City Council

(6) 10-1868 PERSONNEL AND HIRING COMMITTEE REPORT relative to implementation of case settlement, amendment to the Los Angeles City Employees Retirement System (LACERS) Peace Officer Transfer Program and omnibus cleanup of plan provisions for the Los Angeles Fire and Police Pensions (LAFPP). Recommendation for Council action: REQUEST the City Attorney to prepare and present an Ordinance necessary to implement a recent legal case settlement resulting in an update to the method for calculating health insurance premium subsidies for LAFPP Members, to authorize amortization for costs and expenses to pay the full actuarial cost of the LACERS Peace Officer Transfer Program, and to make all other necessary technical updates to the LAFPP plan provisions. Fiscal Impact Statement: The City Administrative Officer reports that according to LAFPP’s actuary, updating the LAFPP Plan terms to reflect the settlement to resolve litigation over the health insurance premium subsidies should not have a fiscal impact on the City because the maximum subsidy amount remains unchanged. Calculations provided in a report prepared by LAFPP’s actuary indicate that amortization of costs and expenses for the LACERS Peace Officer Transfer Program will have a fiscal impact on the General Fund. Those calculations can be seen in the actuarial report included with the council file. In the event the City declines the option to amortize these costs, paying in full will not have any additional fiscal impact beyond what has been reported as the full actuarial cost of the Program.