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.

LACERA PARTICIPATES IN STATEWIDE CITY AND COUNTY EVENT

On January 27, 2011, LACERA Senior Staff Counsel Michael Herrera and Johanna Fontenot (right) participated in the California Association of Public Retirement Systems (CALAPRS) Attorneys' Roundtable. Michael moderated the discussion, and Johanna presented "Update re Qui-Tam lawsuits against custodial banks over foreign exchange transactions." CALAPRS, a non-profit corporation, was founded in 1985 as an educational and information exchange association for the public pension systems in California.

EXPERTS OFFER VALUABLE INSIGHT AT ANNUAL OFFSITE CONFERENCE

Being conversant in issues affecting retirement is a priority at LACERA. We believe our members benefit by having educated and informed board members and management. In keeping with our commitment to this education, we hold an offsite educational and fiscal planning conference every January. The latest conference included presentations by LACERA management and experts on legislation, healthcare, investments, ethical conduct, and economics.

Conference highlights included:

• LACERA’s Outreach Strategies: LACERA Member Services Manager, John Popowich, discussed a variety of approaches to augment outreach efforts to members throughout Los Angeles County. He outlined the history of LACERA's outreach strategies, reviewed current member demographics, and then discussed the possibility of implementing mobile and satellite offices. He also discussed neighborhood workshops, extended office hours, and other possibilities to better connect with all LACERA members.
• LACERA Retirement Benefit Strategic Plan: Our executive team — Gregg Rademacher, Robert Hill, and Janice Golden — outlined the association's strategic plan for the next three years and underscored LACERA’s commitment to delivering first-class member service.
• Retiree Healthcare: LACERA Retiree Healthcare Manager, Cassandra Smith, offered a presentation on the strategic plan for retiree healthcare. Also, Medical Director of Quality and Clinical Analysis, Michael Kanter, M.D., of Southern California Permanente Medical Group discussed Kaiser Permanente's current healthcare quality rating and its plan for improving healthcare services for retirees.
• Legislative Update: Lobbyist Joe Ackler discussed recent developments in California politics and their potential impact. (2-2-12)

court orders lacera to release additional retiree data

In September 2011, the Los Angeles Times filed a lawsuit asking the court to require LACERA to release a broader range of retiree data than we released in response to the newspaper's initial request. LACERA opposed this lawsuit; however, on November 15, 2011, the court ruled in favor of the L.A. Times and ordered LACERA to release the additional information sought by the L.A. Times. This information consists of start date, plan type, years of service at retirement, service years purchased, benefit payment options, monthly and annual gross medical benefits, gross monthly benefit including medical benefits, and the formula used to calculate retirement benefits. The court gave LACERA until February 15, 2012 to comply. (In response to a lawsuit brought by two sheriffs’ unions, the court instructed LACERA to exclude information pertaining to two retired deputy sheriffs. The unions had argued the release of data pertaining to Sheriff's Department personnel could jeopardize the safety of some retired deputy sheriffs.)

A letter to LACERA retirees regarding this matter is scheduled to mail on February 1, 2012.

We are also complying with a request for retiree information we recently received from the Bay Area News Group.

Learn more about public access to retiree information and our release of information to the L.A. Times. (1-31-12)

CIVIL GRAND JURY INVESTIGATES PUBLIC PENSIONS, FINDS LACERA IS “WELL RUN”

The Los Angeles County Civil Grand Jury (CGJ) recently conducted an investigation of public pensions in Los Angeles County. At the conclusion of its investigation, the CGJ issued its findings in a report titled Whoa! The State of Public Pensions in Los Angeles County. In addition to finding us to be “well run” and the retirement fund (Fund) in no threat of defaulting, the CGJ praised the County for being proactive over the past 30 years by taking deliberate steps to control and lower pension costs.

The CGJ made seven recommendations regarding Los Angeles County; only one relates to LACERA directly. That recommendation suggests we modify the accounting method used to identify funds in our STAR reserves.* STAR reserves are currently listed on the retirement fund’s financial statements as an asset. The CGJ recommends we show an offsetting liability when the STAR reserves are valued as Fund assets.

Other Recommendations

The other CGJ recommendations, which relate to matters under the authority of the Board of Supervisors, focus on the enactment of policies to curb opportunities for pension spiking and reduce the County’s portion of retiree healthcare.

The report also stated, “It is unlikely that retiree health benefits can be modified for current retirees and employees.”

LACERA CEO Gregg Rademacher discusses the CGJ findings in the September 2011 issues of our PostScript and Spotlight on Retirement newsletters.

About the CGJ

The CGJ acts in a "watchdog" capacity to ensure the County is being governed honestly and efficiently and County monies are being handled appropriately. (8-24-11)

*The Supplemental Targeted Adjustment for Retirees (STAR) is a cost-of-living adjustment program designed to ease the effects of inflation for a retiree whose retirement allowance has lost more than 20 percent of its purchasing power since retirement. It is only awarded when the Board of Retirement determines it appropriate, based on inflation experienced during an affected retiree’s retirement years.