Article XV — THE FIRE AND POLICE RETIREMENT SYSTEM

Section 1501. - RETIREMENT SYSTEM.

In order to continue in force, with such modifications as are set forth in this Article, provisions already existing for retirement and death benefits for members of the Fire and Police Departments of the City, the Pasadena Fire and Police Retirement System, hereinafter referred to as the Retirement System or the System, is hereby established. The legislative body of the city may exclude from membership in the Retirement System persons employed on a temporary or part-time basis, but for the purpose of Retirement System, persons serving a probationary period requisite to appointment to a regular position shall not be considered as on a temporary basis. The legislative body by a vote of not less than six of its members, is hereby empowered to enact any and all ordinances necessary to carry into effect the provisions of this Article provided that the said legislative body, through the Retirement Board, shall secure an actuarial report of the cost and effect of any proposed change in the benefits under the Retirement System, before the adoption of an ordinance to submit any proposed Charter amendment providing for such change.

(Sec. 1501 amended by vote of the people 11-3-1998.)

Section 1502. - RETIREMENT BOARD.

The Retirement System shall be managed by a Retirement Board hereby created, which shall be the successor to, and have the powers and duties of the Fire and Police Pension Board of the City of Pasadena, heretofore created and effective and

now by this Article superseded by the Retirement Board. The Retirement Board shall consist of one member of the legislative body of the city to be selected by and to serve at the pleasure of the said legislative body, two qualified electors of the City of Pasadena not connected with the government thereof, to be appointed by the legislative body, and two members elected under the supervision of the Retirement Board pursuant to the process set forth in the Trustee Election Policy, provided that such policy is approved pursuant to a resolution of the Retirement Board after a comment period of no less than 30 days to solicit input from Retirement System members.

The term of office of the four members, other than the member appointed from the legislative body of the City, shall be four years, one term expiring each year The members of the Retirement Board shall serve without compensation. The Retirement Board shall appoint a secretary to hold office at its pleasure, and when necessary employ a consulting actuary.

The Retirement Board shall have the sole power and authority under such general ordinances as may be adopted by the legislative body to hear and determine all facts pertaining to applications for and awards of any benefits under the Retirement System, or any matters pertaining to the administration thereof. Said Retirement Board shall have exclusive control of the administration and investment of such fund or funds as may be established and all investments shall be subject to the same terms, limitations and restrictions as are imposed by the Constitution and laws of the State upon the investment of the Public Employees' Retirement System Funds, as now enacted or hereafter amended.

Disbursement of retirement funds shall be made upon demands duly audited in the manner prescribed in this Charter for disbursement of public funds. The City Treasurer shall be the custodian of any such retirement funds, subject to the control of the Retirement Board as to the administration and investment of said funds.

(Sec. 1502 amended by vote of the people 11-5-2024: Sec. 1502 amended by vote of the people 11-7-2000.)

Section 1503. - ACTUARIAL TABLES, RATES AND VALUATIONS.

The mortality, service and other tables and rates of contributions for members as recommended from time to time by the actuary and the valuations determined by him from time to time and approved by the Retirement Board shall be final and conclusive and the contributions of the City and members to the Retirement System shall be based thereon. The same actuarial tables, rates, valuations and assumptions, including but not limited to assumptions concerning future investment return and salary inflation, shall be used in calculating member contributions pursuant to Section 1509.9 hereof as are used in calculating city contributions pursuant to Section 1509.92 hereof.

The actuary shall, in valuing the system for any purpose hereunder, reflect as an asset all moneys in the unallocated interest earnings in excess of 2 percent of total assets excluding unallocated interest earnings.

(Amended by vote of the people 11-4-1980, effective January 1, 1981; Sec. 1503 amended by vote of the people 4-17-73, effective July 1, 1973.)

Section 1504. - DEFINITIONS.

(a)

"Compensation", as distinguished from benefits under the Workmen's Compensation laws of the State of California, shall mean the remuneration prescribed by the City in cash, without deduction except for absence from duty, for time during which the member, as herein defined, receiving such remuneration is in the employ of the City. Compensation based on overtime put in by a member shall be excluded from all computations in which compensation is a factor.

(b)

"Service" shall mean time during which a member is employed by City for compensation excluding compensated time prior to becoming a member. Absence from duty without compensation due to any cause other than disability retirement as hereinafter provided, shall not be deemed service for the City. The legislative body, however, may fix the number of months per year to be required for a year of service and proportionate parts thereof, but not more than one year shall be credited for all service in any year.

(c)

"Compensation earnable" shall mean the compensation as determined by the Retirement Board, which would have been earned had the member received compensation without interruption throughout the period under consideration and at the rates attached to the ranks or position held by a member during such period. The computation for any absence of a member shall be based on the compensation earnable in the rank or position held by the member at the beginning of the absence and that for the time prior to becoming a member of the Fire or Police Department, shall be based on the compensation earnable by the member in the rank or position first held by the member in such Department.

(d)

"Retirement allowance", "death allowance", or "allowance" shall mean equal monthly payments for life unless a different term of payment is provided by the context, provided that any person to whom or on whose account benefits are payable, may elect to have the actuarial equivalent of the portion of such benefits which is not continued automatically to the member's surviving spouse or children, paid in different form, all subject to such restrictions, regulations and conditions as may be prescribed by the legislative body, but the action of the legislative body shall not prevent such benefits when elected by a member, from taking the form of cash refund annuities, as applied to the member's accumulated contributions only, or reversionary annuities, these terms to have the meaning commonly accepted in standard life insurance practice.

(e)

"Annuity" shall mean equal monthly payments for life, unless a different term of payment is provided by the context, derived from contributions made by the member.

(f)

"Final compensation" shall mean the highest average monthly compensation earnable by a member during any period of 12 consecutive months. In the calculation of "final compensation", periods of service separated by breaks in service may be aggregated to constitute a period of 12 consecutive months, if the periods of service are consecutive except for such breaks. If a break in service did not exceed 6 months in duration, time included in the break and compensation earnable during such time shall be included in the computation of final compensation. If a break in service exceeded 6 months in duration, only the first 6 months thereof and the compensation earnable during those 6 months shall be included in the computation of final compensation. For the purposes of this paragraph, absence from duty without compensation, because of disability retirement, is not a break in service.

(g)

"Employee" shall mean "officer or employee".

(h)

"Member" shall mean a member of the Retirement System unless clearly indicated otherwise.

(i)

"Interest" shall mean interest at the rate adopted by the Retirement Board.

(j)

The disability referred to herein as a basis for retirement shall mean disability of permanent duration, except disabilities determined by the Retirement Board, predicated upon best medical opinion, to be of an extended and indefinite duration.

(k)

For the purposes of the Retirement System, ages of members used in the calculation of allowances shall be taken to the next lower completed quarter year.

(l)

Any fire or police service performed outside the limits of the City by a member of the Retirement System under the orders of a superior officer of any such member, shall be considered as performed within the scope of a member's employment, and any disability or death incurred therein shall be covered under the provisions of the Retirement System.

(m)

For the purposes of the Retirement System, "member of the Fire Department" or "member of the Police Department", shall include any officer or employee of either of such departments whose principal duties are to prevent and extinguish fire or to preserve the peace, prevent injury to life and property, or to suppress crime or disorder, and shall exclude persons whose principal duties are those of civilian personnel such as, but not limited to, administrative analyst, training coordinator, technical specialist, housing inspector, telephone operator, clerk or stenographer, machinist or mechanic, or other similar duties clearly not falling within the foregoing regular fire or police duties, even though such persons may be called upon occasionally to perform such regular fire or police duties; provided that the foregoing exclusions shall not apply to members of the System who are reassigned to perform any of the excluded duties or transferred to another City department. After the effective date hereof, the maximum age at which any person, except a person employed as Chief of the Fire Department or Chief of the Police Department may become or reenter as a member of either the Fire or Police Department, shall be thirty- four years notwithstanding any of the other provisions of this Charter.

(n)

"Spouse" shall mean a male or female person legally married to a member and otherwise entitled to benefits as further provided herein.

(o)

"Handicapped dependent child" shall mean an unmarried natural child or an unmarried legally adopted child of a member who is physically or mentally handicapped as determined by standards established by ordinance, and who prior to reaching 21 years of age was so handicapped. Provided, that in order to be eligible for any benefits herein, an adopted handicapped dependent child must have been legally adopted by the member not less than 12 months preceding the retirement of the member or be legally adopted by the member at the time of his or her death occurring prior to retirement.

(Sec. 1504 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1505. - AGE EXCEPTION FOR TEMPORARY OR PART-TIME EMPLOYEES.

As an exception to the maximum age requirement of the preceding section, if the City Manager finds that persons under thirty-five years of age are not available for membership in either of said departments because of conditions brought about by war, he may employ a person over thirty-four years of age in either of said departments on a temporary or part-time basis and such person shall not be entitled to membership in the Retirement System. Authority given to the City Manager under this Section shall terminate after the expiration of one year after the end of the war on a date to be determined by the legislative body of the City.

Section 1506. - POST RETIREMENT SERVICE WITHOUT LOSS OF BENEFITS OR REINSTATEMENT.

A retired person may serve without reinstatement from retirement or loss or interruption of benefits provided by this system as follows:

(A)

As a member of the Fire and Police Retirement Board; or

(B)

Upon employment by the City to a position of a limited duration and requiring specialized skills or during an emergency to prevent stoppage of public business. Such an appointment shall not exceed a total of 960 hours in any calendar year; or

(C)

Upon appointment to a volunteer position as a member of a City commission, board or committee, or election to a City office.

(Sec. 1506 amended by vote of the people 11-7-2000.)

Section 1507. - REDUCTION OF BENEFITS.

That portion of any allowance or other benefit which is provided by contributions of the City, payable by the Retirement System because of the death or retirement of any member shall be reduced, in the manner fixed by the legislative body, by the amount of any pension, except social security payments or pensions paid on account of service in the military or naval forces of the United States, paid to or on account of the death of such member from funds of the United States, State of California or any political subdivision thereof, on account of, or on the basis of service credited under the Retirement System.

(Sec. 1507 amended by vote of the people 4-17-73, effective July 1, 1973.)

Section 1507.1. - CONFORMITY WITH THE UNITED STATES INTERNAL REVENUE CODE.

Notwithstanding any other provision of law, the benefits payable to any person who became a member prior to January 1, 1990 shall be subject to the greater of the following limitations as provided in Section 415(b)(10) of the Internal Revenue Code:

(a)

The limitations set forth in Section 415 of the Internal Revenue Code.

(b)

The accrued benefit of a member under this system, determined without regard to any amendment to the system made after October 14, 1987.

(c)

Notwithstanding any other provision of this Article, the benefits payable to any person who for the first time becomes a member on or after January 1, 1990 shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code.

(Sec. 1507.1 approved by vote of the people 3-5-91, effective June 5, 1991.)

Section 1508. - EXISTING ALLOWANCES.

(a)

Retirement or death allowances existing in favor of or on account of members of the Fire or Police Departments at the time of the effective date of this Article, shall be continued in force, including a remarried widow during any period of time when she is unmarried by reason of the death of, annulment or divorce from a succeeding husband, and shall be paid by the Retirement System. Allowances which were effective, because of a member's retirement or death before retirement, after November 5, 1968, and prior to the effective date hereof, shall be adjusted to the new basis of all benefits provided in this Article XV upon the election by the member or surviving wife to accept the modifications provided in this amendment.

(b)

Every retirement or death allowance presently payable pursuant to the 1935 System as heretofore modified for time, to or on account of a person who died as a member or retired on or after July 1, 1935, and prior to the effective date of this section, shall from and after the effective date hereof and upon the election by the member or his surviving wife within 180 days of the effective date of this amendment, be adjusted annually in accordance with Section 1509.8 hereof. Such annual adjustments shall not be retroactive but shall only be from and after the effective date hereof.

(c)

The provisions of these subparagraphs (a) and (b) do not apply to persons receiving benefits pursuant to Charter provisions in effect prior to July 1, 1935, nor to any widow of a member who had remarried on or before November 5, 1968, and whom the member's contributions had been paid.

Section 1509. - BENEFIT AND CONTRIBUTION REQUIREMENTS.

Persons who shall be members of the Fire and Police Retirement System on the effective date hereof shall remain members of the System upon such date and shall retain all rights under the System theretofore in effect. All persons who shall become members of the Fire or Police Departments after the effective date hereof, shall become members of the Retirement System forthwith and all members of the System who elect to take the new benefits and pay the contributions required from the effective date of the amendment shall be subject to the provisions of this Article XV, as modified by this amendment.

Section 1509.1. - SERVICE RETIREMENT; 15 YEARS SERVICE; AGE 50.

Members may retire upon or after attaining age 50 provided that a member shall at the effective date of election to retire have rendered at least 15 years of service.

Section 1509.12. - SERVICE RETIREMENT; 25 YEARS SERVICE.

Notwithstanding any other provision of this Charter, members may exercise their option to retire provided they shall at the effective date of election to retire have rendered at least 25 years of service.

Section 1509.13. - SERVICE RETIREMENT; COMPULSORY AT AGE 60.

(Repealed by vote of the people on 11-7-2000.)

Section 1509.14. - SERVICE RETIREMENT; DISMISSAL.

Dismissal of a member from service for any cause after the member has qualified as to age and service for service retirement shall not deprive such member of the right to retire for service.

Section 1509.15. - SERVICE RETIREMENT: RETIREMENT ALLOWANCE.

(A)

Members have the optional right to retire for service as set forth herein upon electing the right to so retire and upon retirement for service shall receive a service retirement allowance equal to 1/50 of the member's final compensation, times the member's number of years of service, times an actuarial equivalent at his or her actual retirement age as set forth in the following table, provided that in no event shall the initial service retirement allowance exceed seventy-five percent (75%) of the member's final compensation:

Age At Retirement Actuarial Equivalent

46 .8226

47 .8678

48 .9085

49 .9522

50 1.0000

51 and over 1.0516

(B)

The following table of age at retirement and actuarial equivalents shall be operative in whole or in part to the calculations set forth in subsection (A) of this Section when the cost to the City as contributions for current and past service, including benefits added by modification of the System from time to time, excluding contributions of City concerning charter provisions in effect prior to July 1, 1935, does not exceed 15.50 percent of members' compensation paid during the said year the following table becomes operative. If, as the result of a periodical actuarial valuation and investigation taking into consideration reductions in prior service obligations of City and the earnings of the Fund, the foregoing conditions are met, the City Council shall, by ordinance or resolution, establish the effective date of the new retirement rates, which date shall be within 90 days of the filing of the said actuarial report.

Said equivalents shall be applicable only to those members retiring after said valuation, investigation and determination by the said City Council and subject to the formula and limitations of subsection (A) of this Section:

Age At Retirement Actuarial Equivalent

52 1.1078

53 1.1692

54 1.2336

55 and over 1.3099

(Sec. 1509.15 amended by vote of the people 3-9-1993: Sec. 1509.15 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.3. - SERVICE CONNECTED DISABILITY RETIREMENT.

Members shall be retired for disability, regardless of age or amount of service, if incapacitated for the performance of duty as the result of injury or illness incurred in the performance of duty. A member may accept a transfer or reassignment to another City department. Such transfer or reassignment shall not prejudice the member's right to such disability retirement upon his subsequent separation from service with the City. In event of reassignment, the member shall retain the classification held at time of reassignment and shall receive the salary attached to that classification.

(Sec. 1509.3 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.31. - SERVICE CONNECTED DISABILITY RETIREMENT; ALLOWANCE.

Upon retirement for disability resulting from injury or illness incurred in performance of duty, members shall receive a disability retirement allowance of 50 percentum of the member's final compensation. Provided, if such member might otherwise elect to retire for service at a greater retirement allowance pursuant to the provisions hereof, and should said member elect to receive a disability allowance, then the disability retirement allowance payable to the member shall be in an amount not less than that sum the member would have received had an election been made to receive a retirement for service allowance. Such election shall be irrevocable by the member thereafter.

(Sec. 1509.31 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.32. - NON-SERVICE CONNECTED DISABILITY RETIREMENT.

Members shall be retired regardless of age but only after ten years of service to the city in either or both the Fire and Police Departments if incapacitated for the performance of duty as the result of an injury or illness not incurred in the performance of duty. A member may accept a transfer or reassignment to another City department. Such transfer or reassignment shall not prejudice the member's right to such disability retirement upon his subsequent separation from service with the City. In event of reassignment, the member shall retain the classification held at time of reassignment and shall receive the salary attached to that classification.

(Sec. 1509.32 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.33. - NON-SERVICE CONNECTED DISABILITY RETIREMENT; ALLOWANCE.

Upon retirement for disability resulting from injury or illness not incurred in the performance of duty, a member shall receive a disability retirement allowance of 1-½ percentum of the member's final compensation, multiplied by the number of years of service credited to the member if such allowance exceeds ¼ of the member's final compensation; otherwise, 1-½ percentum of the member's final compensation, multiplied by the number of years which would be creditable to the member were the member's service to continue until the member's attainment of the age of 55 years, but such allowance shall not exceed ¼ of the member's final compensation. If such member might otherwise elect to retire for service at a greater retirement allowance pursuant to the provisions hereof, he shall elect either the higher service retirement allowance or the disability retirement. Such election shall be irrevocable by the member thereafter.

(Sec. 1509.33 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.34. - DISABILITY; REINSTATEMENT.

If the disability for which a member was retired shall cease to the extent necessary to enable him to perform the duties of the rank or position he held at the time of retirement, the member's allowance shall cease at the option of the Retirement Board, and the member shall be reinstated at the rank and in a position of the same grade as the member occupied at the time of retirement. The member's individual account shall be credited with an amount which is the actuarial equivalent of the member's annuity at the time as based on a disabled life, but not exceed the amount of the member's accumulated contributions at the time of the member's retirement for disability. The amount so credited to the member's individual account shall be administered as contributions deducted from the member's compensation. Upon retirement at any time thereafter, the member shall receive service credit for the time during which the member was retired for disability, but the member shall not be required to make contributions for such time. If, following reinstatement, the member does not enter upon the duties of the member's position, and is not qualified for service retirement, the member shall be subject to the provisions of Section 1509.4 hereof. This Section shall not apply to any member who shall have been qualified for and who shall have elected previously service retirement rather than disability retirement.

Section 1509.4. - DEFERRED RETIREMENT.

Should any member be separated from service of the City through any cause other than death or retirement, then all of the member's contributions, with interest, shall be refunded to the member, provided that if such member is entitled to be credited with at least ten years of service, the member shall have the right to elect within ninety days after said termination of service, whether to allow the member's accumulated contributions to remain in the Retirement Fund. Such election shall become void upon such person's employment in a position requisite for membership in this System, and may be revoked by such person at any time prior thereto. Upon such revocation, the member's accumulated contributions shall be refunded to the member. Failure to make an election during the said 90-day period shall be deemed an irrevocable election to withdraw the member's accumulated contributions.

A member whose membership continues under this section is subject to the same age requirement as applies to other members for service retirement, but is not subject to a minimum service requirement. After the qualification of such member for retirement by reason of age for service retirement and only then, the member shall be entitled to receive a retirement allowance based upon the amount of the member's accumulated contributions and service standing to the member's credit at the time of retirement and on the employer contributions held for the member and calculated in the same manner as for other members.

Section 1509.41. - REENTRY; ADJUSTMENT OF CONTRIBUTION RATE.

If a member who has separated from service and who has elected to continue his membership pursuant to Section 1509.4 shall again become an employee of either the Fire Department or the Police Department, on reentry the member's rate of contributions for the future shall be adjusted by the actuary as necessary, by adding to his original age for contribution purposes the number of years said member was out of service in either the Fire Department or the Police Department.

Section 1509.5. - REFUND OF CONTRIBUTIONS.

Member's contributions made under Sections 1509.81 and 1509.9 hereof, shall be credited to the individual account of the member from whose compensation they were deducted, and no amendment to this Charter or repeal thereof shall prevent the payment to the member or member's beneficiary, of such contributions made prior to the effective date of such amendment or repeal, with interest, upon separation from service of the City, for reason by other than retirement, as provided herein, or the application of such contributions, with interest, toward providing the member's retirement or death allowance, as the case may be.

Section 1509.6. - RETIREMENT ALLOWANCE; DEPENDENT CONTINUATION OF AT DEATH OF MEMBER.

(a)

Upon the death of any member receiving a retirement allowance pursuant to the provisions of Sections 1509.1, 1509.12, 1509.15, 1509.33 or 1509.4 hereof, 60% of the member's retirement allowance shall, if not modified in accordance with one of the optional settlements now or hereafter specified by ordinance, be continued throughout the life of the surviving spouse.

(b)

Upon the death of any member receiving a service connected disability retirement allowance pursuant to the provisions of Sections 1509.3 and 1509.31 hereof, 100% of the member's retirement allowance shall be continued throughout the life of the surviving spouse.

(c)

If there be no surviving spouse, then the allowance which would otherwise be paid to the surviving spouse had he or she qualified and lived and not remarried, shall be paid to such child or children under said age of 21 years, collectively, to continue until every such child dies or attains age 21 or marries provided that no child shall receive any allowance after marrying or attaining the age of 21 years. No allowance shall be paid under this Section to a surviving spouse unless the surviving spouse was married to the member at least one year prior to said member's date of retirement.

(Sec. 1509.6 amended by vote of the people 3-4-03)

Section 1509.61. - REFUND OF DEPENDENT CONTRIBUTIONS; TO DEPENDENT.

If the payment of the allowance for surviving spouse or child or children of a member as set forth in Section 1509.6 hereof terminates by death of the spouse and because of the death, attainment of age 21 by or marriage of every child or children before the sum of the monthly payments made shall equal the sum of the member's dependent contributions, with interest thereon, as it was at the member's retirement, then an amount equal to the difference between said sums shall be paid in one amount to the surviving children of the deceased member, share and share alike.

(Sec. 1509.6 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.62. - REFUND OF DEPENDENT CONTRIBUTIONS; TO MEMBER.

If at the date of retirement for service or disability, service connected or non-service connected, a member has no spouse or child or children qualifying under this Article XV for dependent continuation allowance, the dependent contributions made by the member, with accumulated interest thereon, shall be paid to the member upon said date.

(Sec. 1509.62 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.7. - DEATH OF MEMBER PRIOR TO RETIREMENT; DEATH BENEFIT.

Upon the death of a member, before retirement, the Retirement System shall be liable for and shall pay a death benefit consisting of either or both of the following:

(a)

The member's accumulated contributions, with interest thereon, to be paid to the member's estate or to such person having an insurable interest in the life of the member if the member shall nominate by written designation duly executed and filed with the Retirement Board.

(b)

An amount of money equal to the member's compensation earnable during the 6 months immediately preceding the death of the member to be paid only to the member's surviving spouse, child or children or dependent father or mother.

The foregoing death benefits shall be paid in monthly installments in accordance with Sections 1509.71 and 1509.72 hereof, except where a lump sum is specified.

Section 1509.71. - SERVICE CONNECTED DEATH; PRIOR TO RETIREMENT.

If, in the opinion of the Retirement Board, the death of a member, prior to retirement be the result of injury or illness, incurred in the performance of duty, the Retirement System shall be liable for and shall pay as follows:

(a)

An amount sufficient, when added to the amounts provided in Section 1509.7 (a) and (b), but excluding the member's accumulated additional contributions, to provide when applied according to the tables and rates recommended by the actuary and approved by the Retirement Board, a monthly death benefit allowance equal to 1/2 of the member's final compensation, to be paid to the surviving spouse to whom said member was married at the time of sustaining the said injury or illness, to continue throughout his or her life or until he or she remarries; or if there be no surviving spouse, or if he or she dies or remarries before every unmarried child of such deceased member shall have attained the age of 21 years, then to such child or children under said age collectively, to continue until every such child dies, attains said age, or marries, or unless the subsequent marriage of the spouse is terminated by the death of, annulment or divorce from the succeeding husband or wife; provided that no child shall receive any allowance after attaining the age of 21 years or marriage. If payment of the allowance be stopped because of the death of the surviving spouse and attainment of the age of 21 years by or marriage of a child before the sum of the monthly payments shall equal the sum of the amounts provided in Section 1509.7 (a) and (b), then an amount equal to the difference between said sum shall be paid in one amount to the surviving children of the deceased member share and share alike.

The remarried spouse shall have the right to receive a continuation of his or her monthly allowance during any period of time in the future when he or she is unmarried by reason of the death of, annulment or divorce from a succeeding husband or wife. The spouse shall have no right to withdraw the said remaining balance, if any, of Section 1509.7 (a) and (b).

(Sec. 1509.71 amended by vote of the people 4-17-73, effective July 1, 1973.)

Section 1509.72. - NON-SERVICE CONNECTED DEATH; PRIOR TO RETIREMENT.

(a)

If, in the opinion of the Retirement Board, the death of a member, prior to retirement hereunder, be not the result of injury or illness incurred in the performance of duty, and if said member be qualified at the date of death for retirement for service, pursuant to this Article XV, then, the Retirement System shall be liable for and shall pay an amount sufficient, when added to the amounts provided in Section 1509.7 (a) and (b) hereof, to provide an allowance to be paid to the surviving spouse to whom said member was married at least one (1) year prior to his or her death, to be equal in amount to the allowance which would have been payable to the spouse if the said member had retired for service at the time of said member's death and had died instantly thereafter, and to continue throughout the spouse's life or until remarriage, or if there be no surviving spouse, or if he or she dies or remarries before every unmarried child of such deceased member shall have attained the age of 21 years, then to such child or children under said age collectively, to continue until every child dies, attains said age, or marries, or unless the subsequent marriage of the spouse is terminated by the death of, annulment or divorce from a succeeding husband or wife; provided that no child shall receive any allowance after attaining the age of 21 years or by marriage. If payment of the allowance be stopped because of death of the spouse and attainment of the age of 21 years or

by marriage of every child before the sum of the monthly payments shall equal the sum of the amounts provided in Section 1509.7 (a) and (b), then an amount equal to the difference between said sum shall be paid in one amount to the surviving children of the deceased member, share and share alike.

The remarried spouse shall have the right to receive a continuation of his or her monthly allowance during any period of time in the future when he or she is unmarried by reason of the death of, annulment or divorce from a succeeding husband or wife. The spouse shall have no right to withdraw the said remaining balance, if any, of Section 1509.7 (a) and (b).

(b)

If, in the opinion of the Retirement Board, the death of a member prior to retirement hereunder be not the result of injury or illness incurred in the performance of duty, and if said member has prior to death made an unrevoked election to continue membership in the System in accordance with Section 1509.4 hereof, the Retirement System shall be liable for and shall pay in a lump sum a death benefit according to and equal to Section 1509.7 (a).

(c)

If, in the opinion of the Retirement Board, the death of a member prior to retirement hereunder be not the result of injury or illness incurred in the performance of duty and said member was an employee at the date of death and if Sections 1509.71 and 1509.72 (a) or (b) hereof do not apply, the Retirement System shall be liable for and shall pay in a lump sum a death benefit consisting of the benefits referred to in Section 1509.7 (a) and (b).

(Sec. 1509.72 amended by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.73. - CONTINUATION OR EXTENSION OF BENEFITS TO HANDICAPPED DEPENDENT CHILDREN.

Notwithstanding anything to the contrary herein, benefits payable herein to an unmarried child under the age of 21 years shall not terminate or otherwise be withheld or denied regardless of age, if such person shall be a handicapped dependent child as defined in Section 1504. Should said child be determined to be a handicapped dependent child then benefits otherwise payable to an unmarried child under the age of 21 years shall continue or be initiated regardless of age, for so long as said child remains an unmarried handicapped dependent child. The City Council shall establish, by ordinance, standards and procedures for the determination and termination of eligibility for benefits payable herein to handicapped dependent children. The Retirement Board shall determine eligibility for benefits payable to a handicapped dependent child in accordance with the aforesaid ordinance standards and procedures.

(Sec. 1509.73 amended by vote of the people 3-9-1993; Sec. 1509.73 approved by vote of the people 4-17-1973, effective July 1, 1973.)

Section 1509.8. - COST OF LIVING INDEX.

The Retirement Board shall, before April 1970, and before April of each year thereafter, determine whether there has been an increase or decrease in the cost of living as provided by this Section. Every retirement allowance, death allowance or allowance payable monthly to or on account of any member who has elected to take the modified system, and who retires or dies or who has retired or died shall be increased or decreased as of July 1 of each year, commencing July 1, 1970, by a percentage of the total allowance then being received found by the Board to approximate the nearest one per cent of the percentage of annual increase or decrease in the cost of living as of January 1 of that year as shown by the then current Bureau of Labor Statistics Consumers Price Index for the Los Angeles-Long Beach Metropolitan Area.

Section 1509.81. - COST OF LIVING BENEFITS; FUNDING OF.

For the purpose of paying increased benefits according to Section 1509.8 hereof, the City and members shall, for the 10 consecutive years ending June 30, 1987, each contribute to the Retirement Fund an amount equal to 2.5% of the member's compensation and thereafter, the City and members shall each contribute to said Retirement Fund either an amount equal to 2.5% of the member's compensation or an amount equal to that percentage of the member's compensation as determined by and based upon an actuarial reserve basis pursuant to the then current actuarial studies at the discretion of the City

Council for such period of time as the said City Council shall determine. The required contributions of members shall be required as a deduction from the compensation of each member.

(Sec. 1509.81 amended by vote of the people 3-9-1993; Sec. 1509.81 amended by vote of the people 4-19-1977, effective July 1, 1977.)

Section 1509.9. - NORMAL EMPLOYEE CONTRIBUTIONS.

The normal rates of contributions by members to the Retirement System shall be such as will provide an average annuity at age 50 equal to 1/100 of the final compensation of members according to the tables adopted by the Retirement Board and modified from time to time pursuant to this Article, for each year of service rendered after entering the System, and shall be required as a deduction from the compensation of each member throughout the member's membership.

Section 1509.91. - COSTS OF SYSTEM.

All costs of administering the System shall be charged to the System and not to the City, including administration, investment costs, and actuarial reports.

Section 1509.92. - CITY CONTRIBUTIONS.

City contributions for service retirement benefits, including those for members retiring for disability at age 50 and over, shall be determined on the basis of a normal contribution rate which shall be computed as a level percentage of compensation which, when applied to the future compensation of the average new member entering the system, together with the required member contributions, will be sufficient to provide for the payment of all prospective benefits of such member. The portion of liability not provided by the normal contributions shall be amortized over a 30-year period ending June 30, 2007. This method is commonly referred to as the Entry Age Normal Cost Funding Method.

City contributions for death and disability, excluding retirement for disability age 50 and over, shall be equal to the amounts actually disbursed for such deaths or disabilities during the year not provided by member contributions.

(Sec. 1509.92 amended by vote of the people 4-19-1977, effective July 1, 1977.)

Section 1509.93. - PERIODIC ACTUARIAL INVESTIGATION.

Periodically, at periods fixed by the legislative body, the Retirement Board shall make an actuarial investigation into the mortality, service and other experience under the System, and, further, shall make an actuarial valuation of the assets and liabilities of the System, and upon the basis of such investigation and valuation as interpreted by the actuary, any necessary revision of the tables and rates being used under the System shall be made by the Retirement Board. No adjustment will be included in members' new rates of contribution resulting from said periodical investigation, Charter or ordinance amendments, or other cause, for time prior to the effective date of such new rates.

Section 1510. - MILITARY LEAVE OF ABSENCE, CONTRIBUTIONS AND CREDITS.

Any member on or who has been on military leave of absence from duty may make payments to the Retirement Fund of all or any part of the normal contributions which would have been deducted from the member's compensation had the member been on duty. The legislative body by ordinance shall determine how and when such payment shall be made. All such payments shall be matched by contributions of the City to the Retirement Fund, and such member shall receive credit for such payments and matching contributions of the City, and for the time during which a member is or has been on military leave of absence from duty.

Section 1511. - ELECTION TO JOIN PUBLIC EMPLOYEES' RETIREMENT SYSTEM.

The legislative body of the City shall have the power to authorize any member of the Retirement System to join the Public Employees' Retirement System, provided the membership of the Retirement System has first complied with any election requirements or other conditions prescribed by the Public Employees' Retirement System Act, as now enacted or hereafter amended.

Effective July 1, 1977, all new members of the Fire Department or Police Department shall become members of the said Public Employees' Retirement System as established by contract between the City and State. Every active member of the Fire and Police Retirement System shall become a member of said State System unless the member waives the said State System. A member waiving said State System shall remain a member of the Fire and Police Retirement System. City may withdraw from the System employer and employee contributions determined by the State actuary to be required to fund prior service benefits for those members transferring into the State System.

(Sec. 1511 amended by vote of the people 419-1977, effective July 1, 1977.)

Section 1512. - EFFECTIVE DATE.

This amended Article XV shall become effective and operative on the first day of July, 1969.