Status of the Fund – December 2020
Total fund assets have once again reached an all new high! As of December 8, 2020, your Fund reached an unaudited market value in excess of $27.5 billion dollars. This greatly exceeds the $25 billion total as of January 2020, just before the stock market declined due to the COVID-19 pandemic. The rebound in the Plan’s market value is due to the strong recovery in the equity markets and the City’s annual contribution payment received in July 2020.
On another positive note, for the actuarial valuation period ending June 30, 2020, the combined funded ratio for pension and health benefits is 88.6%, up slightly from 88.5% the previous year. This marks the third consecutive year that the combined funded ratio has increased. Even though the pension benefit funded ratio is now 93.2%, down from 93.6%, the health benefit funded ratio increased from 56.2% to 59.7%. The favorable results indicate that the Plan remains strong despite a volatile year marked by the COVID-19 pandemic.
We want to remind you that any proposals to modify LAPD’s budget would not impact the substance of your LAFPP pension benefits, or the general obligation under the City Charter to contribute annually to the LAFPP Fund in the amount determined by an independent actuary hired by this Board. Your vested pension benefits, the City’s obligation to fund those benefits, and the independent authority of this Board to protect and invest the trust funds that will be used to pay those benefits, are protected by the California Constitution and the City Charter.
The LAFPP Board and staff continue our commitment to administer your pension benefits during these challenging times. We have implemented changes to our operations, which have enabled us to continue serving you without interruption during the COVID-19 crisis.
Thank you for your dedication and service as first responders to the residents of Los Angeles. For any questions or concerns, please contact us at (213) 279-3000, (844) 88-LAFPP, or at Pensions@lafpp.com.
LAFPP continues to be one of the largest public safety pension funds in the U.S. The Plan administers retirement and health subsidy benefits for over 26,000 current and retired public safety employees and their beneficiaries for the City of Los Angeles.