Will mandatory furloughs affect my retirement benefits?
No. Taking furlough days will not impact your retirement benefits because your benefit is determined by your Compensation Earnable, which is the amount your classification earns for 80 hours in a pay period.

If I am earning less money because of the furlough days, why won’t my retirement benefits be impacted?
Your retirement allowance is based on the following formula: Service Credit x Final Compensation x 0.0216.

Service Credit – This is determined by the amount of time you have worked as a member of LACERS and made contributions to your retirement account (LAAC 4.1001). As long as you work enough hours to cover the costs of your full retirement contribution and any other payroll deductions (this very likely will not be an issue with two furlough days per month), you will continue to earn the same amount of Service Credit with or without furlough days.

Final Compensation – This is the average of the last 12 months (or any other 12 consecutive month period you designate) of Compensation Earnable in your  classification and will not be affected by furlough days. “Compensation Earnable” is the amount your classification earns for full-time service (LAAC Sections 4.1001). Taking furlough days will reduce the amount of money you earn, but it will not reduce your Compensation Earnable.

Because furlough days will not impact your Service Credit or your Final Compensation, they will have no impact on your retirement allowance.

While I understand mandatory furlough days will not affect my retirement benefits, it will reduce my salary. Can I borrow from my retirement account?
No. The Los Angeles Administrative Code does not allow members to borrow from their LACERS accounts.

Do I have to take furlough days?
Please check with your Department Personnel Director to determine if you are required to take any furlough days.

Can I still work overtime if I take a furlough day?
The City Administrative Officer has specific guidelines for overtime and furlough exemptions. Visit their furlough memorandum at http://caodocs.ci.la.ca.us/ERBulletins/ERBulletin-2009-06-08.pdf.

Does LACERS have any services that will help me cope with the salary reduction of mandatory furlough days?
LACERS offers a financial planning seminar that will assist you with debt management, budgeting for the present, and preparing for any unforeseen financial obstacles in the future. Please visit www.LACERS.org and sign up today. If you are facing other specific problems and feel you need assistance, the City's Employee Assistance Program (EAP) provides help and counseling for a variety of issues. The EAP can be contacted 24 hours a day, 7 days a week by their toll-free line at (800) 213-5813. Their website is also available for information at: http://www.members.mhn.com Company Code: “cityoflosangeles".