Los Angeles County Employees Retirement Association
| Agency overview | |
|---|---|
| Formed | January 1, 1938[1] |
| Headquarters | 300 N. Lake Ave. Pasadena, CA |
| Agency executives |
|
| Website | lacera |
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 for the County of Los Angeles, Los Angeles County Office of Education, and South Coast Air Quality Management District). In 2024, it managed defined benefit pension plans for 198,647 civil servants (members), including 56,752 retirees and 10,0611 survivors, making it the largest county retirement system in the United States.[3] In 2018, LACERA's net assets were worth US$79.8 billion.[4]
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][4] In 1971, LACERA began administering a retiree healthcare benefits program.[1]
Management
LACERA is governed by two Boards:[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]
- Four members – appointed by the Los Angeles County Board of Supervisors
- Two members – elected by general members
- One member and one alternate – elected by safety members
- One member and one alternate – elected by retired members
- One member – the Los Angeles County Treasurer and Tax Collector, who serves as an ex officio member, as required by California law
- 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]
- 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 member, as required by California law
- 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]
| 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[10] | - | 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[11] | - | Established in response to PEPRA |
Finances
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
See also
References
- ^ a b c d e f "Get to Know LACERA" (PDF). LACERA. Retrieved July 31, 2023.
- ^ "Organizational Chart". LACERA. Retrieved July 31, 2025.
- ^ a b c "2024 Annual Report" (PDF). LACERA. 2024. Retrieved 31 July 2025.
- ^ a b "2024 Annual Report - Introduction Section" (PDF). LACERA. 2024. Retrieved 31 July 2025.
- ^ a b c "Board of Retirement". LACERA. Retrieved 31 July 2025.
- ^ a b c "Board of Investments". LACERA. Retrieved 31 July 2025.
- ^ Rosenblatt, Susannah (17 October 2007). "County starts fund for retirees". Los Angeles Times. Retrieved 16 September 2013.
- ^ "Paying for Coverage and Applying the Retiree Healthcare Subsidy". LACERA. Retrieved 31 July 2025.
- ^ "Active Members". LACERA. Retrieved 31 July 2025.
- ^ "Welcome Plan G General Members". LACERA. Retrieved 31 July 2025.
- ^ "Welcome Plan C Safety Members". LACERA. Retrieved 31 July 2025.
- ^ a b "Reciprocal Systems". LACERA. Retrieved 31 July 2025.
- ^ Hirst, Scott; Bebchuk, Lucian; Rhee, June (2013-04-01). "Towards the Declassification of S&P 500 Boards". Harvard Business Law Review. 3 (1): 157.