From City Watch LA:
Mayor Antonio Villaraigosa, by failing to adequately address the unrealistic 8% Investment Rate Assumption for the 40% underfunded Los Angeles City Employees Retirement System, is making another boneheaded decision that reflects the unwillingness of Villaraigosa and the Garcetti-led City Council to make hardnosed, long term rational operational and financial budget balancing decisions for fear of alienating the City’s self-serving, campaign funding union bosses.
And once again, this short sighted, politically motivated decision regarding LACERS will penalize the wallets of the next generation of Angelenos, even if the economy improves.Shortsightedness at City Hall is such an everyday occurrence that our Elected Elite now commonly refer to it as “kicking the can down the road.”
In this particular case, involving LACERS and its $5.9 billion unfunded pension liability, the actuary once again recommended that the Investment Rate Assumption be lowered from 8% to 7.75%, the same rate used by the Fire and Police Pension Plans that is “only” 32% underfunded.