Page 409 - FY 2020-21 Blue Book Volume II

General City Purposes

GOVERNMENTAL SERVICES PROGRAM

Governmental services required for legislative, economic, or governmental needs not specifically allocated to particular operating
departments. These diverse services include, but are not limited to, official notices, recording fees, legislative, economic, or
governmental purposes, and governmental meetings.

2019-20 Change From 2020-21
Program Changes Adopted Budget 2019-20 Budget Proposed Budget

Non-discretionary Changes
Administered by: Controller
3. Medicare Contributions. Funds are provided for the $ 55,882,729 $ 5,354,959 $ 61,237,688
City's contribution to the hospital insurance portion of the
Federal Insurance Contributions Act tax. Congress
mandated participation of all state and local employees
hired on or after April 1, 1986 in the Medicare system.
Employers and employees are required to make matching
contributions of 1.45 percent of gross wage earnings. An
increase to this account reflects an increase in gross wage
earnings and the projected number of employees subject
to Medicare.

4. Social Security Contributions. As of July 1, 1991, the 1,980,610 327,994 2,308,604
City is required to pay the Social Security tax for all part-
time employees who are not members of the Los Angeles
City Employees Retirement System (LACERS). As an
alternative to Social Security for part-time, seasonal, and
temporary employees, the Pensions Savings Plan was
developed in 1993-94 (C.F. 91-2279) to save the City
approximately $2 million each year as detailed in the
Pensions Savings Plan item. An increase to this account
reflects an increase in gross wage earnings and the
projected number of employees eligible for Social Security.

Administered by: Personnel

5. Pensions Savings Plan. Approximately 4,000 to 5,000 2,729,799 (13,344) 2,716,455
employees participate in the Pensions Savings Plan,
which complies with the provision of the Federal Omnibus
Budget Reconciliation Act requiring employees to be either
members of a qualified retirement plan or Social Security.
Individuals who become permanent employees, such as
police and fire recruits, can transfer the contributed
amounts into the City's Deferred Compensation Plan. The
Personnel Department and the Deferred Compensation
Plan Advisory Committee administer the plan with the
assistance of an outside administrator selected through a
competitive bid process. The cost of administration comes
from investment earnings.

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