b'1982 Significant revisions to Tiers 1 and 2 provided a 3% cap on the cost of living adjustment for all future service earned by active members and a refund of member contributions upon termination.Cost of living adjustments were prorated for the first year of retirement.Paramedics and civilian ambulance drivers were transferred from the Los Angeles City Employ-ees Retirement System to Tier 3.19831980Tier1and2activememberswerenolonger AnewTier3SafetyMemberspensionplan,requiredtocontributetothePensionSystem (formerly Article XXXV, Plan 1) was created effec- upon completion of 30 years of service.tive December 8, 1980.1984 1981The City Charter was amended to permit banks Extensive revisions to the investment provisionsand insurance companies to act as investment of the Charter provided for: advisors to the System.1.The investment of up to 70% of fund assets1985 in common stock and up to 25% of the 70% without dividend record and registration onAuthority was extended to include investment a national securities exchange; in real estate by all City of Los Angeles pension 2.Theinvestmentof35%offundassetsinsystems.short-term securities;3.Theappointmentofasecuritiescustodian1989 bank;4.A requirement to retain investment advisorsThe System began pre-funding the health insur-registered under the Investment Advisor Act; ance premium subsidy benefits.5.The selling and repurchasing of covered callOnApril26,1989,inthecaseoftheUnited options; and FirefightersofLosAngelesCityvs.theCityof LosAngeles,theCaliforniaCourtofAppeals 6.Authoritytoconducttransactionsandupheld the Los Angeles County Superior Courts exchangesofsecuritieswithoutspecificjudgment for the plaintiffs. As a result, the 3% priorapprovalfromtheBoardofPensioncap on cost of living increases instituted in 1982 Commissioners,withinestablishedguide- for Tier 1 and 2 members was lifted.lines.SECTION 9 Milestones 169'