Chapter 5.33 THE CHOICES PLAN

The following terms when used herein with initial capital letters, unless the context clearly indicates otherwise, shall have the following respective meanings:
A. “Benefit” means cash and/or one or more Nontaxable Benefits or Taxable Benefits.
B. “Board” means the Los Angeles County board of supervisors.
C. “CAO” means the chief administrative officer of the County appointed by the Board pursuant to the Los Angeles County Code.
D. “Code” means the Internal Revenue Code of 1986, as amended.
E. “Contribution” means any Nonelective Contribution or Elective Contribution made on behalf of a Participant pursuant to Section 5.33.040.
F. “County” means the County of Los Angeles and (1) any governmental entity of which the Board is the governing body; and (2) the Los Angeles County Municipal Courts and the Los Angeles County Superior Court to the extent the operation of this Plan in said courts is otherwise authorized by state law or rules of court.
G. “Dental Insurance Plan” means any of the dental insurance plans included in Items 6, 7 and 8 in the Materials definition set out in subsection M of this section.
H. “Domestic Partner” means a qualified person pursuant to the provisions of Chapter 2.210 of the Los Angeles County Code.
I. “Effective Date” means July 1, 1989.
J. “Elective Contribution” means the amount allocated to specific Taxable Benefits and/or Nontaxable Benefits at the election of a Participant equal to a reduction in his Eligible Earnings pursuant to Section 5.33.040 B.
K. “Eligible Earnings” means any compensation paid to an Eligible Employee for service performed for the County which is currently includable in gross income under the Code.
L. “Eligible Employee” means a full-time permanent employee of the County who is not in an Excluded Bargaining Unit and who is designated by the Board as eligible to participate in the Plan. For purposes hereof, “full-time permanent” means any employee appointed to an “A,” “M” or “N” item pursuant to Title 6 of the Los Angeles County Code.
M. “Excluded Bargaining Unit” means an employee representation unit, for which there is no agreement between the representatives of the unit and the County as to the extension of the Plan to the employees in the unit.
N. “Materials” means the booklets, manuals, handbooks, contracts, plan documents or sections thereof and other provisions of the Los Angeles County Code relating to the County-sponsored or County-approved union-sponsored health and welfare plans listed below, as the same may be amended or restated from time to time:
1. Kaiser Foundation Health Plan, Inc.;
2. Cigna Health Plans;
3. California Association of Professional Employees Health (CAPE) Plan;
4. Los Angeles County Fire Fighters Local 1014 Health and Welfare Plan;
5. Association for Los Angeles Deputy Sheriffs (ALADS) Health Plan;
6. Delta Dental Plan;
7. DELTACARE;
8. Safeguard Health Plans, Inc. Dental Plan;
9. Life insurance provided by the Cigna Employee Benefits Companies exclusive of any life insurance provided under Section 5.36.070 or 5.36.075 of the Los Angeles County Code;
10. Accidental death and dismemberment insurance provided by the Cigna Employee Benefits Companies;
11. The Choices Health Care Spending Account Plan;
12. The Choices Dependent Care Spending Account Plan;
13. LTD Health Insurance provided under subsection H of Section 5.38.020 of the Los Angeles County Code.
O. “Medical Insurance Plan” means any of the medical insurance plans included in Items 1 through 5 of the Materials definition set out in subsection N of this section.
P. “Nonelective Contribution” means the amount available for allocation to particular Taxable Benefits and/or Nontaxable Benefits or for receipt as additional Eligible Earnings by a Participant pursuant to Section 5.33.040 A.
Q. “Nontaxable Benefit” means participation in any health or welfare program sponsored by the County, or sponsored by an employee union and approved by the County, insured or uninsured, now existing or hereafter adopted, described in the Materials definition, the cost of which is excludable from the gross income of the Participant pursuant to Section 79, 105, 106 or 129 of the Code or any other applicable Code section as the same may be amended.
R. “Participant” means any Eligible Employee or former Eligible Employee who meets the requirements for participation in the Plan set forth in Sections 5.33.030 and 5.33.050.
S. “Plan” means the Choices Plan, as the same may be amended or restated from time to time.
T. “Plan Year” means the period July 1, 1989 through December 31, 1989; provided, however, that, with respect to all periods subsequent to December 31, 1989, Plan Year shall mean the calendar year.
U. “Taxable Benefit” means participation in certain health or welfare programs provided or sponsored by the County, insured or uninsured, now existing or hereafter adopted, described in the Materials definition, the cost of which will be treated by the County as includable in the gross income of the Participant pursuant to the Code as the same may be amended.
V. “Three Party Medical Insurance Coverage” means medical insurance coverage for a Participant and two or more of his dependents. Such coverage must be provided through the Plan by a Medical Insurance Plan.
W. “Two Party Medical Insurance Coverage” means medical insurance coverage for a Participant and one of his dependents. Such coverage must be provided through the Plan by a Medical Insurance Plan. (Ord. 2006-0003 § 1, 2006; Ord. 2004-0001 § 19, 2004: Ord. 2000-0074 § 3, 2000: Ord. 98-0076 § 13, 1998: Ord. 94-0102 § 17, 1994: 93-0004 § 6, 1993: Ord. 89-0053 § 1 (part), 1989.)

A. Commencement of Participation. Each person employed by the County who is an Eligible Employee on February 28, 1989 shall become a Participant pursuant to the following:
1. Each person who is an Eligible Employee on February 28, 1989 and who is enrolled in a Medical Insurance Plan as of February 28, 1989, shall become a Participant on the Effective Date. Any other person who is an Eligible Employee on February 28, 1989 shall become a Participant on the Effective Date provided he completes the election procedure set forth in Section 5.33.060A.
2. Each person who becomes an Eligible Employee after February 28, 1989, and who, as of the date he becomes an Eligible Employee, is enrolled in a Medical Insurance Plan, shall become a Participant on the earlier of (a) the first day of the calendar month next following the first date he becomes an Eligible Employee and completes the election procedure set forth in Section 5.33.060A; or (b) the first day of the calendar month next following the ninetieth day after the first date he becomes an Eligible Employee. Any other person who becomes an Eligible Employee after February 28, 1989 shall become a Participant on the first day of the calendar month next following the first date he becomes an Eligible Employee and completes the election procedure set forth in Section 5.33.060A.
B. Effect of Participation. Eligibility to participate in the Plan shall entitle all Eligible Employees and Participants to select Benefits before such Benefits become currently available to them during the whole or part of a Plan Year, from among the Benefits included under the Plan for such Plan Year, and then only to the extent provided herein. Participation in the Plan shall not be deemed or construed in any manner whatsoever as entitling any Participant to receive any Benefit now existing or hereafter adopted by the Board absent such Participant meeting the eligibility and participation requirements of such Benefit.
C. Termination of Participation. Participation in the Plan shall terminate when the Participant ceases to be an Eligible Employee; provided, however, that any provisions relating to a particular Benefit, as set forth herein or in the Materials, which continue the right of the Participant to receive such Benefit shall apply although he is no longer an Eligible Employee. When a person terminates participation in the Plan, but continues to be an employee of the County eligible for part or all of the Taxable Benefits and/or Nontaxable Benefits to which he was entitled immediately prior to such termination, he shall be deemed to have authorized the County to convert his Elective Contributions, if any, to employee payroll deductions, or to otherwise initiate employee payroll deductions, as required, to continue such Taxable Benefits and/or Nontaxable Benefits. Such payroll deductions may be adjusted from time to time by the County in accordance with any increases or decreases in the cost of the Taxable Benefits or Nontaxable Benefits.
D. Participation Following Previous Termination. After a termination of participation in the Plan pursuant to subsection C of this section, the subsequent participation of any person who again becomes an Eligible Employee shall occur at the time and in the manner set forth in subsection A of this section. (Ord. 94-0102 § 18, 1994: Ord. 89-0053 § 1 (part), 1989.)

A. Nonelective Contributions.
1. Except as otherwise provided herein, for each month of the 2010 Plan Year (commencing with County pay warrants issued on or about January 15, 2010), the County shall contribute to the Plan on behalf of each Participant an amount equal to $244.00, unless (1) said Participant is entitled to One Party Medical Insurance Coverage with respect to said month, in which case, the County shall contribute an amount equal to $573.56, or (2) said Participant is entitled to Two Party Medical Insurance Coverage with respect to said month, in which case, the County shall contribute an amount equal to $1,046.49; or (3) said Participant is entitled to Three Party Medical Insurance Coverage with respect to said month, in which case, the County shall contribute an amount equal to $1,236.23.
2. Except as otherwise provided herein, for each month of the 2011 plan Year (commencing with County pay warrants issued on or about January 15, 2011), the County shall contribute to the Plan on behalf of each Participant an amount equal to $244.00, unless (1) said Participant is entitled to One Party Medical Insurance Coverage with respect to said month, in which case, the County shall contribute an amount equal to $614.86, or (2) said Participant is entitled to Two Party Medical Insurance Coverage with respect to said month, in which case, the County shall contribute an amount equal to $1,121.84; or (3) said Participant is entitled to Three Party Medical Insurance Coverage with respect to said month, in which case, the County shall contribute an amount equal to $1,325.24.
3. No Nonelective Contribution shall be contributed for any Participant if he has not been in a pay status for at least eight hours during the prior month. Nonelective Contributions shall be reflected in County payroll warrants issued on or about the fifteenth day of the month following the month in which the requisite pay status was completed. 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, an advance of approximately one-half the monthly Nonelective Contributions received as additional Eligible Earnings in accordance with Section 5.33.050F shall be reflected in County payroll warrants issued on or about the thirtieth day of the month in which the requisite pay status was completed and the remainder of such additional Eligible Earnings shall be reflected in County payroll warrants issued on or about the fifteenth day of the month following the month in which the requisite pay status was complete.
B. Elective Contributions. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may irrevocably elect to have an additional dollar amount contributed by the County during a Plan Year for each month that he participates in the Plan as an Elective Contribution, not to exceed his Eligible Earnings for such month, and to have his Eligible Earnings reduced each month by an amount equal to such Elective Contribution; provided, however, that no Elective Contribution shall be contributed for any Participant if he has not been in a pay status for at least eight hours during the prior month. Such Elective Contribution on behalf of a Participant each month shall equal the amount necessary to fund the Taxable Benefits and/or Nontaxable Benefits chosen by such Participant pursuant to the election procedures set forth in Section 5.33.060, after first applying the Nonelective Contribution for such month to the cost of such Taxable Benefits and/or Nontaxable Benefits. In the event of contractual renegotiation, change in method of funding, or substitution of a Taxable Benefit and/or Nontaxable Benefit during a Plan Year, the County, without prior notice to Participants, may automatically adjust the Elective Contributions made for, and/or the Eligible Earnings paid to, Participants who have selected such Taxable Benefits and/or Nontaxable Benefits, in accordance with increases or decreases in the cost of the Taxable Benefits and/or Nontaxable Benefits. 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, monthly Elective Contributions shall be apportioned over semi-monthly pay periods so that approximately one-half the monthly Elective Contributions shall be deducted from the Participant’s Eligible Earnings as reflected in County payroll warrants issued on or about the thirtieth day of the month to which the Eligible Earnings relate and the remainder of the monthly Elective Contributions shall be deducted from the Participant’s Eligible Earnings reflected in County payroll warrants issued on or about the fifteenth day of the following month. (Ord. 2010-0014, § 31, 2010; Ord. 2009-0055 § 1, 2009; Ord. 2008-0014 § 11, 2008; Ord. 2004-0001 § 20, 2004; Ord. 2000-0074 § 4, 2000: Ord. 99-0028 § 3, 1999: Ord. 98-0076 § 14, 1998: Ord. 94-0102 § 19, 1994: Ord. 93-0004 § 7, 1993; Ord. 91-0006 § 2, 1991; Ord. 89-0158 § 1, 1989; Ord. 89-0053 § 1 (part), 1989.)

A. Nontaxable Benefits. Except as provided in subsection C of this section, each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of the Plan Year may allocate Contributions to be made on his behalf to any or all of the Nontaxable Benefits described in the Materials, which are incorporated herein by reference. Eligibility to receive any particular Nontaxable Benefit by a Participant shall require satisfaction of all waiting periods, eligibility rules, election requirements, and other requirements and conditions which are set forth in the Materials and which are applicable to him and his employment and relate to such Nontaxable Benefit.
B. Taxable Benefits. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may allocate Contributions to be made on his behalf to any or all of the Taxable Benefits approved for inclusion in Subdivision 1 of the Plan by the Board. The cost of a Taxable Benefit shall be treated as being paid to the Participant as cash and then deducted from his earnings and contributed to the Plan on an after-tax basis in an amount equal to the cost of the cost of that Taxable Benefit as determined pursuant to Section 5.33.050D. Eligibility to receive or waive any particular Taxable Benefit by a Participant shall require satisfaction of all waiting periods, eligibility rules, election requirements and other requirements and conditions which are set forth in the Election Information or the Materials and which are applicable to him and his employment and relate to such Taxable Benefit.
C. With respect to any Plan Year, no person shall be a Participant in the Plan unless he (1) elects coverage under a Medical Insurance Plan, or certifies to the County that he has separate medical insurance coverage through a source other than the Plan; and (2) elects coverage under a Dental Insurance Plan, or certifies to the County that he has separate dental insurance coverage through a source other than the Plan. Said certification shall be made in a manner determined by the County.
D. Deletions, Additions and Changes in Taxable Benefits and Nontaxable Benefits. The Board in its sole discretion shall designate the Taxable Benefits and Nontaxable Benefits available under the Plan in respect of any Plan Year. The Board shall have the right during any Plan Year to (1) renegotiate the terms of any County-sponsored group insurance contract providing a Taxable Benefit or Nontaxable Benefit for such Plan Year; (2) approve any renegotiated terms of any union-sponsored group insurance contract providing a Taxable Benefit or Nontaxable Benefit for such Plan Year; (3) substitute a new Taxable Benefit or Nontaxable Benefit comparable to one available at the beginning of such Plan Year; or (4) change the method of funding any Taxable Benefit or Nontaxable Benefit for such Plan Year, without affecting Participant’s elections thereof. The County shall notify Participants in writing prior to the commencement of a Plan Year as to any (a) Taxable Benefit or Nontaxable Benefit deletions or additions under the Plan; (b) changes in the amount of Contributions required in payment of any Taxable Benefit or Nontaxable Benefit or changes in the method of funding or payment of any Taxable Benefit or Nontaxable Benefit to the extent such changes are known prior to the commencement of a Plan Year; and (c) modifications in the terms and provisions of any Taxable Benefit or Nontaxable Benefit.
E. Benefit Cost Determination. The County shall determine the cost, in dollars, to be charged to a Participant to receive a Taxable Benefit or Nontaxable Benefit. In determining the cost of a particular Taxable Benefit or Nontaxable Benefit for each Plan Year, the County shall consider such factors as it determines to be appropriate, including but not limited to, the cost of purchasing insurance, if applicable, to provide such Taxable Benefit or Nontaxable Benefit or the out-of-pocket expenses likely to be incurred by the County to provide the same, together with an appropriate amount of administrative expenses incurred in providing such Taxable Benefit or Nontaxable Benefit. The cost of receiving a particular Taxable Benefit or Nontaxable Benefit available in the Plan Year may vary among different classes of Participants who are similarly situated with respect to such factors as number of dependents, age, salary level and length of service, and may be increased or decreased during a Plan Year pursuant to the renegotiation of the group insurance contract providing such Taxable Benefit or Nontaxable Benefit, the substitution of a comparable Taxable Benefit or Nontaxable Benefit, or a change in the method of funding such Taxable Benefit or Nontaxable Benefit. Such costs shall be disclosed to Eligible Employees and Participants in writing prior to or contemporaneously with the distribution of election forms for the Plan Year as provided by Section 5.33.060A, and any increase or decrease during the Plan Year in the cost of a Taxable Benefit or Nontaxable Benefit shall be disclosed to Participants as soon as reasonably possible.
F. Cash Benefit. Any portion of a Nonelective Contribution made on behalf of a Participant which is not necessary to fund the Taxable Benefits and Nontaxable Benefits selected by the Participant shall be received by the Participant in the form of an increase in his Eligible Earnings for that month, with such amount to be reflected in County payroll warrants as described in Section 5.33.040A. (Ord. 2010-0014, § 32, 2010; Ord. 94-0102 § 20, 1994: Ord. 89-0053 § 1 (part), 1989.)

A. General Elections Procedure. Prior to the commencement of each Plan Year, or in the case of employees who become Eligible Employees during a Plan Year, prior to the first day of their participation in the Plan pursuant to Section 5.33.030A, the County shall provide an election form to each Eligible Employee and Participant who will be entitled to begin or continue participation in the Plan for such Plan Year. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year shall elect the types of Taxable Benefits or Nontaxable Benefits to be received under the Plan during the course of such Plan Year. The form and content of the election form shall be such as the County shall from time to time determine to be appropriate. All election forms shall be due and returnable to the County on or before such date as the County may specify, which date shall be no later than the day prior to the commencement of the Plan Year to which such forms relate, or in the case of Eligible Employees, the day prior to the commencement of participation.
B. Deemed Elections. Any Eligible Employee who is enrolled in a Medical Insurance Plan on the date his election form is due to be filed pursuant to subsection A of this section, or any Participant who in the current Plan Year receives one or more Taxable Benefits or Nontaxable Benefits who fails to make a timely election of Benefits for either initial participation or continued participation in the Plan, whichever is relevant, shall be deemed to have elected to receive the same type, and if applicable, the same amount, of Taxable Benefits or Nontaxable Benefits elected for the period preceding Plan participation or for the previous Plan Year. To the extent that the dollar value of the Nonelective Contribution made on behalf of such Participant exceeds the cost of such Taxable Benefits and/or Nontaxable Benefits, the Participant shall receive the difference in additional monthly Eligible Earnings during the Plan Year. To the extent that the cost of such Taxable Benefits and/or Nontaxable Benefits exceeds the Nonelective Contributions, the Participant shall be deemed to have authorized the County to reduce his Eligible Earnings by such amount each month as may be necessary to cover the excess cost of such Taxable Benefits and/or Nontaxable Benefits, in accordance with the limit set forth in Section 5.33.040B. Any Participant who fails to submit the election form on or before the due date who was not enrolled in an insured health or welfare benefit program incorporated into the Plan as a Taxable Benefit and/or Nontaxable Benefit shall be deemed to have elected to receive the entire amount of the Nonelective Contributions made on his behalf during the next Plan Year as additions to his Eligible Earnings each month during such Plan Year. 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: 1) any additional monthly Eligible Earnings received due to a Participant’s deemed election under this Section 5.33.060B shall be reflected in County payroll warrants as described in Section 5.33.040A, and 2) a Participant’s deemed authorization to have his monthly Eligible Earnings reduced shall include an authorization to have such reduction apportioned over County payroll periods and warrants as described in Section 5.33.040B.
C. Irrevocability of Elections. Except as provided in subsection D of this section, all elections made by or on behalf of Participants pursuant to subsections A and B of this section shall be irrevocable for the Plan Year for which made or deemed to be made.
D. Election Changes During the Plan Year. In the event of an extraordinary change in a Participant’s circumstances, and in accordance with any applicable regulations promulgated pursuant to Section 125 of the Code, the County, in its sole discretion, may permit such Participant during the Plan Year to change the type and/or amount of Benefits to be received under the Plan for the remainder of such Plan Year.
E. Compensation Reduction Agreement. If, in respect of any month during a Plan Year, the cost of the Taxable Benefits and/or Nontaxable Benefits elected by a Participant for such Plan Year exceeds the amount of Nonelective Contributions made on his behalf for such month, the Participant shall be deemed to have authorized the County, in accordance with the limit set forth in Section 5.33.040B hereof, to reduce his Eligible Earnings by such amount each month as is necessary to cover the excess cost of the Taxable Benefits and/or Nontaxable Benefits elected by such Participant and to make corresponding Elective Contributions to the Plan on his behalf. 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, a Participant’s deemed authorization to have his monthly Eligible Earnings reduced shall include an authorization to have such reduction apportioned over County payroll periods and warrants as described in Section 5.33.040B.
F. Participant Accounts. The County shall establish and maintain appropriate procedures and records with respect to Benefit elections and Contributions made by and on behalf of Participants pursuant to subsections A and B of this section. The County may establish one or more accounts for each Participant for the purpose of recording such Participant’s utilization of particular Taxable Benefits and/or Nontaxable Benefits, such as uninsured health care or dependent care reimbursement benefits if available, to which specific dollar amounts of Nonelective and/or Elective Contributions have been credited. In no event, however, shall such accounts represent actual deposits of Contributions into any fund, nor shall any interest be credited with respect to such accounts.
G. Forfeiture of Unused Benefits. Any amount which a Participant has elected to receive during the Plan Year as a specific Taxable Benefit or Nontaxable Benefit pursuant to the election procedure set forth in subsections A and B of this section which remains unused by the Participant at the close of the Plan Year shall be forfeited to the County; provided, however, that payments of such amount may be made to the Participant up to six months beyond the close of a Plan Year so long as such payments are made under the provisions of such specific Taxable Benefit or Nontaxable Benefit for expenses incurred by the Participant during the Plan Year. (Ord. 2010-0014, § 33, 2010; Ord. 94-0102 § 21, 1994: Ord. 89-0053 § 1 (part), 1989.)