Active Employees

2020 Stock Market Volatility

How does the condition of the stock market affect my retirement benefit?

Although the benefits are paid based on Member contributions, the City contributions, and LACERS’ investments returns, your retirement benefit is calculated based on a set formula: Retirement Factor X Service Credit X Final Average Compensation.  Fluctuations in the stock market do not impact the amount of monthly benefits you receive.

Should I wait to retire?

The decision to retire depends on each Member’s situation and readiness.  Please contact us on our main line at (800) 779-8328 to inquire about retirement eligibility or assistance running a retirement estimate.

How does the condition of the stock market affect my Larger Annuity account?

If you elected the five-year Treasury Note option, your return is based on the performance of the five-year Treasury Note.  If you elected LACERS publicly-traded asset option, your return is based on LACERS publicly traded asset performance, which may be impacted by the market fluctuations.

What happens if LACERS runs out of money?

It would be nearly impossible for LACERS to run out of money since funding of the plan comes from 3 sources: required annual contributions from the City, required bi-weekly contributions from employees, and investment returns.  Funding levels of the plan on routinely monitored to ensure LACERS ability to provide retirement benefits over the long term.

Historically, what happened with LACERS investments when the stock market “crashed”?

The value of LACERS portfolio also declined, but less so than the stock market.  This is due to the portfolio diversification across different types of investments such as stocks, bonds, and real estate.  In other words, LACERS does not put all of its eggs in one basket.  Diversification helps ensure that sufficient assets are available to provide retirement benefits over the long term.

Address Changes

How do I update my mailing address with LACERS?

LACERS receives your mailing address through the City’s payroll system. If you’ve updated your address through your department’s Personnel Section, it will automatically be updated in LACERS’ system.

If you are no longer employed by the City of Los Angeles, but still have funds in your LACERS account, submit LACERS’ Change of Address request, available here.

Beneficiaries

How do I designate my Beneficiary?

Beneficiary information on file with Employee Benefits is not automatically shared with LACERS. To update your beneficiary, submit a designation of beneficiary form. Download the form and read additional important information about designating beneficiaries on the Designating Beneficiaries page.

How can I view my Beneficiaries on file?

Click here to log into your MyLACERS account to view your beneficiaries on file.

Buybacks/Service Credit Purchases

How can I purchase time to increase my retirement benefit?

If you are interesting in purchasing time with LACERS, your process will vary depending on the type of time you have available to purchase. 

Visit Supplementing Your Retirement for more information.

Divorce/Dissolution of Marriage

Do I need to submit my divorce decree to LACERS?

LACERS will require a copy of your final judgement. Please visit the page on divorce for more information.

Domestic Partnership

Employee Benefits has my Domestic Partnership information. Do I need to submit information to LACERS also?

Filing a Declaration of Domestic Partnership with Personnel Department, Employee Benefits section is not sufficient to cover the administration of benefits with LACERS. Please visit the Domestic Partnership page for more details.

Early Retirement Incentive Program (ERIP)

What is the total number of ERIP participants?

There are 2,400 ERIP participants.

What is the ERIP Cost Obligation?

The ERIP Cost Obligation is the full cost of ERIP as defined in the Los Angeles Administrative Code section 4.1033 (“ERIP Ordinance”).  The ERIP Ordinance states that the ERIP Cost Obligation is the obligation of LACERS Members, and that the City and Unions envisioned ERIP to be cost-neutral to the City.

How was the ERIP Cost Obligation determined?

The preliminary ERIP Cost Obligation was determined by an enrollment actuary engaged by the City, pursuant to requirements of the Los Angeles City Charter section 1168 (b), which specifies that the City Council must be advised in writing of the cost of benefit increases prior to adoption of an ordinance to change the LACERS benefit(s).

The City’s Consulting Actuary provided cost estimates of ERIP based on various scenarios projecting “take” rates of eligible employees.  Preliminary projected costs ranged from $250 million to retire 2,229 employees, up to $354 million to retire 2,763.  The ERIP Ordinance adopted a preliminary cost of $271M to retire 2,400 employees.

However, based on the LACERS actuarial valuation report of June 30, 2009 (revised April 22, 2010), the unfunded actuarial accrued liability increased by $355 million when factoring in nearly all ERIP retirees (2,393 of the 2,400 ERIP retirees were finalized at the time of the report).

What is the time period by which the ERIP Cost Obligation should be paid?

According to the ERIP Ordinance, the employee contributions toward the ERIP Cost Obligation begin on July 1, 2011 and end on June 30, 2026 (a 15-year period), or until the ERIP Cost Obligation is fully paid, whichever comes first.

How much money to date, has been paid by LACERS’ Active and Retired Members toward paying off the ERIP Cost Obligation?

As of March 31, 2020, over $202.6 million has been paid toward the $355 million ERIP Cost Obligation.  The pace of contributions toward ERIP are expected to decline slightly as the number of active Tier 1 Members retire.  New LACERS Members joining the City, currently enter under Tier 3 Membership and do not contribute to ERIP.

Furlough Information: Full-Time (72+ hour) Employees

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 per Los Angeles Administrative Code (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 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.

Do I still have to make my full retirement contribution if I am taking mandatory furlough days? 
Yes. Your retirement contribution is calculated based on your  compensation earnable for your specific classification (LAAC 4.1003).  Your compensation earnable is the full salary, wage or compensation established for any position or office in the City service (LAAC 4.1001).  Your retirement contribution and service credit will remain the same whether your work 72 hours or 80 hours in a pay period

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 provide LACERS the authority to 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.

Does LACERS have any services that will help me cope with the salary reduction of mandatory furlough days?
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: www.liveandworkwell.com, company code: CityofLA

Medicare

I am already over age 65 but I am still working for the City. Do I need to apply for Medicare? 

If you are still working at age 65 and are covered by the City’s (“Active”) medical plan, you can defer enrollment in Medicare until you retire. During your retirement process, LACERS Staff will provide you with additional documentation to take to Social Security to waive any late enrollment penalties.

For additional information on Medicare after retirement, please visit the Retirees Medicare Information page.

Retirement – Managed Retirement Application (MRA) Process 

When does the Managed Retirement Application (MRA) go into effect?

The Managed Retirement Application is now in effect and applies to any retirement application received on or after May 1, 2020.

Managed Service Retirement Application

How does the MRA differ from the regular retirement application?

The MRA differs in that it has two advisory notifications. The first explains that your requested retirement effective date is not guaranteed.  While every effort will be made to honor your requested date, the changing nature of the ongoing public health emergency impacts LACERS’ operational/processing capacity.

The secondary advisory relates to the use of an estimated retirement allowance. LACERS, wherever possible, is implementing measures to aid in expediting the retirement process. The use of estimated retirement allowances will enable staff to set up members for retirement but will require an audit review later, which may result in a future adjustment to your retirement allowance.

How do I file the Managed Retirement Application?

You may submit your MRA by email to lacers.services@lacers.org, or fax your application to (213) 473-7218.

What documentation should I provide along with my MRA?

The required documents list can be found on here.

Does the normal 30 to 60 days filing period still apply?

Yes, however, your LACERS’ counselor will notify you as to your official retirement effective date; which may or may not be the date you requested. LACERS will notify you of your official date.

What will be my employment status after my requested retirement effective date passes?

If you are notified by LACERS that your requested retirement effective date has been confirmed, then your status will be retired. However, if LACERS has not confirmed your requested retirement date or provided you with an official alternative date, your employment status remains unchanged if you are an active employee.You should continue to follow your department’s reporting requirements and guidelines until you and your department are notified of your official retirement date.

What if I want to amend or withdraw my managed retirement application? Do the normal rules apply?

You will be able to request a new date by withdrawing your application and reapplying with a new application and new requested date.

What if I have questions about applying for retirement or the retirement application?

You can direct your questions to lacers.services@lacers.org. A counselor will respond via email or by phone. Please allow for a minimum of three days for a response.

Can I still request an estimate for my retirement benefit?

Yes, you have two options:

Log into your MyLACERS account and run an estimate from there. If you do not have a MyLACERS account you can contact lacers.services@lacers.org to request a PIN number. 

You can also request an estimate through lacers.services@lacers.org

Will I be assigned a counselor to assist me with the retirement process?

Yes, once your retirement effective date has been determined, your retirement counselor will contact you by email and/or phone.

Additional counseling aides will also be available on the LACERS website, LACERS.org.

What if I already have plans that I cannot change, or have extenuating circumstances and need to retire on my requested date?

LACERS must apply the Managed Retirement Policy to everyone. However, you may attach a brief statement explaining your situation. LACERS will review your circumstance but cannot guarantee accommodating your request.

When I retire, am I automatically enrolled into a retiree health plan?

Retiree health plans are separate from the City employee health plans and enrollment is administered exclusively by LACERS.  If you wish to receive health coverage through LACERS as a retiree, you will need to enroll in a LACERS medical and/or dental plan when you retire. A LACERS Health Advocate will contact you by phone or via email once your retirement effective date has been scheduled.

During the retirement process, when do I need to submit my LACERS health plan enrollment forms?

Enrollment in the retiree medical and dental plans is separate from the service retirement process and can be started only after your retirement documentation has been submitted.  Separate medical/dental enrollment forms and supporting documentation are required. 

NOTE:  Failure to provide LACERS with completed health enrollment forms or required supporting documentation can result in delays in the commencement of retiree medical/dental plans and in the retiree being charged for premiums LACERS pays on their behalf for requested coverage.

When does my retiree medical/dental plan go into effect?

Retiree medical and dental coverage goes into effect the first of the month following your retirement effective date.  Your active City employee medical/dental coverage extends to the end of the month of your retirement.

What happens to my medical/dental benefits if LACERS pushes back my proposed retirement date?

City employees whose requested retirement date is pushed back by LACERS due to workload limitations will remain on their active City employee medical/dental plans until the end of the month of their actual retirement effective date. 

NOTE:  Medical/dental enrollment forms are valid for a maximum of 60 days; extensions beyond 60 days of the signature date on the form will result in the need for the retiree to submit new enrollment forms.

If I do not enroll in a LACERS health plan at the time of retirement, will I be able to enroll later?

LACERS retirees have the opportunity to enroll in a LACERS medical and/or dental plan every year during Open Enrollment, which usually runs October 15 – November 15, with coverage taking effect January 1 of the following year. 

Also, if you experience a qualifying event outside of Open Enrollment, you will be able to enroll in a LACERS health plan.  See the LACERS Health Benefits Guide for more information.

Do I need to enroll in Medicare in order to participate in a LACERS medical plan?

Retirees and/or their dependents who are eligible for Medicare (soon-to-be turning 65, or 65 and over) are required to enroll in and maintain Medicare in order to participate in a retiree medical plan.  Medicare Part B (e.g., doctor visits) is required for all; Medicare Part A (hospitalization) is required only if it is free to the retiree.  LACERS requires proof of Medicare enrollment (copy of Medicare card). 

Failure to enroll in/maintain Medicare coverage may result in the termination of the medical plan and the medical subsidy and the retiree being held responsible for medical premiums LACERS has paid on their/their dependent’s behalf.

Seminars

How do I register for a Seminar?

Visit YouTube to watch our Tier 1 Retirement Seminars.

Time (Sick, Vacation, etc.)

What happens to my SK/VC when I retire? Does LACERS pay me out?

LACERS is not involved with the disbursement of these benefits.

Sick, Vacation, or Holiday time payouts after retirement are paid from the Controller’s Office. Questions regarding these benefits should be directed to your department personnel.

Retirees

2020 Stock Market Volatility

How does the condition of the stock market affect my retirement benefit?

Although the benefits are paid based on Member contributions, the City contributions, and LACERS’ investments returns, your retirement benefit is calculated based on a set formula: Retirement Factor X Service Credit X Final Average Compensation.  Fluctuations in the stock market do not impact the amount of monthly benefits you receive.

How does the condition of the stock market affect my Larger Annuity account?

Fluctuations in the public investment markets do not impact the payout amount of Larger Annuity monthly benefits you receive.

What happens if LACERS runs out of money?

It would be nearly impossible for LACERS to run out of money since funding of the plan comes from 3 sources: required annual contributions from the City, required bi-weekly contributions from employees, and investment returns.  Funding levels of the plan on routinely monitored to ensure LACERS ability to provide retirement benefits over the long term.

Historically, what happened with LACERS investments when the stock market “crashed”?

The value of LACERS portfolio also declined, but less so than the stock market.  This is due to the portfolio diversification across different types of investments such as stocks, bonds, and real estate.  In other words, LACERS does not put all of its eggs in one basket.  Diversification helps ensure that sufficient assets are available to provide retirement benefits over the long term.

Address Change

How do I change my address with LACERS? 
Visit Change of Residence for more information.

Award Letter/Pension Verification

I am applying for a loan/housing and the company is requesting verification of my pension or retirement account. What should I do?

Please visit the Benefit Verification Request page for more information about requesting an Award Letter of your benefit.

Direct Deposit

How do I update my Direct Deposit account information?

Please visit Your Benefit Payment page for the Direct Deposit Authorization form, and for more information.

Early Retirement Incentive Program (ERIP)

What is the total number of ERIP participants?

There are 2,400 ERIP participants.

What is the ERIP Cost Obligation?

The ERIP Cost Obligation is the full cost of ERIP as defined in the Los Angeles Administrative Code section 4.1033 (“ERIP Ordinance”).  The ERIP Ordinance states that the ERIP Cost Obligation is the obligation of LACERS Members, and that the City and Unions envisioned ERIP to be cost-neutral to the City.

How was the ERIP Cost Obligation determined?

The preliminary ERIP Cost Obligation was determined by an enrollment actuary engaged by the City, pursuant to requirements of the Los Angeles City Charter section 1168 (b), which specifies that the City Council must be advised in writing of the cost of benefit increases prior to adoption of an ordinance to change the LACERS benefit(s).

The City’s Consulting Actuary provided cost estimates of ERIP based on various scenarios projecting “take” rates of eligible employees.  Preliminary projected costs ranged from $250 million to retire 2,229 employees, up to $354 million to retire 2,763.  The ERIP Ordinance adopted a preliminary cost of $271M to retire 2,400 employees.

However, based on the LACERS actuarial valuation report of June 30, 2009 (revised April 22, 2010), the unfunded actuarial accrued liability increased by $355 million when factoring in nearly all ERIP retirees (2,393 of the 2,400 ERIP retirees were finalized at the time of the report).

What is the time period by which the ERIP Cost Obligation should be paid?

According to the ERIP Ordinance, the employee contributions toward the ERIP Cost Obligation begin on July 1, 2011 and end on June 30, 2026 (a 15-year period), or until the ERIP Cost Obligation is fully paid, whichever comes first.

How much money to date, has been paid by LACERS’ Active and Retired Members toward paying off the ERIP Cost Obligation?

As of March 31, 2020, over $202.6 million has been paid toward the $355 million ERIP Cost Obligation.  The pace of contributions toward ERIP are expected to decline slightly as the number of active Tier 1 Members retire.  New LACERS Members joining the City, currently enter under Tier 3 Membership and do not contribute to ERIP.

Health Plan Changes (Medical and Dental)

When can I make changes to my Medical or Dental plan?

Please visit Health Enrollment page for information about Open Enrollment, and other qualifying events where you may 

ID Cards (Medical and Dental)

I haven’t received my new Medical/Dental ID card. Who do I contact?

ID Cards are issued by the insurance carrier. Please refer to the last page/back cover of the Health Benefits Guide for each carrier’s contact phone number.

The Health Benefits Guide is located on this page.

Medicare

I will be turning 65. What do I need to do?

Members and dependents who turn 65 will need to contact the Social Security Administration to enroll in Medicare, then fill out and submit the appropriate Senior Plan Enrollment form and a copy of the Medicare card. Please visit the Retirees Medicare Information page for additional details.

Taxes

Do I still receive a W-2 Tax form after retirement?

LACERS Members receive a 1099-R for their retirement payments received for the year.

I did not receive my Tax form for the year. How can I obtain a copy?

Login to your MyLACERS Account to view and print a copy of your 1099-R tax forms, or contact LACERS Member Service Center at (800) 779-8328 to request one mailed to your address on file.

How do I change my Tax Withholding? 

Visit this page for more information on changing your tax withholding.

Do I have to pay taxes on my retirement allowance?

Your retirement income is taxable. LACERS Members have contributed to the plan on a pre-tax basis since 1986. Any contributions prior to 1986 were taxed, so any portion of your allowance that is based on pre-1986 contributions will not be subject to taxes.

MyLACERS

How do I create my MyLACERS Account?

MyLACERS enrollment requires that a PIN be sent to the Member’s mailing address on file in order to create the account. You can request a new PIN at the following link https://mylacers.lacers.org/RequestPIN.aspx.

The PIN letter will include step-by-step instructions on creating your account, and should be received in 3-5 business days. Once you receive your PIN, for further assistance with accessing your MyLACERS Account, please contact LACERS Member Service Center at (800) 779-8328.

How can I reset my MyLACERS password or challenge questions?

For assistance with accessing your MyLACERS Account, please contact LACERS Member Service Center at (800) 779-8328. Once your identity is verified, our staff will be able to assist a password reset, or security challenge questions reset.

I received an email about an Unrecognized Device accessing my Account. What do I do?

Any time you access your MyLACERS Account from a new device or location, you will be prompted to enter your Challenge Questions to access the account. This will also trigger an email to notify you that your account has been logged in using a new device.

If you do not recall accessing the account on the date and time you received the email, you may wish to reset your password to secure your account, otherwise you may disregard the email.

Two-Factor Authentication

What is two-factor authentication?

Two-factor authentication is when a user is required to provide a second means of proving they are who they claim to be.  The first authentication is the password used to login with a username.  The second authentication, such as an email or SMS message code, provides an additional layer of security to the account.