Audit of the City of Los Angeles’ Pension Contributions
Addressing our City government’s current and future pension obligations is among the most challenging of issues for the City’s fiscal well-being. This is, of course, a challenge faced by cities, counties and states nationwide – but one that will require local leadership and solutions.
While the City modified certain pension provisions for newly hired employees as of July 1, 2013, pension obligations are accounting for an increasing share of City expenditures. And, the combination of relatively flat revenues and more retirees is one that impacts security and expectations of current and former employees – and the City’s ability to provide services and invest in our infrastructure.
There isn’t one answer. But transparency, review and oversight of our pensions management and investments provides us with an opportunity to minimize liabilities and costs while maximizing returns, hence, the audits released by the Controller’s office today.