LACERA in the News

LACERA is a premier retirement system serving one of the largest retirement populations in the United States. We are viewed as industry leaders for our administrative practices, innovative strategies, advanced technological applications, and general expertise. In order to best service our members, we believe it is important for management, staff, and Board members to be up-to-date on retirement-related issues and information. LACERA encourages learning via workshops, classrooms, and other educational experiences. We also attend, participate, and support other county and state-wide retirement associations; giving presentations regarding investments, benefits, communications, and legal issues.

ANNUAL OFFSITE MEETING FILLED WITH GREAT SPEAKERS AND NEW INFORMATION

Staying informed and up to date plays a big part in LACERA's philosophy and operations. We believe our members are best served by thoughtful and knowledgeable boards and management. With that in mind, every January we hold an offsite educational and fiscal planning conference to facilitate the free flow of information and ideas between LACERA Board members and management. This year's Board Offsite meeting featured speakers covering investments, business administration, legislation, and health care.

Highlights of the event included:

Health Information Technology: Dr. Charles Kennedy from the Government Accountability Office Health Information Policy Committee spoke about the development of a nationwide health information technology infrastructure.
Member Services and the Call Center: John Popowich, Division Manager of LACERA's Member Services, talked about the wide range of services offered by the Call Center, and explained the policies that ensure all members receive the same service regardless of the method by which they interact with LACERA.
Preserving Microfiche Records: Robert Whitten, LACERA's Manager of Administrative Services, described LACERA's efforts to preserve member records archived on microfiche.
Retirement Goals: Assistant Executive Officers Robert Hill and Janice Golden outlined LACERA's goals for next fiscal year.
Geopolitical Issues: H. Woody Brock, Ph. D., President of Strategic Economic Decisions, shared his insight on the global economy and its far-reaching impact.
LACERA Technology: Kathy Delino discussed how LACERA stays current with the latest technology. The Systems Division advances our web and internal computer systems' capabilities, offering additional service options to our members.
Legislative Update: Lobbyist Joe Ackler gave an update on the California Legislation scene.
Emerging Markets: Shaw Wagner, of Capital International Inc., explored how emerging markets typically perform during an economic crisis, and trends to watch in the near future.
Challenging the Actuarial Status Quo: Karen Steffen, Milliman, and Kent Smetters, The Wharton School, presented information about actuarial procedures and different perspectives to consider.

SACRS FALL 2009 CONFERENCE

Once again LACERA contributed to the overall success of the State Association of County Retirement Systems (SACRS) Fall Conference, which was held in Costa Mesa on November 10-13, 2009.

SACRS is a government-sponsored association whose membership includes representatives from the 20 county retirement systems in California which are governed by the County Employees Retirement Law of 1937 and are reciprocal with each other. The SACRS organization meets twice a year with representatives from all 20 counties including Trustees, Administrators, Treasurers and staff. Participants come from all areas of California to discuss a broad spectrum of issues and topics that impact retirement systems.

The SACRS FALL 2009 CONFERENCE included many informative sessions, such as "Disability: Rebutting the Presumptions," "The Obama Health Plan Proposal: A Modern Day Pandora's Box," and "Where Is the Economy Headed?"

The mission for SACRS is "Educating, Legislating, and Sharing Information." In keeping with this, LACERA staff members lent their experience to the conference by participating in various speaking capacities. Participants from LACERA included:

William R. Pryor (Speaker) - Opening Ceremonies
Johanna Fontenot (Moderator) – Breakout Session on Counsel
Richard Schlosser (Moderator) – Breakout Session on "Disability: Effective Applicant Interviews"
John McClelland (Speaker) - "Opportunities and Outlook for Real Estate-A Current Perspective and Outlook for Real Estate from Industry Experts"

Other LACERA Board Members serving on SACRS committees are:

Gregg Rademacher - Bylaws Committee Chair, Legislative Committee
Yves Chery – Bylaws Committee, Legislative Committee, Nominating Committee

LACERA REMEMBERS SIMON FRUMKIN

Simon 'Si' frumkin We honor the memory of Simon "Si" Frumkin, who was an esteemed member of LACERA's Board of Retirement (BOR) from 2003 to his death in May. The insight, humanity, and unique life experience he contributed to the BOR will be remembered for many years to come.

Mr. Frumkin was born in Lithuania in 1930 and endured imprisonment at Dachau concentration camp. As a Holocaust survivor, he devoted his life to ensuring history would not repeat itself.

He moved to the U.S. in 1949 and graduated from New York University in 1953. Shortly thereafter, he settled in Los Angeles, eventually becoming the owner of Universal Drapery Fabrics and earning a master's degree in history from California State University, Northridge.

Recognized internationally as a voice for human rights, Mr. Frumkin founded the Southern California Council for Soviet Jews, was involved in the opening of Holocaust exhibits in China and Japan, and was active in the "Meet a Survivor" program at the L.A. Museum of Tolerance.

Mr. Frumkin was a past member of the L.A. City Human Relations Commission and was active in the Simon Weisenthal Center Outreach Program. He often spoke to students about the Holocaust and taught college-level courses on Eastern Europe, Jewish History, and the Middle East.

As a member of the BOR, he was committed to ensuring fairness and justice for County retirees.
(6-22-09)

LACERA WILL CONTINUE TO PAY YOUR BENEFITS AS PROMISED

Your retirement benefits are a vested right. LACERA will continue to pay your benefits as promised, in spite of the current economic climate.

Given the current challenges of the U.S. economy and the investment market, LACERA members are concerned about the impact of the market on the financial health of our retirement fund. Despite market volatility, LACERA remains a financially strong organization with $38.7 billion in assets.* As of the fund's last actuarial valuation on June 30, 2007, LACERA was 94 percent funded.

THE FUND IS POSITIONED TO WITHSTAND THE CURRENT FINANCIAL DOWNTURN
As a long-term investor, we have structured our investment portfolio to experience bull markets where we have outstanding returns and withstand bear markets where we have negative returns. For example, during the 2001 dot-com market collapse, we dropped to 82 percent funding. We have since climbed back to 94 percent funding.

LACERA's Board of Investments has always adhered to an Investment Policy that broadly invests (diversifies) the fund's assets to mitigate the risk associated with market volatility. LACERA's Investment staff is carefully monitoring market activities and keeping the Board of Investments apprised of any notable events.

We will continue to fulfill our mission to produce, protect, and provide the promised benefits. (10-29-08)

Additional LACERA Investment Policy and Portfolio Information (10-22-08)

*At fiscal year-end, June 30, 2008.

2/17/10