31487. (a) The retirement plan created by this article shall be
known as Retirement Plan E.
(b) This article shall be applicable in the retirement system of
any county with a population in excess of six million, if the board
of supervisors executes a memorandum of understanding with employee
representatives and adopts, by majority vote, a resolution providing
that the article shall be applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) dealing with
reciprocal benefits shall be applicable, excluding those provisions
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions.
(h) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
(i) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
31488. Unless the context otherwise requires, the definitions
contained in this section, govern the construction of this article.
(a) As used in subdivisions (f) and (g) of Section 31491,
subdivisions (b) and (c) of Section 31492, and Section 31495, "board"
means the board of investments. In all other cases, "board" means
the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
monthly permanent basis of at least three-quarter time, as defined by
the employer, except an employee eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age at which full
retirement benefits are available under the federal system. This age
is deemed to be age 65 until June 30, 1983.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as otherwise herein provided, a member shall not be
credited with service for any payroll period in which no compensation
is received by the member.
Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
31489. (a) Except as otherwise provided in Section 31490.5 or
31490.6, there shall be no general members' contributions under the
plan created by this article.
(b) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account. Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. A refund under this section shall be payable to the
member.
31490. (a) Except as provided in Sections 31490.5 and 31494, and
under reciprocal provisions of this article, a member who was in
public service prior to becoming a member may not elect to receive
credit in this retirement plan for that public service time, and
shall not receive credit for that prior public service.
(b) Absence from work or termination of employment while an
eligible employee or disability beneficiary, as defined by a
disability plan provided by the employer, shall not be considered as
breaking the continuity of service.
(c) For the purposes of subdivision (b) of Section 31491, an
unpaid leave of absence of not to exceed one year, or a leave of
absence for which an employee receives any benefit that has been
approved by the employer, shall not be considered an interruption of
service. However, a payroll period in which no compensation is
received by a member shall not be considered as service in
calculating the benefits otherwise provided under this article.
31490.5. (a) An active member governed by the provisions of this
article may elect, by written notice filed with the board, to make
contributions and receive credit under this plan for service for
which he or she would not otherwise be entitled to receive credit
pursuant to this article.
(b) Any member who elects to receive service credit pursuant to
this section shall have the same purchase rights and shall contribute
to the retirement fund the amount that a member in the contributory
plan wishing to purchase the same service would have to contribute,
based on the rates applicable to a member of the contributory plan
with the same date of entry into membership. Payment shall be made by
lump-sum payment or by installment payments over a period not to
exceed 10 years, prior to the effective date of his or her retirement
or, if applicable, prior to the date provided in Section 31485.8.
(c) No member may receive any service credit under this section
for which he or she has not completed payment pursuant to subdivision
(b) before the effective date of his or her retirement or, if
applicable, before the date provided in Section 31485.8. Subject to
the limitations of federal law, a member who has elected to make
payments in installments may complete payment by lump sum at any time
prior to the effective date of his or her retirement.
(d) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(e) As used in this section, the "contributory plan" means that
contributory plan otherwise available to new members of the system on
the election date.
(f) This section is not operative until the board of supervisors
elects, by resolution adopted by a majority vote, to make this
section operative in the county.
31490.6. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
(d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.8. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
(f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative until the board of supervisors,
by resolution adopted by majority vote, makes this section operative
in the county.
31490.7. Upon the death of an active or former member of the plan
established by this article, an amount equal to the accumulated
contributions made by the member pursuant to this article, with
interest on that amount, shall be paid to the member's beneficiaries.
31491. (a) Retirement of a member or former member who has met the
requirements for age and service shall be made by the board, at which
time the member or former member becomes a retired member.
(b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
(c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
(d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
(e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
(f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55............................... .39
56............................... .43
57............................... .47
58............................... .51
59............................... .56
60............................... .61
61............................... .67
62............................... .74
63............................... .82
64............................... .90
The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
(g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
(1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
(2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
(i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31492.
(j) Notwithstanding subdivision (e) of Section 31491, any retired
member receiving a normal retirement pension shall, as soon as
possible but not later than six months following retirement, present
evidence required by the board of the retired member's actual primary
insurance amount. For purposes of this subdivision, the actual
primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work. Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.
31491.1. (a) Notwithstanding Section 31491, any retired member
receiving a retirement pension may present evidence in the form
required by the board of the retired member's actual primary
insurance amount. For the purposes of this section, the actual
primary insurance amount shall be the amount being paid under the
federal system. Following receipt of that evidence, the board shall
adjust the retired member's pension to equal the amount of the
pension to which he or she would have been entitled on that date had
the estimated primary insurance amount equaled the actual insurance
amount.
(b) The adjustment calculated in subdivision (a) shall be applied
to the retired member's pension beginning in the month upon which the
retired member presents evidence required by the board.
(c) This section shall not be operative in any county until the
board of supervisors, by resolution adopted by majority vote, makes
this section applicable.
31491.2. (a) Notwithstanding Section 31491, any retired member
receiving a retirement pension may present evidence in the form
required by the board of the retired member's federal estimated
primary insurance amount provided that the retired member is not
receiving a federal primary insurance amount. For the purposes of
this section, the federal estimated primary insurance amount shall be
the amount payable under the federal system as of the retired member'
s normal federal retirement age. Should the federal estimated primary
insurance amount equal zero, the retired member shall not have his
or her pension benefit reduced for an estimated primary insurance
amount as required in subdivision (e) of Section 31491.
(b) Following receipt of that evidence, the board shall adjust the
retired member's pension to equal the amount of the pension to which
he or she would have been entitled on that date had the estimated
primary insurance amount calculated in Section 31491 equaled zero.
(c) The adjustment calculated in subdivision (a) shall be applied
to the retired member's pension beginning in the month upon which the
retired member presents evidence required by the board.
(d) Notwithstanding subdivision (a), upon attaining federal
retirement age, the retired member shall submit any evidence as may
be required by the board of the retired members' federal estimated or
actual primary insurance amount. Following receipt of that evidence,
the board shall adjust the retired member's pension in accordance
with subdivision (j) of Section 31491.
(e) This section shall not be operative in any county until the
board of supervisors, by resolution adopted by majority vote, makes
this section applicable.
31491.3. (a) Notwithstanding subdivision (f) of Section 31491, for
those members retiring on or after the operative date of this
section, the early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount that is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55............................... .3748
56............................... .4109
57............................... .4511
58............................... .4957
59............................... .5454
60............................... .6009
61............................... .6631
62............................... .7328
63............................... .8113
64............................... .8998
(b) For those members retiring on or after the operative date of
this section, paragraph (2) of subdivision (g) of Section 31491 shall
not apply, but with regard to those members who have not attained
the age of 62 years as of the date of retirement (1) future earnings
in employment covered by the federal system shall be assumed to
continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of
employment of a vested member, whichever is applicable, until the
member attains the age of 62 years, and (2) future wage bases, as
defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of employment of a vested member, whichever is
applicable, until the member attains the age of 62 years, and (3)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(c) Notwithstanding subdivision (e) or subdivision (j) of Section
31491, any member who retires on or after the operative date of this
section, and after attaining the age of 62 years may, as soon as
possible but not later than six months following retirement, present
evidence required by the board demonstrating the retired member's
actual primary insurance amount. For purposes of this subdivision,
the actual primary insurance amount shall be the amount actually
payable under the federal system on the retired member's date of
retirement without regard to delayed retirement credit or any
deductions on account of work, or the estimate of that amount as set
forth on a current earnings and benefits estimate statement provided
by the Social Security Administration. Following receipt of that
evidence, the board shall adjust the retired member's pension from
the date of retirement to equal the amount of the pension to which he
or she would have been entitled on that date had the estimated
primary insurance amount equaled the actual primary insurance amount.
(d) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31492. (a) (1) Upon the death of a retired member, 50 percent of
the retirement pension, if not modified in accordance with the
optional survivor allowance in subdivision (c) or (d), shall be
continued during and throughout the life of his or her surviving
spouse, if she or he was married to the member at least one year
prior to the date of retirement. If there is no surviving spouse
entitled to this allowance, or if he or she dies before every child
of the deceased retired member, including every stepchild or adopted
child, attains the age of 18 years, then the allowance that the
spouse would have received had she or he survived shall be paid to
the deceased retired member's child or children under the age of 18
years. If the survivor allowance is to be paid to surviving children,
it shall be divided among the children in equal shares. However, the
right of any child to share in the allowance shall cease upon his or
her death, marriage, or attaining the age of 18 years.
(2) Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21 years, if the
children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
(b) If, upon the death of a retired member, there is no surviving
spouse or child entitled to the allowance under this section, and the
total retirement allowance income received by the member during his
or her lifetime did not equal or exceed his or her accumulated normal
contributions, if any, the member's designated beneficiary shall be
paid an amount equal to the excess of his or her accumulated normal
contributions over his or her total retirement allowance income.
(c) (1) A vested member, or vested former member, in lieu of the
retirement allowance and survivor allowance, if any, otherwise
payable to a retired member and his or her surviving spouse pursuant
to this article, may elect to have the actuarial equivalent of these
benefits, as of the date of retirement, applied to a lesser amount
payable throughout the retired member's life and to an increased
survivor allowance as approved by the board, upon the advice of the
actuary, continued throughout the life of and paid to his or her
surviving spouse, if he or she was married to the member at least one
year prior to the date of retirement. If there is no surviving
spouse entitled to this allowance, or if he or she dies before every
child of the deceased retired member, including every stepchild and
adopted child, attains the age of 18 years, then the increased
survivor allowance that the spouse would have received had he or she
survived shall be paid to the deceased retired member's child or
children under the age of 18 years. If the increased survivor
allowance is to be paid to surviving children, it shall be divided
among the children in equal shares. However, the right of any child
to share in the allowance shall cease upon his or her death,
marriage, or attaining the age of 18 years.
(2) Notwithstanding any other provision of this subdivision, the
increased allowance otherwise payable to the children of the retired
member shall be paid to the children through the age of 21 years if
the children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
(3) The election pursuant to this subdivision may not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system. If a member makes the election, the
member's normal or early retirement benefit shall be reduced by the
additional actuarial cost to the system resulting from the increased
survivor allowance. The actuarial cost of the survivor allowance
payable under this subdivision shall be calculated taking into
account the life expectancy of the member's surviving spouse.
(4) This subdivision is not operative unless the county board of
supervisors, by resolution adopted by a majority vote, makes this
subdivision operative in the county. This subdivision applies only to
members who retire after the operative date of this subdivision.
(d) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone and the survivor allowance, if any, that would be payable under
subdivision (a) or (c), may elect to have the actuarial equivalent
of the retired member's pension as of the date of retirement applied
to a lesser amount payable throughout the retired member's life, and
to a survivor allowance as approved by the board, upon the advice of
the actuary, that, upon the death of the retired member, shall
continue throughout the life of and be paid to the person or persons
having an insurable interest in the life of the retired member, as
the member or former member nominates by written designation duly
executed and filed with the board at the time of retirement. The
member's normal or early retirement benefit shall be reduced by the
actuarial cost of the survivor allowance elected.
31492.1. (a) Notwithstanding Section 31492, each monthly survivor
allowance paid pursuant to subdivision (a) of Section 31492 on
account of a member who retires on or after the operative date of
this section shall be equal to 55 percent of the retirement pension,
if not modified in accordance with the optional survivor allowance in
subdivision (c) or (d) of that section.
(b) This section is only applicable to Los Angeles County and is
not operative until the board of supervisors of that county elects,
by resolution adopted by a majority vote, to make this section
operative in the county.
31492.2. (a) Notwithstanding the provisions of Section 31492, each
monthly survivor allowance paid on or after the operative date of
this section pursuant to subdivision (a) of Section 31492 on account
of a member who retires before the operative date of this section
shall be equal to 55 percent of the retirement pension, if not
modified in accordance with the optional survivor allowance in
subdivision (b) of that section.
(b) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31493. (a) Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until he or she certifies to the board his or her election
to be covered by the retirement plan established by this article or
to be covered by the retirement provisions and benefits otherwise
available to members on the date preceding the effective date of this
article. As a condition of continued employment, the certification
shall be made within 60 days of employment. The employer shall make
available to the person a disclosure of the elements of each of the
available retirement plans prior to accepting his or her election.
(b) This section shall be applicable to persons who are eligible
for membership and are employed prior to January 1, 1991.
31493.5. (a) Any person employed who qualifies as a member shall
certify to the board his or her election to be covered by the
retirement plan established by this article or to be covered by the
retirement provisions and benefits otherwise available to members as
of the date of employment. Any person who dies prior to certifying
his or her election or who fails to certify his or her election
within the period set forth in subdivision (b) shall, as of the date
of death or the day immediately following the last day to certify his
or her election, be deemed to have elected to be covered by the
retirement plan established by this article.
(b) The election required to be made by subdivision (a) shall be
certified to the board:
(1) Within 30 days of employment if written disclosure materials
are provided by the employer pursuant to subdivision (c) within 14
days of employment, or
(2) Within 30 days of the receipt of written disclosure materials
provided by the employer if the employer fails to provide written
disclosure materials within 14 days of employment as required by
subdivision (c).
(c) The employer shall, within 14 days of the date of employment,
provide to each person who qualifies as a member, written disclosure
materials of the elements of each of the available retirement plans.
(d) This section shall be applicable to persons eligible for
general membership in Plans D and E who become employed on or after
January 1, 1991, and prior to January 1, 1992, and to persons who
were employed prior to January 1, 1991, who first became eligible for
membership on or after January 1, 1991, and before January 1, 1992.
31493.6. (a) Any person who qualifies as a member, and who has not
elected to be covered by the retirement provisions and benefits
available to members, shall become a member of the plan established
by this article as of the first day of the month following the date
of employment or date of eligibility for membership. Any person who
dies prior to certifying his or her election shall be deemed to have
elected to be covered by the retirement plan established by this
article.
(b) The employer shall, within 14 days of the date of employment
or eligibility for membership, provide to each person who qualifies
as a member, written disclosure materials of the elements of each of
the available retirement plans.
(c) Any person who has been enrolled in the plan provided for in
this article pursuant to subdivision (a) may elect to be covered by
any other retirement plan to which he or she is otherwise eligible,
provided that the election is made in writing and filed with the
board within 60 days from his or her beginning date of employment or
eligibility for membership, or within 45 days after receipt from the
employer of the materials required by subdivision (b), whichever is
later. Any person who makes the election shall be deemed to be a
member of the elected plan as of the first day of the month following
the date of employment or eligibility, and the county auditor shall
make appropriate deductions from the member's future salary warrant
to cover the member's contributions applicable to the period that the
member was deemed to be included in the plan covered by this
article.
(d) This section shall be applicable to persons eligible for
general membership who become employed on or after January 1, 1992,
and to persons who were employed prior to January 1, 1992, but who
did not become eligible for membership until January 1, 1992, or
later.
31494. (a) General members may elect to transfer to the retirement
plan created by this article upon proper application executed by the
member and filed with the board. That transfer is voluntary and shall
be irrevocable.
(b) The retirement benefits of the transferred members are
governed and defined by this article.
(c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits. However, notwithstanding any other
provision of this article, transferring members shall receive credit
for public service performed prior to the transfer, including service
with the employer, military service, and other public service to
which the member would otherwise be eligible under this chapter,
except that member contributions shall not be collected.
(d) This section shall be operative at any time or times as may be
mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
(e) This section shall be superseded by Section 31494.2 in any
county when Section 31494.2 becomes operative in the county.
31494.1. (a) In accordance with the provisions of this section,
general members, whose retirement benefits are governed by the
noncontributory plan created by this article, may transfer to the
contributory plan. Contributory plan shall mean that contributory
plan otherwise available to new members of the retirement system on
the election date. Transfer may be made by election upon written
application executed by the member and filed with the board on or
before the election date and shall be effective on the transfer date,
subject to the terms and conditions set forth in this section. The
election date shall be that date identified in the resolution adopted
by the board of supervisors declaring this section to be operative.
The transfer date shall be that date on which the member completes
deposit of all contributions required by Section 31494.3. The
election is voluntary and may be revoked upon written notice received
by the board prior to the transfer date.
(b) The retirement benefits of members electing to transfer and
transferred members shall be governed and defined by this section. In
the event of conflict, this section shall supersede and prevail over
other provisions, or application of provisions, otherwise contained
in this article.
(c) Transferred members relinquish, waive, and forfeit any and all
vested or accrued benefits available under any other retirement plan
provided to members of the retirement system, and shall be entitled
only to the benefits available under the contributory plan.
(d) Transferred members shall receive retirement service credit
for that period of service with the employer, for which the members
were otherwise eligible to receive credit under the plan created by
this article. Transferred members shall also receive retirement
service credit for that period of service for which the member made
contributions pursuant to Section 31490.5.
(e) Transferred members may receive retirement service credit for
service other than that with the employer, for which the members were
credited or were eligible to receive credit under the plan created
by this article, by written application executed by the member and
filed with the board on or before the election date.
(f) The employer, the members who have elected to transfer, and
transferred members shall make contributions to the retirement fund
in accordance with the rates, and in the same manner, as prescribed
under the contributory plan. The monthly contributions shall commence
for the month next following the transfer date or that date 120 days
after the election date, whichever is earlier.
(g) For purposes of calculating member contributions required
under Section 31494.3, the entry age of a transferred member shall be
that entry age as reflected in the retirement records maintained on
behalf of the board.
(h) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (a) of Section 31494.3
shall result in the cancellation of his or her election to transfer.
(i) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (b) or (c) of Section
31494.3 shall result in the cancellation and forfeiture of his or her
right to elect credit for other service under subdivision (e).
(j) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, or fail
to deposit all required contributions as required by Section 31494.3,
all member contributions and regular interest shall be refunded to
the member or member's survivor.
(k) Notwithstanding any other provision contained in this section
or Section 31494.3, in the event of the death of a member who has
elected to transfer prior to the transfer date, the spouse of the
member, or the minor children of the member if no spouse survives the
member, may elect to pay the balance of contributions required by
Section 31494.3, and if the contributions are deposited in the
retirement fund within 120 days after the death of the member, the
spouse of the member, or if no spouse survives the member, the minor
children of the member, shall be entitled to rights and benefits as
if the deceased member had deposited all contributions required by
Section 31494.3.
(l) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, all
member contributions and regular interest shall be refunded to the
member or the member's survivor.
(m) This section shall be operative at such time or times as may
be mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
31494.2. (a) A general member whose benefits are governed by
Retirement Plan D may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan E. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (d). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of this article on
and after the transfer date. Prior to the transfer date, the rights
to retirement, survivors', or other benefits payable to a member and
his or her survivors or beneficiaries shall continue to be governed
by Retirement Plan D.
(b) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan E
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, survivors', and other benefits that shall
consist of: (1) the benefits to which they are entitled under the
terms of Retirement Plan E, but based on the member's service
credited only under that plan, and payable at the time and in the
manner provided under Retirement Plan E, and (2) the benefits to
which they would have been entitled under the terms of Retirement
Plan D had the member remained a member of Retirement Plan D, but
based on the member's service credited only under that plan, and
payable at the time and in the manner provided under Retirement Plan
D. Except as otherwise provided in this section, the calculation of
the member's, survivors', or beneficiaries' benefits under each plan
shall be subject to that plan's respective, separate terms,
including, but not limited to, the definitions of "final compensation"
and provisions establishing cost-of-living adjustments, establishing
minimum retirement age and service requirements, and governing
integration with federal social security payments. Notwithstanding
the foregoing, the aggregate service credited under both retirement
plans shall be taken into account for the purpose of determining
eligibility for and vesting of benefits under each plan.
(c) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E:
(1) A member who has transferred to Retirement Plan E pursuant to
this section may not retire for disability and receive disability
retirement benefits under Retirement Plan D.
(2) If a member who has transferred to Retirement Plan E pursuant
to this section dies prior to retirement, that member's survivor or
beneficiary may not receive survivor or death benefits under
Retirement Plan D but shall receive a refund of the member's
contributions to Retirement Plan D together with all interest
credited thereto.
(d) As used in this section:
(1) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(2) "Retirement Plan D" means the contributory retirement plan
otherwise available to new members of the system on the transfer
date.
(3) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(4) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(e) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31494.3. (a) Members who have elected to transfer under Section
31494.1 shall be provided within 90 days of the election date the
cost of contributions required for that period of all creditable
service with the employer prior to the month for which monthly
contributions are to commence, as prescribed in subdivision (f) of
Section 31494.1, and shall deposit in the retirement fund, the amount
hereinafter provided in this subdivision, by lump sum, or regular
monthly installments, or both, over the period of time determined by
a resolution adopted by a majority vote of the board of retirement,
but in any event prior to the date of application for retirement or,
if applicable, the date provided in Section 31485.8, the date of
termination, or the date of death. The amount shall equal the sum of
the contributions a member would have made to the retirement fund for
that length of time as that for which the member shall receive
credit as service, computed in accordance with the rate of
contribution applicable to the member under the contributory plan,
based upon entry age, and in the same manner as prescribed under the
plan as if the plan had been in effect during the entire period of
all creditable service, together with regular interest thereon.
(b) All service previously purchased by the member pursuant to
Section 31490.5, if any, shall be recalculated in accordance with the
rate of contribution applicable to the member under the contributory
plan, based upon the entry age, and in the same manner as prescribed
under the plan as if the contributory plan had been in effect during
the entire period of all creditable service, together with regular
interest thereon. All contributions paid by the member pursuant to
Section 31490.5, if any, shall be credited toward the amount owed
under subdivision (a) and all periods of service credited under the
plan created by this article shall be transferred to the contributory
plan upon completion of payment of that amount.
(c) Any member who applies for service credit under subdivision
(e) of Section 31494.1 relating to federal and military service,
shall be provided within 90 days of the election date the cost of
contribution required for that service, and shall deposit in the
retirement fund the amount hereinafter provided in this subdivision
by lump sum, or regular monthly installments, or both, over the
period of time determined by a resolution adopted by a majority vote
of the board of retirement, but in any event prior to the date of
application for retirement, date of termination, or death. The amount
shall equal the sum of twice the contributions the member would have
made to the retirement fund for the length of time as that for which
the member has elected to receive credit as service, computed by
applying the rate of contribution applicable to the member under the
contributory plan, based upon entry age, to the monthly compensation
first earnable by the member as of the most recent date of entry into
the retirement system, multiplied by the number of months for which
the member has elected to receive credit, together with regular
interest thereon.
(d) Any member who applies for service credit under subdivision
(e) of Section 31494.1, relating to prior service as defined in the
bylaws of the board, other than qualifying service under Section
31490.5, and public service other than military and federal service,
shall be provided within 90 days of the election date the cost of
contribution required for that service, and shall deposit in the
retirement fund the amount hereinafter provided in this subdivision,
by lump sum or regular monthly installments, or both, over the period
of time determined by a resolution adopted by a majority vote of the
board of retirement, but in any event prior to the date of
application for retirement or, if applicable, prior to the date
provided in Section 31485.8, the date of termination, or the date of
death. The amount shall equal that sum of contributions the member
would have made to the retirement fund for the length of time as that
for which the member has elected to receive credit as service,
calculated in the same manner as prescribed in the bylaws of the
board relating to credit for prior service, except that such
contribution shall be computed by applying the rate of contribution
applicable to the member under the contributory plan, based upon
entry age.
(e) This section shall be operative in a county at such time or
times as may be mutually agreed to in memoranda of understanding
executed by the employer and employee representatives if the board of
supervisors adopts, by majority vote, a resolution declaring that
the section shall be operative in the county.
31494.5. (a) A general member whose benefits are governed by
Retirement Plan E may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan D. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (g). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of Retirement Plan
D on and after the transfer date. Prior to the transfer date, the
rights to retirement, survivors', or other benefits payable to a
member and his or her survivors or beneficiaries shall continue to be
governed by Retirement Plan E.
(b) If a member has made the election to change plans under
subdivision (a), monthly contributions by the member and the employer
under the terms of Retirement Plan D shall commence as of the
transfer date. For the purposes of calculating the member's
contribution rate under Retirement Plan D, his or her entry age shall
be deemed to be his or her age at his or her birthday nearest the
transfer date; however, if the member exchanges service credit in
accordance with subdivision (c), with regard to contributions made
for periods after that exchange, his or her entry age shall be
adjusted and deemed to be the member's age at his or her birthday
nearest the date on which begins the most recent period of unbroken
service credited under Retirement Plan D, taking into account service
purchased under subdivision (c). In no event shall the exchange of
service under subdivision (c) affect the entry age with respect to,
or the cost of, employee contributions made, or service purchased,
prior to the exchange.
(c) A general member who has elected to change plans under
subdivision (a) also may elect to exchange, at that time or any time
thereafter, but prior to the earlier of his or her application for
retirement, termination from employment, or death, some portion
designated in whole-month increments, or all of the service credited
under Retirement Plan E for an equivalent amount of service credited
under Retirement Plan D, provided, however, that the member may not
exchange less than 12 months' service or, if less, the total service
credited under Retirement Plan E. The exchange shall be effective on
the date when the member completes the purchase of that service by
depositing in the retirement fund, by lump sum or regular monthly
installments, over the period of time determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement,
the sum of: (1) the contributions the member would have made to the
retirement fund under Retirement Plan D for that length of time for
which the member shall receive credit as service under Retirement
Plan D, computed in accordance with the rate of contribution
applicable to the member under Retirement Plan D, based upon his or
her entry age, and in the same manner prescribed under Retirement
Plan D as if that plan had been in effect during the period for which
the member shall receive service credit, and (2) the regular
interest thereon.
For the purposes of this subdivision, a member's entry age shall
be deemed to be the member's age at his or her birthday nearest the
date on which begins the most recent period of unbroken service
credited under Retirement Plan D following completion of the service
exchange under this subdivision. A member may receive credit for a
period of service under only one plan and in no event shall a member
receive credit for the same period of service under both Retirement
Plan D and Retirement Plan E.
A member who fails to complete the purchase of service as required
under this subdivision shall be treated as completing an exchange of
service under Retirement Plan E for an equivalent amount of service
under Retirement Plan D only with regard to the service that actually
has been purchased through completed deposit with the retirement
fund of the requisite purchase amount, calculated in accordance with
this subdivision.
(d) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan D
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, disability, survivors', death, or other
benefits that shall consist of: (1) the benefits to which they are
entitled under the terms of Retirement Plan D, but based on the
member's service credited only under that plan, and payable at the
time and in the manner provided under Retirement Plan D, and (2) the
benefits to which they would have been entitled under the terms of
Retirement Plan E had the member remained a member of Retirement Plan
E, but based on the member's service credited only under that plan,
and payable at the time and in the manner provided under Retirement
Plan E. Except as otherwise provided in this section, the calculation
of the portion of a member's or beneficiary's benefit that is
attributable to each plan is subject to that plan's respective,
separate terms, including, but not limited to, the definitions of
"final compensation" and provisions establishing cost-of-living
adjustments, establishing minimum age and service requirements, and
governing integration with federal social security payments.
Notwithstanding the foregoing, the aggregate service credited under
both Retirement Plan D and Retirement Plan E shall be taken into
account for the purpose of determining eligibility for, and vesting
of, benefits under each plan.
(e) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E, a member who transfers into Retirement Plan D
under this section may retire for service-connected or
nonservice-connected disability and receive disability benefits under
Retirement Plan D only if he or she has either (1) completed two
continuous years of active service after his or her most recent
transfer date, or (2) earned five years of retirement service credit
under Retirement Plan D after his or her most recent transfer date.
Notwithstanding any other provision to the contrary, a member who
becomes disabled and does not meet either of these conditions (1) may
apply for and receive only a deferred or service retirement
allowance, or (2) may elect to transfer prospectively back to
Retirement Plan E, and for the purposes of calculating his or her
retirement benefits under this section, shall in lieu of credit under
Retirement Plan D be credited with service under Retirement Plan E
as provided under subdivision (g) of Section 31488 during any period
he or she is totally disabled and is receiving, or eligible to
receive, disability benefits, either during or after any elimination
or qualifying period, under a disability plan provided by the
employer up to the earlier of the date he or she retires or no longer
qualifies for disability benefits. If a member dies before he or she
is eligible to retire and before completing either two continuous
years of active service after the transfer date into Retirement Plan
D or after earning five years of retirement service credit under
Retirement Plan D after that transfer date, that member's beneficiary
shall not be entitled to the survivor allowance under Section
31781.1 or 31781.12, if operative.
(f) Notwithstanding any other provisions of Retirement Plan D or
Retirement Plan E, a member who has transferred to Retirement Plan D
pursuant to this section and who retires for disability when eligible
under this section and Retirement Plan D, may not also retire for
service and receive service retirement benefits under Retirement Plan
E. However, for the purpose of calculating disability benefits under
Retirement Plan D, the "sum to which he or she would be entitled as
service retirement" or his or her "service retirement allowance," as
those terms are used in Sections 31726, 31726.5, and 31727.4, shall
consist of the blended benefit to which the member would be entitled
under subdivision (d) if he or she retired for service, not just the
service retirement benefit to which he or she would be entitled under
Retirement Plan D.
(g) As used in this section:
(1) "Active service" means time spent on active, on-the-job
performance of the duties of a full-time or part-time position and on
any authorized paid leaves of absence; provided, however, that any
authorized paid leave of absence or part-time service shall not
constitute active service if the leave of absence or part-time
service is necessitated by a preexisting disability, injury, or
disease. The board of retirement shall determine whether or not a
leave of absence or part-time service is necessitated by a
preexisting disability, injury, or disease, and thus excluded from
the member's active service, based upon evidence presented by the
employer and the member upon request by the board.
(2) "Entry age" means the age used for calculating the normal rate
of contribution to Retirement Plan D with respect to a member who
has transferred membership to Retirement Plan D under this section.
(3) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(4) "Retirement Plan D" means the contributory retirement plan
otherwise available to new members of the retirement system on the
transfer date.
(5) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(6) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(h) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31495. Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.
31495.5. (a) Notwithstanding any other provision of this article,
every retirement allowance or death allowance payable, on or after
the operative date of this section, to or on account of any member of
Retirement Plan E who retires or dies or who has retired or died
shall, as of April 1 each year, be increased or decreased by an
amount equal to that member's automatic COLA, as defined in
subdivision (f) and as calculated by the board of retirement before
April 1 of each year. No decrease in the cost of living shall reduce
an allowance below the amount being received by the member or his or
her beneficiary on the effective date of the allowance or the
operative date of this section, whichever is later.
(b) A Retirement Plan E member may elect to purchase an elective
COLA, as defined in subdivision (f), with regard to some portion
(designated in whole-month increments) or all of his or her months of
Retirement Plan E service earned prior to the operative date of this
section. The member may also elect to purchase an elective COLA, as
defined in subdivision (f), with regard to some portion (designated
in whole-month increments) or all of his or her months of Retirement
Plan E service purchased pursuant to Section 31490.5, including
service rendered after June 4, 2002, but prior to becoming a member
of this system.
(c) The election shall be made upon written application signed by
the member and filed with the board pursuant to election procedures
and during election periods established by the board. The purchase of
the elective COLA shall be effective only when the member has paid
contributions necessary to purchase the designated amount of service
for which he or she shall receive the elective COLA. The amount of
required contributions shall be determined by the board, subject to
the following:
(1) The cost of purchasing service for elective COLA purposes
shall be determined by the board of retirement such that no elective
COLA liability shall be borne by the county and no diminution in the
funding ratio of the system shall result.
(2) The cost charged to the member for purchasing the elective
COLA service shall be based upon the assumption that the member
retires at the age of 65 years.
(3) Members may pay for the elective COLA by lump-sum payment or
monthly installments over a period to be determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement.
(4) If a member fails to timely complete the purchase of his or
her elective COLA, he or she shall receive an elective COLA
calculated only with regard to that amount of service actually
purchased.
(5) If a Retirement Plan E member dies prior to retirement, any
contributions made toward the purchase of an elective COLA, and all
interest credited thereto, shall be refunded to the deceased member's
surviving spouse or, if there is no surviving spouse, to the
deceased member's surviving child or children under the age of 18
years, divided among those children in equal amounts, or, if there is
no surviving spouse or surviving child or children under the age of
18 years, to the deceased member's estate.
(d) If a Retirement Plan E member elects and purchases an elective
COLA, then, notwithstanding any other provision of this article,
every Retirement Plan E allowance or postretirement death allowance
payable on and after the operative date of this section, to or on
account of that member who retires or dies or who has retired or died
shall, as of April 1 of each year, be increased or decreased by an
amount equal to that member's elective COLA as calculated by the
board of retirement before April 1 of each year. No decrease in the
cost of living shall reduce an allowance below the amount being
received by the member or his or her beneficiary on the effective
date of the allowance or this provision, whichever is later.
Notwithstanding any other provisions of this section, if a member
retires before attaining the age of 65 years, his or her elective
COLA shall be actuarially reduced to reflect that earlier retirement
age unless, within 120 days after his or her retirement, he or she
contributes by lump-sum the amount necessary to complete the purchase
of his or her elective COLA as determined by the board. If, upon a
member's retirement, the board of retirement determines that a member
has paid more contributions than necessary to purchase his or her
elective COLA in accordance with subdivision (b), the member s
31487. (a) The retirement plan created by this article shall be
known as Retirement Plan E.
(b) This article shall be applicable in the retirement system of
any county with a population in excess of six million, if the board
of supervisors executes a memorandum of understanding with employee
representatives and adopts, by majority vote, a resolution providing
that the article shall be applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) dealing with
reciprocal benefits shall be applicable, excluding those provisions
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions.
(h) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
(i) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
31488. Unless the context otherwise requires, the definitions
contained in this section, govern the construction of this article.
(a) As used in subdivisions (f) and (g) of Section 31491,
subdivisions (b) and (c) of Section 31492, and Section 31495, "board"
means the board of investments. In all other cases, "board" means
the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
monthly permanent basis of at least three-quarter time, as defined by
the employer, except an employee eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age at which full
retirement benefits are available under the federal system. This age
is deemed to be age 65 until June 30, 1983.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as otherwise herein provided, a member shall not be
credited with service for any payroll period in which no compensation
is received by the member.
Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
31489. (a) Except as otherwise provided in Section 31490.5 or
31490.6, there shall be no general members' contributions under the
plan created by this article.
(b) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account. Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. A refund under this section shall be payable to the
member.
31490. (a) Except as provided in Sections 31490.5 and 31494, and
under reciprocal provisions of this article, a member who was in
public service prior to becoming a member may not elect to receive
credit in this retirement plan for that public service time, and
shall not receive credit for that prior public service.
(b) Absence from work or termination of employment while an
eligible employee or disability beneficiary, as defined by a
disability plan provided by the employer, shall not be considered as
breaking the continuity of service.
(c) For the purposes of subdivision (b) of Section 31491, an
unpaid leave of absence of not to exceed one year, or a leave of
absence for which an employee receives any benefit that has been
approved by the employer, shall not be considered an interruption of
service. However, a payroll period in which no compensation is
received by a member shall not be considered as service in
calculating the benefits otherwise provided under this article.
31490.5. (a) An active member governed by the provisions of this
article may elect, by written notice filed with the board, to make
contributions and receive credit under this plan for service for
which he or she would not otherwise be entitled to receive credit
pursuant to this article.
(b) Any member who elects to receive service credit pursuant to
this section shall have the same purchase rights and shall contribute
to the retirement fund the amount that a member in the contributory
plan wishing to purchase the same service would have to contribute,
based on the rates applicable to a member of the contributory plan
with the same date of entry into membership. Payment shall be made by
lump-sum payment or by installment payments over a period not to
exceed 10 years, prior to the effective date of his or her retirement
or, if applicable, prior to the date provided in Section 31485.8.
(c) No member may receive any service credit under this section
for which he or she has not completed payment pursuant to subdivision
(b) before the effective date of his or her retirement or, if
applicable, before the date provided in Section 31485.8. Subject to
the limitations of federal law, a member who has elected to make
payments in installments may complete payment by lump sum at any time
prior to the effective date of his or her retirement.
(d) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(e) As used in this section, the "contributory plan" means that
contributory plan otherwise available to new members of the system on
the election date.
(f) This section is not operative until the board of supervisors
elects, by resolution adopted by a majority vote, to make this
section operative in the county.
31490.6. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
(d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.8. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
(f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative until the board of supervisors,
by resolution adopted by majority vote, makes this section operative
in the county.
31490.7. Upon the death of an active or former member of the plan
established by this article, an amount equal to the accumulated
contributions made by the member pursuant to this article, with
interest on that amount, shall be paid to the member's beneficiaries.
31491. (a) Retirement of a member or former member who has met the
requirements for age and service shall be made by the board, at which
time the member or former member becomes a retired member.
(b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
(c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
(d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
(e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
(f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55............................... .39
56............................... .43
57............................... .47
58............................... .51
59............................... .56
60............................... .61
61............................... .67
62............................... .74
63............................... .82
64............................... .90
The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
(g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
(1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
(2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
(i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31492.
(j) Notwithstanding subdivision (e) of Section 31491, any retired
member receiving a normal retirement pension shall, as soon as
possible but not later than six months following retirement, present
evidence required by the board of the retired member's actual primary
insurance amount. For purposes of this subdivision, the actual
primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work. Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.
31491.1. (a) Notwithstanding Section 31491, any retired member
receiving a retirement pension may present evidence in the form
required by the board of the retired member's actual primary
insurance amount. For the purposes of this section, the actual
primary insurance amount shall be the amount being paid under the
federal system. Following receipt of that evidence, the board shall
adjust the retired member's pension to equal the amount of the
pension to which he or she would have been entitled on that date had
the estimated primary insurance amount equaled the actual insurance
amount.
(b) The adjustment calculated in subdivision (a) shall be applied
to the retired member's pension beginning in the month upon which the
retired member presents evidence required by the board.
(c) This section shall not be operative in any county until the
board of supervisors, by resolution adopted by majority vote, makes
this section applicable.
31491.2. (a) Notwithstanding Section 31491, any retired member
receiving a retirement pension may present evidence in the form
required by the board of the retired member's federal estimated
primary insurance amount provided that the retired member is not
receiving a federal primary insurance amount. For the purposes of
this section, the federal estimated primary insurance amount shall be
the amount payable under the federal system as of the retired member'
s normal federal retirement age. Should the federal estimated primary
insurance amount equal zero, the retired member shall not have his
or her pension benefit reduced for an estimated primary insurance
amount as required in subdivision (e) of Section 31491.
(b) Following receipt of that evidence, the board shall adjust the
retired member's pension to equal the amount of the pension to which
he or she would have been entitled on that date had the estimated
primary insurance amount calculated in Section 31491 equaled zero.
(c) The adjustment calculated in subdivision (a) shall be applied
to the retired member's pension beginning in the month upon which the
retired member presents evidence required by the board.
(d) Notwithstanding subdivision (a), upon attaining federal
retirement age, the retired member shall submit any evidence as may
be required by the board of the retired members' federal estimated or
actual primary insurance amount. Following receipt of that evidence,
the board shall adjust the retired member's pension in accordance
with subdivision (j) of Section 31491.
(e) This section shall not be operative in any county until the
board of supervisors, by resolution adopted by majority vote, makes
this section applicable.
31491.3. (a) Notwithstanding subdivision (f) of Section 31491, for
those members retiring on or after the operative date of this
section, the early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount that is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55............................... .3748
56............................... .4109
57............................... .4511
58............................... .4957
59............................... .5454
60............................... .6009
61............................... .6631
62............................... .7328
63............................... .8113
64............................... .8998
(b) For those members retiring on or after the operative date of
this section, paragraph (2) of subdivision (g) of Section 31491 shall
not apply, but with regard to those members who have not attained
the age of 62 years as of the date of retirement (1) future earnings
in employment covered by the federal system shall be assumed to
continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of
employment of a vested member, whichever is applicable, until the
member attains the age of 62 years, and (2) future wage bases, as
defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of employment of a vested member, whichever is
applicable, until the member attains the age of 62 years, and (3)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(c) Notwithstanding subdivision (e) or subdivision (j) of Section
31491, any member who retires on or after the operative date of this
section, and after attaining the age of 62 years may, as soon as
possible but not later than six months following retirement, present
evidence required by the board demonstrating the retired member's
actual primary insurance amount. For purposes of this subdivision,
the actual primary insurance amount shall be the amount actually
payable under the federal system on the retired member's date of
retirement without regard to delayed retirement credit or any
deductions on account of work, or the estimate of that amount as set
forth on a current earnings and benefits estimate statement provided
by the Social Security Administration. Following receipt of that
evidence, the board shall adjust the retired member's pension from
the date of retirement to equal the amount of the pension to which he
or she would have been entitled on that date had the estimated
primary insurance amount equaled the actual primary insurance amount.
(d) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31492. (a) (1) Upon the death of a retired member, 50 percent of
the retirement pension, if not modified in accordance with the
optional survivor allowance in subdivision (c) or (d), shall be
continued during and throughout the life of his or her surviving
spouse, if she or he was married to the member at least one year
prior to the date of retirement. If there is no surviving spouse
entitled to this allowance, or if he or she dies before every child
of the deceased retired member, including every stepchild or adopted
child, attains the age of 18 years, then the allowance that the
spouse would have received had she or he survived shall be paid to
the deceased retired member's child or children under the age of 18
years. If the survivor allowance is to be paid to surviving children,
it shall be divided among the children in equal shares. However, the
right of any child to share in the allowance shall cease upon his or
her death, marriage, or attaining the age of 18 years.
(2) Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21 years, if the
children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
(b) If, upon the death of a retired member, there is no surviving
spouse or child entitled to the allowance under this section, and the
total retirement allowance income received by the member during his
or her lifetime did not equal or exceed his or her accumulated normal
contributions, if any, the member's designated beneficiary shall be
paid an amount equal to the excess of his or her accumulated normal
contributions over his or her total retirement allowance income.
(c) (1) A vested member, or vested former member, in lieu of the
retirement allowance and survivor allowance, if any, otherwise
payable to a retired member and his or her surviving spouse pursuant
to this article, may elect to have the actuarial equivalent of these
benefits, as of the date of retirement, applied to a lesser amount
payable throughout the retired member's life and to an increased
survivor allowance as approved by the board, upon the advice of the
actuary, continued throughout the life of and paid to his or her
surviving spouse, if he or she was married to the member at least one
year prior to the date of retirement. If there is no surviving
spouse entitled to this allowance, or if he or she dies before every
child of the deceased retired member, including every stepchild and
adopted child, attains the age of 18 years, then the increased
survivor allowance that the spouse would have received had he or she
survived shall be paid to the deceased retired member's child or
children under the age of 18 years. If the increased survivor
allowance is to be paid to surviving children, it shall be divided
among the children in equal shares. However, the right of any child
to share in the allowance shall cease upon his or her death,
marriage, or attaining the age of 18 years.
(2) Notwithstanding any other provision of this subdivision, the
increased allowance otherwise payable to the children of the retired
member shall be paid to the children through the age of 21 years if
the children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
(3) The election pursuant to this subdivision may not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system. If a member makes the election, the
member's normal or early retirement benefit shall be reduced by the
additional actuarial cost to the system resulting from the increased
survivor allowance. The actuarial cost of the survivor allowance
payable under this subdivision shall be calculated taking into
account the life expectancy of the member's surviving spouse.
(4) This subdivision is not operative unless the county board of
supervisors, by resolution adopted by a majority vote, makes this
subdivision operative in the county. This subdivision applies only to
members who retire after the operative date of this subdivision.
(d) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone and the survivor allowance, if any, that would be payable under
subdivision (a) or (c), may elect to have the actuarial equivalent
of the retired member's pension as of the date of retirement applied
to a lesser amount payable throughout the retired member's life, and
to a survivor allowance as approved by the board, upon the advice of
the actuary, that, upon the death of the retired member, shall
continue throughout the life of and be paid to the person or persons
having an insurable interest in the life of the retired member, as
the member or former member nominates by written designation duly
executed and filed with the board at the time of retirement. The
member's normal or early retirement benefit shall be reduced by the
actuarial cost of the survivor allowance elected.
31492.1. (a) Notwithstanding Section 31492, each monthly survivor
allowance paid pursuant to subdivision (a) of Section 31492 on
account of a member who retires on or after the operative date of
this section shall be equal to 55 percent of the retirement pension,
if not modified in accordance with the optional survivor allowance in
subdivision (c) or (d) of that section.
(b) This section is only applicable to Los Angeles County and is
not operative until the board of supervisors of that county elects,
by resolution adopted by a majority vote, to make this section
operative in the county.
31492.2. (a) Notwithstanding the provisions of Section 31492, each
monthly survivor allowance paid on or after the operative date of
this section pursuant to subdivision (a) of Section 31492 on account
of a member who retires before the operative date of this section
shall be equal to 55 percent of the retirement pension, if not
modified in accordance with the optional survivor allowance in
subdivision (b) of that section.
(b) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31493. (a) Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until he or she certifies to the board his or her election
to be covered by the retirement plan established by this article or
to be covered by the retirement provisions and benefits otherwise
available to members on the date preceding the effective date of this
article. As a condition of continued employment, the certification
shall be made within 60 days of employment. The employer shall make
available to the person a disclosure of the elements of each of the
available retirement plans prior to accepting his or her election.
(b) This section shall be applicable to persons who are eligible
for membership and are employed prior to January 1, 1991.
31493.5. (a) Any person employed who qualifies as a member shall
certify to the board his or her election to be covered by the
retirement plan established by this article or to be covered by the
retirement provisions and benefits otherwise available to members as
of the date of employment. Any person who dies prior to certifying
his or her election or who fails to certify his or her election
within the period set forth in subdivision (b) shall, as of the date
of death or the day immediately following the last day to certify his
or her election, be deemed to have elected to be covered by the
retirement plan established by this article.
(b) The election required to be made by subdivision (a) shall be
certified to the board:
(1) Within 30 days of employment if written disclosure materials
are provided by the employer pursuant to subdivision (c) within 14
days of employment, or
(2) Within 30 days of the receipt of written disclosure materials
provided by the employer if the employer fails to provide written
disclosure materials within 14 days of employment as required by
subdivision (c).
(c) The employer shall, within 14 days of the date of employment,
provide to each person who qualifies as a member, written disclosure
materials of the elements of each of the available retirement plans.
(d) This section shall be applicable to persons eligible for
general membership in Plans D and E who become employed on or after
January 1, 1991, and prior to January 1, 1992, and to persons who
were employed prior to January 1, 1991, who first became eligible for
membership on or after January 1, 1991, and before January 1, 1992.
31493.6. (a) Any person who qualifies as a member, and who has not
elected to be covered by the retirement provisions and benefits
available to members, shall become a member of the plan established
by this article as of the first day of the month following the date
of employment or date of eligibility for membership. Any person who
dies prior to certifying his or her election shall be deemed to have
elected to be covered by the retirement plan established by this
article.
(b) The employer shall, within 14 days of the date of employment
or eligibility for membership, provide to each person who qualifies
as a member, written disclosure materials of the elements of each of
the available retirement plans.
(c) Any person who has been enrolled in the plan provided for in
this article pursuant to subdivision (a) may elect to be covered by
any other retirement plan to which he or she is otherwise eligible,
provided that the election is made in writing and filed with the
board within 60 days from his or her beginning date of employment or
eligibility for membership, or within 45 days after receipt from the
employer of the materials required by subdivision (b), whichever is
later. Any person who makes the election shall be deemed to be a
member of the elected plan as of the first day of the month following
the date of employment or eligibility, and the county auditor shall
make appropriate deductions from the member's future salary warrant
to cover the member's contributions applicable to the period that the
member was deemed to be included in the plan covered by this
article.
(d) This section shall be applicable to persons eligible for
general membership who become employed on or after January 1, 1992,
and to persons who were employed prior to January 1, 1992, but who
did not become eligible for membership until January 1, 1992, or
later.
31494. (a) General members may elect to transfer to the retirement
plan created by this article upon proper application executed by the
member and filed with the board. That transfer is voluntary and shall
be irrevocable.
(b) The retirement benefits of the transferred members are
governed and defined by this article.
(c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits. However, notwithstanding any other
provision of this article, transferring members shall receive credit
for public service performed prior to the transfer, including service
with the employer, military service, and other public service to
which the member would otherwise be eligible under this chapter,
except that member contributions shall not be collected.
(d) This section shall be operative at any time or times as may be
mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
(e) This section shall be superseded by Section 31494.2 in any
county when Section 31494.2 becomes operative in the county.
31494.1. (a) In accordance with the provisions of this section,
general members, whose retirement benefits are governed by the
noncontributory plan created by this article, may transfer to the
contributory plan. Contributory plan shall mean that contributory
plan otherwise available to new members of the retirement system on
the election date. Transfer may be made by election upon written
application executed by the member and filed with the board on or
before the election date and shall be effective on the transfer date,
subject to the terms and conditions set forth in this section. The
election date shall be that date identified in the resolution adopted
by the board of supervisors declaring this section to be operative.
The transfer date shall be that date on which the member completes
deposit of all contributions required by Section 31494.3. The
election is voluntary and may be revoked upon written notice received
by the board prior to the transfer date.
(b) The retirement benefits of members electing to transfer and
transferred members shall be governed and defined by this section. In
the event of conflict, this section shall supersede and prevail over
other provisions, or application of provisions, otherwise contained
in this article.
(c) Transferred members relinquish, waive, and forfeit any and all
vested or accrued benefits available under any other retirement plan
provided to members of the retirement system, and shall be entitled
only to the benefits available under the contributory plan.
(d) Transferred members shall receive retirement service credit
for that period of service with the employer, for which the members
were otherwise eligible to receive credit under the plan created by
this article. Transferred members shall also receive retirement
service credit for that period of service for which the member made
contributions pursuant to Section 31490.5.
(e) Transferred members may receive retirement service credit for
service other than that with the employer, for which the members were
credited or were eligible to receive credit under the plan created
by this article, by written application executed by the member and
filed with the board on or before the election date.
(f) The employer, the members who have elected to transfer, and
transferred members shall make contributions to the retirement fund
in accordance with the rates, and in the same manner, as prescribed
under the contributory plan. The monthly contributions shall commence
for the month next following the transfer date or that date 120 days
after the election date, whichever is earlier.
(g) For purposes of calculating member contributions required
under Section 31494.3, the entry age of a transferred member shall be
that entry age as reflected in the retirement records maintained on
behalf of the board.
(h) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (a) of Section 31494.3
shall result in the cancellation of his or her election to transfer.
(i) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (b) or (c) of Section
31494.3 shall result in the cancellation and forfeiture of his or her
right to elect credit for other service under subdivision (e).
(j) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, or fail
to deposit all required contributions as required by Section 31494.3,
all member contributions and regular interest shall be refunded to
the member or member's survivor.
(k) Notwithstanding any other provision contained in this section
or Section 31494.3, in the event of the death of a member who has
elected to transfer prior to the transfer date, the spouse of the
member, or the minor children of the member if no spouse survives the
member, may elect to pay the balance of contributions required by
Section 31494.3, and if the contributions are deposited in the
retirement fund within 120 days after the death of the member, the
spouse of the member, or if no spouse survives the member, the minor
children of the member, shall be entitled to rights and benefits as
if the deceased member had deposited all contributions required by
Section 31494.3.
(l) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, all
member contributions and regular interest shall be refunded to the
member or the member's survivor.
(m) This section shall be operative at such time or times as may
be mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
31494.2. (a) A general member whose benefits are governed by
Retirement Plan D may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan E. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (d). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of this article on
and after the transfer date. Prior to the transfer date, the rights
to retirement, survivors', or other benefits payable to a member and
his or her survivors or beneficiaries shall continue to be governed
by Retirement Plan D.
(b) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan E
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, survivors', and other benefits that shall
consist of: (1) the benefits to which they are entitled under the
terms of Retirement Plan E, but based on the member's service
credited only under that plan, and payable at the time and in the
manner provided under Retirement Plan E, and (2) the benefits to
which they would have been entitled under the terms of Retirement
Plan D had the member remained a member of Retirement Plan D, but
based on the member's service credited only under that plan, and
payable at the time and in the manner provided under Retirement Plan
D. Except as otherwise provided in this section, the calculation of
the member's, survivors', or beneficiaries' benefits under each plan
shall be subject to that plan's respective, separate terms,
including, but not limited to, the definitions of "final compensation"
and provisions establishing cost-of-living adjustments, establishing
minimum retirement age and service requirements, and governing
integration with federal social security payments. Notwithstanding
the foregoing, the aggregate service credited under both retirement
plans shall be taken into account for the purpose of determining
eligibility for and vesting of benefits under each plan.
(c) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E:
(1) A member who has transferred to Retirement Plan E pursuant to
this section may not retire for disability and receive disability
retirement benefits under Retirement Plan D.
(2) If a member who has transferred to Retirement Plan E pursuant
to this section dies prior to retirement, that member's survivor or
beneficiary may not receive survivor or death benefits under
Retirement Plan D but shall receive a refund of the member's
contributions to Retirement Plan D together with all interest
credited thereto.
(d) As used in this section:
(1) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(2) "Retirement Plan D" means the contributory retirement plan
otherwise available to new members of the system on the transfer
date.
(3) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(4) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(e) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31494.3. (a) Members who have elected to transfer under Section
31494.1 shall be provided within 90 days of the election date the
cost of contributions required for that period of all creditable
service with the employer prior to the month for which monthly
contributions are to commence, as prescribed in subdivision (f) of
Section 31494.1, and shall deposit in the retirement fund, the amount
hereinafter provided in this subdivision, by lump sum, or regular
monthly installments, or both, over the period of time determined by
a resolution adopted by a majority vote of the board of retirement,
but in any event prior to the date of application for retirement or,
if applicable, the date provided in Section 31485.8, the date of
termination, or the date of death. The amount shall equal the sum of
the contributions a member would have made to the retirement fund for
that length of time as that for which the member shall receive
credit as service, computed in accordance with the rate of
contribution applicable to the member under the contributory plan,
based upon entry age, and in the same manner as prescribed under the
plan as if the plan had been in effect during the entire period of
all creditable service, together with regular interest thereon.
(b) All service previously purchased by the member pursuant to
Section 31490.5, if any, shall be recalculated in accordance with the
rate of contribution applicable to the member under the contributory
plan, based upon the entry age, and in the same manner as prescribed
under the plan as if the contributory plan had been in effect during
the entire period of all creditable service, together with regular
interest thereon. All contributions paid by the member pursuant to
Section 31490.5, if any, shall be credited toward the amount owed
under subdivision (a) and all periods of service credited under the
plan created by this article shall be transferred to the contributory
plan upon completion of payment of that amount.
(c) Any member who applies for service credit under subdivision
(e) of Section 31494.1 relating to federal and military service,
shall be provided within 90 days of the election date the cost of
contribution required for that service, and shall deposit in the
retirement fund the amount hereinafter provided in this subdivision
by lump sum, or regular monthly installments, or both, over the
period of time determined by a resolution adopted by a majority vote
of the board of retirement, but in any event prior to the date of
application for retirement, date of termination, or death. The amount
shall equal the sum of twice the contributions the member would have
made to the retirement fund for the length of time as that for which
the member has elected to receive credit as service, computed by
applying the rate of contribution applicable to the member under the
contributory plan, based upon entry age, to the monthly compensation
first earnable by the member as of the most recent date of entry into
the retirement system, multiplied by the number of months for which
the member has elected to receive credit, together with regular
interest thereon.
(d) Any member who applies for service credit under subdivision
(e) of Section 31494.1, relating to prior service as defined in the
bylaws of the board, other than qualifying service under Section
31490.5, and public service other than military and federal service,
shall be provided within 90 days of the election date the cost of
contribution required for that service, and shall deposit in the
retirement fund the amount hereinafter provided in this subdivision,
by lump sum or regular monthly installments, or both, over the period
of time determined by a resolution adopted by a majority vote of the
board of retirement, but in any event prior to the date of
application for retirement or, if applicable, prior to the date
provided in Section 31485.8, the date of termination, or the date of
death. The amount shall equal that sum of contributions the member
would have made to the retirement fund for the length of time as that
for which the member has elected to receive credit as service,
calculated in the same manner as prescribed in the bylaws of the
board relating to credit for prior service, except that such
contribution shall be computed by applying the rate of contribution
applicable to the member under the contributory plan, based upon
entry age.
(e) This section shall be operative in a county at such time or
times as may be mutually agreed to in memoranda of understanding
executed by the employer and employee representatives if the board of
supervisors adopts, by majority vote, a resolution declaring that
the section shall be operative in the county.
31494.5. (a) A general member whose benefits are governed by
Retirement Plan E may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan D. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (g). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of Retirement Plan
D on and after the transfer date. Prior to the transfer date, the
rights to retirement, survivors', or other benefits payable to a
member and his or her survivors or beneficiaries shall continue to be
governed by Retirement Plan E.
(b) If a member has made the election to change plans under
subdivision (a), monthly contributions by the member and the employer
under the terms of Retirement Plan D shall commence as of the
transfer date. For the purposes of calculating the member's
contribution rate under Retirement Plan D, his or her entry age shall
be deemed to be his or her age at his or her birthday nearest the
transfer date; however, if the member exchanges service credit in
accordance with subdivision (c), with regard to contributions made
for periods after that exchange, his or her entry age shall be
adjusted and deemed to be the member's age at his or her birthday
nearest the date on which begins the most recent period of unbroken
service credited under Retirement Plan D, taking into account service
purchased under subdivision (c). In no event shall the exchange of
service under subdivision (c) affect the entry age with respect to,
or the cost of, employee contributions made, or service purchased,
prior to the exchange.
(c) A general member who has elected to change plans under
subdivision (a) also may elect to exchange, at that time or any time
thereafter, but prior to the earlier of his or her application for
retirement, termination from employment, or death, some portion
designated in whole-month increments, or all of the service credited
under Retirement Plan E for an equivalent amount of service credited
under Retirement Plan D, provided, however, that the member may not
exchange less than 12 months' service or, if less, the total service
credited under Retirement Plan E. The exchange shall be effective on
the date when the member completes the purchase of that service by
depositing in the retirement fund, by lump sum or regular monthly
installments, over the period of time determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement,
the sum of: (1) the contributions the member would have made to the
retirement fund under Retirement Plan D for that length of time for
which the member shall receive credit as service under Retirement
Plan D, computed in accordance with the rate of contribution
applicable to the member under Retirement Plan D, based upon his or
her entry age, and in the same manner prescribed under Retirement
Plan D as if that plan had been in effect during the period for which
the member shall receive service credit, and (2) the regular
interest thereon.
For the purposes of this subdivision, a member's entry age shall
be deemed to be the member's age at his or her birthday nearest the
date on which begins the most recent period of unbroken service
credited under Retirement Plan D following completion of the service
exchange under this subdivision. A member may receive credit for a
period of service under only one plan and in no event shall a member
receive credit for the same period of service under both Retirement
Plan D and Retirement Plan E.
A member who fails to complete the purchase of service as required
under this subdivision shall be treated as completing an exchange of
service under Retirement Plan E for an equivalent amount of service
under Retirement Plan D only with regard to the service that actually
has been purchased through completed deposit with the retirement
fund of the requisite purchase amount, calculated in accordance with
this subdivision.
(d) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan D
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, disability, survivors', death, or other
benefits that shall consist of: (1) the benefits to which they are
entitled under the terms of Retirement Plan D, but based on the
member's service credited only under that plan, and payable at the
time and in the manner provided under Retirement Plan D, and (2) the
benefits to which they would have been entitled under the terms of
Retirement Plan E had the member remained a member of Retirement Plan
E, but based on the member's service credited only under that plan,
and payable at the time and in the manner provided under Retirement
Plan E. Except as otherwise provided in this section, the calculation
of the portion of a member's or beneficiary's benefit that is
attributable to each plan is subject to that plan's respective,
separate terms, including, but not limited to, the definitions of
"final compensation" and provisions establishing cost-of-living
adjustments, establishing minimum age and service requirements, and
governing integration with federal social security payments.
Notwithstanding the foregoing, the aggregate service credited under
both Retirement Plan D and Retirement Plan E shall be taken into
account for the purpose of determining eligibility for, and vesting
of, benefits under each plan.
(e) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E, a member who transfers into Retirement Plan D
under this section may retire for service-connected or
nonservice-connected disability and receive disability benefits under
Retirement Plan D only if he or she has either (1) completed two
continuous years of active service after his or her most recent
transfer date, or (2) earned five years of retirement service credit
under Retirement Plan D after his or her most recent transfer date.
Notwithstanding any other provision to the contrary, a member who
becomes disabled and does not meet either of these conditions (1) may
apply for and receive only a deferred or service retirement
allowance, or (2) may elect to transfer prospectively back to
Retirement Plan E, and for the purposes of calculating his or her
retirement benefits under this section, shall in lieu of credit under
Retirement Plan D be credited with service under Retirement Plan E
as provided under subdivision (g) of Section 31488 during any period
he or she is totally disabled and is receiving, or eligible to
receive, disability benefits, either during or after any elimination
or qualifying period, under a disability plan provided by the
employer up to the earlier of the date he or she retires or no longer
qualifies for disability benefits. If a member dies before he or she
is eligible to retire and before completing either two continuous
years of active service after the transfer date into Retirement Plan
D or after earning five years of retirement service credit under
Retirement Plan D after that transfer date, that member's beneficiary
shall not be entitled to the survivor allowance under Section
31781.1 or 31781.12, if operative.
(f) Notwithstanding any other provisions of Retirement Plan D or
Retirement Plan E, a member who has transferred to Retirement Plan D
pursuant to this section and who retires for disability when eligible
under this section and Retirement Plan D, may not also retire for
service and receive service retirement benefits under Retirement Plan
E. However, for the purpose of calculating disability benefits under
Retirement Plan D, the "sum to which he or she would be entitled as
service retirement" or his or her "service retirement allowance," as
those terms are used in Sections 31726, 31726.5, and 31727.4, shall
consist of the blended benefit to which the member would be entitled
under subdivision (d) if he or she retired for service, not just the
service retirement benefit to which he or she would be entitled under
Retirement Plan D.
(g) As used in this section:
(1) "Active service" means time spent on active, on-the-job
performance of the duties of a full-time or part-time position and on
any authorized paid leaves of absence; provided, however, that any
authorized paid leave of absence or part-time service shall not
constitute active service if the leave of absence or part-time
service is necessitated by a preexisting disability, injury, or
disease. The board of retirement shall determine whether or not a
leave of absence or part-time service is necessitated by a
preexisting disability, injury, or disease, and thus excluded from
the member's active service, based upon evidence presented by the
employer and the member upon request by the board.
(2) "Entry age" means the age used for calculating the normal rate
of contribution to Retirement Plan D with respect to a member who
has transferred membership to Retirement Plan D under this section.
(3) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(4) "Retirement Plan D" means the contributory retirement plan
otherwise available to new members of the retirement system on the
transfer date.
(5) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(6) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(h) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31495. Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.
31495.5. (a) Notwithstanding any other provision of this article,
every retirement allowance or death allowance payable, on or after
the operative date of this section, to or on account of any member of
Retirement Plan E who retires or dies or who has retired or died
shall, as of April 1 each year, be increased or decreased by an
amount equal to that member's automatic COLA, as defined in
subdivision (f) and as calculated by the board of retirement before
April 1 of each year. No decrease in the cost of living shall reduce
an allowance below the amount being received by the member or his or
her beneficiary on the effective date of the allowance or the
operative date of this section, whichever is later.
(b) A Retirement Plan E member may elect to purchase an elective
COLA, as defined in subdivision (f), with regard to some portion
(designated in whole-month increments) or all of his or her months of
Retirement Plan E service earned prior to the operative date of this
section. The member may also elect to purchase an elective COLA, as
defined in subdivision (f), with regard to some portion (designated
in whole-month increments) or all of his or her months of Retirement
Plan E service purchased pursuant to Section 31490.5, including
service rendered after June 4, 2002, but prior to becoming a member
of this system.
(c) The election shall be made upon written application signed by
the member and filed with the board pursuant to election procedures
and during election periods established by the board. The purchase of
the elective COLA shall be effective only when the member has paid
contributions necessary to purchase the designated amount of service
for which he or she shall receive the elective COLA. The amount of
required contributions shall be determined by the board, subject to
the following:
(1) The cost of purchasing service for elective COLA purposes
shall be determined by the board of retirement such that no elective
COLA liability shall be borne by the county and no diminution in the
funding ratio of the system shall result.
(2) The cost charged to the member for purchasing the elective
COLA service shall be based upon the assumption that the member
retires at the age of 65 years.
(3) Members may pay for the elective COLA by lump-sum payment or
monthly installments over a period to be determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement.
(4) If a member fails to timely complete the purchase of his or
her elective COLA, he or she shall receive an elective COLA
calculated only with regard to that amount of service actually
purchased.
(5) If a Retirement Plan E member dies prior to retirement, any
contributions made toward the purchase of an elective COLA, and all
interest credited thereto, shall be refunded to the deceased member's
surviving spouse or, if there is no surviving spouse, to the
deceased member's surviving child or children under the age of 18
years, divided among those children in equal amounts, or, if there is
no surviving spouse or surviving child or children under the age of
18 years, to the deceased member's estate.
(d) If a Retirement Plan E member elects and purchases an elective
COLA, then, notwithstanding any other provision of this article,
every Retirement Plan E allowance or postretirement death allowance
payable on and after the operative date of this section, to or on
account of that member who retires or dies or who has retired or died
shall, as of April 1 of each year, be increased or decreased by an
amount equal to that member's elective COLA as calculated by the
board of retirement before April 1 of each year. No decrease in the
cost of living shall reduce an allowance below the amount being
received by the member or his or her beneficiary on the effective
date of the allowance or this provision, whichever is later.
Notwithstanding any other provisions of this section, if a member
retires before attaining the age of 65 years, his or her elective
COLA shall be actuarially reduced to reflect that earlier retirement
age unless, within 120 days after his or her retirement, he or she
contributes by lump-sum the amount necessary to complete the purchase
of his or her elective COLA as determined by the board. If, upon a
member's retirement, the board of retirement determines that a member
has paid more contributions than necessary to purchase his or her
elective COLA in accordance with subdivision (b), the member s
31487. (a) The retirement plan created by this article shall be
known as Retirement Plan E.
(b) This article shall be applicable in the retirement system of
any county with a population in excess of six million, if the board
of supervisors executes a memorandum of understanding with employee
representatives and adopts, by majority vote, a resolution providing
that the article shall be applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) dealing with
reciprocal benefits shall be applicable, excluding those provisions
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions.
(h) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
(i) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
31488. Unless the context otherwise requires, the definitions
contained in this section, govern the construction of this article.
(a) As used in subdivisions (f) and (g) of Section 31491,
subdivisions (b) and (c) of Section 31492, and Section 31495, "board"
means the board of investments. In all other cases, "board" means
the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
monthly permanent basis of at least three-quarter time, as defined by
the employer, except an employee eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age at which full
retirement benefits are available under the federal system. This age
is deemed to be age 65 until June 30, 1983.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as otherwise herein provided, a member shall not be
credited with service for any payroll period in which no compensation
is received by the member.
Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
31489. (a) Except as otherwise provided in Section 31490.5 or
31490.6, there shall be no general members' contributions under the
plan created by this article.
(b) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account. Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. A refund under this section shall be payable to the
member.
31490. (a) Except as provided in Sections 31490.5 and 31494, and
under reciprocal provisions of this article, a member who was in
public service prior to becoming a member may not elect to receive
credit in this retirement plan for that public service time, and
shall not receive credit for that prior public service.
(b) Absence from work or termination of employment while an
eligible employee or disability beneficiary, as defined by a
disability plan provided by the employer, shall not be considered as
breaking the continuity of service.
(c) For the purposes of subdivision (b) of Section 31491, an
unpaid leave of absence of not to exceed one year, or a leave of
absence for which an employee receives any benefit that has been
approved by the employer, shall not be considered an interruption of
service. However, a payroll period in which no compensation is
received by a member shall not be considered as service in
calculating the benefits otherwise provided under this article.
31490.5. (a) An active member governed by the provisions of this
article may elect, by written notice filed with the board, to make
contributions and receive credit under this plan for service for
which he or she would not otherwise be entitled to receive credit
pursuant to this article.
(b) Any member who elects to receive service credit pursuant to
this section shall have the same purchase rights and shall contribute
to the retirement fund the amount that a member in the contributory
plan wishing to purchase the same service would have to contribute,
based on the rates applicable to a member of the contributory plan
with the same date of entry into membership. Payment shall be made by
lump-sum payment or by installment payments over a period not to
exceed 10 years, prior to the effective date of his or her retirement
or, if applicable, prior to the date provided in Section 31485.8.
(c) No member may receive any service credit under this section
for which he or she has not completed payment pursuant to subdivision
(b) before the effective date of his or her retirement or, if
applicable, before the date provided in Section 31485.8. Subject to
the limitations of federal law, a member who has elected to make
payments in installments may complete payment by lump sum at any time
prior to the effective date of his or her retirement.
(d) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(e) As used in this section, the "contributory plan" means that
contributory plan otherwise available to new members of the system on
the election date.
(f) This section is not operative until the board of supervisors
elects, by resolution adopted by a majority vote, to make this
section operative in the county.
31490.6. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
(d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.8. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
(f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative until the board of supervisors,
by resolution adopted by majority vote, makes this section operative
in the county.
31490.7. Upon the death of an active or former member of the plan
established by this article, an amount equal to the accumulated
contributions made by the member pursuant to this article, with
interest on that amount, shall be paid to the member's beneficiaries.
31491. (a) Retirement of a member or former member who has met the
requirements for age and service shall be made by the board, at which
time the member or former member becomes a retired member.
(b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
(c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
(d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
(e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
(f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55............................... .39
56............................... .43
57............................... .47
58............................... .51
59............................... .56
60............................... .61
61............................... .67
62............................... .74
63............................... .82
64............................... .90
The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
(g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
(1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
(2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
(i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31492.
(j) Notwithstanding subdivision (e) of Section 31491, any retired
member receiving a normal retirement pension shall, as soon as
possible but not later than six months following retirement, present
evidence required by the board of the retired member's actual primary
insurance amount. For purposes of this subdivision, the actual
primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work. Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.
31491.1. (a) Notwithstanding Section 31491, any retired member
receiving a retirement pension may present evidence in the form
required by the board of the retired member's actual primary
insurance amount. For the purposes of this section, the actual
primary insurance amount shall be the amount being paid under the
federal system. Following receipt of that evidence, the board shall
adjust the retired member's pension to equal the amount of the
pension to which he or she would have been entitled on that date had
the estimated primary insurance amount equaled the actual insurance
amount.
(b) The adjustment calculated in subdivision (a) shall be applied
to the retired member's pension beginning in the month upon which the
retired member presents evidence required by the board.
(c) This section shall not be operative in any county until the
board of supervisors, by resolution adopted by majority vote, makes
this section applicable.
31491.2. (a) Notwithstanding Section 31491, any retired member
receiving a retirement pension may present evidence in the form
required by the board of the retired member's federal estimated
primary insurance amount provided that the retired member is not
receiving a federal primary insurance amount. For the purposes of
this section, the federal estimated primary insurance amount shall be
the amount payable under the federal system as of the retired member'
s normal federal retirement age. Should the federal estimated primary
insurance amount equal zero, the retired member shall not have his
or her pension benefit reduced for an estimated primary insurance
amount as required in subdivision (e) of Section 31491.
(b) Following receipt of that evidence, the board shall adjust the
retired member's pension to equal the amount of the pension to which
he or she would have been entitled on that date had the estimated
primary insurance amount calculated in Section 31491 equaled zero.
(c) The adjustment calculated in subdivision (a) shall be applied
to the retired member's pension beginning in the month upon which the
retired member presents evidence required by the board.
(d) Notwithstanding subdivision (a), upon attaining federal
retirement age, the retired member shall submit any evidence as may
be required by the board of the retired members' federal estimated or
actual primary insurance amount. Following receipt of that evidence,
the board shall adjust the retired member's pension in accordance
with subdivision (j) of Section 31491.
(e) This section shall not be operative in any county until the
board of supervisors, by resolution adopted by majority vote, makes
this section applicable.
31491.3. (a) Notwithstanding subdivision (f) of Section 31491, for
those members retiring on or after the operative date of this
section, the early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount that is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55............................... .3748
56............................... .4109
57............................... .4511
58............................... .4957
59............................... .5454
60............................... .6009
61............................... .6631
62............................... .7328
63............................... .8113
64............................... .8998
(b) For those members retiring on or after the operative date of
this section, paragraph (2) of subdivision (g) of Section 31491 shall
not apply, but with regard to those members who have not attained
the age of 62 years as of the date of retirement (1) future earnings
in employment covered by the federal system shall be assumed to
continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of
employment of a vested member, whichever is applicable, until the
member attains the age of 62 years, and (2) future wage bases, as
defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of employment of a vested member, whichever is
applicable, until the member attains the age of 62 years, and (3)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(c) Notwithstanding subdivision (e) or subdivision (j) of Section
31491, any member who retires on or after the operative date of this
section, and after attaining the age of 62 years may, as soon as
possible but not later than six months following retirement, present
evidence required by the board demonstrating the retired member's
actual primary insurance amount. For purposes of this subdivision,
the actual primary insurance amount shall be the amount actually
payable under the federal system on the retired member's date of
retirement without regard to delayed retirement credit or any
deductions on account of work, or the estimate of that amount as set
forth on a current earnings and benefits estimate statement provided
by the Social Security Administration. Following receipt of that
evidence, the board shall adjust the retired member's pension from
the date of retirement to equal the amount of the pension to which he
or she would have been entitled on that date had the estimated
primary insurance amount equaled the actual primary insurance amount.
(d) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31492. (a) (1) Upon the death of a retired member, 50 percent of
the retirement pension, if not modified in accordance with the
optional survivor allowance in subdivision (c) or (d), shall be
continued during and throughout the life of his or her surviving
spouse, if she or he was married to the member at least one year
prior to the date of retirement. If there is no surviving spouse
entitled to this allowance, or if he or she dies before every child
of the deceased retired member, including every stepchild or adopted
child, attains the age of 18 years, then the allowance that the
spouse would have received had she or he survived shall be paid to
the deceased retired member's child or children under the age of 18
years. If the survivor allowance is to be paid to surviving children,
it shall be divided among the children in equal shares. However, the
right of any child to share in the allowance shall cease upon his or
her death, marriage, or attaining the age of 18 years.
(2) Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21 years, if the
children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
(b) If, upon the death of a retired member, there is no surviving
spouse or child entitled to the allowance under this section, and the
total retirement allowance income received by the member during his
or her lifetime did not equal or exceed his or her accumulated normal
contributions, if any, the member's designated beneficiary shall be
paid an amount equal to the excess of his or her accumulated normal
contributions over his or her total retirement allowance income.
(c) (1) A vested member, or vested former member, in lieu of the
retirement allowance and survivor allowance, if any, otherwise
payable to a retired member and his or her surviving spouse pursuant
to this article, may elect to have the actuarial equivalent of these
benefits, as of the date of retirement, applied to a lesser amount
payable throughout the retired member's life and to an increased
survivor allowance as approved by the board, upon the advice of the
actuary, continued throughout the life of and paid to his or her
surviving spouse, if he or she was married to the member at least one
year prior to the date of retirement. If there is no surviving
spouse entitled to this allowance, or if he or she dies before every
child of the deceased retired member, including every stepchild and
adopted child, attains the age of 18 years, then the increased
survivor allowance that the spouse would have received had he or she
survived shall be paid to the deceased retired member's child or
children under the age of 18 years. If the increased survivor
allowance is to be paid to surviving children, it shall be divided
among the children in equal shares. However, the right of any child
to share in the allowance shall cease upon his or her death,
marriage, or attaining the age of 18 years.
(2) Notwithstanding any other provision of this subdivision, the
increased allowance otherwise payable to the children of the retired
member shall be paid to the children through the age of 21 years if
the children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
(3) The election pursuant to this subdivision may not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system. If a member makes the election, the
member's normal or early retirement benefit shall be reduced by the
additional actuarial cost to the system resulting from the increased
survivor allowance. The actuarial cost of the survivor allowance
payable under this subdivision shall be calculated taking into
account the life expectancy of the member's surviving spouse.
(4) This subdivision is not operative unless the county board of
supervisors, by resolution adopted by a majority vote, makes this
subdivision operative in the county. This subdivision applies only to
members who retire after the operative date of this subdivision.
(d) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone and the survivor allowance, if any, that would be payable under
subdivision (a) or (c), may elect to have the actuarial equivalent
of the retired member's pension as of the date of retirement applied
to a lesser amount payable throughout the retired member's life, and
to a survivor allowance as approved by the board, upon the advice of
the actuary, that, upon the death of the retired member, shall
continue throughout the life of and be paid to the person or persons
having an insurable interest in the life of the retired member, as
the member or former member nominates by written designation duly
executed and filed with the board at the time of retirement. The
member's normal or early retirement benefit shall be reduced by the
actuarial cost of the survivor allowance elected.
31492.1. (a) Notwithstanding Section 31492, each monthly survivor
allowance paid pursuant to subdivision (a) of Section 31492 on
account of a member who retires on or after the operative date of
this section shall be equal to 55 percent of the retirement pension,
if not modified in accordance with the optional survivor allowance in
subdivision (c) or (d) of that section.
(b) This section is only applicable to Los Angeles County and is
not operative until the board of supervisors of that county elects,
by resolution adopted by a majority vote, to make this section
operative in the county.
31492.2. (a) Notwithstanding the provisions of Section 31492, each
monthly survivor allowance paid on or after the operative date of
this section pursuant to subdivision (a) of Section 31492 on account
of a member who retires before the operative date of this section
shall be equal to 55 percent of the retirement pension, if not
modified in accordance with the optional survivor allowance in
subdivision (b) of that section.
(b) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31493. (a) Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until he or she certifies to the board his or her election
to be covered by the retirement plan established by this article or
to be covered by the retirement provisions and benefits otherwise
available to members on the date preceding the effective date of this
article. As a condition of continued employment, the certification
shall be made within 60 days of employment. The employer shall make
available to the person a disclosure of the elements of each of the
available retirement plans prior to accepting his or her election.
(b) This section shall be applicable to persons who are eligible
for membership and are employed prior to January 1, 1991.
31493.5. (a) Any person employed who qualifies as a member shall
certify to the board his or her election to be covered by the
retirement plan established by this article or to be covered by the
retirement provisions and benefits otherwise available to members as
of the date of employment. Any person who dies prior to certifying
his or her election or who fails to certify his or her election
within the period set forth in subdivision (b) shall, as of the date
of death or the day immediately following the last day to certify his
or her election, be deemed to have elected to be covered by the
retirement plan established by this article.
(b) The election required to be made by subdivision (a) shall be
certified to the board:
(1) Within 30 days of employment if written disclosure materials
are provided by the employer pursuant to subdivision (c) within 14
days of employment, or
(2) Within 30 days of the receipt of written disclosure materials
provided by the employer if the employer fails to provide written
disclosure materials within 14 days of employment as required by
subdivision (c).
(c) The employer shall, within 14 days of the date of employment,
provide to each person who qualifies as a member, written disclosure
materials of the elements of each of the available retirement plans.
(d) This section shall be applicable to persons eligible for
general membership in Plans D and E who become employed on or after
January 1, 1991, and prior to January 1, 1992, and to persons who
were employed prior to January 1, 1991, who first became eligible for
membership on or after January 1, 1991, and before January 1, 1992.
31493.6. (a) Any person who qualifies as a member, and who has not
elected to be covered by the retirement provisions and benefits
available to members, shall become a member of the plan established
by this article as of the first day of the month following the date
of employment or date of eligibility for membership. Any person who
dies prior to certifying his or her election shall be deemed to have
elected to be covered by the retirement plan established by this
article.
(b) The employer shall, within 14 days of the date of employment
or eligibility for membership, provide to each person who qualifies
as a member, written disclosure materials of the elements of each of
the available retirement plans.
(c) Any person who has been enrolled in the plan provided for in
this article pursuant to subdivision (a) may elect to be covered by
any other retirement plan to which he or she is otherwise eligible,
provided that the election is made in writing and filed with the
board within 60 days from his or her beginning date of employment or
eligibility for membership, or within 45 days after receipt from the
employer of the materials required by subdivision (b), whichever is
later. Any person who makes the election shall be deemed to be a
member of the elected plan as of the first day of the month following
the date of employment or eligibility, and the county auditor shall
make appropriate deductions from the member's future salary warrant
to cover the member's contributions applicable to the period that the
member was deemed to be included in the plan covered by this
article.
(d) This section shall be applicable to persons eligible for
general membership who become employed on or after January 1, 1992,
and to persons who were employed prior to January 1, 1992, but who
did not become eligible for membership until January 1, 1992, or
later.
31494. (a) General members may elect to transfer to the retirement
plan created by this article upon proper application executed by the
member and filed with the board. That transfer is voluntary and shall
be irrevocable.
(b) The retirement benefits of the transferred members are
governed and defined by this article.
(c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits. However, notwithstanding any other
provision of this article, transferring members shall receive credit
for public service performed prior to the transfer, including service
with the employer, military service, and other public service to
which the member would otherwise be eligible under this chapter,
except that member contributions shall not be collected.
(d) This section shall be operative at any time or times as may be
mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
(e) This section shall be superseded by Section 31494.2 in any
county when Section 31494.2 becomes operative in the county.
31494.1. (a) In accordance with the provisions of this section,
general members, whose retirement benefits are governed by the
noncontributory plan created by this article, may transfer to the
contributory plan. Contributory plan shall mean that contributory
plan otherwise available to new members of the retirement system on
the election date. Transfer may be made by election upon written
application executed by the member and filed with the board on or
before the election date and shall be effective on the transfer date,
subject to the terms and conditions set forth in this section. The
election date shall be that date identified in the resolution adopted
by the board of supervisors declaring this section to be operative.
The transfer date shall be that date on which the member completes
deposit of all contributions required by Section 31494.3. The
election is voluntary and may be revoked upon written notice received
by the board prior to the transfer date.
(b) The retirement benefits of members electing to transfer and
transferred members shall be governed and defined by this section. In
the event of conflict, this section shall supersede and prevail over
other provisions, or application of provisions, otherwise contained
in this article.
(c) Transferred members relinquish, waive, and forfeit any and all
vested or accrued benefits available under any other retirement plan
provided to members of the retirement system, and shall be entitled
only to the benefits available under the contributory plan.
(d) Transferred members shall receive retirement service credit
for that period of service with the employer, for which the members
were otherwise eligible to receive credit under the plan created by
this article. Transferred members shall also receive retirement
service credit for that period of service for which the member made
contributions pursuant to Section 31490.5.
(e) Transferred members may receive retirement service credit for
service other than that with the employer, for which the members were
credited or were eligible to receive credit under the plan created
by this article, by written application executed by the member and
filed with the board on or before the election date.
(f) The employer, the members who have elected to transfer, and
transferred members shall make contributions to the retirement fund
in accordance with the rates, and in the same manner, as prescribed
under the contributory plan. The monthly contributions shall commence
for the month next following the transfer date or that date 120 days
after the election date, whichever is earlier.
(g) For purposes of calculating member contributions required
under Section 31494.3, the entry age of a transferred member shall be
that entry age as reflected in the retirement records maintained on
behalf of the board.
(h) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (a) of Section 31494.3
shall result in the cancellation of his or her election to transfer.
(i) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (b) or (c) of Section
31494.3 shall result in the cancellation and forfeiture of his or her
right to elect credit for other service under subdivision (e).
(j) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, or fail
to deposit all required contributions as required by Section 31494.3,
all member contributions and regular interest shall be refunded to
the member or member's survivor.
(k) Notwithstanding any other provision contained in this section
or Section 31494.3, in the event of the death of a member who has
elected to transfer prior to the transfer date, the spouse of the
member, or the minor children of the member if no spouse survives the
member, may elect to pay the balance of contributions required by
Section 31494.3, and if the contributions are deposited in the
retirement fund within 120 days after the death of the member, the
spouse of the member, or if no spouse survives the member, the minor
children of the member, shall be entitled to rights and benefits as
if the deceased member had deposited all contributions required by
Section 31494.3.
(l) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, all
member contributions and regular interest shall be refunded to the
member or the member's survivor.
(m) This section shall be operative at such time or times as may
be mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
31494.2. (a) A general member whose benefits are governed by
Retirement Plan D may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan E. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (d). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of this article on
and after the transfer date. Prior to the transfer date, the rights
to retirement, survivors', or other benefits payable to a member and
his or her survivors or beneficiaries shall continue to be governed
by Retirement Plan D.
(b) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan E
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, survivors', and other benefits that shall
consist of: (1) the benefits to which they are entitled under the
terms of Retirement Plan E, but based on the member's service
credited only under that plan, and payable at the time and in the
manner provided under Retirement Plan E, and (2) the benefits to
which they would have been entitled under the terms of Retirement
Plan D had the member remained a member of Retirement Plan D, but
based on the member's service credited only under that plan, and
payable at the time and in the manner provided under Retirement Plan
D. Except as otherwise provided in this section, the calculation of
the member's, survivors', or beneficiaries' benefits under each plan
shall be subject to that plan's respective, separate terms,
including, but not limited to, the definitions of "final compensation"
and provisions establishing cost-of-living adjustments, establishing
minimum retirement age and service requirements, and governing
integration with federal social security payments. Notwithstanding
the foregoing, the aggregate service credited under both retirement
plans shall be taken into account for the purpose of determining
eligibility for and vesting of benefits under each plan.
(c) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E:
(1) A member who has transferred to Retirement Plan E pursuant to
this section may not retire for disability and receive disability
retirement benefits under Retirement Plan D.
(2) If a member who has transferred to Retirement Plan E pursuant
to this section dies prior to retirement, that member's survivor or
beneficiary may not receive survivor or death benefits under
Retirement Plan D but shall receive a refund of the member's
contributions to Retirement Plan D together with all interest
credited thereto.
(d) As used in this section:
(1) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(2) "Retirement Plan D" means the contributory retirement plan
otherwise available to new members of the system on the transfer
date.
(3) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(4) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(e) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31494.3. (a) Members who have elected to transfer under Section
31494.1 shall be provided within 90 days of the election date the
cost of contributions required for that period of all creditable
service with the employer prior to the month for which monthly
contributions are to commence, as prescribed in subdivision (f) of
Section 31494.1, and shall deposit in the retirement fund, the amount
hereinafter provided in this subdivision, by lump sum, or regular
monthly installments, or both, over the period of time determined by
a resolution adopted by a majority vote of the board of retirement,
but in any event prior to the date of application for retirement or,
if applicable, the date provided in Section 31485.8, the date of
termination, or the date of death. The amount shall equal the sum of
the contributions a member would have made to the retirement fund for
that length of time as that for which the member shall receive
credit as service, computed in accordance with the rate of
contribution applicable to the member under the contributory plan,
based upon entry age, and in the same manner as prescribed under the
plan as if the plan had been in effect during the entire period of
all creditable service, together with regular interest thereon.
(b) All service previously purchased by the member pursuant to
Section 31490.5, if any, shall be recalculated in accordance with the
rate of contribution applicable to the member under the contributory
plan, based upon the entry age, and in the same manner as prescribed
under the plan as if the contributory plan had been in effect during
the entire period of all creditable service, together with regular
interest thereon. All contributions paid by the member pursuant to
Section 31490.5, if any, shall be credited toward the amount owed
under subdivision (a) and all periods of service credited under the
plan created by this article shall be transferred to the contributory
plan upon completion of payment of that amount.
(c) Any member who applies for service credit under subdivision
(e) of Section 31494.1 relating to federal and military service,
shall be provided within 90 days of the election date the cost of
contribution required for that service, and shall deposit in the
retirement fund the amount hereinafter provided in this subdivision
by lump sum, or regular monthly installments, or both, over the
period of time determined by a resolution adopted by a majority vote
of the board of retirement, but in any event prior to the date of
application for retirement, date of termination, or death. The amount
shall equal the sum of twice the contributions the member would have
made to the retirement fund for the length of time as that for which
the member has elected to receive credit as service, computed by
applying the rate of contribution applicable to the member under the
contributory plan, based upon entry age, to the monthly compensation
first earnable by the member as of the most recent date of entry into
the retirement system, multiplied by the number of months for which
the member has elected to receive credit, together with regular
interest thereon.
(d) Any member who applies for service credit under subdivision
(e) of Section 31494.1, relating to prior service as defined in the
bylaws of the board, other than qualifying service under Section
31490.5, and public service other than military and federal service,
shall be provided within 90 days of the election date the cost of
contribution required for that service, and shall deposit in the
retirement fund the amount hereinafter provided in this subdivision,
by lump sum or regular monthly installments, or both, over the period
of time determined by a resolution adopted by a majority vote of the
board of retirement, but in any event prior to the date of
application for retirement or, if applicable, prior to the date
provided in Section 31485.8, the date of termination, or the date of
death. The amount shall equal that sum of contributions the member
would have made to the retirement fund for the length of time as that
for which the member has elected to receive credit as service,
calculated in the same manner as prescribed in the bylaws of the
board relating to credit for prior service, except that such
contribution shall be computed by applying the rate of contribution
applicable to the member under the contributory plan, based upon
entry age.
(e) This section shall be operative in a county at such time or
times as may be mutually agreed to in memoranda of understanding
executed by the employer and employee representatives if the board of
supervisors adopts, by majority vote, a resolution declaring that
the section shall be operative in the county.
31494.5. (a) A general member whose benefits are governed by
Retirement Plan E may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan D. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (g). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of Retirement Plan
D on and after the transfer date. Prior to the transfer date, the
rights to retirement, survivors', or other benefits payable to a
member and his or her survivors or beneficiaries shall continue to be
governed by Retirement Plan E.
(b) If a member has made the election to change plans under
subdivision (a), monthly contributions by the member and the employer
under the terms of Retirement Plan D shall commence as of the
transfer date. For the purposes of calculating the member's
contribution rate under Retirement Plan D, his or her entry age shall
be deemed to be his or her age at his or her birthday nearest the
transfer date; however, if the member exchanges service credit in
accordance with subdivision (c), with regard to contributions made
for periods after that exchange, his or her entry age shall be
adjusted and deemed to be the member's age at his or her birthday
nearest the date on which begins the most recent period of unbroken
service credited under Retirement Plan D, taking into account service
purchased under subdivision (c). In no event shall the exchange of
service under subdivision (c) affect the entry age with respect to,
or the cost of, employee contributions made, or service purchased,
prior to the exchange.
(c) A general member who has elected to change plans under
subdivision (a) also may elect to exchange, at that time or any time
thereafter, but prior to the earlier of his or her application for
retirement, termination from employment, or death, some portion
designated in whole-month increments, or all of the service credited
under Retirement Plan E for an equivalent amount of service credited
under Retirement Plan D, provided, however, that the member may not
exchange less than 12 months' service or, if less, the total service
credited under Retirement Plan E. The exchange shall be effective on
the date when the member completes the purchase of that service by
depositing in the retirement fund, by lump sum or regular monthly
installments, over the period of time determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement,
the sum of: (1) the contributions the member would have made to the
retirement fund under Retirement Plan D for that length of time for
which the member shall receive credit as service under Retirement
Plan D, computed in accordance with the rate of contribution
applicable to the member under Retirement Plan D, based upon his or
her entry age, and in the same manner prescribed under Retirement
Plan D as if that plan had been in effect during the period for which
the member shall receive service credit, and (2) the regular
interest thereon.
For the purposes of this subdivision, a member's entry age shall
be deemed to be the member's age at his or her birthday nearest the
date on which begins the most recent period of unbroken service
credited under Retirement Plan D following completion of the service
exchange under this subdivision. A member may receive credit for a
period of service under only one plan and in no event shall a member
receive credit for the same period of service under both Retirement
Plan D and Retirement Plan E.
A member who fails to complete the purchase of service as required
under this subdivision shall be treated as completing an exchange of
service under Retirement Plan E for an equivalent amount of service
under Retirement Plan D only with regard to the service that actually
has been purchased through completed deposit with the retirement
fund of the requisite purchase amount, calculated in accordance with
this subdivision.
(d) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan D
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, disability, survivors', death, or other
benefits that shall consist of: (1) the benefits to which they are
entitled under the terms of Retirement Plan D, but based on the
member's service credited only under that plan, and payable at the
time and in the manner provided under Retirement Plan D, and (2) the
benefits to which they would have been entitled under the terms of
Retirement Plan E had the member remained a member of Retirement Plan
E, but based on the member's service credited only under that plan,
and payable at the time and in the manner provided under Retirement
Plan E. Except as otherwise provided in this section, the calculation
of the portion of a member's or beneficiary's benefit that is
attributable to each plan is subject to that plan's respective,
separate terms, including, but not limited to, the definitions of
"final compensation" and provisions establishing cost-of-living
adjustments, establishing minimum age and service requirements, and
governing integration with federal social security payments.
Notwithstanding the foregoing, the aggregate service credited under
both Retirement Plan D and Retirement Plan E shall be taken into
account for the purpose of determining eligibility for, and vesting
of, benefits under each plan.
(e) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E, a member who transfers into Retirement Plan D
under this section may retire for service-connected or
nonservice-connected disability and receive disability benefits under
Retirement Plan D only if he or she has either (1) completed two
continuous years of active service after his or her most recent
transfer date, or (2) earned five years of retirement service credit
under Retirement Plan D after his or her most recent transfer date.
Notwithstanding any other provision to the contrary, a member who
becomes disabled and does not meet either of these conditions (1) may
apply for and receive only a deferred or service retirement
allowance, or (2) may elect to transfer prospectively back to
Retirement Plan E, and for the purposes of calculating his or her
retirement benefits under this section, shall in lieu of credit under
Retirement Plan D be credited with service under Retirement Plan E
as provided under subdivision (g) of Section 31488 during any period
he or she is totally disabled and is receiving, or eligible to
receive, disability benefits, either during or after any elimination
or qualifying period, under a disability plan provided by the
employer up to the earlier of the date he or she retires or no longer
qualifies for disability benefits. If a member dies before he or she
is eligible to retire and before completing either two continuous
years of active service after the transfer date into Retirement Plan
D or after earning five years of retirement service credit under
Retirement Plan D after that transfer date, that member's beneficiary
shall not be entitled to the survivor allowance under Section
31781.1 or 31781.12, if operative.
(f) Notwithstanding any other provisions of Retirement Plan D or
Retirement Plan E, a member who has transferred to Retirement Plan D
pursuant to this section and who retires for disability when eligible
under this section and Retirement Plan D, may not also retire for
service and receive service retirement benefits under Retirement Plan
E. However, for the purpose of calculating disability benefits under
Retirement Plan D, the "sum to which he or she would be entitled as
service retirement" or his or her "service retirement allowance," as
those terms are used in Sections 31726, 31726.5, and 31727.4, shall
consist of the blended benefit to which the member would be entitled
under subdivision (d) if he or she retired for service, not just the
service retirement benefit to which he or she would be entitled under
Retirement Plan D.
(g) As used in this section:
(1) "Active service" means time spent on active, on-the-job
performance of the duties of a full-time or part-time position and on
any authorized paid leaves of absence; provided, however, that any
authorized paid leave of absence or part-time service shall not
constitute active service if the leave of absence or part-time
service is necessitated by a preexisting disability, injury, or
disease. The board of retirement shall determine whether or not a
leave of absence or part-time service is necessitated by a
preexisting disability, injury, or disease, and thus excluded from
the member's active service, based upon evidence presented by the
employer and the member upon request by the board.
(2) "Entry age" means the age used for calculating the normal rate
of contribution to Retirement Plan D with respect to a member who
has transferred membership to Retirement Plan D under this section.
(3) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(4) "Retirement Plan D" means the contributory retirement plan
otherwise available to new members of the retirement system on the
transfer date.
(5) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(6) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(h) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
31495. Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.
31495.5. (a) Notwithstanding any other provision of this article,
every retirement allowance or death allowance payable, on or after
the operative date of this section, to or on account of any member of
Retirement Plan E who retires or dies or who has retired or died
shall, as of April 1 each year, be increased or decreased by an
amount equal to that member's automatic COLA, as defined in
subdivision (f) and as calculated by the board of retirement before
April 1 of each year. No decrease in the cost of living shall reduce
an allowance below the amount being received by the member or his or
her beneficiary on the effective date of the allowance or the
operative date of this section, whichever is later.
(b) A Retirement Plan E member may elect to purchase an elective
COLA, as defined in subdivision (f), with regard to some portion
(designated in whole-month increments) or all of his or her months of
Retirement Plan E service earned prior to the operative date of this
section. The member may also elect to purchase an elective COLA, as
defined in subdivision (f), with regard to some portion (designated
in whole-month increments) or all of his or her months of Retirement
Plan E service purchased pursuant to Section 31490.5, including
service rendered after June 4, 2002, but prior to becoming a member
of this system.
(c) The election shall be made upon written application signed by
the member and filed with the board pursuant to election procedures
and during election periods established by the board. The purchase of
the elective COLA shall be effective only when the member has paid
contributions necessary to purchase the designated amount of service
for which he or she shall receive the elective COLA. The amount of
required contributions shall be determined by the board, subject to
the following:
(1) The cost of purchasing service for elective COLA purposes
shall be determined by the board of retirement such that no elective
COLA liability shall be borne by the county and no diminution in the
funding ratio of the system shall result.
(2) The cost charged to the member for purchasing the elective
COLA service shall be based upon the assumption that the member
retires at the age of 65 years.
(3) Members may pay for the elective COLA by lump-sum payment or
monthly installments over a period to be determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement.
(4) If a member fails to timely complete the purchase of his or
her elective COLA, he or she shall receive an elective COLA
calculated only with regard to that amount of service actually
purchased.
(5) If a Retirement Plan E member dies prior to retirement, any
contributions made toward the purchase of an elective COLA, and all
interest credited thereto, shall be refunded to the deceased member's
surviving spouse or, if there is no surviving spouse, to the
deceased member's surviving child or children under the age of 18
years, divided among those children in equal amounts, or, if there is
no surviving spouse or surviving child or children under the age of
18 years, to the deceased member's estate.
(d) If a Retirement Plan E member elects and purchases an elective
COLA, then, notwithstanding any other provision of this article,
every Retirement Plan E allowance or postretirement death allowance
payable on and after the operative date of this section, to or on
account of that member who retires or dies or who has retired or died
shall, as of April 1 of each year, be increased or decreased by an
amount equal to that member's elective COLA as calculated by the
board of retirement before April 1 of each year. No decrease in the
cost of living shall reduce an allowance below the amount being
received by the member or his or her beneficiary on the effective
date of the allowance or this provision, whichever is later.
Notwithstanding any other provisions of this section, if a member
retires before attaining the age of 65 years, his or her elective
COLA shall be actuarially reduced to reflect that earlier retirement
age unless, within 120 days after his or her retirement, he or she
contributes by lump-sum the amount necessary to complete the purchase
of his or her elective COLA as determined by the board. If, upon a
member's retirement, the board of retirement determines that a member
has paid more contributions than necessary to purchase his or her
elective COLA in accordance with subdivision (b), the member s
