HomeMy WebLinkAboutLos Angeles City Employees' Retirement System - Public Financial Reportfor the fiscal year ended June 30, 2021
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2021 POPULAR ANNUAL FINANCIAL REPORT
Our Popular Annual Financial Report is a summary of the Annual Comprehensive
Financial Report for the Employees’ Retirement System of the City of Los Angeles
in California.
Available online at www.lacers.org/reports-and-statistics
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Message from the General Manager
Our commitment to our Members
About Our Membership
Working to surpass Member expectations
Fiduciary Net Position
Advancing our position during a global pandemic
Assets and Liabilities
What the System owns and what it owes
Funded Status
The ratio of System assets to liabilities
Investment Portfolio Summary
Ending on a record high
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TABLE of CONTENTS
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NEIL M. GUGLIELMO
General Manager OUR MISSION
To protect and grow our trust fund and to ensure the
sustainable delivery of ethical, reliable, and efficient
retirement services to our Members.
NEIL M. GUGLIELMO
General Manager
SINCE OUR FOUNDING....
In 1937, LACERS was established as a retirement trust fund to provide
qualifying employees of the City of Los Angeles, a defined benefit
retirement plan inclusive of service retirements, disability retirements,
and survivor benefits. Today, approximately 25,200 Active Members
and 22,000 Retired Members and beneficiaries count on LACERS to
provide a lifetime of retirement benefits.
Since the days of our founding, the world has changed dramatically
and we right along with it, but what has not changed is our
commitment to our Members in providing best in class retirement
and health benefits services for all who carry the distinction of being
a civilian employee for the City of Los Angeles.
As the world evolves, LACERS will continue to respond by finding
new and innovative ways to improve our operations, while ensuring
the best experience for our Members.
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LACERS is committed to providing the best
experience for our Members by modernizing
and simplifying how they can initiate their
retirement and manage their benefits. From
the launch of our web-based Retirement
Application Portal to the implementation of
a cutting edge customer service center, we
are now able to reach our Members faster,
in multiple languages, and through multiple
channels.
As the world evolves, so do the expectations
of our Members. And at LACERS, there is no
greater priority than meeting that
expectation.
WORKING TO SURPASS
MEMBER EXPECTATION$4,304
AVERAGE MONTHLY PENSION
change from 2012: +31.4%
56,835
TOTAL MEMBERSHIP
change from 2012: +18.5%
$259.3
MILLION IN MEMBER CONTRIBUTIONS
change from 2012: +45.5%
60.7
AVERAGE AGE AT RETIREMENT
change from 2012: +1.0%
71.5
AVERAGE AGE OF RETIREE
change from 2012: +0.4%
MEMBER BREAKDOWN
8,492
16,684
9,647
22,012
$22,805,339,941
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FIDUCIARY NET POSITIONADVANCING OUR POSITION DURING A
GLOBAL PANDEMIC
From the outset of the COVID-19, LACERS applied its steady hand to ensure the
System was appropriately buffered from any economic volatility brought on by the
pandemic. The result was ending net positive from the prior year.
Going into the second year of the pandemic, the long view philosophy, along with
a variety of strategic initiatives at play in LACERS has helped us reach a new high for
the System.
Learn about some of the actions the Board
took here.
Allocation
The total Fiduciary Net Position is allocated
between the Retirement Plan and the
Postemployment Health Care Plan.
83%
RETIREMENT
17%
HEALTH
NET INCREASE WITHIN THE YEAR
$4,942,015,575
ADDITIONS and
DEDUCTIONS
BEGINNING NET POSITION
2021 2020 % Change
City Contributions
Member Contributions
Insurance Premium & Reserve
ADDITIONS
Net Investment Income
DEDUCTIONS
Benefit Payments
Contribution Refunds
Administrative Expenses
ENDING NET POSITION
17,863,324 17,707,910 0.9%
658,408 665,358 (1.0%)
259,285 263,936 (1.8%)
11,843 12,501 (5.3%)
5,288,787 365,492 1,347%
1,228,276 1,112,911 10.4%
17,584 12,332 42.6%
31,084 27,422 13.4%
22,805,340 17,863,324 27.7%
(Dollars in Thousands)
Other Income 637 792 (19.6%)
$$
TOTAL ADDITIONS 1,308,079 375.4%6,218,960
TOTAL DEDUCTIONS 1,152,665 10.8%1,276,944
$
$NET INCREASE WITHIN YEAR 155,414 3,079.9%4,942,016
$$22,805,339,941 $
$
$$
$
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FUNDED STATUS
WHAT IS THE COMBINED FUNDED STATUS OF THE
SYSTEM?
Funded ratio is the proportion or share of System’s promised benefits that can be
paid with current available assets. It is calculated by dividing the value of assets in
a pension fund by the value of promised lifetime benefits.
84.7%
COMBINED SYSTEM
FUNDED STATUS
2021 2020 % Change
Cash, Short-term Investments,
and Receivables
Investments, at Fair Value
Capital Assets, Net of
Depreciation
ASSETS
LIABILITIES
Securities Lending Collateral
and Other Payables
FIDUCIARY NET POSITION
1,306,219 818,311 59.6%
22,235,243 17,530,909 26.8%
42,869 42,359 1.2%
23,584,331 18,391,579 28.2%
778,991 528,255 47.5%
22,805,340 17,863,324 27.7%
ASSETS and LIABILITIES
2021
Retirement Plan
2021
Health Plan
2021
Total
Cash, Short-term Investments,
and Receivables
Investments, at Fair Value
Capital Assets, Net of
Depreciation
ASSETS
TOTAL ASSETS
LIABILITIES
Securities Lending Collateral
and Other Payables
FIDUCIARY NET POSITION
1,089,617 216,602 1,306,219
18,548,128 3,687,115 22,235,243
35,760 7,109 42,869
19,673,505 3,910,826 23,584,331
649,817 129,174 778,991
19,023,688 3,781,652 22,805,340
TOTAL ASSETS
2021 RETIREMENT AND
HEALTH PLANS
2021 vs 2020
ASSETS AND LIABILITIES
About the Retirement Plan
LACERS administers a defined benefit pension plan that provides for service and disability
retirement benefits, as well as death benefits.
Plan Members have a vested right to their own contributions and accumulated interest
posted to their accounts.
About the Health Plan
LACERS administers, and provides single-employer postemployment healthcare benefits to
eligible retirees and their eligible spouses/domestic partners who participate in the
Retirement Plan regardless of their membership tiers.
These benefits consist of subsidies which may also apply to the coverage of other eligible
dependent(s).
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(Dollars in Thousands)
81.3%RETIREMENT PLAN FUNDED STATUS
107.4%HEALTH PLAN FUNDED STATUS
$
$
$
$
The Retirement System covers all eligible civilian and certain segments of sworn employees
of the City who are not covered by the City's other Retirement Systems.
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INVESTMENT PORTFOLIO VALUE
HOW DID OUR INVESTMENT PORTFOLIO DO?
The total portfolio outperformed its policy benchmark by 190 basis points (gross of fees) for the
fiscal year, mainly attributed to the relative outperformance of every asset class, with the exception
of credit opportunities, which underperformed its benchmark by 64 basis points.
INVESTMENT PORTFOLIO
SUMMARY
The 2021 fiscal year was a highly favorable period for the LACERS
investment portfolio, with the global economy and financial markets
rebounding sharply from the economic distress caused by the
COVID-19 pandemic. For the one-year period ending June 30, 2021,
the LACERS investment portfolio returned 29.29% (gross of fees),
representing the strongest returns for the portfolio in more than 30
years.
The strong returns and global economic recovery of the 2021 fiscal
year are remarkable. However, it is also important to acknowledge
the many risks facing the global economy. As a long term investor,
LACERS moves forward with a carefully constructed, highly
diversified portfolio designed to weather all market conditions.
Read the Investment Portfolio details here.
RODNEY JUNE
Chief Investment
Officer
TOTAL INVESTMENT PORTFOLIO VALUE $22,518,983,000
LACERS Policy Benchmark
LACERS Total Fund
ANNUALIZED RATES OF RETURN
(GROSS OF FEES)
1 YR (%)3 YR (%)5 YR (%)
29.29 11.58 11.45
27.39 12.33 11.89
Portfolio Value Rate of Return (Gross of Fees)
compared to Total Portfolio Value for ten fiscal years all ending on June 30.
Dollars in Thousands
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(by Percent)
21.8%
ASSET
ALLOCATION
27.7%
13.5%
15.9%
8.3%
10.8%
2.0%
LACERS
202 W. First Street, Suite 500,
Los Angeles, CA 90012
M-F 7:00 am – 4:00pm
(800) 779-8328
TTY: (888) 349-3996
EXECUTIVE OFFICERS
Neil M. Guglielmo
General Manager
Lita Payne
Assistant General Manager
& Executive Officer
Todd Bouey
Assistant General Manager
Rodney June
Chief Investment Officer
BOARD OF
ADMINISTRATION
Cynthia M. Ruiz
President
Dr. Sung Won Sohn
Vice President
Annie Chao
Commissioner
Elizabeth Lee
Commissioner
Sandra Lee
Commissioner
Nilza R. Serrano
Commissioner
Michael R. Wilkinson
Commissioner
LACERS Website
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