Page 409 - 2022-23 Blue Book Vol 2

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.

2021-22 Change From 2022-23
Program Changes Adopted Budget 2021-22 Budget Proposed Budget

Non-discretionary Changes
Administered by: Controller

3. Medicare Contributions. Funds are provided for the $ 56,610,108 $ 4,364,527 $ 60,974,635
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.
Funding is increased to reflect 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 2,180,887 (153,466) 2,027,421
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. Funding is decreased to
account for a fewer number of Social Security participants
in 2022-23.

Administered by: Personnel
5. Pensions Savings Plan. Approximately 4,000 to 5,000 2,405,618 23,278 2,428,896
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. Funding is increased to reflect an increase in
gross wage earnings and the projected number of
Pensions Savings Plan participants in 2022-23.

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