Los Angeles Municipal Code Ch. 16 Pension Savings Plan for Part-Time, Seasonal and

TEMPORARY EMPLOYEES

Section 4.1600 Purpose and Authority for Pension Savings Plan. 4.1601 Definitions. 4.1602 Commencement of Participation. 4.1603 Pension Savings Plan Contributions.

4.1604 Pension Savings Investment Fund and Trust. 4.1605 Investment Accounts. 4.1606 Benefit Distributions. 4.1607 Disability or Death. 4.1608 Division of Participant’s Community Property Interest in the Plan. 4.1609 Changes in Distribution. 4.1610 Administration of the Plan. 4.1611 Transfers to or from Comparable Plans. 4.1612 Transfers to Other City Plans. 4.1613 Amendment or Termination of the Pension Savings Plan. 4.1614 Rights of the Participants. 4.1615 Miscellaneous.

This Pension Savings Plan is designed to provide retirement benefits for certain part-time, seasonal and temporary employees of the City of Los Angeles who are not members of the Los Angeles City Employees’ Retirement System, the Fire and Police Pension Plans or the Water and Power Employees’ Retirement Plan. The plan is provided to employees in lieu of participation in the Social Security System. The Plan is intended to comply with Section 457 of the Internal Revenue Code of 1986, the Omnibus Budget Reconciliation Act (OBRA) of 1990, and applicable Treasury regulations. The Plan shall be considered an employee benefit plan or savings plan for purposes of California Civil Code Section 5106(b), as amended from time to time, or its successor sections.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93. Amended by: First Sentence, Ord. No. 173,272, Eff. 6-25-00, Oper. 7-1-00.

(a) “Administrator” means a duly authorized designee for the purpose of acting as the City’s agent with respect to the Plan. The General Manager of the Personnel Department shall be the Plan Administrator, however, the City may elect to contract with one or more firms to provide services related to the Plan.

(b) “Beneficiary” means any person, trust, firm, or corporation or any combination thereof, designated by a participant to receive benefits under the Plan.

(c) “City Contribution” means an amount equal to 3.0% of a Participant’s Compensation that is credited by the City as deferred compensation to such participant’s Book Account (also referred to as Investment Account) in the Plan.

(d) “Code” means the Internal Revenue Code of 1986, as amended.

(e) “Compensation” means all wages or salaries to be paid to an employee for services rendered, without deduction for any portion thereof deferred under the provisions of this Plan, but shall not exceed the contribution and benefit base determined under Section 230 of the Social Security Act for such Plan Year.

(f) “Eligible employee” means any part-time, seasonal or temporary officer or employee of the City who is not a member of any other City Retirement plan.

(g) “Employer” or “City” means all offices, bureaus and departments of the City of Los Angeles and included departments which have control of their own definite revenues.

(h) “Normal Retirement” means a Participant’s separation from service at an age no earlier than the earliest age of voluntary retirement without actuarial or similar reduction for an employee similarly situated who is a member of the Los Angeles City Employees’ Retirement System, and no later than age 70 1/2.

(i) “Participant” means any eligible employee or officer of the City who is a member of the Pension Savings Plan.

(j) “Participant Contribution” means an amount equal to 4.5% of a participant’s compensation that is deferred and credited to such participant’s Investment Account in the Plan as a term and condition of the Participant’s employment with the City.

(k) “Plan” means the City of Los Angeles Pension Savings Plan, the terms and provisions of which are herein set forth, as the same may be amended from time to time.

(l) “Plan Year” means each 12-month period beginning on January 1 and ending on December 31.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93. Amended by: Subsec. (a), Ord. No. 170,512, Eff. 6-10-95; Subsec. (h), Ord. No. 173,272, Eff. 6-25-00, Oper. 7-1-00.

An eligible employee shall automatically become a participant in the Plan on the later of (i) the effective date of the Plan or (ii) the date of commencement of employment status which causes the employee to become eligible for participation in the Plan. An agreement for participation shall be executed for each participant as a condition of employment. An eligible employee shall cease to be a participant upon termination from City service or on the commencement of participation in one of the City’s other retirement or pension plans. An eligible employee shall cease to be a participant upon the distribution of the participant’s interest in the investment account.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

(a) Each eligible employee who becomes a participant shall defer 4.5% of their compensation for each plan year, and the City shall credit such participant contribution to the participant’s investment account. The City shall further credit to the investment account of each participant an amount equal to 3.0% of such participant’s compensation for the plan year. The 4.5% of compensation deferred by the participant and the 3% of compensation credited by the City shall total 7.5% of the participant’s compensation for the plan year.

(b) For any calendar year, total participant contributions plus City contributions credited to the participant’s investment account shall not exceed the lesser of (1) $7,500, as adjusted for the cost-of-living in accordance with Internal Revenue Code section 457(e)(15) for taxable years beginning after December 31, 1996, or (2) 33-1/3 percent of the participant’s compensation.

(c) The Controller shall cause such deferrals and City contributions to be made for each payroll period during which the employee is a participant in the Plan.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93. Amended by: Subsec. (b) Ord. No. 172,105, Eff. 7-14-98.

The City shall establish a separate City fund (the “Pension Savings Investment Fund”) as a method of setting aside a portion of its assets to meet the City’s obligations under the Pensions Savings Plan. All participant and City contributions shall be invested in this fund and shall be held by the City in trust for the exclusive benefit of participants and their beneficiaries in accordance with the terms and conditions of the Plan, and for defraying reasonable expenses of administration of the Plan. Neither the existence of the Plan, nor of the trust nor of the Investment Fund shall entitle any participant, beneficiary or other person to a claim or lien against the assets of the Investment Fund, the Plan or the trust. The participants and their beneficiaries shall have only the right to receive the benefits payable under the Plan as provided in this chapter.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93. Amended by: In Entirety, Ord. No. 172,105, Eff. 7-14-98.

The City shall cause to be established for each participant a book account to provide a method of measuring the City’s obligation to the participant under the Pension Savings Plan. All participant and City contributions as well as earnings thereon, any applicable fees and any losses shall be credited or debited, as appropriate, to such investment account. The assets of the account shall be invested in such investments as the law may allow.

The City shall not be liable to participants in the Pension Savings Plan for any losses on any investment credited to any account. The interest of each participant in contributions and any earnings thereon, credited to the investment account will be immediately 100% vested and

nonforfeitable at all times.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93. Amended by: First Unnumbered Para., Ord. No. 172,105, Eff. 7-14-98.

(a) The City shall distribute benefits under the Pension Savings Plan to a participant or the participant’s beneficiary only upon termination of the participant’s employment with the City or the participant’s retirement, disability or death.

(b) If a participant retires or terminates from City service, the full amount credited to the participant’s account plus or minus subsequent investment gains or losses, less any income taxes required to be withheld, shall be distributed to the Participant in a single cash payment sixty (60) days from the time of the Participant’s retirement or separation from City service. Provided however, a Participant may instead irrevocably elect, on a form provided by the City or its duly authorized agent: (i) to transfer such amount to another Eligible State Deferred Compensation Plan, (ii) defer distribution of such amount for up to 24 months pending rehire, or (iii) if such amount exceeds $3500, leave the accumulated funds in the Plan. A request to withdraw funds left in the Plan may be made at any time after retirement or separation from City service.

(c) The Participant may elect the payment option under subsection (b) only prior to the commencement of any distribution of any distribution under the Plan.

(d) No financial hardship withdrawals shall be allowed under the Plan while a Participant remains an active City employee.

(e) Distributions shall commence not later than the later of: (1) sixty (60) days after the close of the plan year in which the participant attains normal retirement age, or (2) sixty (60) days after the close of the plan year in which the participant separates from City service.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

(a) In the event of total disability of a participant while an employee of the City, the City shall distribute the entire balance of the participant’s account in accordance with Sec. 4.1606. For purposes of this section, a participant shall be considered totally disabled if the participant is unable to engage in any substantial employment by reason of any medically determinable physical or mental impairment. Any determination of a participant’s total disability shall be at the discretion of the City.

(b) In the event of the death of the participant while the participant is an employee of the City, the City shall cause to be paid to the participant’s beneficiary or beneficiaries the full amount of compensation credited to the participant’s Investment Account less fees plus or minus subsequent gains or losses, but less any income taxes required to be withheld, in one or more of the following methods to be selected at the discretion of the City: (i) consecutive monthly payments for a number of months not less than six (6) and not more than one hundred and eighty (180), (ii) consecutive monthly payments for the life of the participant’s beneficiary or beneficiaries except that this option shall be available for spouses only, or (iii) a single payment. Total benefits distributed shall not exceed the sum of the amounts deferred by the participant plus or minus gains or losses, but less any income taxes required to be withheld.

(c) In the event of the death of the participant subsequent to termination of employment but prior to receipt of all amounts due under the Plan, the City shall cause to be paid to the participant’s beneficiary or beneficiaries the balance, if any, in the participant’s Investment Account which would have been paid to the participant in one or more of the methods provided in Subsection (b) of this section. The method of disbursement shall be at the discretion of the City.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

In the event the participant’s interest in the Plan is of a community property nature, in whole or part, and such community property interest is awarded, in whole or part, to the participant’s spouse pursuant to proceedings for legal separation, dissolution, nullity, or other proceedings to terminate the marriage, then that portion of the participant’s interest in the Plan awarded to the participant’s spouse shall be paid to the participant’s spouse, but less nay income taxes required to be withheld, provided that the amount so paid shall not exceed the full amount of compensation credited to the participant’s account plus or minus subsequent gains or losses, less any income taxes required to be withheld,

and further provided that the participant’s account shall be reduced accordingly. Distribution of such community property interest may not be made until distribution commences for the participant.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

Notwithstanding any other provisions of this section, the City may change the time or methods of distribution of benefits available under the Plan provided such changes comply with Internal Revenue Service rules and regulations.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

(a) The Plan shall be administered by the General Manager of the Personnel Department, provided, however, that said General Manager may contract with one or more private firms for services related to the Plan. Contractor fees shall be reimbursed from earnings of the Plan and paid from the earnings of the participant’s account. The administrator shall be responsible for preparation and delivery to the Council and to Plan participants, of annual reports concerning the administration and financial condition of the Plan.

(b) The Pension Savings Plan Advisory Committee, which shall consist of the members set forth in Section 4.1407 of the Los Angeles Administrative Code, shall provide advice to the General Manager of the Personnel Department regarding the administration of the Plan and regarding the methods of distribution of benefits.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93. Amended by: In Entirety, Ord. No. 170,512, Eff. 6-10-95.

If a participant terminates from City service in order to accept employment with another eligible employer (within the meaning of Section 457 of the Internal Revenue Code) which sponsors and “eligible deferred compensation plan” and if the participant so elects on a form provided by the City or its authorized delegate, no distribution of amounts credited to such participant’s account shall be made under this Plan but instead shall be transferred to the “eligible deferred compensation plan” of the new employer of such participant, provided that such plan specifically authorizes acceptance of amounts transferred in this manner. In the event that a participant has entered City service after having been a participant i another such “eligible deferred compensation plan”, the City will accept a transfer of funds from such other plan for credit to such participant’s Investment Account.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

A Participant who remains an active City employee, who commences participation in one of the City’s other retirement plans and who meets the eligibility requirements of any other “eligible deferred compensation plan” sponsored by the City, may elect to transfer the Participant’s membership in the Pension Savings Plan and any amounts credited to the Participant’s investment account to the City’s Deferred Compensation Plan. Upon transfer to a position which provides for membership in one of the City’s other retirement plans, both Participant and City contributions to the Pension Savings Plan shall cease.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

The Pension Savings Plan may be amended or terminated by the City at any time or the City may, without amending or terminating the Plan, cease to set aside assets under the Plan. No amendment or termination of the Plan, and no cessation of the setting aside of assets shall reduce or impair the rights of any participant or beneficiary which have already accrued. In the event the Plan is terminated by the City, the City shall distribute to each participant in a single cash payment the balance in such participant’s Investment Account, less any tax liabilities, as soon as practicable after such termination.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

Each participant shall be deemed to have assented to all of the terms and conditions of the Plan upon execution of a Participation Agreement. No participant shall have the power or right to sell, transfer, assign, hypothecate, or otherwise dispose of all or any part of the Investment Account or any right which the participant may have under the Plan

Each participant shall have the right to designate a beneficiary or beneficiaries, including contingent beneficiaries, to receive any benefits which may be payable under the Plan upon the death of such participant.

Each participant may request the City to make distribution of benefits to such participant or the designated beneficiaries in any manner authorized in the Plan. The City shall give due consideration to such requests but shall not be bound by them. Final determination regarding the method and manner of all distributions from the Plan shall, at all times, be at the discretion of the City.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.

(a) Nothing in the Plan shall be construed as conferring upon any participant any right to continue employment with the City.

(b) The Plan shall be subject to the applicable laws of the State of California, including but not limited to those laws pertaining to community property, and to the applicable laws of the United States, including but not limited to the Internal Revenue Code of 1954, as amended (26 U.S.C. Sections 1 et seq.). All persons making contributions or accepting or claiming benefits under the Plan shall be bound by and deemed to consent to its provisions.

(c) The captions used in this chapter are for the purpose of convenience only and shall not limit, restrict, or enlarge the provisions of the Plan.

(d) The Plan shall be binding upon and shall inure to the benefit of the City, its successors and assigns, all participants and beneficiaries, and their heirs and authorized representatives.

(e) As used in this chapter, the masculine, feminine, or neuter gender, and the singular or plural number, shall each be deemed to include the others unless the context clearly indicates otherwise.

(f) Any notice or other communication required or permitted under the Plan shall be in writing and, if directed to the City, shall be sent to its principal office and, if directed to a participant or to a beneficiary, shall be sent to such participant or beneficiary at the last known address for such person as it appears in the City’s records.

(g) Each participant in the Plan shall be deemed to have waived any rights to periodic payments of salaries or wages pursuant to the provisions of the Charter concerning periodic payment of salaries or wages to officers and employees of the City.

(h) If any participant terminates employment with the City, dies, or retires, with an unpaid debt owing to the City, and neglects or refuses to liquidate the debt by any other means when due and upon demand, the City shall collect the amounts due from the deferred compensation owed to such participant under the Plan.

(i) The City shall not be liable to any participant, a participant’s beneficiary, heir, successor in interest, or any other person for any losses incurred in connection with the Plan. Any action by the City in investing funds or approving of any such investment of funds shall not be construed to be either an endorsement or guarantee of any investments, nor shall it be construed to attest to the financial soundness or the suitability of any investment for the purpose of meeting future obligations under the Plan.

(j) Except to the extent required by law and except as otherwise provided in the Plan, no right or interest of any kind of a participant or

beneficiary hereunder shall be transferrable or assignable by a participant or beneficiary, nor shall any such right or interest be subject to alienation, anticipation, encumbrance, garnishment, attachment, execution or levy of any kind, voluntary or involuntary.

SECTION HISTORY

Added by Ord. No. 169,047, Eff. 10-23-93.