Los Angeles Municipal Code Ch. 20 Fire and Police Pension Plan – Tier 5

Section 4.2008.5 Survivorship Benefits for Former Members of Tier 2 Who Transferred to Tier 5. 4.2010 Funding. 4.2012 Actuarial Determinations and Tier 5 Unfunded Liabilities. 4.2014 Member Contributions – Tier 5. 4.2016 Cost of Living Adjustments. 4.2018 Provision of Certain Subsidy Payments by Ordinance. 4.2020 Compliance with Certain Internal Revenue Code Provisions. 4.2022 Compensation Limits. 4.2024 Council Authority to Maintain Tax-qualified Status of Plan. 4.2026 Miscellaneous Provisions. 4.2028 Social Security Participation.

(a) Appointed Members. Each person who shall be appointed as a Department Member on or after January 1, 2002 shall become a Tier 5 Plan Member upon graduation by such person from training at the Police or Fire Academies or equivalent facility imparting basic training as a firefighter or police officer and maintained as such by the City of Los Angeles. A Chief of Police or a Fire Chief who is appointed to that position without having graduated from such facility may become a Member upon appointment. Upon becoming a Tier 5 Plan Member, a person may elect to purchase Years of Service credit for the period of such training in accordance with rules adopted by the Board.

(b) Former Tier 2, 3 & 4 Members. A person formerly a Plan Member under the provisions of Tiers 2, 3, or 4 of the Fire and Police Pension System whose member- ship had previously terminated by reason of resignation or discharge shall upon again being appointed as a Department Member become a Tier 5 Plan Member as of the effective date of such appointment.

(c) Certain Former Tier 2, 3 and 4 Members. Any Plan Member as of January 1, 2002 in Tiers 2, 3, or 4 hired prior to January 1, 2002, who makes an irrevocable election in writing during the election period provided in subsection (c)(1) shall become a Tier 5 Plan Member.

(1) Election Period. The election period shall commence January 2, 2002 and shall remain in effect until the close of business on

December 31, 2002.

(2) Members on Military Leave. Persons who are not active members during the election period provided in subsection (c)(1) due

to service in the armed forces shall have 90 days following their return from active duty or the expiration date of the election period, whichever is later, to make an election to become a Tier 5 Plan Member.

(3) Release of Liability. The Board shall have the authority to establish rules requiring a full and complete release from liability

upon the Plan Member’s election to transfer from Tiers 2, 3 or 4 to Tier 5.

(4) Purchase of Certain Years of Service Credit. If a Plan Member of Tier 2 elected to become a Tier 5 Plan Member pursuant to the provisions of this subsection and was formerly a member of the Los Angeles City Employees’ Retirement System (LACERS) during a period of time that the Plan Member was a paramedic or civilian ambulance employee, such Tier 5 Plan Member shall be entitled to purchase Years of Service credit for all or part of that period of time by depositing with the Fire and Police Pension Plan - Tier 5, in accordance with Board rules, the amount of contributions refunded to the Plan Member for such periods of service plus the amount of interest that would have been credited had those contributions been in the member’s account with the Plan. If such Tier 5 Plan Member does not want to purchase all eligible service, the purchase price shall be prorated based on the percentage of eligible service to be purchased. The purchase shall be completed prior to retiring or entering DROP. The provisions of this paragraph shall become operative on January 20, 2005, and shall not apply to Tier 5 Plan Members who retired or entered DROP prior to that date.

(5) Late Elections. The Board shall not accept late election forms after the close of the Election Period described in Subsection (c) (1). The provisions of this paragraph shall not apply to any member who transferred into Tier 5 prior to January 1, 2017.

(d) Paramedics. In addition to those Department Members described in subsection (a) of this section, persons employed as paramedic trainees shall become Tier 5 Plan Members only upon their certification, as provided by law, as mobile intensive care paramedics or equivalent. Upon becoming a Tier 5 Plan Member, such person may elect to purchase Years of Service credit for the period of such training in accordance with rules to be adopted by the Board. If such a Plan Member had periods of membership in the Los Angeles City Employees’ Retirement System while the Plan Member was a paramedic or civilian ambulance employee, such Plan Member shall be entitled to elect to acquire Years of Service credit for such periods of membership in the Los Angeles City Employees’ Retirement System. Upon such election the Plan Member’s contributions plus interest credited thereon, and the Plan Member’s City service credit shall be transferred to the Fire and Police Pension Plan – Tier 5 in accordance with rules to be adopted by the Board.

(e) Purchase of Credit by Surviving Spouse. A surviving spouse or domestic partner of a Tier 5 Plan Member may complete the

purchase of Years of Service credit elected by the Plan Member.

(f) Prohibition of Double Benefits. No Tier 5 Plan Member may receive double benefits by receiving credit for Years of Service for the same periods of City service from the Los Angles City Employees’ Retirement System (LACERS) and under the provisions of this Tier 5. Further, no Tier 5 Plan Member may transfer credit received from the LACERS while employed in a capacity other than paramedic or civilian ambulance employee, except as otherwise provided in Subsection (i)(2)(D) herein below.

(g) Transfer of Released Liability. Upon the election by a Tier 5 Plan Member to acquire Years of Service credit, the released liability of the Los Angeles City Employees’ Retirement System shall be transferred to the Fire and Police Pension Plan – Tier 5. For the purposes of this subsection, the phrase Released Liability means the City’s share of the actuarially determined present value of benefits under the Los Angeles City Employees’ Retirement System as of the date of transfer.

(h) Department members as of January 1, 2002, who become Plan Members after January 1, 2002. Each person who was appointed as a Department Member prior to January 1, 2002, but who graduates from training at the Police or Fire Academy or equivalent facility imparting basic training as a police officer or firefighter and maintained as such by the City of Los Angeles after January 1, 2002 may, upon their graduation from the respective academy, make an irrevocable election in writing during the election period provided in subsection (c)(1) to become a Tier 5 Plan Member. Those Department Members appointed prior to January 1, 2002, but who graduate from the respective academy after the end of the election period shall have 90 days following their graduation or the expiration date of the election period, whichever is later, to make an irrevocable election to become a Tier 5 Plan Member.

(i) Harbor Department Members. In addition to those Department Members described in Subsection (a) of this section, the following

persons qualify for membership in Tier 5 as provided below:

(1) Persons Appointed On or After January 8, 2006. Each person appointed on or after January 8, 2006, to any of the positions in

the Harbor Department set forth in Section 4.2002(r) of this Chapter shall become a Tier 5 Plan Member upon graduation by the person from academy training required by the Harbor Department. Upon becoming a Tier 5 Plan Member, a person may elect to purchase Years of Service credit for the academy training period in accordance with rules to be adopted by the Board, provided that only academy training time during which the person was a member of the Pension Savings Plan for Part-time, Seasonal and Temporary Employees is eligible for purchase. A Port Warden appointed on or after January 8, 2006, if not already a Tier 5 Plan member, may irrevocably elect in writing at the time of appointment not to become a member of Tier 5.

(2) Persons Appointed Prior to January 8, 2006. A person appointed prior to January 8, 2006 and who is employed on that date

in any of the positions in the Harbor Department set forth in Section 4.2002(r) of this Chapter, including any person in academy training, may make an irrevocable election in writing to become a Tier 5 Plan Member on the terms and conditions set forth below, provided that no person shall become a Tier 5 Plan Member until the person has completed the academy training required by the Harbor Department. A person who does not file an election within the period specified below shall continue as a LACERS member and shall remain a LACERS member if subsequently appointed without a break in Harbor Department service to a Harbor Department sworn position that would otherwise require the person to become a Tier 5 Plan Member.

(A) Election Period. The election period shall commence January 8, 2006, and shall remain in effect until 4:45 p.m. on

January 5, 2007. A written election to transfer to Tier 5 must be received in the office of the Department of Fire and Police Pensions prior to the expiration of the election period, except that a person who has not graduated from the academy by October 5, 2006, shall have 90 days following graduation to make an irrevocable election to become a Tier 5 Plan Member.

(B) Contributions. Each person who transfers from LACERS into Tier 5 shall pay contributions as provided in Section

4.2014(a) of this Chapter retroactive to January 8, 2006. To the extent that the transferring member has already paid contributions to LACERS for these pay periods, those sums shall be credited to meet the member’s obligation required here.

(C) Mandatory Transfer Contribution Payment. Each person who transfers from LACERS to Tier 5 shall pay $5,700 for transferring service credit as provided in Subparagraph (D) below. These contributions shall be credited to the member’s contribution account established pursuant to Section 4.2014(b) upon payment. The Board shall have the authority to establish rules regarding the manner and time within which these contributions shall be paid, including the right to charge interest.

Notwithstanding any provision of Tier 5 or DROP to the contrary, a member shall not be eligible to retire from Tier 5 or to enter DROP until this contribution payment is paid in full, including interest, nor shall benefits be paid to any survivor of the member pursuant to Section 4.2008 of this Chapter until these contributions and interest have been paid in full.

(D) Transfer of Service Credit. Each person who transfers from LACERS into Tier 5 shall have any required academy training time with the Harbor Department and all sworn service with the Harbor Department in port police civil service classifications requiring peace officer status under Penal Code Section 830.1 transferred to Tier 5 from LACERS. Only actual service with the Harbor Department in these classifications shall be transferred; prior service with other City Departments

transferred for purposes of Charter Section 1014 to the Harbor Department shall not be transferred. All funds on deposit in LACERS attributable to service transferred to Tier 5 on behalf of these employees shall be transferred to the Plan. The amount of funds due to the Plan from LACERS shall be mutually agreed upon between the Plan and LACERS and is to include, but not necessarily be limited to, employee contributions, City contributions, and earnings to cover all funded accrued liability for the period of the transferred service. After transferring to Tier 5, a Tier 5 Plan Member may not purchase Years of Service credit for any periods of employment while a LACERS member.

(E) Prohibition of LACERS Retirement During Employment. Each person transferring to Tier 5 who retains service credit with LACERS for periods of service that do not qualify for transfer to Tier 5, shall agree as a condition to the transfer that the person shall not retire from LACERS while the person remains employed as a Department Member, including any period in DROP, due to the prohibition set forth in Charter Section 1164.

(F) Disability Retirement and Survivor Benefits. For purposes of Sections 4.2006 and 4.2008 of this Chapter and Charter Section 1212, a Tier 5 Plan Member who transfers under Subdivision (2) shall be considered a Department Member as defined in Charter Section 1202(e) during all employment periods for which the member receives Years of Service credit pursuant to

Paragraph (D), notwithstanding that the person was not an actual Tier 5 Plan Member at the time of employment. The intent of this provision is that the person shall be considered a Department Member at the time of employment for purposes of these sections, so that the amount of any disability or survivor pension granted pursuant to the provisions of Tier 5 shall be reduced as provided in Charter Section 1212.

(3) Actuarial Funding of the Plan. As authorized by Charter Section 1232(b)(6), inclusion of Harbor Department Members in Tier

5 of the Plan pursuant to Subsection (i) herein shall not trigger the elimination of the 1% payment by the City of Tier 5 employee contributions as provided in Charter Section 1222 and Section 4.2014 of this Chapter. The determination of 100% funded status required by Charter Section 1222 and Section 4.2014 of this Chapter shall be made without regard to any impact resulting from including these employees in Tier 5 of the Plan. The Harbor Department shall reimburse the City so that the City does not incur any costs to the Plan for these employees.

(4) Harbor Department Responsibility for Payment. The Harbor Department shall pay the Plan for all costs and expenses

incurred by the Plan as a result of including Harbor Department Members as members of Tier 5, including any unfunded liability incurred by the Plan. The Harbor Department shall also pay LACERS for all costs and expenses incurred by LACERS in connection with transfers between LACERS and Tier 5 related to the inclusion of these members in Tier 5.

(j) Notwithstanding any other provision of this chapter, any person appointed as Fire Chief or Chief of Police, who is not currently a Department Member, shall have the right to opt out of Plan membership in Tier 5 in order to become a member of the Los Angeles City Employees’ Retirement System. To exercise this right, the Chief must file a written opt out election with the Department of Fire and Police Pensions within seven calendar days of appointment. Once filed, the Chief shall be considered a member of the Los Angeles City Employees’ Retirement System effective as of the date of appointment.

SECTION HISTORY

Chapter and Section Added by Ord. No. 174,367, Eff. 12-19-01. Amended by: Subsec. (c)(4) added, Ord. No. 176,416, Eff. 1-25-05; Subsec. (f) amended and Subsec. (i) added, Ord. No. 177,214, Eff. 1-4-06; Subsec. (j) added, Ord. No. 179,987, Eff. 7-3-08; Subsec. (c)(5) added, Ord. No. 184,853, Eff. 4-6-17.

In addition to the words and phrases defined in the Fire and Police Pension Plans General Provisions in Article XI, Part 3, of the Los Angeles City Charter and for the purposes of this Tier 5, the following words or phrases shall have the meaning ascribed to them in this section, unless a different meaning is clearly indicated in the context.

(a) Member of the Fire Department. Member of the Fire Department means the Fire Chief and a person duly and regularly

appointed in the Fire Department, under civil service rules and regulations or provisions of the Charter, or both, governing the making of original regular and permanent appointments which require the serving of probationary periods but not of original emergency or temporary appointments, to perform duties as a firefighter or as a paramedic for the City, under whatever designation such person may be described in any salary or departmental ordinance providing salaries for the members of the department, but such person shall be a member of the department only until the person’s status as such shall be terminated by reason of retirement, resignation, discharge or for any other reason.

(b) Member of the Police Department. Member of the Police Department means the Chief of Police and a person duly and

regularly appointed in the Police Department, under civil service rules and regulations or provisions of the Charter, or both, governing the making of original regular and permanent appointments which require the serving of probationary periods but not of original emergency or temporary appointments therein, and sworn in, as provided by law, to perform duties as a police officer for the City, under whatever designation such person may be described in any salary or departmental ordinance providing salaries for the members of the department, but such person shall be a member of the department only until the person’s status as such shall be terminated by reason of retirement, resignation or discharge or for any other reason.

(c) Tier 5 Plan Member. Tier 5 Plan Member means a person who is a Department Member and whose pension rights and benefits

are governed by this Tier 5. Status as a Tier 5 Plan Member is limited by the provisions of Section 4.2000.

(d) Qualified Surviving Spouse/Qualified Surviving Domestic Partner.

(1) Qualified Surviving Spouse means a person who is the widow or widower of a deceased Tier 5 Plan Member or Retired
Tier 5 Plan Member and who has been married:

(a) to the Tier 5 Plan Member for at least one year prior to the date of the Plan Member’s nonservice-connected
death while a Plan Member, or

(b) to the Tier 5 Plan Member as of the date of the Plan Member’s service- connected death while a Plan Member, or

(c) to the Retired Tier 5 Plan Member for at least one year prior to the effective date of the Plan Member’s retirement upon a service pension or upon a nonservice-connected disability pension pursuant, respectively, to Section 4.2004 or Section 4.2006(b), or

(d) to the Retired Tier 5 Plan Member as of the effective date of the Plan Member’s retirement upon a service-
connected disability pension pursuant to Section 4.2006(a).

(2) Qualified Surviving Domestic Partner means a person who meets the requirements of Los Angeles Administrative Code
Section 4.2004 and who fulfills the following requirements before the member’s death:

A declaration of Domestic Partnership, signed by both partners, must be on file with the Board of Fire and Police
Pension Commissioners:

(a) for at least one year prior to the date of the Tier 5 Plan Member’s nonservice-connected death while a Plan
Member, or

(b) on the date of the Tier 5 Plan Member’s service-connected death while a Plan Member, or

(c) for at least one year prior to the effective date of the Tier 5 Plan Member’s retirement upon a service pension or
upon a nonservice- connected disability pension pursuant, respectively, to Section 4.2004 or Section 4.2006(b), or

(d) on the effective date of the Retired Tier 5 Plan Member’s retirement upon a service-connected disability pension
pursuant to Section 4.2006(a).

(3) In addition, the survivor must be either the domestic partner or spouse of the member on the date of the member’s death.

(4) For members who transfer to Tier 5 from LACERS pursuant to the provisions of Section 4.2000(i)(2) and who filed an
affidavit or declaration of domestic partnership with LACERS prior to January 8, 2006, who subsequently file a Declaration of
Domestic Partnership with the Board of Fire and Police Pension Commissioners, the filing date of the Declaration filed with
the Board for purposes of this subsection and of Sections 4.2204 and 4.2206 shall be the date that the affidavit or declaration
was filed with LACERS.

(e) Minor Child. Minor Child means a person who is a child or an adopted child of a deceased Tier 5 Plan Member or a Retired Tier 5 Plan Member, but such person shall be a Minor Child only until such person shall attain the age of 18 years or shall marry, whichever shall be earlier. A person may further qualify for the benefits provided for a Minor Child under the provisions of this Tier until the person reaches the age of 22 years if such person is enrolled in school on a full-time basis as determined by the Board but such person’s marriage terminates entitlement to the benefits of a Minor Child.

(f) Dependent Child. Dependent Child means a person who is a child of a deceased Tier 5 Plan Member or a deceased Retired Tier 5 Plan Member, who is not married and who, while under the age of 21 years, had become disabled, either prior to or after the date of death of such Tier 5 Plan Member or Retired Tier 5 Plan Member, from earning a livelihood for any cause or reason whatsoever, but such person shall be a Dependent Child only until the person shall cease to be disabled from earning a livelihood. Should disability cease before the age of 22 years, the limitations set forth in subsection (e) shall be applicable.

(g) Dependent Parent. Dependent Parent means a person who is a parent of a deceased Tier 5 Plan Member or a deceased Retired Tier 5 Plan Member to or for whom such deceased Tier 5 Plan Member or deceased Retired Tier 5 Plan Member, during at least one year immediately preceding the Member’s death, contributed one-half or more of such Dependent Parent’s necessary living expenses and who is unable to pay such expenses without the receipt of a pension, but such person shall be a Dependent Parent only until the person shall be able to pay the person’s necessary living expenses.

(h) Length of Service Pay. Length of Service Pay means any additional gross monthly pay which, by reason of length of service, shall be provided by ordinance or by Memorandum of Understanding.

(i) Special Pay. Special Pay means any additional gross monthly pay which, by reason of assignment to perform special duties

other than hazardous duties, shall be provided by ordinance or Memorandum of Understanding.

(j) Hazard Pay. Hazard Pay means any additional gross monthly pay which, by reason of assignment to perform helicopter duties, two-wheel motorcycle duties or any other hazardous duties, shall be provided by ordinance or Memorandum of Understanding.

(k) Assignment Pay. Assignment Pay means any additional gross monthly pay which, by reason of assignment to perform special

duties or hazardous duties, in a higher class, position, grade, code or other title than the lowest within the Plan Member’s permanent rank, shall be provided by ordinance or Memorandum of Understanding.

(l) Year. Year means a period of 12 months or, in aggregating partial years for purposes of determining Years of Service, means 365 days.

(m) Years of Service. Years of Service means and includes only those periods during or for which the Plan Member was a Department Member of the Fire Department, a Department Member of the Police Department, or a Department Member of the Harbor Department, and whether prior to or after the Plan Member’s becoming a Plan Member and subject to the limitations contained in Section 4.2000 of this Tier 5:

(1) did or shall receive salary, whether in full or reduced amounts thereof;

(2) did or shall receive either a service- connected disability pension or a nonservice- connected disability pension under
any Tier of the Fire and Police Pension Plan if the Plan Member was or shall be restored to active duty as a Department
Member, and did or shall perform the Plan Member’s duties as such for at least one year prior to again retiring or being retired
pursuant to this Tier 5, which year shall not include any time off from work by reason of any injury or illness which had been
caused by or contributed to by any injury or illness which had been sustained or suffered by the Plan Member prior to such
restoration. The restored Plan Member, upon completing one Year of Service following restoration, shall be eligible for such
credit only to the extent that the length of service following restoration matches the period the disability pension was received;
but upon completing three years of restored service, the restored Plan Member is eligible for credit for the entire period the
disability pension was received; and provided further that a period during which a Plan Member was on a nonservice-
connected disability pension may only be counted toward the Plan Member’s Years of Service if the Plan Member makes
contributions therefor at the rate provided in Section 4.2014 of this Tier 5 in accordance with the rules to be adopted by the
Board;

(3) is or shall become entitled, under any provision of general law or ordinance of the City, to credit toward retirement for
periods of military service or military leave;

(4) did or shall receive Workers’ Compensation benefits for temporary disability as provided by general law on account of
any injury or illness arising out of and in the course of employment, but such period shall be made a part of the Plan Member’s
Years of Service only if the Plan Member has made contributions to the Fire and Police Pension Plan in the manner prescribed
by Board rule;

(5) is or shall become entitled to compensation for injury on duty pursuant to any ordinance of the City or any applicable
Memorandum of Understanding;

(6) had served as a member of the Fire and Police Pension System - Tiers 2, 3, or 4, without having become eligible to
service retirement benefits; and

(7) acquired Years of Service credit for periods of membership in LACERS while the Plan Member was a paramedic or civilian ambulance employee. If a Tier 5 Plan Member should die before having made such election, the Plan Member’s surviving spouse or domestic partner may make the election in the place of the Plan Member prior to the start of benefit payments under the Plan.

A Tier 5 Plan Member who has previously been a Plan Member of any Tier and who has ceased to be such by virtue of the Plan Member’s resignation or discharge and who again becomes a Tier 5 Plan Member, shall be entitled to service credit only if the Plan Member has first redeposited with interest, any Plan Member contributions previously withdrawn by the Plan Member, in the manner provided by the Board.

(n) Partial Year of Service. Partial Year of Service means any period mentioned in subsection (m) of this section which is less than 12 months.

Any such Partial Year of Service shall be calculated from the end of the Plan Member’s last completed Year of Service to the end of the payroll period immediately prior to the date of the Plan Member’s retirement and shall be counted as part of a Plan Member’s Years of Service for the Plan Member’s retirement upon a service pension hereafter granted or for a pension hereafter granted to the Plan Member’s Qualified Surviving Spouse/Qualified Surviving Domestic Partner, Minor Child or children, Dependent Child or children or Dependent Parent or Parents if the Plan Member hereafter shall die while upon a service pension hereafter granted or while eligible for a service pension.

(o) Final Average Salary. Final Average Salary means an amount equivalent to a monthly average of salary actually received during any 12 consecutive months of service as a Plan Member as designated by the Tier 5 Plan Member. In the absence of such designation, the last 12 consecutive months preceding the date upon which retirement would become effective shall be used as the basis for the calculation of Final Average Salary.

For the purposes of determining Final Average Salary for periods during which the Tier 5 Plan Member receives less than full salary on account of injury or illness, pursuant to any applicable ordinance of the City, the Final Average Salary shall be based upon the salary, including any Length of Service Pay, Special Pay, Assignment Pay or Hazard Pay, the Tier 5 Plan Member would have received but for the injury or illness.

Included in the calculation of Final Average Salary shall be Length of Service Pay, Special Pay, Assignment Pay and Hazard Pay

actually received during the 12 consecutive months used to determine Final Average Salary.

For those Tier 5 Plan Members who retire from the Fire Department while holding a rank no higher than Captain or from the Police Department holding a rank no higher than Lieutenant: If Hazard Pay was not received during all or any part of the 12 consecutive months used to determine Final Average Salary, then an amount equivalent to 10% of the Hazard Pay received at the time of the termination of the last assignment to hazardous duties for each year in the aggregate of the assignment to hazardous duties shall be added to the Final Average Salary, not to exceed 10 years in the aggregate. The total amount of Hazard Pay included in Final Average Salary may not exceed 100% of the amount the Plan Member would have received had the Tier 5 Plan Member been entitled to Hazard Pay during the entire 12 month period utilized in the calculation of Final Average Salary.

Overtime compensation or payments of money to the member not designated as salary by an ordinance of the City shall not be considered for purposes of calculating Final Average Salary.

Notwithstanding any of the foregoing, if a Retired Tier 5 Plan Member were to be restored to active duty as a Department Member and thereby again were to become a Tier 5 Plan Member and if such Plan Member again were to retire or to be retired without having performed the Plan Member’s duties for at least one year subsequent to such restoration, which year shall not include any time off from work by reason of any injury or illness which had been caused by or contributed to by any injury or illness which had been sustained or suffered by the Plan Member prior to such restoration, the Final Average Salary which shall be applicable to the Plan Member’s later retirement shall be the Final Average Salary which had been applicable to the Plan Member’s previous retirement.

Should a Plan Member not have completed 12 consecutive months of service as a Plan Member, then and in that event only shall the Final Average Salary be calculated as a monthly average of all consecutive calendar months completed, and, if the Plan Member has completed less than one month of total service as a Plan Member, the salary actually received shall be used to calculate its monthly equivalent.

(p) Normal Pension Base. Normal Pension Base, as used for the survivorship pension benefits for former Tier 2 members, means the sum of:

(1) the member’s monthly salary as defined in Tier 2;

(2) any length of service pay which the member had received immediately preceding the date of the member’s retirement or

death or upon the last day the member had performed duties as a Department Member;

(3) any special pay which the member had received immediately preceding the date of the member’s retirement or death or

upon the last day the member had performed duties as a Department Member; and

(4) any hazard pay which the member had received immediately preceding the date of the member’s retirement or death or upon the last day the member had performed duties as a Department Member or, if the member had not received the same at either such time but had received such pay at some time prior thereto, 10% of the hazard pay which the member had received at the time of the termination of the member’s last assignment to hazardous duties for each year in the aggregate of the member’s assignment to any hazardous duties not exceeding, however, ten years in the aggregate.

(5) for only those Plan Members who completed at least 12 months service in a Deputy Chief position, which was exempt

from civil service, and who did not retire in the position of Deputy Chief or Chief of Police, an additional supplement of a percentage of the difference in the amount of compensation between the Deputy Chief position and the Plan Member’s compensation at the time of retirement. This percentage shall be prescribed by ordinance and shall apply for each year of service in the position of Deputy Chief, not to exceed the number of years as prescribed by ordinance.

Notwithstanding any of the foregoing, if a Retired Member were to be restored to active duty as a Department Member and thereby again were to become a Plan Member and if the Plan Member again were to retire or be retired without having performed the Plan Member’s duties for at least 1 year subsequent to such restoration, which year shall not include any time off from work by reason of any injury or illness which had been caused by or contributed to by any injury or illness which had been sustained or suffered by the Plan Member prior to such restoration, the Normal Pension Base which shall be applicable to the Plan Member’s later retirement shall be the Normal Pension Base which had been applicable to the Plan Member’s previous retirement.

(q) Non-service Connected Pension Base. Non-service Connected Pension Base, as used for the survivorship benefits for former Tier 2 members, means the sum of:

(1) the highest monthly salary provided, as of the date of the Plan Member’s retirement or death, whichever shall first occur, for a Department Member then holding the basic rank of firefighter or police officer; and

(2) the highest length of service pay provided, as of the date of the Plan Member’s retirement or death, whichever shall first occur, for a Department Member then holding either of the basic ranks.

(r) Member of the Harbor Department. Member of the Harbor Department means a person appointed to one of the following classifications in the Harbor Department, which require the person so employed to complete the academy training required by the Harbor Department and to become sworn, as provided by Penal Code Section 830.1: Special Officer (Class Code 3183-H), Senior Special Officer (Class Code 3185-H), Principal Special Officer (Class Code 3198-H), Chief Special Officer (Class Code 3188-H), Port Police Officer (Class Code 3221), Port Police Sergeant (Class Code 3222), Port Police Lieutenant (Class Code 3223), Port Police Captain (Class Code 3224), and Port Warden (Class Code 0801). Provided that this person shall be a member of the department only

until the person’s status as such shall be terminated by reason of the person’s retirement, resignation or discharge or for any reason.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01. Amended by: Subsecs. (m)(5) and (m)(6) amended, Subsec. (m)(7) added, second undesignated para. of Subsec. (o) deleted, Ord. No. 176,416, Eff. 1-25-05; Subsecs. (h), (i), (j), (k), First Para. of (m), and (m)(5) amended, Subsecs. (d)(4) and (r) added, Ord. No. 177,214, Eff. 1-4-06; Subsecs. (d)(2) and (d)(4), Ord. No. 179,538. Eff. 3-2-08.

(a) Normal Retirement. Any Tier 5 Plan Member with 20 Years of Service and a minimum age of 50 years, shall be retired by order of the Board from further active duty as a Department Member either upon the filing of the Plan Member’s written application or upon the filing of a written request by or on behalf of the head of the department in which the Plan Member is a Department Member, if it shall be determined by the Board to be for the good of such department, other than for a cause or reason which would entitle such Tier 5 Plan Member to a disability pension pursuant to Section 4.2006, and the Board, if it shall so determine, shall state the cause or reason in its order retiring such Plan Member.

(b) Service Pension Benefits for Terminated Employees (Deferred Retirement). Notwithstanding any other provisions of this Tier 5, a former Tier 5 Plan Member who became such because of termination of the Former Member’s employment for any reason other than death or retirement on account of disability pursuant to the provisions of Section 4.2006, and who has completed at least 20 Years of Service, may elect to leave the former Member’s contributions in the Fire and Police Service Pension Fund. Upon reaching the age of 50 years, such former Tier 5 Plan Member shall be entitled to receive service retirement benefits identical to those available under Tier 3, in accordance with the formula set forth in Section 1504(d) of the City Charter. The election to leave member contributions in the fund shall be irrevocable and must be in writing, filed with the Board within three years from the date of such termination of employment. Upon the execution and filing of the same, the former Tier 5 Plan Member’s individual account shall be credited with an amount equal to all of the regular interest which, had the former Member otherwise been entitled to the same, would have been credited thereto between the date of such termination of employment and the date of the filing of such election and thereafter, regular interest shall, until the former Member be paid a pension, be credited thereto in the same manner as Tier 5 Plan Members’ individual accounts shall be credited. In the event that any such person should die before being paid a pension, the only benefit which shall be paid under the provisions of this Tier 5 is the payment of the former Member’s accumulated contributions, including interest credited thereto, to such persons as may be entitled thereto. Failure to file such an election within three years shall constitute an irrevocable decision not to take the service retirement benefits herein provided.

(c) This section intentionally left blank.

(d) Pension Amount. The minimum service pension payable pursuant to the provisions of this section shall be paid monthly for life in an amount which shall be equal to 50% of Final Average Salary at age 50 with 20 years of service. For each additional Year of Service after 20 years, an amount of 3% of Final Average Salary shall be provided per such year of service, with the exception of the 30th year, in which 4% shall be provided. The maximum percentage of Final Average Salary payable, regardless of length of service, shall be 90% of Final Average Salary.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

(a) Service-Connected Disability. Upon the filing of the Member’s written application for a disability pension or upon the filing of a written request therefor by or on behalf of the head of the department in which the Member is a Department Member, any Tier 5 Plan Member whom the Board shall determine has become physically or mentally incapacitated by reason of injuries received or sickness caused by the discharge of the duties of such person as a Department Member, and who is incapable as a result thereof from performing the Member’s assigned duties, or those to which the Member would be assigned within the Member’s civil service classification if returned to duty, shall be retired by order of the Board from further active duty as a Department Member.

A Tier 5 Plan Member’s incapacity is caused by the discharge of the Member’s duties if there is clear and convincing evidence that the discharge of the Plan Member’s duties is the predominant cause of the incapacity.

A Tier 5 Plan Member retired under the provisions of this subsection shall be paid thereafter a monthly service- connected disability pension in an amount which shall be equal to the same percentage of the Plan Member’s Final Average Salary as the Board shall determine, from time to time, to be the percentage of the Member’s disability. Such pension shall be in an amount of not less than 30% and not more than 90% of the Retired Tier 5 Plan Member’s Final Average Salary, but in no case shall the pension be less than the equivalent of 2% of Final Average Salary for each Year of Service of the Retired Tier 5 Plan Member.

No Retired Tier 5 Plan Member, while retired pursuant to this subsection, ever shall be paid any pension pursuant to Section 4.2004 or subsection (b) of this section.

(b) Nonservice-Connected Disability. Upon the filing of the Member’s written application for disability pension by a Tier 5 Plan Member who shall have five Years of Service or more, or upon the filing of a written request with respect to such a Plan Member by or on behalf of the head of the department in which the Member is a Department Member, any Tier 5 Plan Member whom the Board shall determine has become physically or mentally incapacitated by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the duties of such person as a Department Member, and who is incapable as a result thereof from performing the Member’s assigned duties or those to which the Member would be assigned within the Member’s civil service classification if returned to duty, shall be retired by order of the Board from further active duty as a Department Member. As a further condition of entitlement to such a pension, the Board shall also determine that such disability was not principally due to or caused by voluntary action of the Plan Member intended to entitle the Member to a nonservice-connected disability pension.

A Retired Tier 5 Plan Member, retired under the provisions of this subsection shall be paid thereafter a monthly nonservice-connected disability pension in an amount which shall be equal to the same percentage of the Retired Member’s Final Average Salary as the Board shall determine, from time to time, to be the percentage of the Retired Member’s disability; but such pension shall be in an amount of not less than 30% and not more than 50% of the Retired Tier 5 Plan Member’s Final Average Salary.

No Retired Tier 5 Plan Member, while retired pursuant to this subsection, ever shall be paid any pension pursuant either to Section 4.2004 or to subsection (a) of this section.

(c) Determination of Disability. Upon the filing of any written application or request for a disability pension, as referred to in subsections (a) and (b) of this section, the Board:

(1) shall cause the Tier 5 Plan Member to be examined by and a written report thereon rendered by at least three regular licensed

and practicing physicians selected by it;

(2) shall hold a hearing with respect to such application or request;

(3) shall receive or hear such other evidence relating to or concerning the Tier 5 Plan Member’s disability or claimed disability as

may be presented to it.

The Board shall have the power to hear and determine all matters pertaining to the granting and denying of any such application or request for a disability pension. The Board first shall determine whether or not the Tier 5 Plan Member is incapable of performing the Member’s assigned duties or those to which the Member would be assigned within the Plan Member’s civil service classification if returned to duty. If the Board were to determine that the Member is not so incapable, it then shall be the duty of the Board to deny the application or request. If the Board were to determine that the Member is so incapable, it then shall determine, pursuant to the language used in subsections (a) and (b) of this section, whether the Member’s incapacity or disability is service-connected or nonservice-connected. The Board then shall determine the percentage of the Member’s incapacity or disability, within the limitations prescribed in subsections (a) and (b) of this section, and shall grant the application or request accordingly. If the Board were to determine that the disability is nonservice-connected, and that the incapacity or disability was principally due to or caused by voluntary action by the Tier 5 Plan Member intended to entitle the Member to a nonservice- connected disability pension, it then shall be the duty of the Board to deny the application or request. The Board upon its own motion or upon the written request of any Retired Tier 5 Plan Member, retired pursuant to subsections (a) or (b) of this section, shall have the power to consider new evidence pertaining to the case of any such Retired Tier 5 Plan Member and to increase or decrease the percentage of the Member’s incapacity or disability within the limitations prescribed in subsections (a) or (b) of this section; but any such increase or decrease shall be based only upon injuries or sickness for which the Member was retired. In the case of any former Tier 5 Plan Member who became such by reason of the Member’s resignation or discharge as a Department Member, the Board, in order to grant any application filed by the Member for a disability pension, must also determine, in addition to all of the foregoing, that any existing incapacity or disability upon the Member’s part occurred prior to the termination of the Member’s active status as a Department Member and had been continuous up to the date of the Board’s determinations.

The Board shall use the disability rating schedule adopted for Tier 3 to assist in standardizing disability pension awards.

(d) Termination of Disability Pensions. The pension of any Retired Tier 5 Plan Member, retired pursuant to subsections (a) or (b) of this section and whose active status as a Department Member had been terminated by reason of the Retired Member’s retirement, shall cease when the incapacity or disability for which the Retired Member had been retired shall cease and the Retired Member either:

(1) shall have been restored to active duty as a Department Member in the same permanent rank which the Retired Member had
held as of the date of retirement; or

(2) shall have been ordered restored to active duty as a Department Member in such same permanent rank and shall have declined, refused or neglected to report therefor or to perform duties as such.

Any former Tier 5 Plan Member who has been retired for more than five years from the date of the Board’s action by which the Retired Member was retired may never be restored to active duty as a Department Member. The pension of any Retired Tier 5 Plan Member, retired pursuant to subsections (a) or (b) of this section and whose active status as a Department Member had been terminated by reason of the Retired Member’s resignation or discharge as such, shall cease when the incapacity or disability for which the Retired Member received a disability pension shall cease. The Board shall have the power to hear and determine upon its own motion all matters pertaining to the termination of any such pension.

After a Retired Tier 5 Plan Member, whose active status as a Department Member has been terminated by reason of the Retired Member’s retirement, has been retired on a service-connected disability pension or on a nonservice- connected disability pension for five years, and has been found to be no longer disabled, the Board shall adjust such Retired Tier 5 Plan Member’s pension to 30% of the Retired Member’s Final Average Salary. The adjusted pension shall reflect such cost of living adjustments as would have occurred had the Retired Tier 5 Plan

Member’s pension originally been based on such adjusted percentage.

(e) Periodic Medical Examinations. Except in those instances in which the Board has determined that, due to the nature of the disability, no purpose would be served in having periodic medical examinations to determine whether or not a Retired Tier 5 Plan Member is still disabled, all Retired Tier 5 Plan Members on a disability pension shall undergo medical examinations at periodic intervals, as determined by the Board, for the first five years of their disability retirement. Retired Tier 5 Plan Members who receive service-connected disability pensions exceeding 30% of Final Average Salary and Tier 5 Plan Members who terminated City employment by reason of resignation or discharge prior to being granted a disability retirement, shall thereafter undergo medical examinations as determined by the Board.

If a Retired Tier 5 Plan Member resides outside of the State of California, the Board shall have the authority to order medical examinations of Retired Tier 5 Plan Members at any place it may determine to be desirable and shall, if it is determined that it would impose hardship on the person to be examined to travel to such place, have the authority to defray the reasonable cost of any such travel required.

(f) Assessing Cost for Missed Medical Appointments. The Board shall have the authority to provide, by rule, for assessing the cost of medical appointments missed by disability pension applicants, or by Retired Tier 5 Plan Members on a disability pension, where such missed appointments were not caused by factors beyond the control of the Tier 5 Plan Member or Retired Tier 5 Plan Member.

(g) Re-application After Denial of Disability Pension. The Board shall establish reasonable rules governing the re-application by Plan Members for a disability pension where an application has been denied and a new application has been filed subsequently for the same or similar medical reasons as those which were the basis of a previously denied application.

(h) Transfers Under Civil Service. For a period of one year following the effective date of a Retired Tier 5 Plan Member’s disability pension, such Retired Plan Member shall be eligible for status without examination under the provisions of Section 1014 of the Charter in civil service classifications other than those that would entitle the Retired Member to membership in any Tier of the Fire and Police Pension Plan but the provisions of this subsection shall not apply to former Plan Members whose status as Department Members had terminated by reason of resignation or discharge.

(i) Exclusion for Willful Conduct. In making its determinations and findings relative to subsections (a), (b), and (c) of this section, the Board shall consider whether and to what extent the activity giving rise to the disability of a member of the Police Department was caused or aggravated by such member’s willful misconduct. If the Board finds that the disability was caused or aggravated by such willful misconduct, the Board shall deny the Plan Member’s application for a disability pension. The provisions of this subsection shall be applicable only to those Plan members who became members of the Police Department on or after July 6, 1992.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

(a) Creation of Funds. Subject to Charter Section 1220(b), two entirely separate and distinct funds hereby are created and established for record keeping, actuarial and other administrative purposes related to this Tier 5, one of which shall be known as the “Fire and Police Tier 5 Service Pension Fund” and the other of which shall be known as the “Fire and Police Tier 5 General Pension Fund.”

(b) Fire and Police Tier 5 Service Pension Fund. The Fire and Police Tier 5 Service Pension Fund shall consist of:

(1) deductions made pursuant to Section 4.2014, from the salaries of Plan Members;

(2) all contributions and donations to the Fire Department, the Police Department or the Harbor Department for services by any
Plan Members, except amounts of money donated to provide for any medal or permanent competitive award:

(3) all fines imposed upon Plan Members for violations of rules and regulations of the respective department in which they are
Department Members;

(4) proceeds from the sale of unclaimed property as determined by the Board; and

(5) all interest, earnings and profits resulting from investments of such monies.

(6) all contributions paid pursuant to Section 4.2000(i)(2)(B) and Section 4.2000(i)(2)(C).

(c) Fire and Police Tier 5 General Pension Fund. The Fire and Police Tier 5 General Pension Fund shall consist of:

(1) all money appropriated to the fund by the Council; and

(2) all interest, earnings and profits resulting from investment of such monies.

(d) Use of Funds. The monies in the Fire and Police Tier 5 Service Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of service pensions granted pursuant to Section 4.2004, for the refund of contributions as provided in this Tier 5 and such other uses as may be authorized by Charter Sections 1220(b) and (c). The monies in the Fire and Police Tier 5 General Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of all pensions other than service pensions, such other benefits as may be provided pursuant to the provisions of this Tier 5, all administrative expenses of the Fire and Police Pension Plan - Tier 5 and such other uses as may be authorized by Charter Sections 1220(b) and (c).

(e) Authorized Transfer Between Funds. In the event that the monies in the Fire and Police Tier 5 Service Pension Fund should be

insufficient, at any time, to pay all service pensions, then the Board shall have the power and authority to cause the Controller of the City to transfer to the fund sufficient monies therefor from the Fire and Police Tier 5 General Pension Fund.

(f) Benefits Shall be General Obligation of the City. The obligation to pay benefits pursuant to this Tier 5 shall be a general obligation of the City. Charter Section 1210 shall apply to this Tier 5 in a manner substantially identical to its application to Tier 3.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01. Amended by: Subsec. (b)(2) amended, Subsec. (b)(6) added, Ord. No. 177,214, Eff. 1-4-06.

(a) Actuarial Standards. The Fire and Police Pension Plan – Tier 5 shall be maintained on a reserve basis which, for the purposes of this Tier 5, shall mean one which provides for the accumulation and maintenance of the Fire and Police Tier 5 Service Pension Fund and the Fire and Police Tier 5 General Pension Fund which together will at all times be equal to the difference between the present value of the obligations assumed and the present value of the monies 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 monies with which they are to be paid in accordance with the provisions of Charter Section 1210(b)(3), applied as if the term “Tier 3" as used therein were “Tier 5", and Section 4.2014 of this Code.

(b) Actuarial Valuations. The Board shall secure an actuarial valuation showing the cost of maintaining the plan and funds on such

reserve basis and, at intervals of not to exceed five years, shall cause to be made an actuarial investigation including, but not limited to, the mortality, service and salary experience of the Plan Members and other beneficiaries and shall further cause to be made annually an actuarial valuation of the assets and liabilities of the funds.

The Board, from time to time and with the advice of the investment counsel, shall establish such an assumed rate of interest for the purpose of actuarial valuations, as in its judgment seems proper in the light of the experience and prospective earnings on the investment of the funds.

(c) Retention of Actuary. The Board shall retain a competent consulting actuary for the purpose of making the necessary actuarial studies, reports, investigations and valuations and shall, with the advice of the actuary, adopt such actuarial assumptions as shall be necessary.

(d) Accounting for Unrealized Profits and Losses. With the advice of the consulting actuary and of the investment counsel, the Board, for the purpose of the actuarial valuations, may provide by rule for the manner and the extent to which any unrealized profits or losses in the equity type investments of the funds shall be taken into account.

(e) Unfunded Liabilities. The unfunded liabilities of the Fire and Police Pension Plan – Tier 5 shall be funded in accordance with the actuarial funding method adopted by the Board upon the advice of its consulting actuary. Any unfunded liabilities resulting from amendment of the provisions of this Tier 5 or by ordinance as authorized by this Tier 5 shall be amortized over a 30 year period. Actuarial experience gains and losses shall be amortized over a 15 year period.

(f) OPS Purchase Program. The determination of 100 percent funded status and the one percent payment by the City of Tier 5 employee contributions pursuant to Charter Section 1222 and Section 4.2014 of this chapter shall be made without regard to any impact resulting from the inclusion of certain Members of Department of General Services’ Office of Public Safety, who elect to transfer from the Los Angeles City Employees’ Retirement System to Tier 6 of the Plan, as authorized by Charter Section 1703.

(g) Members of the Airport Department. The determination of 100 percent funded status and the one percent payment by the City of Tier 5 employee contributions pursuant to Charter Section 1222 and Section 4.2014 of this chapter shall be made without regard to any impact resulting from the inclusion of Members of the Department of Airports in Tier 6 of the Plan, as authorized by Charter Section 1700(f).

(h) LACERS Peace Officer Transfer Program. The determination of 100 percent funded status and the one percent payment by the City of Tier 5 employee contributions pursuant to Charter Section 1222 and Section 4.2014 of this chapter shall be made without regard to any

impact resulting from the inclusion of certain Members of the Police Department, Department of Airports, Harbor Department, and Department of Recreation and Parks, who elect to transfer from the Los Angeles City Employees’ Retirement System to Tier 6 of the Plan, as authorized by Charter Section 1709.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01. Amended by: Subsec. (f) added, Ord. No. 184,853, Eff. 4-6-17; Subsec. (f) relettered and amended and Subsecs. (f) and (h) added, Ord. No. 188,756, Eff. 11-16-25.

(a) Contribution Amount. Each Tier 5 Plan Member shall contribute to the Fire and Police Pension Plan – Tier 5 by salary deduction at the rate of 9% of the amount of the Plan Member’s salary, except that further contributions to the Plan shall not be required from a Plan Member who has served as a Plan Member more than 33 years. The City however shall pay 1% of this contribution contingent on the Fire and Police Pension Plan remaining at least 100% actuarially funded for pension benefits. For purposes of determining the amount of the deduction, Salary shall mean those elements of a Plan Member’s compensation which would be included in calculating Final Average Salary. The administrative head of the Fire Department or the Police Department shall cause to be shown on each and every payroll of such department a deduction of 8% of the amount of salary of each Plan Member whose name appears thereon. In the event that the plan is not at least 100% actuarially funded for pension benefits, the deduction shall be increased to 9%.

In the event Section 1220 of the Charter becomes inoperative, employee contributions shall increase by one-half the increase in the Normal Cost of Tier 5 over the Normal Cost of Tier 3, immediately prior to the inception of Tier 5, as defined by the Plan’s actuary.

(b) Member Accounts. The Board shall maintain an individual account of the contributions by or for each Plan Member, as hereinabove provided. Regular interest shall be credited to such individual accounts as of the last day of June and December of each year at such rate as the Board may deem proper in light of the Fire and Police Pension Plan’s earnings, exclusive of profits and losses on principal heretofore or hereafter resulting from sales of securities. No such interest shall be credited at any other time or to the individual account of any person who is not a Plan Member but such interest shall be credited to the end of the pay period preceding termination, using the last interest rate used for the preceding June or December for crediting the Plan Member’s individual accounts.

(c) Payroll Deduction. Each Tier 5 Plan Member shall be deemed to consent and agree to each deduction made as provided for herein and the payment of each payroll check to such Plan Member shall be a full and complete discharge and acquittance of all claims and demands whatever for the services rendered by each member during the period covered by such payroll, except such claims as such Plan Member has to the benefits or payments provided for in this Tier 5.

(d) Election of Refund Forfeits Right to Benefits. Tier 5 Plan Members or beneficiaries thereof who elect to receive a refund of

contributions, forfeit the right to benefits provided in this Tier 5. After payment of any pension benefit has commenced, the Tier 5 Plan Member or beneficiaries forfeit the right to a refund of the Plan Member’s contributions. Tier 5 Plan Members who return to active duty from a disability pension may not thereafter have their contributions refunded. A terminated Tier 5 Plan Member who had elected to have contributions returned, but who re-enters service and again becomes a Plan Member, shall have the privilege of regaining the prior service credit by repaying the amount of the Plan Member’s previously refunded contributions and interest and an amount calculated as interest which would have been earned between the date of original termination of status as a Tier 5 Plan Member and the date of re-entry into service as a Department Member.

(e) Assuring Full Member Contributions. The Board shall have rule-making authority to insure that the Fire and Police Pension Plan – Tier 5 receives member contributions for all periods of credited service, except that the Board shall not have authority to require contributions for service credit for military service and for periods while a Tier 5 Plan Member is receiving a disability pension, or full pay for Injury On Duty. Tier 5 Plan Members, however, may elect to make contributions for periods of Injury On Duty compensated at the rate provided by general law in order to acquire credit for Years of Service for such period. Such contributions shall be at the contribution rate herein provided and shall be based on the salary the Plan Member would have received if the Plan Member had not occupied Injury On Duty status.

(f) Time Contributions Commence. Members who transfer into Tier 5 from Tiers 2, 3, or 4 shall pay contributions in accordance with subsection (a) from the date of the Tier’s inception unless and until the member has 33 years of service.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

(a) Determination of Cost of Living Adjustments. The Board, before May 1 of each year commencing with the year 2002, shall determine the percentage of the annual increase or decrease in the cost of living as of March 1 of that year from March 1 of the preceding year as shown by the Consumer Price Index for All Urban Consumers as published by the Bureau of Labor Statistics or such other index as the Federal Government may develop to replace the All Urban Consumers Index for the area in which the City is located. If any such index were not to reflect the cost of living as of a particular March 1, then the index for the closest preceding date shall be used.

(b) Annual Cost of Living Adjustments.

(1) Commencing as of July 1 of the year in which the Board shall determine the percentage of increase or decrease in the cost of

living, the monthly amounts of all pensions granted pursuant to the provisions of this Tier 5, shall be increased or decreased by reason of such determined percentage of increase or decrease in the cost of living, not to exceed an increase or decrease of 3% in any given year. Pensions which became payable before July 1, but subsequent to the preceding July 1, will be adjusted on a prorated basis whereby one twelfth of the annual adjustment shall be applied for each completed month since such pension commenced. In no event shall pensions adjusted hereunder ever be decreased below the amount received by the Beneficiary when such pension first became payable to the Beneficiary.

(2) If the percentage of increase in the cost of living, as determined by the Board in accordance with subsection (a), were to exceed

three percent (3%), the percentage of increase in the cost of living in excess of three percent (3%) shall be accumulated and carried over and added to the retiree’s “COLA bank”. In subsequent years, should the Board determine, based upon the applicable index, that the cost of living increase is below three percent (3%), an additional percentage, if available in such COLA bank, will be withdrawn from the retiree’s COLA bank and applied to that current year’s cost of living increase, up to the maximum of three percent (3%).

(c) Discretionary Cost of Living Adjustments. To the extent that the annual cost of living adjustments provided by subsection (b) hereof are less than the annual change in the cost of living as determined in subsection (a) hereof, the Council may grant discretionary cost of living adjustments, in addition to the annual cost of living adjustments provided by subsection (b) hereof, subject to the following conditions and requirements:

(1) No More Than Every Three Years. Discretionary adjustments may not be provided more frequently than once every three years, counting from the date the last discretionary adjustment became effective.

(2) Limit of Adjustments. Discretionary adjustments shall not exceed one-half of the difference between the percentage of the annual increases in the cost of living, as determined pursuant to the provisions of subsection (a) of this section, and the annual adjustments made pursuant to subsection (b) of this section for each of the preceding three years. Discretionary adjustments shall be allocated to each of the three years for which an adjustment is made. The adjustment may not exceed the percentage available in the retiree’s COLA bank and upon application the additional percentage will be withdrawn from the retiree’s COLA bank.

(3) Pensions Eligible for Adjustment. Discretionary adjustments herein provided shall be applied to pensions granted pursuant to

Sections 4.2004, 4.2006, 4.2008 and 4.2008.5 subject to the following limitations: If a pension became payable on or after the July 1 immediately preceding the effective date of such adjustment, it shall not be so adjusted; and any pension which shall have become payable at a time within the three year period (but prior to the immediately preceding July 1) shall be prorated on a monthly basis to the number of completed months for which the pension was received, provided that pensions paid pursuant to Section 4.2008(a)(3), (4) or (5), Section 4.2008(c), (e) or (f), Section 4.2008.5(a) (3), (4) or (5), 4.2008.5(a) (7)(a), (b) or (c) or 4.2008.5(e) or (f) shall be adjusted by basing eligibility on the date upon which the Retired Plan Member’s pension became effective.

(4) Report to Council Prior to Adoption by Ordinance. Discretionary cost of living adjustments may be provided only by

ordinance. Ordinances providing discretionary adjustments may not be finally adopted until the Council has first obtained and published a report from the actuary or actuaries of the Fire and Police Pension Plan – Tier 5 indicating the present value of the liabilities that will be created by the proposed discretionary adjustment. This report must identify the annual funding cost of amortizing this liability over a 30 year period utilizing the funding procedure adopted by the Board.

(5) Vote by Council. Ordinances adopted pursuant to this subsection must be by not less than two-thirds of the membership of the

Council, subject to the veto of the Mayor and re-adoption by the Council by not less than three-fourths of the membership of Council. No such ordinance may be finally adopted by the Council until the expiration of at least 30 days after its first presentation to the Council, nor until after a public hearing has been held thereon. Ordinances adopted pursuant to this subsection, shall be published no later than November 30 and shall become effective January 1.

(6) Prospective Application. All adjustments provided in this subsection are to be applied prospectively only and shall not be

understood to permit retroactive adjustments of pensions.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

(a) Purpose of this Section. It is the purpose of this section to enable the Council to provide by ordinance a program or programs whereby persons receiving pensions pursuant to the provisions of this Tier 5 may become eligible to have subsidy payments made on their behalf for health insurance, accident insurance, life insurance or health care plan coverage or coverage for any combination of such programs as determined by the Council and subject to such conditions of entitlement as may be set forth in any ordinance adopted in accordance with the provisions of this section.

(b) Mode of Adoption of Ordinance. Ordinances adopted pursuant to this section must be approved by not less than two-thirds of the membership of the Council, subject to the veto of the Mayor and readoption by the Council by three-fourths of the membership of the

Council. No such ordinance may be finally adopted by the Council until the expiration of at least 30 days after its first presentation to the Council, nor until after a public hearing has been held thereon. Any ordinance adopted pursuant to this section shall go into effect upon its publication, but the terms of such ordinance, or portions thereof, may be operative at a later date or dates. Council shall, prior to approval of the ordinance, be advised in writing by an enrolled actuary as to the cost of the proposed benefits.

(c) The Council may establish by ordinance the maximum subsidy payments for beneficiaries under any programs established by the Council pursuant to subsection (a), including appropriate limitations for employees receiving subsidies from other City plans.

(d) Administration of Subsidy Program. Any subsidy program adopted by ordinance pursuant to this section shall be administered by the Board. In furtherance thereof, the Board shall have the authority to contract for suitable programs as defined in subsection (a), to be made available to retired members or other beneficiaries, and shall have the power to adopt such rules as it deems necessary to administer such programs. Notwithstanding the foregoing provisions, the Board may authorize the Personnel Department to administer any program or part thereof established by ordinance pursuant to the provisions of this section, but the Board shall reimburse the General Fund of the City of Los Angeles for all necessary expenses incurred by the Personnel Department in administering these programs.

(e) The Council may by ordinance authorize the Board to increase or decrease subsidy payments pursuant to factors, standards, and limitations prescribed in the ordinance.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01. Amended by: Subsecs. (c) and (e), Ord. No. 176,731, Eff. 6-21-05.

(a) Notwithstanding any other provisions of this Tier 5, the benefits payable to any person who became a Member of the Fire and Police Pension Plan prior to January 1, 1990, shall be subject to the greater of the following limitations:

(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 to the Plan made after October 14, 1987, as provided in Section 415(b)(10)(A) of the Internal Revenue Code.

(b) The benefits payable to any person who becomes a Member of the Fire and Police Pension Plan on or after January 1, 1990, shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code.

(c) The Council shall, by ordinance, provide such benefits as are necessary to preserve the level of benefits in effect prior to the effective date of this section.

(d) Should it be determined that the provisions of any section of this Tier 5 violate the limitations of Section 415 or the incidental death benefit provisions of the Internal Revenue Code, such section shall be deemed inapplicable to the extent necessary to achieve compliance. The Council shall by ordinance, adopt such measures as are necessary to achieve compliance and to preserve the level of benefits in effect prior to the effective date of this section.

(e) Ordinances adopted pursuant to this section shall be adopted in the same manner as those authorized by Section 4.2018, except however any Ordinances adopted shall be effective upon publication.

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

(g) All benefits provided pursuant to any ordinance adopted under the provisions of subsection (e) shall be administered by the Board. A separate and distinct fund or funds shall be created by the Board as required to administer such benefits. Such fund or funds shall not contain employee contributions. The Board shall also determine the manner of funding any liabilities incurred as a result of ordinances adopted pursuant to this section.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01. Renumbered as Section 4.2301 by Ord. No. 182,628, Eff. 7-16-13.

(a) For any individual who first became a member of the Fire and Police Pension Plan on or after July 1, 1996, the Final Average Salary taken into account to determine the benefits provided by Tier 5 of this Article shall not exceed the annual limit set forth in Section 401(a)(17) of the Internal Revenue Code and regulations thereunder for any Plan Year. This annual compensation limitation shall be adjusted automatically for each Plan Year to the amount prescribed by the Secretary of the Treasury or said Secretary’s delegate.

(b) If any of the limitations of Section 401(a)(17) should be repealed, the provisions of this section shall be deemed repealed to the same extent.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

The Council may, by ordinance, amend the Fire and Police Pension Plan – Tier 5 to incorporate provisions of federal laws and regulations required to maintain the tax-qualified status of the Fire and Police Pension Plan – Tier 5. The Council also may enact ordinances to modify or repeal such provisions. Ordinances adopted pursuant to this section shall be adopted in accordance with Section 4.2018. It is the intent of this section to facilitate compliance with the provisions of federal laws affecting the Fire and Police Pension Plan – Tier 5.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.

Notwithstanding any other provision of this Tier 5, the provisions of this section shall be controlling to the extent there is a conflict with another provision.

(a) Service or Disability Pensions for Former Tier 5 Plan Members. Any former Tier 5 Plan Member who shall believe that the former Member is eligible to be paid a pension pursuant to Section 4.2004 or 4.2006 of this Tier 5, may file the former Member’s written application for the payment of a pension pursuant to either one of the sections within the time prescribed for the filing thereof

by any applicable provision of law, and the Board, if it were to determine that the contingencies provided in this Tier 5 for the payment thereof had happened or occurred as to such former Tier 5 Plan Member and if there is no legal bar or defense to the granting to the former Member of such pension or to any judicial action or proceeding which could be brought by the former Member with respect thereto, shall grant the former Member the pension in accordance with the former Member’s written application.

(b) Adoption of Board Rules to Comply with Federal or State Law. If at any time after January 1, 2002, federal or state law should become preemptive or controlling with respect to the provisions of this Tier 5, the Board shall have the power to adopt such rules as may be necessary to comply with such federal or state law. Such rules shall be adopted upon the advice and with the concurrence of the City Attorney.

(c) Payroll Deductions and Years of Service Credit for Overtime. Whenever a Plan Member, for overtime work, shall take a period of time off with pay:

(1) a deduction for pension purposes shall be made from such pay but only in the same amount as that which would have
been deducted from the Plan Member’s salary if such period had been one of regular work; and

(2) such period shall be part of the Plan Member’s Years of Service.

Whenever a Plan Member, for overtime work, shall receive a cash payment:

(1) a deduction for pension purposes shall not be made from such payment; and

(2) the period of overtime work for which the Plan Member shall receive such payment shall not be part of the Plan
Member’s Years of Service.

(d) Section left blank intentionally.

(e) Recall to Active Duty.

(1) Rules for Recall to Active Duty. The Appointing Authority of the department shall promulgate rules and set standards as the Appointing Authority may deem to be necessary or desirable with respect to recalling a retired member to active duty.

(2) Conditions for Recall to Active Duty. A retired member, whenever retired, shall be eligible to be recalled to active

duty in the department from which the retired member retired only upon the following conditions:

(A) Service Retirement and Former Rank. That the retired member’s original retirement has been pursuant to Section 4.2004 and had been from the Fire Department while holding a rank lower than Fire Chief or from the Police Department while holding a rank lower than Chief of Police or from the Harbor Department while holding a rank lower than Port Warden.

(B) Certification. That the member had certified, in writing, that the member had read and understands the provision of this subsection; and

(C) Consent to Recall. That the member voluntarily consented to be recalled to active duty.

(3) Limitations on Recall. The Appointing Authority may recall a retired member to active duty:

(A) Rank at Retirement. Only in or to a vacant position in the rank held by the member at the effective date of the

member’s original retirement.

(B) 90 Day Limit. For not to exceed 90 days in any one calendar year; and

(C) Status Defined in the Section. The salary, benefits and other terms and conditions of employment of any recalled member shall be provided under Subdivisions (e)(5) and (e)(6) of this subsection.

(4) No Recall of Police Exceeding 12 Months Without Loss of Pension. Recall of retired members of the Police

Department may be approved for a period in excess of 90 days but not for more than 12 consecutive months, without loss of pension, in which case the salary, benefits and other terms and conditions of employment for the recalled police officers shall be established by ordinance.

(5) Status of Recalled Members. A retired member if the member were to be recalled to active duty, thereafter shall be

known as a “recalled member” and as such:

(A) The recalled member’s recall to active duty shall be a privilege only and the Appointing Authority may terminate the recalled member’s service at any time;

(B) The recalled member’s pension shall be paid during the period of the recalled member’s recall to active duty;

(C) The recalled member shall be paid the salary provided for the recalled member’s rank and the longevity pay or

merit pay provided for the recalled member’s aggregate years of service prior to the effective date of the recalled member’s original retirement;

(D) The recalled member shall have no deductions made for pension purposes, pursuant to Section 4.2014 relating to

Member Contributions-Tier 5, from the recalled member’s salary and longevity pay or merit pay; and

(E) The recalled member, the surviving spouse or domestic partner, minor child or children or dependent parent or parents never shall be entitled to any pension benefits provided by this Tier by reason of the recalled member’s service as a recalled member.

(6) Tier 5 Construed with Recalled Member Rules. The provisions of this Tier 5 shall be construed and applied, as to a recalled member, the recalled member’s surviving spouse or domestic partner, minor child or children and dependent parent or parents, in accordance with respective applicable provisions of subdivision (e)(5) of this subsection.

(f) Return to Active Duty.

(1) Conditions for Return to Active Duty. A retired member of Tier 5 may file, with the Appointing Authority of the

department from which the retired member retired, a written application to be returned to active duty only upon the conditions:

(A) Service Retirement and Former Rank. That the retired member’s original retirement had been pursuant to

Section 4.2004 on a service pension and had been from the employing department while holding a rank no higher than Engineer or Sergeant; and

(B) Time Since Original Retirement and Age. That, as of the filing date of the application, the period of the retired member’s original retirement had been no longer than three years and the retired member was under the age of

55 years, except that a retired member whose three year period expires between January 1, 2004, and the effective date of the ordinance implementing these return to work provisions shall be eligible to file an application to return to duty no later than March 31, 2006; and

(C) DROP Participation. That the retired member did not participate in the Deferred Retirement Option Plan

(DROP). DROP participants are ineligible for reactivation.

(2) Subsequent Conditions for Return to Active Duty. The Appointing Authority may approve any application only upon the conditions that, after the filing date, the retired member:

(A) Medical Exam. Had passed a medical examination from which it had been determined that the retired member would be capable of performing the duties that would be assigned to the retired member if the retired member were to be returned to active duty subject to approval by the Board; and

(B) Certification. Had certified, in writing, that the retired member read and understood the provisions of this

section.

(3) Return to Rank at Original Retirement. The Appointing Authority, if the Appointing Authority were to approve the application, may return the retired member to active duty only in or to a vacant position in the rank held by the retired member at the effective date of the retired member’s original retirement.

(4) Status of a Reactivated Member of Tier 5. A retired member returned to active duty shall thereafter be known as a

“reactivated member” of Tier 5 and, as such:

(A) Privilege, Not an Appointment. The reactivated member’s return to active duty shall be a privilege only and the reactivated member shall be on probation for one year from and after the effective date of the return regardless of any other provision of law contained in the Charter or otherwise, and the Appointing Authority may terminate the reactivated member’s service at any time during that year;

(B) Original Pension Terminated. The reactivated member’s pension, granted by reason of the reactivated

member’s original retirement, shall be terminated by the Board as of the effective date of the reactivated member’s return to active duty;

(C) Method of Calculating Years of Service. The reactivated member’s service after the effective date of the

reactivated member’s return to active duty, for the purposes of Tier 5 and regardless of any other provision of law contained in the Charter or otherwise, shall consist of only:

(i) days for which the reactivated member shall be paid for performing the reactivated member’s assigned

duties;

(ii) the reactivated member’s days of vacation with pay; and

(iii) the reactivated member’s regular days off duty with pay;

and one year of this service shall consist of a total of 365 days;

(D) Years of Service for Purposes of Civil Service and Related Purposes. The reactivated member’s aggregate years of service, for the purposes of the reactivated member’s eligibility to advancement in accordance with civil service rules and regulations and the payment of the reactivated member’s salary and longevity pay or other additional pay, shall consist of only the reactivated member’s years of sworn service prior to the effective date of the reactivated member’s original retirement and the reactivated member’s service after the effective date of the reactivated member’s return to active duty;

(E) Years of Service for Purposes of Tier 5. The reactivated member’s aggregate years of service, for the purposes of Tier 5 and regardless of any other provision of law contained in the Charter or otherwise, shall consist of only the years of service for which the reactivated member received credit in the reactivated member’s original retirement and the reactivated member’s service subsequent to the effective date of the reactivated member’s return to active duty, provided, however, that this subsequent service shall be for not less than one year as defined in Subsection (f)(4)(C) of this section;

(F) Salary, Longevity, and Other Additional Pay. The reactivated member shall be assumed to have a satisfactory standard of service and shall be paid the salary provided for the reactivated member’s rank and the longevity pay or other additional pay provided for the reactivated member’s aggregate years of service, subject, however, to all applicable provisions of any collective bargaining agreement (Memorandum of Understanding) and of the Los Angeles Administrative Code;

(G) Payroll Deduction. The reactivated member shall contribute to the Fire and Police Pension Plan-Tier 5 as provided in Section 4.2014;

(H) Prohibition of Nonservice-Connected Disability Pensions. The reactivated member shall never be entitled to a subsequent retirement pursuant to Section 4.2006(b) relating to Nonservice-Connected Disability Pensions and the reactivated member’s surviving spouse or domestic partner, the reactivated member’s minor child or children or dependent child or children (for ease of reference all children, both minor and dependent, singular and plural, are hereafter referred to in this section as “child”) or dependent parent or parents (referred to in this section as “dependent parent”) never shall be granted a pension as provided in, or based upon, Section 4.2008(a)(5) or 4.2008.5(a)(5);

(I) Allowance of Service- Connected Disability Pensions. The reactivated member shall be entitled to retire on a service-connected disability pension pursuant to Section 4.2006(a) if the reactivated member were to become eligible therefore; upon the reactivated member’s death subsequent to retirement on a service- connected disability pension, a pension shall be granted to the reactivated member’s Qualified Surviving Spouse or Qualified Domestic Partner or child or dependent parent as provided in, or based upon, Section 4.2008 (a)(4) or 4.2008.5 (a)(4), as applicable;

(J) Allowance of Service- Connected Survivor Pension. The reactivated member’s Qualified Surviving Spouse or Qualified Domestic Partner or child or dependent parent, if the reactivated member were to die while a reactivated member by reason of injuries received or sickness caused by the discharge of the reactivated member’s duties while a Department Member, shall be granted a Service-Connected Survivor Pension as provided in, or based upon, Section 4.2008 (a)(1) or 4.2008.5 (a)(1), as applicable, or, if eligible therefore, may elect the Section 4.2008(a)(7) Basic Death Benefit provided that the return of contributions shall be limited to those contributions paid after reactivation;

(K) Allowance of Survivor Pension Upon Death of Reactivated Member. The reactivated member’s Qualified Surviving Spouse (provided the spouse was married to the reactivated member for at least one year prior to the effective date of the original retirement or for at least one year after the return to active duty date and prior to the date of death) or Qualified Domestic Partner (provided the partner had a Declaration of Domestic Partnership on file with the Board for at least one year prior to the effective date of the original retirement or for at least one year after the return to active duty effective date and prior to the date of death) or child or dependent parent, if the reactivated member were to die while a reactivated member by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the reactivated member’s duties, shall be granted a survivorship pension as provided in, or based upon, Section 4.2008(a)(2) or 4.2008.5(a)(2), as applicable, or, if eligible therefore, may elect the Section 4.2008(a)(7) Basic Death Benefit provided that the return of contributions shall be limited to those contributions paid after reactivation;

(L) Reinstatement of Original Pension. The reactivated member’s pension, granted by reason of the reactivated member’s retirement, if the reactivated member’s service were to be terminated during the one year from and after the effective date of the reactivated member’s return to active duty for any reason other than by reason of the reactivated member’s subsequent retirement pursuant to Section 4.2006(a) on a service-connected disability pension, shall be reinstated by the Board, as of the effective date of the termination of the reactivated member’ service, at the amount of pension that then would have been payable to the reactivated member if the reactivated member had not returned to active duty and, upon the reactivated member’s death, the pension that shall be granted pursuant to Section 4.2008 (a) (3) or 4.2008.5 (a)(3), as applicable, to the reactivated member’s Qualified Surviving Spouse (provided the spouse was married to the reactivated member for at least one year prior to the effective date of the original retirement) or Qualified Domestic Partner (provided the partner had a Declaration of Domestic Partnership on file with the Board for at least one

year prior to the effective date of the original retirement) or child or dependent parent shall be calculated upon the Final Average Salary upon which the reactivated member’s pension had been calculated as of the effective date of the reactivated member’s original retirement;

(M) Retirement as Reactivated Member. One year after the effective date of the reactivated member’s return to active duty, the reactivated member shall be entitled to retire on a service pension pursuant to Section 4.2004 based upon the reactivated member’s aggregate years of service as defined in Subsection (f)(4)(E) and the reactivated member’s pension shall be calculated upon a sum equal to the Final Average Salary upon which the reactivated member’s pension had been calculated as of the effective date of the reactivated member’s original retirement (hereinafter referred to as “such base”), plus a percentage of the difference between such base and that which, if the reactivated member had not had the reactivated member’s original retirement, would have been the reactivated member’s Final Average Salary as of the effective date of the reactivated member’s subsequent retirement, for the reactivated member’s years of service subsequent to the effective date of the reactivated member’s return to active duty as defined in Subsection (f)(4)(C), so that this sum shall be such base plus:

(i) 20% of the difference for one year;

(ii) 40% of the difference for two years;

(iii) 60% of the difference for three years;

(iv) 80% of the difference for four years; and

(v) 100% of the difference for five or more years or the equivalent of the reactivated member’s Final

Average Salary as of the effective date of the reactivated member’s subsequent retirement;

and upon the reactivated member’s death, if the reactivated member previously had had a subsequent retirement, the pension that shall be granted as provided in, or based upon, Section 4.2008(a)(3) or 4.2008.5(a)(3), as applicable, to the reactivated member’s Qualified Surviving Spouse or Qualified Domestic Partner or child or dependent parent, shall be calculated upon the sum upon which the reactivated member’s pension had been calculated as of the effective date of the reactivated member’s subsequent retirement;

(N) Eligibility for DROP. A reactivated member shall not be eligible to participate in any available Deferred

Retirement Option Plan (DROP) until three years following the reactivated member’s return to duty;

(O) Refund of Contributions Upon Termination. A reactivated member shall not be entitled to a refund of any contributions made prior to reactivation; and

(P) Optional Pension Election. If a reactivated member is reinstated to active duty after electing to receive the optional pension provided in Section 4.2008 (b), the election to receive the optional pension shall be deemed cancelled as of the effective date of the reinstatement provided, however, that if the reactivated member’s original pension is reinstated pursuant to Subsection (f)(4)(L), then the election to receive the optional pension shall likewise be reinstated. Unless a reactivated member’s subsequent retirement is governed by Subsection (f)(4)(L), the reactivated member may make any election authorized pursuant to Section 4.2008 (b).

(5) Applicability of Tier 5 to Reactivated Members. The provisions of Tier 5 shall be construed and applied, as to a

reactivated member and to the reactivated member’s surviving spouse, domestic partner, child, and dependent parent, in accordance with the respectively applicable provisions of Subsection (f)(4) of this section.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01. Amended by: Subsec. (f) added, Ord. No. 177,116, Eff. 11-16-05; Subsec. (e), Ord. No. 177,214, Eff. 1-4-06.

(a) Implementation Procedure for Social Security Participation. Should Social Security participation be mandated or made available to Plan Members by Federal legislation amending the Social Security Act or by action taken by the City or by Plan Members as provided by law, the following provisions shall govern the manner in which such participation by Plan Members is to be implemented and the limitations hereinafter set forth shall be controlling unless Federal law is contrary to these provisions, is in conflict therewith and is clearly intended to be preemptive. Should applicable provisions of Federal law in any respect differ from the provisions contained in this section and should they be determined to be preemptive as to any part thereof, then and in that event, those provisions of this section not affected by such Federal law shall remain in full force and effect.

(b) Council Authority to Coordinate Benefits and Contributions. As to the rights and entitlement to benefits of Plan Members

participating in such Social Security coverage, the Council shall have the power and authority, subject to the veto of the Mayor, to adopt ordinances modifying the benefits and conditions of entitlement provided in this Tier 5, including adjustments of Plan Member contributions to the Fire and Police Pension Plan – Tier 5 as hereinafter more specifically provided and subject to the limitations stated herein.

(c) Supermajority Vote Required. Ordinances adopted pursuant to this section must be approved by not less than two-thirds of the membership of the Council, subject to the veto of the Mayor and re-adoption by the Council by a vote of not less than three-fourths of the membership of Council. No such ordinance may be finally adopted by the Council until the expiration of at least 30 days after its first presentation to the Council, nor until after a public hearing has been held thereon. Any ordinance adopted pursuant to this section shall go into effect upon publication.

(d) Integration of Social Security and Pension Plan. Any participation in Social Security coverage shall be by integration with the

benefits provided by this Tier 5 and shall not be in addition to the benefits provided in the Fire and Police Pension Plan – Tier 5. Integration is to be defined in harmony with the provisions of the Social Security Act and must be in substantial compliance with the rules and regulations governing said Act. Benefits provided by an integrated system must be at least equal to the benefits offered by the Fire and Police Pension Plan – Tier 5 prior to such integration. The level of integration may be periodically adjusted by the Mayor and Council to ensure an adequate level of integration.

(e) Minimum Plan Member Contributions. Plan Members participating in Social Security shall have their contributions to the Fire and Police Pension Plan – Tier 5 reduced but Plan Members must contribute at least 2% of salaries to the integrated Fire and Police Pension Plan – Tier 5.

SECTION HISTORY

Added by Ord. No. 174,367, Eff. 12-19-01.