§ 5.23.050. Matching Contributions.

A.

Amount of Matching Contributions.

1.

Generally. Subject to the provisions of the Plan and the Trust Agreement, effective January 1, 1989, the County shall contribute to the Investment Funds on account each month, out of its Net Revenues, an amount equal to three percent of each Participant's monthly Compensation, provided that the year-to-date cumulative Matching Contributions do not exceed such Participant's year-to-date cumulative Tax Deferred Contributions.

2.

Special One-Time UAPD Settlement Contribution. Each Participant who was classified as Physician, M.D. or Physician Specialist, M.D. during 2002 and 2003 and represented by the Union of American Physicians and Dentists ("UAPD") during that period, shall receive a one-time contribution, treated as a Matching Contribution, equal to the amount agreed upon and reflected in the Settlement Agreement and General Release entered between the County and the UAPD in connection with the settlement of a lawsuit filed in Los Angeles County Superior Court, Case No. BS081517, provided that such Participant: (a) executes a settlement agreement and release in a form acceptable to the County ("Release") and returns it to the County by no later than September 30, 2007; and (b) remains an Employee on the date such special contribution is made. This special contribution will be made as soon as administratively practicable on or after July 1, 2007, provided that the Release has been executed and returned to the County before that date. If the Release is executed and returned to the County after that date, but before September 30, 2007, this special contribution will be made as soon as administratively practicable on or after the date that the executed Release is received by the County.

B.

Payments to Trustee.

1.

Matching Contributions shall be paid to the Trustee in cash at least monthly and shall be based upon the amount of Tax Deferred Contributions made during the month for which such Matching Contributions are made. Any other provision herein to the contrary notwithstanding, if it appears to the Administrative Committee that the County will not be able to make County Contributions for a Plan Year or any part thereof because it appears there will not be sufficient Net Revenues, the County shall cease making County Contributions for such Plan Year on a monthly basis and shall make County Contributions, if any, within 30 days after the amount, if any, of Net Revenues for such Plan Year is determined.

2.

If the amount of Matching Contributions for a Plan Year exceeds the amount which may be contributed to the Plan in accordance with subsection A of this section (except in the case of a mistake of fact covered by Section 5.23.050E2), such excess Matching Contributions shall be forfeited, placed in a suspense account and applied in accordance with Section 5.23.070L.

C.

Allocation of Matching Contributions. Matching Contributions shall be allocated and credited each month to the Matching Contributions Account of each Participant for whom Tax Deferred Contributions are made during such month, with each such Participant receiving a portion of the Matching Contributions equal to the amount calculated according to the provisions of subsection A of this section. In the event that Matching Contributions are insufficient to provide each Participant with his fully allocated portion as provided in the preceding sentence, the Matching Contributions that are made shall be allocated proportionally to the Matching Contributions Account of each Participant in a manner consistent with such sentence.

D.

Reduction of Matching Contributions. The amount of Matching Contributions determined to be payable to the Investment Funds pursuant to this section shall be reduced in accordance with Section 5.23.070L.

E.

Return of Contributions to County.

1.

Except as provided in subsection E2 of this section or in subsections B or D of this section or Section 5.23.140E, the Investment Funds shall never inure to the benefit of the County and shall be held for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expense of administering the Plan.

2.

If any County Contribution is made by the County due to a mistake of fact, such Contribution (but not the earnings thereon) shall, to the extent permitted by applicable law, at the direction of the Administrative Committee, be returned to the County within one year after it is made; if such contribution constituted a Tax Deferred Contribution, it shall thereafter be returned to the Participant to the extent permitted by applicable law.

F.

Provision Pursuant to Code Section 415(c).

1.

Definitions. For the purposes of this Section 5.23.050F and Section 5.23.050G, the following definitions apply:

a.

"Annual Addition" means the sum of the following amounts: (1) all contributions made by the County that are allocated to a Participant's account under a qualified defined contribution plan maintained by the County, (2) all contributions made by the Participant to a qualified defined contribution plan maintained by the County, (3) all forfeitures allocated to a Participant's account under a qualified defined contribution plan maintained by the County, and (4) any amount allocated to an individual medical benefit account (as defined in Code Section 415(l)(2)) of a Participant that is part of a pension or annuity plan maintained by the County (except that the 25 percent of 415 Compensation limit, or, for Limitation Years beginning on or after January 1, 2007, the 100 percent of 415 Compensation limit, does not apply to such an individual medical benefit account).

b.

"County" means any entity the employees of which, together with employees of the County, are required to be treated as if they were employed by a single employer under Code Section 414(b), (c), (m) or (o) (taking into account any adjustment made pursuant to Code Section 415(h)), and any entity whose employees are treated as employees of the County under Code Section 414(n).

c.

"Limitation Year" means the twelve consecutive month period used by a qualified plan for the purposes of computing the limitations on benefits and annual additions under Code Section 415. The Limitation Year for this Plan is the Plan Year.

2.

Limit on Contributions. Notwithstanding any other provisions of the Plan, for Limitation Years before January 1, 2007, the Annual Addition for a Participant for any Limitation Year shall in no event exceed the lesser of (1) $30,000.00 or such higher adjusted amount as shall be prescribed by the Secretary of the Treasury pursuant to Code Section 415(d) to reflect increases in the cost of living, or (2) 25 percent of the Participant's 415 Compensation during the Plan Year. For Limitation Years beginning on or after January 1, 2007, the Annual Addition for a Participant for any Limitation Year shall not exceed the lesser of (y) $40,000, as adjusted for increases in the cost-of-living under Code Section 415(d), or (z) 100 percent of the Participant's 415 Compensation for the Plan Year.

3.

Excess Annual Additions. If a Participant's Annual Additions would exceed the limitations of subsection F2 for a Limitation Year, Matching Contributions allocable to such Participant's Account for such Limitation Year shall, to the extent necessary to cause the limitation in subsection F2 to be satisfied, be held in a suspense account and used to reduce Matching Contributions for the next Limitation Year for that Participant if such Participant is covered by the Plan at the end of such Limitation Year; and if he is not covered by the Plan at the end of any such Limitation Year, the Matching Contributions held in the suspense account shall be allocated and reallocated pro rata (based on each Participant's Eligible Earnings) to the Accounts of other Participants, except that such allocation or reallocation shall not cause the limitations of subsection F2 to be exceeded for any other Participant for any other Limitation Year. Investment gains and losses shall not be allocated to the suspense account during the period such suspense account is required to be maintained. In the event of the termination of this Plan while there exists a balance in the suspense account, to the extent such balance cannot be allocated to Participant's Account without violating the limitations of this section, such balance shall revert to the County. If the allocation of Matching Contributions to the suspense account as described herein is not sufficient to cause the limitations of subsection B to be satisfied, Tax Deferred Contributions made for such Participant for such Limitation Year (together with gains attributable thereto) shall be returned to him to the extent necessary to satisfy the limitations under subsection F2. In the event a reduction is necessary to satisfy subsection B, and the Participant participates in two or more defined contribution plans maintained by the County, the excess amount to be reduced will be deemed to consist of the Annual Addition last allocated. If an excess amount was allocated to a Participant on an allocation date of this Plan that coincides with an allocation date of another plan, the excess amount attributed to this Plan (to be reduced as provided above) will be the product of (1) the total excess amount allocated as of such date, and (2) the ratio of the Annual Addition allocated to the Participant for the Limitation Year under this Plan to the total Annual Additions allocated to the Participant for the Limitation Year for this and all other qualified defined contribution plans.

4.

Aggregation of Plans. For the purposes of applying the limitations set forth in this Section 5.23.050F and Section 5.23.050G, all qualified defined benefit plans (whether or not terminated) ever maintained by the County shall be treated as one defined benefit plan, and all qualified defined contribution plans (whether or not terminated) ever maintained by the County shall be treated as one defined contribution plan.

G.

Provision Pursuant to Code Section 415(e). Notwithstanding any other provision of the Plan, in the case of a Participant who is also a participant in any defined benefit plan qualified under Code Section 401(a), whether or not terminated, maintained by the County, the sum of the fraction attributable to this Plan (as determined under Code Section 415(e)(3)) and the fraction attributable to such defined benefit plan (as determined under Code Section 415(e) (2)) for any Plan Year shall in no event exceed 1.0. In the event a reduction is necessary to avoid exceeding the limitation set forth in this subsection, the affected Participant's annual additions under this Plan shall be reduced to the extent necessary to avoid exceeding such limitation. This Section 5.23.050G shall be inapplicable for Plan Years beginning on and after January 1, 2000.

(Ord. 2007-0084 § 1, 2007; Ord. 2001-0097 § 2 (part), 2001.)