Los Angeles Municipal Code Ch. 22 Miscellaneous Fire and Police Pension Plan Provisions

Section 4.2200 Return to Active Duty Provisions for Tiers 3 and 4. 4.2202 Provisions Governing the Recall to Active Duty of Police for Periods Exceeding 90 Days. 4.2204 Establishment and Termination of Domestic Partnerships. 4.2206 Survivorship Benefits for Qualified Surviving Domestic Partners. 4.2208 Reactivation of Surviving Spouse Benefits. 4.2210 Length of Service Pay, Special Pay, Hazard Pay, and Assignment Pay - Adoption of Collective Bargaining

Agreements. 4.2212 Public Service Purchase (PSP) Program. 4.2214 OPS Service Purchase Program. 4.2215 Airport Peace Officer Service Purchase Program. 4.2216 LACERS Peace Officer Transfer Program. 4.2217 Qualifying Tier 6 Member Refund Program.

(a) Return to Active Duty Provisions for Tier 3.

(1) Conditions for Return to Active Duty. A retired member of Tier 3 may file, with the Chief 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 Charter Section 1504 on a service pension and had been from the Fire Department while holding a rank no higher than Engineer or from the Police Department while holding a rank no higher than 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 is 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 Chief may approve any application only upon the conditions that, after the filing date of the application, 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 Chief, if the Chief 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 3. A retired member returned to active duty shall thereafter be known as a

“reactivated member” of Tier 3 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 Chief 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 3 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 3. The reactivated member’s aggregate years of service, for the purposes of Tier 3 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 the subsequent service shall be for not less than one year as defined in Subsection (a)(4)(C) of this section;

(F) Salary, Longevity, & 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 (LAAC);

(G) Payroll Deduction. The reactivated member shall contribute to the Fire and Police Pension Plan – Tier 3 as provided in Charter Section 1514;

(H) Prohibition of Nonservice-Connected Disability Pensions. The reactivated member shall never be entitled to a

subsequent retirement pursuant to Charter Section 1506(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, Charter Section 1508(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 Charter Section 1506(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, Charter Section 1508(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 duties while a Department Member, shall be granted a Service-Connected Survivor Pension as provided in, or based upon, Charter Section 1508(a)(1), as applicable, or may elect the Charter Section 1508(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, Charter Section 1508(a)(2), as applicable, or may elect the Charter Section 1508(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 original 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 Charter Section 1506(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’s 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. Upon the reactivated member’s death, the pension that shall be granted pursuant to Charter Section 1508(a)(3) 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 Charter Section 1504 based upon the reactivated member’s aggregate years of service as defined in LAAC Section 4.2200(a)(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 LAAC Section 4.2200(a)(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 which shall be granted as provided in, or based upon, Charter Section 1508(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 Charter Section 1508 (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 LAAC Section 4.2200 (a)(4)(L), then the election to receive the optional pension shall likewise be reinstated. Unless a reactivated member’s subsequent retirement is governed by LAAC Section 4.2200(a)(4)(L), the reactivated member may make any election authorized pursuant to Charter Section 1508(b).

(5) Applicability of Tier 3 to Reactivated Members. The provisions of Tier 3 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 (a)(4) of this section.

(b) Return to Active Duty Provisions for Tier 4.

(1) Conditions for Return to Active Duty. A retired member of Tier 4 may file, with the Chief 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 1604 on a service pension and had been from the Fire Department while holding a rank no higher than Engineer or from the Police Department while holding a rank no higher than 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 Chief may approve any application only upon the conditions that, after the filing date of the application, 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 Chief, if the Chief 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 4. A retired member returned to active duty shall thereafter be known as a
“reactivated member” of Tier 4 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 Chief 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 4 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 4. The reactivated member’s aggregate years of service, for the purposes of Tier 4 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 the subsequent service shall be for not less than one year as defined in Subsection (b)(4)(C) of this section;

(F) Salary, Longevity, & 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 (LAAC);

(G) Payroll Deduction. The reactivated member shall contribute to the Fire and Police Pension Plan – Tier 4 as provided in Charter Section 1614;

(H) Prohibition of Nonservice-Connected Disability Pensions. The reactivated member shall never be entitled to a

subsequent retirement pursuant to Charter Section 1606 (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, Charter Section 1608(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 Charter Section 1606 (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, Charter Section 1608(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’s 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, Charter Section 1608(a)(1), as applicable, or may elect the Charter Section 1608(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, Charter Section 1608(a)(2), as applicable, or may elect the Charter Section 1608(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 original 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 Charter Section 1606(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’s 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 Charter Section 1608(a)(3) 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 Charter Section 1604 based upon the reactivated member’s aggregate years of service as defined in LAAC Section 4.2200(b)(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 LAAC 4.2200(b)(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, Charter Section 1608(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; and

(P) Optional Pension Election. If a reactivated member is reinstated to active duty after electing to receive the optional pension provided in Charter Section 1608 (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 LAAC Section 4.2200(b)(4)(L), then the election to receive the optional pension shall likewise be reinstated. Unless a reactivated member’s subsequent retirement is governed by LAAC Section 4.2200(b)(4)(L), the reactivated member may make any election authorized pursuant to Charter Section 1608 (b).

(5) Applicability of Tier 4 to Reactivated Members. The provisions of Tier 4 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 (b)(4) of this section.

SECTION HISTORY

Added by Ord. No. 177,116, Eff. 11-16-05.

This section establishes the salary, benefits and other terms and conditions of employment for a retired member of the Police Department recalled for a period in excess of 90 days, but not to exceed more than 12 consecutive months, pursuant to either Subsection (e) of Section 4.2026 of this Code or Subsection (b) of Charter Section 1410.

(a) Status of Recalled Member. A retired member recalled to active duty shall be known as a “recalled member” and:

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

(2) Shall be paid the recalled member’s pension during the period of recall to active duty and thus shall not be eligible for the
benefits provided in Section 4.177 of this Code;

(3) Shall be paid the salary in effect on the date of recall for the recalled member’s rank and pay grade at retirement, longevity pay

provided for the recalled member’s aggregate years of service prior to the effective date of retirement, and P.O.S.T. compensation;

(4) Shall not receive any other incentives or bonuses, step increases, general salary increases, or promotions during the period of
recall.

(5) Shall be compensated in cash for daily overtime at the rate of time and one-half for hours worked in excess of the recalled
member’s scheduled work shift if employed in a classification eligible for overtime pursuant to MOU 24 or 25;

(6) May be assigned to any position within the Department that is allocated to the rank and pay grade held by the recalled member;

(7) Shall not be entitled to any benefits provided to employees under Division 4 of this Code or the Memorandum of Understanding
between the City and the Los Angeles Police Protective League or the Los Angeles Police Command Officers Association except as
provided here;

(8) Shall have no payroll deduction made for pension contributions pursuant to Section 4.2014 of this Code or Charter Section
1420; and

(9) The recalled member and the recalled member’s surviving spouse or domestic partner, minor child or children, dependent child
or children, and dependent parent or parents shall never be entitled to any pension benefits provided by either Tier 2 or Tier 5 by
reason of the recalled member’s service as a recalled member.

(b) Tiers 2 and 5 Construed with Recalled Member Rules. The provisions of Tier 2 or Tier 5 , as applicable, shall be construed and applied, as to a recalled member retired from Tier 2 or Tier 5 , the recalled member’s surviving spouse or domestic partner, minor child or children, dependent child or children, and dependent parent or parents, in accordance with the respective applicable provisions of Subsection (a) of this section.

SECTION HISTORY

Added by Ord. No. 179,186, Eff. 9-25-07.

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

(1) Both persons have a common residence as defined in Family Code Section 297.

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

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

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

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

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

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

(b) A domestic partnership is terminated when any one of the following occurs:

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

(2) One of the domestic partners dies.

(3) One of the domestic partners marries.

(4) The domestic partners no longer have a common residence.

(c) Upon termination of a domestic partnership, at least one of the former partners shall file a Notice of Termination of Domestic Partnership with the Board of Fire and Police Pension Commissioners, provided that failure to file such notice shall not prevent the termination of the domestic partnership.

(d) No person who has filed a Declaration of Domestic Partnership with the Board of Fire and Police Pension Commissioners may file a new Declaration of Domestic Partnership until at least six months after the date that a Notice of Termination of Domestic Partnership was filed with the Board as provided herein. This prohibition does not apply if the previous domestic partnership ended because one of the partners died or married.

SECTION HISTORY

Added by Ord. No. 173,028, Eff. 1-17-00. Amended by: Sec. Number, Ord. No. 173,136, Eff. 3-24-00; Subsec. (a)(1), Ord. No. 176,731, Eff. 6-21-05. Renumbered from former Sec. 4.1159 by Ord. No. 179,538, Eff. 3-2-08.

(a) For the purpose of the benefits which are provided in Sections 1414, 1508, and 1608 of the Charter and in Sections 4.1161, 4.2008, and 4.2008.5 of the Administrative Code, the definition of qualified surviving spouse is hereby expanded to include a person who is a qualified surviving domestic partner, as defined below.

(b) In order for a domestic partner to become a qualified surviving domestic partner of a deceased System Member, Retired System Member, Plan Member or Retired Plan Member, the following requirements must have been met before said member’s death:

(1) A Declaration of Domestic Partnership, signed by both partners, must be on file with the Board of Fire and Police Pension
Commissioners

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

(ii) on the date of the System Member or Plan Member’s service-connected death while a member, or

(iii) for at least one year prior to the effective date of the Retired System Member or Retired Plan Member’s retirement
upon a service pension or upon a nonservice-connected disability pension, or

(iv) on the effective date of the Retired System Member or Retired Plan Member’s retirement upon a service-connected
disability pension;

(2) The survivor must be either the domestic partner or spouse of the member on the date of the member’s death.

(c) For members who have filed an Affidavit of Domestic Partnership with the Personnel Department prior to the effective date of this section and who also file a Declaration of Domestic Partnership with the Board of Pension Commissioners on or before March 31, 2000, the filing date of said declaration for purposes of this section shall be the date the affidavit was accepted by the Personnel Department.

(d) This section shall become effective upon enactment and shall not be applied retroactively to grant benefits to the domestic partner of any member who died or retired prior to the enactment of this section.

(e) Effective January 1, 2005, to the extent required by state law, domestic partners registered with the state of California or two persons of the same sex whose legal union, other than a marriage, has been validly formed in another jurisdiction and is substantially equivalent to a state registered domestic partnership shall be treated the same as spouses for purposes of all provisions of the Fire and Police Pension Plan set forth in the Charter and Los Angeles Administrative Code. For these purposes, any reference to the date of a marriage shall be deemed to refer to the date of registration of a domestic partnership with the state or the date of a legal union in another jurisdiction, as applicable.

SECTION HISTORY

Added by Ord. No. 173,028, Eff. 1-17-00. Amended by: Sec. Number, Ord. No. 173,136, Eff. 3-24-00; Subsec. (a), Ord. No. 176,731, Eff. 6-21-05; Subsec. (e) added, Ord. No. 177,900, Eff. 9-28-06. Renumbered from former Sec. 4.1160 by Ord. No. 179,538, Eff. 3-2-08.

(a) The survivorship pension of a former qualified surviving spouse whose benefits ceased solely because of the spouse’s subsequent remarriage prior to December 5, 1996, shall be restored prospectively from July 10, 2001, the effective date of Charter Section 1224.

(b) No benefits shall be paid to anyone other than the widow or widower who had been receiving qualified surviving spouse benefits prior to the date of the remarriage and loss of benefits. The Department of Fire and Police Pensions shall be responsible for determining the current monthly benefit, consisting of the previous pension amount at the time of the remarriage, plus all applicable cost of living adjustments.

SECTION HISTORY

Added by Ord. No. 174,612, Eff. 6-6-02. Renumbered from former Sec. 4.1165 by Ord. No. 179,538, Eff. 3-2-08.

Length of service pay, special pay, hazard pay, and assignment pay, as defined in Charter Sections 1302(d), 1406(h) - 1406(k), 1502(h) - 1502(k), and 1602(h) - 1602(k) shall be as specified by ordinance and, notwithstanding the provisions of Charter Section 219, the relevant provisions of collective bargaining agreements which address those types of pay shall require adoption by ordinance.

SECTION HISTORY

Added by Ord. No. 173,275, Eff. 6-25-00, Oper. 7-1-00. Renumbered from former Sec. 4.1162 by Ord. No. 179,538, Eff. 3-2-08.

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

“Advance Purchase” means a purchase of service made in advance by a member, based upon the member’s estimated pension base and the specified date that benefits will first become payable, for which a true up calculation is required. Purchases made within 180 days of the date a member actually retires on a service pension or enters DROP are not advance purchases requiring a true up, provided that the member actually retires or enters DROP on the specified date and that there is no change in either the member’s known eligible survivors or the member’s pension base during those 180 days.

“Board” means the Board of Fire and Police Pension Commissioners.

“Designated PSP Beneficiary” means a person whom the member, in a writing filed with the Plan, designates to be paid part or all of the member’s PSP payments, including interest, that are refundable in the event of the member’s death. If the member designates more than one person as a beneficiary, the refund shall be divided evenly between all beneficiaries unless the member provides otherwise.

“DROP” refers to the Deferred Retirement Option Plan (DROP) established in Chapter 21 of Division 4 of the Los Angeles Administrative Code.

“Full Actuarial Cost” means the cost to be paid for purchased service in order to achieve cost neutrality to the Plan as determined by the Board’s actuary.

“Full-time Service” means a minimum of six months of uninterrupted service with an eligible public entity, excluding part-time service.

“Member” means a Department Member entitled to benefits from the Plan under Tier 2 , 3 , 4 , 5 or 6 .

“Pension Base” means the Normal Pension Base for Tier 2 members and Final Average Salary for members of Tiers 3 , 4 , 5 and 6 .

“Pension Base Adjustment” means the requirement that, when the member’s pension base changes after a purchase is finalized, the years of service purchased shall be adjusted so that the amount of the monthly benefit purchased remains unchanged. This adjustment shall be made regardless of whether the member’s pension base changes prior to or after the member’s retirement or DROP entry date and shall be retroactive to the date that benefits first became payable.

“Prior Plan” means a retirement plan of a public entity in which the member was a participant during full-time service.

“Public Entity” means the United States Government including its territories, any agency of the United States Government, the United States Postal Service, and any branch of the United States military service; any State or their political subdivisions; any local government or special district within any State of the United States; and shall exclude non-governmental agencies supported by government contracts or grants.

“Public Service Purchase (PSP) Program” means the voluntary program that allows members to purchase service with the Fire and Police Pension Plan (Plan) on the terms and conditions established in this section.

“Purchased Service” means service purchased under the PSP program. Purchased service shall be treated as “years of service”, as that term is defined in the various tiers of the Plan, for the purpose of computing the amount of a member’s service pension and any survivorship pensions based on that pension.

“Specified Date that Benefits Will First Become Payable” means the date that the member expects either to retire on a service pension or to enter DROP and shall be specified by the member at the time service is purchased.

“True Up” means the requirement that the full actuarial cost for the purchased service shall be recalculated as of the date that benefits first become payable when (1) a member has made an advance purchase, (2) the retirement or DROP entry date differs from the date specified when the purchase was made, (3) there is a change in the member’s known eligible survivors or (4) the member’s actual pension base differs from the estimated pension base. The purpose of a true up is to assure that the member pays the full

actuarial cost so that the PSP program will be cost neutral to the Plan. The actuarial assumptions used in the true up shall be those in effect at the time the purchase was initially made.

(b) Participation in the Program. Service purchases under the PSP program must be initiated and finalized prior to the date a member enters DROP or retires, whichever occurs first. Members cannot purchase service after entering DROP, retiring, or being recalled or reactivated. The Board may limit or prohibit member participation in the PSP program to the extent required to comply with any federal law.

(c) Cost Neutrality. The member shall be required to pay the full actuarial cost of the purchased service as determined by the Plan’s

actuary based upon the additional benefits available from the Plan as a result of the purchased service without taking into consideration incidental administrative expenses incurred by the Plan.

In determining the purchase cost, the actuary shall determine the full actuarial cost utilizing the actuarial assumptions in effect for the PSP program at the time of purchase and taking into consideration the additional benefits that may be provided by the Plan as a result of the purchased service. Factors to be considered by the actuary shall include, as applicable: the member’s age; the date benefits will first become payable (the specified date or the actual date); the number of known eligible survivors; the ages of any known eligible survivors; the member’s pension base (estimated or actual); the investment earnings rate that is assumed to accrue to the Plan on the member’s PSP payments; and any other factors that are relevant to cost neutrality. For all PSP program purposes, the date a member enters DROP shall be considered the date that benefits first become payable, notwithstanding that no benefits are actually paid to the member until the member terminates employment and exits DROP.

A member’s cost for the purchase of service may differ from the amount determined in advance if a true up is required. A purchase is finalized when the member has paid the full cost for the service purchased, including any adjustment in cost or service required as a result of a true up. In the event that the member’s pension base changes after the member’s purchase has been finalized, a pension base adjustment shall be made by adjusting the years of service, retroactive to the date that benefits first became payable, so that the amount of the monthly benefit purchased remains unchanged.

The City Administrative Officer shall conduct periodic reviews of the program every five years to ensure that the program is cost neutral to the City. Cost neutrality shall be determined with regard to the additional benefits provided by the Plan as a result of purchased service, without taking into consideration any incidental administrative expenses incurred by the Plan.

(d) Service Eligible for Purchase. A member may purchase service under the PSP program with any public entity subject to the following limitations:

(1) Only full-time service may be purchased.

(2) No more than a total of four years of service may be purchased.

(3) Service with a branch of the United States military service may be purchased only if the member was honorably discharged.

(4) Service with any bona fide police agency or fire suppression agency may be purchased only if the member was not terminated

for cause.

(5) Service for which the member is eligible, or may become eligible, to receive a retirement benefit from another entity may not be

purchased unless federal law requires otherwise. This prohibition shall not apply when a member ceases to be eligible for benefits from a prior plan due to a withdrawal of the member’s funds or a waiver of benefits.

(6) Service may not be purchased if the benefits payable as a result of this additional service purchase would cause the member’s benefits to exceed the Internal Revenue Code Section 415(b)(1)(A) limits at the time of retirement and result in benefits being paid to the member from the Excess Benefit Plan, rather than the Plan.

In the event that purchased service is determined to be ineligible for purchase (due to a violation of one or more of these limitations) prior to the date that the member terminates employment, the purchase of the ineligible service shall be rescinded and the member shall be refunded the payments attributable to the purchase of this ineligible service, with interest, payable upon the earlier of the member’s death or termination of employment. A purchase of service may not be rescinded after service pension benefits have actually been paid to the member, but may be rescinded during the period that the member is in DROP, with an appropriate adjustment in the amount of the payments made into the member’s DROP account retroactive to the date of entry into DROP.

(e) Restrictions Applicable to Purchased Service. Purchased service shall be included in a member’s years of service only for the

purpose of calculating the amount of the member’s service pension and any survivorship benefits based upon the member’s service pension entitlement, provided that the total years of service used to calculate a member’s service pension shall never exceed thirty years for Tiers 2, 3 and 4 or thirty-three years for Tiers 5 or 6 . However, should a member who purchased service and either entered DROP or retired on a service pension subsequently be retired on a disability pension, unless the service purchase has been revoked as provided in Subsection (g)(5), the purchased service shall be included in the member’s years of service to the extent applicable for purposes of computing the minimum disability pension payable based upon the member’s service and any survivorship benefits payable in the event of the member’s death. Purchased service shall not count as service for purposes of the contribution provisions of any of the tiers and does not excuse a member from making the contributions required by the member’s tier. Purchased service shall not count as years of service for purposes of any of the benefits provided in Chapter 11.5 of Division 4 of the Los Angeles Administrative Code. Purchased service shall not count to establish eligibility for service or disability retirement or eligibility to enter DROP.

(f) Methods of Purchasing Service. A member may enter into a written agreement with the Plan to purchase service by a lump sum

payment or on an installment basis through payroll deductions or by both.

Lump sum payments may be paid in cash or by a direct rollover from the City’s Deferred Compensation Plan or by a combination of these methods.

Installment payments shall be made by payroll deduction on a post-tax basis pursuant to the terms of the member’s written agreement with the Plan. An installment payment agreement may be initiated or ended by a lump sum payment. While a member may terminate a payroll deduction agreement at any time and cease to make further payments, a member shall not be allowed to enter into another written agreement to purchase any service covered by the terminated agreement. If a payroll deduction agreement is terminated then, at retirement or entry into DROP, whichever occurs first, the member may elect to receive pro-rated service based on the payments already made or to revoke all of the purchase and receive a refund as provided in Subsection (g)(6).

At the time a member is provided with a cost estimate for the purchase of service, the member shall be advised of the interest rate that will accrue on any unpaid balance if not paid in full by a specified date. The interest rate that a member shall be charged on the unpaid balance of any purchase agreement shall be the same rate as the investment earning rate assumption applicable to advance purchase payments at that time.

All advance purchases are subject to being trued up at the time benefits first become payable. If the member’s trued up cost is less than the amount that the member has paid, including assumed investment earnings, the difference may be refunded to the member or used to purchase additional eligible service. If the member’s trued up cost exceeds the amount that the member has paid, including assumed investment earnings, the member may make a lump sum payment prior to retirement to complete the service purchase or receive pro-rated service based on the amount already paid. In addition, when a true up is required, a member may always elect to revoke all of the purchase and receive a refund as provided in Subsection (g)(6).

A member may only enter into one written agreement to purchase a specific period of service. Once a member has paid to purchase service, these payments may not be refunded except as provided above or in Subsections (d) and (g). A member shall not be paid a refund until the member terminates employment.

(g) Refund of Payments. A member’s payments to purchase service shall be refunded only as provided in Subsections (d) and (f) above or as provided below:

(1) In the event a member terminates employment other than by retiring on a service pension, all payments made by the member under the PSP program, including interest, shall be refunded to the former member upon request and the purchase agreement shall be revoked. A former member who becomes eligible for a deferred service retirement may elect, instead of taking a refund, to retain credit for that portion of the service purchased by the amount already paid, based upon a true up of the cost. In the event the former member dies prior to electing either a refund or a deferred service retirement including purchased service, all payments made under the PSP program, including interest, shall be refunded to the former member’s designated PSP beneficiary or, if none, to the former member’s estate.

(2) If a member dies prior to entering DROP or, if not in DROP, prior to retiring, and leaves no eligible surviving spouse or
domestic partner, all payments made by the member under the PSP program, including interest, shall be refunded to the member’s
designated PSP beneficiary or, if none, to the member’s estate and the purchase agreement shall be revoked.

(3) If a member dies prior to entering DROP or, if not in DROP, prior to retiring, and leaves an eligible surviving spouse or
domestic partner, all payments made by the member under the PSP program, including interest, shall be refunded to the member’s
designated PSP beneficiary or, if none, to the member’s spouse or domestic partner and the purchase agreement shall be revoked,
provided that the eligible surviving spouse or domestic partner may elect to retain part or all of the purchased service, in which case
the full actuarial cost shall be trued up based on the benefits that will be provided to the survivor and only that portion of the payments
and interest exceeding the trued up cost for the retained purchased service shall be refunded as set forth above.

(4) Should a member, as a result of purchased service, accrue more than thirty (30) years of service for Tiers 2, 3 and 4 or thirty-
three (33) years of service for Tiers 5 or 6 for service pension calculation purposes, upon termination of employment the member shall
be refunded the amount that was paid to purchase this excess service, including interest.

(5) Provided a member has not retired on a service pension prior to being approved for a disability pension, the service purchase
agreement shall be revoked and the member refunded all payments, including interest, when the member terminates employment by
retiring on a disability pension. However, if a member forfeits the member’s DROP account in order to receive a disability pension,
the member may elect to retain the service purchased under the PSP program instead of receiving a refund. There is no right to revoke
the service purchase agreement and receive a refund if the member retired on a service pension prior to being granted a disability
pension.

(6) When a member’s full actuarial cost for an advance purchase is trued up at the time that benefits first become payable, the
member may elect to revoke the purchase and receive a refund of all payments, including interest, upon termination of employment.

Unless a refund is authorized as provided in this subsection or Subsections (d) or (f), payments made to purchase service shall not be refunded. To the extent that a refund is authorized and made, the service purchase shall be revoked accordingly.

After a member enters DROP, no portion of the purchase price shall be refunded unless the member qualifies for a refund under Paragraph (5) of this subsection or under Subsection (d) related to the purchase of ineligible service. After a member retires on a service pension, none of the purchase price shall ever be refunded.

(h) The City May Modify or Terminate the Program. The City Council may review the costs and usefulness of the PSP program for

recruitment and retention purposes. The City Council may modify or terminate the program in the manner authorized by Charter Section 1234. In the event the program is modified or terminated, agreements to purchase service that were entered into prior to the program’s modification or termination shall continue to be honored as provided in Charter Section 1234.

(i) Board Administration of the Program. The Board shall administer the PSP program and adopt all rules necessary to implement the program. The Board shall periodically review and approve the assumptions, including the investment earning rate assumptions applicable to advance purchase payments, and the methodology to be used by the Board’s actuary to determine the full actuarial cost for this benefit that will be charged to the members. The Board shall establish the amount of interest and the manner in which this interest is credited on PSP payments for refund purposes, provided that the amount of interest shall not exceed that paid on normal contributions to the Plan. The Board shall account for all PSP payments and for the additional benefits paid as a result of PSP purchases in a manner that will allow the Board to periodically review the program to ensure that the program is cost neutral. The Board shall determine any factual questions arising in connection with the program’s operation after investigation or hearing as the Board deems appropriate. The Board’s decision shall be conclusive and binding on all parties concerned.

(j) DROP Window. Notwithstanding the provisions of Subsection (b), a member who enters DROP during the period of January 1, 2008 through May 1, 2008, may initiate service purchases under the PSP program no later than August 1, 2008, but these purchases must be finalized no later than August 1, 2009. A purchase of service under this subsection may not be initiated or finalized after a member exits DROP. The member must be in DROP at the time that the service purchase is initiated and finalized.

SECTION HISTORY

Added by Ord. No. 179,813, Eff. 4-22-08. Amended by: Subsecs. (a), (e) and (g)(4), Ord. No. 181.770, Eff. 7-8-11.

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

“Board” means the Board of Fire and Police Pension Commissioners.

“DROP” means the Deferred Retirement Option Plan established in Chapter 21 of Division 4 of the Los Angeles Administrative Code.

“Full Actuarial Cost” means the cost to be paid for purchased service in order to achieve cost neutrality to the Plan as determined by the Board’s actuary.

“LAAC” means the Los Angeles Administrative Code.

“LACERS” means the Los Angeles City Employees' Retirement System.

“OPS Service Purchase Program” means the voluntary program that allows certain members, who were formerly employed with the Department of General Services’ Office of Public Safety (OPS), to purchase service with the Fire and Police Pension Plan on the terms and conditions established in this section.

“Plan” means the Fire and Police Pension Plan established in Article XI, Part 3 of the Los Angeles City Charter.

“Purchased Service” means service purchased under the OPS Service Purchase Program.

“Tier 6" means the Tier of the Plan established in Charter Sections 1700-1726.

(b) Participation in the Program. Only persons who were transferred to the Police Department from the Department of General Services and gained status in Class Code 2214, 2217, 2223, 2227, 2232 or 2244, and who become members of Tier 6 of the Plan may purchase service as provided herein.

A Tier 6 member who satisfies these criteria shall not be eligible to enter into a written purchase agreement until the member passes the field certification program with the Police Department. This limitation is necessary because of the possibility the member could revert back to membership in LACERS prior to obtaining field certification.

(c) Service Eligible for Purchase. Only sworn service with the City in Class Codes 3183, 3185, 3188 and 3198 for which the employee paid contributions and earned service credit with LACERS may be purchased as provided herein. Such periods of service shall be referred to as “Eligible Service” for purposes of this section.

(d) Transfer of Funds from LACERS to the Plan. For each member who elects to make a purchase under this section, LACERS shall transfer to the Plan:

(1) Sufficient funds to cover all funded accrued liability related to the benefits provided in Chapter 10 of Division 4 of the LAAC for all periods of the member’s Eligible Service to include, but not necessarily be limited to, employee contributions, City contributions, and earnings. The transfer of all member contributions attributable to periods of Eligible Service is mandatory; the member shall have no right to authorize only a partial transfer of such contributions even if the member elects to purchase only a part, rather than all, of the periods of Eligible Service. The portion of the funds that are transferred from the member’s contribution account with LACERS, including interest, shall be transferred to the member’s individual contribution account with the Plan (where they shall earn interest and be refundable as provided in Charter Section 1714); the balance of the funds transferred from LACERS shall be transferred to the appropriate Plan account and credited toward satisfying the City’s liability for the benefits provided in Tier 6 of the Plan (excluding the City’s liability for benefits provided in Chapter 11.5 of Division 4 of the LAAC).

(2) Sufficient funds from LACERS’ 401(h) account shall be transferred to cover all funded accrued liability related to the benefits provided in Chapter 11 of Division 4 of the LAAC for all periods of the member’s Eligible Service to include, but not necessarily be limited to, City contributions and earnings. These funds shall be transferred directly to the Plan’s 401(h) account and credited toward satisfying the City’s obligation to fund benefits provided in Chapter 11.5 of Division 4 of the LAAC.

The amount of funds due to the Plan from LACERS shall be mutually agreed upon between the Plan and LACERS, upon advice from the plans’ actuaries, 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 determined by first using the results in the most recent actuarial valuation as of June 30, 2013, and then adjusting those results for the passage of time, including adjustments for both time value of money and City and employee contributions made from June 30, 2013, to the date of fund transfer to the Plan, using the actuarial assumptions from the June 30, 2013, valuation. All the relevant actuarial assumptions used in the June 30, 2013, LACERS actuarial valuations, with adjustment to a unisex basis, are to be used in the calculations. There shall be a separate calculation for purposes of Subdivision (1) and for purposes of Subdivision (2) above. The total sum transferred shall be credited towards the member’s purchase costs, as provided in Subsections (f), (g) and (h) herein, and the member shall forfeit all right to benefits from LACERS for the periods of Eligible Service for which these funds have been transferred.

(e) Right to Purchase Years of Service. A member shall have a one-time right to elect to purchase Years of Service with the Plan for periods of Eligible Service with LACERS by entering into a purchase agreement, subject to the following terms and conditions:

(1) Minimum Purchase. The member may elect to purchase the minimum number of Years of Service with the Plan that can be purchased outright with the funds transferred to the Plan from LACERS pursuant to Subsection (d) above, provided that the member shall be required to pay any additional amount required to purchase the same number of Years of Service for Tier 6 health benefits and for all other Tier 6 benefits.

(2) Maximum Purchase. The member may elect to purchase the total period of Eligible Service with the Plan.

(3) Purchase Restrictions. The member shall be required to make either a minimum purchase or a maximum purchase, as provided in Subdivision (1) or (2) above. A member shall not be allowed to purchase a different number of Years of Service for Tier 6 health benefit purposes than for purposes of other Tier 6 benefits.

(4) Purchase Deadline. The right to purchase service granted in this section shall terminate on June 30, 2015, except that written purchase agreements entered into on or before that date may be completed thereafter.

Notwithstanding the provisions of Charter Section 1702(p), purchased service shall be treated as Years of Service for all Tier 6 purposes pursuant to the authority granted to the City Council in Charter Section 1703(a).

(f) Cost of Purchased Service. The member shall be required to pay the full actuarial cost of the purchased service as determined by the Plan’s actuary without taking into consideration incidental administrative expenses incurred by the Plan, reduced by the amount of any funds transferred from LACERS to the Plan as provided in Subsection (d) above, except as may be otherwise provided in Subsection (g) below. The total purchase cost for each member, including funds transferred pursuant to Subsection (d) above, shall be allocated between the portion

necessary to fund the Tier 6 health benefits provided in Chapter 11.5 of Division 4 of the LAAC and to fund all the other benefits provided in Tier 6 .

In determining the purchase cost, the actuary shall determine the full actuarial cost utilizing the actuarial assumptions in the most recent actuarial valuation as of June 30, 2013, and then adjusting those results for the passage of time from June 30, 2013, to the date of the actual payment for the purchase contracted using the actuarial assumptions from the June 30, 2013, valuation, and taking into consideration the benefits that may be provided by the Plan as a result of the purchased service. Factors to be considered by the actuary shall include: (a) projected salary increases; (b) probabilities of service retirement, disability retirement, DROP participation, termination, death; (c) probability of leaving a spouse or domestic partner eligible for a continuance benefit; and (d) medical inflation and other assumptions included in the actuarial valuations. All the relevant actuarial assumptions used in the June 30, 2013, Plan actuarial valuations, with adjustment to a unisex basis, will be used in the calculations. There shall be a separate calculation for each of the benefits referenced in Subsections (g) and (h) below.

(g) Purchase Costs Attributable to Tier 6 Health Benefits. The member shall pay the full actuarial cost for the Years of Service

purchase attributable to the Tier 6 health benefits provided in Chapter 11.5 of Division 4 of the LAAC, as determined in Subsection (f).

Due to federal rules that apply to the Plan’s 401(h) account, in the event that the funds transferred from LACERS’ 401(h) account to the Plan’s 401(h) account (as provided in Subsection (d)(2)) are not sufficient to fund the full actuarial cost of the purchased service attributable to the benefit provided in Chapter 11.5 of Division 4 of the LAAC to a given member (as determined in Subsection (f)), the member shall make additional contributions to fund the member’s other Tier 6 benefits in an amount equal to the amount by which the 401(h) account has been underfunded. The purpose of such additional contributions (which reduce the City’s obligation to fund other Tier 6 benefits) is to offset the additional liability incurred by the City for the benefits payable to the member from the Plan’s 401(h) account, pursuant to the provisions in Chapter 11.5 of Division 4 of the LAAC, so as to render the member’s purchase of this service cost neutral to both the City and the Plan. These additional contributions shall be placed in the member’s individual contribution account and shall be credited with interest and be refunded on the terms set forth in Charter Section 1714. Such additional contributions shall be paid as provided in Subsection (i) below.

(h) Purchase Costs Attributable to Other Tier 6 Benefits. The member shall pay the full actuarial cost for the Years of Service purchase attributable to other Tier 6 benefits (excluding the cost for the health benefits provided in Chapter 11.5 of Division 4 of the LAAC) as determined in Subsection (f).

To the extent that the purchase cost required to fund other Tier 6 benefits exceeds the funds transferred under Subsection (d)(1), the member shall make additional contributions, which shall be placed in the member’s individual contribution account and shall be credited with interest and be refunded on the terms set forth in Charter Section 1714. Such additional contributions shall be paid as provided in Subsection (i) below.

(i) Written Purchase Agreement Required. A member shall not be considered to have made an election under this section until the

member enters into a written purchase agreement with the Plan as provided herein.

The member shall, on or before June 30, 2015, enter into a written purchase agreement with the Plan for the purchase of Eligible Service. If this purchase requires the member to make additional contributions as provided in Subsection (g) and/or (h) above, the written purchase agreement shall specify whether these payments shall be paid by lump sum payment(s) or on an installment basis through payroll deductions or by both.

A member’s election to purchase service under this provision shall become irrevocable once the member’s funds have been transferred from LACERS to the Plan pursuant to Subsection (d) above. A member who has entered into a written purchase agreement may unilaterally revoke the purchase agreement by notifying LACERS, in writing, not to transfer the member’s funds to the Plan, provided that this written notice must be received by LACERS before the member’s funds have been transferred from LACERS to the Plan. After the member has timely notified LACERS not to transfer funds, LACERS shall notify the Plan and provide the Plan with a copy of the written notice received from the member. Once a member has revoked the member’s purchase agreement by providing the requisite written notice to LACERS, the member shall no longer have any right to purchase service under this section.

At the time a member is provided with a cost estimate for the purchase of service, the member shall be advised of the interest rate that will accrue on any unpaid balance if not paid in full by a specified date. The interest rate that a member shall be charged on the unpaid balance of any purchase agreement shall be the same rate as the assumed investment earnings rate used in the Plan’s June 30, 2013, actuarial valuations.

Lump sum payments for amounts due in excess of the funds transferred pursuant to Subsection (d) above may be paid by a cash payment (including a post-tax payroll deduction), by a trustee-to-trustee transfer from the City’s Deferred Compensation Plan pursuant to Internal Revenue Code Section 457(e)(17) or by a rollover from an eligible retirement plan (as defined in Internal Revenue Code Section 402(c)(8)), or by a combination of these methods.

In addition to the methods set forth in the preceding paragraph, a member may make a lump sum payment by waiving the member’s right to all benefits (based on all of the member’s service other than Eligible Service) with LACERS and authorizing a transfer of all of the member’s remaining LACERS member contributions and accrued interest (attributable to all service other than Eligible Service) from LACERS to the Plan, provided that the total amount of the member’s remaining LACERS contributions and interest does not exceed the remaining amount that the member owes to the Plan for the purchase. LACERS shall not accept a waiver nor transfer any funds as provided in this paragraph unless and until LACERS has verified with the Plan that the amount of funds to be transferred will not exceed the amount then owed by the member to the Plan. The member shall not have a right to authorize a partial transfer of funds from LACERS to the Plan under this provision.

Installment payments shall be made in a fixed amount by payroll deduction on a post-tax basis pursuant to the terms of the member’s written agreement with the Plan. An installment payment agreement may be initiated or ended by a lump sum payment. While a member may terminate a payroll deduction agreement at any time and cease to make further payments, a member shall not be allowed to complete this

purchase at a later date nor may the member enter into another written agreement to purchase any service covered by the terminated agreement. If a payroll deduction agreement is terminated, the member shall receive pro-rated Years of Service based on the payments already made.

All payments, whether by lump sum or on an installment basis, must be completed prior to the member’s retirement or, if applicable, DROP entry date, whichever occurs first. If payment in full has not been timely made, the member shall receive pro-rated Years of Service based on the payments already made.

In the event a member receives pro-rated Years of Service, the same number of Years of Service shall be allocated for purposes of Tier 6 health benefits as for all other Tier 6 benefits, since a member may not purchase a different number of Years of Service for Tier 6 health benefit purposes than for purposes of other Tier 6 benefits.

Notwithstanding the above, a member who elects to make a Minimum Purchase, as provided in Subsection (e)(1), shall be required to make all additional payments that are necessary to purchase the same number of Years of Service for Tier 6 health benefit purposes as for purposes of other Tier 6 benefits. Failure to complete such payments shall render such service purchase null and void: all contributions paid by the member to purchase Eligible Service (including the LACERS’ employee contributions and interest that were transferred to the Plan, but not including any City funding transferred from LACERS to the Plan) shall be refunded to the member, with interest, upon the member’s retirement, and the member shall not be entitled to receive Years of Service with the Plan for the member’s Eligible Service with LACERS.

In the event a member who has not completed payment for an Eligible Service Purchase dies prior to entering DROP or prior to retirement, if not a DROP participant, and leaves a Qualified Survivor, as defined in Charter Section 1702(g), the Qualified Survivor shall have the right to make a lump sum payment to complete the member’s purchase, rather than to have the member’s Years of Service pro-rated based upon the payments made prior to the member’s death. The Qualified Survivor shall have ninety (90) days following the member’s death to make the Qualified Survivor’s election, unless the Board by rule shall establish a different election period. No benefits shall be paid from the Plan on account of the member’s death until the Qualified Survivor has either elected to complete the purchase and made timely payment or elected not to complete the purchase, unless the election period expires without any election having been made by the Qualified Survivor. The Board, by rule, shall establish a deadline for the receipt of payment from a Qualified Survivor who has elected to complete the purchase; failure to make timely payment shall constitute an election by the Qualified Survivor not to complete the purchase.

(j) Reversion of Funds to LACERS. In the event a former Plan member who purchased service under this section should become

employed by the City in a position in which the former member becomes a member of LACERS, the Board, upon receipt of a written request from such former member, shall authorize a transfer of all the former member’s contributions, including interest, from the Plan to LACERS, provided that the former member shall be required to waive all rights to benefits from the Plan. The member contributions to be transferred shall include all member contributions made to the Plan during periods of Plan membership plus any member contributions made to LACERS that were previously transferred from LACERS to the Plan pursuant to a purchase under this section. In addition to transferring all member contributions, the Plan shall transfer to LACERS all other funds transferred to the Plan from LACERS on account of such former Plan member, together with any interest and/or earnings attributable thereto. These funds shall be transferred from the appropriate Plan account (member contributions, City regular contributions and investment income, and 401(h) account) and shall be returned to the appropriate LACERS fund (member contributions, City regular contributions and investment income, and 401(h) account).

(k) Board Administration of the Program. The Board shall administer the OPS Service Purchase Program and adopt all rules necessary to implement the program. The Board shall determine any factual questions arising in connection with the program's operation after investigation or hearing, as the Board deems appropriate. The Board’s decision shall be conclusive and binding on all parties concerned.

SECTION HISTORY

Added by Ord. No. 183,163, Eff. 8-8-14.

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

Airport Peace Officer Service Purchase Program means the program that requires persons appointed prior to January 7, 2018, and who, on that date, or on the date immediately preceding the date of such persons’ appointment as a firefighter and employment by the Fire Department, were sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports, in class codes 3225-1, 3225-2, 3225-3, 3202-0, 3202-1, 3202-2, 3236, 3226-0, 3226-1, 3226-2, 3227, 3203, 3203-9, 3228- 0, 3228-1, 3228-2, 3205, 3234 or 3232, and who made an irrevocable election in writing to become a member of Tier 6 in lieu of membership in LACERS, to purchase all of their prior LACERS service from the Plan on the terms and conditions established in this section.

Board means the Board of Fire and Police Pension Commissioners.

DROP means the Deferred Retirement Option Plan established in Chapter 21 of Division 4 of the Los Angeles Administrative Code.

Full Actuarial Cost means the cost to be paid for purchased service in order to achieve cost neutrality to the Plan as determined by

the Board’s actuary.

LAAC means the Los Angeles Administrative Code.

LACERS means the Los Angeles City Employees’ Retirement System.

Plan means the Fire and Police Pension Plan established in Article XI, Part 3 of the Los Angeles City Charter.

Purchased Service means service purchased under the Airport Peace Officer Service Purchase Program.

Tier 6 means the Tier of the Plan established in Charter Sections 1700-1726.

(b) Participation in the Program. Only persons who were appointed prior to January 7, 2018, and who, on that date, or on the date

immediately preceding the date of such persons’ appointment as a firefighter and employment by the Fire Department, were sworn in, as provided by Penal Code Section 830.1, to perform police or firefighting duties for the Department of Airports, in class codes 3225-1, 3225-2, 3225-3, 3202-0, 3202-1, 3202-2, 3236, 3226-0, 3226-1, 3226-2, 3227, 3203, 3203-9, 3228-0, 3228-1, 3228-2, 3205, 3234 or 3232, and who made an irrevocable election in writing to become a member of Tier 6 in lieu of membership in LACERS, on the terms and conditions set forth in Charter Section 1704 and in Sections 4.1002(e)(1), 4.1080.2(e)(1), and this Section 4.2215 of the LAAC.

(c) All Prior Service Must Be Purchased. Consistent with Charter Section 1704(b), all members who elected to enter Tier 6 membership in lieu of membership in LACERS must transfer all prior service from LACERS to the Plan, including prior City service earned as a contributing member of LACERS and any service purchased from LACERS, and pay the full actuarial cost of the service to be transferred, as determined by the Plan’s actuary and pursuant to the requirements of this section.

(d) Transfer of Funds from LACERS to the Plan. For each member who purchases prior service pursuant to this section, LACERS shall transfer to the Plan by way of a direct trustee-to-trustee transfer and in a manner consistent with the Internal Revenue Code:

(1) Sufficient funds to cover all funded accrued liability related to the benefits provided in Chapter 10 of Division 4 of the LAAC

for all periods of the member’s prior service to include, but not necessarily be limited to, employee contributions, City/Department of Airports contributions, and earnings. The funds that are transferred from the member’s contribution account with LACERS, including interest, shall be transferred to the member’s individual contribution account with the Plan (where they shall earn interest and be refundable as provided in Charter Section 1714); the balance of the funds transferred from LACERS shall be transferred to the appropriate Plan account and credited toward satisfying the City’s liability for the benefits provided in Tier 6 of the Plan (excluding the City’s liability for benefits provided in Chapter 11.5 of Division 4 of the LAAC).

(2) Sufficient funds from LACERS’ 401(h) account shall be transferred to cover all funded accrued liability related to the benefits

provided in Chapter 11 of Division 4 of the LAAC for all periods of the member’s service to include, but not necessarily be limited to, City/ Department of Airports contributions and earnings. These funds shall be transferred in a manner consistent with the Internal Revenue Code directly to the Plan’s 401(h) account and credited toward satisfying the City’s obligation to fund benefits provided in Chapter 11.5 of Division 4 of the LAAC.

The amount of funds due to the Plan from LACERS shall be mutually agreed upon between the Plan and LACERS, subject to all requirements of the Internal Revenue Code, upon advice from the plans’ actuaries, and is to include, but not necessarily be limited to, employee contributions, City/Department of Airports contributions, and earnings to cover all funded accrued liability for the period of the transferred service determined by first using the results in the most recent actuarial valuation as of June 30, 2016, and then adjusting those results for the passage of time, including adjustments for both time value of money and City and employee contributions made from June 30, 2016, to the date of fund transfer to the Plan, using the actuarial assumptions from the June 30, 2016, valuation. All the relevant actuarial assumptions used in the June 30, 2016, LACERS actuarial valuations, with adjustment to a unisex basis, are to be used in the calculations. There shall be a separate calculation for purposes of Subdivision (1) and for purposes of Subdivision (2) above. The total sum transferred shall be credited towards the member’s purchase costs, as provided in Subsections (f), (g) and (h) herein, and the member shall forfeit all right to benefits from LACERS.

(e) Requirement to Purchase Years of Service. A member shall purchase Years of Service with the Plan for all prior periods of service with LACERS by entering into a purchase agreement, subject to the following terms and conditions:

(1) All Service Must Be Purchased. The member must elect to purchase the total period of prior LACERS service from the Plan.

(2) Purchase Deadline. The right to become a member of LAFPP and purchase service granted in this section shall terminate on January 7, 2018, or upon the date of the employee’s graduation from the Fire Department drill tower, whichever is earlier, except that written purchase agreements entered into on or before that date may be completed thereafter.

Notwithstanding the provisions of Charter Section 1702(q), purchased service shall be treated as Years of Service for all Tier 6 purposes pursuant to the authority granted to the City Council in Charter Section 1704(a).

(f) Cost of Purchased Service. The member shall be required to pay the full actuarial cost of the purchased service as determined by the Plan’s actuary without taking into consideration incidental administrative expenses incurred by the Plan, reduced by the amount of any funds transferred from LACERS to the Plan as provided in Subsection (d) above, except as may be otherwise provided in Subsection (g) below. The total purchase cost for each member, including funds transferred pursuant to Subsection (d) above, shall be allocated between the portion necessary to fund the Tier 6 health benefits provided in Chapter 11.5 of Division 4 of the LAAC and to fund all the other benefits provided in Tier 6 .

In determining the purchase cost, the actuary shall determine the full actuarial cost utilizing the actuarial assumptions in the most recent actuarial valuation as of June 30, 2016, and then adjusting those results for the passage of time from June 30, 2016, to the date of the actual

payment for the purchase contracted using the actuarial assumptions from the June 30, 2016, valuation, and taking into consideration the benefits that may be provided by the Plan as a result of the purchased service. Factors to be considered by the actuary shall include: (a) projected salary increases; (b) probabilities of service retirement, disability retirement, DROP participation, termination, death; (c) probability of leaving a spouse or domestic partner eligible for a continuance benefit; and (d) medical inflation and other assumptions included in the actuarial valuations. All the relevant actuarial assumptions used in the June 30, 2016, Plan actuarial valuations, with adjustment to a unisex basis, will be used in the calculations. There shall be a separate calculation for each of the benefits referenced in Subsections (g) and (h) below.

The Plan’s actuary shall calculate each member’s purchase cost as of the member’s transfer effective date as provided in Section 4.1002(e) (1)(C) or Section 4.1080.2(e)(1)(C) of the LAAC.

(g) Purchase Costs Attributable to Tier 6 Health Benefits. The member shall pay the full actuarial cost for the Years of Service

purchase attributable to the Tier 6 health benefits provided in Chapter 11.5 of Division 4 of the LAAC, as determined in Subsection (f).

In accordance with the Internal Revenue Code, in the event that the funds transferred from LACERS’ 401(h) account to the Plan’s 401(h) account (as provided in Subsection (d)(2)) are not sufficient to fund the full actuarial cost of the purchased service attributable to the benefit provided in Chapter 11.5 of Division 4 of the LAAC to a given member (as determined in Subsection (f)), the member shall make additional contributions on an after-tax basis to fund the member’s other Tier 6 benefits in an amount equal to the amount by which the 401(h) account has been underfunded. The purpose of such additional contributions (which reduce the City’s obligation to fund other Tier 6 benefits) is to offset the additional liability incurred by the City for the benefits payable to the member from the Plan’s 401(h) account, pursuant to the provisions in Chapter 11.5 of Division 4 of the LAAC, so as to render the member’s purchase of this service cost neutral to both the City and the Plan. These additional contributions shall be placed in the member’s individual contribution account and shall be credited with interest and be refunded on the terms set forth in Charter Section 1714. Such additional contributions shall be paid as provided in Subsection (i) below.

(h) Purchase Costs Attributable to Other Tier 6 Benefits. The member shall pay the full actuarial cost for the Years of Service purchase attributable to other Tier 6 benefits (excluding the cost for the health benefits provided in Chapter 11.5 of Division 4 of the LAAC) as determined in Subsection (f).

To the extent that the purchase cost required to fund other Tier 6 benefits exceeds the funds transferred under Subsection (d)(1), the member shall make additional contributions, which shall be placed in the member’s individual contribution account and shall be credited with interest and be refunded on the terms set forth in Charter Section 1714. Such additional contributions shall be paid as provided in Subsection (i) below.

(i) Written Purchase Agreement Required. The member shall, on the date upon which the member files the member’s election form

with LACERS, pursuant to Section 4.1002(e)(1) or Section 4.1080.2(e)(1), enter into a written purchase agreement with the Plan for the purchase of service. If this purchase requires the member to make additional contributions as provided in Subsection(s) (g) and/or (h) herein, the written purchase agreement shall specify whether these payments shall be paid by lump sum payment(s) or on an installment basis through payroll deductions or by both.

A member’s election to become a member of LAFPP and purchase service under this provision shall become irrevocable once the member files the member’s election form with LACERS.

At the time a member is provided with a cost estimate for the purchase of service, the member shall be advised of the interest rate that will accrue on any unpaid balance if not paid in full by a specified date. The interest rate that a member shall be charged on the unpaid balance of any purchase agreement shall be the same rate as the assumed investment earnings rate used in the Plan’s June 30, 2016, actuarial valuations.

Subject to requirements of the Internal Revenue Code, lump sum payments for amounts due in excess of the funds transferred pursuant to Subsection (d) above may be paid by a cash payment on an after-tax basis (including a post-tax payroll deduction), by a trustee-to-trustee transfer from the City’s Deferred Compensation Plan pursuant to Internal Revenue Code Section 457(e)(17) or by a rollover from an eligible retirement plan (as defined in Internal Revenue Code Section 402(c)(8)), or by a combination of these methods.

Installment payments shall be made in a fixed amount by payroll deduction on a post-tax basis pursuant to the terms of the member’s written agreement with the Plan. An installment payment agreement may be initiated or ended by a lump sum payment.

All payments, whether by lump sum or on an installment basis, must be completed prior to the member’s retirement or, if applicable, DROP entry date, whichever occurs first.

In the event a member who has not completed payment for Purchased Service dies prior to entering DROP or prior to retirement, if not a DROP participant, and leaves a Qualified Survivor, as defined in Charter Section 1702(h), the Qualified Survivor shall have the right to make a lump sum payment to complete the member’s purchase, rather than to have the member’s Years of Service pro-rated based upon the payments made prior to the member’s death. The Qualified Survivor shall have ninety (90) days following the member’s death to make the Qualified Survivor’s election, unless the Board, by rule, shall establish a different election period. No benefits shall be paid from the Plan on account of the member’s death until the Qualified Survivor has either: (i) elected to complete the purchase and made timely payment; or (ii) elected not to complete the purchase. Failure to make timely payment within the election period shall constitute an election by the Qualified Survivor not to complete the purchase and receive benefits based on the pro- rated service as determined by the Plan’s actuary. The Board, by rule, shall establish a deadline for the receipt of payment from a Qualified Survivor who has elected to complete the purchase.

(j) Reversion of Funds to LACERS. In the event a former Plan member who purchased service under this section should become

employed by the City in a position in which the former member becomes a member of LACERS, the Board, upon receipt of a written request from such former member, shall authorize a transfer of all the former member’s contributions, including interest, from the Plan to LACERS, provided that the former member shall be required to waive all rights to benefits from the Plan. The member contributions to be transferred

shall include all member contributions made to the Plan during periods of Plan membership plus any member contributions made to LACERS that were previously transferred from LACERS to the Plan pursuant to a purchase under this section. In addition to transferring all member contributions, the Plan shall transfer to LACERS all other funds transferred to the Plan from LACERS on account of such former Plan member, together with any interest and/or earnings attributable thereto. These funds shall be transferred from the appropriate Plan account (member contributions, City regular contributions and investment income, and 401(h) account) and shall be returned to the appropriate LACERS fund (member contributions, City regular contributions and investment income, and 401(h) account).

(k) Board Administration of the Program. The Board shall administer the Airport Peace Officer Service Purchase Program and adopt all rules necessary to implement the program. The Board shall determine any factual questions arising in connection with the program’s operation after investigation or hearing, as the Board deems appropriate. The Board’s decision shall be conclusive and binding on all parties concerned.

(l) Department of Airports Responsibility for Payment. The Department of Airports shall pay LAFPP for all costs and expenses

incurred by the Plan in connection with administering this Airport Peace Officer Service Purchase Program including but not limited to the cost of any necessary reports prepared by the Plan’s actuary, the cost of any changes to the pension administration system, any legal expenses incurred by the Plan in connection with this election, and any staff time dedicated to administering this election. LAFPP shall be responsible for preparing invoices of all expenses incurred and submitting them to the Department of Airports for its review and approval.

SECTION HISTORY

Added by Ord. No. 184,853, Eff. 4-6-17.

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

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

Board means the Board of Fire and Police Pension Commissioners.

City Service or Service means those periods during which a LACERS Member received compensation from the City as an

employee or during which the LACERS Member not only received Workers’ Compensation benefits (Div. IV, California Labor Code) for temporary disability on account of any injury or illness arising out of and in the course of employment with the City, but for which the LACERS Member also made Member contributions to LACERS as provided in Charter Section 1162.

DROP means the Deferred Retirement Option Plan established in Chapter 21 of Division 4 of the Los Angeles Administrative Code.

Employer Contributions means contributions paid by the Member’s employing department, from the following revenue sources: the City’s General Fund, the Airport Revenue Fund, or the Harbor Revenue Fund.

Full Actuarial Cost means the cost to be paid by the City, including costs attributed to the Department of Airports or Harbor

Department for transferred service, membership, and associated ongoing costs to achieve cost neutrality for the Plan as determined by the Plan’s actuary.

LAAC means the Los Angeles Administrative Code. All statutory references contained in this section are to the LAAC unless otherwise indicated.

LACERS means the Los Angeles City Employees’ Retirement System.

LACERS Board of Administration means the Board of Administration of the Los Angeles City Employees’ Retirement System.

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

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

LACERS Service means a Member’s City Service and any periods of time purchased from LACERS, pursuant to Sections 4.1017,

4.1018, 4.1019, 4.1020, 4.1020.1, 4.1080.18, 4.1080.19, or 4.1080.20, provided that the terms and conditions for any service purchase agreements have been satisfied at the time of transfer or by a date selected by the Board and the LACERS Board of Administration. Any outstanding service purchase agreements shall be prorated for payments made as of the date of the Member’s transfer of service to Tier 6.

LAFPP or Plan means the Fire and Police Pension Plan established in Article XI, Part 3 of the Los Angeles City Charter.

LACERS Peace Officer Transfer Program or Program means the voluntary program that allows LACERS Peace Officer Members or LACERS Peace Officer Former Members, who are Active Employees on and as of January 12, 2025, to transfer membership and/or LACERS Service from LACERS to Tier 6 on the terms and conditions established in this section.

Tier 6 means the Tier of the Plan established in Charter Sections 1700 - 1726.

(b) Participation in LACERS Peace Officer Transfer Program. Only a LACERS Peace Officer Member or LACERS Peace Officer Former Member, who is an Active Employee of the Police Department, Department of Airports, Harbor Department, or Department of Recreation and Parks on and as of January 12, 2025, is eligible to make an irrevocable election in writing to participate in the Program on the terms and conditions set forth in Charter Section 1709 and Section 4.1002, Section 4.1080.2, and this Section 4.2216 of the LAAC.

(1) Transfer of Membership and Service for LACERS Peace Officer Members. Consistent with Charter Section 1709, a

LACERS Peace Officer Member may make an irrevocable election in writing to become a Member of Tier 6 in lieu of membership in LACERS, and to transfer all LACERS Service to the Plan on the terms and conditions established in this section.

(2) Transfer of Membership and Service for LACERS Peace Officer Former Members. Consistent with Charter Section 1709,

a LACERS Peace Officer Former Member may transfer all remaining LACERS Service from LACERS to the Plan, including LACERS Service that was previously excluded from transfer pursuant to Section 4.2214(c) of the LAAC, on the terms and conditions established in this section.

(c) Requirements for Participation. A LACERS Peace Officer Member and LACERS Peace Officer Former Member shall transfer all prior periods of LACERS Service from LACERS to Tier 6 by filing an election form and executing a transfer agreement, subject to the following terms and conditions:

(1) All LACERS Service Must Be Transferred. Consistent with Charter Section 1709(b) and Subsection (b) of this section, a

LACERS Peace Officer Member or LACERS Peace Officer Former Member who elects to participate in the Program must transfer all LACERS Service from LACERS to Tier 6, and shall forfeit all rights to receive any benefits from LACERS.

(2) Election Deadline. The rights granted in this section to transfer membership from LACERS to Tier 6 and to transfer LACERS

Service to Tier 6, shall terminate on the election deadline, which shall be January 9, 2026 or on an earlier date selected by the Board and the LACERS Board of Administration, as provided in Sections 4.1002 and 4.1080.2 of the LAAC. A LACERS Peace Officer Member or LACERS Peace Officer Former Member must elect to transfer by the election deadline, unless the Board determines that a Member was unable to meet the deadline due to an authorized leave of absence.

(3) Written Agreement. The election to become a Member of Tier 6 and to transfer LACERS Service pursuant to this section shall

become irrevocable once an election form is accepted by LACERS pursuant to Section 4.1002 or Section 4.1080.2 of the LAAC. The Plan requires a written agreement for the transfer of service.

(4) Years of Service. Notwithstanding the provisions of Charter Section 1702(r), service transferred through participation in the

Program shall count as Years of Service for all Tier 6 purposes.

(5) Level Contributions. A LACERS Peace Officer Member who elects to transfer to Tier 6 shall continue to make contributions at the rate applicable to their LACERS membership to the extent required by the Internal Revenue Code and as provided in Charter Section 1714(a)(3).

(6) Age-Based Reduction Factor for Early Retirement. A LACERS Peace Officer Member or LACERS Peace Officer Former

Member who does not satisfy the requirements to be a qualified participant as defined by the Internal Revenue Code, including an employee of the Department of Recreation and Parks, shall be subject to the age-based reduction factor for early retirement as provided in Section 4.1906(l) of the LAAC.

(d) Actuarial Determinations for Costs. The Plan’s actuary shall determine the full actuarial cost of the Program, utilizing the actuarial assumptions in the most recent actuarial valuation as of June 30, 2024, and then adjusting those results for the passage of time from June 30, 2024, to the date of the actual transfer of membership and LACERS Service using the actuarial assumptions from the June 30, 2024 valuation, and taking into consideration the benefits that may be provided by the Plan as a result of the transferred LACERS Service. Factors to be considered by the actuary shall include: (a) projected salary increases; (b) probabilities of service retirement, disability retirement, DROP participation, termination, and death; (c) probability of leaving a spouse or domestic partner eligible for a continuance benefit; and (d) medical inflation and other assumptions included in the actuarial valuations. All the relevant actuarial assumptions used in the June 30, 2024 Plan actuarial valuations, will be used in the calculations, without taking into consideration incidental administrative expenses incurred by the Plan, which also may be reimbursed but separately tallied. There shall be a separate calculation for costs attributable to the transfer of LACERS Service, Tier 6 health benefits, and other Tier 6 benefits. The Plan’s actuary shall calculate each Member’s transfer cost as of the effective date of the transfer as provided in Section 4.1002 or Section 4.1080.2 of the LAAC.

(e) Transfer of Funds from LACERS to the Plan. For each Member who transfers LACERS Service pursuant to this section, LACERS shall transfer to the Plan by way of a direct trustee-to-trustee transfer and in a manner consistent with the Internal Revenue Code:

(1) Sufficient funds to cover all funded accrued liability related to the benefits provided in Chapter 10 of Division 4 of the LAAC for all periods of the Member’s LACERS Service to include, but not necessarily be limited to, employee contributions, employer contributions, buy back contributions, and earnings. The funds that are transferred from the Member’s contribution account with LACERS, including interest, shall be transferred to the Member’s individual contribution account with the Plan (where they shall earn interest and be refundable as provided in Charter Section 1714); the balance of the funds transferred from LACERS shall be transferred to the appropriate Plan account and credited toward satisfying the City’s liability for the benefits provided in Tier 6 of the Plan (excluding the City’s liability for benefits provided in Chapter 11.5 of Division 4 of the LAAC).

(2) Sufficient funds from the LACERS Health Care Coverage Account shall be transferred to cover all funded accrued liability
related to the health benefits provided in Chapter 11 of Division 4 of the LAAC for all periods of the Member’s LACERS Service to
include, but not necessarily be limited to, employer contributions and earnings. These funds shall be transferred in a manner consistent
with the Internal Revenue Code directly to the LAFPP Health Care Coverage Account and credited toward satisfying the City’s
obligation to fund benefits provided in Chapter 11.5 of Division 4 of the LAAC. Sufficient funds from the LACERS Health Care Fund
shall be transferred to cover all funded accrued liability related to the health benefits provided in Chapter 11 of Division 4 of the
LAAC for all periods of the Member’s service to include, but not necessarily be limited to, employer contributions and earnings. These
funds shall be transferred in a manner consistent with the Internal Revenue Code directly to the LAFPP Health Care Fund and credited
toward satisfying the City’s obligation to fund benefits provided in Chapter 11.5 of Division 4 of the LAAC.

The amount of funds due to the Plan from LACERS shall be agreed upon between the Plan and LACERS, subject to all requirements of the Internal Revenue Code, upon advice from their respective actuaries, and is to include, but not necessarily be limited to, employee contributions, employer contributions, and earnings to cover all funded accrued liability for the period of the transferred service determined by first using the results in the most recent actuarial valuation as of June 30, 2024, and then adjusting those results for the passage of time, including adjustments for both time value of money and City and employee contributions made from June 30, 2024, to the date of fund transfer to the Plan, using the actuarial assumptions from the June 30, 2024, valuation. All the relevant actuarial assumptions used in the June 30, 2024, actuarial valuations are to be used in the calculations. There shall be a separate calculation for purposes of Subdivision (1) and Subdivision (2) of this subsection. The total sum transferred shall be credited towards the costs associated with each Member’s transfer, as provided in Subsection (f) herein.

(f) Cost Neutrality for LAFPP. The Program shall be cost-neutral for the Plan. The City, Department of Airports, and Harbor Department shall pay the Full Actuarial Cost for the transfer of personnel and service, Tier 6 benefits, and Tier 6 health benefits, including increased ongoing costs as determined by the Plan’s actuary as provided in Subsection (d) above, and reduced by the amount of any funds transferred from LACERS to the Plan as provided in Subsection (e) above. The total transfer cost for each Member shall be allocated between the portion necessary to fund the Tier 6 benefits provided in the Charter and to fund the Tier 6 health benefits provided in Chapter 11.5 of Division 4 of the LAAC.

(1) Costs Attributable to Tier 6 Benefits. The City, Department of Airports, and Harbor Department shall pay the Full Actuarial

Cost for the Years of Service transferred attributable to Tier 6 benefits, excluding the cost for the health benefits provided in Chapter 11.5 of Division 4 of the LAAC as described in Subdivision (2) of this subsection. To the extent that the cost required to fund Tier 6 benefits exceeds the funds transferred under Subsection (e), the City, Department of Airports, and the Harbor Department shall make additional contributions, which shall be credited to the Plan to ensure this section is cost-neutral and shall not be placed in the Member’s individual contribution account.

(2) Costs Attributable to Tier 6 Health Benefits. The City, Department of Airports, and Harbor Department shall pay the Full

Actuarial Cost for the Years of Service transferred attributable to the Tier 6 health benefits provided in Chapter 11.5 of Division 4 of the LAAC, as determined in Subsection (d). In accordance with the Internal Revenue Code, in the event that the funds transferred from the LACERS Health Care Coverage Account to the LAFPP Health Care Coverage Account and from the LACERS Health Care Fund to the LAFPP Health Care Fund are insufficient to fund the Full Actuarial Cost of the transferred service attributable to the benefit provided in Chapter 11.5 of Division 4 of the LAAC to a given Member, then the City, Department of Airports, or Harbor Department, as applicable, shall make additional contributions to the LAFPP Health Care Coverage Account and the LAFPP Health Care Fund. The purpose of the additional contributions is to offset the additional liability incurred by the Plan for the benefits payable to the Member from the LAFPP Health Care Coverage Account and the LAFPP Health Care Fund, pursuant to the provisions in Chapter 11.5 of Division 4 of the LAAC, to ensure that each Member’s transfer is cost-neutral for the Plan.

(3) Costs Attributable to Administration. The City, Department of Airports, and Harbor Department shall pay the costs and

expenses necessary to administer the Program, excluding LAFPP staff time, which may be reimbursed at the City’s discretion. Reimbursement is required for all costs and expenses, including, but not limited: to the cost of any necessary reports prepared by the Plan’s actuary, the cost of any changes to the pension administration system, and expenses incurred by the Plan in connection with this election.

(g) Responsibility for Payment. The City’s General Fund, the Airport Revenue Fund, and the Harbor Revenue Fund shall be responsible for all costs and expenses associated with the Program. The unfunded actuarial accrued liability for the Program shall be paid at the time of transfer to ensure there is no impact on the Plan’s funded status. The Department of Airports and the Harbor Department shall pay the Plan for the costs and expenses, described in Subsection (f) above, for all transferring LACERS Peace Officer Members employed by their respective departments. The City shall pay the Plan for all other costs and expenses, including those associated with the Members of the Police Department and Department of Recreation and Parks who elect to participate in the Program. LAFPP shall be responsible for preparing invoices for all costs and expenses incurred and submitting them to the parties responsible for review and payment, provided that any requests for reimbursement of LAFPP staff time shall be submitted as a separate invoice.

(h) Reversion of Funds to LACERS. A LACERS Peace Officer Member or a LACERS Peace Officer Former Member who transferred service and membership pursuant to this section shall have Member contributions reversed and their membership reverted to the appropriate

LACERS Tier only if it is required by the Internal Revenue Service to preserve the qualified status of either LACERS or LAFPP. In the instance of reversion, the former Plan Member shall waive all rights to benefits from the Plan. All Member contributions shall be transferred to LACERS, including all Member contributions made to the Plan during periods of Plan membership plus any Member contributions made to LACERS that were previously provided by the City, the Department of Airports, or the Harbor Department to the Plan and the Member’s service shall be reestablished in LACERS. In addition to transferring all Member contributions, the Plan shall transfer to LACERS all other funds transferred to the Plan from LACERS on account of the former Plan Member, together with any interest and/or earnings attributable thereto. These funds shall be transferred from the appropriate Plan account (Member contributions, City regular contributions and investment income, LAFPP Health Care Coverage Account, and LAFPP Health Care Fund) and shall be returned to the appropriate LACERS fund (Member contributions, City regular contributions and investment income, LACERS Health Care Coverage Account, and LACERS Health Care Fund).

(i) Boards’ Administration of the Program. The Board shall administer the Program and adopt all the rules necessary to facilitate

LAFPP’s implementation of the Program. The Board shall determine any factual questions that may arise during LAFPP’s operation of the Program and shall take any action the Board deems appropriate. The Board’s determination shall be final. The LACERS Board shall adopt any rules necessary to support the Plan’s implementation of the Program and may work with the Board to determine a deadline for eligible LACERS Peace Officer Members to participate in the Program.

SECTION HISTORY

Added by Ord. No. 188,756, Eff. 11-16-25.

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

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

Board means the Board of Fire and Police Pension Commissioners.

LAAC means the Los Angeles Administrative Code. All statutory references contained in this section are to the LAAC unless otherwise indicated.

LACERS means the Los Angeles City Employees’ Retirement System.

LAFPP or Plan means the Fire and Police Pension Plan established in Article XI, Part 3 of the Los Angeles City Charter.

Qualifying Tier 6 Member means an Airport Peace Officer or Member of the Police Department who was an Active Employee on January 12, 2025, served as a sworn peace officer pursuant to California Penal Code Section 830.1, and previously purchased Tier 6 service or health benefits in connection with a transfer from LACERS to LAFPP Tier 6.

Tier 6 means the Tier of the Plan established in Charter Sections 1700 - 1726.

(b) Refund for Purchased Service. The Plan shall refund a Qualifying Tier 6 Member the exact amount of money paid to purchase any portion of City service or Tier 6 health benefits through the OPS Service Purchase Program or the Airport Peace Officer Service Purchase Program pursuant to Section 4.2214 or Section 4.2215 of the LAAC, whether purchased via trustee-to-trustee transfer, lump sum payment, or installment payment plan. A Qualifying Tier 6 Member shall not receive reimbursement for any LACERS member contributions that were used to purchase Tier 6 service or health benefits. A Qualifying Tier 6 Member who retires, dies, or terminates employment with the City, prior to receiving the refund, shall not be disqualified from receiving the refund.

(c) No Interest on Refunded Monies. The Plan shall not pay Qualifying Tier 6 Members any interest on the monies refunded to them. Any accrued regular interest credited to a Qualifying Tier 6 Member’s account with the Plan may not be refunded pursuant to this section and only may be refunded to the Qualifying Tier 6 Member pursuant to the terms and conditions of Charter Section 1714.

(d) Payment Source and Method. All payments issued pursuant to this subsection may be made prior to a Qualifying Tier 6 Member’s separation in a manner consistent with the Internal Revenue Code, either as a rollover or a post-tax payment. The Plan may look to the original payment method to determine the most appropriate manner to provide the refund, and the Board shall have authority to determine how any payment should be made. Any personal tax consequences or early withdrawal penalties shall be borne exclusively by the Qualifying Tier 6 Member.

(e) Cost Neutrality for Plan. The Department of Airports and the City shall be required to issue up-front payments to the Plan in an

amount that covers the full cost of refunds that will be issued to Qualifying Tier 6 Members. The amount of funds due and the timing of payment from the Department of Airports and the City shall be agreed upon by the Plan, the Department of Airports, and the City. The Plan shall not issue any refunds until after it has received payment in full. The City will cover all costs associated with the implementation of the refund process, following the review and approval of invoices, excluding LAFPP staff time, which shall be presented in a separate invoice and may be reimbursed at the City’s discretion.

(f) Termination of Installment Payment Plans. Effective January 12, 2025, any incomplete installment payment plans to purchase service through the OPS Service Purchase Program or the Airport Peace Officer Service Purchase Program shall be terminated. The Plan shall credit Qualifying Tier 6 Members with service for the entire period that was covered by the installment payment plan, as if the service purchase agreement was paid in full.

(g) Board’s Administration of Refunds. The Board shall administer the payment of refunds and adopt all the rules necessary to

implement this section. The Board shall determine any factual questions arising in connection with refunds, and shall take appropriate action. The Board’s determination shall be final.

SECTION HISTORY

Added by Ord. No. 188,756, Eff. 11-16-25.