News

FOR IMMEDIATE RELEASE

October 18, 2021

Media Contact: Eric W. Rose, eric@ekapr.com or 213-741-1500 ext. 525 
 

Pension Fund Files Lawsuit Against Los Angeles County

Pasadena, Calif.— The Los Angeles County Employees Retirement Association (LACERA) today filed a lawsuit in Superior Court against the County of Los Angeles and the County Board of Supervisors to confirm LACERA’s independence and its ability to manage and administer the almost $74 billion retirement system for the benefit of its more than 184,000 members. LACERA is a separate public agency from the County and provides independent administration of the County pension system, including its assets and the payment of benefits. It is the largest County pension retirement system in the United States.

LACERA seeks a court order confirming that the California Constitution and California state law vests in the independent LACERA Boards of Trustees, as fiduciaries, the right, power, and duty to administer the retirement system solely and exclusively for the benefit of the LACERA members who have entrusted their retirement and disability pensions to LACERA as an independent agency separate and apart from the County. Further, LACERA requests a court order implementing critical personnel actions approved by the LACERA Boards, which the County has blocked from becoming effective. 

As part of its service to members and its protection of almost $74 billion in assets, it is crucial that the retirement plan be independently administered by LACERA’s Boards. The California Constitution and state law delegate the authority to manage and administer the fund to the independent LACERA Boards, which include both elected and appointed trustees, whose fiduciary duty is solely to the members. This authority necessarily includes creating the organizational structure and hiring the personnel most qualified to perform LACERA’s mission to produce, protect, and provide the promised retirement benefits to its 180,000 public servant members. 

The lawsuit filing will not affect LACERA’s assets, investments, or the timely delivery of benefits and services to its members and beneficiaries. 

About LACERA

LACERA is a public retirement plan created and operating under the County Employees Retirement Law of 1937 (CERL) and is subject to the California Constitution, CERL, and the Public Employees’ Pensions Reform Act of 2013 (PEPRA). LACERA is governed by two boards. Both boards are composed of elected and appointed members and one ex-officio member. The Board of Retirement is responsible for the overall management of the retirement system and the LACERA-administered Retiree Healthcare Benefits Program. The Board of Investments is responsible for establishing LACERA’s investment policies, strategies, and objectives, as well as exercising authority and control over the investment management of the fund and actuarial matters relating to setting of contributions and estimation of fund liabilities.