WHO WE ARE
More than 70 years ago, California legislators recognized a public obligation to provide retirement and death benefits to County employees who retire after a career serving the public interest. In recognition of that service, the law promises them defined retirement benefits. Those hard-earned benefits help to secure the future of County retirees and their survivors. Additonally, the retirement and survivor benefits LACERA disburses each year pump significant dollars back into recipients' local communities and bolster their economies. The benefit is mutual.
Who we are
The Los Angeles County Employees Retirement Association (LACERA) administers and manages the retirement fund (Fund) for the County and outside Districts. The County Employees Retirement Law of 1937 promises Los Angeles County employees and their beneficiaries certain defined retirement benefits and mandates LACERA to pay for them. We are the largest county retirement system in the U.S. Our membership is comprised of individuals from a diverse range of careers, age groups, and ethnicities — all serving the public interest.
We are an independent governmental entity, separate and distinct from the County. Our fiduciary responsibility is to promote, enhance, and efficiently administer a financially sound retirement and healthcare benefits program through prudent investment and conservation of plan assets.
what we do
LACERA has been providing retirement, disability, and death benefits to eligible County employees, retirees, and their beneficiaries since 1938. In 1971, we began administering a retiree healthcare benefits program.
To fulfill our mission to produce, protect, and provide the promised benefits, LACERA implements solid investment and business strategies designed to serve the best interests of our current and future members and their beneficiaries. We continually integrate new technologies into our operational procedures and strive to enhance the scope and quality of the service we offer.
public service
LACERA members can be first responders, or those who make the justice system function, or physicians, nurses, or ambulance drivers. Some are voter registrars, or social workers, librarians, or lifeguards. Or countless other occupations. Regardless of job title, our members spend their careers contributing to the welfare of Los Angeles County (County). For that service, the County contributes to their promised benefits.
Gregg Rademacher
Chief Executive Officer
transparency
Administered pursuant to applicable law, we are openly operated and guided by strict corporate governance policies. This was confirmed in a 2010-2011 Los Angeles County Civil Grand Jury investigation of public retirement systems. The watchdog agency found LACERA to be “well run” and in “stronger than average financial condition.” It also noted “the County has done a good job at moderating pension costs.” We remain committed to our high standard of operation.
MANAGEMENT
LACERA is governed by two nine-member Boards: the Board of Retirement is responsible for the overall management of the retirement system; the Board of Investments is responsible for establishing LACERA's investment policy and objectives, as well as exercising authority and control over the investment management of the Fund. The day-to-day management and operation of LACERA is delegated to a Chief Executive Officer, who is appointed by both Boards.
stability
Guided by an Investment Policy Statement adopted by our Board of Investments, the Fund is prudently invested on a long-term investment horizon and structured to experience bull markets and withstand bear markets. Fund investments are strategically diversified and carefully managed to preserve capital, minimize risk of loss, and maximize returns. All assets are invested in conformity with recognized standards of care, skill, prudence, and diligence.
Over the past 15 years, 75 cents of each LACERA pension dollar has been funded by returns on investment income. Employee contributions have funded ten cents of each dollar, while employer (County) contributions have funded the remaining 15 cents.
Economic Footprint
In addition to providing financial security to County retirees and their beneficiaries, the $2.2 billion in 2010 retirement and survivor benefits LACERA disbursed also has a substantial impact on each recipient’s local community. Of that $2.2 billion, $1.8 billion was paid to more than 45,000 recipients residing in Los Angeles County. This money was infused back into local County communities through the everyday expenditures of our retirees and their survivors.
Research shows for every dollar LACERA paid in 2010 retirement benefits, the Los Angeles County economy realized an additional $1.01 in economic impacts.* This means LACERA retirees and survivors generated more than $1.8 billion in additional dollars into the County economy through the money they spent on such items as food, medical services, transportation, and entertainment. Their expenditures have a ripple effect; money spent at one local business enhances that business’ revenue, which, in turn, encourages that owner to spend more money at other local businesses. As the ripple effect continues, additional rounds of spending are generated. This ultimately leads to the creation of jobs, increased income, and expanded tax revenues.
LACERA’s lifetime benefits also protect our retirees and survivors from the need of public assistance, particularly in difficult economic cycles. The benefit is mutual.
popular annual financial report
For an easy-to-read summary of our fiscal year 2010-2011 financial and operational information, read our Popular Annual Financial Report (PAFR).
*Computation based on research compiled by Dr. Robert Fountain of Regional Economics Consultants and methodology utilized in that group’s July 2011 study for CalPERS, titled The Economic Impacts of CalPERS Pension Payments in 2010.
1/30/12