Los Angeles Municipal Code § 4.1002 Membership in Tier 1

(a) Membership Provision. Prior to July 1, 2013, every employee shall become a member of Tier 1 of the Retirement System on the first day of employment in a position with the City in which the employee is not excluded from membership pursuant to the provisions of Subsection (b) of this section. Beginning July 1, 2013, and ongoing, an employee shall only become a member of Tier 1 of the Retirement System on the first day of employment in a position with the City in which the employee is not excluded from membership pursuant to the provisions of Subsection (b) of this section if one of the following exceptions to Tier 2 membership applies:

(1) Former Tier 1 Member with Contributions on Deposit. A former Tier 1 member who returns to membership in the

Retirement System on or after July 1, 2013, shall only return to membership in Tier 1 if the former member has pre-July 1, 2013, contributions that remain on deposit with the Retirement Fund on the date the former member begins City service in a position in which the former member again becomes eligible for membership in the Retirement System. In the event a former member’s pre-July 1, 2013, contributions have been forfeited to the Retirement Fund, the former member shall return to membership in Tier 1, provided that the former member is relieved from such forfeiture and said funds are returned to the former member’s individual account. Former members may not qualify for the exception provided in this paragraph by making back contributions or re-deposits of contributions after re-entry into City service.

(2) Tier 1 Disability Retirees Returned to Employment. A Tier 1 disability retiree who is returned to City employment on or after July 1, 2013, as provided in Section 4.1008(e) or (f), shall return to membership in Tier 1.

(3) Reciprocal Retirement Benefit Arrangement. If an employee of the City’s Department of Water and Power (DWP)

participates in the reciprocal retirement benefit arrangement established in Section 4.1095, the employee shall become a member of Tier 1 upon becoming a member of the Retirement System, rather than Tier 2, provided that the employee’s employment with the

DWP commenced prior to January 1, 2014, and there is no break in service of more than seven (7) calendar days, as provided in Section 4.1095(b). This exception shall not apply if the member elects not to participate in the reciprocal retirement benefits arrangement, as provided in Section 4.1095(d).

A member or former member of LACERS who, on or after January 1, 2014, became ineligible to participate in LACERS by reason of transfer (including promotion, displacement, reclassification, or any other employment status change) to the Department of Water and Power, whose accumulated LACERS contributions remained on deposit in the Retirement Fund, and who is also a current, former, or retired member of the Water and Power Employees’ Retirement Plan (WPERP), shall be considered for retirement eligibility purposes only to be a member or former member of LACERS at the time such member or former member applies for retirement or deferred service retirement, as applicable, from LACERS, and shall be entitled to have the member’s or former member’s service and/or service credit with LACERS as provided in LACERS plan provisions governing Tier 1 or Tier 3, as applicable. As used herein, “service credit” shall have the meaning ascribed to it under Section VII.F of the plan provisions governing WPERP Tier 2.

(4) Limited Term Retirement Plan. An elected official who was a member of the Limited Term Retirement Plan (LTRP) on June

30, 2013, and subsequently becomes a member of the Retirement System shall become a member of Tier 1, rather than Tier 2, provided that the elected official’s service as an elected official was continuous from June 30, 2013, until the date the elected official became a member of the Retirement System and all of the funds in the elected official’s individual account with the LTRP are transferred to the elected official’s member account with the Retirement System pursuant to the provisions of Section 4.1017(c)(1).

A City employee shall cease to be a member upon termination of employment. A City employee shall also cease to be a member if a change in the employee’s employment results in an exclusion from membership pursuant to the provisions of Subsection (b) of this section or if the employee’s membership has been terminated pursuant to the provisions of either Subsection (c) or (d) of this section. A former member who re-enters City employment or whose City employment changes on or after July 1, 2013, shall only return to

membership in Tier 1 if the former member satisfies exception (1) to Tier 2 membership listed above.

(b) Exclusions from Membership. The following employees shall not be members of said Retirement System:

(1) Persons employed by the Board of Education or School District.

(2) Persons serving on any Board of Commissioners whose compensation consists of attendance fees per meeting attended.

(3) Members of the Fire and Police Pension Plans and members of the Water and Power Employees’ Retirement Plan; provided, however, that this exclusion shall not operate during any period of City service in which any such person is employed in any capacity which renders that person ineligible for current membership in said Plans. Nothing in this chapter shall be construed to prevent any person entitled to the payment of any benefit on account of service as a member of the Plans herein mentioned, from receiving payment on account of any benefit to which such person is entitled as a member of this Retirement System; provided, nevertheless, that no payment shall be made under provisions of this Chapter, for or on account of any period of service for which such person is entitled to receive or is receiving any benefit, under the Fire and Police Pension Plans or the Water and Power Employees’ Retirement Plan.

(4) Inmates of City institutions who are allowed compensation for such services as they are able to perform.

(5) Persons in City institutions principally for the purpose of receiving training but who receive compensation.

(6) Persons employed under contract for a definite period or for the performance of a particular special service.

(7) Persons employed only on call or for seasonal work.

(8) Any person employed on an intermittent, temporary, or part-time basis, unless the person is a member at the time the person

commences to serve on such a basis, or unless the appointing authority certifies to the Board of Administration that the person’s employment is regular and continuous and will probably extend for at least one (1) year and require service for at least one-half the time required of employees in the same group or class of service on a full-time basis.

(9) Any officer of the City elected for a fixed term who files a written declaration of the officer’s desire not to become a member of

the System within ninety (90) days next following the last day of the calendar month during which the first deduction on account of member contributions to the Retirement Fund is taken. When the declaration is filed, any contributions already taken attributable to the fixed term to which the officer was just elected, including interest thereon, shall be transferred to the officer’s account with the Limited Term Retirement Plan and said officer shall have no right to benefits from the System for any periods for which such contributions were taken. Provided that any officer who has filed such declaration may revoke it in writing and, upon filing the revocation with the Board of Administration, shall become a member of the System. In addition to persons elected for a fixed term as an officer of the City, any person appointed to fill a vacancy in an elected office for a fixed term, whether for the full remainder of such term or any portion thereof, may choose not to become a member of the System as provided in this paragraph and shall be considered an elected official of the City for purposes of participation in the Limited Term Retirement Plan.

Notwithstanding the foregoing, whenever any retired member of the System is elected as an officer of the City, the retired member shall not re-enter membership in the System, but shall instead become a participant in the Limited Term Retirement Plan, during which time the retired member shall continue to receive benefits as a retired member of the System.

(10) Any person undergoing training who will become a member of the Fire and Police Pension Plan upon completion of training.

(c) Transferred Employees Who Remain Members. Notwithstanding the provisions of Subsections (a) and (b) of this section, certain employees shall remain members of the Retirement System pursuant to the provisions of this subsection.

The Department of General Services is an Outside Agency as defined in Charter Section 1202(h). Members employed by the Department of General Services as sworn peace officer personnel whose positions may be transferred to the Los Angeles Police Department (LAPD) pursuant to a merger of police services authorized by the City Council shall, at the time of the transfer, become Transferring Employees as defined in Charter Section 1202(i) and for purposes of this subsection. The purpose of this subsection is to provide these Transferring Employees with the benefits provided by the Retirement System, in lieu of the benefits provided by the Fire and Police Pension Plan, pursuant to the authority provided in Charter Section 1216(b)(1).

Transferring Employees shall remain members of the Retirement System for so long as they continue in employment with the LAPD in any sworn position, except as otherwise provided in the following paragraph. In addition to continuing to be members during any period(s) of Academy training required in connection with positions held at the time of the transfer, Transferring Employees shall continue to be members of the Retirement System during any period(s) of academy training required to qualify for employment in any other sworn position with the LAPD, provided that they have not opted out of membership as provided in the following paragraph.

In the event that a Transferring Employee decides to transfer to a position with the LAPD that is not a sworn position transferred

from the Department of General Services, such Transferring Employee may elect to opt out of membership in the Retirement System. In order to opt out of membership in the Retirement System, a member shall file a written opt out election form with the Retirement System, which election shall become effective on the date the Transferring Employee changes classifications and becomes eligible for membership in the Fire and Police Pension Plan or the Pension Savings Plan established in Chapter 16, Division 4 of this Code, as applicable. The Retirement System shall establish the period during which an opt out election form must be filed, which period shall be at least seven (7) days in length and shall end not later than the day before the date the member is scheduled to change classifications; failure to file an opt out election form within the period established by the Retirement System shall constitute an

irrevocable election not to opt out of membership in the Retirement System. A member shall have seven (7) days from the date an opt out election form is filed to revoke the member’s election, after which the election shall be irrevocable. Once an election has become irrevocable, it shall not be revoked for any reason by anyone, including the Board, except in the following circumstance: If a Transferring Employee who has opted out and changed classifications should for any reason subsequently revert to a position that was transferred from the Department of General Services, the Transferring Employee shall be reinstated to membership in Tier 1 of the Retirement System. The provisions of this paragraph allowing a member, under specified conditions, to opt out of membership shall expire two (2) years from the effective date of this subsection, although a member who timely files an opt out form prior to expiration of the two-year period shall be allowed to opt out even if the member’s classification changes after expiration of the two-year period. The Board shall not have any authority to waive or extend any time limitation set forth in this paragraph.

Transferring Employees shall not become members of the Fire and Police Pension Plan, except as provided in the preceding paragraph. In the event that a Transferring Employee should terminate employment and thus cease to be a member of the Retirement System, the Transferring Employee’s status as a Transferring Employee shall terminate and shall not be reinstated in the event the Transferring Employee should again enter City employment.

(d) Employees Who May Terminate Membership. Any member whose employment status changes in such manner that the member would be ineligible for membership pursuant to the provisions of Subsection 4.1002(b)(8) if not already a member, may file a written application, together with proof of status change, with the Board of Administration requesting that the member’s membership in the Retirement System be terminated. Provided that the member provides sufficient proof of status change, the Retirement System shall approve the request. If such request is approved, the former member shall become a member of the Pension Savings Plan for Part-time, Seasonal and Temporary Employees established in Chapter 16 of this code, provided that the former member otherwise qualifies to participate in such plan. Unless federal law permits a withdrawal of contributions, the former member’s accumulated contributions shall remain in the fund so long as the former member continues to be employed, in any capacity, by the City. If a former member who has terminated membership on this basis should become a member of the Retirement System on or after July 1, 2013, the former member shall become a member of Tier 2 unless the former member’s Tier 1 contributions were not withdrawn and remained in the fund, in which case the former member shall return to membership in Tier 1.

(e) Airport Peace Officer Members. A person 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, is 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, including a person who will become a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall make an irrevocable election in writing whether to become a member of Tier 6 of the Los Angeles Fire and Police Pension plan (LAFPP) in lieu of membership in LACERS, on the terms and conditions set forth in (e)(1) below and further set forth in Section 4.2215 and Charter Section 1704, or to remain in LACERS.

(1) Election for Airport Peace Officers Appointed Prior to January 7, 2018.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require mandatory counseling for all eligible Members, promulgate election filing rules and procedures, and determine the election period(s) and deadlines.

(i) Mandatory Counseling Sessions. Every person appointed prior to January 7, 2018, and who, on that date, is

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, including a person who will become a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall be required to attend a mandatory counseling session administered by LACERS, in coordination with LAFPP, the Fire Department, and the Department of Airports, in order to make an informed and voluntary decision whether to transfer to LAFPP Tier 6 or remain a

LACERS Member. Such counseling sessions shall be held at dates and times established by LACERS and LAFPP. Such counseling sessions shall include, but shall not be limited to, information regarding the cost to the individual member of purchasing all of the member’s prior service, and a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Within fourteen (14) calendar days after attending one of the

mandatory counseling sessions described in Subsection (A)(i), every Member who is eligible for the election described herein, including a Member who will become a Member of Tier 1 of Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8), shall file a written election form with LACERS indicating whether the Member elects to transfer to LAFPP or remain in LACERS. Once filed, such election shall be irrevocable and the Board shall have no authority to revoke the election or waive the deadline. A Member’s failure to file an election form before January 7, 2018, shall be deemed an irrevocable election to remain in LACERS.

(iii) Irrevocable Agreement to Purchase All Prior Service at Full Actuarial Cost. A Member’s election to

transfer to LAFPP Tier 6 shall constitute an irrevocable decision not only to opt out of LACERS and transfer into

LAFPP Tier 6 but also an irrevocable agreement to purchase all of the Member’s prior service with LACERS from LAFPP at full actuarial cost pursuant the requirements set forth in Charter Section 1704 and Section 4.2215 of this Code. A Member shall enter into a service purchase agreement with LAFPP on the date upon which the Member files their election to transfer to LAFPP from LACERS as provided in Subparagraph (ii) above. Such purchase agreement shall be subject to the terms and conditions established by LAFPP and set forth in Charter Section 1704 and Section 4.2215 of this Code.

(B) Election and Service Purchase Shall Be Irrevocable. Consistent with Charter Section 1704(b)(3), a Member’s

election to remain in LACERS or transfer to LAFPP Tier 6, and to purchase all of the Member’s prior LACERS service from LAFPP at full actuarial cost, shall be irrevocable on the date upon which the member files their election form with LACERS. A Member’s failure to file an election form before January 7, 2018, shall be deemed an irrevocable election to remain in LACERS. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a Member’s election, refund a Member’s service purchase, or allow transfers after such deadline.

(C) Transfer Effective Date. A Member’s election to transfer to LAFPP Tier 6 shall be effective on January 7, 2018, or

upon graduation from the Fire Department drill tower, whichever is earlier. The election of a Member who becomes a Member of Tier 1 of the Retirement System on January 7, 2018, pursuant to Section 4.1080.2(b)(8) shall be effective immediately after such Member becomes a Tier 1 Member.

(D) Department of Airports Responsibility for Payment. The Department of Airports shall pay LACERS for all costs and

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

(2) Enhanced LACERS Benefits Effective January 7, 2018 for Airport Peace Officers Who Remain in LACERS; Eligibility

for Enhanced Benefits Contingent Upon Mandatory Additional Contribution. A person who elects to remain in LACERS rather than transfer to LAFPP shall remain a LACERS Tier 1 Member if subsequently appointed without a break in Department of Airports service to a sworn position in the Department of Airports or, consistent with Charter Section 1700(c)(5), the Fire Department, that would otherwise qualify the person for membership in LAFPP.

Effective January 7, 2018, such person shall be deemed an Airport Peace Officer Member, as defined in Section 4.1001(a), and shall

be responsible for making a lump sum mandatory additional contribution payment of $5,700 to LACERS, on a post-tax basis, by cashier’s check, before January 8, 2019, and prior to becoming eligible for any of the enhanced benefits provided to such Members in Sections 4.1007(a), 4.1008.1 and 4.1010.1. LACERS shall deposit these funds into each Airport Peace Officer Member’s individual account as provided in Charter Section 1162. Notwithstanding any provision of this Code to the contrary, no Airport Peace Officer Member shall be eligible for the enhanced benefits provided by Sections 4.1007(a) or 4.1008.1, nor shall benefits be paid to any survivor or beneficiary of the Member pursuant to Section 4.1010.1, until LACERS has received this $5,700 payment. If an Airport Peace Officer Member fails to complete this $5,700 payment before January 8, 2019, or prior to the Member’s retirement date, whichever is earlier, the Member shall forfeit eligibility for the enhanced benefits provided by Sections 4.1007(a), 4.1008.1 and 4.1010.1, and shall revert to status as a Tier 1 Member or former Tier 1 Member, as applicable. Before January 8, 2019, an Eligible Survivor may submit the lump sum $5,700 payment by cashier’s check, on a post-tax basis, to satisfy eligibility requirements to receive the enhanced benefits payable to the beneficiaries of an Airport Peace Officer Member.

Notwithstanding the foregoing, effective January 12, 2025, all actively employed Airport Peace Officer Members who previously

made the $5,700 lump sum after-tax payment described above and subsequently elect to transfer their LACERS contributions and membership to Tier 6, shall be entitled to a no-interest, tax-compliant refund of this lump sum payment, as provided in Subsection (h) below and consistent with any rules established by the LACERS Board of Administration.

(f) LACERS Peace Officer Member. A LACERS Peace Officer Member shall make an irrevocable election in writing whether to remain a LACERS Member or to become a Member of Tier 6 in lieu of membership in LACERS and to transfer LACERS Service to Tier 6, on the terms and conditions set forth in Subdivision (1) below and further set forth in Charter Section 1709 and Section 4.2216 of this Code.

(1) Election for LACERS Peace Officer Members Actively Employed as of January 12, 2025.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require counseling, promulgate election filing rules and procedures, and determine the election period and deadlines.

(i) Mandatory Counseling Sessions. Every LACERS Peace Officer Member shall attend a mandatory counseling

session administered by LACERS in coordination with LAFPP, the Police Department, the Department of Airports, the Harbor Department, or the Department of Recreation and Parks, in order to make an informed and voluntary decision whether to transfer to Tier 6 or to remain a LACERS Member. The counseling sessions shall be held at dates and times established by LACERS and LAFPP. The counseling sessions shall include, but shall not be limited to, information regarding a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Every LACERS Peace Officer Member shall file a written

election form with LACERS indicating whether the Member elects to transfer to Tier 6 or to remain a LACERS

Member by the election deadline, which shall be January 9, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissioners and the LACERS Board of Administration. A LACERS Peace Officer Member’s failure to file an election form before the election deadline shall be deemed an irrevocable election to remain a LACERS Member.

(iii) Irrevocable Agreement to Transfer All Prior Service. A LACERS Peace Officer Member electing to transfer

to Tier 6 must agree to transfer all prior LACERS Service to Tier 6 pursuant to the requirements set forth in Charter Section 1709 and Section 4.2216 of this Code, and to forfeit any and all benefits administered by LACERS. A

LACERS Peace Officer Member shall file their election form to transfer to Tier 6 from LACERS as provided in Subparagraph (ii) above.

(B) Election and Service Transfer Shall Be Irrevocable. Consistent with Charter Section 1709(b)(3), a LACERS Peace Officer Member’s election to remain a LACERS Member or transfer to Tier 6 shall be irrevocable after LACERS accepts the election form. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a LACERS Peace Officer Member’s election or allow transfers after the election deadline, except as provided by Section 4.2216.

(C) Transfer Effective Date. A LACERS Peace Officer Member’s election to transfer to Tier 6 shall be effective on

January 11, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissioners and the LACERS Board of Administration.

(D) Responsibility for Payment. To ensure cost neutrality for the Retirement System, the City, Department of Airports, and Harbor Department shall pay the full actuarial cost of the transfer of membership and LACERS Service and all associated costs and expenses as set forth in Charter Section 1709 and Section 4.2216 of this Code, as well as all costs and expenses incurred by the Retirement System in connection with administering the election process for LACERS Peace Officer Members belonging to their respective departments, excluding LACERS staff time dedicated to administering the election process, which

may be reimbursed at the City’s discretion. Mandatory reimbursement includes but is not limited to the following costs and expenses: the cost of any necessary reports prepared by the Retirement System’s actuary, the cost of programming any changes to the pension administration system, and any legal expenses incurred by the Retirement System. The City shall pay all costs and expenses associated with Members of the Police Department and Department of Recreation and Parks who elect to transfer. LACERS shall be responsible for preparing invoices for all costs and expenses incurred, and submitting them to the City, the Department of Airports, or the Harbor Department, for their review and approval, provided that any requests for reimbursement of LACERS staff time shall be submitted as a separate invoice.

(E) Board’s Administration of the Program. The LACERS Board of Administration shall administer the Program and

adopt all rules necessary to implement this section. The LACERS Board of Administration shall determine any factual questions arising in connection with the Program, and shall take all appropriate action. The Board’s determination shall be final and binding on all parties.

(g) LACERS Peace Officer Former Member. A LACERS Peace Officer Former Member shall make an irrevocable election in writing whether to transfer remaining LACERS Service to Tier 6, on the terms and conditions set forth in Subdivision (1) below and further set forth in Charter Section 1709 and Section 4.2216 of this Code.

(1) Transfer of Service for LACERS Peace Officer Former Members Actively Employed as of January 12, 2025.

(A) Election Requirements. LACERS shall have the authority to administer the election process consistent with the below requirements, including to create written election forms, require counseling, promulgate election filing rules and procedures, and determine the election period and deadlines.

(i) Mandatory Counseling Sessions. Every LACERS Peace Officer Former Member shall attend a mandatory

counseling session administered by LACERS, in coordination with LAFPP and the Police Department in order to make an informed and voluntary decision whether to transfer remaining LACERS Service to Tier 6. The counseling sessions shall be held at dates and times established by LACERS and LAFPP. The counseling sessions shall include, but shall not be limited to, information regarding a comparison of the benefits offered by each plan.

(ii) Irrevocable Election to Transfer or Remain. Every LACERS Peace Officer Former Member shall file a

written election form with LACERS indicating whether the Member elects to transfer remaining LACERS Service from

LACERS to Tier 6 by the election deadline, which shall be January 9, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissioners and the LACERS Board of Administration. A LACERS Peace Officer Former Member’s failure to file an election form with LACERS before the election deadline shall be deemed an irrevocable election to keep LACERS Service in LACERS.

(iii) Irrevocable Agreement to Transfer All Prior Service. A LACERS Peace Officer Former Member must elect

to transfer all prior LACERS Service to Tier 6, pursuant to the requirements set forth in Charter Section 1709 and

Section 4.2216 of this Code, and to forfeit any and all benefits administered by LACERS. A LACERS Peace Officer Former Member shall file their election form to transfer LACERS Service to Tier 6 from LACERS as provided in Subparagraph (ii) above.

(B) Election and Service Transfer Shall Be Irrevocable. Consistent with Charter Section 1709(b)(3), a LACERS Peace Officer Former Member’s election to transfer remaining LACERS Service to Tier 6 shall be irrevocable after LACERS accepts the election form. Neither the Board of Fire and Police Pension Commissioners nor the LACERS Board of Administration shall have any authority to revoke a LACERS Peace Officer Former Member’s election or to allow transfers after the election deadline, except as provided by Section 4.2216.

(C) Transfer Effective Date. A LACERS Peace Officer Former Member’s election to transfer LACERS Service to Tier 6 shall be effective on January 11, 2026, or an earlier date selected by the Board of Fire and Police Pension Commissions and the

LACERS Board of Administration.

(D) Responsibility for Payment. To ensure cost neutrality for the Retirement System, the City shall pay the full actuarial cost of the transfer of LACERS Service and all associated costs and expenses as set forth in Charter Section 1709 and Section 4.2216 of this Code, as well as all costs and expenses incurred by the Retirement System in connection with administering the

election process for LACERS Peace Officer Former Members, excluding LACERS staff time dedicated to administering the election process, which may be reimbursed at the City’s discretion. Mandatory reimbursement includes but is not limited to the following costs and expenses: the cost of any necessary reports prepared by the Retirement System’s actuary, the cost of programming any changes to the pension administration system, and any legal expenses incurred by the Retirement System. LACERS shall be responsible for preparing invoices for all costs and expenses incurred, and submitting them to the City for review and approval, provided that any requests for reimbursement of LACERS staff time shall be submitted as a separate invoice.

(E) Board’s Administration of the Program. The LACERS Board of Administration shall administer the Program and

adopt all rules necessary to implement this section. The LACERS Board of Administration shall determine any factual questions arising in connection with the Program, and shall take all appropriate action. The Board’s determination shall be final and binding on all parties.

(h) Refunds to Airport Peace Officer Members for LACERS Enhanced Benefits. LACERS shall refund to an Airport Peace Officer Member the exact amount of monies paid to receive Enhanced LACERS Benefits pursuant to Subsection (e) of this section, subject to the following terms and conditions.

(1) LACERS Peace Officer Program Participants. Only those Airport Peace Officer Members who elect to transfer to Tier 6 are

eligible to receive a refund of monies paid for Enhanced Benefits. Any Airport Peace Officer Member who remains a LACERS Member is not eligible to receive a refund of monies paid for LACERS Enhanced Benefits.

(2) No Interest. LACERS shall not pay an Airport Peace Officer Member any interest on the refunded monies. Any accrued regular interest credited to the Airport Peace Officer Member’s account with the Retirement System cannot be refunded pursuant to this section and only may be refunded to the Airport Peace Officer Member pursuant to the terms and conditions of Charter Section 1714 or Section 4.1004 of this Code.

(3) Payment Source and Method. Enhanced Benefits refunds will be paid in a manner that complies with the Internal Revenue

Code and any rules adopted by the LACERS Board of Administration to implement the refund process.

(4) No Fiscal Impact on LACERS. The Department of Airports shall issue up-front payments to the Retirement System in an

amount that covers the full cost of refunds for LACERS Enhanced Benefits. The amount of funds due and the timing of payment from the Department of Airports shall be agreed upon between the Retirement System, the Department of Airports, and the City. The Retirement System shall not issue any refunds until after it has received payment from the Department of Airports. At its discretion, the City may reimburse the Retirement System for LACERS staff time dedicated to processing refunds. LACERS shall be responsible for preparing invoices for all costs and expenses incurred and submitting them to the City for review and approval, provided that any requests for reimbursement of LACERS staff time shall be submitted as a separate invoice.

(5) Board’s Administration of Refunds. The LACERS Board of Administration shall administer the payment of refunds and

adopt all rules necessary to implement this section. The LACERS Board of Administration shall determine any factual questions arising in connection with refunds, and shall take all appropriate action. The Board’s determination shall be final and binding on all parties.

SECTION HISTORY

Added by Ord. No. 182,629, Eff. 7-25-13. Amended by: Subsec. (a)(3), Ord. No. 184,134, Eff. 1-22-16; Subsec. (a)(3) amended and Subsec. (e) added, Ord. No. 184,853, Eff. 4-6-17; Subsec. (e)(2) amended and Subsecs. (f), (g) and (h) added, Ord. No. 188,756, Eff. 11-16-25.

(a) Tier 2 Members. Effective February 21, 2016, all persons who entered LACERS membership between July 1, 2013 and February 21, 2016, as members of Tier 2 of the Retirement System shall be members of Tier 1 of the Retirement System and shall be subject to all the benefits and conditions of entitlement of that tier. The City shall contribute to the Retirement System the funds necessary, as determined by the actuary for the Retirement System, to make the Retirement Fund whole for any contributions that would have been made by the City and Tier 2 members had those members been members of Tier 1 from their respective initial dates of membership in LACERS. Such contributions will reflect the difference between the Tier 1 and Tier 2 normal cost rates calculated for the affected Tier 2 members adjusted with interest at the assumed earnings rate. Any such back contributions made by the City shall not be credited to any individual member’s account but shall be contributed solely for the purpose of making the Retirement Fund whole.

(b) Former Tier 2 Member with Contributions on Deposit. A former Tier 2 member who returns to membership in the Retirement System on or after February 21, 2016, shall return to membership in Tier 1 if the former Tier 2 member has pre-February 21, 2016, contributions that remain on deposit with the Retirement Fund on the date the former Tier 2 member begins City service in a position in which the former Tier 2 member again becomes eligible for membership in the Retirement System. In the event a former member’s pre-February 21, 2016, contributions have been forfeited to the Retirement Fund, the former member shall return to membership in Tier 1, provided that the former member is relieved from such forfeiture and said funds are returned to the former member’s individual account. Former members may not qualify to return to Tier 1 membership under this paragraph by making back contributions or redeposits of contributions after re-entry into City service. The City shall contribute the funds necessary, as determined by the actuary for the Retirement System, to make the Retirement Fund whole for any contributions that would have been made by the City and the former Tier 2 member had that former member been a member of Tier 1 from the former member’s initial date of membership in LACERS. Such contributions will reflect the difference between

the Tier 1 and Tier 2 normal cost rates calculated for the affected Tier 2 members adjusted with interest at the assumed earnings rate. Any such back contributions made by the City shall not be credited to the former member's account, but shall be contributed solely for the purpose of making the Retirement Fund whole. A former Tier 2 member who was employed for any period of time as a part-time employee and was certified as a member pursuant to Section 4.1052(b)(8), and who leaves their pre-February 21, 2016, contributions on deposit in the Retirement Fund, but does not return to membership in the Retirement System, shall be entitled to apply to retire as a former Tier 1 member pursuant to Section 4.1006 of this Code.

(c) Tier 2 Disability Retirees Returned to Employment. A Tier 2 disability retiree who is returned to City employment on or after

February 21, 2016, as provided in Section 4.1058(e) or (f), or Section 4.1008(e) or (f), shall return to membership in Tier 1.

(d) Service Purchase Elections of Tier 2 Members.

(1) Government Service Buy Back. Tier 2 members who elected to purchase Government Service Buy Back (GSB) prior to

February 21, 2016, shall have their service purchases re-calculated using the Tier 1 cost benefits methodology and conditions of entitlement. The Tier 1 GSB cost, including the member’s salary, contribution rate, and interest rate, shall be based on the date the member signed the member’s agreement. If payment has been received by the Retirement System and the Tier 1 purchase cost is less than the Tier 2 purchase cost, the Retirement System shall credit the member’s account with regular interest, as provided in Charter Section 1162(b), any excess funds collected in error. Excess funds originating from post-tax dollars may, at the member’s option, be refunded, applied to an additional service purchase, or transferred to a Larger Annuity Account. Excess funds originating from a pre- tax rollover of funds may, at the member’s option, be applied to an additional service purchase, or transferred to a Larger Annuity Account. If payment has been received by the Retirement System and the Tier 1 purchase cost is greater than the Tier 2 purchase cost, the member shall either receive prorated service based on the payment already received or enter into an agreement to purchase the difference to receive full service credit.

(2) Purchase of Back Contributions and Redeposit. Tier 2 members who elected to purchase Back Contributions or Redeposit

prior to February 21, 2016, shall have their service purchases re-calculated using the Tier 1 cost benefits methodology and conditions of entitlement. The Tier 1 Back Contributions and Redeposit cost calculations shall include the survivor contributions for the period of purchased service and regular interest, as provided in Charter Section 1162(b), based on the date the Member signed the Member’s agreement. If the Tier 1 purchase cost is greater than the Tier 2 purchase cost, the Member shall either receive prorated service based on the payment already received or enter into an agreement to purchase the difference to receive full service credit.

(e) Death Benefits for Survivors of Tier 2 Members. Survivors of Tier 2 members, who are receiving benefits that were calculated prior to February 21, 2016, shall have their survivor benefits re-calculated based on the Tier 1 benefits and conditions of entitlement.

SECTION HISTORY

Added by Ord. No. 184,134, Eff. 1-22-16.