A Message from

Robert Aguallo, Jr. General Manager

As we look forward to the year ahead, I’d like to share with you a few key achievements in 2006 that LACERS staff has accomplished on behalf of our Members.

The 2006 Open Enrollment Fair was a great success and attendance was at an all-time high. Members enjoyed the seminar presentations, exhibitors, and our guest speakers – Board Commissioner Shelley I. Smith and Dr. Gary Small from the UCLA Center of Aging. In addition, Members had theopportunity to speak with their health plan representatives and LACERS staff in order to help them decide which health plans were best for them.

As you know, we completed major negotiations with our health carriers and the reality is, healthcare costs are going up. As a result, LACERS expected medical plan premiums to increase in 2007. However, based on the commitment of the Board and LACERS staff, we were able to contain the impact of these rising costs on our Members. LACERS will assume most of the burden for these additional costs in 2007 by increasing the maximum monthly medical subsidy for 2007 from $928 to $983.

Still, we all share the responsibility for taking steps to keep these rising healthcare costs manageable in the years to come. In this issue, you’ll find tips on how to keep your costs down. By taking advantage of wellness programs offered by our health carriers – having regular physical exams and health screenings – and making healthy lifestyle choices, we can help to minimize our healthcare costs and lengthen the quality of our retirement years, as well.