Page 416 - 2020-21 Budget Summary

DEPARTMENT OF PENSIONS

FIRE AND POLICE PENSIONS SYSTEM

The Board of Fire and Police Pension Commissioners has the sole and exclusive responsibility for the administration of the
System and investment of monies in the funds of the Fire and Police Pensions System, and administers the provisions of the
Charter relative to service, disability, and survivor pensions for members of the Fire and Police Departments and certain Harbor
Port Police and Airport Peace Officers.

Adopted Estimated Budget
Receipts Budget Receipts Appropriation
2018-19 1 2019-20 2019-20 2020-21 2,3
RECEIPTS
$ 687,867,488 $ 705,075,973 $ 705,076,000 City Contribution (General Fund).......................... $ 752,187,959
(1,274,936) (2,095,442) (2,270,000) less: Excess Benefit Plan..................................... (2,375,366)
4,967,756 5,183,156 5,183,000 Harbor Revenue Fund.......................................... 5,530,741
1,337,008 1,687,886 1,337,000 Airport Revenue Fund.......................................... 2,270,226
$ 692,897,316 $ 709,851,573 $ 709,326,000 City Contributions to LAFPP (All Sources)............ $ 757,613,560
147,752,497 155,938,944 143,865,000 Member Contributions.......................................... 157,276,742
571,915,620 468,900,000 531,000,000 Earnings on Investments...................................... 479,000,000
933,521,406 -- -- Gain (Loss) on Sale of Investments...................... --
395,728 1,500,000 605,000 Miscellaneous...................................................... 1,500,000

$ 2,346,482,567 $ 1,336,190,517 $ 1,384,796,000 Total Receipts..................................................... $ 1,395,390,302

Adopted Estimated Budget
Expenditures Budget Expenditures Appropriation
2017-18 1 2019-20 2019-20 2019-20
EXPENDITURES
$ 678,963,158 $ 710,000,000 $ 679,577,000 Service Pensions................................................. $ 760,000,000
141,378,274 162,192,000 129,144,000 Service Pensions - DROP payout......................... 139,766,670
111,575,192 113,000,000 111,747,000 Disability Pensions............................................... 113,000,000
129,825,793 132,000,000 130,053,000 Surviving Spouses'/DP Pensions......................... 140,000,000
4,236,083 3,900,000 4,252,000 Minors'/Dependents' Pensions............................. 3,900,000
4,477,787 4,500,000 3,637,000 Refund of Contributions........................................ 4,100,000
1,070,456,287 1,125,592,000 1,058,410,000 Subtotal Pension Benefits.................................... 1,160,766,670

121,405,601 127,000,000 121,712,000 Health Insurance Subsidy..................................... 132,000,000
4,289,164 4,650,000 4,302,000 Dental Insurance Subsidy..................................... 4,800,000
11,294,464 15,500,000 11,399,000 Medicare Reimbursement.................................... 15,500,000
884,527 1,300,000 1,547,000 Health Insurance Premium Reimbursement......... 1,400,000
137,873,756 148,450,000 138,960,000 Subtotal Health Benefits...................................... 153,700,000
1,208,330,043 1,274,042,000 1,197,370,000 Total Benefit Expenses........................................ 1,314,466,670

113,390,982 106,908,329 107,799,000 Investment Management Expense....................... 114,427,756
22,099,870 22,498,810 22,735,000 Administrative Expense........................................ 24,624,532

$ 1,343,820,895 $ 1,403,449,139 $ 1,327,904,000 Total Expenditures............................................... $ 1,453,518,958
$ 1,002,661,672 $ (67,258,622) $ 56,892,000 Increase (Decrease) in Fund Balance.................. $ (58,128,656)
Total Expenditures and Increase/(Decrease) in

$ 2,346,482,567 $ 1,336,190,517 $ 1,384,796,000 Fund Balance $ 1,395,390,302

1) 2018-19 Actual Receipts and Expenditures are derived from LAFPP's Audited Financial Statements using the modified accrual basis.
2019-20 Estimated Receipts and Expenditures and 2020-21 Budgeted Receipts and Expenditures are calculated on a cash basis.
2) The total City Contribution (General Fund) in a given Fiscal Year is the sum of the General Fund and Excess Benefit Plan (EBP) line items.
For 2020-21 these amounts total $752,187,959. Since the EBP revenue is transferred to the Controller, however, it is excluded from LAFPP
total revenue. The Harbor and Airports contributions are calculated separately and are reflected in separate line items.
3) In November 2016, voters of the City of Los Angeles approved an amendment to the City Charter to (1) enroll all new Airport Police Officers
hired on or after January 7, 2018, in the Los Angeles Fire and Police Pension Plan (LAFPP) instead of the Los Angeles City Employees’
Retirement System (LACERS); (2) allow all current Airport Police and Airport Safety Officers who started before January 7, 2018, to convert all
of their LACERS retirement credit to LAFPP Tier 6 credit at their own expense; and, (3) give any current or future Airport Chief of Police the
option of joining LACERS instead of LAFPP. The first contribution by Airports was made in January 2018.
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