LACERS Active Members September Update

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From the General Manager’s Desk: LACERS Reports Preliminary 1.1% Investment Return for Fiscal Year 2019-20

Fiscal Year 2019-20, as you can imagine, was a year of uncertainties for investments. With the economy stalled due to the COVID-19 pandemic, LACERS ended the fiscal year with a slightly positive return thanks to an investment policy and asset allocation that is designed to withstand volatility and fluctuations in the market through a diversified portfolio that includes U.S. Equity, Non-U.S. Equity, Core Fixed Income, Credit Opportunities, Private Equity, Public Real Assets, Real Estate, and Cash asset classes.

Despite these severe economic and market headwinds, LACERS’ annual rate of return garnered 1.1% net of fees relative to the total fund benchmark of 4.0%. LACERS posted positive returns in the second quarter, which helped to offset the investment losses experienced during the initial phase of the pandemic.  

While some attempt to draw parallels between the recent Covid-19 economic shock and the Great Financial Crisis (GFC), it is important to remember that the underlying causes and ultimate solutions to these issues differ greatly. Solving the problems brought on by the GFC required significant legal and regulatory reforms. Whereas during this pandemic, both Congress and the Federal Reserve are responding with extraordinary measures designed to absorb much of the economic impact from the pandemic.

During this unprecedented time, even the most sophisticated investors are reviewing their portfolios to determine the next steps. The LACERS Board and staff already know their next steps: remain calm and stay the course! The LACERS Board takes a long-term strategic view in establishing a diversified asset allocation policy that ensures the hard-earned retirement benefits will be paid over the decades to come.

For additional information, listen to LACERS Board of Administration meetings, via ZOOM, every second and fourth Tuesday of each month at 10 a.m. Click here for log-in information.

Reminder Regarding the CSIP Abeyance Period

In order to facilitate the initial processing of SIP retirements in a timely fashion, LACERS will not accept or process any non-SIP retirement applications during the three-month SIP period from November 1, 2020, through January 31, 2021, as proscribed by ordinance. This includes any person applying for normal, early or deferred retirement and those eligible to retire with Reciprocity.

Additionally, any non-SIP retirement applications previously submitted that are still pending at the beginning of the SIP period will be held in abeyance and processed after February 1, 2021. If you were planning to retire during this time period but are not planning to participate in the SIP program, you may still apply for retirement provided you:

  • Select a retirement date no later than October 31, 2020;
  • File within 30 to 60 days of your retirement date; and
  • Submit all required retirement application paperwork and documents before October 31, 2020.

Disability Retirements will continue to be processed and are not affected by the SIP period.

Click here to read the full abeyance ordinance.

Now Available: Change of Email Address Form

Ensure you are kept up-do-date with communications from LACERS by providing us with your most current email address. If you do not have an email address on file through a MyLACERS account, you can now fill out and submit the Change of Email Address form, available at lacers.org.

Plan for the Future with the Family Death Benefit Program

Peace of mind is key when planning for the future. Make sure your loved ones are taken care of should anything happen to you by signing up for the Family Death Benefit Plan (FDBP). For just $1.20 per pay period, the program will provide your loved ones with a monthly financial benefit should you pass away before retirement. Learn more about the FDBP by viewing the FDBP Overview video on the LACERS YouTube channel, and access the Election to Participate in FDBP form here.

COVID-19 Resources

As we continue to navigate COVID-19, the Mayor’s office has put together the following information with ways to protect yourself and your loved ones. Click here to access the information, available in a variety of languages.

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