This information focuses primarily on the financial operations and LACERS investments results, demographic information, and funded status of the plan for the fiscal year ended June 30, 2009. LACERS total investment portfolio returned -19.6%, which underperformed the actuarial assumed rate of 8%. The portfolio had a market value of $8.1 billion on June 30, 2009, a decrease of approximately $2.2 billion from the prior fiscal year. A copy of the complete June 30, 2009 CAFR is available on our website at www.LACERS.org.

FUNDED RATIO
The funding objective for LACERS is to meet the long-term benefit promises through contributions that remain level as a percentage of
member payroll. LACERS funding status is measured by the ratio of its actuarial value of assets to its actuarial accrued liabilities. The
actuarial value of assets is determined by an asset smoothing method that spreads investment gains and losses over a five-year period.
As of June 30, 2009, the actuarial value of assets and the actuarial accrued liabilities of LACERS were $10,920,244,000 and
$14,100,161,000, respectively, for both the Retirement and Postemployment Healthcare Plans. The funded ratio for the Retirement Plan
based on the actuarial value of assets was 79.5%. The funded ratio for the Postemployment Healthcare Plan based on the actuarial
value of assets was 65.2% (LACERS has been pre-funding retiree health benefits since 1987).