Los Angeles County Municipal Code Part VIII Source of Benefits

A.

The Plan shall be unfunded within the meaning of the federal tax laws. Ownership of any assets, whether cash or other investments which might be used to pay any amount under the Plan, shall at all times remain solely in the County or in the Districts (with the County acting as their agent). Participants and Eligible Survivors and any other persons who might be entitled to amounts under this Plan shall not have any property interest, preferred claims, liens, or any other beneficial interest whatsoever in any assets of the County or Districts, and shall have only general creditor status with respect to the County and Districts. Any rights created under this Plan shall be mere unsecured contractual rights against the County, or the District, by which the Participant was formerly employed.

B.

Benefits due under this Plan shall be paid by the County from its general assets, which are subject to the claims of the County's general creditors; with respect to benefits due to former employees of the Districts (or their Eligible Survivors), the County shall pay benefits from its general funds only after receiving money from the Districts to pay these benefits; any amounts received from a District shall be held as general assets of the County, which are Subject to the claims of the County's general creditors. The County shall also pay all costs, charges, and expenses relating to this Plan from the same asset sources.

(Ord. 2010-0048 § 1, 2010)

No employee contributions or deferrals shall be made or allowed under the Plan at any time. In accordance with Section 415(m), no election to defer compensation under this Plan shall be provided, at any time or in any manner, to any person.

(Ord. 2010-0048 § 1, 2010)

County and District assets used to provide benefits under this Plan shall not be commingled with the monies of the Retirement Plan or any other qualified plans, nor shall this Plan ever receive or use any assets of the Retirement Plan. Notwithstanding the foregoing, in accordance with CERL Section 31899.4(d), and to the extent otherwise permitted by applicable law, LACERA will apply a credit toward or otherwise adjust County and District contributions to the Retirement Plan each year to reflect benefits that are paid from this Plan rather than the Retirement Plan due to limits imposed by IRC Section 415(b). The amount of the credit or adjustment will be determined by a methodology acceptable to LACERA's actuary and such credit or adjustment will be implemented in compliance with applicable law.

(Ord. 2010-0048 § 1, 2010)