Pass: 145721 / 58.0% Yes votes ...... 105386 / 42.0% No votes

See Also: Index of all Measures

Summary:

TITLE:
FIRE AND POLICE PENSION PLAN: COST NEUTRAL PURCHASES OF RETIREMENT CREDIT BY CERTAIN MEMBERS

THE ISSUE:
Shall the Charter be amended to authorize the City Council to allow sworn police personnel who are transferred from the Department of General Services (DGS) to the Police Department (LAPD) to purchase, at their own expense, retirement credit for prior sworn City service after they have become members of the Fire and Police Pension Plan?

THE SITUATION:
Historically, police personnel who patrol the Civic Center and city facilities like the Zoo, libraries, and the Convention Center have been under the jurisdiction of the DGS and covered by the City's civilian retirement plan. As of January 2013, the City transferred DGS police personnel to the LAPD, but they are still members of the civilian retirement plan.

Transferred officers who subsequently switch to a regular police position may opt to become members of the Fire and Police Pension Plan.

THE PROPOSAL:
This Charter amendment would authorize the City Council to allow DGS police personnel who transfer to the LAPD, and become regular police officers, to choose to transfer their retirement credit from the City's civilian plan, to the Fire and Police Pension Plan, in the event they become members of that plan. These transfers would be cost neutral to the City, with any additional costs to be paid by the police personnel who choose to switch retirement plans.

A YES VOTE MEANS:
You want to give DGS police personnel who become members of the Fire and Police Pension Plan the option to transfer their retirement credit from the civilian plan to the Fire and Police Pension Plan.

A NO VOTE MEANS:
You do not want to give DGS police personnel who become members of the fire and Police Pension Plan the option to transfer their retirement credit from the civilian plan to the Fire and Police Pension Plan.

Fiscal Impact from Miguel A. Santana City Administrative Officer:

This measure will allow sworn police personnel who are transferred from the Department of General Services to the Police Department to purchase retirement credit for prior sworn City service at their own expense. The measure is not expected to result in any additional cost to the City or to the City's General Fund.

Impartial Analysis from Gerry F. Miller Chief Legislative Analyst

This measure would amend the Los Angeles City Charter (Charter) to allow certain police personnel in the City's Department of General Services (OSD) who become Los Angeles Police Department (LAPD) officers to transfer their retirement benefits from the City's civilian employee retirement system to the sworn employee retirement system at no cost to the City.

Since 1979, GSD has had the responsibility to secure and patrol City buildings, facilities, shops, yards, and warehouses. GSD police personnel are police officers with limited peace officer status under State law and are trained and certified through the LAPD Police Academy under the same standards as LAPD officers.

In order to improve operational efficiencies and reduce costs, in 2012, the City approved the consolidation of GSD police officers into the LAPD. The consolidation is underway and should be completed in 2013. Some GSD police officers will receive re-training and certification, as necessary, to become LAPD officers. However, GSD police officers and LAPD officers are members of different retirement systems. This measure would allow GSD police officers who become LAPD officers to transfer benefits to a sworn employee retirement system.

GSD police officers are members of the City's civilian retirement plan, the Los Angeles City Employees' Retirement System (LACERS). LAPD officers and Los Angeles Fire Department firefighters and paramedics are members of the Fire and Police Pension Plan (FPPP). As part of the consolidation, the City enacted an ordinance to allow GSD police officers whose current positions are transferred to the LAPD to continue as members of LACERS or, within two years of being appointed as LAPD officers, elect to transfer retirement membership from LACERS to FPPP. This Charter Amendment would give the transferring employees the option to purchase retirement credit for prior sworn city services after becoming a member of the FPPP. However, without a Charter amendment, the transfer of benefits cannot be finalized.

Under this Charter Amendment, fonner GSD police officers who choose to transfer to the sworn retirement system will be placed in 'Tier 6' of the FPPP, which is the same retirement benefit package as any other new police officer who joined the LAPD after July 1, 2011. The proposed Charter Amendment requires that the transfer between retirement plans be cost neutral. The transferring employee will be required to pay the full actuarial cost of the service to be transferred.

This Charter Amendment will become effective if approved by a majority of voters.

City of Los Angeles

Now:

Some police officers work for the City Department of General Services (DGS), where they patrol city buildings and facilities such as City Hall, the zoo and the Convention Center. Last year, the city permitted these officers to work for the Los Angeles Police Department (LAPD) instead of the DGS. The LAPD has a different retirement pension plan than the one offered by the DGS.

If Charter Amendment B passes:

Police officers who are transferred from the DGS to the LAPD could choose whether they receive their pension benefits from the DGS plan or the LAPD plan.

Effect on the city budget:

There would be no effect on the city budget. Officers who choose the LAPD plan would pay for the costs of any additional pension benefits.

People for Charter Amendment B say:

• Charter Amendment B will allow police officers who are transferred to the LAPD to have the same benefits as other members of this plan, at no cost to the city or to taxpayers.

People against Charter Amendment B say:

• The cost of the City's pension systems is a big reason for the City's financial problems. There is no way to guarantee that this will not cost the City money and make the problem worse.