§ 5.26.020. Definitions.

The following terms when used herein with initial capital letters, unless the context clearly indicates otherwise, shall have the following respective meanings:

1.

"Account" means a Participant's Tax Deferred Contributions Account, Matching Contributions Account, After-Tax Contributions Account, Termination Pay Contribution Account and Rollover Contributions Account as specified in Section 5.26.190.

2.

"Administrative Committee" means the Auditor-Controller, County Counsel, Director of Personnel, Treasurer and Tax Collector, and Chief Executive Officer of the County, or their designated representatives.

3.

"Administrator" or "Plan Administrator." The Administrator of the Plan, as defined in Code Section 414(g), shall be the Administrative Committee, which may delegate all or any part of its powers, duties and authorities in such capacity (without ceasing to be the Administrator of the Plan) as hereinafter provided.

4.

"After-Tax Contributions" means contributions made by the County pursuant to a Salary Deduction Agreement as specified in Section 5.26.065.

5.

"After-Tax Contributions Account" means an account to which the After-Tax Contributions made for each Participant, and any earnings, investment gains or losses and applicable Plan expenses allocable thereto, are credited.

6.

"Alternate Payee" means any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such Participant.

7.

"Beneficiary" means such person or persons as a Participant may designate to receive his interest under the Plan after his death. The designation may be made, and may be revoked or changed, only by a written instrument (in form acceptable to the Administrative Committee) signed by the Participant and filed with the Administrative Committee before his death. Following the merger of the Deferred Earnings Plan into this Plan effective May 30, 2008, (1) if a Participant previously made a beneficiary designation only under the Deferred Earnings Plan, that beneficiary designation shall be the applicable beneficiary designation under this Plan unless or until changed or revoked by the Participant in accordance with the terms of this Plan; and (2) if a Participant has made a beneficiary designation under both the Deferred Earnings Plan and this Plan, the beneficiary designation made under this Plan shall govern unless or until charged or revoked by the Participant in accordance with the terms of this Plan. In the absence of a designation and at any other time when there is no existing Beneficiary designated by the Participant, his Beneficiary shall be his spouse, if living 30 days after the date of his death, or, if not, his children (by blood or adoption) equally (with children of a deceased child to share equally the share of such deceased child). If a Beneficiary cannot be determined pursuant to the preceding sentence, the Beneficiary shall be the Participant's estate.

8.

"Broker" means the brokerage house with which the Administrative Committee contracts to administer Personal Brokerage Account Windows opened by Participants.

9.

"Brokerage Investments" means those investments in which a Participant may elect to invest through a Personal Brokerage Account Window that the Participant may open. Brokerage Investments are not designated by the Administrative Committee as investment alternatives under the Plan; however, the Administrative Committee may place trading restrictions on the types of Brokerage Investments that may be held by the Plan.

10.

"Brokerage Cash Feature Fund" means the default interest-bearing deposit account or fund designated by the Broker to hold a Participant's Investment Account assets under a Participant Brokerage Account Window: (1) when such assets are first transferred to the Personal Brokerage Account Window from Core Funds and until they have otherwise been invested in Brokerage Investments as directed by the Participant; (2) when such assets are held under the Personal Brokerage Account Window but have not otherwise been invested at the Participant's direction; (3) before such assets are transferred back to Core Funds; and (4) if the Participant has otherwise directed that such assets be invested in that Fund.

11.

"Catch-Up Contributions" means contributions made by the County on or after January 1, 2002, as specified in Section 5.26.060B.

12.

"Code" means the Internal Revenue Code of 1986, as amended.

13.

a.

"Compensation" means base rate, as established in Title 6 of the Los Angeles County Code, as amended, plus:

(1)

Any monthly bonus established as a designated percentage of the base rate in the Level Percentage Conversion Table contained in such Title 6 or established as a percentage of base rate pursuant to Parts 2 or 3 of Chapter 6.08 of such Title 6;

(2)

The monthly amounts provided by Sections 5.12.200, 5.27.240A, 5.28.240A, 5.40.460 and 5.40.465;

(3)

Any lump-sum payment made upon termination pursuant to Section 5.20.070 or 6.18.070 of the Los Angeles County Code.

b.

Compensation shall not include any of the following:

(1)

Overtime compensation;

(2)

Any lump-sum payoff or reimbursement for unused accumulated overtime, vacation, holiday time, or sick leave benefits;

(3)

Compensation pursuant to Section 6.16.010 of the Los Angeles County Code;

(4)

Any hourly bonus;

(5)

Any monthly bonus established as a flat dollar amount or as a percentage of base rate except that compensation shall include any monthly bonus paid as a percentage of base rate for employees compensated pursuant to Parts 2 or 3 of Chapter 6.08 entitled Management Appraisal and Performance Plan of the Los Angeles County Code;

(6)

Except as provided in Part 4.5 of Chapter 5.26, any Settlement Award (as defined in Part 4.5).

Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, each reference to "monthly bonus" in this Section 5.26.020.13. shall be deemed to be a reference to "payroll period bonus."

14.

"Compensation Deferral Agreement" means an agreement pursuant to which an Employee agrees to reduce, or to forego an increase in, his Eligible Earnings and the County agrees to contribute to the Plan the amount of the reduction or the amount foregone as a Tax Deferred Contribution.

15.

"Core Funds" means the investment funds designated by the Administrative Committee as available investment options under the Plan. The Administrative Committee shall design the investment policies governing the Core Funds.

16.

"County" means the County of Los Angeles and (a) any governmental entity of which the Los Angeles County Board of Supervisors is the governing body, and (b) any Trial Court Entity to the extent participation in the Plan by such entity is authorized by state law or rules of court and provided such entity has not elected not to participate in the Plan.

17.

"County Contributions" means Tax Deferred Contributions, if any, as specified in Section 5.26.060, After-Tax Contributions, if any, as specified in Section 5.26.065, a Termination Pay Contribution, if any, as specified in Section 5.26.173, and Matching Contributions, if any, as specified in Section 5.26.110.

18.

"Disability" means the complete and continuous inability and incapacity of the Participant to perform the duties of his or her position with the County.

19.

"Eligible Earnings" means any compensation paid to an Employee for service performed for the County which is currently includible in gross income under the Code, or which would be so includible had the Employee not signed a Compensation Deferral Agreement. On or after March 1, 2003, Eligible Earnings shall have the same meaning as "415 Compensation."

20.

"Eligible Employee" means a full-time permanent Employee who is not a Leased Employee, is not in an Excluded Bargaining Unit and who is designated by the Los Angeles County Board of Supervisors as eligible to participate in the Plan. For purposes hereof, "full-time permanent" means any employee appointed to an "A," "L" or "N" item pursuant to Title 6 of the Los Angeles County Code, or any employee appointed to a "D" item pursuant to said Title 6 who is required to possess a California license to practice as a Registered Nurse. Any employee who would otherwise cease to be an Eligible Employee because of a change in employment classification and/or entry into an Excluded Bargaining Unit shall remain an Eligible Employee until the last day of the month following the month in which such change or entry occurs or such later date as the Administrative Committee may provide; provided, however, that the County and representatives of an Excluded Bargaining Unit may, subject to approval by the Los Angeles County Board of Supervisors, agree that any employee who would otherwise cease to be an Eligible Employee because of certification or accretion of the employee's employment classification into an Excluded Bargaining Unit may continue as an Eligible Employee for such period as may be established in such agreement. Effective as of September 1, 1994, Special Eligible Employees shall be treated as if they are Eligible Employees until March 31, 2004, for purposes of making Tax Deferred Contributions, but not for the purpose of having any other County Contributions made on their behalf. An Employee who is not otherwise eligible to participate in this Plan shall not become an Eligible Employee solely by becoming an inactive Participant through the merger of the Deferred Earnings Plan into this Plan.

21.

"Eligible Rollover Distribution" means any distribution of all or part of the balance to the credit of the Participant in an "eligible retirement plan" as defined in Plan section 5.26.610A (including the Plan where applicable), other than (1) any distribution which is one of a series of substantially equal periodic payments made not less frequently than annually for the life (or life expectancy) of the Participant or beneficiary or the joint lives (or joint life expectancies) of such individual and his designated beneficiary, or for a specified period of 10 years or more; (2) any distribution to the extent such distribution is required by Code Section 401(a)(9); and (3) any distribution which is (a) a return of elective deferrals described in Section 1.415-6(b)(6)(iv) of the Treasury Regulations which is returned due to the limitations under Code Section 415, (b) a corrective distribution of excess contributions described in Section 1.401(k)-1(f)(4) of the Treasury Regulations, excess deferrals described in Section 1.402(g)-1(e)(3) of the Treasury Regulations or excess aggregate contributions described in Section 1.401(m)-1(e)(3) of the Treasury Regulations, together with the income allocable thereto, (c) a loan treated as a distribution under Code Section 72(p) and not excepted from such treatment under Code Section 72(p)(2), (d) a deemed distribution of a loan in default, (e) a dividend on employer securities described in Code Section 404(k), (f) the P.S. 58 cost of life insurance coverage, and (g) any other similar item designated by the Commissioner of Internal Revenue. For distributions made on or after January 1, 2000, an Eligible Rollover Distribution also does not include any distribution or withdrawal of Tax Deferred Contributions due to Hardship as provided in Section 5.26.300 and under Code Section 401(k). For distributions made on or after January 1, 2002, an Eligible Rollover Distribution also does not include any distribution or withdrawal of Matching Contributions or Tax Deferred Contributions due to Hardship as provided in Section 5.26.300.

22.

"Employee" means any person who: (a) has been determined by the County (regardless of any determination made by any other person or entity) to be an employee of the County within the meaning of Code section 3401(c) for federal income and/or employment tax purposes; or (b) is a Leased Employee as defined in subsection 32 of this section and as provided in Section 5.26.055. If it is determined that an individual was erroneously categorized as not being an Employee, he or she shall be treated as an Employee under the Plan only prospectively from the date of such determination. Effective January 1, 2009, solely to the extent required by Code section 414(u)(12), the term Employee shall include an individual receiving differential wage payments (within the meaning of Code section 414(u)(12)(D)) from the County.

23.

"Entry Date" means September 1, 1984, and the 1st day of the month or the 16th day of the month unless otherwise provided by the Administrative Committee.

24.

"Excluded Bargaining Unit" means an employee representation unit, unless the representative of such unit and the County agree that the Employees in such unit shall be covered hereunder.

25.

"415 Compensation" means wages, within the meaning of Code section 3401(a) (for purposes of income tax withholding) but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed, paid to an Employee by the County. Effective for years beginning on and after January 1, 1998, 415 Compensation also includes any County contribution under a cash or deferred arrangement (including Tax Deferred Contributions) for the year, any County contributions to purchase an annuity contract under Code section 403(b) under a salary reduction agreement, any other elective deferral (as defined in Code section 402(g)(3)) and any amount which is contributed to a plan sponsored by the County at the election of the Employee and which is not includible in gross income under Code section 125 or Code section 457. For Limitation Years (as defined in Section 5.26.160) beginning on and after January 1, 2001, 415 Compensation paid or made available during such Limitation Years shall include elective amounts that are not includible in the gross income of the Employee by reason of Code section 132(f)(4). On or after January 1, 2003, 415 Compensation also includes any amount that is not available in cash to an Employee under the Choices, Options, Flexible Benefit Plans or Mega-Flex Plans (or a successor plan) because the Employee is unable to certify that the Employee has other health coverage. Except as provided in Part 4.5, 415 Compensation shall not include any Settlement Award (as defined in Part 4.5). In order to be taken into account as 415 Compensation, an item of compensation must be paid (or treated as paid) to the Participant prior to the Participant's Severance Date, provided, however, the following types of post-employment payments are included within 415 Compensation if they are paid by the later of 2½ months after the Participant's Severance Date or the end of the calendar year in which such Severance Date occurs: (i) payments that, absent a termination from employment, would have been paid to the Participant in the normal course of employment and are regular compensation for services during regular working hours or outside regular working hours (such as overtime or shift differential), bonuses or other similar compensation; and (ii) Termination Pay. For these purposes, the "County" includes 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). Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, 415 Compensation shall not include Nonelective Contributions (as that term is defined in Los Angeles County Code Sections 5.27.020, 5.28.020, 5.33.020 or 5.37.020, as applicable) unless those Nonelective Contributions are received by the Participant as a cash benefit under the Choices, Options, Flexible Benefit or Mega-Flex Plans (in accordance with Los Angeles County Code Sections 5.27.050E, 5.28.050E, 5.33.050F or 5.37.050F, as applicable). For the avoidance of doubt, consistent with Code section 3401(h), effective January 1, 2009, 415 Compensation includes differential wage payments within the meaning of Code section 414(u)(12)(D).

26.

"Hardship" means hardship as determined in a uniform and nondiscriminatory manner by the Administrative Committee, taking into account wherever applicable the definition of such term by the Treasury Department in its regulations or other applicable guidance issued under Code Section 401(k), all on the basis of information supplied to the Administrative Committee by the Participant.

27.

"Horizons Plan" means the County of Los Angeles Deferred Compensation and Thrift Plan.

28.

"Investment Funds" means any Core Funds made available under the Plan. Such term also includes the Participant Loan Fund, and the Brokerage Cash Feature Fund and Brokerage Investments in which Participants invest through a Personal Brokerage Account Window, if such Personal Brokerage Account Window is authorized by the Administrative Committee.

29.

"Investment Manager" means the person(s) appointed by the Plan Administrator who, under such terms and conditions as the Plan Administrator may decide with respect to any Investment Fund, except the Brokerage Investments in which Participants invest through a Personal Brokerage Account Window, has the discretion to determine which assets in such Fund shall be sold (or exchanged) and what investments shall be acquired for such Fund. In the alternative, an organization which is employed by the County to provide administrative and investment services (by agreement with one or more investment providers) may be designated an Investment Manager.

30.

"Involuntary Early Severance" means a Participant's severance from County employment less than 90 days after execution of a Payroll Deduction Authorization Agreement due to death, disability, layoff or other events that the County determines are beyond the control of the Participant.

31.

"LACERA" means, collectively, the Los Angeles County Employees' Retirement Association and the defined benefit retirement plan administered thereby.

32.

"Leased Employee" means any person (other than an Employee of the recipient) who, pursuant to an agreement between the recipient and any other person (leasing organization), has performed services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6)) on a substantially full time basis for a period of at least one (1) year, and such services are performed under the primary direction or control by the recipient employer. A Leased Employee shall not be considered an Employee of the recipient if Leased Employees do not constitute more than 20 percent of the recipient's nonhighly compensated workforce and such Leased Employee is covered by a money purchase pension plan providing (i) a nonintegrated employer contribution rate of at least ten (10) percent of compensation as defined under Code Section 415(c)(3); (ii) immediate participation; and (iii) full and immediate vesting.

33.

"Matching Contributions" means contributions made by the County as specified in Section 5.26.110.

34.

"Matching Contributions Account" means an account to which the following are credited: (1) the Matching Contributions allocated to each Participant, (2) the funds transferred to the Plan from the Participant's matching contribution account under the Deferred Earnings Plan, if any, upon the merger of the Deferred Earnings Plan with this Plan, and (3) any earnings, investment gains or losses and applicable Plan expenses allocable to the foregoing.

35.

"Participant" means an Eligible Employee or a former Eligible Employee who has become and continues to be a Participant of the Plan in accordance with the provisions of Part 2 of this chapter, or an Employee or former Employee who became an inactive Participant in accordance with Part 2 of this chapter solely due to the merger of the Deferred Earnings Plan into this Plan.

36.

"Participant Loan Fund" means the Investment Fund provided for in Section 5.26.310.

37.

"Payroll Deduction Authorization Agreement" means the one-time, binding and irrevocable agreement by which an Eligible Employee elects to make a Termination Pay Contribution to the Plan, which satisfies the requirements specified in Section 5.26.175.

38.

"Personal Brokerage Account Window" means an arrangement under which a Participant contracts with the Broker to open a brokerage account through which a portion of his or her Investment Account may be invested in the Brokerage Cash Feature Fund and various Brokerage Investments. The Administrative Committee shall have authority to authorize or discontinue the Personal Brokerage Account Window at its discretion.

39.

"Plan" means the County of Los Angeles Savings Plan, the terms and provisions of which are herein set forth, as the same may be amended, supplemented or restated from time to time.

40.

"Plan Year" means a calendar year.

41.

"QDRO" means a "qualified domestic relations order," which is a domestic relations order that the Administrative Committee has determined satisfies the requirements of a qualified domestic relations order as defined in Code Section 414(p)(1) and is consistent with the terms of this Plan.

42.

"Qualified Plan" means an employee benefit plan that is qualified under Section 401(a) of the Code.

43.

"Rollover Contributions" means contributions received by the Plan pursuant to Section 5.26.610A.

44.

"Rollover Contributions Account" means an account to which the Rollover Contributions received on behalf of each Participant, and any earnings, investment gains or losses and applicable Plan expenses allocable thereto, are credited.

45.

"Salary Deduction Agreement" means an agreement pursuant to which an Employee agrees to have an amount deducted from his Eligible Earnings, on an after-tax basis, and the County agrees to contribute to the Plan the amount deducted as an After-Tax Contribution.

46.

"Severance Date" means the date upon which an Eligible Employee or a Participant terminates employment with the County for any reason.

47.

"Special Eligible Employee" means each of the Employees designated by the Board of Supervisors of the County in the resolution enacting Ordinance No. 2008-0004, who until March 31, 2004, shall be treated as if he or she is an Eligible Employee for purposes of making Tax Deferred Contributions (but no other County Contributions), notwithstanding the Employee's change in employment classification to other than full-time permanent or entry into an Excluded Bargaining Unit.

48.

"Tax Deferred Contributions Account" means an account to which the following are credited: (1) the Tax Deferred Contributions and Catch-Up Contributions, subject to any action taken by the Administrative Committee under Section 5.26.190 to establish a separate account or subaccount for such Catch-Up Contributions, made for each Participant, (2) the funds transferred to the Plan from the Participant's tax deferred contribution account under the Deferred Earnings Plan, if any, upon the merger of the Deferred Earnings Plan with this Plan, and (3) any earnings, investment gains or losses and applicable Plan expenses allocable to the foregoing.

49.

"Termination Pay" means amounts paid by the later of 2½ months after the Participant's Separation from Employment or the end of the calendar year in which the Participant's Separation from Employment occurs in redemption of accrued bona fide sick, vacation or other leave that otherwise would be paid in cash to the Participant under section 6.24.040A of the Los Angeles County Code, and which the Participant would have been able to use if employment had continued.

50.

"Termination Pay Contribution" means a contribution made by a Participant pursuant to a Payroll Deduction Authorization Agreement, as specified in Section 5.26.173.

51.

"Termination Pay Contribution Account" means an account to which the Termination Pay Contribution made for each Participant, and any earnings, investment gains or losses and applicable Plan expenses allocable thereto, is credited.

52.

"TPA" means a third-party administrator who has entered into a contract with the County to provide record-keeping or other administrative services for the Plan.

53.

"Trial Court Act" means the Trial Court Employment Protection and Governance Act, California Government Code Section 71600 et seq.

54.

"Trial Court Employee" means a "trial court employee," as defined under the Trial Court Act, who is an Eligible Employee.

55.

"Trial Court Entity" means each Los Angeles County Municipal Court, Los Angeles County Superior Court, and each unified, successor trial court entity (or portion thereof) established in the County pursuant to California Government Code Section 70200 et seq.

56.

"Trust Agreement" means any agreement between the County and a Trustee as in effect from time to time.

57.

"Trustee" means any person that is a custodian or trustee and that is appointed by the Board of Supervisors of the County to hold and administer some or all of the assets of the Plan pursuant to Part 8 of this chapter.

58.

"Valuation Date" means the date with respect to which the value of the Plan assets or any portion thereof is determined. Unless otherwise determined by the Administrative Committee, a Valuation Date occurs each day.

59.

"Year of Service" means an Employee shall be credited with a Year of Service for each Plan Year (including the Plan Year commencing September 1, 1984, and ending December 31, 1984) in which he is employed by the County and is a Participant in the Plan, the Deferred Earnings Plan or in the Horizons Plan.

(Ord. 2017-0004 § 4, 2017; Ord. 2016-0004 § 3, 2016; Ord. 2014-0017 § 14, 2014; Ord. 2012-0056 § 1, 2012; Ord. 2010-0014, § 7, 2010; Ord. 2008-0071 § 1, 2008; Ord. 2008-0022 § 5, 2008; Ord. 2008-0004 § 10, 2008; Ord. 2007-0001 § 4, 2007; Ord. 2006-0084 § 1, 2006; Ord. 2005-0019 § 3, 2005; Ord. 2004-0064 §§ 1, 2 (part), 2004.)