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The board that oversees pension benefits for thousands of workers in the City of Los Angeles reduced its projected rate of return Tuesday in a move that will further strain the city’s general budget.
Expected yearly earnings were cut from 7.5% to 7.25% following a unanimous vote by the City Employees’ Retirement System board. That will shift $38 million in retirement costs to the general fund budget.
It couldn’t come at a worse time. Earlier this year, the Los Angeles Fire and Police Pensions board, cut its assumed annual rate of return from 7.5% to 7.25%. Together, these two decisions will add $170 million in retirement costs to next year’s budget, analysts say.
What will it all mean for Los Angeles? Read the full story at the L.A. Times.
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Published 8 years ago
Last updated 2 weeks ago
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