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][4] In 1971, LACERA began administering a retiree healthcare benefits program.[1]
Board of Retirement: composed of 12 trustees, responsible for the overall management of the retirement system)
Board of Investments: composed of 10 trustees, 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.[5]
The Board of Retirement's members are appointed as follows:[5]
One member – the Los Angeles County Chief Deputy Treasurer and Tax Collector, who serves as an acting ex officio member, as required by California law
The Board of Retirement meets at 9 a.m. on the first Wednesday of each month.[5]
Board of Investments
The Board of Investments (BOI) establishes LACERA's investment policy and objectives and exercises authority and control over the investment management of the pension and benefit trust.[6]
The Board of Investments’ members are appointed as follows:[6]
One member – the Los Angeles County Chief Deputy Treasurer and Tax Collector, who serves as an ex-officio member, as required by California law
The Board of Investments meets at 9 a.m. on the second Wednesday of each month.[6]
Benefits
Health care benefits
LACERA provides health insurance plans for its retired members. LACERA covers 100% of healthcare premiums (up to the benchmark rate) for Los Angeles County retirees who have at least 25 years of public service.[7] 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.[8]
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:[9]
As of June 30, 2024, LACERA's net assets were worth US$79.2 billion, an increase of $5.4 billion, or 7.2%, from the prior year.[3] The latest actuarial valuation on June 30, 2024, determined that LACERA had a funded ratio of actuarial assets to the actuarial accrued liability of 79.9%, from the prior year.[3] For fiscal year (FY) 2023–24, LACERA's fiscal-year-to-date return on investments was 0.91%; the FY 2022-23 return was 6.40%.
Historically, investment earnings have accounted for about 70% of the money necessary to pay the promised benefits. [1]
Reciprocity
LACERA has reciprocity with the other California public retirement systems, including:[12]
California Public Employees’ Retirement System (CalPERS)
Judges' Retirement System
LA County Metropolitan Transportation Authority Retirement System
Los Angeles City Employees’ Retirement System (LACERS)
19 CERL Counties (county retirement systems established County Employees Retirement Law)
LACERA also recognizes other California public agencies and districts, cities, counties, school districts, superintendents of schools and others that are covered by CalPERS, including the California State Teachers' Retirement System (CalSTRS) and University of California Retirement Plan (UCRP).[12]
Corporate Governance
LACERA is one of eight institutional investors represented by the Shareholder Rights Projects, which worked to present shareholder declassification proposals in S&P 500 annual meetings.[13]:161
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