Los Angeles County Municipal Code Part 4 Matching Contributions

A.

Subject to the provisions of the Plan and the Trust Agreement, the County will contribute to the Investment Funds on account each month an amount equal to four percent (4%) of each Eligible Participant's monthly Compensation provided that the year-to-date cumulative Matching Contributions do not exceed such Eligible Participant's year-to-date cumulative Tax Deferred Contributions. Effective beginning on and after April 1, 2010, or such later date, the reference to "month" in this Section 5.26.110.A will be deemed to be a reference to "payroll period" and the reference to "monthly Compensation" will be deemed to be a reference to "Compensation for that payroll period." Effective 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, notwithstanding the foregoing, no Matching Contribution will be made for a payroll period after the Eligible Participant's Severance Date for which the Eligible Participant has no Eligible Earnings.

B.

Notwithstanding any other provision of this Plan or the Horizons Plan, including the limitation in subsection A, for Plan Years beginning before January 1, 2002, when a Participant of this Plan who is also a participant of the Horizons Plan makes the maximum tax deferred contributions permitted by the Code to both plans during a Plan Year, such Participant shall be entitled to have contributed as additional Matching Contributions to this Plan the difference between (1) the total Matching Contributions that would have been made to both plans for such Participant, but for the applicable Deferral Limit described in Section 5.26.100A, and (2) the total Matching Contributions actually made to both plans, provided that the total contributions to this Plan shall not exceed the total contributions allowed by Section 415 of the Code.

C.

Notwithstanding any other provision of this Plan, including the limitation in subsection A, when a Participant of this Plan, who makes no contributions to the Horizons Plan during a Plan Year, makes the maximum Tax Deferred Contributions permitted by the code to this Plan during the same Plan Year, such Participant shall be entitled to have contributed as additional Matching Contributions to this Plan the difference between (1) the total Matching Contributions that would have been made for such Participant to this Plan, but for the applicable Deferral Limit described in Section 5.26.100A or B, and (2) the total Matching Contributions actually made to this Plan, provided that the total contributions to this Plan shall not exceed the total contributions allowed by Section 415 of the code.

D.

Notwithstanding any other provision of this Plan or the Horizons Plan, including the limitation in subsection A, for Plan Years beginning on or after January 1, 2002, when a Participant of this Plan who is also a participant of the Horizons Plan (i) has elected to be covered by Section 5.26.100B, (ii) makes the maximum contributions permitted by the code under the Horizons Plan, and (iii) is making Tax Deferred Contributions to this Plan at a rate that will permit the Participant to receive the full Matching Contribution under Section 5.26.110A of this Plan, such Participant shall be entitled to have contributed as additional Matching Contributions to this Plan the difference between (1) the total Matching Contributions that would have been made to both plans for such Participant, but for the applicable limitation under Code Section 457(c) and the Deferral Limit described in Section 5.26.100B, and (2) the total Matching Contributions actually made to both plans, provided that the

total Tax Deferred Contributions and Matching Contributions to this Plan shall not exceed the total contributions allowed by Section 415 of the code.

E.

Notwithstanding any other provision of this Plan or the Horizons Plan, including the limitation in subsection A, for Plan Years beginning on or after January 1, 2002, when a Participant of this Plan who is also a participant in the Horizons Plan has elected to be covered by Section 5.26.100C (or is treated as having so elected) and makes tax deferred contributions to both plans equal to the Combined Limit under this Plan, such Participant shall be entitled to have contributed as additional Matching Contributions to this Plan the difference between (1) the total Matching Contributions that would have been made to both plans for such Participant, but for the Combined Limit described in Section 5.26.100C, and (2) the total Matching Contributions actually made to both plans, provided that the total Tax Deferred Contributions and Matching Contributions to this Plan shall not exceed the total contributions allowed by Section 415 of the code.

F.

Notwithstanding the foregoing: (i) no Matching Contributions shall be made by the County with regard to Tax Deferred Contributions made with respect to payroll periods starting January 1, 2011 and continuing through June 30, 2011; and (ii) the County shall contribute to the Investment Funds on account with respect to each payroll period starting July 1, 2011 and continuing through June 30, 2012, an amount equal to three percent (3%) of each Participant's Compensation for that payroll period provided that the year-to-date cumulative Matching Contributions do not exceed such Participant's year-to-date cumulative Tax Deferred Contributions. The aggregate amount of Matching Contributions under the Plan for such July 1st to June 30th period shall not exceed a dollar cap to be determined by the Board of Supervisors. This subsection D shall not apply to Trial Court Employees or judges, who shall continue to receive Matching Contributions pursuant to the provisions set forth in the foregoing subsections of this Section 5.26.110.

G.

Notwithstanding the foregoing, no Matching Contributions shall be made by the County with regard to Compensation in, or Tax Deferred Contributions made with respect to, payroll periods starting May 1, 2020, and continuing through June 30, 2021 (i.e., pay dates from May 29, 2020 through July 15, 2021); provided, however, that Participants in the Deputy District Attorney II (9272) classification who made Tax Deferred Contributions from a retroactive pay adjustment made after October 1, 2020, but before June 30, 2021, shall be entitled to receive a Matching Contribution as though those Deferred Compensation Contributions were made on the July 31, 2021 pay date. For the avoidance of doubt, subject to the forgoing provisions, the year-to-date determination of Matching Contributions shall not take into account a Participant's Tax Deferred Contributions made on and after the May 29, 2020 pay date and continuing through the July 15, 2021 pay date. This subsection G shall not apply to (1) Trial Court Employees or judges, or (2) Participants providing services to LACERA, who shall continue to receive Matching Contributions pursuant to the provisions set forth in the foregoing subsections of this Section 5.26.110.

(Ord. 2025-0056 § 2, 2025; Ord. 2021-0051 § 5, 2021; Ord. 2020-0019U § 2, 2020; Ord. 2010-0063 § 10, 2010; Ord. 2010- 0014, § 11, 2010; Ord. 2004-0064 §§ 1, 2 (part), 2004.)

Matching Contributions shall be paid to the Trustee in cash at least monthly and shall be based upon the amount of Tax Deferred Contributions made during the month for which such Matching Contributions are made. Any other provision herein to the contrary notwithstanding, if it appears to the Administrative Committee that the County will not be able to make Matching Contributions for a Plan Year or any part thereof because it appears there will not be sufficient Net Revenues, the County shall cease making Matching Contributions for such Plan Year on a monthly basis and shall make Matching Contributions, if any, within 30 days after the amount, if any, of Net Revenues for such Plan Year is determined.

If the amount of Matching Contributions for a Plan Year exceeds the amount which may be contributed to the Plan in accordance with Section 5.26.110 (except in the case of a mistake of fact covered by Section 5.26.150B), to the extent permitted by applicable law, such excess Matching Contributions shall be forfeited, placed in a suspense account and applied in accordance with Section 5.26.338.

Effective beginning 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, each reference to "month" in this Section 5.26.120 shall be deemed to be a reference to "payroll period" and each reference to "on a monthly basis" or "at least monthly" shall be deemed to be a reference to "each payroll period."

(Ord. 2010-0014, § 12, 2010: Ord. 2004-0064 §§ 1, 2 (part), 2004.)

Matching Contributions will be allocated and credited each month to the Matching Contributions Account of each Eligible Participant for whom Tax Deferred Contributions are made during such month, with each such Eligible Participant receiving a portion of the Matching Contributions equal to the amount calculated according to the provisions of Section 5.26.110. In the event that Matching Contributions are insufficient to provide each Eligible Participant with the fully allocated portion as provided in the preceding sentence, the Matching Contributions that are made will be allocated proportionally to the Matching Contributions Account of each Eligible Participant in a manner consistent with such sentence. Effective beginning 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, each reference to "month" in this Section 5.26.130 will be deemed to be a reference to "payroll period."

(Ord. 2025-0056 § 3, 2025; Ord. 2010-0014, § 13, 2010: Ord. 2004-0064 §§ 1, 2 (part), 2004.)

The amount of Matching Contributions determined to be payable to the Matching Contributions Account pursuant to this Part 4 shall be reduced first in accordance with the provisions of Section 5.26.160C (with respect to amounts held in a suspense account) and then in accordance with Section 5.26.338.

(Ord. 2008-0071 § 2, 2008: Ord. 2004-0064 §§ 1, 2 (part), 2004.)

A.

Except as provided in subsection B of this Section 5.26.150 or in Section 5.26.120, 5.26.140 or 5.26.540, the Investment Funds shall never inure to the benefit of the County and shall be held for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses of administering the Plan.

B.

If any County Contribution is made by the County due to a mistake of fact, such contribution (but not the earnings thereon) shall, to the extent permitted by applicable law, at the direction of the Administrative Committee, be returned to the County within one year after it is made; if such contribution constituted a Tax Deferred Contribution, After-Tax Contribution, Termination Pay Contribution or Rollover Contribution, it shall thereafter be returned to the Participant to the extent permitted by applicable law. Additionally, if the Plan, or a portion thereof, is determined by the Internal Revenue Service not to satisfy the requirements of Code Sections 401(a) and 401(k) for a qualified governmental plan containing a cash or deferred arrangement, any County Contributions attributable to that portion of the Plan that is determined to not be so qualified, and attributable to the period for which it is determined to not be so qualified, shall, at the direction of the Administrative Committee, be returned to the County. All amounts to be returned to the County must be returned from assets invested in Core Funds. If any Participant has insufficient assets invested in Core Funds, the Administrative Committee may transfer assets from Brokerage Investments to Core Funds as necessary.

(Ord. 2008-0071 § 3, 2008; Ord. 2004-0064 §§ 1, 2 (part), 2004.)

If (i) a claim for lost benefits or contributions under the Plan based on a breach of fiduciary duty or violation of applicable employment law is filed by one or more Eligible Employees, Participants and/or Beneficiaries ("Claimants") in a court of

competent jurisdiction against the Plan, the Administrative Committee and/or the County, and (ii) the Administrative Committee and the County agree that there is a reasonable risk of liability and that it is prudent to settle such claim, the County may make such contributions to the Plan as are reasonably agreed to between the parties in a bona fide settlement agreement resolving such claim in order to make Claimants whole for such losses ("Restorative Contributions"). Any Restorative Contributions generally shall be treated as Annual Additions subject to the limitations in effect under Section 5.26.160 for the Plan Year in which such Restorative Contributions are made; provided, however, that Restorative Contributions made to restore investment losses to the Plan resulting from actions by a fiduciary for which there is a reasonable risk of liability for breach of a fiduciary duty under state law are not subject to such limitations, as and to the extent permitted under Treasury Regulations Section 1.415(c)-1(b)(2)(ii), if Claimants who are similarly situated are treated similarly with respect to such Restorative Contributions.

(Ord. 2021-0058 § 3, 2021.)

A.

Definitions. For the purposes of this Section 5.26.160 and Section 5.26.170, the following definitions apply:

"Annual Addition" means the sum of the following amounts credited to a Participant's account for any Limitation Year: (a) all contributions made by the County to any qualified defined contribution plan maintained by the County, (b) all contributions made by the Participant to any qualified defined contribution plan maintained by the County, (c) all forfeitures under any qualified defined contribution plan maintained by the County, and (d) contributions to an individual medical benefit account (as defined in Code Section 415(l)(2)) of a Participant that is part of a pension or annuity plan maintained by the County (except that the 25 percent of 415 Compensation limit, or, for Limitation Years beginning on or after January 1, 2002, the 100 percent of 415 Compensation limit, does not apply to such an individual medical benefit account).

"County" means 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 Sections 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).

"Limitation Year" means the twelve consecutive month period used by a Qualified Plan for the purposes of computing the limitations on benefits and annual additions under Code Section 415. The Limitation Year for this Plan is the Plan Year.

B.

Limit on Contributions. Notwithstanding any other provisions of the Plan for Limitation Years beginning before January 1, 2002, the Annual Addition for a Participant for any Limitation Year shall in no event exceed the lesser of (a) $30,000.00 or such higher adjusted amount as shall be prescribed by the Secretary of the Treasury pursuant to Code Section 415(d) to reflect increases in the cost of living, or (b) 25 percent of the Participant's 415 Compensation during the Plan Year. For Limitation Years beginning on or after January 1, 2002, except to the extent permitted under Section 5.26.060B regarding Catch-Up Contributions and Code Section 414(v), the Annual Addition for a Participant for any Limitation Year shall not exceed the lesser of (y) $40,000, as adjusted for increases in the cost-of-living under Code Section 415(d), or (z) 100 percent of the Participant's 415 Compensation for the Plan Year.

C.

Excess Annual Additions.

For Limitation Years beginning before July 1, 2007, if, as a result of the allocation of forfeitures, a reasonable error in estimating a Participant's Compensation, a reasonable error in determining the amount of elective deferrals under Code Section 402(g)(3), or under other limited facts and circumstances that the Commissioner of Internal Revenue finds justify the availability of the rules set forth in Treasury Regulation Section 1.415-6(b)(6), a Participant's Annual Additions would exceed the limitations of subsection B for a Limitation Year, After-Tax Contributions (if any) made by the Participant for such Plan Year (together with any gains attributable thereto) shall be returned to him to the extent necessary to satisfy the limitations of subsection B. If return of such After-Tax Contributions is insufficient to cause the limitations of subsection B to be satisfied, as soon as practicable following the Limitation Year a portion of the Termination Pay Contribution (if any) made for such Participant for such Limitation Year (together with gains attributable thereto) shall be treated as an Employee contribution not eligible to be picked up under Part 5 and returned to him as a corrective disbursement to the extent necessary to satisfy the limitations of subsection B. If return of such Termination Pay Contribution is insufficient to cause the limitations of subsection B to be satisfied, Matching Contributions allocable to such Participant's Account for such Limitation Year shall, to the extent necessary to cause the limitation in subsection B to be satisfied, be held in a suspense account and used to reduce Matching Contributions for the next Limitation Year for that Participant if such Participant is covered by the Plan at the end of such Limitation Year; and if he is not covered by the Plan at the end of any such Limitation Year, the Matching Contributions held in the suspense account shall be allocated and reallocated pro rata (based on each Participant's Eligible Earnings) to the Accounts of other Participants, except that such allocation or reallocation shall not cause the limitations of subsection B to be exceeded for any other Participant for any other Limitation Year. Investment gains and losses shall not be allocated to the suspense account during the period such suspense account is required to be maintained. In the event of the termination of this Plan while there exists a balance in the suspense account, to the extent such balance cannot be allocated to Participant's Account without violating the limitations of this section, such balance shall revert to the County. If the allocation of Matching Contributions to the suspense account as described herein is not sufficient to cause the limitations of subsection B to be satisfied, Tax Deferred Contributions (other than Catch-Up Contributions) made for such Participant for such Limitation Year (together with gains attributable thereto) shall be returned to him to the extent necessary to satisfy the limitations under subsection B. In the event a reduction is necessary to satisfy subsection B, and the Participant participates in two or more defined contribution plans maintained by the County, the excess amount to be reduced will be deemed to consist of the Annual Addition last allocated. If an excess amount was allocated to a Participant on an allocation date of this Plan that coincides with an allocation date of another plan, the excess amount attributed to this Plan (to be reduced as provided above) will be the product of (1) the total excess amount allocated as of such date, and (2) the ratio of the Annual Addition allocated to the Participant for the Limitation Year under this Plan to the total Annual Additions allocated to the Participant for the Limitation Year for this and all other qualified defined contribution plans.

Notwithstanding the foregoing, for Limitation Years beginning on or after July 1, 2007, if Annual Additions on behalf of any Participant in a Limitation Year to this Plan and all other defined contribution plans maintained by the County exceed the limitations of subsection B, such excess shall be corrected according to the Internal Revenue Service's Employee Plans Compliance Resolution System, or any successor correction program.

D.

Aggregation of Plans. For the purposes of applying the limitations set forth in this Section 5.26.160 and Section 5.26.170, all qualified defined benefit plans (whether or not terminated) ever maintained by the County shall be treated as one defined benefit plan, and all qualified defined contribution plans (whether or not terminated) ever maintained by the County shall be treated as one defined contribution plan.

(Ord. 2012-0056 § 3, 2012: Ord. 2008-0071 § 4, 2008; Ord. 2004-0064 §§ 1, 2 (part), 2004.)

Notwithstanding any other provision of the Plan, in the case of a Participant who is also a participant in any defined benefit plan qualified under Code Section 401(a), whether or not terminated, maintained by the County, the sum of the defined contribution plan fraction (as determined under Code Section 415(e)(3)) and the defined benefit plan fraction (as determined under Code Section 415(e)(2)) for any Limitation Year (as defined in Section 5.26.160A) shall in no event exceed 1.0. In the

event a reduction is necessary to avoid exceeding the limitation set forth in this section, the affected Participant's Annual Additions (as defined in Section 5.26.160A) under this Plan shall be reduced to the extent necessary to avoid exceeding such limitation in accordance with the procedures set forth in Section 5.26.160C. This Section 5.26.170 shall be inapplicable for Plan Years beginning on and after January 1, 2000.

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