Los Angeles County Municipal Code Part 1 General Provisions

The County of Los Angeles, pursuant to the order of its Board of Supervisors, adopted the "County of Los Angeles Termination Pay Pick Up Plan" (the "Plan"), effective as of December 3, 2004. The Plan is designated a profit sharing plan and is intended to qualify under Code section 401(a).

The Plan was designed to allow Participants to contribute a portion of their Termination Pay to the Plan and have the County pick up such contributions as provided in Code section 414(h)(2), for the purpose of providing retirement and death benefits to Participants.

Benefits under the Plan shall at all times be limited to those payable from a Participant's account to the extent funded by contributions that have been made and credited to such account. Pursuant to the order of its Board of Supervisors, the Plan is terminated effective as of November 14, 2017. On and after that date, all Participant Accounts shall be distributed as soon as administratively practical in accordance with Section 5.18.450 and, if applicable, Section 5.18.220.

(Ord. 2017-0047 § 1, 2017: Ord. 2004-0063 § 1 (part), 2004.)

The following terms when used herein with initial capital letters, unless the context clearly indicates otherwise, shall have the following respective meanings:

"Account" means the account established by the Trustee for each Participant pursuant to Part 4 to which each Termination Contribution, as well as any earnings, investment gains or losses, and applicable expenses allocated thereto, is applied.

"Administrative Committee" means a committee consisting of the same individuals (including alternates) that serve on the administrative committee for the County of Los Angeles Deferred Compensation and Thrift Plan. The Administrative Committee for the Plan shall meet jointly with the administrative committee for the Deferred Compensation and Thrift Plan. The Administrative Committee shall be the administrator of the Plan, and may delegate all or part of its powers, duties, and authority in such capacity (without ceasing to be the administrator of the Plan) as hereinafter provided.

"Administrator" or "Plan Administrator." The Administrator of the Plan, as defined in Code section 414(g), shall be the Administrative Committee, which may delegate all or any part of its powers, duties and authorities in such capacity (without ceasing to be the Administrator of the Plan) as hereinafter provided.

"Agent" means any agent duly authorized to perform specified duties by its respective principal.

"Alternate Payee" means any spouse, former spouse, child or other dependent of a participant who is recognized by a QDRO as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such Participant.

"Beneficiary" means such person or persons as a Participant may designate to receive his interest under the Plan after his death. The designation may be made, and may be revoked or changed, only by a written instrument (in form acceptable to the Administrative Committee) signed by the Participant and filed with the Administrative Committee before his death. In the absence of a designation and at any other time when there is no existing Beneficiary designated by the Participant, his Beneficiary shall be his spouse, if living 30 days after the date of his death, or, if not, his children (by blood or adoption) equally (with children of a deceased child to share equally the share of such deceased child). If a Beneficiary cannot be determined pursuant to the preceding sentence, the Beneficiary shall be the Participant's estate.

"Board" means the Board of Supervisors of the County of Los Angeles.

"Code" means the Internal Revenue Code of 1986, as amended.

"County" means the County of Los Angeles and any Participating Employer, unless otherwise provided herein. In addition, for the purposes of determining 415 Compensation and applying the limitations under Code section 415(c), the "County" includes any entity the employees of which, together with employees of the County of Los Angeles or a Participating Employer (as applicable), are required to be treated as if they were employed by a single employer under Code section

414(b), (c), (m) or (o) (taking into account any adjustment made pursuant to Code section 415(h)), and any entity whose employees are treated as employees of the County under Code section 414(n).

"Discretionary Trustee" means a Trustee who, under the terms of the Trust Agreement, has the discretionary authority to invest the Plan assets in one or more Investment Funds.

"Effective Date" means [___________], 2004.

"Eligible Employee" means an Employee (i) who is within an employment classification established by the Board, (ii) who is not a Leased Employee, (iii) who is not eligible to participate in the "County of Los Angeles Savings Plan," as set forth in Chapter 5.26 of the Los Angeles County Code, and (iv) to whom eligibility to participate in this Plan has been extended pursuant to a memorandum of understanding or other authorization approved by the Board.

"Eligible Retirement Plan" means: (i) an individual retirement account under Code section 408(a); (ii) a "conduit" individual retirement account described in Code section 408(d)(3)(A)(ii); (iii) an individual retirement annuity under Code section 408(b); (iv) an annuity plan described in Code section 403(a); (v) a plan which is qualified under Code section 401(a); (vi) a tax- sheltered annuity contract under Code section 403(b); and (vii) an eligible deferred compensation plan under Code section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

"Eligible Rollover Distribution" means any distribution of all or part of the balance of an Account to the credit of the Participant in an Eligible Retirement Plan, except for the following:

a.

Any distribution which is one of a series of substantially equal periodic payments made not less frequently than annually for the life (or life expectancy) of the Participant or Beneficiary or the joint lives (or joint life expectancies) of such individual and his designated Beneficiary, or for a specified period of 10 years or more;

b.

Any distribution to the extent such distribution is required by Code section 401(a)(9);

c.

Any distribution which is (a) a return of a portion or all of a Termination Contribution as provided in section 1.415-6(b)(6)(iv) of the Treasury Regulations which is returned due to the limitations under Code section 415, (b) a dividend on employer securities described in Code section 404(k), (c) the P.S. 58 cost of life insurance coverage, or (d) any other similar item designated by the Commissioner of Internal Revenue.

"Employee" means any person who: (a) has been determined by the County (regardless of any determination made by any other person or entity) to be an employee of the County within the meaning of Code section 3401(c) for federal income and/or employment tax purposes; or (b) is a Leased Employee as defined in subsection 22 of this Part. If it is determined that an individual was erroneously categorized as not being an Employee, he or she shall be treated as an Employee under the Plan only prospectively from the date of such determination.

"415 Compensation" means wages, within the meaning of section 3401(a) of the Code (for purposes of income tax withholding), but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed, paid to an Employee by the County. 415 Compensation includes:

a.

Any elective "tax deferred contributions" under the County of Los Angeles Savings Plan and any other County contribution under a cash or deferred arrangement for the year;

b.

Any County contributions to purchase an annuity contract under Code section 403(b) under a salary reduction agreement;

c.

Any other elective deferral (as defined in Code section 402(g)(3));

d.

Any amount that is contributed to a plan sponsored by the County at the election of the Employee and which is not includible in gross income under Code section 125, and any amount that would be available in cash to an Employee under the Choices, Options, Flexible Benefit Plans or Mega-Flex Plans (or a successor plan) if he or she waived health coverage under such plan;

e.

Any amount that is contributed to the County of Los Angeles Deferred Compensation and Thrift Plan, the County of Los Angeles Pension Savings Plan or another plan sponsored by the County at the election of the Employee and which is not includible in gross income under Code section 457; and

f.

Any amounts that are not includible in the gross income of the Employee by reason of Code section 132(f)(4).

"Investment Fund" means any investment vehicle in which the Plan assets are invested. Any such Investment Fund shall be consistent with any limitations on forms of investment imposed under applicable State law.

"Investment Manager" means a person or entity appointed by the Administrative Committee or by the Trustee if, under the Trust Agreement, the Trustee is a Discretionary Trustee, who, with respect to an Investment Fund, has the discretion to determine which assets in such Fund shall be sold (or exchanged) and what investments shall be acquired for such Fund or a person or entity that provides investment services to an investment company registered under the Investment Company Act of 1940. Any Investment Manager must be either registered as an investment adviser under the Investment Advisers Act of 1940, a bank as defined thereunder or an insurance company qualified to manage, acquire or dispose of Plan assets under the laws of more than one state, provided, however, that this requirement shall not apply to the County Treasurer and, with respect to an Investment Fund that provides for investments in securities issued by an investment company registered under the Investment Company Act of 1940, the requirements of that act shall control. Any Investment Manager shall accept such appointment in writing and shall constitute a fiduciary with respect to the investment of Plan assets held in the particular Investment Fund for which the appointment applies, unless such person would not be treated as investing assets of the Plan if the Plan was covered by the Employee Retirement Income Security Act of 1974, as amended.

"Involuntary Early Severance" means a Participant's severance from County employment less than 90 days after execution of a Payroll Deduction Authorization Agreement due to death, disability, layoff or other events that the County determines are beyond the control of the Participant.

"LACERA" means, collectively, the Los Angeles County Employees' Retirement Association and the defined benefit retirement plan administered thereby.

"LA Superior Court" means the Superior Court of California, County of Los Angeles.

"Leased Employee" means any person who is not an employee of the County and who provides services to the County if (i) such services are provided pursuant to an agreement between the County and any other person, (ii) such person has performed such services for the County on a substantially full-time basis for a period of at least one year, and (iii) such services are performed under primary direction or control by the County.

"Participant" means an Eligible Employee who has become and continues to be a Participant in the Plan in accordance with the provisions of Part 2.

"Participating Employer" means (a) any governmental entity of which the Board is the governing body, and (b) the LA Superior Court to the extent participation in the Plan by the LA Superior Court is authorized by state law or rules of court and unless the LA Superior Court has elected not to participate in the Plan.

"Payroll Deduction Authorization Agreement" means the one-time, binding and irrevocable agreement by which an Eligible Employee elects to make a Termination Pay Contribution to the Plan, that satisfies the requirements specified in Section 5.18.080.

"Plan" means the County of Los Angeles Termination Pay Pick Up Plan, the terms and provisions of which are herein set forth, as the same may be amended, supplemented or restated from time to time.

"Plan Year" means a calendar year.

"QDRO" means a "qualified domestic relations order," which is a domestic relations order that the Administrative Committee has determined satisfies the requirements of a qualified domestic relations order as defined in Code section 414(p)(1) and is consistent with the terms of this Plan.

"Qualified Plan" means an employee benefit plan that is qualified under section 401(a) of the Code.

"Represented Employee" means any Employee in a bargaining unit represented by an employee organization certified by the County Employee Relations Commission.

"Required Beginning Date" means the date described in Section 5.18.180 of the Plan.

"Severance Date" means the date upon which an Eligible Employee terminates employment with the County for any reason.

"Termination Pay" means the amount paid to a Participant upon termination of County employment as a redemption of unused accrued benefits as provided in Los Angeles County Code Section 6.24.040A or as leaving vacation described in County Code Section 6.18.070 (these accrued benefits commonly referred to as "Time Certificates"). The Termination Pay taken into account for all purposes under the Plan shall be limited in accordance with Code section 401(a)(17).

"Termination Pay Contribution" means a contribution made by an Eligible Employee pursuant to an Payroll Deduction Authorization Agreement, as specified in Section 5.18.080.

"TPA" means a third-party administrator who has entered into a contract with the County to provide record-keeping services, employee communication services, claims administration services or other similar services. Alternatively, the County may act as the "TPA" to provide these services.

"Trial Court Act" means the Trial Court Employment Protection and Governance Act, California Government Code Section 71600 et seq.

"Trial Court Employee" means a "trial court employee," as defined under the Trial Court Act, who is an Employee of the LA Superior Court.

"Trust Agreement" means the agreement(s) executed by the County and a Trustee which establishes either a trust fund or custodial account to provide for the investment, reinvestment, administration and distribution of contributions made under the Plan and the earnings thereon, as amended from time to time.

"Trust Fund" means the assets of the Plan held by the Trustee pursuant to the Trust Agreement.

"Trustee" means the one or more persons or entities who have entered into a Trust Agreement as a trustee or custodian, and any duly appointed successor. For these purposes, the custodian of any custodial account created for the purposes of holding Plan assets must be a bank, as described in Code section 408(n), or a person who meets the nonbank trustee requirements of paragraphs (2) through (6) of Section 1.408-2(e) of the Income Tax Regulations relating to the use of nonbank trustees. To the extent consistent with applicable law, the County Treasurer may serve as the Trustee. The Trustee may be a Discretionary Trustee.

"Valuation Date" means the date with respect to which the value of the Plan assets or any portion thereof is determined. Unless otherwise determined by the Administrative Committee, a Valuation Date occurs each day.

(Ord. 2014-0040 § 1, 2014; Ord. 2004-0063 § 1 (part), 2004.)

A.

Generally. Notwithstanding the general definition of County in Part 1, Section 5.18.020, with regard to rights and obligations related to the design, amendment, termination or administration of the Plan, including but not limited to those set forth in Parts 7, 8 and 10, the term "County" shall refer exclusively to the County of Los Angeles, and each Participating Employer shall be bound by the actions of the County of Los Angeles.

B.

LA Superior Court. If the LA Superior Court does not elect out of participating in this Plan, it will be treated as a separate Participating Employer in the Plan and any Payroll Deduction Authorization Agreement executed by a Trial Court Employee shall be between such Trial Court Employee and the LA Superior Court, and any Termination Pay Contribution made to the Plan on behalf of such Trial Court Employee shall be paid out of the budget of the LA Superior Court.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

Unless the context otherwise indicates, the masculine wherever used herein shall include the feminine and neuter, the singular shall include the plural and words such as "herein," "hereof," "hereby," "hereunder," and words of similar import refer to the Plan as a whole and not to any particular part thereof.

B.

Where headings have been supplied to portions of the Plan they have been supplied for convenience only and are not to be taken as limiting or extending the meaning of any of its provisions.

C.

Wherever the word "person" appears in the Plan, it shall refer to both natural and legal persons.

D.

Except to the extent federal law controls, the Plan shall be governed, construed and administered according to the laws of the State of California. All persons accepting or claiming benefits under the Plan shall be bound by and deemed to consent to its provisions.

(Ord. 2004-0063 § 1 (part), 2004.)