Los Angeles Municipal Code Art. 1 Tier 1 Provisions

Section 4.1002 Membership in Tier 1. 4.1002.1 Mandatory Transfer of Tier 2 Members to Tier 1. 4.1008.1 Disability Retirement for Airport Peace Officer Members. 4.1008.2 Disability Retirement for Public Safety Officer Members. 4.1010.1 Payments Upon Death of Airport Peace Officer Member, Airport Peace Officer Former Member, or Airport Peace Officer Retired Member. 4.1010.2 Payments Upon Death of Public Safety Officer Member, Public Safety Officer Former Member, or Public Safety Officer Retired Member. 4.1011 Benefits Payable Upon a Member's Death Before Retirement. 4.1012 Benefits Payable to an Eligible Survivor Upon a Retiree's Death. 4.1013 Benefits Payable to an Eligible Survivor Upon the Death of a Retiree with Service Prior to July 1, 1965. 4.1014 Election to Provide an Allowance to a Designated Beneficiary Upon the Retiree's Death. 4.1015 Election to Provide an Optional Allowance to Specified Survivors Upon a Retiree's Death. 4.1016 Right to Elect Life Annuity with No Refund of Contributions. 4.1017 Back Contributions. 4.1018 Redeposit of Formerly Withdrawn Contributions. 4.1020 Government Service Buy Back Program. 4.1020.1 Purchase of Service with WPERP. 4.1029 Provision Required to Comply with Internal Revenue Code Section 401(a)(37) and the Heroes Earnings Assistance and Relief Tax Act of 2008 § 104(a). 4.1030 Provision Required to Comply With Internal Revenue Code Section 401(a)(9). 4.1030.1 Provisions Required for Retirement System Compliance with the Internal Revenue Code. 4.1031 Former Spouse or Domestic Partner's Option to Elect a Life Annuity.

This Article sets forth the benefits and conditions of entitlement that have been established for persons who are members of Tier 1 of the Los Angeles City Employees’ Retirement System (LACERS) and for their beneficiaries. These benefits may be modified and the conditions of entitlement changed by ordinance as authorized in Section 1168 of the City Charter.

It is also the purpose of this Article to demonstrate the intent of the City of Los Angeles, through its governing bodies, to promote the

improvement of personnel management and employer-employee relations by enacting from time to time such ordinances as may legally be adopted under the authority of Section 1168 of the City Charter whenever Memorandums of Understanding and other agreements, duly executed by all parties thereto and approved by the City Council, require by their terms presentation to the City Council of ordinances changing retirement benefits or conditions of entitlement thereto.

The Retirement System is established, as may be amended from time to time, as a qualified defined benefit plan intended to satisfy the provisions of Section 401(a) of the Internal Revenue Code as applicable under Section 414(d) of the Internal Revenue Code for a governmental plan and such other applicable provisions of the Internal Revenue Code, Treasury regulations, or other guidance.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Third para. added, Ord. No. 183,456, Eff. 3-4-15.

(a) For the purposes of Article 1 of Chapter 10 and Article 2 of Chapter 11 of Division 4 of the Los Angeles Administrative Code, the following words and phrases shall have the meaning ascribed to them in this section unless elsewhere defined:

Accumulated Contributions. The total of the amounts paid into the Retirement Fund by the Member and any regular interest credited to the Member’s account, as provided in Charter Section 1162(b).

Active Employee. A person who currently is employed by any City department. This definition does not include a person who has terminated employment with the City for any reason.

Airport Peace Officer Member. A Member of Tier 1 of the Retirement System who: (i) while a City employee and on their retirement date was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1 and was appointed to that position before January 7, 2018; or (ii) on their retirement date was employed by the Fire Department as a firefighter, was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1, and served as a firefighter for the Fire Department from the date of appointment until the date of retirement. An Airport Peace Officer Member shall include an individual who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8). Notwithstanding anything in this subsection or elsewhere in this Code to the contrary, an Airport Peace Officer Member shall be ineligible for any enhanced benefits under Sections 4.1007(a), 4.1008.1, and 4.1010.1, and shall revert to status as a Tier 1 Member, if LACERS did not receive a lump sum payment of $5,700, by cashier’s check, on a post-tax basis, before January 8, 2019, or prior to the Member’s retirement date, whichever was earlier.

Airport Peace Officer Former Member. A former Member of Tier 1 of the Retirement System who was eligible for, and elected to, remain in LACERS rather than transfer to LAFPP under Charter Section 1704 and Section 4.1002(e) and who: (i) while a City employee and on the date that they separated from City service or ceased to be a Member of the Retirement System was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1 and was appointed to that position before January 7, 2018; or (ii) on the date they separated from City service or ceased to be a Member of the Retirement System was employed by the Fire Department as a firefighter, was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1, and served as a firefighter for the Fire Department from the date of appointment until the date of separation. Notwithstanding anything in this subsection or elsewhere in this Code to the contrary, an Airport Peace Officer Former Member shall be ineligible for any enhanced benefits under Sections 4.1007(a), 4.1008.1, and 4.1010.1, and shall revert to status as a former Tier 1 Member or Tier 1 Member, as applicable, if LACERS did not receive a lump sum payment of $5,700, by cashier’s check, on a post-tax basis, before January 8, 2019, or prior to the Member’s retirement date, whichever was earlier.

Airport Peace Officer Retired Member. A Member of Tier 1 of the Retirement System who, on their retirement date: (i) was employed by the Department of Airports as a peace officer as defined in California Penal Code Section 830.1, and was appointed to that position before January 7, 2018; or (ii) was employed by the Fire Department as a firefighter, and was appointed to that position before January 7, 2018, directly following employment by the Department of Airports as a peace officer as defined by California Section 830.1; and (iii) had paid to LACERS the $5,700 mandatory additional contribution payment required by Section 4.1002(e)(2).

An Airport Peace Officer Retired Member shall include an individual who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8).

Annuity. Payments for life derived from the Accumulated Contributions of a Member as provided in this Article.

Base Amount. That portion of a Retirement Allowance resulting if cost of living amount is deducted therefrom.

Beneficiary. A person entitled to receive a benefit from the Retirement System.

Board of Administration or Board. The Board of Administration for the Los Angeles City Employees’ Retirement System established in Charter Section 1104(b).

City Service or Service. Only those periods during which a Member received compensation from the City as an employee or during which the Member not only received Workers’ Compensation benefits (Div. IV, California Labor Code) for temporary disability on account of any injury or illness arising out of and in the course of employment with the City, but for which the Member also made contributions to the Retirement Fund as provided in Charter Section 1162. Notwithstanding the foregoing, a Member shall be entitled, at the time of death or retirement, to receive credit for their years of service from the date such Member entered employment with the City of Los Angeles in a capacity that would entitle the Member to membership in the Retirement System.

City Service Credit or Service Credit. The time component of the formula used by the Retirement System for purposes of calculating benefits pursuant to applicable Los Angeles Administrative Code and Board Rules.

Compensation Earnable. The full salary, wage or compensation established for any position or office in City service for the particular period involved in any calculation required.

Continuous Service. Uninterrupted City Service except that discontinuance of such service of a Member for any cause whatever, followed by re-entrance into City Service within three years from the date of such discontinuance, shall not be considered as a break in the continuity of service.

Cost of Living Amount. That portion of a Retirement Allowance resulting from adjustments made pursuant to Section 4.1022.

Dependent Parent. A person whom the Board of Administration, upon investigation and after a hearing in the matter, shall find is the parent of a Member to or for whom the Member, during the last year of the Member’s service, contributed at least one-half the necessary living expenses.

Domestic Partner. A person who has formed a valid domestic partnership by filing a Declaration of Domestic Partnership with the Retirement System, as authorized in Section 4.1009 herein, or with the State of California, as authorized in Family Code Section 298.5, or a person who has established a legal union which was validly formed in another jurisdiction that is substantially equivalent to a domestic partnership, as provided in Family Code Section 299.2. Domestic Partner shall not include a person who has established a domestic partnership pursuant to any other authority, unless expressly otherwise provided in this article. A partnership shall be established, for purposes of this article, on the date of the filing with the Retirement System or state.

Employee. Every person in the employ or service of the City of Los Angeles in any capacity or rank whatever at a regular salary, wage or compensation, and regardless of whether the position held by any such person is classified as an office or employment.

Fire and Police Pension Plan or LAFPP. The retirement plan for sworn members established in Article XI, Part 3 of the Los Angeles City Charter.

Larger Annuity. The annuity funded entirely by the Member as provided in Section 4.1021.

LACERS Peace Officer Former Member. A former Member of the Retirement System who is an Active Employee of the Police Department on and as of January 12, 2025; transferred to Tier 6 pursuant to Charter Section 1703 and Section 4.2214 of this Code; has Service remaining with the Retirement System; serves as a sworn peace officer pursuant to California Penal Code Section 830.1; performs police duties; and belongs to one of the following class codes: 2214-1, 2214-2, 2214-3, 2217, 2223-1, 2223-2, 2223-3, 2227- 1, 2227-2, 2232-1, 2232-2, 2244-1, 2244-2, 2244-3, 2251, 2262-1, 2262-2, 3188-1, 3188-2, 3183-1, 3183- 2, or 3183-3. An employee in Class Code 2112 is not a LACERS Peace Officer Former Member for the purposes of this definition.

LACERS Peace Officer Member. A Member of the Retirement System who, on and as of January 12, 2025, is an Active Employee of the Police Department , the Department of Airports, the Harbor Department, or the Department of Recreation and Parks; serves as a sworn peace officer pursuant to California Penal Code Section 830.1 or Section 830.31; performs police or firefighting duties; and belongs to one of the following class codes: 1968-0, 1966-0,1967-1, 1967-2, 2214-1, 2214-2, 2214-3, 2217, 2223-1, 2223- 2, 2223-3, 2227-1, 2227-2, 2232-1, 2232-2, 2244-1, 2244-2, 2244-3, 2251, 2262-1, 2262-2, 3188-1, 3188-2, 3183-1, 3183-2, 3183-3, 3221-1, 3221-F, 3221-2, 3238-0, 3221-3, 3222-0, 3225-1, 3225-F, 3225-2, 3225-3, 3333-0, 3185-0, 3226-0, 3227-0, 3228-0, 3205, 3234, 3233, or 3232. An employee in Class Code 2112 is not a LACERS Peace Officer Member for the purposes of this definition.

LACERS Peace Officer Retired Member. A retired Member of the Retirement System who elected to remain in the Retirement System and not to transfer to Tier 6, though the Member was eligible to participate in the LACERS Peace Officer Transfer Program because the Member was, on and as of January 12, 2025, an Active Employee of the Police Department, the Department of Airports, the Harbor Department, or the Department of Recreation and Parks; served as a sworn peace officer pursuant to California Penal Code Section 830.1 or Section 830.31; performed police or firefighting duties; and belonged to one of the following class codes: 1968-0, 1966-0, 1967-1, 1967-2, 2214-1, 2214-2, 2214-3, 2217, 2223-1, 2223-2, 2223-3, 2227-1, 2227-2, 2232-1, 2232-2, 2244-1, 2244-2,

2244-3, 2251, 2262-1, 2262-2, 3188-1, 3188-2, 3183-1, 3183-2, 3183-3, 3221-1, 3221-F, 3221-2, 3238-0, 3221-3, 3222-0, 3225-1, 3225-F, 3225-2, 3225-3, 3333-0, 3185-0, 3226-0, 3227-0, 3228-0, 3205, 3234, 3233, or 3232. An employee in Class Code 2112 is not a LACERS Peace Officer Retired Member for the purposes of this definition.

LACERS Peace Officer Transfer Program. The voluntary program that allows LACERS Peace Officer Members and LACERS Peace Officer Former Members who are Active Employees on and as of January 12, 2025, to transfer membership and/or LACERS Service from LACERS to Tier 6.

Member or Tier 1 Member. An employee of the City of Los Angeles who meets the membership requirements contained in Section 4.1002 of this article. Member, as used in this article, shall mean a Member of Tier 1 unless otherwise specified. Notwithstanding the foregoing, a person who is no longer employed by the City, but who qualifies for reciprocity under Section 4.1096 and whose Tier 1 member contributions remain on deposit with the Retirement Fund may be considered to be a Member, but only to the limited extent necessary to comply with the reciprocity provisions contained in Section 4.1096.

Operative Date. Shall mean the “effective date”, unless a different date is specified by any ordinance adopted pursuant to the

provisions of Charter Section 1168.

Public Safety Officer Member. The following definition shall apply only to Article 1 of Chapter 10 of this Code. A Member of

Tier 1 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Member also shall include an Airport Peace Officer Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019, in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1, and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Public Safety Officer Former Member. The following definition shall apply only to Article 1 of Chapter 10 of this Code. A former Member of Tier 1 of the Retirement System who while a City employee and on the date that they separated from City Service or ceased to be a Member of the Retirement System, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Former Member also shall include an Airport Peace Officer Former Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019, in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Former Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Public Safety Officer Retired Member. The following definition shall apply only to Article 1 of Chapter 10 of this Code. A retired Member of Tier 1 of the Retirement System who while a City employee and on their retirement date, which shall occur on or after March 25, 2022, was employed by the Police Department, Harbor Department, or Recreation and Parks Department as a peace officer as defined in California Penal Code Section 830.1 or Section 830.31. Public Safety Officer Retired Member also shall include an Airport Peace Officer Retired Member who elected not to make a one-time lump sum payment of $5,700 on or before January 8, 2019, in exchange for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1 as set forth in Section 4.1002(e)(2). To the extent a Public Safety Officer Retired Member qualifies retroactively for the enhanced benefits provided for in Sections 4.1008.2 and 4.1010.2, LACERS will adjust those benefits accordingly.

Regular Interest. Interest credited to the individual account of each Member as provided in Charter Section 1162(b).

Reserve Basis. A system that provides for the accumulation and maintenance of a fund that will at all times be equal to the

difference between the present value of the obligations assumed and the present value of the money to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of money with which they are to be paid.

Retirement Allowance or Allowance. An allowance granted under this article, except for those allowances granted pursuant to Section 4.1010(a)(2), together with all subsequent adjustments thereto.

Retired Member or Retired Tier 1 Member. A former Member who is receiving a monthly benefit from Tier 1 of the Retirement System. A retired Member shall not be considered a Member for purposes of this article and, if re-employed as authorized in Charter Section 1164, shall continue to be a retired Member.

Retirement Fund. The trust fund established for the Retirement System in Charter Section 1154.

Retirement System or System. The Los Angeles City Employees’ Retirement System (LACERS).

Spouse. A person who is a party to a valid marriage.

Tier 6. The Tier of the Fire and Police Pension Plan established in Charter Sections 1700 - 1726.

(b) Wherever the phrase “Final Compensation” is used in this Article, it shall, unless a different meaning is clearly indicated by the context, have the following meaning:

The final compensation of every member shall be calculated upon an annual compensation earnable of the member during the member’s last twelve (12) months of service or during any other twelve (12) consecutive months of service which the member shall designate.

Compensation which is to be included in Final Compensation shall be limited to base salary and regularly assigned bonuses or premium pay. Payments of money to be included in the calculation of Final Compensation are limited, prior to July 1, 2000, to payments designated as salary by an ordinance of the City or, effective July 1, 2000, to payments designated as salary by an ordinance of the City or a memorandum of understanding; all other payments of money not so designated shall not be included in the calculation of Final Compensation. Compensation which shall not be included in the calculation of Final Compensation shall include, but not be limited to, overtime, daily and other non- regularly assigned bonuses, reimbursements, car allowances, uniform allowances, payments in lieu of benefits or cash-out of benefits and other forms of compensation.

With respect to an employee who begins membership in the Retirement System after June 30, 1996, compensation taken into account in any Plan year may not exceed the annual compensation limits established under Internal Revenue Code Section 401(a)(17), as adjusted for increases in the cost of living in accordance with Internal Revenue Code Section 401(a)(17)(B).

(c) Whenever a reference is made in this Article to a specific section, such reference shall refer to a section contained in this Chapter, unless expressly indicated otherwise.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (a), Ord. No. 184,853, Eff. 4-6-17; Subsec. (a), Ord. No. 187,923, Eff. 7-9-23; Subsec. (a), Ord. No. 188,756, Eff. 11-16-25.

(a) Six Percent (6%) Contribution Rate. Beginning November 8, 2009, all members shall contribute by salary deduction to the Retirement Fund at the rate of six (6%) of the member’s compensation earnable, of which one-half percent (0.5%) shall be the survivor contribution portion, and the remaining five and a half percent (5.5%) shall be the normal contribution.

(b) Seven Percent (7%) Contribution Rate. Pursuant to the provisions of Section 4.1033(a)(9), commencing on July 1, 2011, and ending on June 30, 2026, or when the ERIP Cost Obligation is fully paid, whichever comes first, in lieu of contributing as provided in Subsection (a), above, all members shall contribute by salary deduction to the Retirement Fund at the rate of seven percent (7%) of the amount of the member’s compensation earnable, of which one-half percent (0.5%) shall be the survivor contribution portion and the remaining six and a half percent (6.5%) shall be the normal contribution.

(c) Additional Contributions. In addition to the contributions required pursuant to Subsection (a) or (b) herein, as applicable, certain

members shall make additional normal contributions to the Retirement Fund as provided herein. In consideration for such additional contributions, these members shall receive the benefit set forth in Section 4.1111(c) of Article 2 of Chapter 11 of Division 4 of this Code. The City Administrative Officer shall notify the Retirement System and the Controller of the specific Memoranda of Understanding (MOUs) which require members to contribute as provided herein, and shall also provide the Retirement System and Controller with the names of all members who are non-represented employees, including elected officials. Because the benefit conferred by the aforesaid Section 4.1111(c) is a vested benefit, a member who is employed in a position requiring the payment of additional contributions to the Retirement Fund as provided in this subsection shall continue to make additional contributions to the Retirement Fund for so long as that member is a member, notwithstanding that the member may subsequently transfer to a position that does not require the payment of the additional contributions.

(1) Members subject to specific MOUs shall contribute by salary deduction to the Retirement Fund an additional two percent (2%)

of the member’s compensation earnable retroactive to April 24, 2011, and ongoing. Further, such members shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable commencing on July 1, 2011, and ongoing, for a total additional contribution of four percent (4%) effective July 1, 2011, and ongoing.

(2) Members subject to other specific MOUs shall contribute by salary deduction to the Retirement Fund an additional four percent

(4%) of the member’s compensation earnable retroactive to July 1, 2011, and ongoing.

(3) Members who are subject to other specific MOUs and members who are non-represented employees, including elected officials, shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable retroactive to July 1, 2011, and ongoing. Further, such members shall contribute by salary deduction to the Retirement Fund an additional two percent (2%) of the member’s compensation earnable commencing on January 1, 2013, and ongoing, for a total additional contribution of four percent (4%) effective January 1, 2013, and ongoing.

(4) Members subject to other specific MOUs shall contribute by salary deduction to the Retirement Fund an additional one percent

(1%) of the member’s compensation earnable retroactive to February 9, 2014, and ongoing, and an additional three percent (3%) of the member’s compensation earnable commencing on June 29, 2016, and ongoing, for a total additional contribution of four percent (4%) effective June 29, 2016, and ongoing.

(d) Pick Up of Employee Contributions. All contributions paid pursuant to this section shall be deposited in each member’s individual account as provided in Charter Section 1162. The City shall pick up all employee contributions payable by salary deduction pursuant to this section as provided in Sections 4.1500 through 4.1504 of Chapter 15 of Division 4 of this Code.

(e) Prior Defrayal of Age-based Contributions. Prior to November 8, 2009, certain members paid age-based contributions to the

Retirement System, which were reduced by a defrayal in which the City, or the member’s employing department, paid contributions (referred to hereafter as City defrayal funds) sufficient to equal the amount by which the employee contributions were reduced, subject to certain discounts. When a member’s contributions have been reduced by defrayal, the following conditions shall continue to apply:

(1) City defrayal funds shall not be credited to the members’ individual accounts nor shall such funds be refundable to any member,
former member or beneficiary of a former member; and such funds shall not be included in the calculation of any annuity representing
the actuarial equivalent of accumulated contributions wherever the provisions of this Code require such calculation.

(2) City defrayal funds shall not be returned to any funds of the City from which they were appropriated except to adjust for
incorrect payments.

(3) Defrayal of employee contributions by the City shall not apply to or affect the amount of a member’s liability for back contributions, Family Death Benefit Plan contributions, additional contributions towards a Larger Annuity, or re-deposits of formerly withdrawn contributions; provided, however, that re-deposits of a member’s contributions, withdrawn during or after any period of City service for which the City defrayed any portion of the member’s contributions, shall not include the amounts so defrayed. If a member’s liability for back contributions involves any period in which the member would have been obligated, under former provisions of this Chapter, to make age-based contributions, the member’s liability for back contributions shall be computed based upon the former provisions of this Chapter that were applicable at that time.

(4) Any amounts of employees’ contributions defrayed by the City shall not be includable in the determination of “Compensation Earnable” or “Final Compensation.”

(f) Notwithstanding any language in this Section 4.1003 to the contrary, an Airport Peace Officer Member, including an Airport Peace Officer Member who became a Member of Tier 1 of the Retirement System pursuant to Section 4.1080.2(b)(8), who elected to remain in the Retirement System rather than transfer to LAFPP Tier 6 pursuant to Charter Section 1704 and Sections 4.1002(e) and 4.2215 of this Code shall, to the extent required by the Internal Revenue Code, continue to make member contributions in the manner applicable to the Airport Peace Officer Member’s membership without regard to the irrevocable election to remain in LACERS. If this Section 4.1003 would otherwise require additional member contributions by such Airport Peace Officer Member, such additional member contributions shall be made on an after- tax basis to the extent required by the Internal Revenue Code. If this Section 4.1003 would otherwise require member contributions at a rate that is lower than the rate applicable to the Airport Peace Officer Member’s LACERS membership, the Council may, subject to applicable provisions of the Charter and this Code, provide for a larger annuity benefit at the time of retirement for such Airport Peace Officer Member to reflect the additional contribution amounts, as determined by the System’s actuary and subject to all limitations of the Internal Revenue Code.

(g) Notwithstanding any language in this Section 4.1003 to the contrary, a LACERS Peace Officer Member who opted to remain in the Retirement System rather than transfer to Tier 6 pursuant to Charter Section 1709 and Sections 4.1002(f) and 4.2216 of this Code shall, to the extent required by the Internal Revenue Code, continue to make member contributions in the manner applicable to the LACERS Peace Officer Member’s membership without regard to the irrevocable election to remain in LACERS. If this Section 4.1003 would otherwise require additional member contributions by such LACERS Peace Officer Member, such additional member contributions shall be made on an after- tax basis to the extent required by the Internal Revenue Code. If Section 4.1003 would otherwise require member contributions at a rate that is lower than the rate applicable to the LACERS Peace Officer Member’s membership in LACERS, the Council may, subject to applicable provisions of the Charter and this Code, provide for a larger annuity benefit at the time of retirement for such LACERS Peace Officer Member to reflect the additional contribution amounts, as determined by the System’s actuary and subject to all limitations of the Internal Revenue Code.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (c)(4) added, Ord. No. 183,006, Eff. 5-5-14; Subsec. (f) added, Ord. No. 184,853, Eff. 4-6-17; Subsec. (g) added, Ord. No. 188,756, Eff. 11-16-25.

Former member shall include both a City employee who ceases to be a member upon separating from City service and a City employee who continues to be employed by the City, but ceases to be a member of the Retirement System. For purposes of this section, former member shall not include a retired member who is receiving any retirement allowance provided in this Article.

(a) Refund of Contributions. A former member shall be paid their accumulated contributions upon written demand made to the Board of Administration. Contributions, however, shall not be refunded to a former member who is employed in any capacity by the City unless such a refund is permitted under federal law. After a former member’s contributions have been refunded, the former member shall have no right to any benefits provided by the Retirement System.

(b) Contributions Remain in the Fund. A former member may permit their accumulated contributions to remain in the fund.

A former member whose contributions remain on deposit and who qualifies for deferred service retirement may apply to retire as provided in Section 4.1006. If such former member fails to file a written retirement application prior to attaining age seventy and a half (70 1/2), the Retirement System, pursuant to rules to be adopted by the Board of Administration, shall make such mandatory minimum distributions as are required by the Internal Revenue Code.

If a former member does not have sufficient years of continuous service so as to be entitled to a deferred service retirement and fails to request a refund of contributions pursuant to Subsection (a), above, within ten (10) years from the date the former member’s membership terminated or from the date the former member was last employed by the City, whichever occurs later, the former member’s accumulated contributions shall be forfeited to the Retirement Fund, provided that the former member(1) shall be relieved from such forfeiture upon returning to membership in the System, at which time said funds shall be returned to the former member’s individual account pursuant to rules to be adopted by the Board of Administration, or (2) shall be relieved from such forfeiture upon the making of a valid claim therefor determined at the sole discretion of the Board of Administration. If any such former member attains age seventy and a half 70 1/2 with contributions still on deposit in the former member’s account, the Retirement System, pursuant to rules to be adopted by the Board of Administration, shall make such mandatory minimum distributions as are required by the Internal Revenue Code.

If mandatory minimum distributions cannot be paid to a former member for any reason, such as the former member’s failure to cooperate or where the former member’s whereabouts is unknown and the Retirement System has followed Internal Revenue Service procedures to locate the former member, then such funds shall be forfeited to the Retirement Fund, provided that the former member shall be relieved from such forfeiture upon the making of a valid claim therefor, determined at the sole discretion of the Board of Administration.

In the event that a former member whose contributions or other benefits have been forfeited pursuant to this subsection is deceased, any person or entity who would be entitled to the payment of the former member’s funds upon the former member’s death may make a claim for relief from forfeiture on the deceased’s behalf.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Full Retirement. A member shall be eligible to retire with a full (unreduced) retirement allowance:

(1) After reaching age fifty-five (55) with thirty (30) or more years of City service;

(2) After reaching age sixty (60) with ten (10) or more years of continuous City service;

(3) At age seventy (70) or older, regardless of length of City service.

(b) Early Retirement. A member shall be eligible to retire with an age-based reduced retirement allowance:

(1) After reaching age fifty-five (55) with ten (10) or more years of continuous City service;

(2) At any age with thirty (30) or more years of City service.

(c) Continuous Service Requirement. Where ten (10) years of continuous City service is required to qualify for retirement under this section, a minimum of five (5) years of such continuous service shall be actual service with the City. Service purchased under Section 4.1020 shall not count toward establishing the minimum five (5) years of continuous service based on actual service with the City. None of the service purchased under Section 4.1019 shall count toward establishing the minimum ten years of continuous City service required for retirement under this section. The requirement for ten years of continuous City service set forth in this section, however, may be satisfied based upon service with a reciprocal system to the extent necessary to comply with the provisions of Section 4.1096.

(d) Application Requirements. A Tier 1 member who is eligible for full or early retirement may file a service retirement application with the Board of Administration specifying a retirement date. The application shall be filed not less than thirty (30), nor more than sixty (60), days prior to the requested retirement date, except as follows:

(1) In the event a member has been notified by the City that the member will be laid off, an application that is filed less than thirty (30) days in advance shall be accepted provided it is filed with the Board while the member is still employed, specifies a retirement

date prior to the member’s termination, and shall not be effective earlier than the date on which it is filed.

(2) So long as the Resolution of Fiscal Emergency adopted by the City Council on May 18, 2009 (Council file No. 09-0600-S8) has

been extended in successive periods of ninety (90) days each by written notification from the Mayor to LACERS and continues in effect, as amended or revised from time to time, and the Mayor determines that the City’s fiscal condition so warrants, an application less than thirty (30) days in advance shall be accepted provided it shall not be effective earlier than the date on which it is filed.

(e) WPERP Service. All of the member’s service with the Water and Power Employees’ Retirement Plan (WPERP) shall be combined with LACERS service solely for the purpose of determining retirement eligibility under this section. All WPERP service, except WPERP service based on the purchase of Other Government Service (OGS) and noncontributory WPERP service, may count towards the minimum five (5) years of continuous City service based on actual service with the City requirement and towards the ten (10) years of continuous City service requirement, as applicable.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (e) added, Ord. No. 182,824, Eff. 12-19-13.

(a) Eligibility for Deferred Retirement. In order to be eligible for deferred service retirement, a former member’s Tier 1 contributions must remain in the Retirement Fund, and the former member must have five (5) or more years of continuous City service or satisfy the part- time employee exception set forth below.

(1) Full Retirement. To retire with a full (unreduced) retirement allowance, the former member must be:

(i) Age 55 or older with thirty (30) years of service; or

(ii) Age 60 or older and ten (10) years must have elapsed since the former member first became a member; or

(iii) Age seventy (70) or older.

(2) Early Retirement. A former Member who is not yet 60 may retire with an age-based reduced retirement allowance at age 55 or older, provided 10 years must have elapsed since the former member first became a member.

A former Member does not need to have five years of continuous service if the former Member has been a member while employed for any period of time as a part-time employee whose membership terminates for any reason on or after October 18, 1993.

(b) Continuous Service Requirement. Service purchased under Sections 4.1019 and 4.1020 shall not count toward establishing the

minimum five (5) years of continuous City service required for retirement under this section. The requirement for five (5) years of continuous City service set forth in this section, however, may be satisfied based upon service with a reciprocal system to the extent necessary to comply with the provisions of Section 4.1096.

(c) Application Requirements. A former member of Tier 1 who is eligible for deferred service retirement must notify the Retirement System, in writing, when the former member wants to retire, provided that the date of the former member’s retirement may not be earlier than the date that the written notification is received by the System.

(d) WPERP Service. All of the member’s service with the Water and Power Employees’ Retirement Plan (WPERP) shall be combined with LACERS service solely for the purpose of determining retirement eligibility under this section. All WPERP service, except WPERP service based on the purchase of Other Government Service (OGS) and noncontributory WPERP service, may count towards the minimum five (5) years of continuous City service, as applicable. Further, the date that the member first became a member of WPERP may be used to satisfy the requirement that ten (10) years must have elapsed since the member first became a member.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (d) added, Ord. No. 182,824, Eff. 12-19-13; Subsec. (a)(1), Ord. No. 184,853, Eff. 4-6-17; Subsec. (a)(2), Ord. No. 188,756, Eff. 11- 16-25.

(a) Tier 1 Formula and Enhanced Tier 1 Formula for Airport Peace Officer Members and Airport Peace Officer Former Members. A Member who retires pursuant to the provisions of Section 4.1006 or Section 4.1007 shall receive a service retirement allowance calculated pursuant to the following Tier 1 Formula (formerly the Beta Formula): 2.16 percent (.0216) of the Member’s Final Compensation, calculated as of the date of retirement, multiplied by the number of years and parts thereof of the Member’s Service Credit, subject to applicable adjustments as provided below. An Airport Peace Officer Member or Airport Peace Officer Former Member who retires on or after

January 7, 2018, shall receive a service retirement allowance calculated pursuant to the following Enhanced Tier 1 Formula: 2.30 percent (.023) of the Member’s Final Compensation, calculated as of the date of retirement, multiplied by the number of years and parts thereof of the Member’s Service Credit, subject to applicable adjustments as provided below. Each retirement allowance as so calculated shall be allocated between the following two components: (1) an annuity which shall be the actuarial equivalent of the Member’s accumulated contributions at the time of retirement (excluding any additional contributions paid to provide a larger annuity at the time of retirement), calculated in accordance with approved actuarial methods as of the date of retirement; and (2) a pension, in the amount of the remaining balance, payable to the retiree on account of the retiree’s service.

The retirement allowance as so calculated shall be subject to the following adjustments, if applicable:

(1) Where the retiree’s allowance is subject to an age-based reduction, the adjustment provided in Subsection (b) of this section.

(2) If the retiree had been on disability retirement, the retiree’s service retirement allowance shall be reduced by an amount equal to
the annuity which the total of the disability annuity payments made to the retiree would have provided had they still been part of the
retiree’s accumulated contributions at the time of retirement.

(3) If the retiree received any minimum distribution required by the Internal Revenue Code, the retiree’s service retirement
allowance shall be subject to adjustment as provided in rules to be adopted by the Board of Administration.

(4) The retiree may be entitled to a minimum pension of fifty percent (50%) of the amount determined pursuant to the aforesaid Tier 1 Formula. (The annuity portion of the retirement allowance shall not be changed as a result of the testing required in this provision.) This testing uses the retiree’s Tier 1 Formula entitlement and the pension and annuity entitlement amounts, as calculated above, provided that such shall be adjusted, if applicable, to: (i) exclude Service Credit purchased under Sections 4.1019 and 4.1020, and the annuity calculation shall likewise exclude accumulated contributions attributable to these purchases; and (ii) the annuity calculation, for members who made back contributions under either Section 4.1017(b) or Section 4.1017(c), shall exclude accumulated contributions in the person’s account which are attributable to matching contributions paid by the City in the prior plan. The purpose of this testing is to determine if, absent such purchases or matching City contributions, the pension would have required an increase to provide a minimum pension of fifty percent (50%) of the amount of the retiree’s Tier 1 Formula entitlement. If such test determines that an adjustment is in order, the pension portion of the retiree’s retirement allowance shall be increased by the same amount as the increase that the test determined would be necessary to provide a minimum pension of fifty percent (50%), and the total retirement allowance payable shall be increased accordingly (with the annuity portion remaining unchanged).

(b) Age-Based Reduction Factors. An age-based reduction shall be made by multiplying the retirement allowance by the factor set forth in the table below corresponding to the retiree’s age, taken to the completed quarter year.

EARLY RETIREMENT REDUCTION FACTORS

FOR 2.16 PERCENT FORMULA

45 0.6250 45 1/4 0.6325 45 1/2 0.6400 45 3/4 0.6475 46 0.6550 46 1/4 0.6625 46 1/2 0.6700

46 3/4 0.6775 47 0.6850 47 1/4 0.6925 47 1/2 0.7000 47 3/4 0.7075 48 0.7150 48 1/4 0.7225 48 1/2 0.7300 48 3/4 0.7375 49 0.7450 49 1/4 0.7525 49 1/2 0.7600 49 3/4 0.7675 50 0.7750 50 1/4 0.7825 50 1/2 0.7900 50 3/4 0.7975

51 0.8050 51 1/4 0.8125 51 1/2 0.8200 51 3/4 0.8275 52 0.8350 52 1/4 0.8425 52 1/2 0.8500 52 3/4 0.8575 53 0.8650 53 1/4 0.8725 53 1/2 0.8800 53 3/4 0.8875 54 0.8950 54 1/4 0.9025 54 1/2 0.9100 54 3/4 0.9175 55 0.9250 55 1/4 0.92875 55 1/2 0.93250 55 3/4 0.93625 56 0.94000 56 1/4 0.94375 56 1/2 0.94750 56 3/4 0.95125 57 0.95500 57 1/4 0.95875 57 1/2 0.96250 57 3/4 0.96625 58 0.97000 58 1/4 0.97375 58 1/2 0.97750 58 3/4 0.98125 59 0.98500 59 1/4 0.98875 59 1/2 0.99250 59 3/4 0.99625 60 and over 1.00

(c) Cap on Allowances. Service retirement allowances granted pursuant to Subsection (a) of this section may never exceed a member’s “Final Compensation.”

(d) WPERP Service Credit. Service credit with the Water and Power Employees’ Retirement Plan (WPERP) shall not be included in the calculation of the member’s retirement allowance pursuant to Subsection (a) of this section unless the member has purchased credit for this WPERP service with the Retirement System or unless such service credit was transferred to the Retirement System pursuant to reciprocity under current Section 4.1095 or prior Section 4.1060.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (d) added, Ord. No. 182,824, Eff. 12-19-13; Subsec. (a), Ord. No. 184,853, Eff. 4-6-17.

(a) Establishment of Domestic Partnerships with LACERS. Domestic partners are two adults who have chosen to share one another’s lives in an intimate and committed relationship of mutual caring. A domestic partnership shall be established for purposes of this Article when both partners file a Declaration of Domestic Partnership with the Board, provided all the following requirements are met:

(1) Both persons agree to be jointly responsible for each other’s basic living expenses incurred during the domestic partnership.

(2) Neither person is married or a member of another domestic partnership.

(3) The two persons are not related by blood in a way that would prevent them from being married to each other in this State.

(4) Both persons are at least eighteen (18) years of age.

(5) Both persons may be of the same sex or the opposite sex.

(6) Both persons are capable of consenting to the domestic partnership.

An Affidavit of Domestic Partnership filed prior to July 1, 2000, with the Board shall be treated for all purposes of this Article as being the same as a Declaration of Domestic Partnership filed pursuant to this subsection.

(b) Termination of Domestic Partnerships with LACERS. Once a domestic partnership is established as provided above, this domestic partnership shall be terminated when any of the following occurs:

(1) One partner gives, or sends by certified mail, to the other partner a written notice that the partner is terminating the partnership.

(2) One of the domestic partners dies.

(3) One of the domestic partners marries.

Upon termination of a domestic partnership, at least one of the former partners shall file a Notice of Termination of Domestic Partnership with the Board, provided that failure to file such notice shall not prevent the termination of the domestic partnership. This provision shall apply both to partnerships established on or after July 1, 2000 by the filing of a Declaration of Domestic Partnership and to partnerships established prior to July 1, 2000, by the filing of an Affidavit of Domestic Partnership.

(c) Six Month Prohibition. No person who has established a domestic partnership, by filing either an Affidavit of Domestic Partnership or a Declaration of Domestic Partnership with the Board, may file a new Declaration of Domestic Partnership with the Board until at least six (6) months after the date that a Notice of Termination of Domestic Partnership was filed with the Board as provided herein. This prohibition does not apply if the previous domestic partnership ended because one of the partners died or married.

(d) Board Authority to Establish Earlier Filing Date. Where a Declaration of Domestic Partnership is required to be on file with the Board for at least one (1) year, the Board may establish an earlier filing date than the actual date that the parties filed their Declaration of Domestic Partnership with the Board upon sufficient proof that the parties have an Affidavit or Declaration of Domestic Partnership on file earlier with the Personnel Department.

(e) Death Prior to Filing. Should a member die prior to filing a Declaration of Domestic Partnership with the Board, but (1) have a current domestic partner based upon an earlier established domestic partnership with the Personnel Department, and (2) have a beneficiary designation on file with the Board that designates that domestic partner as the beneficiary entitled to receive all of the member’s contributions, then such domestic partner shall be entitled to receive the same benefits that the domestic partner would have received had their domestic partnership been filed with the Board, as provided herein, on the date that the parties filed their Affidavit or Declaration of Domestic Partnership with the Personnel Department.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Definitions. As used in this section, the following words and phrases shall have the meaning ascribed to them in this paragraph:

Duty Related Death shall mean the death of a member caused by illness or injury, either of which arose out of the performance of the member’s duties as an employee of the City of Los Angeles.

Non-Duty Related Death shall mean a member’s death which occurred due to illness or injury not arising out of the member’s performance of the member’s duties as an employee of the City of Los Angeles.

Eligible Surviving Spouse shall mean the person who was married to the member at the time of the member’s death and who is

entitled to be paid, against the claims or demands of any and all other persons thereto, the full amount of such member’s accumulated contributions.

Eligible Surviving Domestic Partner shall mean the person who was the domestic partner of the member at the time of the

member’s death and who is entitled to be paid, against the claims or demands of any and all other persons thereto, the full amount of such member’s accumulated contributions.

Eligible Survivor shall refer to a person who is either an Eligible Surviving Spouse or Eligible Surviving Domestic Partner, as

defined in this subsection.

(b) Duty Related Death of a Member Who Does Not Have Five (5) Years of Continuous Service. If a member, who at the time of a Duty Related Death was not eligible for a disability retirement allowance pursuant to the provisions of Section 4.1008, leaves an eligible survivor, the latter may elect to receive a monthly allowance equal to the disability retirement allowance benefit the member would have received, as provided in Section 4.1008, had the member completed five (5) years of continuous service and had the member been eligible for a disability retirement and had retired under a disability retirement on the day preceding the date of death and elected to receive the benefit as computed under the provisions of Section 4.1015(a)(1). In the event the member had completed less than twelve (12) months of service, the salary for the missing months shall be at the rate for the first month of service to arrive at the compensation earnable.

(c) Death of a Member Who Has Five (5) or More Years of Continuous Service. If, at the time of a Duty Related Death or Non-Duty Related Death, a member would have been eligible to receive a disability retirement allowance pursuant to Section 4.1008 and leaves an eligible survivor, the latter may elect to receive a monthly allowance equal to the amount the deceased member would have been entitled to if the member had been so retired on the day preceding the member’s death and elected to provide a continuing benefit under the provisions of Section 4.1015(a)(1).

(d) Calculation of Disability Survivorship Allowance. The one hundred percent (100%) disability survivorship allowance provided in Subsections (b) and (c) herein shall consist of an annuity based upon the eligible survivor’s age and the member’s total accumulated contributions, calculated in accordance with approved actuarial methods, supplemented by a pension to equal the remainder of the allowance so computed.

(e) Consequences of Election to Receive a Disability Survivorship Allowance. An eligible survivor who elects to receive the one

hundred percent (100%) disability survivorship allowance hereinabove provided in Subsections (b) and (c), by making this election shall waive their rights under Section 4.1010 to payment of a limited pension and to payment of all the member’s accumulated contributions and shall receive the benefits provided in this section in lieu thereof. Said eligible survivor shall also receive the benefits provided under the Family Death Benefit Plan, established in Section 4.1090, if said eligible survivor would otherwise have been entitled thereto.

(f) Election to Wait and Receive a Continuance of the Member’s Service Retirement Allowance (Member Not Eligible for

Retirement). If a member had completed five (5) or more years of continuous service with the City, but was not eligible to retire on a service retirement allowance on the date of the member’s death, the eligible survivor shall have the option of electing to wait until such time as the member would have been entitled to receive a service retirement allowance pursuant to the provisions of Section 4.1006, and shall then receive a retirement allowance equal to that which the member would have received had the member retired under the provisions of Section 4.1015(a)(1) on the day first eligible to receive such benefit. An eligible survivor who elects to wait and to receive the allowance provided herein shall have no rights under the provisions of Sections 4.1010(a); the benefits payable under this provision are provided in lieu of the payment of the member’s accumulated contributions and the limited pension provided in Section 4.1010(a). However, if an eligible survivor would otherwise have been entitled to the benefits provided under the Family Death Benefit Plan, an eligible survivor who exercises the option provided in this subsection shall receive the benefits provided in Section 4.1090, but only until such time as the optional benefit provided in this subsection shall become payable, at which time the eligible survivor’s entitlement to benefits under Section 4.1090 shall cease.

(g) Election to Receive a Continuance of the Member’s Service Retirement Allowance (Member Eligible for Retirement). If a

member was eligible to retire on a service retirement allowance on the date of the member’s death, Section 4.1010(a)(3) provides an optional retirement benefit for persons who otherwise qualify for said benefit.

(h) Election Under This Section Waives All Rights to Benefits Provided in Section 4.1010. The election by an eligible survivor to receive an allowance under the provisions of this section constitutes and includes a complete waiver of all rights the eligible survivor may have under Section 4.1010, including the right to payment of all the member’s accumulated contributions, both regular contributions and survivor contributions, as well as a waiver of the payment of the limited pension.

(i) Board Authority. The Board of Administration, with respect to the determination of whether death of a member was attributable to Duty Related causes or Non-Duty Related causes, shall have the power to make such determination based upon such evidence as may be presented to it.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

All current and former members of the Retirement System who are not entitled to credit for service rendered prior to July 1, 1965, shall, at the time of retirement, whether for service or disability, be eligible for the benefit provided in this section, provided they have an eligible survivor as defined in this section. Should any current, former or retired members be entitled to credit for service rendered prior to July 1, 1965, the rights of their survivors shall not be governed by this section, except as otherwise provided in Section 4.1013.

(a) Definitions. For purposes of this section, the following words and phrases are defined as follows:

Eligible Survivor shall include the following:

(1) The spouse of a retired member to whom such member is married at time of retirement and has been so married for at least one (1) year prior thereto, and further provided that said spouse is either the surviving spouse or surviving

domestic partner of the retired member at the time of the member’s death.

(2) The domestic partner of a retired member provided that at the time of the member’s retirement their domestic

partnership had been established for at least one (1) year, and further provided that said domestic partner is either the surviving domestic partner or surviving spouse of the retired member at the time of the member’s death.

Member shall only include a member who is not entitled to credit for service rendered prior to July 1, 1965, unless a member with pre-July 1, 1965 service, or such member’s eligible survivor, shall exercise the election provided in Sec. 4.1013(b) and pay the required survivor contributions.

Unmodified Allowance shall mean the total monthly retirement allowance payable to the member as of the date of retirement, calculated in accordance with the provisions of sections 4.1007, in the case of service retirement, and 4.1008, in the

case of disability retirement.

Joint and Survivor Cash Refund Annuity shall mean an annuity which shall be the actuarial equivalent of the member’s total accumulated contributions providing for equal monthly payments during the lifetime of such member and the eligible survivor, with payment of any unused contributions, as defined in Section 4.1010(c)(2), upon the death of the last survivor as

provided in that provision, calculated in accordance with approved actuarial methods as of the date of retirement.

(b) Survivor Contributions. Every member shall contribute by salary deduction at the rate of contribution established elsewhere in this Article on account of the benefit provided by this section. Said contributions shall be known and designated as survivor contributions and are in addition to the member’s normal contributions.

(c) Retirement with Eligible Survivor. Upon the retirement of a member having an eligible survivor, other than one selecting one of the options available under Section 4.1015, the annuity portion of such member’s retirement allowance shall be calculated as a joint and survivor cash refund annuity, and the amount of pension payable during the member’s lifetime shall be the excess of the member’s unmodified retirement allowance over such joint and survivor cash refund annuity.

Upon the death of a member survived by an eligible survivor, there shall be continued to such survivor a retirement allowance which shall consist of:

(1) The joint and survivor cash refund annuity paid during the member’s lifetime; and

(2) A pension amount payable during the lifetime of the eligible survivor, which shall be the excess of one-half (1/2) of the

unmodified allowance over said joint and survivor cash refund annuity.

(d) Retirement with No Eligible Survivor. Upon the retirement of a member having no eligible survivor at the time of retirement, the annuity portion of such member’s retirement allowance shall be calculated on the basis of the member’s normal accumulated contributions as opposed to the sum of the normal contributions and the survivor contributions taken pursuant to the provisions of this section. The excess of such member’s total accumulated contributions over the normal accumulated contributions at time of retirement shall be paid to such member, or at the member’s option, considered as additional contributions made to provide a larger annuity benefit.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Members Who Retired or Terminated Membership Prior to July 1, 1965.

(1) Member Retired Prior to July 1, 1965. A member who retired prior to July 1, 1965, pursuant to the provisions of former

Charter Sections 508 or 510, and who has a spouse to whom the member was married for at least one (1) year at the time of retirement (an eligible survivor for purposes of this subsection), may elect in writing to provide for a continuance of the member’s retirement allowance to said eligible survivor, which election shall be filed with the Board of Administration. In the event a retired member who is eligible to make the election herein provided should die prior to having made such election, the member’s eligible survivor shall have the right to so elect in the member’s stead and shall thereafter receive the continuance to survivor benefit as hereinafter provided.

Upon the death of a retired member who elected to provide for a continuance to the member’s eligible survivor, as provided in the preceding paragraph, there shall be continued to such survivor, provided the survivor is the deceased retiree’s surviving spouse or domestic partner, an allowance which shall consist of:

(i) An annuity equal to the amount of the annuity which was payable to the retired member during the member’s lifetime by

virtue of the member’s normal contributions; and

(ii) A pension amount payable during the lifetime of such survivor which shall be the difference between one-half (1/2) of

the member’s base amount excluding from said base amount any portion payable by virtue of additional contributions paid

towards a larger annuity, and the amount of said annuity.

(iii) A cost of living equal to one-half (1/2) the cost of living amount payable to the deceased member at the time of the

member’s death, after excluding therefrom any portion of said cost of living amount payable by virtue of additional contributions paid towards a larger annuity. All adjustments to the cost of living amount pursuant to this provision shall be subject to future adjustments as provided in Section 4.1022.

(2) Former Member Who Terminated Prior to July 1, 1965. Any former member who terminated prior to July 1, 1965, and who

elected the benefit of a “vested right” pension but has not made application for such pension, may make the election described above in Subsection(a)(1) at the time such former member files their application for service retirement if the member has either a spouse to whom the member has been married for at least one (1) year prior to the date of the member’s retirement or a domestic partner in a partnership that has been established for at least one (1) year prior to the date of the member’s retirement (an eligible survivor for purposes of this subsection). Upon the death of such retired member who elected to provide for a continuance to the member’s eligible survivor as provided herein, there shall be continued to such survivor, provided the survivor is the deceased retiree’s surviving spouse or domestic partner, an allowance which shall be based upon the components set forth in Subsection(a)(1)(i), (ii) and (iii).

(3) Payment of Contributions upon Death. Upon the death of both the retired member and the retired member’s eligible survivor

where an election has been made as provided in this Subsection (a), any unused contributions and accrued retirement allowance shall be paid as provided in Section 4.1010(c)(2).

(b) Members with Service Prior to July 1, 1965. Members shall not receive credit under the provisions of Section 4.1012 for service rendered prior to July 1, 1965, unless said member shall both:

(1) Elect, in writing, and file with the Board of Administration an application to participate in the continuance to survivor benefit established in Section 4.1012; and

(2) Pay survivor contributions in an amount equal to all the contributions which the member would have made had the member elected said benefit on July 1, 1965, together with all regular interest which, had the member so made the same, would have been credited thereon prior to the date of such payment. The mode of paying such back contributions in a lump sum or on an installment basis shall be as decided by the Board of Administration and set forth in their rules.

The surviving spouse or domestic partner of a deceased retired member is hereby given the right to make an election to participate in the continuance to survivor benefit provided in Section 4.1012 if such deceased retired member did not during the deceased retired member’s lifetime make the election to participate in said benefit; provided, however, that such survivor must qualify as an eligible survivor as said term is defined in Section 4.1012.

The eligible survivor’s election shall be in writing on such forms as the Board may prescribe, and must be accompanied by the amount of survivor contributions which the deceased retired member would have contributed by salary deduction during the entire period of membership in the Retirement System during or for which the deceased retired member would have been eligible to participate in the benefit provided in Section 4.1012.

The benefit herein provided shall entitle a survivor eligible to make an election to receive an allowance calculated as of the time immediately following the deceased retired member’s death, but such allowance shall become payable only as of the first day of the month following the exercise of the election and receipt by the Retirement System of the required survivor contributions. There is to be no retroactive entitlement to benefits under the provisions of this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

A member or former member who does not have an eligible survivor, as defined in Section 4.1012, may make an irrevocable election at the time of retirement, in writing, to provide for a continuance of the member’s or former member’s retirement allowance to one designated beneficiary. The retiree shall take an actuarial reduction of the retiree’s retirement allowance to pay for the continuance to a designated beneficiary. The retiree shall specify any whole percentage not to exceed 100% as the portion of the retirement allowance to be paid as an allowance to the beneficiary, subject to any limits imposed by federal law. The allowance payable to the beneficiary shall commence the day following the retiree’s date of death and shall terminate upon the death of the beneficiary.

The beneficiary’s continuance shall be subject to all cost-of-living and discretionary increases.

A beneficiary under this section shall not be entitled to any disability retirement allowance, any basic death benefit, any special death benefit, any monthly allowance for survivors of a member or retired person, any insurance benefit or subsidy, or retired member lump-sum death benefit.

The Board shall adopt rules to administer this continuance and shall formulate the benefits in such a way that no additional actuarial liability is incurred either by the System or by the City.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Optional Retirement Allowance Election. At any time before the first payment of a service or disability retirement allowance, a member or former member who is retiring may elect to receive the actuarial equivalent of such retirement allowance as:

(1) One Hundred Percent (100%) Continuance. An optional retirement allowance payable throughout the balance of the retiree’s

life, with the provision that upon the retiree’s death one hundred percent (100%) of such optional retirement allowance shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) the retired member’s minor children, in the event there be no surviving spouse or domestic partner; or (iii) the retired member’s dependent parents, in the event there be no surviving spouse or domestic partner or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years; or

(2) Lesser Percent (%) Continuance. Any other optional allowance which the retiree may elect to receive and which shall be

authorized by the Board, payable throughout the balance of the retiree’s life, with the provision that, upon the retiree’s death, a specified percentage of such optional allowance selected by the retiree shall be continued through the life of and paid to: (i) the retiree’s surviving spouse or domestic partner; or (ii) the retiree’s minor children, in the event there be no surviving spouse; or (iii) the retiree’s dependent parents, in the event there be no surviving spouse or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years.

In order for the person who is the retiree’s spouse or domestic partner at the time of retirement to be eligible to receive the continuance provided in this section, this person must be the surviving spouse or surviving domestic partner of the retiree at the time of the retiree’s death.

(b) Calculation of Optional Retirement Allowances. The amount of any optional retirement allowance granted pursuant to this section shall be so calculated that the liability of the system at the date of retirement under the optional retirement allowance shall be equal to the liability of the system at the same date under the retirement allowance provided in Sections 4.1007 or 4.1008, including in each case the liability for continuance to an eligible survivor provided in Section 4.1012, if applicable. Any retiree selecting one of the options available under this section who has an eligible survivor as defined in Section 4.1012 shall have the annuity portion of such retiree’s retirement allowance calculated on the basis of the member’s total accumulated contributions, including both normal and survivor contributions. For the purpose of this section, the liability of the system is defined as the present value, in accordance with tables adopted by the Board, of the retirement allowance or optional retirement allowance calculated by approved actuarial methods, giving due weight to the average probabilities of survivorship of all parties involved in the allowance, or optional allowance, to the limitation of payments to age eighteen (18) in the case of a minor child, and to the requirement for refund of unused contributions after the death of the retiree or beneficiary as provided for in Section 4.1010(c)(2).

(c) Options for Members Who Retired Prior to July 1, 1965, with an Optional Allowance. Any retired member of the Retirement

System who retired prior to July 1, 1965, and who selected one of the optional retirement allowances authorized in the predecessor to this section, upon written application filed with the Board of Administrators shall be entitled to receive the allowance the member would have been eligible to receive under the then applicable service retirement or disability retirement provisions had the member not elected an optional retirement allowance at that time. Any adjustment made pursuant to this provision shall be effected by modifying the pension portion of the allowance. For benefits that are increased, the ratio between the base amount and the cost of living amount shall be maintained by increasing the cost of living proportionately. All adjustment to the cost of living amount made pursuant to this section shall be subject to future adjustments as provided in Section 4.1022.

Any retired member making application as provided in this subsection who has an eligible survivor as defined in Section 4.1012 shall be deemed thereby to have exercised the election provided in Section 4.1013(a)(1).

Any surviving spouse receiving a continuance of a retired member’s allowance based upon the member having made an election as provided in the predecessor to this section, which election was made when the member was not eligible to participate in the continuance to eligible survivor benefit currently provided in Section 4.1012, may elect to receive in lieu of such allowance the continuance to eligible survivor benefits provided by Section 4.1013(a)(1).

Any election or written application made pursuant to this subsection shall be irrevocable and not subject to the provisions of waiver of benefits as provided in Section 4.1024.

(d) Federal Law Limitations May Not Be Exceeded. No optional allowance shall be granted under the provisions of this section that exceed any limitations imposed by federal law.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Any member or the survivor of a deceased member who is eligible for a retirement allowance under the provisions of this Article may, in lieu of the annuity payment calculated on the basis of the refund of unused contributions, elect to receive an annuity payable only during the life or lives of the persons covered by the option with no payment due upon the death of the last survivor on account of unused contributions. In all other respects, the provisions of Section 4.1015(b) with respect to the liability of the System under the option being equal to the liability of the System under the member’s unmodified retirement allowance shall be applicable.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Back Contributions for Past Periods of City Service. Every member who was a City employee during any period or periods in which the member was regularly employed, on a full-time basis or on a part-time basis but was not a member, and thus not contributing to the Retirement Fund, shall have the option to designate all or any portion of such employment for which the member may receive retirement credit, provided, however, that the member is not receiving and is not entitled to receive for that period of City employment any benefit from any other pension or retirement system, including, but not limited to, the Fire and Police Pension Plan, the Water and Power Employees’ Retirement Plan, the Limited Term Retirement Plan, the Pension Savings Plan for Part-time, Seasonal and Temporary Employees, and any union plan. Such option shall be exercised in writing, filed with the Board of Administration, designating the period of City employment for which the member desires to receive retirement credit, and must be accompanied by a single payment of back contributions or by an agreement to pay such back contributions in installments.

The back contributions to be paid shall be in an amount equal to all of the contributions which the member would have made to the Fund had the member been a member during such period, together with all regular interest which, had the member so made the same, would have been credited thereon prior to the date of such payment; provided, however, that in the case of such installment payment thereof, the same shall be made pursuant to the rules which shall be adopted by the Board of Administration establishing minimum amounts to be paid and the period of time within which they must be paid and, furthermore, providing the rate of interest which shall be paid upon the unpaid balance of the same. Every member who makes up back contributions as hereinabove provided shall be allowed credit for the period of City employment designated in the declaration filed by the member with the Board of Administration, the same as though the member had been a member during such period. Any such member shall be allowed at any time to make a single payment equal to the then present value of all of the unpaid installments in such manner as shall be determined by the Board. Should the member fail to make all of the payments required of the member under the provisions of this section, the member shall be allowed retirement credit, counter-calendarwise, for the same portion of such designated period as the amount made up by the member is of such full amount, and provided further that, should the member cease to be a member by reason the member’s death, retirement credit shall be allowed for the whole period designated by the member if the member’s surviving spouse or domestic partner exercises the option which, under such circumstances, hereby is given to such survivor to make a single payment equal to the then present value of all of the unpaid installments in such manner as may be determined by the Board. The written option hereinabove referred to shall be filed with the Board of Administration.

For purposes of determining whether a member is not receiving and is not entitled to receive for a prior period of City employment any benefit from a non-City pension or retirement system, such as a union plan, the Board shall adopt rules regarding the proof that a member must provide to establish a right to make back contributions for such prior period of City employment, since, for a non-City system, such information is not directly available to the Retirement System.

(b) Back Contributions for Periods of Participation in the Pension Saving Plan. Notwithstanding the provisions of Subsection (a), a member may receive retirement credit for any period or periods in which the member was a participant in the Pension Savings Plan for Part- time, Seasonal and Temporary Employees provided for in Chapter 16 of Division 4 of this Code. Such option shall be exercised in writing, filed with and subject to rules promulgated by the Board of Administration as provided for in Subsection (a) above. The amount of back contributions to be paid shall be the total of the following:

(1) An amount equal to all of the contributions which the member would have made to the Fund had the member been a member during such period, together with all regular interest which would have been credited thereon by the Board of Administration prior to the date of such payment; and

(2) The full amount of all contributions made to the Pension Savings Plan by the City on behalf of the member during such period

or periods, plus all interest credited to those contributions by the Pension Savings Plan.

(c) Back Contributions for Periods of Participation in the Limited Term Retirement Plan. Notwithstanding the provisions of

Subsection (a) herein and Section 4.1850(g) of Chapter 18.5 of Division 4 of this Code, every person who is a member may receive service credit for any period or periods in which the person was a participant in the Limited Term Retirement Plan provided for in Chapter 18.5 of Division 4 of this Code by making back contributions, which shall be paid in one of the following manners:

(1) All of the participant’s interest in the participant’s individual account with the Limited Term Retirement Plan, based upon

contributions made both by the participant and by the City, and any gains or losses thereon, shall be transferred from the Limited Term Retirement Fund to the LACERS Retirement Fund for credit to the member’s LACERS account and, upon receipt, shall constitute full payment for the buy back; or

(2) Where the member’s entire account balance in the member’s former individual account with the Limited Term Retirement Plan,

based upon contributions made both by the participant and by the City, and any gains or losses thereon, is directly rolled over from the Limited Term Retirement Plan to another eligible retirement plan prior to January 1, 2003, provided these funds have been segregated and not co-mingled with any other funds, the trustee-to-trustee transfer of the total balance from that eligible retirement plan to the LACERS Retirement Fund for credit to the member’s LACERS account shall constitute full payment for the buy back; or

(3) In all other cases in which the member’s Limited Term Retirement Plan account balance has been distributed, the amount of

back contributions to be paid shall be in the amount of the entire lump sum distribution, whether received by the member or by any other person, together with all regular interest which would have been credited thereon by the Board of Administration subsequent to the date the lump sum was distributed had the member been a member during that period.

This option shall be exercised in writing, filed with and subject to rules to be promulgated by the Board of Administration. The service credit purchased pursuant to this subsection shall count as continuous service credit for all LACERS benefits, the same as if the person had been a member during the entire period of time for which service credit is given.

(d) Back Contributions for Periods when Member Received Workers’ Compensation Benefits. The Board of Administration shall, by rule, provide for the making up of contributions that a member failed to make for any period during which the member received Workers’ Compensation benefits (Div. IV, Labor Code) for temporary disability on account of any injury or illness arising out of and in the course of the member’s employment with the City, together with an amount equal to the regular interest that would have been credited had the member made the contributions.

(e) Back Contributions in Connection with Disability Denials. A limited right to make back contributions in connection with denials of disability applications is provided in Section 4.1008(j)(4).

(f) Limitations on Back Contributions Imposed by Federal Law. Notwithstanding the provisions of Subsection (a), (b) and (c) herein, a member shall not be allowed to make back contributions to purchase retirement credit under this section if the period of time being purchased constitutes “unqualified service” which the member is prohibited from purchasing under federal law. The Board shall adopt such rules as are necessary to comply with federal law and may authorize payment methods that comport with federal requirements.

(g) Effect of Transfer to Fire and Police Pension Plan. For any Member who has entered into an agreement to provide back

contributions and elects to transfer membership to the Fire and Police Pension Plan pursuant to Section 4.2216, LACERS shall transfer all service credit and associated contributions that have been purchased, subject to the terms and conditions of the LACERS Peace Officer Transfer Program and the terms and conditions provided in this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (g) added, Ord. No. 188,756, Eff. 11-16-25.

Any former member who received a refund of that former member’s contributions upon separating from the service of the City shall, upon again becoming a member, have the option to re-deposit with the Retirement Fund the amount previously withdrawn, together with regular interest, irrespective of any time period that may have elapsed since such separation. Such option shall be filed in writing with the Board of Administration. The amount of the contributions to be re-deposited shall be the sum of the amount of accumulated contributions withdrawn, plus all of the regular interest which would have been credited thereon had said accumulated contributions remained on deposit in the fund to the date the member re-deposits such contributions either by a single lump sum payment or executes an agreement to pay such re-deposit in installments. In the case of installment payments, the Board of Administration shall establish the minimum amounts to be paid, the period of time therefore, the rate of interest which shall be paid on the unpaid balance of the same, and all other rules the Board may deem necessary for the carrying out of the provisions of this section. Any such member shall be allowed, at any time, to make a single payment equal to the then present value of all of the unpaid installments in such manner as shall be determined by the Board. Every member who makes a re-

deposit as hereinabove provided shall be allowed retirement credit for the period of service for which the re-deposit is made; provided however, that the member is not receiving and is not entitled to receive retirement credit for such period of service from any other pension or retirement system of the City of Los Angeles. Should the member fail to complete payment of the re-deposit, credit shall be allowed counter- calendarwise from the same portion of such designated period as the amount made up by the member is of such full amount, and provided, further, that should the member cease to be a member by reason of their death, retirement credit shall be allowed for the whole period for which the re-deposit is being made if the member’s surviving spouse or domestic partner exercises the option which, under such circumstances, hereby is given to such survivor to make a single payment equal to the then present value of all of the unpaid installments in such manner as shall be determined by the Board.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Definitions. For the purpose of this section, the following words and phrases shall have the meaning ascribed to them in this subsection unless a different meaning is clearly indicated by the context:

Leave of Absence shall mean an approved uncompensated leave of absence from City Service, excluding any period of absence due to disciplinary suspension.

Buy Back shall mean purchase by a member of retirement credit for periods of eligible leaves of absence from City Service.

(b) Eligibility. Every person who is a member on the effective date of this section or who shall become a member subsequent thereto shall be eligible to buy back credit for periods of uncompensated leave of absence from City Service.

(c) Application of Buy Back Credit. A member electing to buy back periods of leave of absence from City Service may apply buy back credit to increase service retirement benefit credit. Buy back credit shall not be used to meet minimum qualification for service retirement, disability retirement or vested retirement or to qualify for the Family Death Benefit Plan, or to qualify for or increase health and dental insurance premium subsidies.

(d) Effect of Benefit Increases. If retirement benefits should be increased by City Council action pursuant to Section 1168 of the City Charter, such increased benefits shall be applicable to service credits purchased pursuant to this section.

(e) Minimum Periods of Purchase. A member electing to buy back credit for periods of uncompensated leave of absence shall file with the Board of Administration a written application identifying the time periods for which credit is to be purchased. A member may buy back credit for one or more periods of uncompensated leave, except, however, a minimum of six (6) months of leave in the aggregate shall be purchased. Total buy back credit purchased shall not exceed the member’s actual City Service at the time the buy back is concluded.

(f) Agreement with the City Employees’ Retirement System - Buy Back Methods. A member electing to buy back credit described

herein shall enter into a written agreement with the Retirement System. Such agreement shall provide that the member contribute an amount equal to the present value of the liability incurred by the System in crediting the service based upon actuarial assumptions in effect at the time the agreement is entered into or amended and the projected retirement date contained in the agreement. Such agreement shall identify the method of payment of the additional contributions required to fund the purchased credit, which may be a specific dollar payment or percent of salary obligation. If a member elects to make the required contribution by a specific dollar payment, the payment may be made in a lump sum or in biweekly installments through payroll deduction over a period not to exceed five (5) years. If the member elects to enter into a percent of salary obligation, the member shall agree to make the contributions as a percent of salary through payroll deduction over a period extending from the date of the agreement with the Retirement System to a projected retirement date included in the agreement.

(g) Termination or Completion of Agreement. A member who has entered into a buy back agreement shall complete all contributions prior to the effective date of retirement in order to receive agreed upon buy back credit. If all contributions have not been completed and the member elects to retire, the member may receive prorated buy back credit for that portion of the service which has been purchased by contributions already made and forfeit the remainder of credit covered by the agreement, or may make a lump sum payment sufficient to complete the total payment covered by the agreement. In the event the member elects to retire at a later date than the age specified in the agreement after completing all payments, no adjustments shall be made in the buy back credit or the cost of such credit. A member who elects to terminate an after-tax agreement prior to its completion or at the time of retirement shall forfeit buy back credit and may elect to receive a cash refund of the buy back contributions and interest payable upon the earlier of death, termination of employment or retirement.

(h) Member’s Death. In the event of the death of a member who has entered into a buy back agreement, the surviving eligible beneficiary of the member may elect a refund of the buy back contributions and interest thereon, or elect to apply the credit, or a portion thereof, to the calculation of the benefits for which the survivor qualifies without the addition of buy back service credit, or elect to complete the terms of the agreement with a lump sum payment of the remaining amount owed.

(i) Administration. The administration of this section shall be under the exclusive management and control of the Board of

Administration. Said Board shall have, and is hereby granted, full power and authority to adopt and enforce all such rules and regulations as it may deem necessary for the carrying out of the provisions of this ordinance. The Board of Administration shall have the right to construe this section, to interpret any provision thereof, to make rules and regulations relating to this section, and to determine any factual questions arising in connection with the operation of this section after such investigation or hearing as the Board may deem appropriate. Any decision made by

the Board under the provisions of this section shall be conclusive and binding on all parties concerned.

(j) Effect of Transfer to Fire and Police Pension Plan. For any Member who has entered into a buy back agreement and elects to transfer membership to the Fire and Police Pension Plan pursuant to Section 4.2216, LACERS shall transfer all service credit and associated contributions that have been purchased, subject to the terms and conditions of the LACERS Peace Officer Transfer Program and the terms and conditions provided in this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (j) added, Ord. No. 188,756, Eff. 11-16-25.

The Board of Administration shall, by rule, provide for the making of additional contributions to provide a larger annuity benefit at the time of retirement. A member shall not be permitted to make such additional contributions, however, if doing so would cause the member’s benefits to exceed the Internal Revenue Code limitations referenced in Section 4.1029. All larger annuity benefits funded by the making of additional contributions, as authorized in this section, shall be determined by the actuary to be cost-neutral.

Solely for the purpose of making additional contributions to provide a larger annuity benefit at the time of retirement, the Board of Administration may accept, subject to any limitations imposed by federal law, a direct rollover distribution of funds from the City of Los Angeles 457 Deferred Compensation Plan after the date of the member’s retirement provided that: the member’s application to purchase a larger annuity benefit is received prior to the effective date of the member’s retirement; the member, prior to the member’s retirement, shall have provided the Deferred Compensation Plan with the written authorization that is required for funds to be transferred to the Retirement System immediately after the member’s retirement; the rollover is completed as soon as administratively feasible; and the larger annuity benefit is not payable to the member until after the funds have been received.

The Board of Administration shall have the authority to adopt all rules necessary to administer the larger annuity program within the constraints established in this section, including the authority to establish a deadline for the receipt of the rollover funds after which the member’s application shall be deemed denied.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Ord. No. 184,853, Eff. 4-6-17.

(a) The provisions of this section shall not be applicable to any benefit payable pursuant to the provisions of Section 4.1010(a)(2). The provisions of this section, however, shall be applicable to each other benefit payable in monthly installments pursuant to any other provisions of this Article, but the application thereof to any such benefit shall not reduce the amount to be paid on or subsequent to July 1st of any year to an amount less than that payable immediately prior to July 1st of said year.

(b) The Board of Administration, not later than the 1st day of May of each year, shall determine with respect to the Federal Bureau of Labor Statistics Consumer Price Index for the Los Angeles area (“the C.P.I.”) the percentage of increase or decrease, if any, in the C.P.I. for the whole of the first next preceding calendar year from the C.P.I. for the whole of the second next preceding calendar year, and shall round any such percentage increase or decrease to the nearest one-tenth of one percent. This percentage increase or decrease in the C.P.I. that can be

applied to a member’s or beneficiary’s benefit as provided in Subsection (a) is the Cost of Living Adjustment (COLA), and the accumulated balance of the COLA that is carried over each year as a result of following the process described in Subdivision (c)(2) is the “COLA Bank”.

(c) The Board, whenever it shall have determined that there had been an increase or decrease in the C.P.I., shall increase or decrease the amount of each such benefit as hereunder provided, subject, however, to the limitations contained in Subsection (a) of this section:

(1) Effective the 1st day of July of each year, beginning with the year 1974, the Board of Administration, with respect to each
eligible benefit which became payable prior to the applicable 1st day of July, shall increase or decrease the amount thereof payable
immediately prior to the applicable 1st day of July by one-twelfth (1/12) of the percentage of increase or decrease in the C.P.I. as
determined by it pursuant to Subsection (b) of this section, for each whole month that such benefit was payable during the year
commencing the 1st day of July next preceding the applicable 1st day of July and ending the 30th day of June next preceding the
applicable 1st day of July, providing that any increase or decrease in the amount of any such benefit shall not exceed one-twelfth (1/12)
of three percent (3%) thereof for each whole month that it was payable during the year.

(2) If the percentage of increase or decrease in the C.P.I. in any calendar year, as determined by the Board of Administration, were
to exceed three percent, as compared with the C.P.I. in the preceding year, the percentage of increase or decrease in the C.P.I. in excess
of three percent shall be accumulated and carried over and added to or subtracted from the percentage of increase or decrease in the
C.P.I. in the next succeeding calendar year, and such procedure shall be complied with from year to year. For those years prior to
1974, in which the COLA was capped at two percent, the percentage of increase or decrease of the C.P.I. which was in excess of two
percent, rather than three percent, shall be accumulated and carried over as provided herein. The foregoing provisions of this
subdivision shall not apply to any recipient whose benefits were not paid for the entire fiscal year (July 1 to June 30) immediately
preceding the fiscal year to which the COLA was first applied, unless the recipient is receiving a continuance benefit following the
death of a retired member and the combined benefits paid to the continuance beneficiary and previously paid to the deceased member
cover the entire fiscal year immediately preceding the fiscal year when the COLA was first applied.

(3) In no event shall any COLA Bank contain a balance that is less than zero percent.

(d) The amount of any benefit which shall be continued to any survivor upon the death of a retired member subsequent to July 1, 1967, shall be in the same ratio to the amount of the benefit which such member shall have been receiving as of the date of the member’s death as the amount of the benefit which originally would have been continued to such survivor shall bear to the amount of the benefit which originally was payable to such member.

(e) If it were to be impossible or impracticable for the Board to cause all necessary calculations to be made in time for it to include any increases or decreases in the amounts of benefits, as hereinabove provided, in the demands drawn in payment of such benefits for the month of July in any year, then the Board shall have the power and authority, when such calculations shall have been made, to increase or decrease the amounts of the demands drawn in payment of such benefits for any month subsequent to the month of July so as to include any increases or decreases in such benefits which shall have accumulated from and after the 1st day of July.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsecs. (b) and (c)(2) amended and Subsec. (c)(3) added, Ord. No. 188,756, Eff. 11-16-25.

(a) There is hereby created and established a policy whereby the City Council shall periodically review the matter of the cost of living adjustments for certain beneficiaries who receive retirement benefits from the Retirement System. The review shall be made to ascertain the impact of increases in the Consumer Price Index upon retirement benefits and the adequacy of the annual cost of living adjustments provided in Section 4.1022 of the Los Angeles Administrative Code.

Should the City Council find and determine that annual cost of living adjustments are inadequate in light of the movement of the Consumer Price Index, the City Council may grant additional but discretionary cost of living adjustments as hereinafter provided.

(b) The first of the reviews provided in Subsection (a) hereof shall be made during the fiscal year 1981-1982 and annually thereafter until the City Council has provided a first discretionary adjustment pursuant to this section. Thereafter, the City Council shall make periodic reviews in intervals not to exceed three (3) years from the date of the completion of the last review or from the effective date of the last discretionary cost of living adjustments, whichever shall be the later.

(c) Should it be the finding of the City Council that discretionary cost of living adjustments would be in order, any such adjustments would be subject to the following limitations:

(1) The first discretionary adjustment may be granted at any time. Thereafter, discretionary adjustments may not be provided more

frequently than once every three (3) years, counting from the date the last discretionary adjustments became effective.

(2) Discretionary adjustments shall not exceed one-half (1/2) of the difference between the percentage of the annual increases in the

cost of living, as determined pursuant to the provisions of Section 4.1022(b) herein, for each of the preceding three (3) years and the annual adjustments made pursuant to Section 4.1022(c). Discretionary adjustments shall be allocated to each of the three (3) years for which an adjustment is made. Should discretionary cost of living adjustments be granted during the fiscal year 1981-1982, the applicable annual increase in the Consumer Price Index shall be the one upon which the Board of Administration of the Retirement

System has based those annual cost of living adjustments which became effective July 1, 1981.

(3) Any discretionary cost of living adjustments provided pursuant to the provisions of this section shall be subject to the following
further limitation: If a benefit became payable on or after July 1 immediately preceding the effective date of such adjustments, it shall
not be so adjusted; and any benefit which shall become payable at a time within a three (3)-year period between discretionary cost of
living adjustments (but prior to the immediately preceding July 1), shall be prorated according to the annual increase on a monthly
basis to the number of completed months for which the benefit was received.

(4) Discretionary cost of living adjustments may be granted only by ordinances adopted in accordance with the provisions of
Section 1168 of the City Charter.

(5) All adjustments provided in this subsection are to be applied prospectively only and shall not be understood to permit retroactive
adjustments of benefits.

(d) Discretionary cost of living adjustments shall only be applied to monthly benefits not otherwise excluded from cost of living adjustments under the provisions of Section 4.1022 of this Chapter.

(e) It shall be the duty of the Director of the Office of Administrative and Research Services to prepare appropriate reports and

recommendations to enable the City Council to make findings as to the adequacy of the annual cost of living adjustments.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Each beneficiary, as defined in Charter Section 1152, shall have the right, at any time, to waive payment of the whole or any portion of any benefit whatsoever or of any increase in the amount of any benefit which is or shall become payable to the beneficiary pursuant to any provision of this Chapter, and may waive payment thereof forever or for a definite or indefinite period of time. Any such waiver shall be in writing, shall be filed with the Board of Administration, and shall be effective as of the first day of the month following the month in which it shall be filed. Each beneficiary who shall make and file such a waiver shall have the right, at any time, to cancel the same. Any such cancellation shall be in writing, shall be filed with the Board of Administration and shall be effective as of the first day of the month following the month in which it shall be filed. Any such waiver shall constitute a complete release, discharge and acquittance of the City of Los Angeles and the Board of Administration from any and all liability to pay any amount or amounts of any benefits which shall be waived by any such beneficiary.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

Any benefit payable from the Retirement System that is not claimed shall revert to the Retirement Fund. Unless there is a different claim period specified elsewhere in this article, benefits payable from the Retirement System must be claimed within one (1) year. If the person entitled to a benefit is a minor, the period in which to claim the benefit shall be tolled until such person attains age eighteen (18).

In the event that a beneficiary is entitled to a benefit from the Retirement System but payment cannot be made for any reason, such as the beneficiary’s failure to cooperate, where the beneficiary’s whereabouts is unknown, or where a beneficiary has failed to cash an outstanding check within such reasonable time period as established by Board rule, and the Retirement System has followed Internal Revenue Service procedures to locate the beneficiary, the funds due to the beneficiary shall be forfeited to the Retirement Fund, provided that a beneficiary shall be relieved from such forfeiture upon receipt of a request from the beneficiary or anyone authorized to act on the beneficiary’s behalf.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

If it shall be impracticable for the Board to determine from the records the length of service, the compensation, either final or earnable, or the age of any member, the said Board may estimate, for all purposes of this Article, such length of service, compensation or age. It shall determine and fix the amount of service rendered which shall be the equivalent of a year of service, provided that not more than one (1) year of service shall be credited for all services rendered during any one year. In all cases where compensation of any member consists, in part, of payment for the use of equipment owned and operated by such member personally, the Board of Administration shall fix and determine, for

all purposes of this Article, a compensation for the personal service of such member, which shall be in keeping with the salary or wage paid by said City for comparable service, and the compensation so fixed by the Board shall be the basis, and the only basis, for the calculation of the contributions of such member and any and all benefits provided for in this article. Each member shall file with said Board such information affecting the member’s status as a member of said Retirement System, as said Board may require, and the administrative head of each department of the City government shall furnish to said Board such information relative to any member, and the member’s status, as it may request.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Trustee-to-Trustee Transfers. The Board of Administration may, notwithstanding any restrictions upon the method of such payment specified elsewhere, provide, by rule, that any member eligible to:

(1) make up back contributions;

(2) re-deposit contributions;

(3) buy back service credit;

(4) make up contributions for periods during which Workers’ Compensation was received,

(5) make additional contributions to purchase a larger annuity, provided it is determined cost-neutral by the actuary; or

(6) make any other payment in order to receive an increased benefit, may make full or partial payment for these purposes by a direct

trustee-to-trustee transfer of funds from any eligible retirement plan (as defined in Section 402(c)(8)(B) of the Internal Revenue Code) as permitted under current federal and state law or under these laws as amended in the future. Should this transfer constitute a partial payment, any additional payment received in a lump sum shall, together with the amount transferred, directly be considered one payment for purposes of this Article.

(b) Certain Actions. Except as otherwise expressly provided, wherever the provisions of this Article call for an “election,” “application” or “option” or other act to be performed by any person receiving or entitled to receive benefits pursuant to this Article, it shall be within the power of the Board of Administration to establish all necessary rules with respect to the time, manner and operative date of such act.

(c) Charter Authority. Pursuant to Charter Section 1106(f), the Board shall have the power to adopt any rules, regulations or forms it deems necessary to carry out its administration of the Retirement System or assets under its control.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Los Angeles City Employees’ Retirement System to the contrary that would otherwise limit a distributee’s election under this part, the “distributee” of an “eligible rollover distribution” may elect to have any portion of an eligible rollover distribution that is equal to at least $200.00 paid directly to an “eligible retirement plan” specified by the distributee in a “direct rollover.”

(b) Definitions.

Eligible Rollover Distribution. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal period payments (not less frequently than annually) made for the life (or the life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; the portion of any distribution that is not includable in gross income; and any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with the provisions of Section 415 of the Internal Revenue Code or any distribution that is reasonably expected to total less than $200.00 during a year. On or after January 1, 2002, a portion of a distribution that is not includable in gross income, but that otherwise qualifies as an eligible rollover distribution, is an eligible distribution, provided that the eligible retirement plan designated to receive such portion of a distribution is (i) an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, or a qualified defined contribution plan described in Section 401(a) or 403(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution, which is includable in gross income and the portion of such distribution, which is not so includable;

(ii) on or after January 1, 2007, is a qualified defined benefit plan described in section 401(a) of the Internal Revenue Code or an annuity contract described in section 403(b) of the Internal Revenue Code, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not so includable; (iii) on or after January 1, 2008, is a Roth IRA described in Section 408A of the Internal Revenue Code.

Eligible Retirement Plan. An eligible retirement plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403(a) of the Internal Revenue Code, or a qualified plan described in Section 401(a) of the Internal Revenue Code that accepts a distributee’s eligible rollover distribution. On or after January 1, 2002, an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code, maintained by an employer described in Section 457(e)(1)(A) of the Internal Revenue Code, and annuity contract described in Section 403(b) of the Internal Revenue Code, are also eligible retirement plans. However, prior to January 1, 2002, in the case of an eligible rollover distribution to the surviving spouse or other designated beneficiary, an eligible retirement plan is an individual retirement account or individual retirement plan annuity only. On or after January 1, 2008, a Roth IRA described in section 408A of the Internal Revenue Code is an eligible retirement plan.

Distributee. A distributee means an employee, former employee, spouse or former spouse of an employee or former employee

eligible for a rollover distribution. On or after January 1, 2007, a distributee further includes a nonspouse beneficiary who is a designated beneficiary as defined by section 401(a)(9)(E) of the Internal Revenue Code. However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an “inherited” individual retirement account or annuity.

Direct Rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Notwithstanding any other provisions of this Article, the benefits payable to any person who becomes a member on or after January 1, 1990, shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code. Effective for limitation years beginning on or after January 1, 2001, for purposes of applying the limitations of Section 415 of the Internal Revenue Code, compensation paid or made available during the limitation year shall include any amounts that are not includable in the gross income of the member by reason of Section 132(f)(4) of the Internal Revenue Code.

(b) The benefits payable to any person who became a member prior to January 1, 1990, shall be subject to the greater of the following:

(1) The limitations set forth in Section 415 of the Internal Revenue Code; or

(2) The accrued benefit of the member (determined without regard to any amendment made after October 14, 1987, as provided in Section 415(b)(10)(A) of the Internal Revenue Code).

(c) If compliance with the provisions of Internal Revenue Code Section 415 and related sections would result in a lower level of retirement benefits for members on or after January 1, 1990, than for members prior to that date, then the Council shall provide, by ordinance, an alternative means of maintaining for such members the level of benefits in effect for members as of December 31, 1989.

(d) Notwithstanding any other provisions of the Retirement System to the contrary, the member contributions paid to, and retirement benefits paid from, the plan shall be limited to such extent as may be necessary to conform to the requirements of Section 415 of the Internal Revenue Code for a qualified pension plan.

(e) If any of the limitations of Section 415 of the Internal Revenue Code should be repealed, the provisions of this section shall be deemed repealed to the same extent.

(f) Nothing contained in this section shall limit the City Council from modifying benefits to the extent such modifications are permissible by City Charter and applicable State and Federal law.

(g) Notwithstanding any provision of this plan to the contrary, effective December 12, 1994, contributions, benefits, and service credit with respect to qualified military service while an employee will be provided in accordance with Section 414(u) of the Internal Revenue Code.

(1) Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code), to the extent required by Section 401(a)(37) of the Internal Revenue Code, survivors of a member in a state or local retirement or pension system are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member’s death while employed. In any event, a deceased member’s period of qualified military service must be counted for vesting purposes.

(2) Beginning January 1, 2009, to the extent required by Section 414(u)(12) of the Internal Revenue Code, an individual receiving

differential wage payments (as defined under Section 3401(h)(2) of the Internal Revenue Code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under Section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (a), Ord. No. 183,456, Eff. 3-4-15.

When a court of competent jurisdiction does not order a separate account as specified in Section 4.1032, but instead awards the former spouse or former domestic partner (the “Ex”) a portion of the retirement benefits payable to the member and to the member’s surviving spouse or domestic partner (survivor), if any, the Ex, in lieu of receiving the Ex’s portion of the benefits payable based upon the lifetime of the member and/or survivor, may instead make an irrevocable election to convert the Ex’s interest in such retirement benefits into an actuarially equivalent life annuity payable for the lifetime of the Ex. If the member has not yet retired, the Ex must make this irrevocable election to receive a life annuity in writing prior to receiving payment of the Ex’s community property portion of the retirement allowance. If the member has already retired, the election must be made at the time the Ex requests direct payment of the Ex’s community property portion of the retirement allowance. The Ex must make the election to receive a life annuity within 90 days of LACERS providing written notice to the Ex. If this irrevocable election is not made prior to the applicable times specified herein, the Ex will be deemed to have waived the right to elect to receive a life annuity.

This option is not available in a legal separation where the parties’ marriage or domestic partnership has not been legally terminated.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: In Entirety, Ord. No. 188,756, Eff. 11-16-25.

Separate accounts, on the terms and conditions set forth in this section, may be established under a court order dividing community property in connection with a legal separation or a dissolution provided that the order is entered prior to the member’s retirement. Separate accounts cannot be established by a court order entered after the member’s retirement.

(a) Court Order Required for Separate Accounts. When a court of competent jurisdiction orders the division of community

property prior to the member’s date of retirement, the court may order that the accumulated contributions, plus regular interest and service credit attributable to periods of service during the marriage be divided into two separate and distinct accounts in the name of the member and the nonmember, respectively. Any service credit or accumulated contributions that are not explicitly awarded by the court order shall be deemed the separate property of the member, in which the nonmember shall have no further interest.

The nonmember who is awarded a separate account under this section shall be required to make an irrevocable written election to either receive a refund of contributions or a separate account allowance, provided the nonmember must be eligible for the option that is elected. If said election is not timely made, the nonmember shall be deemed to have chosen a refund of contributions.

(b) Definitions. For purposes of this section, the following words and phrases are defined as follows:

Nonmember. The spouse, former spouse, domestic partner, or former domestic partner of a member who, as a result of petitioning the court for the division of community property, has been awarded a separate account reflecting specific credited service and accumulated contributions.

Separate Account Allowance. The monthly amount remitted to a nonmember based on the division of community property, by a court of competent jurisdiction, into a separate account reflecting specific credited service and accumulated contributions, actuarially reduced to provide an annuity for life.

Final Monthly Average Compensation. For a nonmember only, is the monthly average of the member’s highest

consecutive twelve (12) months of salary at the time of separation.

(c) Benefits Available to Nonmember Awarded a Separate Account.

(1) Refund of Contributions.

(i) A nonmember who is awarded a separate account shall have the right to a refund of the accumulated contributions, plus regular interest in the separate account of the nonmember. A nonmember who elects a refund of contributions is deemed to have permanently waived all rights in this System and all rights to any future retirement benefits pertaining to the service credit, accumulated contributions or both when the refund becomes effective. The nonmember may not cancel a refund once it has become effective, nor may the nonmember redeposit a refund once it has been paid.

(ii) If at the time of separation the member does not have five (5) years of service credit in the System, the
nonmember who has been awarded a separate account shall only receive a refund of the accumulated contributions and
regular interest placed in the nonmember’s account.

(iii) A nonmember who has elected a refund of contributions or whose only separate account right is to a refund of
contributions shall not have interest credited to the contributions in the nonmember’s separate account after the date of
the member’s retirement or death, whichever occurs first. The nonmember’s right to receive a refund of all the
contributions in the nonmember’s account on such date is a vested property right, provided, however, that should the
nonmember fail to request a refund within ten (10) years from the date of the member’s death or retirement, as
applicable, said contributions shall be removed from the nonmember’s separate account and shall revert to the
Retirement Fund, unless and until the Board of Administration receives a valid belated refund request, determined at
the sole discretion of the Board of Administration, which shall be granted. If the nonmember attains age seventy and a
half (70 1/2) with contributions still on deposit in the nonmember’s separate account, the nonmember’s contributions
shall be subject to mandatory distribution as required by the Internal Revenue Code; provided that, if such person
cannot be located and paid such mandatory distribution and the Retirement System has followed Internal Revenue
Service procedures to locate the beneficiary, such funds shall revert to the Retirement Fund as provided above, unless
and until the Board of Administration receives a valid belated refund request, determined at the sole discretion of the
Board of Administration, which shall be granted.

(2) Separate Account Allowance.

(i) Unless the nonmember has elected to receive or has received a refund of contributions, a nonmember who is
awarded a separate account shall be entitled to receive a Separate Account Allowance paid monthly for life, provided
that a timely written election has been made and that both of the following conditions are met:

(A) On the date of separation the member had five (5) years of service credit in the System; and

(B) The member was eligible to receive a service retirement allowance on the date that the separate account allowance begins.

(ii) The amount of the Separate Account Allowance shall be based on the service retirement formula in effect on the

date of separation applicable to the service credited to the nonmember by the employer and the effective date of the nonmember’s Separate Account Allowance, actuarially reduced to provide an annuity for life. The Separate Account Allowance shall be subject to all cost-of-living and discretionary increases.

(iii) The Separate Account Allowance shall consist of a pension and a life annuity, the latter of which shall be

derived from the nonmember’s accumulated contributions. The Separate Account Allowance shall terminate upon the death of the nonmember.

(3) Election of Nonmember Benefits. The nonmember may make an irrevocable election, in writing, to receive the benefit provided under this section as either a refund of contributions or a Separate Account Allowance at any time after the entry of the court order and before the member’s retirement or death, whichever occurs first. A nonmember who elects a refund of contributions may request a refund of contributions at the time the election is made or any time thereafter. A nonmember who elects a Separate Account Allowance may request the allowance to begin at the time the election is made or at any time thereafter so long as the conditions set forth in Section 4.1032(c)(2)(i) have been met by the date the monthly allowance is to begin.

The nonmember shall be deemed to have elected a refund of contributions if an irrevocable written election is not made either prior to the member’s retirement or death, whichever occurs first, or within such period following the retirement or death as provided by Board rule. The Board of Administration shall adopt rules establishing a limited period following the member’s retirement or death, as applicable, in which a nonmember who has not yet made an election may be allowed to make an irrevocable written election. If within the period established by Board rule the nonmember elects to take a separate account allowance, the allowance shall begin on the day prior to the member’s retirement or death, as applicable, so long as the conditions set forth in Section 4.1032(c)(2)(i) have been met by that date.

(4) Benefits Not Granted to Nonmember. A nonmember whose dissolution is final shall not be entitled to any disability retirement allowance, any basic death benefit, any special death benefit, any monthly allowance for survivors of a member or retired person, any insurance benefit, medical or dental subsidy, or retired member lump-sum death benefit. No survivor continuance allowance shall be payable to a survivor of a nonmember.

(d) Calculation of Member’s Service Retirement Allowance. A member whose retirement is divided under the provisions set forth above shall receive a monthly retirement allowance based on all service credit and the member’s final compensation at the date

of retirement as provided under the provisions of this Article, subject to reduction by the value of the separate account determined as follows:

(1) If the separate account was paid as a refund of contributions, the service credit and contributions awarded to the
nonmember shall not be included in the calculation of the member’s retirement allowance, except to the extent that the member
has re-deposited funds as provided in Section 4.1032(f)(1).

(2) If the nonmember elected to receive a Separate Account Allowance, the service credit and contributions awarded to the
nonmember shall not be included in the calculation of the member’s retirement allowance except to the extent that the member
has paid to purchase service credit as provided in Section 4.1032(f)(2).

(3) If the nonmember has not elected to receive either a refund of contributions or a Separate Account Allowance prior to the
member’s retirement, the service credit and contributions awarded to the nonmember shall not be included in the calculation of
the member’s retirement allowance.

(e) Calculation of Member’s Disability Retirement Allowance. Members whose retirement is divided under the provisions set
forth above shall receive a monthly disability retirement allowance as provided for in Section 4.1008 except that the portion of
accumulated contributions credited to the nonmember will be treated as missed deductions in the member account.

(f) Buy Back of Funds Allocated to Nonmember.

(1) If a nonmember receives a refund of contributions and interest, the member may re-deposit these funds, together with
any accumulated interest these funds would have earned if the refund had not occurred, to the System, subject to rules adopted
by the Board of Administration, and receive full credit for the period of time represented by these funds.

(2) If a nonmember elects to receive a Separate Account Allowance, the member may purchase service credit not to exceed the years of service credited to the nonmember. The purchase of this service credit shall be the full actuarial cost and subject to rules adopted by the Board of Administration.

(g) Duties and Responsibilities of the Board of Administration. The Board of Administration shall adopt rules to administer

separate accounts ordered by a court of competent jurisdiction, and shall formulate benefits applicable to these separate accounts in such a way that no additional actuarial liability is incurred either by the System or by the City.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Wherever “ERIP” is used in this Chapter, it shall refer to the Early Retirement Incentive Program. Subject to the provisions and limitations set forth herein, an active City employee who is a member of the Los Angeles City Employees’ Retirement System (LACERS) may be retired from the service of the City with the ERIP benefits set forth herein, provided that the LACERS member meets all of the requirements set forth herein to be eligible for retiring under the ERIP, and provided that the member’s completed ERIP Election Form is received in the Office of the City Administrative Officer (CAO) within the forty-five (45)-day ERIP window period defined herein (ERIP Eligible Filers). Also subject to the provisions and limitations set forth herein, a City retiree who was an active LACERS member may receive the ERIP benefits set forth herein, provided that the retiree retired on or after June 26, 2009, but prior to the ERIP Beginning Date defined herein, and the retiree meets all of the requirements set forth herein to be eligible to receive the ERIP benefits as contemplated in the June 26, 2009, Council motion (Council File 09-1320) (“Grandfathered Participant,” further defined below in Section 4.1033(a)(4)(i)). The forty-five (45)-day ERIP window period shall begin on this ordinance’s effective date (ERIP Beginning Date) and end on the forty-fifth (45th) day thereafter unless that forty-fifth (45th) day falls on a weekend or a City holiday, in which case it shall end on the next day that is not a weekend or a City holiday (ERIP Ending Date). The ERIP Ending Date shall be included in the ERIP window period, so that the CAO shall continue to receive completed ERIP Election Forms until close of business on the ERIP Ending Date. The CAO shall establish the rules and procedures for receiving a completed ERIP Election Form, including what constitutes a completed ERIP Election Form and what constitutes the date and time the form was received by the CAO. In order for the ERIP to meet its goal of assisting with the City’s financial situation while minimizing the impact on City services, the following provisions and limitations shall apply to the ERIP:

(1) Only LACERS members currently in an employed status with the City on the ERIP Beginning Date shall be eligible to submit

an ERIP Election Form. LACERS members in a terminated status shall not be eligible to submit an ERIP Election Form. Former City employees, including, but not limited to, deferred vested former City employees, shall not be eligible to submit an ERIP Election Form. In addition, only persons belonging to at least one of the five ERIP “Groups” listed below in Sections 4.1033(b)(1)-(5) as of the ERIP Beginning Date shall be eligible to submit an ERIP Election Form. A person belonging to one of the ERIP Groups as of the ERIP Beginning Date may possibly change ERIP Groups prior to the person’s effective date of retirement. However, a person who does not belong to any ERIP Group as of the ERIP Beginning Date shall not be eligible to submit an ERIP Election Form. Grandfathered Participants may be eligible to receive the ERIP benefits, but they need not submit an ERIP Election Form, and their retirements are not considered retirements under the ERIP.

(2) A LACERS member eligible under Section 4.1020 (Government Service Buyback or GSB) to purchase time due to service in

another government agency shall be allowed to include the purchased time in the determination of ERIP eligibility. For the purchased

time to be included in the determination of ERIP eligibility, the LACERS member must follow the existing GSB purchasing policies, and the member must have completed the GSB purchase by the end of the City pay period that includes the ERIP Beginning Date. For reciprocal service under Section 4.1096 to be included in the determination of ERIP eligibility, the reciprocal time must be certified by the reciprocating system, and the certification must be received by LACERS prior to the ERIP Beginning Date. Once so established, the LACERS member shall be entitled to use this reciprocal service in order to qualify for ERIP even if reciprocity is subsequently broken, such as by the member’s inability to retire concurrently from the reciprocating system. When a person elects to submit an ERIP Election Form and retire under the ERIP, the person shall assume all risks that result from this election, including, but not limited to, the loss of the right to use the person’s final compensation as determined by LACERS for purposes of computing final compensation earnable with the reciprocal system in the event that the person is not able to retire concurrently under both systems. Time purchased under Section 4.1019 (Public Service Buyback or PSB) shall not be included in the determination of ERIP eligibility.

(3) Certain City employee classifications are excluded from the ERIP (Excluded Classifications). Certain other City employee classifications have an ERIP limitation number, meaning that the total number of a classification’s ERIP Eligible Filers actually retiring under the ERIP, plus the number of that classification’s Grandfathered Participants actually receiving the ERIP benefits, shall be limited in number (Limited Classification). The CAO shall make known these Excluded Classifications, Limited Classifications, and the Limited Classifications’ ERIP limitation numbers.

(i) In the event that a Limited Classification’s number of ERIP Eligible Filers and Grandfathered Participants exceeds the
limitation number, the earliest initial date of LACERS membership (Initial LACERS Membership Date) shall be used to
determine which ERIP Eligible Filers shall be allowed to retire under the ERIP and which Grandfathered Participants shall
receive the ERIP benefits. The person with the earliest Initial LACERS Membership Date shall receive priority. If there is a tie
in the earliest Initial LACERS Membership Date between two or more persons of the same Limited Classification, then the one
with the longer time of employment in the Limited Classification at issue shall prevail. If there is also a tie in the time of
employment in the Limited Classification at issue, then the one whose completed ERIP Election Form was first received by
the CAO’s office prevails. A Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be
deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered
Participant’s retirement was first filed with LACERS.

(ii) If a Limited Classification’s ERIP limitation number is reached, an ERIP waiting list shall be created for that Limited
Classification. ERIP Eligible Filers on a Limited Classification’s ERIP waiting list may be allowed to retire under the ERIP,
and/or Grandfathered Participants on a Limited Classification’s ERIP waiting list may be allowed to receive the ERIP benefits,
if and to the extent that ERIP Eligible Filers with earlier Initial LACERS Membership Dates in the Limited Classification
rescind their ERIP Election Forms, and/or the Limited Classification’s ERIP limitation rate is increased. A Limited
Classification’s ERIP waiting list shall be ordered pursuant to the same Initial LACERS Membership Date priority and
tiebreakers referenced above in Section 4.1033(a)(3)(i). A Grandfathered Participant shall be deemed to have submitted (and
the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting
in the Grandfathered Participant’s retirement was first filed with LACERS. After the 45-day ERIP window period has expired,
the CAO’s office shall notify any ERIP Eligible Filers on a Limited Classification’s waiting list who will not be allowed to
retire under the ERIP. After the forty-five (45)-day ERIP window period has expired, any LACERS member may elect to retire
pursuant to standard, non-ERIP LACERS procedures and provisions. After the 45-day ERIP window period has expired, the
CAO’s office shall notify any Grandfathered Participants on a Limited Classification’s waiting list who will not be allowed to
receive the ERIP benefits.

(4) The ERIP shall have a limit of 2,400 persons, meaning that the total number of ERIP Eligible Filers actually retiring under the ERIP, plus the number of Grandfathered Participants actually receiving the ERIP benefits, shall be limited to 2,400. In the event that the total number of ERIP Eligible Filers and Grandfathered Participants exceeds 2,400, a first-come-first-served basis (ordered pursuant to the date and time the ERIP Election Form was received by the CAO’s office) shall be used to determine which ERIP Eligible Filers shall be allowed to retire under the ERIP and which Grandfathered Participants shall be allowed to receive the ERIP benefits. A Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered Participant’s retirement was first filed with LACERS. Also in the event that the total number of ERIP Eligible Filers and Grandfathered Participants exceeds 2,400, a general ERIP waiting list shall be created. ERIP Eligible Filers on the general ERIP waiting list may be allowed to retire under the ERIP if and to the extent that earlier ERIP Eligible Filers rescind their ERIP Election Forms, and/or if City Council and the Office of the Mayor approve an increase of the 2,400 ERIP limit. (If there are any Grandfathered Participants on the general ERIP waiting list, it means that the 2,400 ERIP limit was reached within the number of Grandfathered Participants alone. A Grandfathered Participant on the general ERIP waiting list may be allowed to receive the ERIP benefits if and to the extent that City Council and the Office of the Mayor approve an increase of the 2,400 ERIP limit.) This general ERIP waiting list shall be separate from the waiting lists for the various Limited Classifications set forth above in Section 4.1033(a)(3)(ii). The CAO’s office shall establish the rules and procedures for accepting ERIP Eligible Filers and Grandfathered Participants from the general ERIP waiting list and/or a Limited Classification’s waiting list, and how the waiting lists shall operate in conjunction with each other. After the forty-five (45)-day ERIP window period has expired, the CAO’s office shall notify any ERIP Eligible Filers on a general ERIP waiting list who will not be allowed to retire under the ERIP. After the 45-day ERIP window period has expired, any LACERS member may elect to retire pursuant to standard, non-ERIP LACERS procedures and provisions. After the forty five (45)-day ERIP window period has expired, the CAO’s office shall notify any Grandfathered Participants on the general ERIP waiting list who will not be allowed to receive the ERIP benefits.

(i) A “Grandfathered Participant” is an ERIP-eligible City retiree whose effective date of retirement is on or after June 26,

2009, but before the ERIP Beginning Date. As contemplated in the June 26, 2009, Council motion (Council File 09-1320), a Grandfathered Participant determined to be allowed to receive the ERIP benefits shall receive such applicable benefits. A Grandfathered Participant need not submit an ERIP Election Form to the CAO’s office within the forty-five (45)-day ERIP window period. Rather, to the extent a Grandfathered Participant is determined to be allowed to receive the ERIP benefits, the Grandfathered Participant shall automatically receive the applicable ERIP benefits for the Grandfathered Participant’s ERIP

“Group” (see Section 4.1033(b) below). The date to be used for the purpose of determining the proper ERIP Group for a Grandfathered Participant shall be the Grandfathered Participant’s last day on the City payroll. (A City retiree who retired on or after June 26, 2009, but before the ERIP Beginning Date, who did not belong to any ERIP Group as of the retiree’s last day on the City payroll is not a Grandfathered Participant, and shall not be eligible to receive the ERIP benefits.) A Grandfathered Participant shall receive priority over ERIP Eligible Filers with regards to being within the general 2,400 ERIP limit, in that a Grandfathered Participant shall be deemed to have submitted (and the CAO’s office shall be deemed to have received) a completed ERIP Election Form when the retirement application resulting in the Grandfathered Participant’s retirement was first filed with LACERS. A Grandfathered Participant receiving the ERIP benefits shall count towards the 2,400 ERIP limit. However, a Grandfathered Participant in a Limited Classification shall not be guaranteed to receive the ERIP benefits. A Grandfathered Participant who, as of the Grandfathered Participant’s last day on the City payroll, was in a classification determined to be a Limited Classification shall not receive priority over ERIP Eligible Filers with regards to being within that Limited Classification’s ERIP limitation number. Rather, the ERIP Eligible Filers and the Grandfathered Participants to be allowed within that Limited Classification’s ERIP limitation shall be determined by the Initial LACERS Membership Date priority, tiebreakers, and waiting lists as set forth above in Section 4.1033(a)(3)(i)-(ii).

(5) An ERIP Eligible Filer may rescind the ERIP Eligible Filer’s ERIP Election Form by delivering, to the CAO’s office, a completed ERIP Rescission Form (as promulgated by the CAO’s office) within seven (7) calendar days of delivery, to the ERIP Eligible Filer’s address on file with LACERS, of notification that the ERIP Eligible Filer’s ERIP Election Form has been approved. The ERIP Election Form may not be rescinded after the seven (7) calendar days have passed.

(6) To minimize the impact on City services, an ERIP Eligible Filer may not select the ERIP Eligible Filer’s effective date of retirement under the ERIP. While Management may take the person’s preferences into account, Management shall determine the effective date of retirement for a person retiring under the ERIP.

(i) The portion of Los Angeles Administrative Code Section 4.1005 stating that a person’s effective date of retirement shall
be not less than thirty (30) nor more than sixty (60) days from and after the filing of the person’s LACERS retirement
application shall not apply to persons retiring under the ERIP.

(ii) Management’s decision as to a person’s effective date of retirement under the ERIP shall be final and binding,
regardless of whether the ERIP Eligible Filer agrees with Management’s decision. The ERIP Eligible Filer may be required to
retire as soon as administratively possible, or may be required to continue working for the City for an extended period of time.
The CAO may promulgate rules that Management shall follow regarding the effective dates of retirement for ERIP Eligible
Filers.

(7) During the forty-five (45)-day ERIP window period, LACERS shall not accept a non-ERIP retirement application from a person eligible for the ERIP, defined as a person who, as of the ERIP Beginning Date, belongs to at least one of the five ERIP Groups listed below in Sections 4.1033(b)(1)-(5). After the forty-five (45)-day ERIP window period has expired, any LACERS member may elect to retire pursuant to standard, non-ERIP LACERS procedures and provisions.

(i) All applications for non-ERIP LACERS retirements submitted by persons eligible for the ERIP, and still pending as of

the beginning of the forty-five (45)-day ERIP window period, shall be held in abeyance for the duration of the forty-five (45)- day ERIP window period. Such ERIP-eligible persons may elect to submit an ERIP Election Form, or, alternatively, they may wait until after the forty-five (45)-day ERIP window period has expired, at which point their non-ERIP retirement applications shall continue to be processed. Such ERIP-eligible persons who elect to submit an ERIP Election Form shall not receive priority with respect to being within the 2,400 person ERIP limit, and shall not receive priority with respect to being within a Limited Classification’s ERIP limitation number.

(8) Accumulated Sick and Vacation Time is not payable to persons retiring under the ERIP, and such persons shall not be entitled to a payment of Accumulated Sick and Vacation Time upon retirement. In addition to the ERIP benefits set forth below in Section 4.1033(b), which include the Separation Payments in Sections 4.1033(b)(4)(i) and 4.1033(b)(6), persons retiring under the ERIP shall receive a severance payment in the amount of what would be the person’s Accumulated Sick and Vacation Time payment if the person were retiring pursuant to standard, non-ERIP retirement policies and procedures (Severance Payment). This Severance Payment and the applicable Separation Payment, as set forth below in Sections 4.1033(b)(4)(i) and 4.1033(b)(6), shall be paid over two separate calendar years, with the City selecting the payment dates. This Severance Payment and the applicable Separation Payment, as set forth below in Sections 4.1033(b)(4)(i) and 4.1033(b)(6), shall constitute, and be administered as, a Bona Fide Separation Pay Plan under Internal Revenue Code Section 457(e)(11) because (A) these payments are payable only to a person who has submitted an ERIP Election Form during the forty-five (45)-day ERIP window period and who actually has a severance from employment pursuant to the ERIP; (B) the amount payable does not exceed two times the person’s annual rate of pay (taking into account only pay that does not exceed the maximum amount that may be taken into account under a qualified plan pursuant to Internal Revenue Code Section 401(a) (17) for the year in which the person has the person’s severance from employment); and (C) the payments shall be completed by the end of the second calendar year following the calendar year in which the employee separates from City service. Any tax liabilities arising from any Severance Payments and/or Separation Payments shall be the sole responsibility of the person(s) receiving the payments.

(i) A Grandfathered Participant’s retirement is not considered a retirement under the ERIP, even if the Grandfathered

Participant receives the ERIP benefits. Therefore, the above provisions pertaining to Accumulated Sick and Vacation Time and the Severance Payment do not apply to Grandfathered Participants who receive the ERIP benefits. Instead, a Grandfathered Participant who receives the ERIP benefits either has already received, or shall receive, the Grandfathered Participant’s Accumulated Sick and Vacation Time payment, if any, pursuant to standard, non-ERIP retirement policies and procedures. Payment of Accumulated Sick and Vacation Time to such a Grandfathered Participant is not a retirement benefit. A Grandfathered Participant who receives the ERIP benefits shall not receive the Severance Payment, but shall receive the

applicable Separation Payment as set forth below in Sections 4.1033(b)(4)(i) and 4.1033(b)(6). The applicable Separation Payment shall be paid over two separate calendar years (with the City selecting the payment dates), and shall constitute, and be administered as, a Bona Fide Separation Pay Plan under Internal Revenue Code Section 457(e)(11). Any tax liabilities arising from any Accumulated Sick and Vacation Time payments and/or Separation Payments shall be the sole responsibility of the person(s) receiving the payments.

(ii) The Severance Payment shall be paid by the City, and the cost of the Severance Payment shall remain a cost of the City.

The Separation Payment shall also be paid by the City. However, the cost of the Separation Payment shall be an obligation of the LACERS members, and shall be recouped by the City through the provisions set forth below in Section 4.1033(a)(9)(i)- (iii).

(iii) Neither the Severance Payment nor the Separation Payment shall be considered a retirement benefit.

(9) The ERIP actuarial cost, as determined by the LACERS actuary, and the total cost of the Separation Payments shall, together, be known as the “ERIP Cost Obligation.” The ERIP Cost Obligation shall be an obligation of the LACERS members. The LACERS actuary has determined the preliminary ERIP Cost Obligation to be $271 million, as presented in the actuarial report dated September 25, 2009, based on a projection of 2,229 ERIP Eligible Filers actually retiring and Grandfathered Participants actually receiving the ERIP benefits.

(i) LACERS members’ payment of the ERIP Cost Obligation shall commence on July 1, 2011, and end on June 30, 2026, or

when the ERIP Cost Obligation is fully paid, whichever comes first. The payment shall consist of a one percent (1%) increase in the LACERS active employee retirement contribution rate of six percent (6%) (of which one-half percent (0.5%) is the survivor contribution portion), so that the total LACERS active employee retirement contribution rate shall be seven percent (7%) for all LACERS members. After all ERIP Eligible Filers actually retiring under the ERIP have retired, the LACERS actuary shall re-calculate the ERIP Cost Obligation based on the number of ERIP Eligible Filers actually retiring and Grandfathered Participants actually receiving the ERIP benefits, using the same methodology used to determine the preliminary ERIP Cost Obligation. However, the City reserves the right to increase the LACERS active employee contribution rate for new City hires, in accordance with all applicable laws and practices.

(ii) The LACERS active employee retirement contribution rate for LACERS members hired prior to 1983 (Defrayal Group)

shall be adjusted to six percent (6%) (of which one-half percent (0.5%) is the survivor contribution portion) upon the effective date of this ordinance. Commensurate with Section 4.1033(a)(9)(i), above, employees in the Defrayal Group shall have their retirement contribution increased from six percent (6%) to seven (7%) on July 1, 2011. All savings from the elimination of defrayal shall be credited towards the payment of the ERIP Cost Obligation.

(iii) Once the City has recouped the ERIP Cost Obligation, the LACERS active employee retirement contribution rate shall

be adjusted to six percent (6%) (of which one-half percent (0.5%) is the survivor contribution portion) for all City employees who were LACERS members as of the ERIP Beginning Date (including those in the Defrayal Group). However, the City reserves the right to increase the LACERS active employee retirement contribution rate for new City hires, in accordance with all applicable laws and practices.

(10) In order for the ERIP to meet its goal of assisting with the City’s financial situation, the City intends to limit the backfilling of positions vacated due to retirements under the ERIP. Therefore, to the extent allowed under the City Charter, the Los Angeles Administrative Code, and any other applicable law: From July 1, 2009, to June 30, 2024, approval of both City Council and the Office of the Mayor shall be necessary prior to backfilling a position vacated due to retirements under the ERIP. The total number of City positions vacated due to retirements under the ERIP shall not be backfilled by more than seven (7%) in the City fiscal year 2010, nor by more than six percent (6%) in each of the City fiscal years 2011 through 2024. These backfill rates may be exceeded only if the cumulative prior years’ actual backfill rate was less than the maximum cumulative rate allowed, pursuant to the Maximum Backfill Rates table below. For example, if the City backfills only five percent (5%) in fiscal year 2010, then the City’s allowed backfill rate in a future year may be increased.

MAXIMUM BACKFILL RATES
Backfill
Fiscal Year
In One Year Cumulative
MAXIMUM BACKFILL RATES
Backfill
Fiscal Year
In One Year Cumulative
2010 7% 7%
2011 6% 13%
2012 6% 19%
2013 6% 25%
2014 6% 31%
2015 6% 37%
2016 6% 43%
2017 6% 49%
2018 6% 55%

2019 6% 61% 2020 6% 67% 2021 6% 73% 2022 6% 79% 2023 6% 85% 2024 6% 91%

(11) The ERIP shall not affect the existing LACERS requirement that, in order for a LACERS member to leave a continuance to a spouse or domestic partner, the marriage must have occurred, or the proper domestic partnership document(s) must have been filed with LACERS or with the State of California, at least one (1) year prior to the LACERS member’s effective date of retirement.

(12) Persons retiring under the ERIP shall be eligible to be employed by the City under the conditions set forth in City Charter Section 1164. However, persons retiring under the ERIP shall not be allowed to enter into a personal services contract with the City prior to July 1, 2011, unless the personal services contract is approved by City Council and the Office of the Mayor.

(b) Persons retiring pursuant to the ERIP shall receive benefits pursuant to the following terms. (For purposes of the ERIP, “Service” and “Service Credit” shall have the same meanings as those terms are defined in Los Angeles Administrative Code Section 4.1001.):

(1) “Group 1” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP

Beginning Date, would be eligible for an unreduced or standard retirement with less than thirty-three (33) years of Service.

(i) Each Group 1 member retiring under the ERIP shall receive three (3) additional full-time years of Service and three (3)

additional full-time years of Service Credit.

(2) “Group 2” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP

Beginning Date, have a minimum of thirty-three (33) years of Service, but have not reached fifty-five (55) years of age.

(i) Each Group 2 member retiring under the ERIP shall receive the additional amount of age credit necessary to be eligible

for an unreduced or standard retirement. In addition, each Group 2 member retiring under the ERIP shall receive three (3) additional full-time years of Service and three (3) additional full-time years of Service Credit.

(3) “Group 3” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP

Beginning Date, have less than thirty-three (33) years of Service and who are within five (5) years of the age credit and/or Service necessary to be eligible for an unreduced or standard retirement. To be a member of Group 3, the amount of time that a LACERS member is lacking in age credit to be eligible for an unreduced or standard retirement, plus the amount of time that the member is lacking in Service to be eligible for an unreduced or standard retirement, must, in sum, not exceed five (5) full-time years.

(i) Each Group 3 member retiring under the ERIP shall receive between a minimum of three (3) full-time years and a

maximum of five (5) full-time years of additional age credit and/or both Service and Service Credit in order to be eligible for an unreduced or standard retirement. Between three (3) full-time years and five (5) full-time years, fractional years shall be calculated and prorated in determining the amount of additional age credit and/or both Service and Service Credit to be received.

(ii) Each Group 3 member retiring and receiving credit under the ERIP shall be provided with a written breakdown of the

amount of age credit, and both Service and Service Credit.

(4) “Group 4” LACERS members: This group consists of all full-time and part-time LACERS members who, as of the ERIP

Beginning Date, have a minimum of thirty-three (33) years of Service and have reached a minimum of fifty-five (55) years of age.

(i) Each Group 4 member retiring under the ERIP shall receive a Separation Payment of $1,000.00 for each year of Service.

The Separation Payment for a fractional year shall be prorated. This Separation Payment shall not be considered a retirement benefit. This Separation Payment shall be paid by the City, which shall recoup the cost of the Separation Payment from the

LACERS members as set forth above in Sections 4.1033(a)(9)(i)-(iii).

(ii) Any time purchased under Los Angeles Administrative Code Section 4.1020 (GSB) shall not be included in the

calculation of the Separation Payment for Group 4 members. Any reciprocal time under Los Angeles Administrative Code Section 4.1096 shall not be included in the calculation of the Separation Payment for Group 4 members. Any time purchased

under Los Angeles Administrative Code Section 4.1019 (PSB) shall not be included in the calculation of the Separation Payment for Group 4 members.

(5) “Group 5” LACERS members: This group consists of all full-time and part-time LACERS members whose first day of City

employment was on or before December 31, 1982; whose retirement contribution rate is less than six percent (6%); and who, as of the ERIP Beginning Date, are not within five (5) years of the age and/or Service necessary to be eligible for an unreduced or standard retirement.

(i) Each Group 5 member retiring under the ERIP shall receive five (5) additional full-time years of Service and five (5)

additional full-time years of Service Credit towards an early or reduced retirement.

(ii) The ERIP does not affect the retirement benefit reduction factors that apply to early or reduced retirements.

(6) Members of Groups 1, 2, 3, and 5 retiring under the ERIP shall each receive a Separation Payment of $15,000.00. This Separation Payment shall not be considered a retirement benefit. This Separation Payment shall be paid by the City, which shall recoup the cost of the Separation Payment from the LACERS members as set forth above in Sections 4.1033(a)(9)(i)-(iii).

(c) The following provisions and limitations shall apply to the ERIP benefits set forth above in Section 4.1033(b):

(1) Any additional age credit provided under the ERIP shall be applied towards the fifty-five (55)-year minimum age requirement

for LACERS retiree health subsidies. Any applicable additional Service and/or Service Credit provided under the ERIP shall count toward the retiree health subsidy formula. ERIP Group 5 members are not guaranteed eligibility for any LACERS retiree health subsidies.

(2) A person retiring under the ERIP whose applicable ERIP Group changes between the ERIP Beginning Date and the person’s

effective date of retirement shall select the Group to which the person wishes to belong (that is, either the person’s applicable Group as of the ERIP Beginning Date, or the person’s applicable Group as of the person’s effective date of retirement).

(3) A person retiring under the ERIP who belongs to a certain ERIP Group due to the purchase of GSB time may attempt to change

the person’s Group by requesting a refund of the GSB time purchased, provided that the request for refund is consistent with existing GSB program policies. To change Groups in this manner, the request for refund must be approved by LACERS prior to the person’s effective date of retirement.

(4) A person’s ERIP service retirement allowance may never exceed the person’s Final Compensation as defined in Section 4.1001.

This provision is intended to comport with Section 4.1007(c).

(5) A person eligible under the GSB program to purchase time due to service in another government agency shall be allowed to apply the purchased time towards additional Service Credit under an ERIP retirement. For the purchased GSB time to be applied towards additional Service Credit, the person must follow the existing GSB purchasing policies, and must have completed the GSB purchase prior to the person’s effective date of retirement. This section is not meant to supersede or otherwise affect Section 4.1033(b) (4)(ii), above, which provides that any time purchased under the GSB program shall not be included in the calculation of the Separation Payment for Group 4 members.

(6) The ERIP does not extend any deadlines for purchasing Service Credit under any Service Credit purchase programs, including
GSB, PSB, Back Contributions, and Re-deposits. All such purchases must be paid off prior to the LACERS member’s effective date of
retirement.

(7) If a person is approved by the CAO’s office for retirement under the ERIP, but the person dies prior to the person’s effective
date of retirement, the person’s eligible spouse, as defined in former Section 4.1044(a), or qualified domestic partner, as defined in
former Section 4.1044.4, if any, shall be entitled to survivorship benefits as if the person retired under the ERIP with one hundred
percent (100%) continuance to the person’s survivor.

(8) Any benefit payable pursuant to the ERIP is subject to the requirements and limitations applicable to benefits payable from a
qualified governmental pension plan under Internal Revenue Code (Code) Sections 401(a) and 414(d), and the regulations and
guidance issued under those Code sections. Therefore, any ERIP benefits may be adjusted, as necessary, to maintain the tax qualified
status of LACERS.

(9) To work toward the ERIP being cost-neutral to the City, an “ERIP 1% Reduction” shall apply to all ERIP Eligible Filers
actually retiring under the ERIP and all Grandfathered Participants actually receiving the ERIP benefits (with the exception of ERIP
Group 4 members, as noted below). The ERIP 1% Reduction means that, for each ERIP Eligible Filer actually retiring under the ERIP
and each Grandfathered Participant actually receiving the ERIP benefits, such person’s entire retirement allowance, including the
ERIP benefits, shall be reduced by 1%. The formula for calculating such a person’s actual retirement allowance shall be: The person’s
full retirement allowance, including ERIP benefits (that is, the person’s full retirement allowance, including the ERIP benefits, before
the ERIP 1% Reduction) multiplied by 0.99. For example, for Groups 1, 2 and 3, the person’s actual retirement allowance shall be:

[Final Compensation x Service Credit x Retirement Factor of 0.0216] x 0.99

For Group 5, the person’s actual retirement allowance shall be:

[Final Compensation x Service Credit x Retirement Factor of 0.0216] x [Reduction Factor] x 0.99. The Reduction Factor is the standard LACERS Early Retirement Reduction Factor.

The ERIP 1% Reduction shall not apply to members of ERIP Group 4.

(d) Unless otherwise specified, the provisions in the City Charter and the Los Angeles Administrative Code pertaining to LACERS shall not be affected by the ERIP.

(e) It is the intent of the City and the LACERS Unions that the ERIP be envisioned as cost-neutral to the City. The increase in the employee retirement contribution rate and the elimination of defrayal (Sections 4.1033(a)(9)(i)-(ii) above), along with the ERIP 1% Reduction (Section 4.1033(c)(9) above), are mechanisms designed for working toward cost-neutrality.

(f) If the government of the United States or a final court of competent jurisdiction determines that one or more provisions of this Chapter pertaining to the ERIP are unlawful or invalid, the remaining provisions shall remain in full force and effect.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13.

(a) Wherever “SIP” is used in this Chapter, it shall refer to the Separation Incentive Program. The intent of the City in promulgating the SIP is to address the City’s significant financial challenges while minimizing the impact on City services, by incentivizing eligible employees to retire. The SIP is not a retirement benefit. Under no circumstances shall the SIP payments made by the City be considered in any calculation of a retirement benefit or division of a LACERS member’s retirement benefit. Rather, the SIP is a program whereby the City, as employer, has agreed with certain bargaining units to provide two lump-sum, non-pensionable incentive payments to those LACERS members who are eligible for a Full LACERS retirement and who the Office of the City Administrative Officer (CAO), in its sole discretion, has determined to have met all requirements of the SIP program (SIP Eligible Filers). The following provisions and limitations shall apply to the processing of retirement applications by LACERS under the SIP:

(b) To minimize the impact on City services, a SIP Eligible Filer who elects to retire under the SIP may not select their effective date of retirement. Instead, in order to effectuate the City’s intent to assist the City’s financial situation while minimizing the impact on City services, the LACERS General Manager or their designee (LACERS Management) shall determine the effective date of retirement for a person retiring under the SIP.

(1) The portion of Los Angeles Administrative Code Section 4.1005 stating that a person’s effective date of retirement shall be not

less than thirty (30) nor more than sixty (60) days from and after the filing of the person’s LACERS retirement application shall not apply to persons retiring under the SIP.

(2) LACERS Management's decision as to a person’s effective date of retirement under the SIP shall be final and binding,

regardless of whether the SIP Eligible Filer agrees with LACERS Management’s decision. The SIP Eligible Filer may be required to retire as soon as administratively possible, or may be required to continue working for the City for a longer period of time. The CAO may promulgate rules that LACERS Management shall follow regarding the effective dates of retirement for SIP Eligible Filers. Such rules shall be determined solely by the CAO, based on the City’s intent to minimize the impact on City services and maximize the ability of the SIP to address the City’s financial challenges.

(c) The three-month period from November 1, 2020, through and including January 31, 2021, shall be referred to herein as the “SIP Period”. During the SIP Period, LACERS shall not accept a non-SIP retirement application from a person eligible for Full Retirement or Early Retirement After the SIP Period has expired, any LACERS member who is otherwise eligible to retire may apply to retire, and LACERS shall accept and process new non-SIP retirement applications pursuant to standard, non-SIP LACERS procedures and provisions.

(1) All applications for non-SIP LACERS retirements previously submitted to LACERS by persons eligible for Full Retirement or Early Retirement, and still pending as of the beginning of the SIP Period, shall be held in abeyance for the duration of the SIP Period. After the SIP Period has expired, LACERS shall continue to process previously submitted non-SIP retirement applications pursuant to standard, non-SIP LACERS procedures and provisions.

(d) Notwithstanding any other provision of the City Charter or Los Angeles Administrative Code, a SIP Eligible Filer who elects to participate in the SIP may not withdraw from LACERS their application to retire under the SIP after the time when their SIP agreement with the CAO becomes final. A SIP Eligible Filer’s SIP agreement is final if it is not rescinded before 3:00 p.m. on the seventh business day after the SIP Eligible Filer submitted it to the CAO, and, for SIP applicants submitting their applications on or before August 3, 2020, if it is not rescinded before the additional rescission period ending at 3:00 p.m. on September 10, 2020.

SECTION HISTORY

Added by Ord. No. 186,765, Eff. 9-23-20.