Los Angeles Municipal Code Art. 1 General Provisions

Section 4.1102 Establishment of Health Care Coverage Account. 4.1102.1 Los Angeles City Employees' Retirement System Health Care Fund. 4.1103 Funding of Programs. 4.1104 Definitions of Service and Service Credit for Retiree Health and Welfare Programs Established in this Chapter; Prospective Application.

It is the purpose of this Chapter to establish Los Angeles City Employees’ Retirement System (“LACERS”) health and welfare programs for former employees who are retired pursuant to the provisions of Division 4, Chapter 10 of this Code, their eligible dependents and their eligible survivors. These benefits may be modified and the conditions of entitlement changed, by ordinance, as authorized in Section 1168 of

the City Charter.

SECTION HISTORY

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

The health and welfare programs established in this Chapter shall be administered by the Board of Administration of the Los Angeles City Employees’ Retirement System (Board). In furtherance thereof, the Board shall contract for suitable plans as authorized in Sections 4.1105 and 4.1106 of this Chapter, or with third- party administrators that contract for suitable plans (such as health care exchanges), to be made available to former employees retired, pursuant to the provisions of Division 4, Chapter 10 of this Code, and former employees retired, pursuant to the provisions of Volume II, Article XI, Part 3 of the Charter, governing the Los Angeles Fire and Police Pension plan (LAFPP), who were enrolled in plans administered by the Personnel Department on December 31, 1999. Effective December 31, 2017, any former employee retired from LAFPP shall be ineligible for enrollment in any program established in this Chapter unless such former employee was enrolled in a plan administered by the Personnel Department on December 31, 1999.

The Board shall have the power to adopt such rules as it deems necessary to administer the health and welfare programs.

SECTION HISTORY

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

The health and welfare programs established in this Chapter, including all administrative costs, shall be funded from the Health Care Coverage Account established in Section 4.1102 of this Chapter and/or the Health Care Fund established in Section 4.1102.1 of this Chapter. Notwithstanding all of the foregoing, the health and welfare programs established in this Chapter, including all administrative costs, shall be paid first from the Health Care Coverage Account, until it is depleted. Upon depletion of the Health Care Coverage Account, the Health Care Fund shall fund the health and welfare programs established in this Chapter, including all administrative costs. The Board shall establish the policies and/or procedures necessary to implement this section.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Ord. No. 185,829, Eff. 11-9-18.

The definitions of Service and Service Credit now set forth in Section 4.1110 for Tier 1 and Section 4.1125 for Tier 3 shall apply prospectively to Members and former Members who retire on or after February 21, 2016. Effective February 21, 2016, a part-time employee Member shall be eligible for a benefit under this Chapter when the Member is age 55 with a minimum of ten years of Service, provided that the Member is receiving a service retirement benefit or disability retirement benefit from LACERS under Chapter 10. After calculating the first ten years of Service, a part-time Member’s health subsidy shall be calculated using Service Credit, which shall be prorated based upon the number of hours the Member worked per pay period. However, employees who became Members of LACERS prior to April 23, 1990, whose health subsidy is based on periods of part-time and less than full-time employment, shall receive a health subsidy based on Service, and not pro-rated Service Credit.

Any retired Member who retired before February 21, 2016, who would have been eligible for a benefit under this chapter had the retired Member retired on or after February 21, 2016, shall be entitled to apply to LACERS, under rules and procedures to be developed by LACERS, to enroll or participate in the retiree health program established by this Chapter. Such retirees shall receive, upon enrollment in a health plan administered by LACERS or the first date of participation in LACERS’ Medical Premium Reimbursement Program, the monthly retiree medical subsidy amount to which they are entitled based upon their prorated Service Credit, effective as of the first date of such enrollment or participation.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Ord. No. 184,134, Eff. 1-22-16; In Entirety, Ord. No. 188,756, Eff. 11-16-25.

The following health and welfare programs are established herein:

(a) A Medical Plan Program which the Board is to administer in accordance with the provisions of Sections 4.1101, 4.1111, 4.1121

and 4.1126 of this Chapter.

(b) A Medical Premium Reimbursement Program which the Board is to administer in accordance with the provisions of Sections

4.1101, 4.1112, 4.1122 and 4.1127 of this Chapter.

(c) A Medicare Part B Basic Premium Reimbursement Program which the Board is to administer in accordance with the provisions

of Sections 4.1101, 4.1113, 4.1123 and 4.1128 of this Chapter.

(d) A Dental Plan Program which the Board is to administer in accordance with the provisions of Section 4.1101, 4.1114, 4.1124

and 4.1129 of this Chapter.

(e) A Survivor Medical Plan Premium Subsidy Program which the Board is to administer in accordance with the provisions of

Sections 4.1101, 4.1115 and 4.1129.1 of this Chapter.

(f) A Health Insurance Reciprocal Subsidy Credit Program which the Board is to administer in accordance with the provisions of

Section 4.1101 and Article 5 of this Chapter.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Ord. No. 184,134, Eff. 1-22-16.

The Board may make discretionary Medical Plan and Dental Plan benefit changes as long as these involve cost increases of no more than one-half of one percent in total annual premium cost. The Board may make changes greater than the above level as long as the changes are submitted to the City Council for review. Any increases that are not acted upon by the Council within 30 days after receipt by the City Clerk of the report to Council for consideration of the increase are deemed approved. Should the Council reject the increase approved by the Board, the Council shall determine the amount, if any, by which the total annual premium cost shall be increased and shall adopt such change by resolution.

SECTION HISTORY

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