Los Angeles County Employees Retirement Association
The Los Angeles County Employees Retirement Association (LACERA) is an independent Los Angeles County agency that administers and manages the retirement fund for the County and outside Districts (Little Lake Cemetery District, Local Agency Formation Commission, Los Angeles County Office of Education, and South Coast Air Quality Management District).[3] In 2012, it managed defined benefit pension plans for 156,563 civil servants (members), including 56,752 retirees, making it the largest county retirement system in the United States.[4][5] In 2018, LACERA's net assets were worth US$55.8billion.[6]
| Agency overview | |
|---|---|
| Formed | January 1, 1938[1] |
| Headquarters | 300 N. Lake Ave. Pasadena, CA |
| Agency executives | |
| Website | lacera |
History
LACERA was established on January 1, 1938, following passage of the County Employees Retirement Law of 1937 (CERL), which mandates LACERA to pay for the defined retirement benefits of Los Angeles County employees and their beneficiaries.[1][3] In 1971, LACERA began administering a retiree healthcare benefits program.[1]
Management
LACERA is governed by two Boards, each composed of 9 members:[1]
- Board of Retirement - responsible for the overall management of the retirement system)
- Board of Investments - responsible for establishing LACERA's investment policy and objectives, and exercising authority and control over the investment management of the Fund.
Day-to-day management and operation of LACERA is delegated to a Chief Executive Officer, who is appointed by both Boards.[1]
Board of Retirement
The Board of Retirement (BOR) administers the retirement system, the retiree healthcare program, and the review and processing of disability retirement applications.[7]
The Board of Retirement's members are appointed as follows:[7]
- Four members – appointed by the Los Angeles County Board of Supervisors
- Two members – elected by general members
- One member – elected by safety members
- One member – elected by retired members
- One member – the Los Angeles County Treasurer and Tax Collector, who serves as an ex officio members, as required by California law
The Board of Retirement meets at 9 a.m. on the first Wednesday of each month and the next Thursday of the following week.[7]
Board of Investments
The Board of Investments (BOI) establishes LACERA's investment policy and objectives and exercises authority and control over the retirement fund's investment management.[8]
The Board of Investments’ members are appointed as follows:[8]
- Four members – appointed by the Los Angeles County Board of Supervisors
- Two members – elected by general members
- One member – elected by safety members
- One member – elected by retired members
- One member – the Los Angeles County Treasurer and Tax Collector, who serves as an ex-officio members, as required by California law
The Board of Investments meets at 9 a.m. on the second Wednesday of each month.[8]
Benefits
Health care benefits
LACERA provides health insurance plans for its retired members. LACERA covers 100% of healthcare premiums for Los Angeles County retirees who have at least 25 years of public service.[9] For members with 10 years of public service, LACERA contributes 40% of health care plan premiums, with an additional contribution of 4% for each additional year worked.[10]
Retirement plans
LACERA offers two tracks of retirement plans, for general members (civil servants) and for safety members (safety employees, including sheriff deputies and firefighters), further subdivided as follows:[11]
| Plan Name | Category | Open Date | Close Date | Notes |
|---|---|---|---|---|
| Plan A | General Members | - | August 31, 1977 | |
| Plan B | General Members | September 1, 1977 | September 30, 1978 | |
| Plan C | General Members | October 1, 1978 | May 31, 1979 | |
| Plan D | General Members | June 1, 1979 | December 31, 2012 | |
| Plan E | General Members | January 4, 1982 | November 27, 2012 | Non-contributory plan |
| Plan G | General Members | January 1, 2013[12] | - | Established in response to the California Public Employees’ Pension Reform Act of 2013 (PEPRA) |
| Plan A | Safety Members | - | August 31, 1977 | |
| Plan B | Safety Members | September 1, 1977 | December 31, 2012 | |
| Plan C | Safety Members | January 1, 2013[13] | - | Established in response to PEPRA |
Finances
As of June 30, 2012, LACERA's net assets were worth US$38.3 billion, a decrease of $1.1 billion, or 2.9%, from the prior year.[5] The latest actuarial valuation on June 30, 2011, determined that LACERA had a funded ratio of actuarial assets to the actuarial accrued liability of 80.6%.[5] For fiscal year (FY) 2011–12, LACERA's fiscal-year-to-date return on investments was 0.10%; the FY 2010-11 return was 20.40%.[14]
Over the past 15 years, each LACERA pensions has been funded as follows:[1]
- 75% – funded by returns on investment income
- 15% – funded with employer (County) contributions
- 10% – funded by with employee member contributions
Reciprocity
LACERA has reciprocity with the other California public retirement systems, including:[15]
- CalPERS (California Public Employees’ Retirement System)
- STRS (State Teachers' Retirement System)
- LA County Metropolitan Transportation Authority Retirement System
- Los Angeles City Employees’ Retirement System
- 19 CERL Counties (county retirement systems established County Employees Retirement Law)
- City of Pasadena
LACERA also has reciprocity with other California public agencies and districts, cities, counties, school districts, superintendents of schools and others that are covered by CalPERS or have a reciprocal relationship with CalPERS.[15]
References
- "Who We Are". LACERA. Retrieved September 16, 2013.
- "Organizational Chart". LACERA. Retrieved September 16, 2013.
- "2012 CAFR: Introduction". LACERA. 2012. Archived from the original on 6 August 2013. Retrieved 16 September 2013.
- "Los Angeles County is already a model example of pension reform" (PDF). Chief Executive Office – Office of Public Affairs. County of Los Angeles. Retrieved September 16, 2013.
- Rademacher, Gregg; Robert R. Hill; JJ Popowich (2012). "2012 Annual Report" (PDF). LACERA. Retrieved 16 September 2013.
- "2012 Comprehensive Financial Annual Report" (PDF). LACERA. 3 December 2012. Archived from the original (PDF) on 6 August 2013. Retrieved 16 September 2013.
- "Board of Retirement". LACERA. Retrieved 16 September 2013.
- "Board of Investments". LACERA. Retrieved 16 September 2013.
- Rosenblatt, Susannah (17 October 2007). "County starts fund for retirees". Los Angeles Times. Retrieved 16 September 2013.
- "FAQs - Retiree Healthcare". LACERA. Retrieved 16 September 2013.
- "Plan Book Section". LACERA. Retrieved 16 September 2013.
- "Retirement Plan G - General Member". LACERA. Retrieved 16 September 2013.
- "Safety Retirement Plan C". LACERA. Retrieved 16 September 2013.
- "LACERA Investment Status Report for 2011-12" (PDF). Chief Executive Office. County of Los Angeles. 8 August 2012. Retrieved 16 September 2013.
- "Reciprocal Systems". LACERA. Retrieved 16 September 2013.