Los Angeles County Municipal Code Part 3 Tax Deferred Contributions

A.

Subject to the limitations contained in Sections 5.26.100A, B or C, 5.26.160 and 5.26.170, a Participant may, pursuant to a Compensation Deferral Agreement, have the County deduct from his Eligible Earnings and contribute to the Plan a percentage or dollar amount of his Eligible Earnings during any Plan Year; provided, however, that for any period, the Participant may not deduct from and defer any amount that: (i) would not be received as taxable cash but for the Compensation Deferral Election; or (ii) would not constitute Eligible Earnings even if received as taxable cash. Moreover, the Participant's Eligible Earnings for each pay period will be reduced on a pre-tax basis in the following order: (i) first, any pre- tax contributions to LACERA; (ii) second, if the Participant participates in one of the flexible benefit plans under Chapters 5.27, 5.28, 5,33 or 5.37 of the Los Angeles County Code, by the amount of any contributions under such plans that otherwise would have constituted Eligible Earnings; (iii) third, if a participant also participates in the Pension Savings Plan, for the amount of any Supplemental Deferred Compensation Contributions (as defined in the Pension Savings Plan) that otherwise would have constituted Eligible Earnings; (iv) fourth, Tax Deferred Contributions to this Plan; and (v) fifth, if a Participant also participates in the Horizons Plan, by an amount to satisfy the Participant's Participation Agreement under Horizons Plan.

B.

Effective as of January 1, 2002, a Participant who has attained the age of 50 or older before the close of any Plan Year and is eligible to make Tax Deferred Contributions under the Plan shall be eligible to have the County make Catch-Up Contributions to the Plan from his or her Eligible Earnings during such Plan Year in excess of the Code limitations set forth in Section 5.26.100B, Section 5.26.160 or comparable limitations or restrictions contained in the terms of this Plan, provided, however, that such Catch-Up Contributions may not exceed the limitations contained in Section 5.26.100E. A participant who has elected to be subject to Section 5.26.100C (or is treated as having so elected) shall not be eligible to have the County make a Catch-Up Contribution on his or her behalf.

C.

Notwithstanding any other provision to the contrary, a Participant or an Eligible Employee may elect to defer a fixed percentage or dollar amount of the portion of his Eligible Earnings consisting of Termination Pay. A Participant's Termination Pay deferral shall be based on the deferral election on record on the last day of the month prior to the month the Separation from Employment occurs. An Eligible Employee must execute a Participation Agreement with the County not later than the month prior to the month the Separation from Employment occurs.

(Ord. 2008-0004 § 12, 2008; Ord. 2004-0064 §§ 1, 2 (part), 2004.)

Subject to the limitations contained in Sections 5.26.160, effective as of January 1, 2002, a Participant may, pursuant to a Salary Deduction Agreement, have the County deduct from his Eligible Earnings and contribute to the Plan a percentage or dollar amount of his Eligible Earnings during any Plan Year.

(Ord. 2004-0064 §§ 1, 2 (part), 2004.)

Each Participant's Eligible Earnings shall be reduced each pay date pursuant to his authorization on a Compensation Deferral Agreement and Salary Deduction Agreement (if any) and the resulting Tax Deferred Contributions and After-Tax Contributions shall be transmitted by the County to the Trustee and credited to the Participant's Account within a period that is not longer than is reasonable for the proper administration of the accounts of Participants, but in no event later than the 15th business

day of the month following the month in which the Participant's Tax Deferred Contributions or After-Tax Contributions otherwise would have been payable to such Participant in cash.

(Ord. 2004-0064 §§ 1, 2 (part), 2004.)

The percentage or dollar amount designated by a Participant pursuant to Sections 5.26.060 and 5.26.065 shall continue in effect, notwithstanding any changes in the Participant's Eligible Earnings. A Participant may, however, in accordance with Section 5.26.060 or Section 5.26.065 as applicable, change the percentage or dollar amount of the Tax Deferred Contributions or After-Tax Contributions that are being made for him once each month by giving prior written notice of such change to the Administrative Committee, in accordance with procedures established by the Administrative Committee, effective with respect to Eligible Earnings payable for services rendered to the County on and after the Entry Date following the date such notice is filed. Effective on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, a participant may change the percentage or dollar amount of Tax Deferred Contributions or After-Tax Contributions that are being made for him on a semi-monthly basis, in accordance with procedures established by the Administrative Committee, with a change made on or before the 15th of a month effective with respect to Eligible Earnings paid on or about the 15th of the next month, and a change made after the 15th, but before the last day of a month, effective with respect to Eligible Earnings paid on or about the 30th of the next month.

(Ord. 2010-0014, § 9, 2010; Ord. 2004-0064 §§ 1, 2 (part), 2004.)

By giving prior written notice thereof to the Administrative Committee in accordance with procedures established by the Administrative Committee, a Participant may suspend the Tax Deferred Contributions or After-Tax Contributions that are being made for him at any time effective with respect to Eligible Earnings payable for services rendered to the County on or after the Entry Date following the date such notice is filed. A Participant who has suspended the Tax Deferred Contributions or After-Tax Contributions that were being made for him may again have such contributions made for him by giving prior written notice of such change to the Administrative Committee in accordance with procedures established by the Administrative Committee (which procedures may include, at the sole discretion of the Administrative Committee, the filing of a new Compensation Deferral Agreement or Salary Deduction Agreement, as applicable, with the Administrative Committee in accordance with Section 5.26.040), effective with respect to Eligible Earnings payable for services rendered to the County on and after the Entry Date following the date such notice is filed. Effective on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, a participant may suspend or restart his Tax Deferred Contributions or After-Tax Contributions on a semi-monthly basis, in accordance with procedures established by the Administrative Committee, with an election made on or before the 15th of a month effective with respect to Eligible Earnings paid on or about the 15th of the next month, and an election made after the 15th, but before the last day of a month, effective with respect to Eligible Earnings paid on or about the 30th of the next month.

(Ord. 2010-0014, § 10, 2010; Ord. 2004-0064 §§ 1, 2 (part), 2004.)

A.

For calendar years beginning prior to January 1, 2002, and notwithstanding any other provision of the Plan, the amount of the Tax Deferred Contributions pursuant to a Participant's Compensation Deferral Agreement for any calendar year shall not exceed $7,000.00 adjusted for the calendar year to reflect the increases in cost-of-living in accordance with Code Sections 402(g) and 415(d) (the "Deferral Limit"); provided, however, that if the Participant also participates in the Horizons Plan, then a combined Deferral Limit of $7,500.00 (as adjusted for the calendar year to reflect increases in the cost-of-living in accordance with Code Sections 457(e)(15) and 415(d)) applies to the aggregate for the Plan Year of the Participant's Tax Deferred

Contributions under this Plan and the Participant's contributions (both "Deferred Compensation Contributions" and "Matching Contributions") under the Horizons Plan.

B.

For calendar years beginning on or after January 1, 2002, the amount of Tax Deferred Contributions pursuant to a Participant's Compensation Deferral Agreement for any calendar year shall not exceed the following applicable dollar amounts: (a) $11,000 in 2002, (b) $12,000 in 2003, (c) $13,000 in 2004, (d) $14,000 in 2005, and (e) $15,000 in 2006 and thereafter. For Plan Years beginning on or after January 1, 2007, the $15,000 applicable dollar limit shall be adjusted for the calendar year to reflect the increases in cost-of-living in accordance with Code Sections 402(g)(4) and 415(d). The dollar limits set out in this Section 5.26.100B constitute the "Deferral Limits" for such applicable calendar year. Catch-Up Contributions made pursuant to Section 5.26.060B and Code Section 414(v) are not taken into consideration for purposes of determining the Deferral Limit for a calendar year. For calendar years beginning on or after January 1, 2002, and ending prior to January 1, 2021, this subsection B shall not apply to any Participant who elects, pursuant to a Compensation Deferral Agreement or in accordance with the procedures of Sections 5.26.080 or 5.26.090, to be subject to the Combined Limit as defined in subsection C of this Section 5.26.100 or is treated as having so elected pursuant to Section 5.26.100C. Notwithstanding any provision to the contrary, or any election previously made or deemed made, the Deferral Limit set forth in this subsection B, and not the Combined Limit set forth in subsection C, shall apply to all Participants for calendar years beginning January 1, 2021.

C.

For calendar years beginning on or after January 1, 2002, and ending prior to January 1, 2021, any Participant who also participates in the Horizons Plan and elects to be covered by this subsection C (or is treated as having so elected) shall be subject to the following combined limit: The combined Deferral Limit as determined under Section 5.26.100A for the 2001 calendar year shall apply to the aggregate for the calendar year of the Participant's Tax Deferred Contributions under this Plan and the Participant's contributions (both "Deferred Compensation Contributions" and "Matching Contributions") under the Horizons Plan. The dollar limits provided for in this Section 5.26.100C constitute the "Combined Limit" for such applicable calendar year. Any Participant who elects to be covered by this subsection C (or is treated as having so elected) will be precluded from making any catch-up contributions under Code Section 414(v) to this Plan or Horizons for such calendar year. This subsection C shall not apply to any Participant who elects, pursuant to a Compensation Deferral Agreement, or in accordance with the procedures of Sections 5.26.080 or 5.26.090, to be subject to the Deferral Limit under subsection B of this Section 5.26.100. Any Participant who as of December 31, 2001 also participated in Horizons shall be treated as having elected to be covered by the Combined Limit under Section 5.26.100C until such time as the Participant elects, in accordance with the procedures of Sections 5.26.080 and 5.26.090, to be subject to the Deferral Limits under Section 5.26.100B. Notwithstanding any provision to the contrary, or any election previously made or deemed made, this subsection C shall not apply to any Participant for calendar years beginning on or after January 1, 2021.

D.

If, for any calendar year, the amount of the Tax Deferred Contributions pursuant to a Participant's Compensation Deferral Agreement does exceed the Deferral Limit, the excess amount of such Tax Deferred Contributions shall be distributed to the Participant in cash no later than April 15th of the next following calendar year (together with any earnings thereon through the end of the calendar year in which the contribution was made).

E.

For calendar years beginning on or after January 1, 2002, the amount of Tax Deferred Contributions treated as Catch-Up Contributions for any calendar year shall not exceed the lesser of (a) the following applicable dollar amounts: (1) $1,000 in 2002, (2) $2,000 in 2003, (3) $3,000 in 2004, (4) $4,000 in 2005, and (5) $5,000 in 2006 and thereafter; or (b) the excess, if any, of the Participant's 415 Compensation over any other elective deferrals made by the Participant for such year (other than catch-up contributions made pursuant to Code Section 414(v)). For Plan Years beginning on or after January 1, 2007, the $5,000 applicable dollar limit shall be adjusted for the calendar year to reflect the increases in cost-of-living in accordance with Code Sections 414(v) and 415(d).

F.

For the purposes of applying the Deferral Limit: 1) elective deferrals within the meaning of Code Section 402(g)(3) under any other plan, contract or arrangement of the County shall be treated as made under this Plan; and 2) the "County" includes any entity the employees of which, together with employees of the County, are required to be treated as if they were employed by a single employer under Code Section 414(b), (c), (m) or (o).

(Ord. 2020-0063 § 1, 2020; Ord. 2014-0017 § 16, 2014; Ord. 2004-0064 §§ 1, 2 (part), 2004.)