Member. In case of excess, any additional allowance amounts shall be reduced to a level where the total amount of allowance is equal to such maximum.

(e) Allowance for Minor or Dependent Children Where Member Had No Eligible Survivor. Whenever any Public Safety Officer Member or Public Safety Officer Retired Member dies without leaving a Eligible Survivor, the guardian or conservator, as applicable, of the estate(s) of their Minor or Dependent Children shall be paid, until each such child shall cease to be a Minor or Dependent Child, a monthly allowance equal to the allowance an Eligible Survivor would have been eligible to receive pursuant to Subsection (b) of this section had an Eligible Survivor survived such Member. Whenever any Public Safety Officer Member or Retired Public Safety Officer Member shall die leaving an Eligible Survivor who thereafter shall die, the guardian or conservator, as applicable, of the estate(s) of their Minor or Dependent Children shall be paid, until each such child shall cease to be a Minor or Dependent Child, a monthly allowance equal to the allowance an Eligible Survivor would have been eligible to receive pursuant to Subsection (b) of this section. In any of the foregoing events and if there were to be more than one Minor or Dependent Child, an equal share of such monthly allowance shall be paid for and on behalf of each such child to the guardian or conservator, as applicable, of the Public Safety Officer Member’s or Public Safety Officer Retired Member’s estate and shall be adjusted as each of them shall cease to be a Minor or Dependent Child in the manner set forth in Subsection (d) of this section. If payments are made pursuant to this Subsection (e), no additional allowance amounts shall be paid pursuant to Subsection (d) of this section. With regard to benefits payable to a Minor Child or Dependent Child who is an adult and capable of managing their financial affairs, the foregoing provisions requiring payment to a guardian or conservator of such child shall be disregarded and payment may be made directly to such adult child.

Dependent Child benefits payable under this subsection shall be paid pursuant to the provisions of Charter Section 1238, if applicable.

(f) Allowance for Dependent Parents Where Member Had No Eligible Survivor. Whenever any Public Safety Officer Member or Public Safety Officer Retired Member shall die without leaving an Eligible Survivor or a Minor or Dependent Child, a monthly allowance shall be paid to such Dependent Parents or to the survivor of them until each such Dependent Parent shall cease to be such. Any Dependent Parent who ceases to be such, but who thereafter again shall become unable to pay their necessary living expenses without an allowance, shall be entitled to have their allowance reinstated.

The total amount of an allowance payable to the Dependent Parents shall be the same as that to which an Eligible Survivor would have been entitled pursuant to Subsection (b) of this section.

(g) Determinations With Respect to Cause of Death and Dependency. The Board shall have the same power as that which has been given to it by Section 4.1008.2(d) and (f) in order to determine:

(1) whether a Public Safety Officer Member’s death was service-connected or nonservice-connected for the purposes of Section 4.1010.2(b)(1) and (2);

(2) whether or not a child of a deceased Public Safety Officer Member or Public Safety Officer Retired Member is a Dependent Child; and

(3) whether or not any parent of a deceased Public Safety Officer Member or Public Safety Officer Retired Member is a Dependent Parent.

The Board also shall have the power to determine, from time to time, whether or not a child continues to be a Dependent Child, whether or not a parent continues to be a Dependent Parent and whether or not a Dependent Parent who had ceased to be such thereafter shall have become entitled to have their allowance reinstated. The Board also shall have the power to determine whether a Minor Child or Dependent Child is an adult and capable of managing their financial affairs.

(h) Medical Reports and Hearings. The power of the Board to determine whether a Public Safety Officer Member’s death was service-connected or nonservice- connected, as provided in Subsection (g) of this section, hereafter may be exercised by it upon the basis of a written report from one regularly licensed and practicing physician selected by it, but the Board, in its discretion, may obtain such a report from more than one such physician. This determination may, at the option of the Board, be made without a hearing being held pursuant to the provisions of Subsection (g) of this section, provided that, should any decision made without a hearing being held adversely affect any person, such person may request and, upon such request, shall be granted a hearing before the Board at which such decision shall be reconsidered.

(i) Distribution of Contributions. Whenever a Public Safety Officer Member or Public Safety Officer Former Member dies prior to retirement without leaving a person or persons entitled to receive an allowance pursuant to Subsections (b), (c), (d), (e), or (f) of this section, then, and in that event, the Member’s Accumulated Contributions shall be paid to such person or legal entity as the Member shall have nominated by written designation duly executed and filed with the Board; or, if there is no such designation, then to the Public Safety Officer Member’s or Public Safety Officer Retired Member’s surviving spouse or surviving Domestic Partner; or, if none, then to the Public Safety Officer Member’s or Public Safety Officer Retired Member’s children; or, if no children, then to the Public Safety Officer Member’s or Public Safety Officer Retired Member’s parents. In the event there is no written designation of beneficiary, surviving spouse or surviving Domestic Partner, children or parents, then the contributions shall be paid to the executor or administrator of the estate of such deceased Public Safety Officer Member or Public Safety Officer Former Member or to any other person or legal entity legally authorized to collect money due the decedent.

(j) Burial Allowance. Upon the death of every Public Safety Officer Retired Member, the sum of $2,500.00 shall be paid to such person or legal entity as the Public Safety Officer Retired Member shall have nominated by written designation, duly executed and filed with the Board of Administration; or to the Eligible Survivor of such deceased Public Safety Officer Retired Member, in the event there be no designated beneficiary; or to Public Safety Officer Retired Member’s child or children, in the event there be no designated beneficiary or Eligible Survivor, provided that such payment shall be made only after satisfactory evidence has been presented to the Board showing that the expense of burial of the decedent has been paid or that the obligation to pay therefor has been assumed by a person or persons or an organization legally capable of contracting such obligation. The fact of burial, as evidenced by a certified copy of the death certificate, shall be sufficient evidence of compliance with the requirements stated in the foregoing sentence. While the purpose of this benefit is to provide a funeral allowance for the deceased retiree, the Retirement System shall have no responsibility to assure that this payment is used for that purpose.

In the event there be no designated beneficiary, Eligible Survivor, or child or children, or in the event the requirements herein stated with respect to the expense of burial of such Public Safety Officer Retired Member have not been complied with within such time as the Board, in its discretion, may determine, then the payment of the amount specified in this subsection shall be paid to the executor or administrator of the estate of such decedent, or to any other person or legal entity legally authorized to receive money due said decedent.

(k) Reversion of Unclaimed Contributions to the Retirement Fund. The right to the payments set forth in this section is a vested property right of the person(s) entitled to such payment; provided, however, that should the person(s) entitled thereto fail to claim this benefit within ten (10) years from the date of such death, the funds shall revert to the Retirement Fund, unless and until, the Board of Administration receives a valid belated claim for payment, determined at the sole discretion of the Board of Administration. Any death benefit payable shall be subject to mandatory minimum distribution as required by the Internal Revenue Code, provided that the funds that are required to be distributed shall revert to the Retirement Fund if the person(s) entitled to the funds refuses to cooperate in electing to be paid such funds or cannot be located and the Retirement System has followed Internal Revenue Service procedures to locate such person(s).

(l) Survivor Benefit Purchase Program for Public Safety Officer Retired Members. A Public Safety Officer Retired Member may elect, after retirement, to provide a survivor benefit to a spouse or Domestic Partner subject to the following:

(1) Member to Pay Full Cost. The Public Safety Officer Retired Member shall pay the full actuarially determined cost of the survivor benefit through an actuarial reduction in their monthly retirement benefit.

(2) Vesting Requirement. The right to benefits under this program shall not vest until the Public Safety Retired Member survives at least one (1) year from the date the Public Safety Officer Retired Member makes an election to provide this benefit, unless the Board shall determine by a preponderance of the evidence that the Public Safety Officer Retired Member’s death was accidental.

If the right to benefits has not vested before the date of the Public Safety Officer Retired Member’s death and the accidental death exception does not apply, then no survivor benefit shall be provided by the Retirement System and the amount by which the Public Safety Officer Retired Member’s monthly retirement benefits were reduced after making this election shall be paid as a lump sum to the spouse or Domestic Partner, provided that if the spouse or Domestic Partner has predeceased the Member, the lump sum shall be paid to the Member’s estate.

(3) Only One Election Allowed. In order to minimize administrative costs to the Retirement System, a Public Safety Officer Retired Member may exercise this election only once. The Public Safety Officer Retired Member’s election shall not apply to any interest in their pension benefit awarded by the court to another person, but only to the interest retained by the Public Safety Officer Retired Member. The election may be made only to provide a benefit for a spouse or Domestic Partner who is not already qualified to receive a benefit from the Retirement System upon the Public Safety Officer Retired Member’s death. For purposes of this section, a domestic partnership must either be filed with the Retirement System or the California Secretary of State or be recognized as a valid domestic partnership in this state based upon the provisions of Section 299.2 of the Family Code or any successor provisions.

(4) Irrevocable Election. Once an election is made, it is irrevocable. The Public Safety Officer Retired Member’s monthly retirement benefits will be permanently reduced and will not increase if the spouse or Domestic Partner predeceases the Public Safety Officer Retired Member or if their marriage or domestic partnership is otherwise terminated.

(5) Survivor Benefit. The benefit authorized by this Section consists of a percentage continuation of the Public Safety Officer Retired Member’s monthly retirement benefit payable to the surviving spouse or Domestic Partner of the Member for the survivor’s lifetime. In order to be eligible to receive the survivor benefit provided by this Section, the survivor must be either the spouse or Domestic Partner of the Member at the time the Member elected to provide this benefit and at the time of the Member’s death. A survivor receiving a benefit under this section shall not be eligible for a health subsidy from the Retirement System. The payment of a survivor benefit provided by this section does not impact the payment of other survivor benefits from the Retirement System.

(6) Payment Options. The Public Safety Officer Retired Member shall select the percentage of continuance that they desire to fund from the options provided by the Retirement System. These options shall be established by Board rule and shall provide a reasonable range of choices, subject to any limitations imposed by federal law. If no continuance is payable based on the provisions of Subdivision (2), then the amount paid by the Public Safety Officer Retired Member as a reduction in their monthly retirement benefit shall be refunded as provided therein.

(7) Right to Review, Modify and Terminate the Program. The City’s right to review the program, as provided below, may not be exercised more often than every five (5) years.

To initiate a review, the City Administrative Officer (CAO) shall request the Retirement System to provide data relevant to the program’s costs. If the CAO so requests after reviewing the data provided, an actuarial report shall be obtained. As part of this review, the City Council shall have the authority, by ordinance, to enact modifications to the program necessary to maintain cost neutrality or to terminate the program if the program cannot be modified to maintain cost neutrality.

If the program is modified, the modifications shall not apply to Public Safety Officer Retired Members who elected this benefit before the effective date of the modifications. If the program is terminated, the Retirement System shall continue to administer the program for all Public Safety Officer Retired Members who elected benefits under the program prior to the termination date, but shall not allow Public Safety Officer Retired Members to elect benefits under the program after the termination date.

(8) Board’s Authority to Adopt Rules and Administer the Program. The Board shall administer this program and adopt any necessary rules, including the authority to establish any mortality assumptions required for the administration of the program.

SECTION HISTORY

Added by Ord. No. 187,923, Eff. 7-9-23.

Amended by: First Para., Ord. No. 188,756, Eff. 11-16-25.

(a) Definitions. As used in this section, the following words and phrases shall have the meaning ascribed to them in this paragraph:

Duty Related Death shall mean the death of a member caused by illness or injury, either of which arose out of the performance of the member’s duties as an employee of the City of Los Angeles.

Non-Duty Related Death shall mean a member’s death which occurred due to illness or injury not arising out of the member’s performance of the member’s duties as an employee of the City of Los Angeles.

Eligible Surviving Spouse shall mean the person who was married to the member at the time of the member’s death and who is entitled to be paid, against the claims or demands of any and all other persons thereto, the full amount of such member’s accumulated contributions.

Eligible Surviving Domestic Partner shall mean the person who was the domestic partner of the member at the time of the member’s death and who is entitled to be paid, against the claims or demands of any and all other persons thereto, the full amount of such member’s accumulated contributions.

Eligible Survivor shall refer to a person who is either an Eligible Surviving Spouse or Eligible Surviving Domestic Partner, as defined in this subsection.

(b) Duty Related Death of a Member Who Does Not Have Five (5) Years of Continuous Service. If a member, who at the time of a Duty Related Death was not eligible for a disability retirement allowance pursuant to the provisions of Section 4.1008, leaves an eligible survivor, the latter may elect to receive a monthly allowance equal to the disability retirement allowance benefit the member would have received, as provided in Section 4.1008, had the member completed five (5) years of continuous service and had the member been eligible for a disability retirement and had retired under a disability retirement on the day preceding the date of death and elected to receive the benefit as computed under the provisions of Section 4.1015(a)(1). In the event the member had completed less than twelve (12) months of service, the salary for the missing months shall be at the rate for the first month of service to arrive at the compensation earnable.

(c) Death of a Member Who Has Five (5) or More Years of Continuous Service. If, at the time of a Duty Related Death or Non-Duty Related Death, a member would have been eligible to receive a disability retirement allowance pursuant to Section 4.1008 and leaves an eligible survivor, the latter may elect to receive a monthly allowance equal to the amount the deceased member would have been entitled to if the member had been so retired on the day preceding the member’s death and elected to provide a continuing benefit under the provisions of Section 4.1015(a)(1).

(d) Calculation of Disability Survivorship Allowance. The one hundred percent (100%) disability survivorship allowance provided in Subsections (b) and (c) herein shall consist of an annuity based upon the eligible survivor’s age and the member’s total accumulated contributions, calculated in accordance with approved actuarial methods, supplemented by a pension to equal the remainder of the allowance so computed.

(e) Consequences of Election to Receive a Disability Survivorship Allowance. An eligible survivor who elects to receive the one hundred percent (100%) disability survivorship allowance hereinabove provided in Subsections (b) and (c), by making this election shall waive their rights under Section 4.1010 to payment of a limited pension and to payment of all the member’s accumulated contributions and shall receive the benefits provided in this section in lieu thereof. Said eligible survivor shall also receive the benefits provided under the Family Death Benefit Plan, established in Section 4.1090, if said eligible survivor would otherwise have been entitled thereto.

(f) Election to Wait and Receive a Continuance of the Member’s Service Retirement Allowance (Member Not Eligible for Retirement). If a member had completed five (5) or more years of continuous service with the City, but was not eligible to retire on a service retirement allowance on the date of the member’s death, the eligible survivor shall have the option of electing to wait until such time as the member would have been entitled to receive a service retirement allowance pursuant to the provisions of Section 4.1006, and shall then receive a retirement allowance equal to that which the member would have received had the member retired under the provisions of Section 4.1015(a)(1) on the day first eligible to receive such benefit. An eligible survivor who elects to wait and to receive the allowance provided herein shall have no rights under the provisions of Sections 4.1010(a); the benefits payable under this provision are provided in lieu of the payment of the member’s accumulated contributions and the limited pension provided in Section 4.1010(a). However, if an eligible survivor would otherwise have been entitled to the benefits provided under the Family Death Benefit Plan, an eligible survivor who exercises the option provided in this subsection shall receive the benefits provided in Section 4.1090, but only until such time as the optional benefit provided in this subsection shall become payable, at which time the eligible survivor’s entitlement to benefits under Section 4.1090 shall cease.

(g) Election to Receive a Continuance of the Member’s Service Retirement Allowance (Member Eligible for Retirement). If a member was eligible to retire on a service retirement allowance on the date of the member’s death, Section 4.1010(a)(3) provides an optional retirement benefit for persons who otherwise qualify for said benefit.

(h) Election Under This Section Waives All Rights to Benefits Provided in Section 4.1010. The election by an eligible survivor to receive an allowance under the provisions of this section constitutes and includes a complete waiver of all rights the eligible survivor may have under Section 4.1010, including the right to payment of all the member’s accumulated contributions, both regular contributions and survivor contributions, as well as a waiver of the payment of the limited pension.

(i) Board Authority. The Board of Administration, with respect to the determination of whether death of a member was attributable to Duty Related causes or Non-Duty Related causes, shall have the power to make such determination based upon such evidence as may be presented to it.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

All current and former members of the Retirement System who are not entitled to credit for service rendered prior to July 1, 1965, 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. Should any current, former or retired members be entitled to credit for service rendered prior to July 1, 1965, the rights of their survivors shall not be governed by this section, except as otherwise provided in Section 4.1013.

(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 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 member’s death.

Member shall only include a member who is not entitled to credit for service rendered prior to July 1, 1965, unless a member with pre-July 1, 1965 service, or such member’s eligible survivor, shall exercise the election provided in Sec. 4.1013(b) and pay the required survivor contributions.

Unmodified Allowance shall mean the total monthly retirement allowance payable to the member as of the date of retirement, calculated in accordance with the provisions of sections 4.1007, in the case of service retirement, and 4.1008, in the case of disability retirement.

Joint and Survivor Cash Refund Annuity shall mean 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 4.1010(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 elsewhere in this Article 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 4.1015, 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 a larger annuity benefit.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Members Who Retired or Terminated Membership Prior to July 1, 1965.

(1) Member Retired Prior to July 1, 1965. A member who retired prior to July 1, 1965, pursuant to the provisions of former Charter Sections 508 or 510, and who has a spouse to whom the member was married for at least one (1) year at the time of retirement (an eligible survivor for purposes of this subsection), may elect in writing to provide for a continuance of the member’s retirement allowance to said eligible survivor, which election shall be filed with the Board of Administration. In the event a retired member who is eligible to make the election herein provided should die prior to having made such election, the member’s eligible survivor shall have the right to so elect in the member’s stead and shall thereafter receive the continuance to survivor benefit as hereinafter provided.

Upon the death of a retired member who elected to provide for a continuance to the member’s eligible survivor, as provided in the preceding paragraph, there shall be continued to such survivor, provided the survivor is the deceased retiree’s surviving spouse or domestic partner, an allowance which shall consist of:

(i) An annuity equal to the amount of the annuity which was payable to the retired member during the member’s lifetime by virtue of the member’s normal contributions; and

(ii) A pension amount payable during the lifetime of such survivor which shall be the difference between one-half (1/2) of the member’s base amount excluding from said base amount any portion payable by virtue of additional contributions paid towards a larger annuity, and the amount of said annuity.

(iii) A cost of living equal to one-half (1/2) the cost of living amount payable to the deceased member at the time of the member’s death, after excluding therefrom any portion of said cost of living amount payable by virtue of additional contributions paid towards a larger annuity. All adjustments to the cost of living amount pursuant to this provision shall be subject to future adjustments as provided in Section 4.1022.

(2) Former Member Who Terminated Prior to July 1, 1965. Any former member who terminated prior to July 1, 1965, and who elected the benefit of a “vested right” pension but has not made application for such pension, may make the election described above in Subsection(a)(1) at the time such former member files their application for service retirement if the member has either a spouse to whom the member has been married for at least one (1) year prior to the date of the member’s retirement or a domestic partner in a partnership that has been established for at least one (1) year prior to the date of the member’s retirement (an eligible survivor for purposes of this subsection). Upon the death of such retired member who elected to provide for a continuance to the member’s eligible survivor as provided herein, there shall be continued to such survivor, provided the survivor is the deceased retiree’s surviving spouse or domestic partner, an allowance which shall be based upon the components set forth in Subsection(a)(1)(i), (ii) and (iii).

(3) Payment of Contributions upon Death. Upon the death of both the retired member and the retired member’s eligible survivor where an election has been made as provided in this Subsection (a), any unused contributions and accrued retirement allowance shall be paid as provided in Section 4.1010(c)(2).

(b) Members with Service Prior to July 1, 1965. Members shall not receive credit under the provisions of Section 4.1012 for service rendered prior to July 1, 1965, unless said member shall both:

(1) Elect, in writing, and file with the Board of Administration an application to participate in the continuance to survivor benefit established in Section 4.1012; and

(2) Pay survivor contributions in an amount equal to all the contributions which the member would have made had the member elected said benefit on July 1, 1965, 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. The mode of paying such back contributions in a lump sum or on an installment basis shall be as decided by the Board of Administration and set forth in their rules.

The surviving spouse or domestic partner of a deceased retired member is hereby given the right to make an election to participate in the continuance to survivor benefit provided in Section 4.1012 if such deceased retired member did not during the deceased retired member’s lifetime make the election to participate in said benefit; provided, however, that such survivor must qualify as an eligible survivor as said term is defined in Section 4.1012.

The eligible survivor’s election shall be in writing on such forms as the Board may prescribe, and must be accompanied by the amount of survivor contributions which the deceased retired member would have contributed by salary deduction during the entire period of membership in the Retirement System during or for which the deceased retired member would have been eligible to participate in the benefit provided in Section 4.1012.

The benefit herein provided shall entitle a survivor eligible to make an election to receive an allowance calculated as of the time immediately following the deceased retired member’s death, but such allowance shall become payable only as of the first day of the month following the exercise of the election and receipt by the Retirement System of the required survivor contributions. There is to be no retroactive entitlement to benefits under the provisions of this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

A member or former member who does not have an eligible survivor, as defined in Section 4.1012, 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.

The beneficiary’s continuance shall be subject to all cost-of-living and discretionary increases.

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. 182,629, Eff. 7-25-13.

(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 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) Lesser 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 retiree’s surviving spouse or domestic partner; or (ii) the retiree’s minor children, in the event there be no surviving spouse; or (iii) the retiree’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 Sections 4.1007 or 4.1008, including in each case the liability for continuance to an eligible survivor provided in Section 4.1012, if applicable. Any retiree selecting one of the options available under this section who has an eligible survivor as defined in Section 4.1012 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 4.1010(c)(2).

(c) Options for Members Who Retired Prior to July 1, 1965, with an Optional Allowance. Any retired member of the Retirement System who retired prior to July 1, 1965, and who selected one of the optional retirement allowances authorized in the predecessor to this section, upon written application filed with the Board of Administrators shall be entitled to receive the allowance the member would have been eligible to receive under the then applicable service retirement or disability retirement provisions had the member not elected an optional retirement allowance at that time. Any adjustment made pursuant to this provision shall be effected by modifying the pension portion of the allowance. For benefits that are increased, the ratio between the base amount and the cost of living amount shall be maintained by increasing the cost of living proportionately. All adjustment to the cost of living amount made pursuant to this section shall be subject to future adjustments as provided in Section 4.1022.

Any retired member making application as provided in this subsection who has an eligible survivor as defined in Section 4.1012 shall be deemed thereby to have exercised the election provided in Section 4.1013(a)(1).

Any surviving spouse receiving a continuance of a retired member’s allowance based upon the member having made an election as provided in the predecessor to this section, which election was made when the member was not eligible to participate in the continuance to eligible survivor benefit currently provided in Section 4.1012, may elect to receive in lieu of such allowance the continuance to eligible survivor benefits provided by Section 4.1013(a)(1).

Any election or written application made pursuant to this subsection shall be irrevocable and not subject to the provisions of waiver of benefits as provided in Section 4.1024.

(d) 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. 182,629, Eff. 7-25-13.

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 4.1015(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. 182,629, Eff. 7-25-13.

(a) Back Contributions for Past Periods of City Service. Every member who was a City employee during any period or periods in which the member was regularly employed, on a full-time basis or on a part-time basis but was not a member, and thus not contributing to the Retirement Fund, shall have the option to designate all or any portion of such employment for which the member may receive retirement credit, provided, however, that the member is not receiving and is not entitled to receive for that period of City employment any benefit from any other pension or retirement system, including, but not limited to, the Fire and Police Pension Plan, the Water and Power Employees’ Retirement Plan, the Limited Term Retirement Plan, the Pension Savings Plan for Part-time, Seasonal and Temporary Employees, and any union plan. Such option shall be exercised in writing, filed with the Board of Administration, designating the period of City employment for which the member desires to receive retirement credit, and must be accompanied by a single payment of back contributions or by an agreement to pay such back contributions in installments.

The back contributions to be paid shall be in an amount equal to all of the contributions which the member would have made to the Fund had the member been a member during such period, together with all regular interest which, had the member so made the same, would have been credited thereon prior to the date of such payment; provided, however, that in the case of such installment payment thereof, the same shall be made pursuant to the rules which shall be adopted by the Board of Administration establishing minimum amounts to be paid and the period of time within which they must be paid and, furthermore, providing the rate of interest which shall be paid upon the unpaid balance of the same. 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 retirement credit, counter-calendarwise, for the same portion of such designated period as the amount made up by the member is of such full amount, and provided further that, should the member cease to be a member by reason the member’s death, retirement credit shall be allowed for the whole period designated by the member if the member’s surviving spouse or domestic partner exercises the option which, under such circumstances, hereby is given to such survivor to make a single payment equal to the then present value of all of the unpaid installments in such manner as may be determined by the Board. The written option hereinabove referred to shall be filed with the Board of Administration.

For purposes of determining whether a member is not receiving and is not entitled to receive for a prior period of City employment any benefit from a non-City pension or retirement system, such as a union plan, the Board shall adopt rules regarding the proof that a member must provide to establish a right to make back contributions for such prior period of City employment, since, for a non-City system, such information is not directly available to the Retirement System.

(b) Back Contributions for Periods of Participation in the Pension Saving Plan. Notwithstanding the provisions of Subsection (a), a member may receive retirement credit for any period or periods in which the member was a participant in the Pension Savings Plan for Part-time, Seasonal and Temporary Employees provided for in Chapter 16 of Division 4 of this Code. Such option shall be exercised in writing, filed with and subject to rules promulgated by the Board of Administration as provided for in Subsection (a) above. The amount of back contributions to be paid shall be the total of the following:

(1) An amount equal to all of the contributions which the member would have made to the Fund had the member been a member during such period, together with all regular interest which would have been credited thereon by the Board of Administration prior to the date of such payment; and

(2) The full amount of all contributions made to the Pension Savings Plan by the City on behalf of the member during such period or periods, plus all interest credited to those contributions by the Pension Savings Plan.

(c) Back Contributions for Periods of Participation in the Limited Term Retirement Plan. Notwithstanding the provisions of Subsection (a) herein and Section 4.1850(g) of Chapter 18.5 of Division 4 of this Code, every person who is a member may receive service credit for any period or periods in which the person was a participant in the Limited Term Retirement Plan provided for in Chapter 18.5 of Division 4 of this Code by making back contributions, which shall be paid in one of the following manners:

(1) All of the participant’s interest in the participant’s individual account with the Limited Term Retirement Plan, based upon contributions made both by the participant and by the City, and any gains or losses thereon, shall be transferred from the Limited Term Retirement Fund to the LACERS Retirement Fund for credit to the member’s LACERS account and, upon receipt, shall constitute full payment for the buy back; or

(2) Where the member’s entire account balance in the member’s former individual account with the Limited Term Retirement Plan, based upon contributions made both by the participant and by the City, and any gains or losses thereon, is directly rolled over from the Limited Term Retirement Plan to another eligible retirement plan prior to January 1, 2003, provided these funds have been segregated and not co-mingled with any other funds, the trustee-to-trustee transfer of the total balance from that eligible retirement plan to the LACERS Retirement Fund for credit to the member’s LACERS account shall constitute full payment for the buy back; or

(3) In all other cases in which the member’s Limited Term Retirement Plan account balance has been distributed, the amount of back contributions to be paid shall be in the amount of the entire lump sum distribution, whether received by the member or by any other person, together with all regular interest which would have been credited thereon by the Board of Administration subsequent to the date the lump sum was distributed had the member been a member during that period.

This option shall be exercised in writing, filed with and subject to rules to be promulgated by the Board of Administration. The service credit purchased pursuant to this subsection shall count as continuous service credit for all LACERS benefits, the same as if the person had been a member during the entire period of time for which service credit is given.

(d) Back Contributions for Periods when Member Received Workers’ Compensation Benefits. The Board of Administration shall, by rule, provide for the making up of contributions that a member failed to make for any period during which the member received Workers’ Compensation benefits (Div. IV, Labor Code) for temporary disability on account of any injury or illness arising out of and in the course of the member’s employment with the City, together with an amount equal to the regular interest that would have been credited had the member made the 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 4.1008(j)(4).

(f) Limitations on Back Contributions Imposed by Federal Law. Notwithstanding the provisions of Subsection (a), (b) and (c) herein, a member shall not be allowed to make back contributions to purchase retirement credit under this section if the period of time being purchased constitutes “unqualified service” which the member is prohibited from purchasing under federal law. The Board shall adopt such rules as are necessary to comply with federal law and may authorize payment methods that comport with federal requirements.

(g) Effect of Transfer to Fire and Police Pension Plan. For any Member who has entered into an agreement to provide back contributions and elects to transfer membership to the Fire and Police Pension Plan pursuant to Section 4.2216, LACERS shall transfer all service credit and associated contributions that have been purchased, subject to the terms and conditions of the LACERS Peace Officer Transfer Program and the terms and conditions provided in this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (g) added, Ord. No. 188,756, Eff. 11-16-25.

Any former member who received a refund of that former member’s contributions upon separating from the service of the City shall, upon again becoming a member, have the option to re-deposit 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 re-deposited 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 re-deposits such contributions either by a single lump sum payment or executes an agreement to pay such re-deposit 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 re-deposit as hereinabove provided shall be allowed retirement credit for the period of service for which the re-deposit is made; provided however, that the member is not receiving and is not entitled to receive retirement 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 re-deposit, credit shall be allowed counter-calendarwise from the same portion of such designated period as the amount made up by the member is of such full amount, and provided, further, that should the member cease to be a member by reason of their death, retirement credit shall be allowed for the whole period for which the re-deposit 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. 182,629, Eff. 7-25-13.

(a) Definitions. For the purpose of this section, the following words and phrases shall have the meaning ascribed to them in this subsection unless a different meaning is clearly indicated by the context:

Leave of Absence shall mean an approved uncompensated leave of absence from City Service, excluding any period of absence due to disciplinary suspension.

Buy Back shall mean purchase by a member of retirement credit for periods of eligible leaves of absence from City Service.

(b) Eligibility. Every person who is a member on the effective date of this section or who shall become a member subsequent thereto shall be eligible to buy back credit for periods of uncompensated leave of absence from City Service.

(c) Application of Buy Back Credit. A member electing to buy back periods of leave of absence from City Service may apply buy back credit to increase service retirement benefit credit. Buy back credit shall not be used to meet minimum qualification for service retirement, disability retirement or vested retirement or to qualify for the Family Death Benefit Plan, or to qualify for or increase health and dental insurance premium subsidies.

(d) Effect of Benefit Increases. If retirement benefits should be increased by City Council action pursuant to Section 1168 of the City Charter, such increased benefits shall be applicable to service credits purchased pursuant to this section.

(e) Minimum Periods of Purchase. A member electing to buy back credit for periods of uncompensated leave of absence shall file with the Board of Administration a written application identifying the time periods for which credit is to be purchased. A member may buy back credit for one or more periods of uncompensated leave, except, however, a minimum of six (6) months of leave in the aggregate shall be purchased. Total buy back credit purchased shall not exceed the member’s actual City Service at the time the buy back is concluded.

(f) Agreement with the City Employees’ Retirement System - Buy Back Methods. A member electing to buy back credit described herein shall enter into a written agreement with the Retirement System. Such agreement shall provide that the member contribute an amount equal to the present value of the liability incurred by the System in crediting the service based upon actuarial assumptions in effect at the time the agreement is entered into or amended and the projected retirement date contained in the agreement. Such agreement shall identify the method of payment of the additional contributions required to fund the purchased credit, which may be a specific dollar payment or percent of salary obligation. If a member elects to make the required contribution by a specific dollar payment, the payment may be made in a lump sum or in biweekly installments through payroll deduction over a period not to exceed five (5) years. If the member elects to enter into a percent of salary obligation, the member shall agree to make the contributions as a percent of salary through payroll deduction over a period extending from the date of the agreement with the Retirement System to a projected retirement date included in the agreement.

(g) Termination or Completion of Agreement. A member who has entered into a buy back agreement shall complete all contributions prior to the effective date of retirement in order to receive agreed upon buy back credit. If all contributions have not been completed and the member elects to retire, the member may receive prorated buy back credit for that portion of the service which has been purchased by contributions already made and forfeit the remainder of credit covered by the agreement, or may make a lump sum payment sufficient to complete the total payment covered by the agreement. In the event the member elects to retire at a later date than the age specified in the agreement after completing all payments, no adjustments shall be made in the buy back credit or the cost of such credit. A member who elects to terminate an after-tax agreement prior to its completion or at the time of retirement shall forfeit buy back credit and may elect to receive a cash refund of the buy back contributions and interest payable upon the earlier of death, termination of employment or retirement.

(h) Member’s Death. In the event of the death of a member who has entered into a buy back agreement, the surviving eligible beneficiary of the member may elect a refund of the buy back contributions and interest thereon, or elect to apply the credit, or a portion thereof, to the calculation of the benefits for which the survivor qualifies without the addition of buy back service credit, or elect to complete the terms of the agreement with a lump sum payment of the remaining amount owed.

(i) Administration. The administration of this section shall be under the exclusive management and control of the Board of Administration. Said Board shall have, and is hereby granted, full power and authority to adopt and enforce all such rules and regulations as it may deem necessary for the carrying out of the provisions of this ordinance. The Board of Administration shall have the right to construe this section, to interpret any provision thereof, to make rules and regulations relating to this section, and to determine any factual questions arising in connection with the operation of this section after such investigation or hearing as the Board may deem appropriate. Any decision made by the Board under the provisions of this section shall be conclusive and binding on all parties concerned.

(j) Effect of Transfer to Fire and Police Pension Plan. For any Member who has entered into a buy back agreement and elects to transfer membership to the Fire and Police Pension Plan pursuant to Section 4.2216, LACERS shall transfer all service credit and associated contributions that have been purchased, subject to the terms and conditions of the LACERS Peace Officer Transfer Program and the terms and conditions provided in this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (j) added, Ord. No. 188,756, Eff. 11-16-25.

(a) Definitions. For the purpose of this section, the following words and phrases shall have the meaning ascribed to them in this subsection, unless a different meaning is clearly indicated by the context:

Buy Back shall mean purchase by a member of retirement credit for periods of eligible service with other governmental entities or purchase by a member of retirement credit for uncompensated maternity leave.

Full-time Service shall mean a minimum of six (6) months of uninterrupted service with an eligible governmental entity, excluding part-time service.

Governmental Entity shall mean the United States Government, including its territories, any agency of the United States Government, the United States Postal Service and any branch of the United States military service; any State or political subdivision thereof; any local government or special district within any State in the United States, and shall exclude non-governmental agencies supported by government contracts or grants and any prior service with the City of Los Angeles.

Government Service Buy Back Program or GSB shall mean the method for the buy back of retirement credit set forth in this section.

Prior Plan shall mean a retirement plan of a governmental entity in which the member was a participant during full-time service.

Uncompensated Maternity Leave shall mean a leave of absence from City Service taken for maternity reasons without pay, provided that such leave shall be a minimum of one (1) month and a maximum of twelve (12) months with respect to any one pregnancy.

(b) Eligibility. A member is eligible to buy back credit for periods of full-time service with other governmental entities and to buy back credit for periods of uncompensated maternity leave. Notwithstanding the foregoing:

(1) Members may not buy back credit for periods of service for which they are currently eligible or will become eligible to receive a retirement benefit from a prior plan, provided, however, that to the extent required by federal law, periods of service in the United States military reserve may be purchased even if the Member is eligible to receive a retirement benefit from the prior plan. For purposes of the previous sentence, a member shall be treated as eligible for such benefit from a prior plan even if the member will not receive such benefit solely due to the member’s withdrawal of member contributions and interest from the prior plan, unless such withdrawal occurred prior to the later of the member’s date of hire by the City or December 20, 1996, or unless the member deposits the amount of such withdrawal as the buy back purchase price, in accordance with Subsection (e)(2) hereof, within ninety (90) days of such withdrawal. In addition, a member shall be treated as eligible for such benefit from a prior plan if the member received at any time a distribution from the prior plan in excess of member contributions and interest with respect to such period of service. The Board may extend the ninety (90) day period if required for compliance with Section 415 of the Internal Revenue Code. In the event that prior to the attainment of the minimum age and service for a service retirement under LACERS the member becomes eligible to receive currently or in the future a retirement benefit from the prior plan with respect to such period of service, the corresponding buy back credit shall be canceled, and the member shall receive a refund of the payments made under Subsection (e) with respect to such buy back credit, with interest, payable upon the earlier of death, termination of employment, or retirement from City Service.

(2) Members are not allowed to buy back credit for periods of service from a governmental entity which provides reciprocal benefits with LACERS and for which that member would be entitled to those reciprocal benefits. For purposes of the previous sentence, a member shall be treated as entitled to reciprocal benefits even if the member will not receive such benefits solely due to the member’s withdrawal of member contributions and interest from the prior plan, unless such withdrawal occurred prior to the later of the member’s date of hire by the City or December 20, 1996.

(3) Only a member performing City Service as defined in Section 4.1001 shall be eligible to execute a buy back agreement.

(4) For purposes of this section, the date of a withdrawal shall be deemed to be the date of receipt of the proceeds of the withdrawal by the member or other designated recipient.

(5) Uncompensated Maternity Leave. Only a member who was on an active employment status immediately before and after taking a leave of absence for maternity reasons without pay shall be eligible to buy back credit for such leave of absence.

(c) Application of Buy Back Credit. The service credit purchased under this section shall be treated the same as service credit under LACERS, except that it shall not be taken into account for establishing the minimum five-year service requirement for service retirement, disability retirement or vested retirement.

(d) Minimum Periods of Purchase. A member electing to buy back credit for previous service with other governmental entities or for periods of uncompensated maternity leave shall file with the Board of Administration a written application identifying the time periods and agencies for which credit is to be purchased, and shall submit proof acceptable to the Board of Administration establishing the fact of such other service with another governmental entity or such uncompensated maternity leave. Buy back credit for one or more periods of full-time service with another governmental entity prior to entrance or re-entrance into the Retirement System may be purchased, except, however, such purchase shall be limited to not less than six (6) months of uninterrupted service from a single entity. The six-month minimum requirement does not apply to the uncompensated maternity leave.

(e) Agreement with the Los Angeles City Employees’ Retirement System - Buy Back Methods. A member electing to buy back credit described herein shall enter into a written agreement with the Retirement System. Such agreement shall specify the amount to be paid for the purchase of this service credit.

(1) The amount to be paid pursuant to the buy back agreement shall equal (A) the member’s contribution rate, (B) times the member’s annual salary rate at the time the agreement is entered into, and (C) times the number of full and partial years of service to be purchased. Partial years of service shall be rounded down to the full month. Such agreement shall identify the method of payment of the additional contributions required to fund the purchased credit, which will be a specific dollar payment.

(2) Notwithstanding Paragraph (1), if the member had made employee contributions and left the member’s contributions on deposit with the government entity for which full-time service is being purchased until after the later of the member’s date of hire by the City or December 20, 1996, the buy back purchase price will be the amount of the member contributions and interest on deposit in the member’s account with that government entity. For the purpose of purchasing service credit, the Retirement System may either receive (A) eligible rollover distributions, as defined in Section 401(a)(31) of the Internal Revenue Code, (B) rollover contributions, as defined in Section 408(d)(3) of the Internal Revenue Code, or (C) direct cash contributions, the timing of which shall be governed by Subsection (b)(1) herein. The Board of Administration shall prescribe such rules and forms as are necessary to determine when proposed contributions hereunder qualify as rollover contributions.

(f) Method of Purchase.

(1) The member may elect to pay on an after-tax basis in a lump sum or in biweekly installments through payroll deduction, subject to any applicable Internal Revenue Code restrictions.

(2) The member may elect to pay via rollovers of pre-tax and/or after-tax funds pursuant to Section 401(a)(31) or Section 408(d)(3) of the Internal Revenue Code.

(3) Should the member elect to purchase the buy back service credit through payroll deduction, annual interest at a rate determined by the Board and set at the commencement of the agreement shall be charged. The minimum biweekly payroll deduction shall be $25.00.

(g) Execution of the Agreement. A member entering into a buy back agreement shall complete all contributions prior to the effective date of retirement in order to receive agreed upon buy back credit. In the event the member elects to retire prior to completion of the buy back agreement, the member may receive prorated buy back credit for that portion of the service with other governmental entities or uncompensated maternity leave which have been purchased by contributions already made and forfeit the remainder of credit covered by the agreement; or the member may make a lump sum payment sufficient to complete the total payment covered by the agreement. Additionally, a member who elects to terminate an after-tax agreement prior to its completion, or at the time of retirement, may elect to receive a cash refund of the buy back contributions and interest payable upon the earlier of death, termination of employment or retirement or prorated buy back credit.

(h) Member’s Death. In the event of the death of a member who has entered into a buy back agreement, the surviving eligible beneficiary of the member may elect a refund of the buy back contributions and interest thereon; elect to apply the credit, or a portion thereof, to the calculation of the benefits for which the survivor qualifies without the addition of buy back service credit; or elect to complete the terms of the agreement with a lump sum payment of the remaining amount owed.

(i) Benefit Adjustment. The annuity attributable to contributions made pursuant to this section, as well as the service purchased with such contributions, shall not be utilized in the calculation to determine whether a retirement allowance is to be increased to provide a minimum pension of fifty percent (50%), pursuant to the provisions of Section 4.1007(a)(4).

(j) Administration. The administration of this section shall be under the exclusive management and control of the Board of Administration. Said Board shall have, and is hereby granted, full power and authority to adopt and enforce all such rules and regulations as it may deem necessary for the carrying out of the provisions of this section. The Board of Administration shall have the right to construe this section, to interpret any provision thereof, to make rules and regulations relating to this section, and to determine any factual questions arising in connection with this section’s operation after such investigation or hearing as the Board may deem appropriate. Any decision made by the Board under the provisions of this section shall be conclusive and binding on all parties concerned.

(k) El Pueblo Employees. Notwithstanding the above, persons who were employed by El Pueblo de Los Angeles State Historic Monument between May 17, 1977 and June 30, 1995, and who became members of LACERS on July 1, 1995, may purchase service credit for their employment with the El Pueblo between May 17, 1977, and June 30, 1995. The service credit purchased under this section for employment at El Pueblo shall be treated as same as service credit under LACERS including vesting, disability retirement and minimum qualification for service retirement.

(l) Effect of Transfer to Fire and Police Pension Plan. For any Member who has entered into a buy back agreement and elects to transfer membership to the Fire and Police Pension Plan pursuant to Section 4.2216, LACERS shall transfer all service credit and associated contributions that have been purchased, subject to the terms and conditions of the LACERS Peace Officer Transfer Program and the terms and conditions provided in this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (b)(1), Ord. No. 184,853, Eff. 4-6-17; Subsec. (l) added, Ord. No. 188,756, Eff. 11-16-25.

A member may purchase credit for periods of service with the Water and Power Employees’ Retirement Plan (WPERP) on the terms and conditions set forth below, except that periods of noncontributory WPERP service may not be purchased.

(a) Contributions Must Be Transferred. A member may not purchase credit for periods of service with WPERP so long as the member’s contributions remain on deposit with WPERP unless the member authorizes a transfer of the member’s WPERP contributions to the Retirement Plan, to be credited towards payment pursuant to this section.

(b) Treatment of Purchased Service. Service purchased under this section shall be treated the same as LACERS service for purposes of establishing the minimum ten (10) years of continuous service required to qualify for retirement under Subsection 4.1005(c), including the minimum five (5) years required to be based on actual service with the City, the minimum five (5) years of continuous service required to qualify for retirement under Subsection 4.1006(a), or the minimum five (5) years of continuous service required to qualify for disability retirement under Subsection 4.1008(a), except that WPERP service purchased under WPERP’s Other Governmental Service (OGS) program shall not be treated the same as LACERS service for the aforementioned purposes. WPERP service purchased under WPERP’s OGS program when purchased with the Retirement Plan shall only count as service credit for purposes of calculating the member’s service retirement allowance or disability retirement allowance, as applicable. Service purchased under this section shall not count as service or service credit for the purpose of qualifying for any benefits provided in Chapter 11 of Division 4 of this Code.

(c) Written Agreement and Cost of Purchase. A member electing to purchase WPERP service under this section shall enter into a written agreement with the Retirement System. Such agreement shall specify the amount to be paid for the purchase of this service. The cost to purchase service shall be determined as follows:

The member’s contribution rate shall be combined with the “City Contribution Rate” (the average annual percent of payroll contributed by the City to the Retirement Fund, excluding contributions allocated to fund the 401(h) account, based upon the City’s payments for the seven (7) years prior to the time of purchase) to establish the total percent of the member’s compensation, at the time of purchase, that is to be paid for the total length of the period of service that the member agrees to purchase. Compensation as used in this subsection shall refer to the member’s compensation earnable, as defined in Subsection 4.1001(a), at the time of purchase.

As an example, assuming the member’s compensation at the time of purchase is $100,000.00 per year, the member’s contribution rate is ten percent (10%), the City Contribution Rate is twenty percent (20%), and the period of service to be purchased is two (2) years, the cost would be determined as follows:

The ten percent (10%) member contribution rate plus the twenty percent (20%) City Contribution Rate results in a total contribution rate of thirty percent (30%). Thus, to purchase two (2) years of service would cost the member a total of $60,000.00 (thirty percent (30%)) of the member’s $100,000.00 compensation for each year of service purchased).

(d) Method of Purchase.

(1) The member shall transfer any contributions the member has on deposit with WPERP as payment towards the member’s purchase cost.

(2) The member may elect to pay on an after- tax basis in a lump sum or in biweekly installments through payroll deduction, subject to any applicable Internal Revenue Code restrictions.

(3) The Board may establish rules to allow members to pay for purchases via rollovers of funds.

(4) Should the member elect to purchase the buy back service credit through payroll deduction, annual interest at a rate determined by the Board and set at the commencement of the agreement shall be charged. The Board may establish a minimum biweekly payroll deduction.

(e) Execution of the Agreement. A member entering into a purchase agreement shall complete all payments prior to the effective date of retirement in order to receive full credit for the service purchased. In the event the member elects to retire prior to completing payment under the purchase agreement, the member may receive prorated credit for that portion of the service for which payments have already been made and forfeit the remainder of service covered by the agreement; or the member may make a lump sum payment sufficient to complete the total payment covered by the agreement. Additionally, a member who elects to terminate an after-tax agreement prior to its completion, or at the time of retirement, may elect to receive a cash refund of the purchase contributions and interest payable upon the earlier of death, termination of employment or retirement, or to receive prorated service at retirement.

(f) Member’s Death. In the event that a member who has entered into a purchase agreement dies prior to retirement, the funds paid for this purchase shall be considered to be a part of the member’s accumulated contributions and shall be refunded accordingly, with interest thereon computed at the rate applicable to regular member contributions. In the event of the death of a member who has entered into a purchase agreement, the surviving eligible beneficiary of the member may elect a refund of the purchase contributions and interest thereon; elect to apply the credit, or a portion thereof, to the calculation of the benefits for which the survivor qualifies without the addition of buy back service credit; or elect to complete the terms of the agreement with a lump sum payment of the remaining amount owed.

(g) Limits on Purchase. In the event part or all of the purchased service credit at the time of retirement would cause the member’s service retirement allowance to exceed one hundred percent (100%) of final compensation, the purchase cost attributable to any excess service credit that may not be used in the retirement formula, including interest thereon, shall be refunded or may be applied by the member to purchase a larger annuity if doing so does not cause the retirement allowance to exceed any federal limitations that may apply.

(h) Administration. The administration of this section shall be under the exclusive management and control of the Board of Administration. Said Board shall have, and is hereby granted, full power and authority to adopt and enforce all such rules and regulations as it may deem necessary for the carrying out of the provisions of this section. The Board of Administration shall have the right to construe this section, to interpret any provision thereof, to make rules and regulations relating to this section, and to determine any factual questions arising in connection with the operation of this section after such investigation or hearing as the Board may deem appropriate. Any decision made by the Board under the provisions of this section shall be conclusive and binding on all parties concerned.

(i) Effect of Transfer to Fire and Police Pension Plan. For any Member who has entered into a purchase agreement and elects to transfer membership to the Fire and Police Pension Plan pursuant to Section 4.2216, LACERS shall transfer all service credit and associated contributions that have been purchased, subject to the terms and conditions of the LACERS Peace Officer Transfer Program and the terms and conditions provided in this section.

SECTION HISTORY

Added by Ord. No. 182,824, Eff. 12-19-13.

Amended by: Subsec. (c), Ord. No. 183,163, Eff. 8-8-14; Subsec. (c), Ord. No. 184,853, Eff. 4-6-17; Subsec. (i) added, Ord. No. 188,756, Eff. 11-16-25.

The Board of Administration shall, by rule, provide for the making of additional contributions to provide 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 4.1029. All larger annuity benefits funded by the making of additional contributions, as authorized in this section, shall be determined by the actuary 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.

The Board of Administration shall have the authority to adopt all rules necessary to administer the larger annuity program within the constraints established in this section, including the authority to establish a deadline for the receipt of the rollover funds after which the member’s application shall be deemed denied.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Ord. No. 184,853, Eff. 4-6-17.

(a) The provisions of this section shall not be applicable to any benefit payable pursuant to the provisions of Section 4.1010(a)(2). 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) 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 of one percent. This percentage increase or decrease in the C.P.I. that can be applied to a member’s or beneficiary’s benefit as provided in Subsection (a) is the Cost of Living Adjustment (COLA), and the accumulated balance of the COLA that is carried over each year as a result of following the process described in Subdivision (c)(2) is the “COLA Bank”.

(c) 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:

(1) Effective the 1st day of July of each year, beginning with the year 1974, 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) 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 three percent (3%) thereof for each whole month that it was payable during the year.

(2) If the percentage of increase or decrease in the C.P.I. in any calendar year, as determined by the Board of Administration, were to exceed three percent, as compared with the C.P.I. in the preceding year, the percentage of increase or decrease in the C.P.I. in excess of three percent shall be accumulated and carried over and added to or subtracted from the percentage of increase or decrease in the C.P.I. in the next succeeding calendar year, and such procedure shall be complied with from year to year. For those years prior to 1974, in which the COLA was capped at two percent, the percentage of increase or decrease of the C.P.I. which was in excess of two percent, rather than three percent, shall be accumulated and carried over as provided herein. The foregoing provisions of this subdivision shall not apply to any recipient whose benefits were not paid for the entire fiscal year (July 1 to June 30) immediately preceding the fiscal year to which the COLA was first applied, unless the recipient is receiving a continuance benefit following the death of a retired member and the combined benefits paid to the continuance beneficiary and previously paid to the deceased member cover the entire fiscal year immediately preceding the fiscal year when the COLA was first applied.

(3) In no event shall any COLA Bank contain a balance that is less than zero percent.

(d) The amount of any benefit which shall be continued to any survivor upon the death of a retired member subsequent to July 1, 1967, shall be in the same ratio to the amount of the benefit which such member shall have been receiving as of the date of the member’s death as the amount of the benefit which originally would have been continued to such survivor shall bear to the amount of the benefit which originally was payable to such member.

(e) If it were to be 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.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsecs. (b) and (c)(2) amended and Subsec. (c)(3) added, Ord. No. 188,756, Eff. 11-16-25.

(a) 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 in the Consumer Price Index upon retirement benefits and the adequacy of the annual cost of living adjustments provided in Section 4.1022 of the Los Angeles Administrative Code.

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.

(b) The first of the reviews provided in Subsection (a) hereof shall be made during the fiscal year 1981-1982 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.

(c) 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:

(1) 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.

(2) 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 Section 4.1022(b) herein, for each of the preceding three (3) years and the annual adjustments made pursuant to Section 4.1022(c). Discretionary adjustments shall be allocated to each of the three (3) years for which an adjustment is made. Should discretionary cost of living adjustments be granted during the fiscal year 1981-1982, the applicable annual increase in the Consumer Price Index shall be the one upon which the Board of Administration of the Retirement System has based those annual cost of living adjustments which became effective July 1, 1981.

(3) 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 (3)-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.

(4) Discretionary cost of living adjustments may be granted only by ordinances adopted in accordance with the provisions of Section 1168 of the City Charter.

(5) All adjustments provided in this subsection are to be applied prospectively only and shall not be understood to permit retroactive adjustments of benefits.

(d) Discretionary cost of living adjustments shall only be applied to monthly benefits not otherwise excluded from cost of living adjustments under the provisions of Section 4.1022 of this Chapter.

(e) It shall be the duty of the Director of the Office of Administrative and Research Services 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. 182,629, Eff. 7-25-13.

Each beneficiary, as defined in Charter Section 1152, shall have the right, at any time, to waive payment of the whole or any portion of any benefit whatsoever or of any increase in the amount of any benefit which is or shall become payable to the beneficiary pursuant to any provision of this Chapter, and may waive payment thereof forever or for a definite or indefinite period of time. Any such waiver shall be in writing, shall be filed with the Board of Administration, and shall be effective as of the first day of the month following the month in which it shall be filed. Each beneficiary who shall make and file such a waiver shall have the right, at any time, to cancel the same. Any such cancellation shall be in writing, shall be filed with the Board of Administration and shall be effective as of the first day of the month following the month in which it shall be filed. Any such waiver shall constitute a complete release, discharge and acquittance of the City of Los Angeles and the Board of Administration from any and all liability to pay any amount or amounts of any benefits which shall be waived by any such beneficiary.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Any benefit payable from the Retirement System that is not claimed shall revert to the Retirement Fund. Unless there is a different claim period specified elsewhere in this article, benefits payable from the Retirement System must be claimed within one (1) year. If the person entitled to a benefit is a minor, the period in which to claim the benefit shall be tolled until such person attains age eighteen (18).

In the event that a beneficiary is entitled to a benefit from the Retirement System but payment cannot be made for any reason, such as the beneficiary’s failure to cooperate, where the beneficiary’s whereabouts is unknown, or where a beneficiary has failed to cash an outstanding check within such reasonable time period as established by Board rule, and the Retirement System has followed Internal Revenue Service procedures to locate the beneficiary, the funds due to the beneficiary shall be forfeited to the Retirement Fund, provided that a beneficiary shall be relieved from such forfeiture upon receipt of a request from the beneficiary or anyone authorized to act on the beneficiary’s behalf.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

If it shall be impracticable for the Board to determine from the records the length of service, the compensation, either final or earnable, or the age of any member, the said Board may estimate, for all purposes of this Article, such length of service, compensation or age. It shall determine and fix the amount of service rendered which shall be the equivalent of a year of service, provided that not more than one (1) year of service shall be credited for all services rendered during any one year. In all cases where compensation of any member consists, in part, of payment for the use of equipment owned and operated by such member personally, the Board of Administration shall fix and determine, for all purposes of this Article, a compensation for the personal service of such member, which shall be in keeping with the salary or wage paid by said City for comparable service, and the compensation so fixed by the Board shall be the basis, and the only basis, for the calculation of the contributions of such member and any and all benefits provided for in this article. Each member shall file with said Board such information affecting the member’s status as a member of said Retirement System, as said Board may require, and the administrative head of each department of the City government shall furnish to said Board such information relative to any member, and the member’s status, as it may request.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Trustee-to-Trustee Transfers. The Board of Administration may, notwithstanding any restrictions upon the method of such payment specified elsewhere, provide, by rule, that any member eligible to:

(1) make up back contributions;

(2) re-deposit contributions;

(3) buy back service credit;

(4) make up contributions for periods during which Workers’ Compensation was received,

(5) make additional contributions to purchase a larger annuity, provided it is determined cost-neutral by the actuary; or

(6) make any other payment in order to receive an increased benefit, may make full or partial payment for these purposes by a direct trustee-to-trustee transfer of funds from any eligible retirement plan (as defined in Section 402(c)(8)(B) of the Internal Revenue Code) as permitted under current federal and state law or under these laws as amended in the future. Should this transfer constitute a partial payment, any additional payment received in a lump sum shall, together with the amount transferred, directly be considered one payment for purposes of this Article.

(b) Certain Actions. Except as otherwise expressly provided, wherever the provisions of this Article call for an “election,” “application” or “option” or other act to be performed by any person receiving or entitled to receive benefits pursuant to this Article, it shall be within the power of the Board of Administration to establish all necessary rules with respect to the time, manner and operative date of such act.

(c) Charter Authority. Pursuant to Charter Section 1106(f), the Board shall have the power to adopt any rules, regulations or forms it deems necessary to carry out its administration of the Retirement System or assets under its control.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Los Angeles City Employees’ Retirement System to the contrary that would otherwise limit a distributee’s election under this part, the “distributee” of an “eligible rollover distribution” may elect to have any portion of an eligible rollover distribution that is equal to at least $200.00 paid directly to an “eligible retirement plan” specified by the distributee in a “direct rollover.”

(b) Definitions.

Eligible Rollover Distribution. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal period payments (not less frequently than annually) made for the life (or the life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; the portion of any distribution that is not includable in gross income; and any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with the provisions of Section 415 of the Internal Revenue Code or any distribution that is reasonably expected to total less than $200.00 during a year. On or after January 1, 2002, a portion of a distribution that is not includable in gross income, but that otherwise qualifies as an eligible rollover distribution, is an eligible distribution, provided that the eligible retirement plan designated to receive such portion of a distribution is (i) an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, or a qualified defined contribution plan described in Section 401(a) or 403(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution, which is includable in gross income and the portion of such distribution, which is not so includable; (ii) on or after January 1, 2007, is a qualified defined benefit plan described in section 401(a) of the Internal Revenue Code or an annuity contract described in section 403(b) of the Internal Revenue Code, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not so includable; (iii) on or after January 1, 2008, is a Roth IRA described in Section 408A of the Internal Revenue Code.

Eligible Retirement Plan. An eligible retirement plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403(a) of the Internal Revenue Code, or a qualified plan described in Section 401(a) of the Internal Revenue Code that accepts a distributee’s eligible rollover distribution. On or after January 1, 2002, an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code, maintained by an employer described in Section 457(e)(1)(A) of the Internal Revenue Code, and annuity contract described in Section 403(b) of the Internal Revenue Code, are also eligible retirement plans. However, prior to January 1, 2002, in the case of an eligible rollover distribution to the surviving spouse or other designated beneficiary, an eligible retirement plan is an individual retirement account or individual retirement plan annuity only. On or after January 1, 2008, a Roth IRA described in section 408A of the Internal Revenue Code is an eligible retirement plan.

Distributee. A distributee means an employee, former employee, spouse or former spouse of an employee or former employee eligible for a rollover distribution. On or after January 1, 2007, a distributee further includes a nonspouse beneficiary who is a designated beneficiary as defined by section 401(a)(9)(E) of the Internal Revenue Code. However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an “inherited” individual retirement account or annuity.

Direct Rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Notwithstanding any other provisions of this Article, the benefits payable to any person who becomes a member on or after January 1, 1990, shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code. Effective for limitation years beginning on or after January 1, 2001, for purposes of applying the limitations of Section 415 of the Internal Revenue Code, compensation paid or made available during the limitation year shall include any amounts that are not includable in the gross income of the member by reason of Section 132(f)(4) of the Internal Revenue Code.

(b) The benefits payable to any person who became a member prior to January 1, 1990, shall be subject to the greater of the following:

(1) The limitations set forth in Section 415 of the Internal Revenue Code; or

(2) The accrued benefit of the member (determined without regard to any amendment made after October 14, 1987, as provided in Section 415(b)(10)(A) of the Internal Revenue Code).

(c) If compliance with the provisions of Internal Revenue Code Section 415 and related sections would result in a lower level of retirement benefits for members on or after January 1, 1990, than for members prior to that date, then the Council shall provide, by ordinance, an alternative means of maintaining for such members the level of benefits in effect for members as of December 31, 1989.

(d) Notwithstanding any other provisions of the Retirement System to the contrary, the member contributions paid to, and retirement benefits paid from, the plan shall be limited to such extent as may be necessary to conform to the requirements of Section 415 of the Internal Revenue Code for a qualified pension plan.

(e) If any of the limitations of Section 415 of the Internal Revenue Code should be repealed, the provisions of this section shall be deemed repealed to the same extent.

(f) Nothing contained in this section shall limit the City Council from modifying benefits to the extent such modifications are permissible by City Charter and applicable State and Federal law.

(g) Notwithstanding any provision of this plan to the contrary, effective December 12, 1994, contributions, benefits, and service credit with respect to qualified military service while an employee will be provided in accordance with Section 414(u) of the Internal Revenue Code.

(1) Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code), to the extent required by Section 401(a)(37) of the Internal Revenue Code, survivors of a member in a state or local retirement or pension system are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member’s death while employed. In any event, a deceased member’s period of qualified military service must be counted for vesting purposes.

(2) Beginning January 1, 2009, to the extent required by Section 414(u)(12) of the Internal Revenue Code, an individual receiving differential wage payments (as defined under Section 3401(h)(2) of the Internal Revenue Code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under Section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: Subsec. (a), Ord. No. 183,456, Eff. 3-4-15.

The Retirement System will pay all benefits in accordance with a reasonable and good faith interpretation of the requirements of Section 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code. The Retirement System is subject to the following provisions:

(a) Distribution of a Member’s benefit must begin by the required beginning date. The required beginning date shall be the later of April 1 following the calendar year in which the member terminates service or the calendar year in which the member reaches the Applicable Age. The Applicable Age shall mean:

(1) Age 70 1/2 for members born before July 1, 1949;

(2) Age 72 for members born after June 30, 1949 but before January 1, 1951;

(3) Age 73 for members born on or after January 1, 1951 but before January 1, 1960;

(4) Age 75 for members born on or after January 1, 1960; or

(5) The Applicable Age set forth in Section 401(a)(9)(C)(v) of the Internal Revenue Code, as amended from time-to-time.

If a Member fails to apply for retirement benefits or request a refund, as applicable, by the later of either of those dates, the Board shall begin distribution as required by this rule in the form provided in Section 4.1007 or Section 4.1004 of this Code, as applicable.

(b) The Member’s entire interest must be distributed over the Member’s life or the lives of the Member and a qualified survivor, or over a period not extending beyond the life expectancy of the Member or of the Member and a designated beneficiary.

(c) The Retirement System, pursuant to a court order, may pay a portion of the Member’s benefit to a nonmember.

(d) If a Member dies after the required distribution of benefits has begun, the remaining portion of the Member’s interest must be distributed at least as rapidly as under the method of distribution before the Member's death.

(e) If a Member dies before required distribution of the Member’s benefits has begun, the Member’s entire interest must be either:

(1) distributed (in accordance with federal regulations) over the life or life expectancy of the qualified survivor, with the distributions beginning no later than December 31 of the calendar year following the calendar year of the Member’s death; or

(2) distributed within five years of the Member’s death.

(f) The amount of an annuity paid to a Member’s beneficiary may not exceed the maximum determined under the incidental death benefit requirement of Section 401(a)(9)(G) of the Internal Revenue Code, and the minimum distribution incidental benefit rule under Treasury Regulation Section 1.401(a)(9)-6(b).

(g) The death and disability benefits provided by the retirement system are limited by the incidental benefit rule set forth in section 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation Section 1.401-1(b)(1)(i), or any successor regulation thereto. As a result, the total death or disability benefits payable may not exceed 25 percent of the cost for all of the Members’ benefits received from the retirement system.

(h) Notwithstanding the other provisions of this rule or the provisions of the Treasury Regulations, benefit options may continue so long as the option satisfies Section 401(a)(9) of the Internal Revenue Code based on a reasonable and good faith interpretation of that section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: In Entirety, Ord. No. 188,756, Eff. 11-16-25.

In order to maintain its status as a qualified governmental defined benefit plan under the Internal Revenue Code, the Retirement System is subject to the following provisions:

(a) In addition to any vesting protections under current provisions of the Retirement System, in the event of a full or partial termination of, or a complete discontinuance of employer contributions to, the plan, the accrued benefits of the affected members under the plan shall be 100% vested and nonforfeitable to the extent required by federal law.

(b) The Retirement Fund (the trust fund established for the Retirement System in Charter Section 1154) must not revert, and no contributions shall be permitted to be returned to the employer.

SECTION HISTORY

Added by Ord. No. 183,456, Eff. 3-4-15.

When a court of competent jurisdiction does not order a separate account as specified in Section 4.1032, but instead awards the former spouse or former domestic partner (the “Ex”) a portion of the retirement benefits payable to the member and to the member’s surviving spouse or domestic partner (survivor), if any, the Ex, in lieu of receiving the Ex’s portion of the benefits payable based upon the lifetime of the member and/or survivor, may instead make an irrevocable election to convert the Ex’s interest in such retirement benefits into an actuarially equivalent life annuity payable for the lifetime of the Ex. If the member has not yet retired, the Ex must make this irrevocable election to receive a life annuity in writing prior to receiving payment of the Ex’s community property portion of the retirement allowance. If the member has already retired, the election must be made at the time the Ex requests direct payment of the Ex’s community property portion of the retirement allowance. The Ex must make the election to receive a life annuity within 90 days of LACERS providing written notice to the Ex. If this irrevocable election is not made prior to the applicable times specified herein, the Ex 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’ marriage or domestic partnership has not been legally terminated.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Amended by: In Entirety, Ord. No. 188,756, Eff. 11-16-25.

Separate accounts, on the terms and conditions set forth in this section, may be established under a court order dividing community property in connection with a legal separation or a dissolution provided that the order is entered prior to the member’s retirement. Separate accounts cannot be established by a court order entered after the member’s retirement.

(a) Court Order Required for Separate Accounts. When a court of competent jurisdiction orders the division of community property prior to the member’s date of retirement, the court may order that the accumulated contributions, plus regular interest and service credit attributable to periods of service during the marriage be divided into two separate and distinct accounts in the name of the member and the nonmember, respectively. Any service credit or accumulated contributions that are not explicitly awarded by the court order shall be deemed the separate property of the member, in which the nonmember shall have no further interest.

The nonmember who is awarded a separate account under this section shall be required to make an irrevocable written election to either receive a refund of contributions or a separate account allowance, provided the nonmember must be eligible for the option that is elected. If said election is not timely made, the nonmember shall be deemed to have chosen a refund of contributions.

(b) Definitions. For purposes of this section, the following words and phrases are defined as follows:

Nonmember. The spouse, former spouse, domestic partner, or former domestic partner of a member who, as a result of petitioning the court for the division of community property, has been awarded a separate account reflecting specific credited service and accumulated contributions.

Separate Account Allowance. The monthly amount remitted to a nonmember based on the division of community property, by a court of competent jurisdiction, into a separate account reflecting specific credited service and accumulated contributions, actuarially reduced to provide an annuity for life.

Final Monthly Average Compensation. For a nonmember only, is the monthly average of the member’s highest consecutive twelve (12) months of salary at the time of separation.

(c) Benefits Available to Nonmember Awarded a Separate Account.

(1) Refund of Contributions.

(i) A nonmember who is awarded a separate account shall have the right to a refund of the accumulated contributions, plus regular interest in the separate account of the nonmember. A nonmember who elects a refund of contributions is deemed to have permanently waived all rights in this System and all rights to any future retirement benefits pertaining to the service credit, accumulated contributions or both when the refund becomes effective. The nonmember may not cancel a refund once it has become effective, nor may the nonmember redeposit a refund once it has been paid.

(ii) If at the time of separation the member does not have five (5) years of service credit in the System, the nonmember who has been awarded a separate account shall only receive a refund of the accumulated contributions and regular interest placed in the nonmember’s account.

(iii) A nonmember who has elected a refund of contributions or whose only separate account right is to a refund of contributions shall not have interest credited to the contributions in the nonmember’s separate account after the date of the member’s retirement or death, whichever occurs first. The nonmember’s right to receive a refund of all the contributions in the nonmember’s account on such date is a vested property right, provided, however, that should the nonmember fail to request a refund within ten (10) years from the date of the member’s death or retirement, as applicable, said contributions shall be removed from the nonmember’s separate account and shall revert to the Retirement Fund, unless and until the Board of Administration receives a valid belated refund request, determined at the sole discretion of the Board of Administration, which shall be granted. If the nonmember attains age seventy and a half (70 1/2) with contributions still on deposit in the nonmember’s separate account, the nonmember’s contributions shall be subject to mandatory distribution as required by the Internal Revenue Code; provided that, if such person cannot be located and paid such mandatory distribution and the Retirement System has followed Internal Revenue Service procedures to locate the beneficiary, such funds shall revert to the Retirement Fund as provided above, unless and until the Board of Administration receives a valid belated refund request, determined at the sole discretion of the Board of Administration, which shall be granted.

(2) Separate Account Allowance.

(i) Unless the nonmember has elected to receive or has received a refund of contributions, a nonmember who is awarded a separate account shall be entitled to receive a Separate Account Allowance paid monthly for life, provided that a timely written election has been made and that both of the following conditions are met:

(A) On the date of separation the member had five (5) years of service credit in the System; and

(B) The member was eligible to receive a service retirement allowance on the date that the separate account allowance begins.

(ii) The amount of the Separate Account Allowance shall be based on the service retirement formula in effect on the date of separation applicable to the service credited to the nonmember by the employer and the effective date of the nonmember’s Separate Account Allowance, actuarially reduced to provide an annuity for life. The Separate Account Allowance shall be subject to all cost-of-living and discretionary increases.

(iii) The Separate Account Allowance shall consist of a pension and a life annuity, the latter of which shall be derived from the nonmember’s accumulated contributions. The Separate Account Allowance shall terminate upon the death of the nonmember.

(3) Election of Nonmember Benefits. The nonmember may make an irrevocable election, in writing, to receive the benefit provided under this section as either a refund of contributions or a Separate Account Allowance at any time after the entry of the court order and before the member’s retirement or death, whichever occurs first. A nonmember who elects a refund of contributions may request a refund of contributions at the time the election is made or any time thereafter. A nonmember who elects a Separate Account Allowance may request the allowance to begin at the time the election is made or at any time thereafter so long as the conditions set forth in Section 4.1032(c)(2)(i) have been met by the date the monthly allowance is to begin.

The nonmember shall be deemed to have elected a refund of contributions if an irrevocable written election is not made either prior to the member’s retirement or death, whichever occurs first, or within such period following the retirement or death as provided by Board rule. The Board of Administration shall adopt rules establishing a limited period following the member’s retirement or death, as applicable, in which a nonmember who has not yet made an election may be allowed to make an irrevocable written election. If within the period established by Board rule the nonmember elects to take a separate account allowance, the allowance shall begin on the day prior to the member’s retirement or death, as applicable, so long as the conditions set forth in Section 4.1032(c)(2)(i) have been met by that date.

(4) Benefits Not Granted to Nonmember. A nonmember whose dissolution is final 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, medical or dental subsidy, or retired member lump-sum death benefit. No survivor continuance allowance shall be payable to a survivor of a nonmember.

(d) Calculation of Member’s Service Retirement Allowance. A member whose retirement is divided under the provisions set forth above shall receive a monthly retirement allowance based on all service credit and the member’s final compensation at the date of retirement as provided under the provisions of this Article, subject to reduction by the value of the separate account determined as follows:

(1) If the separate account was paid as a refund of contributions, the service credit and contributions awarded to the nonmember shall not be included in the calculation of the member’s retirement allowance, except to the extent that the member has re-deposited funds as provided in Section 4.1032(f)(1).

(2) If the nonmember elected to receive a Separate Account Allowance, the service credit and contributions awarded to the nonmember shall not be included in the calculation of the member’s retirement allowance except to the extent that the member has paid to purchase service credit as provided in Section 4.1032(f)(2).

(3) If the nonmember has not elected to receive either a refund of contributions or a Separate Account Allowance prior to the member’s retirement, the service credit and contributions awarded to the nonmember shall not be included in the calculation of the member’s retirement allowance.

(e) Calculation of Member’s Disability Retirement Allowance. Members whose retirement is divided under the provisions set forth above shall receive a monthly disability retirement allowance as provided for in Section 4.1008 except that the portion of accumulated contributions credited to the nonmember will be treated as missed deductions in the member account.

(f) Buy Back of Funds Allocated to Nonmember.

(1) If a nonmember receives a refund of contributions and interest, the member may re-deposit these funds, together with any accumulated interest these funds would have earned if the refund had not occurred, to the System, subject to rules adopted by the Board of Administration, and receive full credit for the period of time represented by these funds.

(2) If a nonmember elects to receive a Separate Account Allowance, the member may purchase service credit not to exceed the years of service credited to the nonmember. The purchase of this service credit shall be the full actuarial cost and subject to rules adopted by the Board of Administration.

(g) Duties and Responsibilities of the Board of Administration. The Board of Administration shall adopt rules to administer separate accounts ordered by a court of competent jurisdiction, and shall formulate benefits applicable to these separate accounts 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. 182,629, Eff. 7-25-13.

(a) Wherever “ERIP” is used in this Chapter, it shall refer to the Early Retirement Incentive Program. Subject to the provisions and limitations set forth herein, an active City employee who is a member of the Los Angeles City Employees’ Retirement System (LACERS) may be retired from the service of the City with the ERIP benefits set forth herein, provided that the LACERS member meets all of the requirements set forth herein to be eligible for retiring under the ERIP, and provided that the member’s completed ERIP Election Form is received in the Office of the City Administrative Officer (CAO) within the forty-five (45)-day ERIP window period defined herein (ERIP Eligible Filers). Also subject to the provisions and limitations set forth herein, a City retiree who was an active LACERS member may receive the ERIP benefits set forth herein, provided that the retiree retired on or after June 26, 2009, but prior to the ERIP Beginning Date defined herein, and the retiree meets all of the requirements set forth herein to be eligible to receive the ERIP benefits as contemplated in the June 26, 2009, Council motion (Council File 09-1320) (“Grandfathered Participant,” further defined below in Section 4.1033(a)(4)(i)). The forty-five (45)-day ERIP window period shall begin on this ordinance’s effective date (ERIP Beginning Date) and end on the forty-fifth (45th) day thereafter unless that forty-fifth (45th) day falls on a weekend or a City holiday, in which case it shall end on the next day that is not a weekend or a City holiday (ERIP Ending Date). The ERIP Ending Date shall be included in the ERIP window period, so that the CAO shall continue to receive completed ERIP Election Forms until close of business on the ERIP Ending Date. The CAO shall establish the rules and procedures for receiving a completed ERIP Election Form, including what constitutes a completed ERIP Election Form and what constitutes the date and time the form was received by the CAO. In order for the ERIP to meet its goal of assisting with the City’s financial situation while minimizing the impact on City services, the following provisions and limitations shall apply to the ERIP:

(1) Only LACERS members currently in an employed status with the City on the ERIP Beginning Date shall be eligible to submit an ERIP Election Form. LACERS members in a terminated status shall not be eligible to submit an ERIP Election Form. Former City employees, including, but not limited to, deferred vested former City employees, shall not be eligible to submit an ERIP Election Form. In addition, only persons belonging to at least one of the five ERIP “Groups” listed below in Sections 4.1033(b)(1)-(5) as of the ERIP Beginning Date shall be eligible to submit an ERIP Election Form. A person belonging to one of the ERIP Groups as of the ERIP Beginning Date may possibly change ERIP Groups prior to the person’s effective date of retirement. However, a person who does not belong to any ERIP Group as of the ERIP Beginning Date shall not be eligible to submit an ERIP Election Form. Grandfathered Participants may be eligible to receive the ERIP benefits, but they need not submit an ERIP Election Form, and their retirements are not considered retirements under the ERIP.

(2) A LACERS member eligible under Section 4.1020 (Government Service Buyback or GSB) to purchase time due to service in another government agency shall be allowed to include the purchased time in the determination of ERIP eligibility. For the purchased time to be included in the determination of ERIP eligibility, the LACERS member must follow the existing GSB purchasing policies, and the member must have completed the GSB purchase by the end of the City pay period that includes the ERIP Beginning Date. For reciprocal service under Section 4.1096 to be included in the determination of ERIP eligibility, the reciprocal time must be certified by the reciprocating system, and the certification must be received by LACERS prior to the ERIP Beginning Date. Once so established, the LACERS member shall be entitled to use this reciprocal service in order to qualify for ERIP even if reciprocity is subsequently broken, such as by the member’s inability to retire concurrently from the reciprocating system. When a person elects to submit an ERIP Election Form and retire under the ERIP, the person shall assume all risks that result from this election, including, but not limited to, the loss of the right to use the person’s final compensation as determined by LACERS for purposes of computing final compensation earnable with the reciprocal system in the event that the person is not able to retire concurrently under both systems. Time purchased under Section 4.1019 (Public Service Buyback or PSB) shall not be included in the determination of ERIP eligibility.

(3) Certain City employee classifications are excluded from the ERIP (Excluded Classifications). Certain other City employee classifications have an ERIP limitation number, meaning that the total number of a classification’s ERIP Eligible Filers actually retiring under the ERIP, plus the number of that classification’s Grandfathered Participants actually receiving the ERIP benefits, shall be limited in number (Limited Classification). The CAO shall make known these Excluded Classifications, Limited Classifications, and the Limited Classifications’ ERIP limitation numbers.

(i) In the event that a Limited Classification’s number of ERIP Eligible Filers and Grandfathered Participants exceeds the limitation number, the earliest initial date of LACERS membership (Initial LACERS Membership Date) shall be used to determine which ERIP Eligible Filers shall be allowed to retire under the ERIP and which Grandfathered Participants shall receive the ERIP benefits. The person with the earliest Initial LACERS Membership Date shall receive priority. If there is a tie in the earliest Initial LACERS Membership Date between two or more persons of the same Limited Classification, then the one with the longer time of employment in the Limited Classification at issue shall prevail. If there is also a tie in the time of employment in the Limited Classification at issue, then the one whose completed ERIP Election Form was first received by the CAO’s office prevails. A Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered Participant’s retirement was first filed with LACERS.

(ii) If a Limited Classification’s ERIP limitation number is reached, an ERIP waiting list shall be created for that Limited Classification. ERIP Eligible Filers on a Limited Classification’s ERIP waiting list may be allowed to retire under the ERIP, and/or Grandfathered Participants on a Limited Classification’s ERIP waiting list may be allowed to receive the ERIP benefits, if and to the extent that ERIP Eligible Filers with earlier Initial LACERS Membership Dates in the Limited Classification rescind their ERIP Election Forms, and/or the Limited Classification’s ERIP limitation rate is increased. A Limited Classification’s ERIP waiting list shall be ordered pursuant to the same Initial LACERS Membership Date priority and tiebreakers referenced above in Section 4.1033(a)(3)(i). A Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered Participant’s retirement was first filed with LACERS. After the 45-day ERIP window period has expired, the CAO’s office shall notify any ERIP Eligible Filers on a Limited Classification’s waiting list who will not be allowed to retire under the ERIP. After the forty-five (45)-day ERIP window period has expired, any LACERS member may elect to retire pursuant to standard, non-ERIP LACERS procedures and provisions. After the 45-day ERIP window period has expired, the CAO’s office shall notify any Grandfathered Participants on a Limited Classification’s waiting list who will not be allowed to receive the ERIP benefits.

(4) The ERIP shall have a limit of 2,400 persons, meaning that the total number of ERIP Eligible Filers actually retiring under the ERIP, plus the number of Grandfathered Participants actually receiving the ERIP benefits, shall be limited to 2,400. In the event that the total number of ERIP Eligible Filers and Grandfathered Participants exceeds 2,400, a first-come-first-served basis (ordered pursuant to the date and time the ERIP Election Form was received by the CAO’s office) shall be used to determine which ERIP Eligible Filers shall be allowed to retire under the ERIP and which Grandfathered Participants shall be allowed to receive the ERIP benefits. A Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered Participant’s retirement was first filed with LACERS. Also in the event that the total number of ERIP Eligible Filers and Grandfathered Participants exceeds 2,400, a general ERIP waiting list shall be created. ERIP Eligible Filers on the general ERIP waiting list may be allowed to retire under the ERIP if and to the extent that earlier ERIP Eligible Filers rescind their ERIP Election Forms, and/or if City Council and the Office of the Mayor approve an increase of the 2,400 ERIP limit. (If there are any Grandfathered Participants on the general ERIP waiting list, it means that the 2,400 ERIP limit was reached within the number of Grandfathered Participants alone. A Grandfathered Participant on the general ERIP waiting list may be allowed to receive the ERIP benefits if and to the extent that City Council and the Office of the Mayor approve an increase of the 2,400 ERIP limit.) This general ERIP waiting list shall be separate from the waiting lists for the various Limited Classifications set forth above in Section 4.1033(a)(3)(ii). The CAO’s office shall establish the rules and procedures for accepting ERIP Eligible Filers and Grandfathered Participants from the general ERIP waiting list and/or a Limited Classification’s waiting list, and how the waiting lists shall operate in conjunction with each other. After the forty-five (45)-day ERIP window period has expired, the CAO’s office shall notify any ERIP Eligible Filers on a general ERIP waiting list who will not be allowed to retire under the ERIP. After the 45-day ERIP window period has expired, any LACERS member may elect to retire pursuant to standard, non-ERIP LACERS procedures and provisions. After the forty five (45)-day ERIP window period has expired, the CAO’s office shall notify any Grandfathered Participants on the general ERIP waiting list who will not be allowed to receive the ERIP benefits.

(i) A “Grandfathered Participant” is an ERIP-eligible City retiree whose effective date of retirement is on or after June 26, 2009, but before the ERIP Beginning Date. As contemplated in the June 26, 2009, Council motion (Council File 09-1320), a Grandfathered Participant determined to be allowed to receive the ERIP benefits shall receive such applicable benefits. A Grandfathered Participant need not submit an ERIP Election Form to the CAO’s office within the forty-five (45)-day ERIP window period. Rather, to the extent a Grandfathered Participant is determined to be allowed to receive the ERIP benefits, the Grandfathered Participant shall automatically receive the applicable ERIP benefits for the Grandfathered Participant’s ERIP “Group” (see Section 4.1033(b) below). The date to be used for the purpose of determining the proper ERIP Group for a Grandfathered Participant shall be the Grandfathered Participant’s last day on the City payroll. (A City retiree who retired on or after June 26, 2009, but before the ERIP Beginning Date, who did not belong to any ERIP Group as of the retiree’s last day on the City payroll is not a Grandfathered Participant, and shall not be eligible to receive the ERIP benefits.) A Grandfathered Participant shall receive priority over ERIP Eligible Filers with regards to being within the general 2,400 ERIP limit, in that a Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered Participant’s retirement was first filed with LACERS. A Grandfathered Participant receiving the ERIP benefits shall count towards the 2,400 ERIP limit. However, a Grandfathered Participant in a Limited Classification shall not be guaranteed to receive the ERIP benefits. A Grandfathered Participant who, as of the Grandfathered Participant’s last day on the City payroll, was in a classification determined to be a Limited Classification shall not receive priority over ERIP Eligible Filers with regards to being within that Limited Classification’s ERIP limitation number. Rather, the ERIP Eligible Filers and the Grandfathered Participants to be allowed within that Limited Classification’s ERIP limitation shall be determined by the Initial LACERS Membership Date priority, tiebreakers, and waiting lists as set forth above in Section 4.1033(a)(3)(i)-(ii).

(5) An ERIP Eligible Filer may rescind the ERIP Eligible Filer’s ERIP Election Form by delivering, to the CAO’s office, a completed ERIP Rescission Form (as promulgated by the CAO’s office) within seven (7) calendar days of delivery, to the ERIP Eligible Filer’s address on file with LACERS, of notification that the ERIP Eligible Filer’s ERIP Election Form has been approved. The ERIP Election Form may not be rescinded after the seven (7) calendar days have passed.

(6) To minimize the impact on City services, an ERIP Eligible Filer may not select the ERIP Eligible Filer’s effective date of retirement under the ERIP. While Management may take the person’s preferences into account, Management shall determine the effective date of retirement for a person retiring under the ERIP.

(i) The portion of Los Angeles Administrative Code Section 4.1005 stating that a person’s effective date of retirement shall be not less than thirty (30) nor more than sixty (60) days from and after the filing of the person’s LACERS retirement application shall not apply to persons retiring under the ERIP.

(ii) Management’s decision as to a person’s effective date of retirement under the ERIP shall be final and binding, regardless of whether the ERIP Eligible Filer agrees with Management’s decision. The ERIP Eligible Filer may be required to retire as soon as administratively possible, or may be required to continue working for the City for an extended period of time. The CAO may promulgate rules that Management shall follow regarding the effective dates of retirement for ERIP Eligible Filers.

(7) During the forty-five (45)-day ERIP window period, LACERS shall not accept a non-ERIP retirement application from a person eligible for the ERIP, defined as a person who, as of the ERIP Beginning Date, belongs to at least one of the five ERIP Groups listed below in Sections 4.1033(b)(1)-(5). After the forty-five (45)-day ERIP window period has expired, any LACERS member may elect to retire pursuant to standard, non-ERIP LACERS procedures and provisions.

(i) All applications for non-ERIP LACERS retirements submitted by persons eligible for the ERIP, and still pending as of the beginning of the forty-five (45)-day ERIP window period, shall be held in abeyance for the duration of the forty-five (45)-day ERIP window period. Such ERIP-eligible persons may elect to submit an ERIP Election Form, or, alternatively, they may wait until after the forty-five (45)-day ERIP window period has expired, at which point their non-ERIP retirement applications shall continue to be processed. Such ERIP-eligible persons who elect to submit an ERIP Election Form shall not receive priority with respect to being within the 2,400 person ERIP limit, and shall not receive priority with respect to being within a Limited Classification’s ERIP limitation number.

(8) Accumulated Sick and Vacation Time is not payable to persons retiring under the ERIP, and such persons shall not be entitled to a payment of Accumulated Sick and Vacation Time upon retirement. In addition to the ERIP benefits set forth below in Section 4.1033(b), which include the Separation Payments in Sections 4.1033(b)(4)(i) and 4.1033(b)(6), persons retiring under the ERIP shall receive a severance payment in the amount of what would be the person’s Accumulated Sick and Vacation Time payment if the person were retiring pursuant to standard, non-ERIP retirement policies and procedures (Severance Payment). This Severance Payment and the applicable Separation Payment, as set forth below in Sections 4.1033(b)(4)(i) and 4.1033(b)(6), shall be paid over two separate calendar years, with the City selecting the payment dates. This Severance Payment and the applicable Separation Payment, as set forth below in Sections 4.1033(b)(4)(i) and 4.1033(b)(6), shall constitute, and be administered as, a Bona Fide Separation Pay Plan under Internal Revenue Code Section 457(e)(11) because (A) these payments are payable only to a person who has submitted an ERIP Election Form during the forty-five (45)-day ERIP window period and who actually has a severance from employment pursuant to the ERIP; (B) the amount payable does not exceed two times the person’s annual rate of pay (taking into account only pay that does not exceed the maximum amount that may be taken into account under a qualified plan pursuant to Internal Revenue Code Section 401(a)(17) for the year in which the person has the person’s severance from employment); and (C) the payments shall be completed by the end of the second calendar year following the calendar year in which the employee separates from City service. Any tax liabilities arising from any Severance Payments and/or Separation Payments shall be the sole responsibility of the person(s) receiving the payments.

(i) A Grandfathered Participant’s retirement is not considered a retirement under the ERIP, even if the Grandfathered Participant receives the ERIP benefits. Therefore, the above provisions pertaining to Accumulated Sick and Vacation Time and the Severance Payment do not apply to Grandfathered Participants who receive the ERIP benefits. Instead, a Grandfathered Participant who receives the ERIP benefits either has already received, or shall receive, the Grandfathered Participant’s Accumulated Sick and Vacation Time payment, if any, pursuant to standard, non-ERIP retirement policies and procedures. Payment of Accumulated Sick and Vacation Time to such a Grandfathered Participant is not a retirement benefit. A Grandfathered Participant who receives the ERIP benefits shall not receive the Severance Payment, but shall receive the applicable Separation Payment as set forth below in Sections 4.1033(b)(4)(i) and 4.1033(b)(6). The applicable Separation Payment shall be paid over two separate calendar years (with the City selecting the payment dates), and shall constitute, and be administered as, a Bona Fide Separation Pay Plan under Internal Revenue Code Section 457(e)(11). Any tax liabilities arising from any Accumulated Sick and Vacation Time payments and/or Separation Payments shall be the sole responsibility of the person(s) receiving the payments.

(ii) The Severance Payment shall be paid by the City, and the cost of the Severance Payment shall remain a cost of the City. The Separation Payment shall also be paid by the City. However, the cost of the Separation Payment shall be an obligation of the LACERS members, and shall be recouped by the City through the provisions set forth below in Section 4.1033(a)(9)(i)-(iii).

(iii) Neither the Severance Payment nor the Separation Payment shall be considered a retirement benefit.

(9) The ERIP actuarial cost, as determined by the LACERS actuary, and the total cost of the Separation Payments shall, together, be known as the “ERIP Cost Obligation.” The ERIP Cost Obligation shall be an obligation of the LACERS members. The LACERS actuary has determined the preliminary ERIP Cost Obligation to be $271 million, as presented in the actuarial report dated September 25, 2009, based on a projection of 2,229 ERIP Eligible Filers actually retiring and Grandfathered Participants actually receiving the ERIP benefits.

(i) LACERS members’ payment of the ERIP Cost Obligation shall commence on July 1, 2011, and end on June 30, 2026, or when the ERIP Cost Obligation is fully paid, whichever comes first. The payment shall consist of a one percent (1%) increase in the LACERS active employee retirement contribution rate of six percent (6%) (of which one-half percent (0.5%) is the survivor contribution portion), so that the total LACERS active employee retirement contribution rate shall be seven percent (7%) for all LACERS members. After all ERIP Eligible Filers actually retiring under the ERIP have retired, the LACERS actuary shall re-calculate the ERIP Cost Obligation based on the number of ERIP Eligible Filers actually retiring and Grandfathered Participants actually receiving the ERIP benefits, using the same methodology used to determine the preliminary ERIP Cost Obligation. However, the City reserves the right to increase the LACERS active employee contribution rate for new City hires, in accordance with all applicable laws and practices.

(ii) The LACERS active employee retirement contribution rate for LACERS members hired prior to 1983 (Defrayal Group) shall be adjusted to six percent (6%) (of which one-half percent (0.5%) is the survivor contribution portion) upon the effective date of this ordinance. Commensurate with Section 4.1033(a)(9)(i), above, employees in the Defrayal Group shall have their retirement contribution increased from six percent (6%) to seven (7%) on July 1, 2011. All savings from the elimination of defrayal shall be credited towards the payment of the ERIP Cost Obligation.

(iii) Once the City has recouped the ERIP Cost Obligation, the LACERS active employee retirement contribution rate shall be adjusted to six percent (6%) (of which one-half percent (0.5%) is the survivor contribution portion) for all City employees who were LACERS members as of the ERIP Beginning Date (including those in the Defrayal Group). However, the City reserves the right to increase the LACERS active employee retirement contribution rate for new City hires, in accordance with all applicable laws and practices.

(10) In order for the ERIP to meet its goal of assisting with the City’s financial situation, the City intends to limit the backfilling of positions vacated due to retirements under the ERIP. Therefore, to the extent allowed under the City Charter, the Los Angeles Administrative Code, and any other applicable law: From July 1, 2009, to June 30, 2024, approval of both City Council and the Office of the Mayor shall be necessary prior to backfilling a position vacated due to retirements under the ERIP. The total number of City positions vacated due to retirements under the ERIP shall not be backfilled by more than seven (7%) in the City fiscal year 2010, nor by more than six percent (6%) in each of the City fiscal years 2011 through 2024. These backfill rates may be exceeded only if the cumulative prior years’ actual backfill rate was less than the maximum cumulative rate allowed, pursuant to the Maximum Backfill Rates table below. For example, if the City backfills only five percent (5%) in fiscal year 2010, then the City’s allowed backfill rate in a future year may be increased.

MAXIMUM BACKFILL RATES

MAXIMUM BACKFILL RATES

(11) The ERIP shall not affect the existing LACERS requirement that, in order for a LACERS member to leave a continuance to a spouse or domestic partner, the marriage must have occurred, or the proper domestic partnership document(s) must have been filed with LACERS or with the State of California, at least one (1) year prior to the LACERS member’s effective date of retirement.

(12) Persons retiring under the ERIP shall be eligible to be employed by the City under the conditions set forth in City Charter Section 1164. However, persons retiring under the ERIP shall not be allowed to enter into a personal services contract with the City prior to July 1, 2011, unless the personal services contract is approved by City Council and the Office of the Mayor.

(b) Persons retiring pursuant to the ERIP shall receive benefits pursuant to the following terms. (For purposes of the ERIP, “Service” and “Service Credit” shall have the same meanings as those terms are defined in Los Angeles Administrative Code Section 4.1001.):

(1) “Group 1” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP Beginning Date, would be eligible for an unreduced or standard retirement with less than thirty-three (33) years of Service.

(i) Each Group 1 member retiring under the ERIP shall receive three (3) additional full-time years of Service and three (3) additional full-time years of Service Credit.

(2) “Group 2” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP Beginning Date, have a minimum of thirty-three (33) years of Service, but have not reached fifty-five (55) years of age.

(i) Each Group 2 member retiring under the ERIP shall receive the additional amount of age credit necessary to be eligible for an unreduced or standard retirement. In addition, each Group 2 member retiring under the ERIP shall receive three (3) additional full-time years of Service and three (3) additional full-time years of Service Credit.

(3) “Group 3” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP Beginning Date, have less than thirty-three (33) years of Service and who are within five (5) years of the age credit and/or Service necessary to be eligible for an unreduced or standard retirement. To be a member of Group 3, the amount of time that a LACERS member is lacking in age credit to be eligible for an unreduced or standard retirement, plus the amount of time that the member is lacking in Service to be eligible for an unreduced or standard retirement, must, in sum, not exceed five (5) full-time years.

(i) Each Group 3 member retiring under the ERIP shall receive between a minimum of three (3) full-time years and a maximum of five (5) full-time years of additional age credit and/or both Service and Service Credit in order to be eligible for an unreduced or standard retirement. Between three (3) full-time years and five (5) full-time years, fractional years shall be calculated and prorated in determining the amount of additional age credit and/or both Service and Service Credit to be received.

(ii) Each Group 3 member retiring and receiving credit under the ERIP shall be provided with a written breakdown of the amount of age credit, and both Service and Service Credit.

(4) “Group 4” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP Beginning Date, have a minimum of thirty-three (33) years of Service and have reached a minimum of fifty-five (55) years of age.

(i) Each Group 4 member retiring under the ERIP shall receive a Separation Payment of $1,000.00 for each year of Service. The Separation Payment for a fractional year shall be prorated. This Separation Payment shall not be considered a retirement benefit. This Separation Payment shall be paid by the City, which shall recoup the cost of the Separation Payment from the LACERS members as set forth above in Sections 4.1033(a)(9)(i)-(iii).

(ii) Any time purchased under Los Angeles Administrative Code Section 4.1020 (GSB) shall not be included in the calculation of the Separation Payment for Group 4 members. Any reciprocal time under Los Angeles Administrative Code Section 4.1096 shall not be included in the calculation of the Separation Payment for Group 4 members. Any time purchased under Los Angeles Administrative Code Section 4.1019 (PSB) shall not be included in the calculation of the Separation Payment for Group 4 members.

(5) “Group 5” LACERS members: This group consists of all full-time and part-time LACERS members whose first day of City employment was on or before December 31, 1982; whose retirement contribution rate is less than six percent (6%); and who, as of the ERIP Beginning Date, are not within five (5) years of the age and/or Service necessary to be eligible for an unreduced or standard retirement.

(i) Each Group 5 member retiring under the ERIP shall receive five (5) additional full-time years of Service and five (5) additional full-time years of Service Credit towards an early or reduced retirement.

(ii) The ERIP does not affect the retirement benefit reduction factors that apply to early or reduced retirements.

(6) Members of Groups 1, 2, 3, and 5 retiring under the ERIP shall each receive a Separation Payment of $15,000.00. This Separation Payment shall not be considered a retirement benefit. This Separation Payment shall be paid by the City, which shall recoup the cost of the Separation Payment from the LACERS members as set forth above in Sections 4.1033(a)(9)(i)-(iii).

(c) The following provisions and limitations shall apply to the ERIP benefits set forth above in Section 4.1033(b):

(1) Any additional age credit provided under the ERIP shall be applied towards the fifty-five (55)-year minimum age requirement for LACERS retiree health subsidies. Any applicable additional Service and/or Service Credit provided under the ERIP shall count toward the retiree health subsidy formula. ERIP Group 5 members are not guaranteed eligibility for any LACERS retiree health subsidies.

(2) A person retiring under the ERIP whose applicable ERIP Group changes between the ERIP Beginning Date and the person’s effective date of retirement shall select the Group to which the person wishes to belong (that is, either the person’s applicable Group as of the ERIP Beginning Date, or the person’s applicable Group as of the person’s effective date of retirement).

(3) A person retiring under the ERIP who belongs to a certain ERIP Group due to the purchase of GSB time may attempt to change the person’s Group by requesting a refund of the GSB time purchased, provided that the request for refund is consistent with existing GSB program policies. To change Groups in this manner, the request for refund must be approved by LACERS prior to the person’s effective date of retirement.

(4) A person’s ERIP service retirement allowance may never exceed the person’s Final Compensation as defined in Section 4.1001. This provision is intended to comport with Section 4.1007(c).

(5) A person eligible under the GSB program to purchase time due to service in another government agency shall be allowed to apply the purchased time towards additional Service Credit under an ERIP retirement. For the purchased GSB time to be applied towards additional Service Credit, the person must follow the existing GSB purchasing policies, and must have completed the GSB purchase prior to the person’s effective date of retirement. This section is not meant to supersede or otherwise affect Section 4.1033(b)(4)(ii), above, which provides that any time purchased under the GSB program shall not be included in the calculation of the Separation Payment for Group 4 members.

(6) The ERIP does not extend any deadlines for purchasing Service Credit under any Service Credit purchase programs, including GSB, PSB, Back Contributions, and Re-deposits. All such purchases must be paid off prior to the LACERS member’s effective date of retirement.

(7) If a person is approved by the CAO’s office for retirement under the ERIP, but the person dies prior to the person’s effective date of retirement, the person’s eligible spouse, as defined in former Section 4.1044(a), or qualified domestic partner, as defined in former Section 4.1044.4, if any, shall be entitled to survivorship benefits as if the person retired under the ERIP with one hundred percent (100%) continuance to the person’s survivor.

(8) Any benefit payable pursuant to the ERIP is subject to the requirements and limitations applicable to benefits payable from a qualified governmental pension plan under Internal Revenue Code (Code) Sections 401(a) and 414(d), and the regulations and guidance issued under those Code sections. Therefore, any ERIP benefits may be adjusted, as necessary, to maintain the tax qualified status of LACERS.

(9) To work toward the ERIP being cost-neutral to the City, an “ERIP 1% Reduction” shall apply to all ERIP Eligible Filers actually retiring under the ERIP and all Grandfathered Participants actually receiving the ERIP benefits (with the exception of ERIP Group 4 members, as noted below). The ERIP 1% Reduction means that, for each ERIP Eligible Filer actually retiring under the ERIP and each Grandfathered Participant actually receiving the ERIP benefits, such person’s entire retirement allowance, including the ERIP benefits, shall be reduced by 1%. The formula for calculating such a person’s actual retirement allowance shall be: The person’s full retirement allowance, including ERIP benefits (that is, the person’s full retirement allowance, including the ERIP benefits, before the ERIP 1% Reduction) multiplied by 0.99. For example, for Groups 1, 2 and 3, the person’s actual retirement allowance shall be:

[Final Compensation x Service Credit x Retirement Factor of 0.0216] x 0.99

For Group 5, the person’s actual retirement allowance shall be:

[Final Compensation x Service Credit x Retirement Factor of 0.0216] x [Reduction Factor] x 0.99. The Reduction Factor is the standard LACERS Early Retirement Reduction Factor.

The ERIP 1% Reduction shall not apply to members of ERIP Group 4.

(d) Unless otherwise specified, the provisions in the City Charter and the Los Angeles Administrative Code pertaining to LACERS shall not be affected by the ERIP.

(e) It is the intent of the City and the LACERS Unions that the ERIP be envisioned as cost-neutral to the City. The increase in the employee retirement contribution rate and the elimination of defrayal (Sections 4.1033(a)(9)(i)-(ii) above), along with the ERIP 1% Reduction (Section 4.1033(c)(9) above), are mechanisms designed for working toward cost-neutrality.

(f) If the government of the United States or a final court of competent jurisdiction determines that one or more provisions of this Chapter pertaining to the ERIP are unlawful or invalid, the remaining provisions shall remain in full force and effect.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Wherever “SIP” is used in this Chapter, it shall refer to the Separation Incentive Program. The intent of the City in promulgating the SIP is to address the City’s significant financial challenges while minimizing the impact on City services, by incentivizing eligible employees to retire. The SIP is not a retirement benefit. Under no circumstances shall the SIP payments made by the City be considered in any calculation of a retirement benefit or division of a LACERS member’s retirement benefit. Rather, the SIP is a program whereby the City, as employer, has agreed with certain bargaining units to provide two lump-sum, non-pensionable incentive payments to those LACERS members who are eligible for a Full LACERS retirement and who the Office of the City Administrative Officer (CAO), in its sole discretion, has determined to have met all requirements of the SIP program (SIP Eligible Filers). The following provisions and limitations shall apply to the processing of retirement applications by LACERS under the SIP:

(b) To minimize the impact on City services, a SIP Eligible Filer who elects to retire under the SIP may not select their effective date of retirement. Instead, in order to effectuate the City’s intent to assist the City’s financial situation while minimizing the impact on City services, the LACERS General Manager or their designee (LACERS Management) shall determine the effective date of retirement for a person retiring under the SIP.

(1) The portion of Los Angeles Administrative Code Section 4.1005 stating that a person’s effective date of retirement shall be not less than thirty (30) nor more than sixty (60) days from and after the filing of the person’s LACERS retirement application shall not apply to persons retiring under the SIP.

(2) LACERS Management's decision as to a person’s effective date of retirement under the SIP shall be final and binding, regardless of whether the SIP Eligible Filer agrees with LACERS Management’s decision. The SIP Eligible Filer may be required to retire as soon as administratively possible, or may be required to continue working for the City for a longer period of time. The CAO may promulgate rules that LACERS Management shall follow regarding the effective dates of retirement for SIP Eligible Filers. Such rules shall be determined solely by the CAO, based on the City’s intent to minimize the impact on City services and maximize the ability of the SIP to address the City’s financial challenges.

(c) The three-month period from November 1, 2020, through and including January 31, 2021, shall be referred to herein as the “SIP Period”. During the SIP Period, LACERS shall not accept a non-SIP retirement application from a person eligible for Full Retirement or Early Retirement After the SIP Period has expired, any LACERS member who is otherwise eligible to retire may apply to retire, and LACERS shall accept and process new non-SIP retirement applications pursuant to standard, non-SIP LACERS procedures and provisions.

(1) All applications for non-SIP LACERS retirements previously submitted to LACERS by persons eligible for Full Retirement or Early Retirement, and still pending as of the beginning of the SIP Period, shall be held in abeyance for the duration of the SIP Period. After the SIP Period has expired, LACERS shall continue to process previously submitted non-SIP retirement applications pursuant to standard, non-SIP LACERS procedures and provisions.

(d) Notwithstanding any other provision of the City Charter or Los Angeles Administrative Code, a SIP Eligible Filer who elects to participate in the SIP may not withdraw from LACERS their application to retire under the SIP after the time when their SIP agreement with the CAO becomes final. A SIP Eligible Filer’s SIP agreement is final if it is not rescinded before 3:00 p.m. on the seventh business day after the SIP Eligible Filer submitted it to the CAO, and, for SIP applicants submitting their applications on or before August 3, 2020, if it is not rescinded before the additional rescission period ending at 3:00 p.m. on September 10, 2020.

SECTION HISTORY

Added by Ord. No. 186,765, Eff. 9-23-20.