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Retirement
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Death Benefits
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This Page Describes

• Retirement Contributions
• Contribution Rates - New Members
• Contribution Rates - Returning Members
• Contribution Rates - Transfers from Other City Departments
• Contribution Rates - Entry Age
• Suspension of Contributions
• Withdrawing Your Contributions
• Purchasing Service Credit
• Contracts Transferred from LACERS
• Purchasing Other Governmental Service
• Purchasing Maternity Leaves
• Additional Contributions
• Contributions to the Disability and Death Benefit Funds

Retirement Contributions

   Contributions are deducted from each of your biweekly paychecks as a certain percentage of your salary - excluding shift differentials, overtime and other premium allowances - and are credited to your account where they earn interest.

   The retirement program is funded through contributions made by you and the Department. These contributions, and earnings from investments, provide the money for all retirement benefits.

Contribution Rates - New Members

   If you have been continuously a member of the Plan since before June 1, 1984, your contribution rate is based on your entry age at the time you became a member.

   If you became a Plan member for the first time on or after June 1, 1984, and did not transfer to DWP from another City department, your retirement contributions are 6 % of your biweekly salary.

Contribution Rates - Returning Members

   If you were formerly a member of the DWP Plan, your contribution rate may be based on the age you were when you previously became a member. (See "Contribution Rates - Entry Age") If you are eligible to contribute based on your entry age, your contribution rate will probably be less than 6 %. The lower your entry age, the less you contribute. The situations described below should help you determine whether your contributions are based on your entry age or on the 6 % rate:

• If you were a Plan member before June 1, 1984, and later left the Department, but left your contributions in the Plan and then returned to the Department within three years, your contribution rate is based on your age when you first became a member (prior to January 1, 1984 you must have returned within six months).
   

• If you left the Department and withdrew your retirement contributions, you contribute 6 % of your biweekly salary, regardless of when you returned.
   

• If you left the Department and did not withdraw your retirement contributions, but returned after three years, you contribute 6 % of your biweekly salary.

Contribution Rates - Transfers From Other City Departments

   If you transferred to DWP directly from another City Department, you may be eligible to participate in the Reciprocal Agreement between the LACERS and the DWP Plan. (See "Reciprocal Agreement Between the DWP Plan and the LACERS"). The situations described below should help you determine how participation affects your retirement contributions to the DWP Plan. If you have questions, you should contact the Retirement Plan Office.

• If you made contributions based on your entry age at LACERS, and you are eligible to participate in the Reciprocal Agreement, you make contributions to the DWP Plan based on that same age.
   

• If you were contributing 6% of your biweekly salary to LACERS, you will continue to contribute 6% of your biweekly salary to the DWP Plan.
   

• If you are ineligible to participate in the Reciprocal Agreement because you either had a break in service of more than seven calendar days since termination of employment at another City Department, or requested not to participate in the Reciprocal Agreement, or withdrew your retirement contributions from LACERS, you contribute 6% of your biweekly salary to the DWP Plan. However, if you became a member of the DWP Plan before June 1, 1984, your contributions are based on a new entry age.
   

• If you transferred to DWP and became a member of the Plan before the Reciprocal Agreement became effective on February 1, 1980, and as of that date had re-deposited at DWP at least some of the contributions required to purchase previous City service credit, and did not have a break in service of six or more months between your employment at another City Department and your employment at DWP, and have not already requested to have your future contributions based on your entry age at LACERS, you should call the Membership section at 213-367-1695 as soon as possible.
   

• If you transferred to DWP and became a member of the Plan before the Reciprocal Agreement became effective on February 1, 1980, and as of that date had left your retirement contributions on deposit at the LACERS, and your contributions are still on deposit at the LACERS, and you did not have a break in service of six or more months between your employment at another City Department and your employment at DWP, you should call the Retirement Plan Office as soon a possible to arrange to have your contributions transferred to the DWP Plan and to apply to have your future contributions to the Retirement Fund based on your entry age at the LACERS.

Contribution Rates - Entry Age

   If your contributions are based on your entry age, the table that follows shows the percentage of biweekly gross salary which you contribute. These rates became effective June 19, 1989.

   Exceptions:
          Employees in the Supervisory Clerical and Administrative Representational Unit Pay 1.00 % less for each entry age.
          Occupational Health Nurses who became Plan members on or before October 1, 1988 pay 1.39 % less for each entry age.

   For example, if your entry age is 31, your contribution rate is 3.722 %. If your biweekly salary rate on the first day of the payroll period is $1,000, you will contribute $37.22 (0.03722 x $1,000) to the Retirement Fund for that payroll period. In addition you will contribute $3.00 each payroll period for Disability and Death Benefit coverage.

Suspension of Contributions

   Contributions will be suspended during each complete payroll period you are on a leave of absence without pay. (See "Disability - Coverage While on Leave of Absence" for continuance of disability coverage, and "Death Benefits - Coverage While on Leave of Absence" for continuance of death benefit insurance coverage)

   Contributions will also be suspended for each complete payroll period you are on disability leave or Workers' Compensation that is longer than two weeks.

   However, if you receive a regular paycheck for any part of a payroll period, even one day, your paycheck will be deducted for the entire payroll period.

Withdrawing Your Contributions

   If you leave the Department before retirement, you may withdraw your retirement contributions plus accrued interest, or you may leave them on deposit with the Plan.

   If you withdraw, the taxable portion of your withdrawal is subject to mandatory withholding of Federal income tax unless you roll it over into a qualified pension plan or an IRA account, and may be subject to additional Federal and to California State Income Tax and a Federal Excise Tax. If you later return to Department service, you may pay a higher retirement contribution rate.

   Processing of withdrawal requests normally takes approximately eight weeks.

   If you have left Department employment and want to withdraw your funds, you should call the Retirement Plan Office to arrange for the withdrawal at 213-367-1695.

   If you leave your contributions with the Plan, you may be eligible later to receive a deferred or "Vested" Retirement; and if you return to Department service within 3 years, your retirement contribution rate will be the same as when you left. (See "Delayed or 'Vested' Retirement Rights").

Purchasing Service Credit

   You may be eligible to purchase credit for previous periods of service, which will result in a higher monthly allowance when you retire. If you are eligible to purchase one or more of the service credit types listed below, you should arrange to do so as soon as possible to minimize significant interest penalties.

   You may make your purchase in a lump sum or by payroll deduction. Regardless of the method you choose, once the purchase is complete, your service credit will be restored. If you retire before completing the redeposit, you will receive partial service credit.

Credit for Plan Qualification Period
   If you became a Plan member for the very first time before July 1, 1991, you may be able to purchase service credit for up to 26 weeks of Department service which led to your qualification for membership in the Plan.

   If your very first membership date was after July 1, 1991, you began making retirement contributions immediately and have no Qualification Period to purchase.

Redeposit of Withdrawn Contributions
   If you are reemployed by the Department after previously leaving and withdrawing your contributions, you may redeposit the amount you withdrew, plus interest due, to restore your retirement service credit. Also, if you previously were a member of LACERS, withdrew contributions made to that system, and are now employed by the Department, you may redeposit your LACERS contributions plus interest due in the DWP Plan.

Contracts Transferred From LACERS

   If you were purchasing previous service credit through a contract while you were a member of LACERS, and you are eligible to participate in the Reciprocal Agreement, the incomplete LACERS contract will be transferred automatically to DWP and you will continue making payments to the DWP Plan. You will receive credit for the service already purchased when the contract is transferred.

   However, some contracts cannot be continued at DWP. Contact the Retirement Plan Office if you transfer to DWP with any contract in effect.

Purchasing Other Governmental Service

   Other Governmental Service (OGS) allows Plan members to purchase eligible prior governmental service credit including military service. The OGS must be full-time, paid, and at least six continuous months.  Half Time Civil Service Employees may purchase military service but not other types of OGS.

Purchasing Maternity Leaves

   Plan members may also purchase unpaid Department or City maternity leaves that were at least one continuous month in length. This does not include periods in which a member was paid disability. Any eligible maternity leave must be purchased and paid in full.

Additional Contributions

   You may make Additional Contributions to the Retirement Fund which will provide you with a monthly annuity. This would be in addition to your retirement allowance based on your normal contributions. (See "Additional Annuity Available")

   You may contribute up to 10% of your gross biweekly salary as Additional Contributions.

Additional Contributions earn interest while on deposit; and although you can stop making them, they cannot be withdrawn unless you terminate and withdraw all the contributions you have made to the Retirement Fund or transfer to another City Department and allow your normal contributions to be transferred to LACERS.

  Download the Additional Contributions Form in PDF.  You will need to submit an original signed copy to the Membership Section of the Retirement Plan Office. 

Contributions to Disability and the Death Benefit Funds

   Each biweekly payroll period you contribute $1.00 each for Temporary Disability, Permanent Total Disability, and Insured - Life Death Benefits. (See the "Disability" section, and the “Death Benefits” section)

   There are times when your disability and death benefit coverage will continue automatically without your contributions. (See "Coverage While on Leave of Absence" for Disability and for Death Benefit)

• On to Your Retirement Allowance