§ 6.127.040. LACERA Tier I and Tier II Management Appraisal and Performance Plan.

A.

Purpose. The purpose of the Management Appraisal and Performance Plan is to improve LACERA's ability to employ executive, senior management, and management employees, to evaluate and compensate those employees for the contributions they make toward achieving LACERA priorities, and to motivate them to excel and achieve high efficiency, reduce costs, realize expected revenues, and deliver quality services to LACERA's members and beneficiaries.

B.

Definitions. The following terms when used in this Section 6.127.040 with initial capital letters, unless the context clearly indicates otherwise, shall have the following respective meanings:

1.

"Appointing Authority" means the retirement administrator as to Participants serving on the staff of the Los Angeles County Employees Retirement Association. The Board of Retirement and the Board of Investments jointly shall be the Appointing Authority for any person designated to act as retirement administrator pursuant to Section 6.127.020 of this code. The Appointing Authority of the Chief, Internal Audit, LACERA shall be as described in Section 6.127.040.S. of this code.

2.

"Control Point" means the midpoint of each Salary range as indicated in the Tier I Salary Structure. The Control Point for each Tier II Salary range shall be the same as the similarly numbered Tier I Salary range.

3.

"General Salary Adjustment" means an across-the-board adjustment in the actual base salaries of Tier I and/or Tier II Participants. A General Salary Adjustment may be implemented only by specific action of the board of supervisors as requested by the board of retirement and board of investments jointly and may or may not be accompanied by a concurrent adjustment in the Salary Structure.

4.

"Participant" means a person employed in a position in a class which has been approved by the board of supervisors as requested by the board of retirement and board of investments jointly for inclusion in the Management Appraisal and Performance Plan.

5.

"Plan" means the Management Appraisal and Performance Plan set forth in this Section 6.127.040.

6.

"Salary Structure" means the Tier I and Tier II Salary ranges specified in Section 6.26.020 A.

7.

"Tier I" means that part of the Plan that is applicable to positions specifically designated as eligible for Tier I by the board of supervisors as requested by the board of retirement and board of investments jointly. Salary ranges applicable to Tier I Participants are designated by the letters "LR" in Sections 6.28.050 and 6.26.020 A of this code. Tier I Salary ranges are defined in terms of a minimum rate, a maximum rate, and a Control Point and are divided into quartiles for salary administration purposes in accordance with the provisions of Section 6.08.370.

8.

"Tier II" means that part of the Plan that is applicable to all Participants other than Tier I Participants. Salary ranges applicable to Tier II Participants are designated by the letters "LS" in Sections 6.28.050 and 6.26.020 A of this code. Tier II Salary ranges consist of 18 salary steps, with the first 12 being 3 percent apart and the last six steps being 1 ½ percent apart.

9.

"Tier I Merit Adjustment" means movement through the applicable LR range based on an evaluation of performance as provided for in the Plan and any pertinent instructions issued by the retirement administrator. A Tier I Merit Adjustment may range from zero to 5 percent with respect to any given rating period.

10.

"Tier II Step Advancement" means advancement to the next salary step in the applicable LS range based on an evaluation of performance as provided for in the Plan and any pertinent instructions issued by the retirement administrator.

11.

"Y-Rate" means, for purposes of this Part 3, a special salary rate which entitles a person to receive a salary at a rate higher than the maximum of the Salary range for the position which the person holds.

C.

Applicability of Section 6.127.040 provisions. Notwithstanding any other provision of this Title 6, the salary of a person employed in a position assigned to a Salary range in Tier I or Tier II of the Plan shall be determined pursuant to the provisions of this Section 6.127.040; provided, however, that the retirement administrator's salary and benefits may be determined by written agreement between the board of retirement and board of investments jointly and the retirement administrator. In the event of any inconsistency between provisions of this Section 6.127.040 and such written agreement, the provisions of the written agreement shall control.

D.

Position assignment to the Management Appraisal and Performance Plan. Upon the recommendation of the board of retirement and board of investments jointly, the board of supervisors may by ordinance, assign classes or positions to the Plan. The board of retirement and board of investments jointly shall recommend to the board of supervisors a Salary range for each class or position.

Participants who would otherwise be eligible to receive benefits under Chapter 5.26, 5.27, and 5.28 of this code shall be eligible to receive benefits under Chapter 5.26 and the appropriate benefits of either Chapter 5.27 or Chapter 5.28 of this code. In addition, Participants designated eligible to receive benefits under Subdivision 1 of Chapter 5.27 or Subdivision 1 of Chapter 5.28 of this code shall be eligible to receive up to eight days sick leave.

E.

Performance management.

1.

Performance rating categories and process.

The retirement administrator, or his/her designee, shall annually evaluate the performance of each Participant, in accordance with guidelines and in a format established by the LACERA director of human resources, which shall provide for an overall performance rating based on the following five category rating scale:

—	"Far Exceeded Expectations"
—	"Exceeded Expectations"
—	"Met Expectations"
—	"Needs Improvement Meeting Expectations"
—	"Failed to Meet Expectations"

 

The performance management process includes annually setting goals and defining performance expectations developed jointly by the retirement administrator or his/her designee and each Participant. The retirement administrator defines department values for the performance management process. At the discretion of the retirement administrator, Participants on a leave of absence during the rating period are not required to have a performance plan while on an approved leave of absence.

2.

Rating period.

a.

The rating period will be as designated by the retirement administrator. However, the performance of each Participant will be reviewed periodically by the retirement administrator or his/her designee during the performance period. At the conclusion of the rating period, the retirement administrator or his/her designee will review the performance of each Participant and complete an evaluation form in the manner established by the LACERA director of human resources. At the discretion of the retirement administrator, an evaluation form may be completed for those Participants with less than six months service in the Plan. The retirement administrator or his/her designee shall have the option of rating Participants on leave for more than six months of the rating period. Participants on leave for less then six months shall be given an overall performance rating except in the case where the LACERA director of human resources has determined that unusual circumstances exist. Where Participants on a leave of absence are rated, any Tier I Merit Salary Adjustment or Tier II Step Advancement may, at the discretion of the retirement administrator, be granted upon the Participant's return to work. Participants who are not rated shall not be granted a Tier I Merit Salary Adjustment or a Tier II Step Advancement.

b.

In the case of the retirement administrator, the evaluation shall be in accordance with the procedures established by the board of retirement and board of investments jointly.

3.

Performance evaluation timeliness. Tier I Merit Salary Adjustments and/or Tier II Step Advancements will be withheld for both the rater and employee being rated if the performance evaluation has not been submitted on a timely basis in accordance with timeframes established by the LACERA director of human resources or by the retirement administrator or his or her designee. Upon submission of the performance evaluation, the employee being rated will be eligible for a retroactive Tier I Merit Salary Adjustment or Tier II Step Advancement based on his/her performance rating. However, in no case where a performance evaluation was not submitted on a timely basis shall the rater receive a retroactive Tier I Merit Salary Adjustment or Tier II Step Advancement.

4.

Performance rating transition. For Participants previously evaluated under Civil Service Rule 20.04, the last performance evaluation rating under Civil Service Rule 20.04 shall be used for all purposes on or after October 1, 2008 and continuing only until a new performance rating is given under Tier I or Tier II of the Plan. Performance evaluation ratings under Civil Service Rule 20.04 shall be treated as they are the same as Tier I and Tier II Plan ratings as follows:

a.

Permanent Employees.

"Outstanding"	= "Far Exceeded Expectations"
"Very Good"	= "Exceeded Expectations"
"Competent"	= "Met Expectations"
"Improvement Needed"	= "Needs Improvement Meeting Expectations"
"Unsatisfactory"	= "Failed to Meet Expectations"

 

b.

Probationary Employees.

"Competent"	= "Met Expectations"
"Unsatisfactory"	= "Failed to Meet Expectations"

 

F.

Appeal process.

1.

Initial Review. In the case of a disputed individual performance evaluation and rating, the affected Participant shall be afforded full opportunity to present, in writing, his/her request for review and modification of the rating to the Participant's immediate supervisor. Such requests shall be made within 10 business days of receipt of a performance rating. The decision of the supervisor shall be final subject to review and reconsideration as outlined in subsection 2 of this section. In the case of an Assistant Executive Officer, such presentation shall be made to the retirement administrator, whose decision shall be final. In the case of the Chief, Internal Audit, LACERA, such presentation shall be made to the Audit Committee of the Board of Retirement and the Board of Investments, whose decision shall be final.

2.

LACERA Director of Human Resources Review. Within 10 business days of receipt of the decision of the supervisor under subsection 1 of this section, any affected Participant, except an assistant executive officer, may request review by the director of human resources and reconsideration by the supervisor for a performance rating of "Needs Improvement Meeting Expectations" or "Failed to Meet Expectations." The director of human resources shall review the process and submit recommendations to the retirement administrator, who will then render a final decision on the evaluation and rating. The decision of the retirement administrator shall be conclusive.

G.

Tier I and Tier II Management Appraisal and Performance Plan General Salary Adjustment provisions. The retirement administrator shall recommend, as appropriate, and the board of retirement and board of investments jointly may approve General Salary Adjustments for Participants. General Salary Adjustments are adjustments that are across-the-board in nature and that affect the Salary Structure for Tier I and Tier II. General Salary Adjustments, where implemented, are intended to keep pace with external salary inflation and preserve internal pay relationships with other LACERA employees who are not Participants. In recommending a General Salary Adjustment, the retirement administrator shall consider both LACERA's operational needs, including the need to recruit and retain quality personnel under the Plan, and LACERA's ability to pay for the adjustments.

H.

Tier I and Tier II Management Appraisal and Performance Plan basic salary structures.

1.

Reassignment of Positions. The retirement administrator shall recommend to the board of retirement and board of investments reassignment of positions to higher or lower Tier I or Tier II Salary ranges when appropriate as necessitated by external market conditions or changes in the duties and responsibilities of affected positions.

2.

Salary Rate Below the Minimum of the Salary Range. A Participant's salary may fall below the minimum of the Salary range as a result of a Salary Structure adjustment. In such case, there shall be no adjustment in the Participant's salary absent specific authorization and instruction from the board of retirement and board of investments jointly or the retirement administrator. When an employee's salary rate falls below the minimum of the Salary range, it shall not constitute a demotion.

3.

Placement or movement in Salary Range. By specific action, the board of retirement and board of investments jointly or the retirement administrator may provide for salary placement or subsequent movement of an employee at any rate within the established Salary range for the position he/she holds. Movement in the Salary range may result in either an increase or decrease to a Participant's current salary.

4.

Equivalency of Compensation. An employee who is receiving additional compensation pursuant to Section 6.10.070, Section 6.10.073 A and B, Section 6.44.015, Section 6.50.020, or Section 6.64.020 A of this code shall, at the time his or her position is assigned to the Plan, be designated a salary rate on the appropriate Salary range that is not less than his/her then current salary, including such additional compensation.

5.

Change of Status. When a person receives a change of classification, is transferred, or is appointed from an eligible list to a position, such change of status shall not be deemed a promotion or demotion when there is a difference of less than 2.75 percent between the Control Point of the old Salary range and the Control Point of the new Salary range or between the Control Point of the new Salary range and the highest step of a position not designated for the Plan. Said person will be placed within the Salary range at his/her then current salary, or for Tier II, placed on the nearest step that does not result in a decrease in salary for the participant. Where the new position is outside the Plan, the employee's salary step placement shall be determined as otherwise provided by this code.

6.

Reduction of Salary Range. When a person continues to hold a position whose Salary range is reduced or which is reclassified to a lower level, said person will be placed within the new Salary range at his/her current salary, or for Tier II, placed on the nearest step that does not result in a decrease in salary for the participant. If the current salary is higher than the new salary range maximum, said person's rate of pay shall be identified as a Y-Rate, which shall remain until such time as the Y-Rate is within the Salary range for the position.

7.

Appointment to Lower-Level Position. When a person on a higher position is appointed from an eligible list to a lower-level position, or is voluntarily reduced, he/she shall be placed at any salary within the Salary range for the lower-level position or his/her current salary, whichever is less. Notwithstanding any other provision of this subsection 7, a person appointed prior to completion of his/her probationary period on the higher position shall be placed at a salary within the Salary range of the lower position, in accordance with the provisions of Section 6.08.345.

8.

Equivalency of Grade. A class in Tier I is deemed to be equal in grade to a class in Tier II if the two Salary Ranges are equal in terms of the minimum and maximum rates as indicated by the numeric designation assigned to the Salary ranges. (A class compensated at LR10 in Tier I is, for example, equal in grade to a class compensated at LS10 in Tier II). A class in Tier I or Tier II is deemed equal in grade to a class paid in accordance with Chapter 6.08, Part 1 of this title if the top step of the class compensated under Part 1 is less than 2.75 percent above or below the Control Point of the Salary range for the Tier I or Tier II class as the case may be.

9.

Exception for Certain Participants. The compensation of any Participant employed in a class or position designated by an item sub other than "A" or "L" pursuant to the provisions of Section 6.28.020 A shall be limited to that provided by this subsection. Such Participant shall be compensated at a salary rate not to exceed the Control Point of the Salary range or at any salary within the Salary range, with the concurrence of the retirement administrator. The salary rate for such Participants shall be adjusted in accordance with the approved General Salary Adjustments provided the retirement administrator certifies such Participant's performance is equivalent to "Met Expectations" or better.

I.

Demotion. Upon demotion of a Participant from a higher-level position to a lower-level position the Participant's Salary shall be determined as follows:

1.

Permanent Status. Any person who has completed the probationary period for the higher-level position and voluntarily demotes to another position on a lower Salary range shall be placed at any salary within the lower Salary range, provided said salary does not exceed the maximum of the new Salary range for the lower-level position or his/her current salary, whichever is less. When a person is involuntarily demoted for discipline or performance reasons, the Appointing Authority may place said person at any place within the Salary range of the lower-level position at a rate not to exceed his/her current salary.

2.

Probationary Status. Any person demoted to another class prior to completion of the probationary period for the higher-level position shall be returned to the salary held prior to the promotion as though the person had never occupied the higher-level position.

3.

Demotion to Position Outside the Plan. Any person demoted to a class not compensated pursuant to the provisions of this Section 6.127.040 shall be placed at an appropriate salary in accordance with the provisions of Section 6.08.110 of Part 1 of this code.

J.

Reinstatement, reemployment, and restoration.

1.

Reinstatement. The Salary of a person reinstated to a Tier I position following separation from County service will be determined in accordance with the provisions of Section 6.127.040 M.1 and the salary of a person reinstated to a Tier II position following separation from County service will be determined in accordance with the provisions of Section 6.127.040 P.1, as if the person was entering County service as a new hire. However, persons reinstated pursuant to Government Code Section 31680.7 may be placed at any salary rate not to exceed the salary paid to said person prior to retirement unless a higher rate is specifically authorized by the retirement administrator.

2.

Reemployment. A person reemployed under Civil Service Rule 19.08 to the position held immediately prior to separation will be reemployed at the same salary rate within the Salary range for the position held prior to separation or the minimum of the Salary range, whichever is greater. A person reemployed on a different position than that previously held prior to separation will be reemployed at the maximum of the Salary range for the new position or at the same salary paid to said person prior to separation, whichever is the lesser. An employees whose last performance rating was "Needs Improvement Meeting Expectations" or "Failed to meet Expectations" shall not be reemployed.

3.

Restoration. When a person is restored to a higher-level position in either Tier I or Tier II, the person may be placed within the Salary range at his/her current salary or his/her previous salary. If the salary falls below the minimum of the Salary range for the restored position, the employee shall be placed at the minimum of the Salary range for the restored position.

K.

Special provisions. The provisions of Chapter 6.10 shall apply to Participants except as modified, deleted, or supplemented below. Special rates shall not be included in base salary for the purpose of calculating pay increases.

1.

Temporary Assignments—Special Rate. Any Participant assigned to perform all of the significant duties of a higher-level position in an acting or temporary capacity during the absence from work of an incumbent of an included position or when such position is vacant for 30 calendar days or longer, shall be provided, during the term of the assignment, additional compensation of 5.5 percent. The retirement administrator may approve a higher amount that does not exceed the maximum of the Salary range for the higher level position and may waive the 30 day requirement based on the needs of the service.

2.

Out-of-Class Assignments. The provisions of Section 6.10.040 shall not apply to Participants.

3.

Manpower Shortage Recruitment Rates. The provisions of Section 6.10.050 shall not apply to Participants.

4.

Manpower Shortage Ranges. The provisions of Section 6.10.060 shall not apply to Participants; provided, however, that in addition to all other compensation provided by this code, the retirement administrator may adjust the salary of one or more Participants up to 11 percent pursuant to provisions in Section 6.10.060 when such adjustment is necessary to preserve supervisory pay differentials or to maintain internal pay equity following adjustments in pay for non-participants pursuant to Section 6.10.050 or Section 6.10.060. Such additional compensation may be discontinued by the retirement administrator in the same manner and subject to the same terms and conditions as such pay under Section 6.10.050 may be discontinued for non-participants.

5.

Additional Compensation for Supervisors. The provisions of Section 6.10.070 shall not apply to Participants; provided, however, that in addition to all other compensation provided by this code, the retirement administrator may adjust the salary of a Participant when such adjustment is appropriate to maintain a supervisory differential of up to 5.5 percent between the Participant and his/her highest paid subordinate providing such organization is permanent and has been approved by the retirement administrator. Such additional compensation may be discontinued by the retirement administrator in the same manner and subject to the terms and conditions as such pay under Section 6.10.070 may be discontinued.

6.

Assignment of Additional Responsibility. The provisions of Section 6.10.073 shall apply to Participants except that such additional compensation authorized in accordance with the provisions of Section 6.10.073 shall be up to 11 percent of a Participant's current salary.

7.

Merit Bonuses for Managers. The provisions of Section 6.10.075 shall not apply to Participants.

8.

Acting Department Head—Additional Compensation. Participants may be provided additional compensation of 5.5 percent, unless a higher amount is approved by the retirement administrator.

9.

Standby Pay. The provisions of Section 6.10.120 shall not apply to Participants.

L.

Transition to Management Appraisal and Performance Plan - Tier I and Tier II.

1.

Notwithstanding any other provision of this code, any employee who, on September 1, 2008, was a Participant in the Plan and who, on October 1, 2008 is a Participant in Tier I of the Plan, as amended, shall receive no change in salary on October 1, 2008 as a consequence of any amendments to the Plan which became operative on that date. The Participant's actual salary in such case may or may not fall within the established Tier I Range.

2.

Notwithstanding any other provisions of this code, any employee who, on September 1, 2008, was a Participant in the Plan and who, on October 1, 2008, is a Participant in Tier II of the Plan, as amended, shall, effective October 1, 2008, be placed on the Tier II salary step closest to the Participant's September 1, 2008 salary that does not result in a decrease in salary.

M.

Tier I establishment of salary upon appointment. A person appointed to a class or position designated as participating in Tier I of the Plan shall be paid as follows:

1.

Appointment of Persons Not Currently Employed by LACERA. The retirement administrator may designate a salary at any rate within the first three quartiles of the Salary range established for the position to which the person is being appointed. Appointment at a salary rate within the fourth quartile of the Salary range shall require prior approval by the board of retirement and board of investments jointly.

2.

Promotional Appointments. A person being promoted from another position in county or LACERA service shall be compensated at a salary within the Salary range of the higher position, except that such person shall receive an increase of at least 5.5 percent, rounded to the nearest dollar, above his/her previous base salary but not less than the minimum of the Salary range. Persons compensated at a Y-Rate shall receive an increase of 5.5 percent, rounded to the nearest dollar, over the maximum of the Salary range for the person's present position. If the person would thereby suffer a reduction in salary, said person will be placed at his/her current salary or at such higher salary as may be specifically authorized by the retirement administrator.

N.

Tier I General salary adjustment provision. General Salary Adjustments for Tier I Participants will take the form of a percentage change in the LR-Range Salary structure on specific dates approved by the board of retirement and board of investments jointly with concurrent changes in the actual salaries of Participants. Only Tier I Participants who have received a current performance evaluation of "Met Expectations" or better shall receive a General Salary Adjustment.

O.

Tier I merit salary adjustment provisions. Annually, the retirement administrator shall grant a Merit Salary Adjustment, ranging from a minimum of zero percent to a maximum of 5 percent. Such Merit Salary Adjustments shall be limited to Participants whose current performance rating is "Met Expectations" or higher and shall take effect on October 1st of each year except as otherwise provided by this Plan and provided further that such adjustment shall be limited to Participants who have worked at least six months in the Tier I position. Such adjustments may apply to and/or result in a salary that falls outside the established Tier I Salary range.

P.

Tier II establishment of step placement upon appointment. A person appointed to a class or position designated as participating in the Tier II Management Appraisal and Performance Plan shall be paid as follows:

1.

Appointment of Persons Not Employed by the county or LACERA. For persons not employed by the county or LACERA and who are appointed to positions participating in the Tier II Management Appraisal and Performance Plan, the retirement administrator may designate any step up to and including step 12 of the Salary range established for the position to which the person is being appointed, provided the retirement administrator makes a written finding based on an analysis of factors to justify hiring above the minimum of the Salary range. Appointment to a salary rate greater than step 12 shall require prior approval of the board of retirement and board of investments jointly.

2.

Promotional Appointments. A person being promoted from another position in county or LACERA service shall be compensated at a salary within the Salary range of the higher position, except that such persons shall receive an increase of at least 5.5 percent, plus step placement, above his/her previous base salary, but not less than the minimum of the Salary range. Promotional increases greater than 5.5 percent, plus step placement, shall require the approval of the retirement administrator. Persons compensated at Y-Rate shall receive the salary within the Salary range of the higher-level Position which provides an increase of 5.5 percent over the maximum of the Salary range for the person's present position. If the person would thereby suffer a reduction in salary, said person will be placed at his/her current salary or as such higher salary as may be specifically authorized by the retirement administrator.

Q.

Tier II General salary adjustment provision. General Salary Adjustments for Tier II Participants will take the form of a percentage change in the LS-Range Salary structure on specific dates approved by the board of retirement and board of investments jointly with concurrent changes in the actual salaries of Participants.

R.

Tier II Step advancement provisions.

1.

Subject to retirement administrator approval, each Tier II Participant may be eligible on October 1st of each year for advancement to the next salary step on the applicable Tier II LS Range. Such step advancement shall be limited to Participants who have been MAPP participants prior to April 1st of the current fiscal year and who otherwise meet the conditions for salary step advancement set forth in the Plan.

2.

Step Advancement up to and including step 12 requires, in addition to the provisions of subsection A above, that a Participant have a current performance rating of at least "Met Expectations."

3.

Step Advancement beginning with Step 13 and above requires, in addition to the provisions of subsection A above, that a Participant have a current performance rating of at least "Exceeded Expectations" or better.

S.

Chief, Internal Audit, LACERA. As to the Chief, Internal Audit, LACERA, "Appointing Authority" means:

1.

The Audit Committee of the Board of Retirement and the Board of Investments, with respect to performance management and administering annual salary adjustments, including the actions specified in Section 6.127.040.B.10., E., H., K., P., and R. of this code.

2.

The Board of Retirement and the Board of Investments jointly, upon the recommendation of the Audit Committee of the Boards, with respect to appointment, discipline, dismissal, and/or removal in accordance with Civil Service Rules, except that the retirement administrator may administer discipline limited to verbal and written counseling and written warnings.

(Ord. 2018-0018 § 6, 2018; Ord. 2015-0045 § 4, 2015; Ord. 2012-0013 § 2, 2012: Ord. 2009-0013 § 11, 2009.)

APPENDICES FOR TITLE 6