LACERS FUNDING

The money in LACERS’ fund comes from three sources: Member contributions, contributions from the City of Los Angeles, and earnings from LACERS investments. Our fund is currently valued at over $9 billion (April 2006). Every year, LACERS determines its funded ratio as an exercise to measure our ability to pay the future retirement and health benefits of all LACERS members - retired and active - based on LACERS current assets and a number of assumptions. If LACERS current assets are not sufficient to pay all of the long-term liabilities, the City will contribute money to cover the remaining balance. Assumptions are reviewed annually by LACERS and our contracted certified actuary, The Segal Company, and presented to the Board of Administration. Based on actuarial projections and experience studies, the Board may change the assumptions to reflect the current environment.