FIRE AND POLICE PENSION PLANS- TIER 1
Sec. 1300. Tier 1 Members.
Sec. 1302. Definitions.
Sec. 1304. Service Pension.
Sec. 1306. Return or Recall to Active Duty.
Sec. 1308. Maximum Tier 1 Pension.
Sec. 1310. Disability Pension - Service Connected.
Sec. 1312. Disability Pension - Nonservice Connected.
Sec. 1314. Survivor Pension - Service Connected Member' s Death.
Sec. 1316. Survivor Pension - Nonservice Connected Member' s Death.
Sec. 1318. Election of Pension.
Sec. 1320. Tier 1 Pension Funds.
Sec. 1322. Actuarial Standards.
Sec. 1324. Member Contributions - Tier 1.
Sec. 1326. Overtime Work.
Sec. 1328. Cost of Living Adjustment.
Sec. 1330. Authority of Council to Establish Certain Benefits by Ordinance.
Sec. 1332. Compliance with Certain Internal Revenue Code Provisions.
FIRE AND POLICE PENSION PLANS- TIER 1 (formerly Article XVII)
Sec. 1300. Tier 1 Members. A Plan Member hired on or before January 28, 1967, shall be a Fire and Police Pension Plan - Tier 1 Member. Back to index
Sec. 1302. Definitions. In addition to the words and phrases defined in the Fire and Police Pension Plans General Provisions in Part 3 and for the purposes of this Tier 1, the following words and phrases shall have the meaning ascribed to them in this section, unless a different meaning is clearly indicated by the context.
(a) Member of Fire or Police Department. A "Member of the Fire Department" shall consist of all persons duly and regularly appointed in the Fire Department under civil service rules and regulations to perform the duties of a regular firefighter in the City of Los Angeles, under whatever designation they may be described in any salary or departmental ordinance providing compensation for the Fire Department; and a "Member of the Police Department" shall consist of all members of the Police Department appointed under civil service rules and regulations and sworn in, as provided by law, to perform the duties of a regular police officer of the City of Los Angeles, under whatever designation that they may be described in any salary or departmental ordinance providing compensation for the members of the Police Department. The provisions of Tier 1 shall apply to all members of the Fire and Police Departments as defined in this Tier 1, and to all members of these departments who have been granted pensions pursuant to this Tier 1.
(b) Eligible Widow . An "eligible widow" means the widow of a deceased member of the Fire Department or the Police Department who, as such, is entitled to a pension.
On or before December 5, 1996 any eligible widow, who remarried and thereby ceased to be an eligible widow, shall be reinstated as an eligible widow as of the latest of:
(1) the date upon which a judgment or decree did or shall become final dissolving the marriage upon any ground or declaring a void or voidable marriage to have been null and void or voided, if the date was or shall be within 5 years from the date of the marriage ceremony;
(2) the date upon which the marriage was or shall be dissolved by the death of the other party if the date was or shall be within 5 years from the date of the marriage ceremony; or
(3) the date upon which this section shall become effective, but if either of the events mentioned in (1) or (2) had occurred prior thereto, it had occurred within 5 years from the date of the marriage ceremony.
A reinstated eligible widow shall be entitled to the reinstatement of her pension effective as of the latest of such dates, whichever shall be applicable, but shall not be entitled to the payment of any pension for the period prior to such applicable date and subsequent to the date of the marriage ceremony. The pension paid to any other person during or for the period of the marriage or purported marriage of such reinstated eligible widow or during or for any period after the dissolution thereof shall cease when her pension shall be reinstated. However, should such reinstated eligible widow thereafter be a party to another marriage ceremony her pension as such shall cease and never again shall be reinstated regardless of whether such marriage ceremony shall result in a valid marriage or in a voidable or void marriage and whether or not the same legally shall be terminated. The pension which shall become payable to any reinstated eligible widow shall commence in the same monthly amount which then would have been payable if she never had ceased to be an eligible widow and thereafter it shall be adjusted as otherwise provided in Section 1328 relating to Cost of Living Adjustments.
The provisions of Sections 1314 and 1316 relating to Service and Nonservice Connected Survivor Pensions hereafter shall be construed and applied in accordance with the provisions of this subsection. Back to index
(c) Dependent Child . A "dependent child" means a person, but not including a person who is an illegitimate child of a deceased member of the Fire Department or the Police Department who had not been legitimated by such member, who is a legitimate child, a legitimated child or an adopted child of such member, and who had not been adopted by a person of the same gender as such member prior to the date of his death, who is not married and who, while under the age of 21 years, had become disabled, either prior or subsequent to the date of death of such member, from earning a livelihood for any cause or reason whatsoever, other than by reason of his own moral turpitude or as a result thereof. Such person shall be a dependent child only until he:
(1) shall be adopted by a person of the same gender as such member or shall marry, whichever shall be the earlier, regardless of his age at the time of the occurrence of either such event and whether or not he then is disabled from earning a livelihood;
(2) shall attain the age of 18 years if neither of the events mentioned in (1) had occurred prior thereto and if, at that time, he is not disabled from earning a livelihood; or
(3) shall cease to be disabled from earning a livelihood if none of the events mentioned in (1) or (2) had occurred prior thereto.
The Board shall have the power to determine whether or not a child of a deceased member is a Dependent Child and to determine, from time to time, the fact of whether or not a child who had been determined by it to be a Dependent Child continues to be a Dependent Child. The provisions of Section 1314 and 1316 relating to Service and Nonservice Connected Survivor Pensions hereafter shall be construed and applied in accordance with the provisions of this subsection.
(d) Assignment Pay . "Assignment Pay" means any additional gross monthly pay or 1/ 12 of any additional gross annual pay which, by reason of assignment to perform special duties or hazardous duties, in a higher class, position, grade, code or other title than the lowest thereof within the member' s rank, shall be provided therefore by ordinance, upon the conditions therein set forth, as of the date of the termination of such member' s status as a member of the Fire Department or the Police Department. Any such assignment pay shall not be considered as "the highest salary (exclusive of any amount payable by reason of assignment to special duty) attached to the rank of policeman or fireman" for the purposes of either Section 1312 or Section 1316 relating to Nonservice Connected Disability and Survivor Pensions. Any such assignment pay hereafter shall be included in "the average monthly rate of salary assigned to the ranks or positions held by such member" in the case of a member who shall retire upon a service pension or in the case of a member who shall die while eligible for a service pension if he had received the same immediately preceding the date of his retirement or death or upon the last day he had performed duties as a member of the Fire Department or the Police Department or, if he had not received the same at either such time but had received such pay at some time prior thereto, 10% of the assignment pay which he had received at the time of the termination of his last assignment to such duties for each year in the aggregate of his assignment to such duties not exceeding, however, 10 years in the aggregate. The provisions of Section 1304 relating to Service Pensions, Section 1306 (a)( 4)( M) relating to Return or Recall to Active Duty, and Section 1314 relating to Service Connected Survivor Pensions hereafter shall be construed and applied in accordance with the provisions of this subsection.
(e) Partial Year of Service . "Partial Year of Service" means any period of less than 12 months for which the member, if it had been a complete year, would have been entitled to credit toward retirement. In the case of any member who had become such on or subsequent to January 17, 1927, any such partial year of service shall be calculated from the end of the member' s last completed year of service to the end of the payroll period immediately prior to the date of his retirement and shall be counted as part of his years of service for his retirement upon a service pension hereafter granted or for a pension hereafter granted to his widow, minor child or children, dependent child or children or dependent parent or parents if he hereafter shall die while eligible for a service pension prior to having served 25 years in the aggregate. Any such partial year of service, in case of a member who shall have had less than 25 years of service, shall be credited in the same ratio of 2% of the average monthly rate of salary assigned to the ranks or positions held by him immediately preceding the date of his retirement or death as such partial year shall bear to a complete year and, in the case of a member who shall have had 25 years of service or more, shall be credited in the same ratio 1 2/ 3% of such average rate of salary as such partial year shall bear to a complete year. The provisions of Section 1304 relating to Service Pensions, Section 1306 (a)( 4)( M) relating to Return or Recall to Duty, and Section 1314 relating to Service Connected Survivor Pensions hereafter shall be construed and applied in accordance with the provisions of this section. Back to index
Sec. 1304. Service Pension. Any member of the Fire or Police Department who shall have served in such department for 20 years or more in the aggregate in any capacity or rank whatever, on his request, or by order of the Board, if it be deemed for the good of the department, shall be retired from further service in such department, and such member shall thereafter, during his lifetime, be paid in equal monthly installments a pension as follows:
(a) Twenty Years Service : For 20 years aggregate service, 40% of the average monthly rate of salary assigned to the ranks or positions held by the member during the three years immediately preceding the date of his retirement;
(b) Twenty up to Twenty- Five Years Service : And an additional 2% of the average rate of salary for each year over 20 and less than 25 years in the aggregate served by the member before retirement;
(c) Twenty- Five Years Service : For 25 years aggregate service, 50% of the average monthly rate of salary assigned to the ranks or positions held by the member during the three years immediately preceding the date of his retirement;
(d) Twenty- Five up to Thirty- Five Years Service : And an additional 1 2/ 3% of the average rate of salary for each year over 25 and less than 35 years in the aggregate served by the member before retirement;
(e) Thirty- Five or More Years Service : For 35 years or more aggregate service, two- thirds of the average monthly rate of salary assigned to the ranks or positions held by the member during the three years immediately preceding the date of his retirement.
(f) Hires Prior to January 17, 1927 with Thirty Years Service : Any member of the Fire or Police Department who shall have become a member of such department prior to January 17, 1927, who shall have served in such department for 30 years in the aggregate in any capacity or rank whatever, shall, on his request, or by order of the Board, if it be deemed for the good of the department, be retired from further service in such department, and he shall thereafter, during his lifetime, be paid in equal monthly installments a pension equal to two- thirds of the average monthly rate of salary assigned to the ranks or positions held by such member during the three years immediately preceding the date of his retirement.
(g) Hires Prior to January 17, 1927 with Twenty Years Service : After 20 years aggregate service, on request of a member who shall have become a member of such department prior to January 17, 1927, or by the Board for the good of the department, such member shall be retired and paid in equal monthly installments a limited pension as follows:
(1) Twenty Years Service . For 20 years aggregate service, 50% of the average monthly rate of salary assigned to the ranks or positions held by the member during the three years immediately preceding the date of his retirement;
(2) Twenty up to Thirty Years Service . An additional 1 2/ 3% of the average rate of salary for each year over 20 years and less than 30 years in the aggregate served by the member before retirement.
In computing the aggregate period of service of a member of the Fire or Police Department for the purposes of this section, there shall be included the period or periods of time, if any, while the member was on disability retirement pursuant to the provisions of Sections 1310 or 1312 relating to Service and Nonservice Connected Disability Pensions of this Charter.
The provisions of this section are subject to the further conditions set forth in Section 1308 relating to the Maximum Tier 1 Pensions of this Charter. Back to index
Sec. 1306. Return or Recall to Active Duty.
(a) Return to Active Duty.
(1) Conditions for Return to Active Duty . A retired member, whenever retired, may file, with the Chief of the department from which he retired, a written application to be returned to active duty therein only upon the conditions: (A) S service Retirement and Former Rank. That his original retirement had been pursuant to Section 1304 relating to Service Pensions 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 his original retirement had been no longer than three years and he shall be under the age of 55 years; and (C) Medical Exam. That he satisfactorily had passed a medical examination not more than 30 days prior to the effective date of his original retirement, but the Chief, if the effective date thereof had been prior to May 2, 1969, may waive the condition contained in this subsection .
(2) Subsequent Conditions for Return to Active Duty . The Chief may approve any application only upon the conditions that, after the filing date thereof, the retired member: (A) Medical Exam. Had passed a medical examination from which it had been determined that he would be capable of performing the duties which would be assigned to him if he were to be returned to active duty, if the determination had been approved or concurred in by the Board; and (B) Certification. Had certified, in writing, that he had read and understands the provisions of this section and Section 1404 relating to Requests of Reactivated Members of Tier 1 to Become Tier 2 System Member.
(3) Return to Rank at Original Retirement . The Chief, if he 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 him at the effective date of his original retirement.
(4) Status of a Reactivated Member of Tier 1 . A retired member, if he were to be returned to active duty, thereafter shall be known as a "reactivated member" and, as such:
(A) Privilege, Not An Appointment . His return to active duty shall be a privilege only and not an appointment as a Department Member as provided by Section 1400 relating to Plan Members for the purposes of Tier 2, he shall be on probation for one year from and after the effective date thereof regardless of any other provision of law contained in the Charter or otherwise, and the Chief may terminate his service at any time during such year;
(B) Original Pension Terminated. His pension, granted by reason of his original retirement, shall be terminated by the Board as of the effective date of his return to active duty;
(C) Method of Calculating Years of Service. His service after the effective date of his return to active duty, for the purposes of this Tier 1 and regardless of any other provision of law contained in the Charter or otherwise, shall consist of only (i) the days for which he shall be paid for performing his assigned duties; (ii) his days of vacation with pay; and (iii) his regular days off duty with pay, and one year of such service shall consist of a total of 365 such days;
(D) Years of Service for Purposes of Civil Service and Related Purposes. His aggregate years of service, for the purposes of his eligibility to advancement in accordance with civil service rules and regulations and the payment of his salary and longevity pay or merit pay, shall consist of only his years of service prior to the effective date of his original retirement and his service after the effective date of his return to active duty;
(E) Years of Service for Purposes of Tier 1. His aggregate years of service, for the purposes of this Tier 1 and regardless of any other provision of law contained in the Charter or otherwise, shall consist of only his years of service prior to the effective date of his original retirement and his service subsequent to the effective date of his return to active duty. Such service shall be for not less than one year as defined in subsection (a)( 4)( C) of this section;
(F) Salary, Longevity, & Merit Pay. He shall be assumed to have a satisfactory standard of service and shall be paid the salary provided for his rank and the longevity pay or merit pay provided for his aggregate years of service as defined in subsection (a)( 4)( E) of this section, subject, however, to all provisions applicable to the termination of payment of longevity pay or merit pay;
(G) Payroll Deduction. He shall have deductions made for pension purposes, pursuant to Section 1324 relating to Member Contributions - Tier 1, from his salary and longevity pay or merit pay; Back to index
(H) Prohibition of Nonservice Connected Pensions. He never shall be entitled to a subsequent retirement pursuant to Section 1312 relating to Nonservice Connected Disability Pensions and his widow, his minor child or children (hereafter referred to in this subsection as "his child") or his dependent parent or parents (hereafter referred to in this subsection as "his parent") never shall be granted a pension pursuant to Section 1316 relating to Nonservice Connected Survivor Pensions;
(I) Allowance of Service Connected Pensions. He shall be entitled to a subsequent retirement pursuant to Section 1310 relating to Service Connected Disability Pensions if he were to become eligible therefore and upon his death, if he theretofore had had such a subsequent retirement, a pension shall be granted pursuant to applicable provisions of Section 1314 relating to Service Connected Survivor Pensions to his widow, (if she shall have been married to him for at least one year prior to the effective date of his original retirement or for at least one year after the effective date of his return to active duty and prior to the effective date of his subsequent retirement), or to his child or to his parent;
(J) Allowance of Service Related Survivor Pension. His widow or his child or his parent, if he were to die while a reactivated member from any cause arising out of or from the performance of his duties, shall be granted a pension pursuant to applicable provisions of Section 1314 relating to Service Connected Survivor Pensions;
(K) Allowance of Survivor Pension Upon Death of Re- activated Member. His widow, (if she shall have been married to him for at least one year prior to the effective date of his original retirement or for at least one year after the effective date of his return to active duty and prior to the date of his death), or his child or his parent, if he were to die while a reactivated member from any cause other than a cause arising out of or from the performance of his duties, shall be granted the same pension she would have received pursuant to applicable provisions of Section 1314 relating to Service Connected Survivor Pensions;
(L) Reinstatement of Original Pension. His pension, granted by reason of his original retirement, if his service were to be terminated during the one year from and after the effective date of his return to active duty for any reason other than by reason of his subsequent retirement pursuant to Section 1310 relating to Service Connected Disability Pensions, shall be reinstated by the Board, as of the effective date of the termination of his service, at the amount of pension which then would have been payable to him if he had not returned to active duty and, upon his death, the pension which shall be granted pursuant to Section 1314 relating to Service Connected Survivor Pensions to his widow (if she shall have been married to him for at least one year prior to the effective date of his original retirement), or to his child or to his parent, shall be calculated upon the salary upon which his pension had been calculated as of the effective date of his original retirement; and
(M) Retirement as Reactivated Member. He shall be entitled to a subsequent retirement pursuant to Section 1304 relating to Service Pensions, based upon his aggregate years of service as defined in subsection (a)( 4)( E) and his pension shall be calculated upon a sum equal to the salary upon which his pension had been calculated as of the effective date of his original retirement (hereinafter referred to as "such salary"), plus a percentage of the difference between such salary and his salary as of the effective date of his subsequent retirement, for his years of service subsequent to the effective date of his return to active duty as defined in subsection (a)( 4)( C), so that such sum shall be: (i) such salary plus 20% of such difference for one such year, (ii) such salary plus 40% of such difference for two such years, (iii) such salary plus 60% of such difference for three such years, (iv) such salary plus 80% of such difference for four such years and (v) such salary plus 100% of such difference for five or more such years or the equivalent of his salary as of the effective date of his subsequent retirement and upon his death, if he previously had had such a subsequent retirement, the pension which shall be granted pursuant to Section 1314 relating to Service Connected Survivor Pensions to his widow, (if she shall have been married to him for at least one year prior to the effective date of his original retirement or for at least one year after the effective date of his return to active duty and prior to the effective date of his subsequent retirement), or to his child or to his parent, shall be calculated upon the sum upon which his pension had been calculated as of the effective date of his subsequent retirement.
(5) Applicability of Tiers 1 & 2 to Reactivated Members The provisions of this Tier 1 and of Section 1400 of Tier 2 hereafter shall be construed and applied, as to a reactivated member, his widow, his child and his parent, in accordance with respectively applicable provisions of subsection (a)( 4) of this section.
(b) Recall to Active Duty .
(1) Rules for Recall to Active Duty. The Chief shall promulgate rules and set standards as he may deem to be necessary or desirable with respect to recalling a retired member to active duty.
(2) Conditions for Recall to Active Duty. A retired member, whenever retired, shall be eligible to be recalled to active duty in the department from which he retired only upon the conditions: (A) Service Retirement and Former Rank. That his original retirement has been pursuant to Section 1304 relating to Service Pensions and had been from the Fire Department while holding a rank lower than Fire Chief or from the Police Department while holding a rank lower than Chief of Police; (B) Certification. That he had certified, in writing, that he had read and understands the provisions of this section; and (C) Consent to Recall. That he voluntarily had consented to be recalled to active duty. Back to index
(3) Limitations on Recall . The Chief may recall a retired member to active duty: (A) Rank at Retirement. Only in or to a vacant position in the rank held by him at the effective date of his original retirement; (B) 90 day Limit. For not to exceed 90 days in any one calendar year; and (C) Status Defined in this Section. The salary, benefits and other terms and conditions of employment of any recalled member shall be as provided under subsections (b)( 5) and (b)( 6) of this section.
(4) No Recall of Police Exceeding 12 Months Without Loss of Pension . Recall of retired members of the Police Department may be approved for a period in excess of 90 days but not for more than 12 consecutive months, without loss of pension, in which case the salary, benefits and other terms and conditions of employment for recalled police officers shall be established by ordinance.
(5) Status of Recalled Member. A retired member, if he were to be recalled to active duty, thereafter shall be known as a "recalled member" and, as such: (A) Privilege Only. His recall to active duty shall be a privilege only and the Chief may terminate his service at any time; (B) Existing Pension Continues. His pension shall be paid during the period of his recall to active duty;
(C) Salary Amount. He shall be paid the salary provided for his rank and the longevity pay or merit pay provided for his aggregate years of service prior to the effective date of his original retirement; (D) No Contributions Deducted. He shall have no deductions made for pension purposes, pursuant to Section 1324 relating to Member Contributions - Tier 1, from his salary and longevity pay or merit pay; and (E) No Survivor Pension for Recalled Service. He, his widow, his minor child or children or his dependent parent or parents never shall be entitled to any pension benefits provided by Tier 1 or Tier 2 by reason of his service as a recalled member.
(6) Tier 1 Construed with Recalled Members Rules. The provisions of this Tier 1 hereafter shall be construed and applied, as to a recalled member, his widow, his minor child or children and his dependent parent or parents, in accordance with applicable provisions of subsection (b)( 5) of this section. Back to index
Sec. 1308. Maximum Tier 1 Pension. The limitations of the amount of maximum pension payable pursuant to Section 1304 relating to Service Pensions of Tier 1 shall apply uniformly to all members of the Fire and Police Departments. Back to index
Sec. 1310. Disability Pension - Service Connected.
(a) Service Connected Disability Pension . Whenever any member of the Fire or Police Department shall become so physically or mentally disabled by reason of bodily injuries received in, or by reason of sickness caused by the discharge of his duties in such department as to necessitate his retirement from active service, the Board shall order and direct that the member be retired from further service in such department; and thereafter the member so retired shall, during his lifetime, be paid a pension in an amount to be determined by the Board. The pension shall be equal to not less than 50%, nor more than 90%, of the salary attached to the rank or position held by him in such department at the date of the retirement order. The pension shall be paid in equal monthly installments.
(b) Termination of Disability Pension . Any pension granted to any member of the Fire or Police Department for disability or sickness, as provided for in this section, shall cease when the disability or sickness ceases and such member shall, subject to civil service and other provisions of the Charter governing the appointment of city employees, have been restored to active duty in such department of which such person was a member at the time of disability retirement to the same rank or position he previously held.
(c) Board Investigation and Findings . The Board of Pension Commissioners shall have the power to hear and determine all matters pertaining to the granting and termination of any pension award as provided for in this section. The Board shall make its findings in writing, based upon the report of at least three regularly licensed, practicing physicians, and such other evidence concerning the disability as it may have before it. The Board shall determine the degree of disability and the determination shall govern the amount of pension to be awarded to the disabled member.
(d) Petition for Reconsideration . Upon the written request of any such retired member, or upon its own motion, the Board shall have the power, at any time prior to the restoration of the retired member to active service, to consider new evidence pertaining to the case of the retired member and to increase or decrease the amount of pension award to be thereafter paid. Back to index
Sec. 1312. Disability Pension - Nonservice Connected.
(a) Nonservice Connected Disability Pension . Any member of the Fire or Police Department who shall have served in such department for five years or more in the aggregate from the date of his last appointment to such department and who has become physically or mentally incapacitated by reason of injuries or sickness other than injuries received or sickness caused by the discharge of his duties in such department, and who is incapable as a result thereof from performing his duties, shall be retired upon written application of such person or of any person acting in his behalf or of the head of the department in which the member is employed.
(b) Board Investigation and Pension Amount . The Board shall cause the member to be examined by and a written report thereon rendered by three regularly licensed, practicing physicians selected by the Board, and shall hear such other evidence relating to such disability of such member as may be presented to the Board. If, upon considering the report of such physicians and such other evidence as shall have been presented to it, the Board finds that the member has become physically or mentally incapacitated by reason of the injuries or sickness other than injuries received or sickness caused by the discharge of the duties of the member in such department, and he is incapable as a result thereof of performing his duties, and if the Board finds that such disability was not due to or caused by the moral turpitude of the member, he shall be retired from further service in such department, and thereafter the member so retired shall, during his lifetime, be paid a pension in an amount equal to 40% of the highest salary (exclusive of any amount payable by reason of assignment to special duty) attached to the rank of policeman or fireman at the date of the retirement order. The pension shall be paid in equal monthly installments.
(c) Termination of Disability Pension . Any pension granted to any member of the Fire or Police Department for disability or sickness as provided in this section shall cease when the disability or sickness ceases, and such member shall, subject to civil service and other provisions of the Charter governing the appointment of city employees, have been restored to active duty in such department of which such person was a member at the time of disability retirement to the same rank or position he previously held. The Board of Pension Commissioners shall have the power to hear and determine all matters pertaining to the granting and termination of any pension award as provided for in this section.
(d) Applicability of Section . This section shall be applicable only where a member is not entitled to a disability pension under the provisions of Section 1310 relating to Service Connected Disability Pensions. Back to index
Sec. 1314. Survivor Pension - Service Connected Member' s Death.
(a) Service Connected Survivor Pension . Whenever any member of the Fire or Police Department shall die as a result of any injury received during the performance of his duty, or from sickness caused by the discharge of such duty, or after retirement, or while eligible to retire from such department on account of years of service, then an annual pension shall be paid in equal monthly installments to his widow, or child or children, or dependent parent or parents, in an amount equal to one- half of the average monthly rate of salary assigned to the ranks or positions held by such member during the three years immediately preceding the time of his death or the date of his retirement from active duty in such department.
(b) Persons Entitled to Pension . The pension described in subsection (a) shall be paid to the widow during her lifetime, and thereafter the same pension amount shall be paid in equal monthly installments, to the legally appointed guardian of the child or children of such deceased member until such child or children shall have attained the age of 18 years, or to his child or children should there be no widow until such child or children shall have attained the age of 18 years, or to his dependent parent or parents during their lifetime or during such dependence, should there be no widow or child.
(c) Additional Amounts for Children . During the lifetime of such widow an additional amount shall be paid to such widow for each child during the lifetime of such child, or until such child shall have married or reached the age of 18 years, as follows:
(1) For one child: twenty- five percent (25%) of the pension in subsection (a);
(2) For two children: forty percent (40%) of such pension; and
(3) For three or more children: fifty percent (50%) of such pension.
(d) Pension Entitlement or Termination . No widow of a pensioner shall be entitled to a pension unless she shall have been married to such deceased pensioner at least one year prior to the date of his retirement. No widow of a member of the Fire or Police Department eligible for retirement from such department, who dies from causes other than those arising out of or from the performance of his duties, shall be entitled to a pension unless she shall have been married to such deceased member for at least one year prior to the date of his death. If such child or children shall marry, then the pension paid to the person so marrying shall cease. Should the dependency of such parent or parents terminate, then the pension paid to such dependent parent or parents shall cease.
(e) Limitation on Certain Pensions . The pension payable hereunder to the widow, child or children or dependent parent or parents of a member of the Fire or Police Department who became a member of such department on or after January 17, 1927, who, after retirement on account of years of service, but having served less than 25 years in the aggregate prior to the time of such retirement, or who, while eligible to retire from such department on account of years of service, but prior to having served 25 years in the aggregate shall die from causes other than those arising out of or from the performance of his duties, shall not exceed the amount of the pension which such retired member was receiving at the time of his death or which such member eligible for retirement would have been eligible to receive at the date of his death under the provisions of Sections 1304 relating to Service Pensions and 1308 relating to Maximum Tier 1 Pensions of this Charter, and the additional amount payable to such widow on account of children pursuant to the provisions of this section shall be the applicable percentage hereinabove set forth of a pension in such maximum amount. Back to index
Sec. 1316. Survivor Pension - Nonservice Connected Member' s Death.
(a) Nonservice Connected Survivor Pension . Whenever any member of the Fire or Police Department (other than a member retired on account of years of service or a member eligible to retire on account of years of service, but including a member retired on account of disability pursuant to the provisions of Section 1312 of this Tier 1) who shall have served in such department for five years or more in the aggregate from the date of his last appointment to such department, shall die from causes other than those arising out of or from the performance of his duties, then an annual pension shall be paid in equal monthly installments to his widow, or child or children, or dependent parent or parents, in an amount equal to 40% of the highest salary (exclusive of any amount payable by reason of assignment to special duty) attached to the rank of police officer or fire fighter at the date of such member' s death.
(b) Persons Entitled to Pension . The pension described in subsection (a) shall be paid to the widow during her lifetime and thereafter a pension in the same amount shall be paid in equal monthly installments to the legally appointed guardian of the child or children of such deceased member until such child or children shall have attained the age of 18 years, or to his child or children should there be no widow until such child or children shall have attained the age of 18 years, or to his dependent parent or parents during their lifetime or during such dependence, should there be no widow or child. During the lifetime of such widow an additional amount shall be paid to such widow for each child during the lifetime of such child, or until such child shall have married or reached the age of 18 years, as follows:
(1) For one child: 25% of the pension allowed in subsection (a);
(2) For two children: 40% of such pension; and
(3) For three or more children: 50% of such pension.
(c) Limitation on Widow Pensions . No widow shall be entitled to a pension pursuant to the provisions of this section unless she shall have been married to such deceased member for at least one year prior to the date of his death. No widow of a member who shall die while on disability retirement pursuant to the provisions of Section 1312 relating to Nonservice Connected Disability Pensions of the Charter shall be entitled to a pension pursuant to the provisions of this section unless she shall have been married to such deceased member for at least one year prior to the date of his retirement. Back to index
Sec. 1318. Election of Pension.
(a) Election . Upon the death of a retired member retired pursuant to Section 1312 relating to Nonservice Connected Disability Pensions, any person entitled to a pension pursuant to Section 1316 relating to Nonservice Connected Survivor Pensions must make and file with the Board a written election to have the amount thereof calculated either upon the salary specified in Section 1316 relating to Nonservice Connected Survivor Pensions or upon the salary specified in Section 1312 relating to Nonservice Connected Disability Pensions and the Board shall grant the pension in accordance therewith.
(b) Election for Incompetent Person or Minor Child . Any such election, on behalf of any incompetent person or on behalf of a minor child of such member, must be made by the guardian of his estate and shall be either authorized or approved by a court order, a certified copy of which shall be filed with the Board. Section 1316 relating to Nonservice Connected Survivor Pensions hereafter shall be construed and applied in accordance with this section Back to index
Sec. 1320. Tier 1 Pension Funds.
(a) Creation of Funds . Two entirely separate and distinct funds hereby are created and established for the payment of pension benefits pursuant to this Tier 1 and certain other benefits as may be authorized from time to time pursuant to the enabling provisions of Section 1330 of Tier 1, one of which shall be known as the "Fire and Police Tier 1 Service Pension Fund" and the other of which shall be known as the "Fire and Police Tier 1 General Pension Fund."
(b) Fire and Police Tier 1 Service Pension Fund . The Fire and Police Tier 1 Service Pension Fund shall consist of:
(1) contributions made, pursuant to Section 1324 concerning Member Contributions, from the salaries of members of the Fire Department and of the Police Department; and
(2) all interest, earnings and profits resulting from investments of such moneys.
(c) Fire and Police Tier 1 General Pension Fund . The Fire and Police Tier 1 General Pension Fund shall consist of:
(1) all moneys appropriated to the fund by the Council;
(2) all interest, earnings and profits resulting from investments of fund moneys; and
(3) all moneys transferred from the Fire and Police Tier 2 General Pension Fund created and established by Tier 2 of this Article.
(d) Use of Funds . The moneys in the Fire and Police Tier 1 Service Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of service pensions granted pursuant to Section 1304 concerning Service Pensions. The moneys in the Fire and Police Tier 1 General Pension Fund shall be used, other than for the investment thereof and except as provided in subsection (e), exclusively for the payment of all pensions other than service pensions and such other benefits as may be provided by ordinance adopted pursuant to the provisions of Section 1330 of this Tier 1.
(e) Transfer to Service Pension Fund . In the event that the moneys in the Fire and Police Tier 1 Service Pension Fund should be insufficient, at any time, to pay all service pensions, then the Board shall have the power and authority to cause the Controller of the City to transfer to the fund sufficient moneys therefore from the Fire and Police Tier 1 General Pension Fund. In no other event shall any of the moneys in either of these funds be commingled with any of the moneys in the other of these funds, whether as moneys or cash on deposit or as moneys invested. Back to index
Sec. 1322. Actuarial Standards.
(a) Reserve Basis of System . The Fire and Police Pension Plan - Tier 1 shall be maintained on a reserve basis which, for the purposes of this Tier 1 shall mean one which provides for the accumulation and maintenance of the Fire and Police Tier 1 Service Pension Fund and the Fire and Police Tier 2 General Pension Fund which together will at all times be equal to the difference between the present value of the obligations assumed and the present value of the moneys to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of moneys with which they are to be paid in accordance with the provisions of Sections 1210( b)( 1) concerning Fire and Police Pension Plans Budget and 1324 concerning Member Contributions. The Board shall retain a competent consulting actuary for the purpose of making the necessary actuarial studies and reports on the required investigations and valuations. `
(b) Actuarial Investigation and Valuation . The Board shall secure an actuarial valuation showing the cost of maintaining the system and funds on such reserve basis and, at intervals of not to exceed five years, shall cause to be made an actuarial investigation including, but not limited to, the mortality, service and salary experience of the members and beneficiaries and shall further cause to be made annually an actuarial valuation of the assets and liabilities of the funds.
(c) Assumed Rate of Interest . The Board, from time to time and with the advice of the investment counsel, shall establish an assumed rate of interest as in its judgment seems proper in the light of the experience and prospective earnings on the investments of the funds.
(d) Unrealized Profits and Losses . With the advice of the consulting actuary and of the investment counsel, the Board, for the purpose of the actuarial valuations, shall provide by rule for the manner and to the extent to which any unrealized profits or losses in the equity- type investments of the funds shall be taken into consideration. Back to index
Sec. 1324. Member Contributions - Tier 1.
(a) Required Contributions . Each member of the Fire Department and of the Police Department included within the pension provisions of this Tier 1 shall contribute to the Fire and Police Tier 1 Service Pension Fund in the manner provided in this section, except that further contributions to the Fund shall not be required from an employee who has served as a member of the Fire Department or of the Police Department for more than 30 years.
(b) Payroll Deduction . The administrative head of each such department shall cause to be shown on each and every payroll of the department a deduction of six percent (6%) of the amount of salary, as shown on each such payroll, of each such member whose name appears thereon, and shall certify to the Controller on each such payroll the amount to be deducted from the compensation of each such member whose name appears thereon, and shall cause to be drawn a payroll check in favor of the "Board of Fire and Police Pension Commissioners" for the total amount of deduction shown on each payroll of such department, and the Board shall deposit the payroll check to the credit of the Fire and Police Tier 1 Service Pension Fund. It shall be the duty of the administrative head of each department to cause to be furnished a copy of each and every payroll to the Board .
(c) Deemed Consent to Deduction . Each member shall be deemed to consent and agree to each deduction made as provided for herein and the payment of each payroll check to such member shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by each member during the period covered by such payroll, except such claims as a member has to the benefits or payments provided for in this Tier 1.
(d) Maintenance of Individual Accounts . Starting July 1, 1982, the Board shall maintain an individual account of the contributions by each member, as hereinabove provided. Regular interest shall be credited to such individual accounts as of the last day of June and December of each year after July 1, 1982, at such rate as the Board may deem proper in light of the earnings of the funds of the Fire and Police Pension Plan - Tier 1, exclusive of profits and losses on principal resulting from sales of securities. No such interest shall be credited at any other time, except such interest shall be credited to the individual account of a member whose employment is terminated for any reason for any period of service between the next preceding last day of June or December and the end of the pay period preceding the date of such termination at the rate at which regular interest was last credited to members' individual accounts.
(e) Refund of Individual Account Balance . Every person who is a member of the Fire and Police Pension Plan - Tier 1 on July 1, 1982 shall, upon termination of employment be entitled to a refund of contributions made by him or her pursuant to the provisions of this section. A person not a member on July 1, 1982 and whose employment terminated prior to that date, shall not be entitled to a refund of contributions made by him or her during periods of membership prior to July 1, 1982. The refund of contributions shall be subject to the following conditions and limitations:
(1) Refund on Termination . Upon termination of employment as a member of the Fire Department or the Police Department for any reason except retirement pursuant to the provisions of this Tier 1, a member shall be entitled to have refunded to him or her all contributions made by such member to the Fire and Police Tier 1 Service Pension Fund (and any predecessor funds) prior to July 1, 1982, plus 6% per annum interest on such contributions calculated in the same manner as if interest had regularly been credited to the member' s contributions, compounded as of the last day of the last pay period of December and to the end of the last pay period preceding the effective date of termination of employment.
(2) Forfeiture of Pension . Members who elect to receive a refund of contributions, forfeit the right to benefits provided in this Tier 1. After payment of any pension benefit has commenced, a member forfeits the right to a refund of the member' s contributions. Members who return to active duty from a disability pension may not thereafter have contributions made by them prior to their retirement on such disability pension refunded. Back to index
(3) Beneficiary Designation . Members shall have the right to designate persons who shall be entitled to receive monies to which a member would otherwise be entitled upon termination of employment, to be payable to such designated person or persons upon the member' s death; except that no such monies shall become payable if any person should be entitled to any other benefit provided in this Tier 1. The Board shall adopt appropriate forms for the designation by members of persons who shall be a member' s beneficiaries. Back to index
(a) Time Off With Pay . Whenever a member, for overtime work, shall take a period of time off with pay:
(1) a deduction for pension purposes shall be made from such pay but only in the same amount as that which would have been deducted from his regular salary if such period had been one of regular work;
(2) such pay shall be part of the salary assigned or attached to the rank or position held by him but only in the same amount as that which would have been his regular salary if such period had been one of regular work; and
(3) such period shall be part of his years of aggregate service.
(b) Cash Payment. Whenever a member, for overtime work, shall receive a cash payment:
(1) a deduction for pension purposes shall not be made from such payment;
(2) such payment shall not be part of the salary assigned or attached to the rank or position held by him; and
(3) the period of overtime work for which he shall receive such payment shall not be part of his years of aggregate service except that any period of a member' s overtime work, for which he shall not have taken time off with pay, shall be credited, by the Board, as part of his years of aggregate service, upon his or his survivor' s written request therefore, to the same extent as he would have been entitled to take therefore time off with pay but only to the extent, and not in excess thereof, that he, while a member, shall have had any period of absence from work without pay. Such request shall be accompanied with payment of the amount which would have been deducted for pension purposes from his regular salary if the period of overtime work, to the extent credited, had been one of regular work. Back to index
Sec. 1328. Cost of Living Adjustment.
(a) Service, Disability and Survivor Pensions to Remain Unaffected Except as Adjusted for Cost of Living . That all pensions granted in accordance with the provisions of Sections 1304, 1310, 1312, 1314 and 1316 concerning Service, Disability and Survivor Pensions shall remain in full force and effect for the period granted, and any increase or decrease of salaries of active members of the Fire and Police Departments shall not in any way affect the amount of the pensions to be paid to retired members of such departments, or to any other person pensioned pursuant to the provisions of this Tier 1, nor shall the amount of such pensions be changed for any other reason, except as otherwise specifically provided in this Tier 1.
(b) Cost of Living Adjustment . From and after July 1, 1961, pension payments on account of service- connected disability or death granted prior to June 30, 1960, shall be increased as follows:
(1) Service Connected Disability Pension . In the case of a disability pensioner retired under the provisions of Section 1310 concerning Service Connected Disability Pensions, the amount payable as of June 30, 1960, calculated, however, on the degree of disability as of June 26, 1961, shall be increased in the ratio which the consumer price index for the month of June, 1960, bears to the consumer price index for the month in which such pension became effective. The power vested in the Board under the provision of Section 1310 to change the amount of pension by reason of the degree of disability, as therein provided, is expressly continued and in the event of any such change after June 26, 1961, the amount established hereunder shall be increased or decreased in the ratio which the newly determined degree of disability bears to the degree of disability immediately preceding such change.
(2) Service Connected Survivor Pension . In the case of a widow, or child or children, entitled to a pension based on service- connected disability or death pursuant to Section 1314 concerning Service Connected Survivor Pensions, the amount payable, calculated as of June 30, 1960, shall be increased in the ratio which the sum of the consumer price indexes for the three- year period ending June 30, 1960, or lesser period where the original pension was calculated on a period of less than three years, bears to the sum of such indexes for the period during which salary was originally taken into account in determining the amount of such pension. In the case of a widow receiving an additional amount on account of a child or children pursuant to Section 1314 concerning Service Connected Survivor Pensions, the increase provided by this section shall first be calculated upon the amount due her, exclusive of such additional amount and the applicable percentage increase on account of children shall then be applied to her new pension amount.
(c) Applicable Index . The consumer price indexes referred to in this section shall be those published by the Bureau of Labor Statistics for the Los Angeles area (all items and commodity groups 1947- 49 =100 base) and for those months for which a monthly index is not published, monthly indexes shall be established by a straight line interpolation between the published monthly indexes.
(d) Inapplicability to Fluctuating Pensions . This section shall not apply to any pension payment which fluctuates with the current salaries established for the several ranks and positions in the Fire or Police Department and in the event it is held by any final judgment or decree of a court of competent jurisdiction, after the effective date of this section that any person granted an increase under the provisions of this section is entitled to a fluctuating pension based upon such salary rates, then, from and after the effective date of such adjudication, this section shall have no further force or effect as to such person. The additional liabilities assumed by Tier 1 under this section, shall be funded under the provisions of Section 1210( b)( 1) concerning the Tier 1 Budget.
(e) Minimum Pension Amount . Each pension granted pursuant to this Tier 1, regardless of the type of the pension, which shall be less in amount than $250 per month as of January 26, 1967 shall be increased to the amount of $250 per month as of February 1, 1967, and the monthly amount of such pension thereafter shall not be reduced to a monthly amount less than such increased monthly amount except pursuant to Section 1212 concerning Worker' s Compensation.
(f) Implementation of Minimum Pension Provisions . Subject to and upon the conditions contained in this section, the minimum monthly amount of pension provided by subsection (e) shall be applicable, from and after July 1, 1967, to all pensions heretofore or hereafter granted pursuant to this Tier 1. The monthly amount of each pension which, as of August 1, 1967, is in a lesser monthly amount than the minimum monthly amount of pension provided by subsection (e), as augmented pursuant to subsection (g), shall be increased, effective as of the first day of the month, to the minimum monthly amount of pension so provided and as so augmented. Each pension granted after August 1, 1967, shall be in a monthly amount not less than the minimum monthly amount of pension provided, as of the effective date of the pension, by subsection (e), as augmented pursuant to subsection (g). The monthly amount of any pension which is or shall be affected by the minimum monthly amount of pension provided by subsection (e), as augmented pursuant to subsection (g):
(1) shall be subject to be reduced pursuant to Section 1212 concerning Worker' s Compensation despite any other provisions of this Tier 1; and
(2) shall be subject to be reduced pursuant to Section 1310, Section 1314 or Section 1316 concerning certain disability and survivor pensions, whichever shall be applicable.
Any such reduction under subsection (f)( 2) shall be made only if it shall not reduce the monthly amount of the pension to a lesser monthly amount than the monthly amount of pension to which it had been increased pursuant to subsection (b) or to a lesser monthly amount than the minimum monthly amount of pension provided by subsection (e), as augmented pursuant to subsection (g) effective as of the date of any such reduction, whichever shall be the greater.
(g) Cost of Living Adjustments for Service and Survivor Pensions . The Board, before May 1st of each year commencing with the year 1967, shall determine the percentage of the annual increase or decrease in the cost of living as of March 1st of that year from March 1st of the preceding year, as shown by the consumer price index published by the Bureau of Labor Statistics for the area in which the City of Los Angeles is located. If any such index were not to reflect the cost of living as of a particular March 1st, then the next preceding such index which had done so shall be used. If there were to be any change in the statistical method or the components which were used in any such index from those which were used in any such index of the preceding year with which a comparison is to be made, then the Board, to the extent possible, shall adjust any such differences therein for the purpose of determining the percentage of increase or decrease in the cost of living. Commencing as of July 1st of the year in which the Board shall so determine the percentage of increase or decrease in the cost of living, the amounts of certain pensions, as hereinafter identified and upon the conditions hereunder stated therefore, shall be increased or decreased by reason of such determined percentage of increase or decrease in the cost of living but not to exceed, however, two percent (2%) in any given year. Such determined percentage of increase or decrease in the cost of living, as so limited, shall be applied to the amounts of such pensions which shall be payable for the preceding month of June, including any previous percentage of increase or decrease in the cost of living made with respect thereto. The percentage of increase or decrease in the cost of living first shall be applied to:
(1) Minimum Pensions Under Subsection (e). The pension of any person, whose pension shall be increased pursuant to subsection (e) on July 1, 1967;Back to index
(2) Nonfluctuating Service Pensions of Persons Retired Prior to July 1, 1967. The pension of any retired member who had been retired or who shall be retired pursuant to Section 1304 concerning Service Pensions prior to July 1, 1967, upon a pension which shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon July 1, 1967, if he shall have attained the age of 55 years prior to that date, or, if he shall not have attained such age prior to that date, upon the July 1st following the date upon which he shall have attained such age;
(3) Nonfluctuating Service Pensions of Persons Retired After July 1, 1967. The pension of any retired member who shall be retired pursuant to Section 1304 concerning Service Pensions after July 1, 1967, upon a pension which shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon the July 1st following the effective date of his pension if he shall have attained the age of 55 years prior to that date or, if he shall not have attained such age prior to that date, upon the July 1st following the date upon which he shall have attained such age;
(4) Survivor Pensions Granted Prior to July 1, 1967 and Based Upon Nonfluctuating Service Pensions . The pension of any widow, minor child or children or dependent parent or parents which had been or shall be granted pursuant to Section 1314 concerning Service Connected Survivor Pensions prior to July 1, 1967, following the death of a retired member who had been retired pursuant to Section 1304 with a Service Pension or of an active member who had become eligible to retire pursuant thereto, and which pension shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon July 1, 1967, if such retired member or such active member, as the case may be, would have attained the age of 55 years prior to that date if he had been alive on that date or, if he would not have attained such age prior to that date if he had been alive on that date, upon the July 1st following the date upon which he would have attained such age if he had been alive on that date; and
(5) Survivor Pensions Granted After July 1, 1967 and Based Upon Nonfluctuating Service Pensions. The pension of any widow, minor child or children or dependent parent or parents which shall be granted pursuant to Section 1314 concerning Service Connected Survivor Pensions after July 1, 1967, following the death of a retired member who had been retired pursuant to Section 1304 with a Service Pension or of an active member who had become eligible to retire pursuant thereto, and which pension shall not increase or decrease upon the basis of any increase or decrease in the salaries of active members of the Fire Department or of the Police Department, upon the July 1st following the effective date of such pension if such retired member or such active member, as the case may be, would have attained the age of 55 years prior to that date if he had been alive on that date or, if he would not have attained such age prior to that date if he had been alive on that date, upon the July 1st following the date upon which he would have attained such age if he had been alive on that date.
The amount of any pension referred to in subsections (g)( 1), (2), (3), (4) or (5) hereof never shall be reduced, by reason of the application thereto of this section, to an amount less than the amount to which any pension referred to in subsection (e) shall be increased or to an amount less than the amount thereof originally granted.
(h) Carryover of Excess Cost of Living Adjustment From Year to Year . If the percentage of increase or decrease in the cost of living in any year, as determined by the Board, were to exceed 2% as compared with the cost of living as of March 1st of the preceding year, the percentage of increase or decrease in the cost of living in excess of 2% shall be carried over and added to or subtracted from the percentage of increase or decrease in the cost of living in the succeeding year, and such procedure shall be complied with from year to year.
(i) Application of Cost of Living Adjustment to Other Pensions . The provisions of subsection (g), if otherwise not applicable as of July 1, 1967 to any pension referred to in subsection (f), shall be applicable thereto, from and after July 1, 1967, to the same extent and in the same manner as they are applicable to any pension referred to in subsection (e). Any adjustments provided to be made in monthly amounts of pensions pursuant to subsection (g) shall be applicable to the monthly amounts of other pensions which are not referred to in that section or in the foregoing provisions of this section whenever the monthly amounts of any such other pensions otherwise would be in lesser monthly amounts than the minimum monthly amount of pension provided by subsection (e), as then augmented pursuant to subsection (g).
(j) Additional Cost of Living Adjustments for Disability and Survivor Pensions .
(1) Special Definitions. Wherever used in this subsection: (A) "the pension" shall mean, unless subsection (g) shall be mentioned in conjunction therewith, only a pension which is not identified in subsection (g), is not referred to in subsection (i) and is in an amount which shall not increase or decrease by reason of any increase or decrease in the salary of any active member; (B) "the July 1st following" shall mean only a July 1st after May 2, 1969; and (C) "person" shall include its plural.
(2) Application of Subsection (g) Adjustments. The percentage of increase or decrease in the cost of living hereafter shall be applied pursuant to subsection (g) and the terms and conditions contained in this section:
(A) Disability Pensions. To the pension of any retired member, ever retired pursuant to: (i) Section 1310 concerning Service Connected Disability Pensions, upon the July 1st following the date of this retirement or the effective date of this paragraph of this section, whichever shall be the later; or (ii) Section 1312 concerning Nonservice Connected Disability Pensions, upon the July 1st following the date he shall have attained the age of 55 years or the fifth anniversary of the effective date of the pension, whichever shall be the earlier; Back to index
(B) Survivor Pensions. To the pension of any person, (i) ever granted pursuant to Section 1314 or Section 1316 concerning Survivor Pensions upon the death of an active member not eligible to retire pursuant to Section 1304 concerning Service Pensions, (ii) ever granted pursuant to Section 1314 concerning Service Connected Survivor Pensions upon the death of an active member eligible to retire pursuant to Section 1304 concerning Service Pensions and which pension of such person is identified in subsection (g)( 4) or (5), (iii) heretofore granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 concerning Nonservice Connected Disability Pensions, or (iv) hereafter granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 concerning Nonservice Connected Disability Pensions where the amount of the pension shall be calculated upon the salary specified in Section 1316 by reason of such person' s written election therefore pursuant to Section 1318, upon the July 1st following: the date such member shall have attained the age of 55 years, the date such member would have attained such age if he then had been alive, or the fifth anniversary of the effective date of the pension of such person, whichever shall be the earliest. Pensions described in subsection (j)( 2)( D) shall be adjusted upon the effective date specified in that subsection;
(C) Other Survivor Pensions. To the pension of any person, (i) ever granted pursuant to Section 1314 concerning Service Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1310 concerning Service Connected Disability, (ii) ever granted pursuant to Section 1314 concerning Service Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1304 concerning Service Pensions and which pension of such person is identified in subsection (g)( 4) or (5), or (iii) hereafter granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 with a Nonservice Connected Disability Pension where the amount of the pension shall be calculated upon the salary specified in Section 1312 by reason of such person' s written election therefore pursuant to Section 1318, upon the July 1st following the date such member shall have attained the age of 55 years, the date such member would have attained such age if he then had been alive, or the fifth anniversary of the effective date of the pension of such member, whichever shall be the earliest; and
(D) Survivor Pensions Based Upon Line of Duty Death. To the pension of any person ever granted on account of the death of an active member of the Fire or Police Department who died as result of any injury received during the performance of his or her duties, or from sickness caused by the discharge of such duties, upon the July 1st following the effective date of such pension, but if such pension became effective before July 1, 1989, it shall be retroactively adjusted as of July 1, 1989.
(3) Procedure for Applying Cost of Living Adjustments to Certain Pensions. The following provisions in respects other than those provided for in subsection (j)( 2) of this section, hereafter shall be controlling the application to certain pensions of the percentage of increase or decrease in the cost of living.
(A) Service Pensions and Widow Pensions. Whenever the amount of the pension, (i) of any retired member shall be increased or decreased pursuant to Section 1310 concerning Service Connected Disability Pensions, or (ii) of any widow shall be increased or decreased pursuant to Section 1314 or Section 1316 concerning Survivor Pensions: the amount of any such increase shall not include the percentage of any increase in the cost of living which previously had been applied to the former amount of the pension; and the amount of any such decrease shall include the percentage of any increase in the cost of living which previously had been applied to it as a portion of the former amount of the pension. Back to index
(B) Other Survivor Pensions . Whenever the pension of any person, (i) hereafter shall be granted pursuant to Section 1314 concerning Service Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1304 with a Service Pension and which pension of such person is identified in subsection (g)( 4) or (5), (ii) hereafter shall be granted pursuant to Section 1314 concerning Service Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1310 with a Service Connected Disability Pension, or (iii) hereafter shall be granted pursuant to Section 1316 concerning Nonservice Connected Survivor Pensions upon the death of a retired member previously retired pursuant to Section 1312 concerning Nonservice Connected Disability Pensions where the amount of the pension shall be calculated upon the salary specified in Section 1312 by reason of such person' s written election therefore pursuant to Section 1318, the amount of the pension of any such person (I) if the amount thereof which shall be payable to such person were to be more than the amount of the pension which had been payable to such member, shall include the percentage of any increase in the cost of living which had been applied to the pension of such member, or (II) if the amount thereof which shall be payable to such person were to be less than the amount of the pension which had been payable to such member, shall include that portion of the percentage of any increase in the cost of living which had been applied to the pension of such member which shall be in the same ratio as the amount of the pension which shall be payable to such person shall bear to the amount of the pension which had been payable to such member, and the percentage of any increase or decrease in the cost of living in excess of 2% per year which had been carried over for such member as of the date of his death shall be carried over for such person if (I) hereof were to be applicable or in the same ratio therein provided if (II) hereof were to be applicable.
(C) Pensions of Minor Children. Whenever the pension of any widow hereafter shall be terminated pursuant to Section 1314 or Section 1316 concerning Survivor Pensions and the pension therein provided thereafter shall become payable pursuant thereto on behalf of any minor child or children of the deceased member, the amount of pension on behalf of such child or children shall include that portion of the percentage of any increase in the cost of living which had been applied to the pension of such widow which shall be in the same ratio as the amount of the pension which shall be payable on behalf of such child or children shall bear to the amount of the pension which had been payable to such widow, and the percentage of any increase or decrease in the cost of living in excess of 2% per year which had been carried over for such widow as of the date of the termination of her pension shall be carried over on behalf of such child or children in the same ratio hereinabove provided.
(4) Limitations on Subsection (g) Reductions . The amount of the pension never shall be reduced, by reason of the application thereto of the provisions of subsection (g) of this section, to an amount less than:
(A) the amount thereof if subsection (b) is applicable,
(B) the amount thereof if subsection (e) is applicable,
(C) the amount thereof if subsection (f) is applicable, or (D) the amount thereof payable pursuant to provisions of this Tier 1, other than those of subsection (g) or this section, if none of the sections mentioned in (A), (B), or (C) above is applicable.
(5) Applicability. Subsection (g) hereafter shall be construed and applied in accordance with this subsection (j) as to each pension mentioned in this subsection.
(k) Monthly Minimum Pension .
(1) Amount of Minimum Pension . Each pension granted pursuant to this Tier 1, regardless of the type of the pension, which became or becomes effective prior to July 1, 1971 and which, as of June 30, 1971, is in a monthly amount of less than three hundred fifty dollars ($ 350) shall be increased, effective July 1, 1971 pursuant to the provisions of subsections (k)( 2) and (3), and shall, if such increase results in a monthly pension amount which is less than three hundred fifty dollars ($ 350), be increased to provide for a monthly minimum pension of three hundred fifty dollars ($ 350). Each pension granted pursuant to this Tier 1, regardless of the type of the pension, which becomes effective on or subsequent to July 1, 1971 shall be in a monthly amount not less than the minimum monthly pension amount provided, as of the effective date of the pension by this subsection of this section. The monthly amount of each such pension never shall be reduced, by reason of the provisions of subsection (g), subsection (i), subsection (j) or subsection (k)( 3) of this section, to a monthly amount less than the minimum monthly pension amount provided by this subsection (k)( 1).
(2) Amount of Increase . The monthly amount of pension of each retired member or other person which, prior to July 1, 1971, had been increased by reason of a cost of living adjustment thereof pursuant to subsection (g), subsection (i) or subsection (j) shall be increased, as of July 1, 1971, by that portion of the percentage of the annual increase in the cost of living, as had been determined by the Board pursuant to subsection (g), which was in excess of 2% but not in excess of 3% for each year the monthly amount of such pension had been increased.
(3) Subsection (g) Adjustments . The monthly amount of pension of each retired member or other person who heretofore did qualify or hereafter shall qualify for a cost of living adjustment thereof pursuant to subsection (g), subsection (i) or subsection (j) and the monthly amount of pension of each retired member or other person which shall be the minimum monthly pension amount provided by subsection (k)( 1) of this section, hereafter shall be increased or decreased, as of the dates provided therefore by subsection (g), by the percentage of the annual increase or decrease in the cost of living as hereafter shall be determined by the Board pursuant to subsection (g) .
(4) Applicability of This Subsection . The provisions of Section 1304, 1310, 1312, 1314 and 1316, and subsections (b), (e), (f), (g), (i) and (j) of this section hereafter shall be construed and applied in accordance with the provisions of this subsection (k).
(5) Savings Clause . Should any provision of this subsection (k) at any time be held to be invalid, in their application to certain persons or periods of time, such invalidity shall not affect the validity of any provisions as to other persons entitled to benefits hereunder or the applicability as to other periods of time. Back to index
Sec. 1330. Authority of Council to Establish Certain Benefits by Ordinance.
(a) Purpose of this Section . It is the purpose of this section to enable the Council to provide by ordinance a program or programs whereby persons receiving pensions pursuant to the provisions of this Tier 1 may become eligible to have subsidy payments made on their behalf for health insurance, accident insurance, life insurance or health care plan coverage or coverage for any combination of such programs as determined by the Council and subject to such conditions of entitlement as may be set forth in any ordinance adopted in accordance with the provisions of this Tier 1.
(b) Supermajority Vote Requirement . Ordinances adopted pursuant to this section must be approved by not less than two- thirds of the membership of the Council, subject to the veto of the Mayor and readoption by the Council by three- fourths of the membership of the Council. No such ordinance may be finally adopted by the Council until the expiration of at least 30 days after its first presentation to the Council, nor until after a public hearing has been held. Any ordinance adopted pursuant to this section shall go into effect upon its publication, but the terms of such ordinance, or portions thereof, may be operative at a later date or dates.
(c) Limitations on Council' s Authority . An ordinance adopted pursuant to this section may not provide for subsidy payments for any individual, the total amount of which, including subsidy payments from a city fund or funds other than those created under Section 1320 of this Tier 1, would be in excess of the maximum available subsidy payment for beneficiaries under the provisions of any ordinance adopted pursuant to the authority of Section 1168 of the Charter, nor may such subsidy payments be in excess of any amounts allowed active members of the Fire and Police Pension System.
(d) Subsidy Program Administration . Any subsidy program adopted by ordinance pursuant to this section shall be administered by the Board. The Board shall have the authority to contract for suitable programs as hereinabove defined in subsection (a) to be made available to retired members or other beneficiaries, and shall have the power to adopt rules necessary to administer the programs. Notwithstanding the foregoing provisions, the Board may authorize the Personnel Department to administer any program or part established by ordinance pursuant to the provisions of this section. The Board shall reimburse the General Fund of the City of Los Angeles for all necessary expenses incurred by the Personnel Department as a result of administering these programs.
(e) Change in Subsidy Amounts . The Board, in its discretion, may by resolution increase or decrease the amount of subsidy payments on the following conditions only: (1) to reflect changes in subsidies provided for active members or (2) to offset any increases or decreases in the level of benefits referred to in subsection (a) or the cost thereof as a result of changes in existing benefits or the addition of newly created benefits by federal or state funded programs. Back to index
Sec. 1332. Compliance with Certain Internal Revenue Code Provisions.
(a) With the enactment of this section an election has been made as authorized under the provisions of Section 415( b)( 10)( C) of the Internal Revenue Code to be bound by the limitations of Section 415 of the Code subject to the provisions of Section 415( b)( 10)( A) and (B).
(b) If any of the provisions of Section 415 of the Internal Revenue Code should be repealed, the provisions of this section shall be deemed repealed to the same extent. Back to index
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