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Transcript of LACERA A Sustainable Retirement Plan -...
Exploring Plan E Conference Committee on Public Employee Pensions
April 13, 2012
LACERA A Sustainable Retirement Plan
Pension Reforms
Plan A 1937
Plan B 1977
Plan C 1978
Plan D 1979
Plan E 1982
Pension Benefit Percentage at Maximum Retirement Age - 30 Years of Service 2
Comparison to CalPERS Plans
LACERA
Plan A : 2%@55
Plan D : 2%@61
Plan E : 2%@65
3
Compensation Replacement
0%
20%
40%
60%
80%
100%
35 40 45
35 Years Service at Age 65 Additional Years
Retire Age 65
2% per year for first 35 years
worked
1% per year worked years 36
through 45
Maximum : 80% of Final
Compensation
3 Year F. A. C.
4
Compensation Replacement
Plan E
Years of County Service Average
Retirement Age
Average Compensation Replacement
Retiree Count
Retiree Count
Percentage
1 to 10 63 11% 163 5%
11 to 24 62 26% 1,292 38%
25 to 34 63 46% 1,026 30%
35 (Governor's Target) 63 51% 114 3%
More than 35 63 60% 828 24% 5
Normal Retirement Age
0
100
200
300
400
500
41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87
Plan E Open Plan Since 1982
Retirement Age Distribution 1999 through 2005
$1 37¢
6
Payroll Count Distribution
$1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000
Plan E 3,664 2,304 1,091 469 211 106 75 25 19 3 4 2 1
0
1,000
2,000
3,000
Plan E
7
Employer Rate – Plan E
0%
3%
6%
9%
12%
15%
1996 2000 2004 2008 2012
Benefit COLA UAAL8
Plan Funding
15%
10%
75%
Employer Employee Investments
9
Long Term Investor
0%
2%
4%
6%
8%
10%
12%
Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11
Rolling 25 Year Portfolio Return
Rolling 25 Year Return Actuarial Target Return
7.5% Actuarial Target
10
Independent Boards
LACERA
Board of
Retirement
4 Appointed by
Board of Supervisors
County Treasurer
1 Elected by
Safety Members
2 Elected by
General Members
1 Elected by
Retired Members
Alternate Elected by
Safety Members
Alternate Elected by
Retired Members
Board of
Investments
1 Elected by
Safety Members
2 Elected by
General Members
1 Elected by
Retired Members
4 Appointed by
Board of Supervisors
County Treasurer
11
LACERA A Sustainable Retirement Plan
Gregg Rademacher
Chief Executive Officer
300 N. Lake Avenue, Suite 820
Pasadena, CA 91101