Los Angeles County Municipal Code Ch. 5.20 Retirement

The board of supervisors of the county of Los Angeles, state of California, accepts the provisions of an Act of the Legislature of the state of California, entitled "An act to provide for the creation, establishment, and adjustment with other systems, of a retirement system for employees of the several counties and districts as defined herein, and attaches of municipal courts, consisting of retirement compensation and death benefits," approved June 30, 1937, being Chapter 677 of the Statutes of 1937, and said board of supervisors does hereby, by reference adopt and incorporate all and every one of the provisions of said Act of the Legislature as a part of and applicable to, and make all and every one of said provisions a part of and applicable to, the system and schedules of compensation of all officers and other persons employed by the county whose compensation is fixed by the board of supervisors of the county and whose compensation is paid by the county, and all employees and officers of the county of Los Angeles now or hereafter established by ordinance of the board of supervisors, who are or may hereafter be eligible to the benefits of any retirement system under the provisions of said Act.

(Ord. 3008 § 1, 1937.)

County retirement benefits shall include, but not be limited to:

A.

Benefits provided under the county of Los Angeles thrift plan and the county of Los Angeles savings plan contained in Chapters 5.25 and 5.26 of this code, respectively;

B.

Benefits provided under Sections 5.20.070 and 6.18.070 of this code.

(Ord. 84-0112 § 8, 1984.)

Pursuant to Section 31874 of the Government Code, the board of supervisors adopts and makes applicable to the County Employees Retirement System of the county of Los Angeles Article 16.5 (beginning with Section 31870) of Chapter 3 (the County Employees Retirement Law of 1937) of Part 3 of Division 4 of Title 3 of the Government Code, to be effective on July 1, 1966.

(Ord. 9083 § 1, 1966.)

Pursuant to Section 31874 of the Government Code, the board of supervisors adopts and makes applicable to the County Employees Retirement System of the county of Los Angeles Article 16.5 (beginning with Section 31870) of Chapter 3 of Part

3 of Division 4 of Title 3 of the Government Code, as amended by Stats. of 1967, Chapter 45, and more particularly including Section 31 870.1 therein, to be effective on July 1, 1968.

(Ord. 9491 § 1, 1968.)

A.

Pursuant to Section 31874 of the Government Code, the board of supervisors adopts and makes applicable to the County Employees Retirement System of the county of Los Angeles Article 16.5 (beginning with Section 31870) of Chapter 3 of Part 3 of Division 4 of Title 3 of the Government Code, as amended, and more particularly including Section 31870 therein, to be effective on September 1, 1977, as to persons who become members of the Los Angeles County Employees Retirement Association on or after said date.

B.

Ordinance 9491 (set out in Section 5.20.030), adopted January 2, 1968, shall remain in full force and effect as to persons who were or who became members of the Los Angeles County Employees Retirement Association between the dates of July 1, 1968, and August 1, 1977, inclusive.

C.

It is the intent of the Board of Supervisors in adopting Ordinance 11563 that the provisions of Government Code Section 31870.1 shall be applicable to all persons who were or who became members of the Los Angeles County Employees Retirement Association between the dates of July 1, 1968, and August 1, 1977, inclusive, and that the provisions of Government Code Section 31870 shall be applicable to all persons who become members of said association on or after September 1, 1977.

(Ord. 11563 §§ 1—3, 1977.)

Pursuant to Sections 31681.51 and 31739.31 of the Government Code, the board of supervisors adopts and makes applicable to the County Employees Retirement System of the county of Los Angeles the said Sections 31681.51 and 31739.31 of the Government Code, to be operative on February 1, 1971.

(Ord. 10180 § 1, 1971.)

The provisions of Section 31558.1 of the California Government Code shall be applicable in the county of Los Angeles from and after March 14, 1975, the effective date of the ordinance codified in this section, and members of the Los Angeles County Employees' Retirement Association who qualify under said Section may elect to become safety members of the Association upon payment of the contributions and interest required by Section 31558.1.

(Ord. 11082 § 1, 1975.)

A.

Purpose. Pursuant to a finding of the board of supervisors that it is in the best interest of the county of Los Angeles to streamline its organizational structure and to reduce the workforce without layoffs, there is hereby established an early separation program, which includes either additional retirement credit as provided for in Government Code Section 31641.04 or an alternative severance payment as provided in subsection C of this section.

B.

Adoption of Government Code Section 31641.04. Pursuant to subsection (e) of Section 31641.04 of the Government Code, the board of supervisors adopts and makes applicable in the county of Los Angeles the provisions of Government Code Section 31641.04, the said section to be operative on and after March 4, 1984, the effective date of the ordinance codified in this section, but shall be implemented by resolution only after a determination of cost effectiveness is made by the Chief Executive Officer pursuant to subsection D of this section.

C.

Early Separation Alternative Pay. Any person whose position is authorized by resolution of the board of supervisors to be vacated under the early separation program and who terminates county service during the period designated by the board shall be eligible to receive payment for 60 percent of the sum of one month's base salary plus the monthly amount of such other compensation provided by Titles 5 and 6 of the County Code as the Chief Executive Officer in his discretion may elect for each two years of creditable service toward county retirement, to a maximum of 24 years' service. In no event shall a person receive payment pursuant to this section if he elects to receive additional retirement benefits pursuant to Government Code Section 31641.04. Persons may elect at the time of termination to receive severance payments, as provided in this section, in one of the following manners:

Receive payment on a prorated basis up to a maximum of 24 months;

Receive a single lump-sum payment at time of termination;

Receive lump payments at any previously designated time within 24 months following separation from county service.

D.

Application. The board of supervisors may by resolution make applicable an early separation program to specific positions after:

The department head has developed and submitted a program plan to the Chief Executive Officer identifying the specific positions that should be designated as eligible for such program and the positions to be frozen and/or eliminated to cover the program's cost; and

The Chief Executive Officer makes a determination that such a plan will be cost effective and consistent with board policies.

(Ord. 2011-0066 § 12, 2011: Ord. 91-0044 § 2, 1991; Ord. 84-0011 § 1, 1984: Ord. 83-0145 § 1, 1983 [readopted 10/18/83].)

A.

Savings Estimates. In developing the early separation program plan required by subsection D of Section 5.20.070, department heads shall specify the number of currently budgeted management positions in their department and the number of such positions to be targeted for elimination upon activation of the early separation plan. The chief administrative officer shall report the potential annual savings of such elimination to the board of supervisors at the time they adopt the early separation program resolution for such department.

B.

Distribution of Savings. At the time the board adopts the resolution specified in subsection D of Section 5.20.070, it shall provide that the net savings of the early separation program effected in each department shall be appropriated, encumbered and used solely for the purposes designated in the ordinance codified in this section.

C.

Incentive Payments. The board shall consider the encumbered savings of each department and designate the portion of such savings to be paid to the department head and the portion the department head may allocate among subordinate managers. Any remaining balance shall be appropriated for current operation of the department. In determining such distribution, the board, and in the case of subordinate managers, the department head, shall consider the contribution made by each manager to the department meeting its public service demands and responding to established priorities within board- adopted appropriations and his/her added responsibilities due to reduction in the management workforce. Except in the case of departments headed by an elected official, no manager may receive as an incentive payment a greater percentage of his/her base salary than that authorized by the board for his/her department head. In departments headed by an elected official, the board shall establish a maximum percentage of base salary which can be provided as a bonus to managers. Payment authorized by this section may be in lump sums or up to 24 monthly payments in accordance with the determination of the department head.

(Ord. 84-0011 § 2, 1984: Ord. 83-0203 § 2, 1983; Ord. 83-0145 § 3, 1983 [readopted 10/18/83].)

A.

Purpose. The board of supervisors finds that it is in the best interest of the county to reduce the workforce to deal with an impending fiscal shortfall. To help achieve this goal, an alternative severance pay plan is hereby established which provides to participants severance payments which continue for a specified period of time after separation from county service.

B.

Definitions. As used in this section:

"Appointing Authority" means the head of the department or his or her designee.

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

"Class" means a classification or group of classifications aggregated pursuant to paragraph 1 of subsection D.

"Election Window" means the period established by the Board during which an Eligible Employee must Separate from Service to receive the benefits provided by the Plan.

"Eligible Employee" means any represented or nonrepresented permanent employee who attains a minimum of 10 years of Retirement Service Credit prior to Separation From Service, and who encumbers a position in a Class as defined above:

a.

which has been eliminated, or;

b.

that is designated for reduction in rank or grade, or;

c.

that would be impacted by the cascading effect created by the elimination of a higher level position, or;

d.

that is no more than one level above the eliminated position; or a position normally in the promotional line but compensated no higher than 10 percent above the eliminated position, provided that use of this qualification shall be limited to 20 percent of the eliminated positions.

"ESP Position" means the opportunity for one Eligible Employee as defined in paragraph 5 to participate in the Plan due to the elimination of one position or due to the demotion of or reduction in rank of an employee if such demotion or reduction is in lieu of eliminating a position. An eliminated position is any position that was in the fiscal year 1991-92 budget that is deleted by action of the Board to conform to the fiscal year 1992-93 State budget or any position in the County's fiscal year 1992-93 Budget that is deleted by action of the Board to conform to the fiscal year 1993-94 State budget; however, an eliminated position which would not result in the lay off or reduction of an employee is not an "ESP Position."

"ESP Volunteer" means an Eligible Employee who expresses interest in participating in the Plan pursuant to paragraph 3 of subsection D.

"Participant" means an Eligible Employee who separates from service and qualifies to receive benefits under this Plan after meeting all of the requirements of this section.

"Plan" means the Alternative Severance Pay Plan established by this section.

"Retirement Service Credit" means retirement service credited to the Participant by LACERA.

"Separation from Service" and "Separate from Service" mean the termination from county employment as of the date required by this ordinance or a resolution providing for additional Election Windows.

C.

Election Windows.

Initial Election Window. An Eligible Employee may elect to participate in the Plan by submitting on or before January 15, 1993, a written agreement meeting the requirements specified in subsection E below and requiring the employee to separate from service on or before the foregoing date. This Initial Election Window is implemented for the purpose of reducing County expenditures required by the adoption of the Fiscal Year 1992-1993 State Budget.

Contingent Election Window. If the Board finds that the budget adopted by the State for fiscal year 1993-1994 requires a reduction of County positions, an additional Election Window commencing on September 1, 1993 and ending on January 31,

1994, may be implemented by resolution adopted by the Board during which time an Eligible Employee may agree to participate in the Plan pursuant to subsection E. The resolution shall specify the dates within which the employee's Separation from Service must occur, and shall provide for the severance payments required by subsection F to be made with appropriate year adjustments in the schedule set forth in subsection G.

Additional Election Windows. Additional Election Windows during which an Eligible Employee may agree to participate in the Plan pursuant to subsection E may be implemented by resolution adopted by the Board if the Board finds that further reduction in County positions is required due to further reductions in County revenues resulting from Federal or State Legislative actions or unanticipated reductions in County revenues. The resolution shall specify the dates within which the employee's Separation from Service must occur, and the date on which the payments specified in subsection F shall begin.

D.

Plan Administration. Each Appointing Authority shall administer the Plan for each Election Window established by the Board in accordance with the procedures set forth in this subsection.

List of ESP Positions. The Appointing Authority shall submit to the Chief Administrative Officer a statement setting forth the number of positions by class to be eliminated from the department. In submitting the statement, the Appointing Authority may aggregate related classes into groups specifying the classes and number of positions in each group for the purpose of broadening eligibility under the Plan. The Appointing Authority shall make available one ESP Position for each position to be eliminated. Such position may not be refilled without specific Board approval.

Notice to Employees. Within fourteen days after adoption of the initial Election Window, all Appointing Authorities shall provide notice to all employees of their departments soliciting Eligible Employees to participate in the Plan. The same notice shall be given to employees in future Election Windows, except that such notices may be restricted to Eligible Employees on a County-wide basis.

Expression of Interest by ESP Volunteers. Each Eligible Employee interested in participation in the Plan shall, within thirty days after receiving the notice provided for in paragraph 2 of this subsection, notify the Appointing Authority in writing of his or her desire to participate in the Plan.

Participation in Plan. Each Eligible Employee who entered into an agreement to participate in the alternative severance pay plan in effect prior to the effective date of the ordinance adding this paragraph shall be allocated an ESP Position. If the number of Eligible Employees in each Class volunteering to participate in the Plan is equal to or less than the number of remaining ESP Positions available for the same class in the department, each volunteer in that Class shall be allowed to participate in the Plan.

Swapping procedure. The purpose of this Plan is to minimize the number of layoffs that may be required as a result of budget cuts. Therefore, it should be administered to this purpose. Specifically,

a.

The Appointing Authority shall make the Plan available to all Eligible Employees in the department.

b.

Departments with more ESP Volunteers than ESP Positions in any Class shall recruit persons of the same Class from departments that have potential layoffs in that Class in excess of their ESP Volunteers.

c.

If at least five Qualified Candidates in the same Class exist in departments as defined in subparagraph b above, departments with an excess ESP Volunteer in that Class shall hire one of the Qualified Candidates and transfer the excess ESP Volunteer to the hired employee's former department.

d.

For purposes of this paragraph 5, "Qualified Candidate" shall mean an employee in the Class with a competent or better performance evaluation on file for at least 45 days who is capable of performing the duties of the position.

Priority for Filling ESP Positions. If the number of ESP Volunteers in a Class exceeds the number of ESP Positions available for that Class in a department, less those ESP Positions designated for employees in the Class who agreed to participate in the alternative severance pay plan in effect prior to the effective date of the ordinance adding this paragraph, the Appointing Authority shall determine the Eligible Employees by Class that may participate in the Plan pursuant to the following procedure:

a.

Separation Prior to Early Departure Date. First priority shall be given to those ESP Volunteers agreeing to Separate from Service prior to the date for early departure determined in accordance with paragraph 2 of subsection F. Priority among such ESP Volunteers shall be established pursuant to paragraph c below.

b.

Separation On or After Early Departure Date. If one or more ESP Positions remain available after assigning ESP Positions pursuant to paragraph a above, such remaining ESP Positions shall be assigned in accordance with paragraph c below to ESP Volunteers agreeing to Separate from Service on or after the date for early departure determined in accordance with paragraph 2 of subsection F.

c.

Ranking Process.

(1)

Each ESP Volunteer shall be assigned a score equal to the total of the employee's age and years of County service, with those scoring highest ranked first.

(2)

Ties in rank shall be broken by birth date first, next date of hire, and finally, if necessary, by coin toss.

(3)

The ESP Positions shall be allocated in the order of rank on the list until all available ESP Positions in the Class are filled.

d.

Represented/Nonrepresented Allocation. When all ESP Volunteers in non-represented Classes in the same department have been assigned an ESP Position, any remaining non-represented ESP Positions shall be assigned to ESP Volunteers in represented Classes in the same department, and vice versa. Such ESP Positions shall be assigned under the ranking process set forth in paragraph c above.

Additional ESP Positions. With the approval of the chief administrative officer, an appointing authority may offer ESP Positions to additional Eligible Employees using the same selection procedures required in paragraph 6.

E.

Plan requirements.

The written agreement to participate in the Plan shall require the Participant (i) to separate from service on a specific date no later than the date determined by the Board pursuant to subsection C, (ii) to forego payments provided in Sections 5.27.330, 6.12.050, 6.14.050, 6.15.050, 6.18.070, 6.20.030 and 6.24.040 of the Los Angeles County Code and instead add the amount of those payments to the amount to be distributed in this program, (iii) to hold the county and the unions harmless for the employee's decision to separate from county service, and (iv) to separate from service as agreed.

With the concurrence of the Appointing Authority, the Participant may revoke the agreement to participate in the Plan or revise the agreed upon date of Separation from Service, provided that the revised date is not later than the deadline for separation required for the Election Window.

F.

Total severance pay.

Calculation of Severance Pay Amount. The severance pay provided by this Plan shall be determined by (i) multiplying the rate shown in the following table that corresponds to the Participant's final annual compensation times the Participant's final annual compensation, (ii) multiplying the foregoing result by the employee's number of years of county service and then (iii) adding to that amount the total payments otherwise payable at Separation from Service pursuant to Sections 5.27.330, 6.12.050, 6.14.050, 6.15.050, 6.18.070, 6.20.030 and 6.24.040.

Additional Payment for Early Departure. A Participant who Separates From Service prior to the sixth Tuesday following the effective date of the ordinance adding this paragraph if participating in the initial Election Window, and prior to the sixth Tuesday following the date a resolution is adopted by the Board establishing a subsequent Election Window, shall receive an additional payment equal to 8 percent of the Participant's final annual compensation within 30 days of the employee's Separation from Service, providing that the employee may elect to delay payment for up to six months.

Final Annual Compensation Defined. For purposes of this subsection, final annual compensation is defined as 12 times the monthly salary rate established in Section 6.28.050 for the position held by the employee on the last day of County service plus any monthly bonus or monthly pay differential to which such employee is entitled plus the amount subject to retirement provided by Chapters 5.12, 5.27, 5.33, 5.37 or 5.40 of the Los Angeles County Code.

Years of County Service Defined.

a.

For purposes of this subsection, "years of County service" is defined as the number of complete years of Los Angeles County service from the employee's continuous service date, as defined in Civil Service Rule 2.15, to the date of separation from County service under this section.

b.

Notwithstanding subparagraph a, any other Los Angeles County service prior to a break in service shall be included if, as of the date of separation from service under this section, the employee has retirement service credit with LACERA for such time. This subparagraph b shall not apply to a person who is a member of retirement Plan E.

G.

Payment Schedule.

Except as provided in paragraphs 2 and 3, severance payments to plan Participants who Separate from Service during the initial Election Window, and who meet all of the requirements of subsection E shall be made in five annual installments, with the first payment to occur as follows:

Participants who receive the additional payment provided by paragraph 2 of subsection F shall receive their first annual installment on January 1, 1994.

The Chief Administrative Officer may approve a shorter payout period than that set forth in paragraph G1 upon request of the department head if he finds that substantial savings will be produced in the shorter period and the yearly payments do not exceed 25 percent of the employee's final annual compensation plus $100.00.

A Participant may designate one or more beneficiaries to receive severance payments that become due and payable following the death of the Participant.

H.

Application of funds to acquire benefits. A Participant may enter into an agreement with the county to provide that amounts may be deducted ("Deductions") from severance payments by the county auditor-controller and remitted to provide for the following benefits:

Insurance. To continue term life insurance and accidental death and dismemberment coverage in effect at the time of separation until age 65 at the Participant's cost or make payments for health and dental insurance coverage available under COBRA. The insurance provided under COBRA may be continued for up to five years after Separation from Service, providing that such coverage is available from the county's insurance carriers.

Additional Retirement Service Credit. To acquire retirement service credit which the Participant is otherwise eligible to acquire, provided that an agreement is entered into between the LACERA Board of Retirement and the county which provides for such deduction and remittance. Any agreement executed by a Participant pursuant to this subsection shall comply with regulations adopted by the Board and with the by-law provisions and any other regulations adopted by the Board of Retirement.

Annuity. To acquire an annuity to be purchased from an insurance carrier provided that the annuity is purchased under a County program and is available in the insurance marketplace.

Outplacement. To secure outplacement services provided through the county.

I.

Insufficiency of Severance Installments to Acquire Benefits—Remedy. In the event that severance payment installments are not sufficient to cover the cost of benefits selected by a Participant pursuant to subsection H, the Participant may pay to the county auditor-controller from his or her own funds the amount needed to cover the excess cost. Such payments shall be made annually in advance.

J.

Reemployment. No person participating in the Alternative Severance Pay Plan provided by this section shall be subsequently employed in a County position unless employment of such person is approved by the Board of Supervisors.

(Ord. 93-0005 § 5, 1993; Ord. 92-0107 § 2, 1992.)

A.

Purpose. The board of supervisors finds that it is in the best interest of the county to reduce the workforce to deal with an impending fiscal shortfall and provide ongoing authority to reduce costs as needed. To help achieve this goal, there is hereby established an early retirement program, under Government Code Section 31641.04, which is available to employees who elect to participate in the alternative severance pay plan provided by Section 5.20.075 and who agree to pay for the cost of additional retirement service credit through deductions from severance payments pursuant to subdivision 2 of subsection G of Section 5.20.075.

B.

Adoption of Government Code Section 31641.04. Pursuant to subsection (e) of Section 31641.04 of the Government Code, the board of supervisors adopts and makes applicable to the county of Los Angeles the provisions of Government Code Section 31641.04, the said section to be operative August 4, 1992, the effective date of the ordinance codified in this section, only after the board of supervisors by resolution determines that because of an impending curtailment of service or change in the manner of performing service, savings of money, or other economic benefit resulting to the county, the best interests of the county would be served.

C.

Coordination with Section 5.20.075. The separation from service of an employee who elects to receive additional county paid retirement credit pursuant to this section shall be subject to the requirements of Section 5.20.075, except that such an employee shall not be entitled to receive severance payments provided in paragraph 1 of subsection F of Section 5.20.075 and shall not be subject to the requirement of paragraph 5 of subsection B that the employee have attained a minimum of 10 years of retirement service credit prior to separation from service. In addition, an employee receiving County paid retirement credit shall be entitled to the early departure payment provided by paragraph 2 of subsection F of Section 5.20.075 if the requirements of said paragraph 2 are met. An employee receiving additional retirement service credit pursuant to this section shall be required to defer payments that would otherwise be received at separation from service pursuant to Sections 5.27.330, 6.12.050, 6.14.050, 6.15.050, 6.18.070, 6.20.030 and 6.24.040, and to receive such payment in annual installments under the schedule set forth in subsection G of Section 5.20.075 if separating from County service prior to January 16, 1993, or a payment schedule set forth in a resolution adopted by the board if separating from County service on or after January 16, 1993.

(Ord. 93-0005 § 6, 1993: Ord. 92-0107 § 3, 1992: Ord. 92-0075 § 2, 1992.)

A.

Pursuant to Section 31691 of the California Government Code, the board of supervisors hereby authorizes a health insurance program for retired county employees and their dependents, providing hospital services, medical services, dental services and optical services benefits, not less than those which were provided to retired employees and their dependents by the Los Angeles County Employees Retirement Association on June 30, 1982, as set forth in the agreement between the county and said Association dated April 20, 1982. This subsection does not apply to New Members as defined in Section 5.20.085. Such New Members are entitled to benefits as described in Section 5.20.085.

B.

Crediting prior public service for purpose of retiree health benefits.

Any person designated in paragraph 5 below retiring after the effective date of this subsection may, in accordance with this section, receive credit for prior public service solely for the purposes of calculating the amount of retiree health insurance premiums paid by the County in accordance with California Government Code section 31691, County Code Sections 5.20.80 and 5.20.85, and the Funding Agreement between the County and the Los Angeles County Employees Retirement Associations (LACERA), dated April 20, 1982, and any amendments thereto (the "Retiree Health Program"). For the purpose of this section, prior public service refers to a period of employment with the federal government or any State or local government, whether or not such employment is recognized as allowed public service time under California Government Code section 31641.1 or as reciprocal service under California Government Code section 31836.

No credit will be granted under this subsection for service if such person designated in paragraph 5 below receives a benefit attributable to that service under any retiree health plan, program or arrangement of the federal, state or local government for which the service was rendered. Before prior public service is credited under this section, the period and nature of the prior public service, and the fact that no benefit is being or will be received for that service under any retiree health plan, program

or arrangement of the public agency for which that service was rendered, must be certified by an officer of the government body for which the service was rendered, established by an affidavit of the designee signed under penalty of perjury, or otherwise established to the satisfaction of the Board of Supervisors and Board of Retirement. The months of credit to be received for prior public service that has been certified in accordance with this subsection will be calculated in accordance with the rules otherwise applicable to the calculation of service credit under the Retiree Health Program.

Such designee is not entitled to receive additional service credit in accordance with this subsection unless he or she is eligible to receive retiree health insurance benefits under the Retiree Health Program without regard to this section.

Any amount of retiree health insurance premiums payable by the County due to service credited under this subsection will be paid solely from the general assets of the County and not from the separate account established in accordance with Internal Revenue Code Section 401(h) within the retirement system administered by LACERA.

The provisions of this subsection shall apply to persons designated as "L" items pursuant to Section 6.28.020(B) of the Los Angeles County Code.

The provisions of this subsection B. shall apply only to persons who were either elected or appointed by the Board of Supervisors to an item designated as "L" under Section 6.28.20(B) of the Los Angeles County Code before October 16, 2018.

C.

Retiree health insurance benefits for military reservists.

Any employee of the County designated in subparagraph 3 below who is a member of the California National Guard or a United States military reserve organization (reservist) who has completed less than ten years of County service and who retires, or dies, after the effective date of this subsection under circumstances set out in said subparagraph 2 shall, regardless of such person's actual length of County service, be deemed to have completed ten years of County retirement service credit solely for the purposes of calculating the amount of retiree health insurance premiums paid by the County on behalf of such person, or such person's eligible survivors, in accordance with California Government Code Section 31691, County Code Sections 5.20.080 and 5.20.085, and the Funding Agreement between the County and the Los Angeles County Employees Retirement Association (LACERA), dated April 20, 1982, and any amendments thereto.

The provisions of this subsection C shall apply to any reservist who is:

a.

Called into Active Military Service, as defined in Section 6.20.080 of this Code, and allowed a military leave of absence;

b.

A member of any of the contributory retirement plans established for general or safety members of LACERA; and

c.

Permanently incapacitated for the performance of duty with his or her employing County department or district, or killed, as a direct consequence and result of injury or disease arising out of and in the course of said active military service.

This subsection C shall not create a vested right with respect to any employee prior to the employee's retirement or death. The Board of Supervisors may repeal or amend the provisions of this subsection C, in whole or in part, at any time except to the extent such action would affect an employee who is retired or deceased at the time of such repeal or amendment.

(Ord. 2018-0031 § 2, 2018; Ord. 2014-0027 § 1, 2014; Ord. 2012-0043 § 1, 2012; Ord. 2005-0047 § 1, 2005: Ord. 84-0064 § 4, 1984; Ord. 82-0205 § 1, 1982.)

A.

The board of supervisors hereby authorizes a new retiree health insurance program for New Members and their Eligible Dependents (as defined below).

B.

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

"Benchmark Plans" means those LACERA Group Health Plans, the premium for which is used to calculate the various County Subsidies.

a.

Medical Benchmark Plans. With respect to retiree medical coverage for New Members who are not eligible to enroll in Medicare, the Medical Benchmark Plan is retiree-only coverage in the Anthem Blue Cross I & II plan (or any successor plan established by LACERA with comparable benefit coverage). With respect to retiree medical coverage for New Members who are eligible to enroll in Medicare, the Medical Benchmark Plan is retiree-only coverage in the Anthem Blue Cross III plan (or any successor plan established by LACERA with comparable benefit coverage).

b.

Dental Benchmark Plan. With respect to dental coverage, the Dental Benchmark Plan is retiree-only coverage in the indemnity-style dental plan that is offered under the LACERA Group Health Plan as of July 1, 2014 (or any successor plan established by LACERA with comparable benefit coverage).

c.

Vision Benchmark Plan. With respect to vision coverage, the Vision Benchmark Plan is retiree-only coverage in the indemnity- style vision plan offered under the LACERA Group Health Plan as of July 1, 2014 (or any successor plan established by LACERA with comparable benefit coverage).

"County Subsidies" means the amount the County agrees to pay toward the cost of retiree health coverage under the LACERA Group Health Plans on behalf of a New Member and/or his or her Eligible Dependents and, if applicable, the Medicare Part B premium reimbursement provided for in subsection 5.20.085E.2.

a.

"County Medical Subsidy" means the amount the County agrees to pay toward the cost of retiree medical coverage under the LACERA Group Health Plans on behalf of a New Member and/or his or her Eligible Dependents.

b.

"County Dental Subsidy" means the amount the County agrees to pay toward the cost of retiree dental coverage under the LACERA Group Health Plans on behalf of a New Member and/or his or her Eligible Dependents.

c.

"County Vision Subsidy" means the amount the County agrees to pay toward the cost of retiree vision coverage under the LACERA Group Health Plans on behalf of a New Member and/or his or her Eligible Dependents.

d.

"Medicare Part B Subsidy" means the Medicare Part B premium reimbursement provided for in subsection 5.20.085E.2.

"Eligible Dependents" means the family members or survivors of a New Member who are eligible to enroll in a LACERA Group Health Plan and may benefit from the County Subsidies. No person may be covered both as a New Member and as an Eligible Dependent. Eligible Dependents include a New Member's:

a.

Lawful spouse, unless legally separated;

b.

Domestic partner if both parties have registered a California Declaration of Domestic Partnership with the California Secretary of State;

c.

Unmarried natural or legally adopted children or stepchildren (or such children of the eligible spouse or domestic partner) who are under age 19;

d.

Unmarried natural or legally adopted children or stepchildren (or such children of the eligible spouse or domestic partner) who are dependent on the New Member for financial support and who are under age 23 and enrolled as full-time students in an accredited or licensed educational institution;

e.

Unmarried natural or legally adopted children or stepchildren (or such children of the eligible spouse or domestic partner) who (i) are dependent on the New Member for financial support, (ii) are incapable of self-support due to a physical or mental handicap, (iii) became disabled either before the age of 19 or before the age of 23 while enrolled as a full-time student at an accredited or licensed educational institution, (iv) have been continuously covered by a LACERA-sponsored, County- sponsored or other comprehensive medical insurance plan, and (v) for whom medical evidence of total disability has been provided to the satisfaction of LACERA and the LACERA Group Health Plan in which enrollment is sought; or

f.

Eligible Survivors (as defined below). Any otherwise Eligible Dependent also must satisfy any enrollment criteria imposed under the terms of the LACERA Group Health Plans or otherwise established by LACERA. An individual who becomes a spouse, domestic partner or child of an Eligible Survivor after the New Member's death is not an Eligible Dependent (except to the extent required by law).

"Eligible Survivors" means the following individuals who were Eligible Dependents (as defined in Section 5.20.085A.3.a.-e.) on the date of the New Member's death:

a.

A New Member's surviving lawful spouse who is receiving a survivor allowance from LACERA, provided that the New Member and spouse were married for at least one year prior to the New Member's retirement date (except in the case of a service-connected disability retirement, in which case the date of marriage must precede the date of retirement);

b.

A New Member's surviving domestic partner who is receiving a survivor allowance from LACERA, provided that the applicable domestic partnership registration was made at least one year prior to the New Member's retirement date (except in the case of a service-connected disability retirement, in which case the domestic partner registration must precede the date of retirement);

c.

If there is an eligible surviving spouse or domestic partner under subsection 5.20.085A.4.a. or b., the surviving children or stepchildren described in subsection 5.20.085A.3.c. or d., provided that any such individuals continue to satisfy the applicable requirements of those subsections;

d.

If there is no eligible surviving spouse or domestic partner, a New Member's surviving, unmarried natural, legally adopted children or stepchildren who are receiving survivor allowances from LACERA, up until age 18 or until age 22 if enrolled as full- time students at an accredited or licensed educational institution; or

e.

The surviving disabled children described in subsection 5.20.085A.3.e., provided that any such individuals continue to satisfy the applicable requirements of that subsection.

"LACERA" means the Los Angeles County Employees Retirement Association.

"LACERA Group Health Plans" means the group health plans sponsored and administered by LACERA, or otherwise offered to New Members, in accordance with the 2014 Agreement.

"New Member" means a County employee who: (a) either is hired by the County after June 30, 2014, or otherwise is first placed in an employment classification eligible for LACERA membership after June 30, 2014, (b) has a membership effective date with LACERA that is on or after August 1, 2014, and (c) is not granted reciprocity with LACERA for membership with another public retirement system for service that began before August 1, 2014.

"Reciprocal Agreement" means the Agreement for Retiree Health Insurance Reciprocal Subsidy Credit for General County and City Civilian Retirement Members, dated December 27, 2004, by and between the County and the City of Los Angeles.

"Tier Two Retiree Health Care Program" means the retiree health care program provided pursuant to the 2014 Agreement, this County Code Section 5.20.085 and any applicable collective bargaining agreements governing New Members.

"Year of Benefit Credit" means a period of credit used to determine the amount of a New Member's County Subsidy. A New Member will be credited with a Year of Benefit Credit for each full twelve months of aggregate (a) active membership with LACERA, plus (b) reciprocal service credit, as and to the extent granted under the Reciprocal Agreement. In addition, any service credit granted under County Code Section 5.20.080C will be taken into account. Finally, solely for the purposes of calculating the amount of the County Subsidies under subsection D below, the service credit described in County Code Section 5.20.080B shall be taken into account and aggregated with other credited periods to determine Years of Benefit Credit (but not Years of Service Credit).

"Year of Service Credit" means a period of credit used to determine whether a New Member is eligible for a County Subsidy. A New Member will be credited with a Year of Service Credit for each full twelve months of aggregate (a) active membership with LACERA, plus (b) reciprocal service credit, as and to the extent granted under the Reciprocal Agreement. In addition, any service credit granted under County Code Section 5.20.080C will be taken into account.

"2014 Agreement" means Modification No. 2 to Agreement No. 41638, which was entered into as of June 24, 2014, by and between the County and LACERA.

C.

Eligibility for Tier Two Retiree Health Care Program. A New Member shall become entitled to benefits under the Tier Two Retiree Health Care Program upon (1) retiring under LACERA, for service or for non-service-connected disability, with at least ten (10) Years of Service Credit, or (2) upon retirement under LACERA due to a service-connected disability pursuant to Government Code Section 31720; provided that, for any New Member (and his or her Eligible Dependents) governed by the Reciprocal Agreement, eligibility for coverage under the Tier Two Retiree Health Care Program shall be limited as provided in that Reciprocal Agreement.

D.

Determining and Applying the County Subsidy.

Calculation for Retiree Medical Coverage.

a.

Upon retirement for service or for non-service-connected disability with at least ten (10) Years of Service Credit, a New Member will receive a County Medical Subsidy equal to (i) 4 percent for every full Year of Benefit Credit (up to 100 percent), multiplied by (ii) the premium for the applicable Medical Benchmark Plan.

b.

Upon retirement for service connected disability, a New Member will receive a County Medical Subsidy equal to the greater of (i) 50 percent of the cost of the applicable Medical Benchmark Plan, or (ii) the subsidy to which he is entitled under subsection D.1.a. above.

Calculation for Retiree Dental Coverage.

a.

Upon retirement for service or for non-service-connected disability with at least ten (10) Years of Service Credit, a New Member will receive a County Dental Subsidy equal to (i) 4 percent for every full Year of Benefit Credit (up to 100 percent), multiplied by (ii) the premium for the applicable Dental Benchmark Plan.

b.

Upon retirement for service connected disability, a New Member will receive a County Dental Subsidy equal to the greater of (i) 50 percent of the cost of the applicable Dental Benchmark Plan, or (ii) the subsidy to which he is entitled under subsection D.2.a. above.

Calculation for Retiree Vision Coverage.

a.

Upon retirement for service or for non-service-connected disability with at least ten (10) Years of Service Credit, a New Member will receive a County Vision Subsidy equal to (i) 4 percent for every full Year of Benefit Credit (up to 100 percent), multiplied by (ii) the premium for the applicable Vision Benchmark Plan.

b.

Upon retirement for service connected disability, a New Member will receive a County Vision Subsidy equal to the greater of (i) 50 percent of the cost of the applicable Vision Benchmark Plan, or (ii) the subsidy to which he is entitled under subsection D.3.a. above.

Use of County Subsidies.

a.

The County Medical Subsidy may be applied toward the cost of purchasing any coverage level (e.g., retiree-only or family) for any medical plan option under the LACERA Group Health Plans that is available to the New Member and his or her Eligible Dependents, subject to the rules and limitations set forth in subsection 5.20.085E. below. A New Member and his or her Eligible Dependents (or surviving spouse or surviving domestic partner and other Eligible Survivors) must be enrolled in the same medical plan, unless some, but not all, eligible family members are Medicare-eligible. In that case, the Medicare-eligible individual(s) must enroll in a Medicare Advantage plan or Medicare supplement plan as provided in subsection 5.20.085E., and the non-Medicare-eligible individual(s) must enroll in the corresponding non-Medicare LACERA Group Health Plan. In addition, upon a New Member's death, if there is no surviving spouse or surviving domestic partner entitled to a County Medical Subsidy, each Eligible Survivor may enroll in a separate medical plan, the County Medical Subsidy shall be allocated pro rata among such Eligible Survivors and each Eligible Survivor may apply his or her allocable share of the County Medical Subsidy toward the cost of the medical plan selected.

b.

The County Dental Subsidy may be applied toward the cost of purchasing any coverage level (e.g., retiree-only or family) for any dental plan option under the LACERA Group Health Plans that is available to the New Member and his or her Eligible Dependents. A New Member and his or her Eligible Dependents (or surviving spouse or surviving domestic partner and other Eligible Survivors) must be enrolled in the same dental plan. Provided, however, that upon a New Member's death, if there is no surviving spouse or surviving domestic partner entitled to a County Dental Subsidy, each Eligible Survivor may enroll in a separate dental plan, the County Dental Subsidy shall be allocated pro rata among such Eligible Survivors and each Eligible Survivor may apply his or her allocable share of the County Dental Subsidy toward the cost of the dental plan selected.

c.

The County Vision Subsidy may be applied toward the cost of purchasing any coverage level (e.g., retiree-only or family) for any vision plan option under the LACERA Group Health Plans that is available to the New Member and his or her Eligible Dependents. A New Member and his or her Eligible Dependents (or surviving spouse or surviving domestic partner and other Eligible Survivors) must be enrolled in the same vision plan. Provided, however, that upon a New Member's death, if there is no surviving spouse or surviving domestic partner entitled to a County Vision Subsidy, each Eligible Survivor may enroll in a

separate vision plan, the County Vision Subsidy shall be allocated pro rata among such Eligible Survivors and each Eligible Survivor may apply his or her allocable share of the County Vision Subsidy toward the cost of the vision plan selected.

E.

Coverage Options for Medicare-Eligible Individuals; Medicare Part B Subsidy.

Mandatory Enrollment in Medicare Plans. Notwithstanding any other provision of this Section 5.20.085, to retain eligibility under the Tier Two Retiree Health Care Program, New Members and Eligible Dependents who are eligible for Medicare are required to enroll in Medicare Parts A and B, and may enroll only in a LACERA Group Health Plan that is a Medicare Advantage plan or Medicare supplement plan. A New Member or Eligible Dependent who: (a) fails to enroll in Medicare Parts A and B after becoming eligible; (b) assigns his or her Medicare benefit to a plan other than a LACERA Group Health Plan; or (c) loses Medicare coverage, will be terminated from participation in the Tier Two Retiree Health Care Program. A New Member or Eligible Dependent who has been terminated from the Tier Two Retiree Health Care Program, and who subsequently meets the requirements for eligibility, may be re-enrolled in the Tier Two Retiree Health Care Program after a six (6) month waiting period.

Medicare Part B Subsidy. If the New Member and/or his or her Eligible Dependents enroll in Medicare Parts A and B and a LACERA Group Health Plan that is a Medicare Advantage plan or Medicare supplement plan, the County will reimburse a total amount equal to the standard self-only coverage premium amount for Medicare Part B. Regardless of the number of family members enrolled in Medicare, the total Medicare Part B Subsidy amount paid with respect to the New Member and/or his or her Eligible Dependents shall in no case exceed the standard self-only coverage premium amount for Medicare Part B. This Medicare Part B Subsidy shall not include any means testing or late enrollment fees or penalties.

F.

Administration. LACERA shall administer the Tier Two Retiree Health Care Program as provided in the 2014 Agreement.

G.

Amendment and Termination.

Generally. Subject to Section 5.20.085G.2. and the County's collective bargaining obligations, any restrictions imposed by California Government Code Section 31692, and the terms of the 2014 Agreement, the Tier Two Retiree Health Care Program and County Code Section 5.20.085 may be amended or terminated by the County at any time. In particular, and without limiting the foregoing, the County may, subject to its collective bargaining obligations, amend or terminate the Tier Two Retiree Health Program with regard to County employees who, at the time of such amendment or termination, have not yet been hired or placed in an employment classification eligible for LACERA membership. In addition, subject to Section 5.20.085G.2. and the 2014 Agreement, the terms of the Tier Two Retiree Health Care Program and this Section 5.20.085 of the County Code may be amended or modified with regard to current New Members and their Eligible Dependents, provided that any amendment or modification ensures that such New Members and their Eligible Dependents continue to receive health care benefits that are comparable to those benefits provided under the current terms of the Tier Two Retiree Health Care Program. Such potential amendments or modifications include, but are not limited to, those that are necessary or desirable to address changes in the law, changes in the health insurance market or changes in the way in which health care services are delivered and paid for in the United States.

Represented Employees. Notwithstanding anything to the contrary in Section 5.20.085.G.1 above, with regard to New Members who are in a bargaining unit represented by an employee organization certified by the County Employee Relations

Commission, any amendment or termination of the Tier Two Retiree Health Care Program and County Code Section 5.20.085 made by the County shall be subject to any applicable collective bargaining obligations and any procedural rights or other rights such employee organization may have to challenge the legality of actions taken by the County.

(Ord. 2014-0027 § 2, 2014.)