Page 417 - FY 2022-23 Proposed Budget

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
2020-21 1 2021-22 2021-22 2022-23 2,3
RECEIPTS
$ 736,508,661 $ 721,998,264 $ 721,998,000 City Contribution (General Fund).......................... $ 667,422,703
(2,399,556) (2,191,000) (2,191,000) less: Excess Benefit Plan..................................... (2,569,000)
5,510,840 5,946,499 5,943,000 Harbor Revenue Fund.......................................... 5,637,470
2,223,814 2,277,580 2,840,000 Airport Revenue Fund.......................................... 3,341,935
$ 741,843,759 $ 728,031,343 $ 728,590,000 City Contributions to LAFPP (All Sources)............ $ 673,833,108
157,785,911 165,516,117 149,790,000 Member Contributions.......................................... 167,819,149
609,902,322 506,000,000 506,000,000 Earnings on Investments...................................... 506,000,000
2,279,392,209 -- -- Gain (Loss) on Sale of Investments...................... --
739,998 500,000 456,000 Miscellaneous...................................................... 500,000
$ 3,789,664,199 $ 1,400,047,460 $ 1,384,836,000 Total Receipts..................................................... $ 1,348,152,257

Adopted Estimated Budget
Expenditures Budget Expenditures Appropriation
2020-21 1 2021-22 2021-22 2022-23
EXPENDITURES
$ 770,714,705 $ 826,000,000 $ 805,361,000 Service Pensions................................................. $ 856,000,000
156,462,097 137,300,000 120,606,000 Service Pensions - DROP payout......................... 211,740,500
111,657,072 113,000,000 108,537,000 Disability Pensions............................................... 113,000,000
140,369,541 146,000,000 143,789,000 Surviving Spouses'/DP Pensions......................... 149,000,000
3,203,071 3,400,000 3,834,000 Minors'/Dependents' Pensions............................. 4,100,000
4,556,135 4,100,000 6,216,000 Refund of Contributions........................................ 6,300,000
1,186,962,621 1,229,800,000 1,188,343,000 Subtotal Pension Benefits.................................... 1,340,140,500

133,192,395 142,000,000 126,846,000 Health Insurance Subsidy..................................... 142,000,000
4,532,889 5,000,000 4,647,000 Dental Insurance Subsidy..................................... 5,200,000
12,811,006 16,500,000 12,763,000 Medicare Reimbursement.................................... 16,000,000
1,319,104 1,500,000 1,587,000 Health Insurance Premium Reimbursement......... 1,600,000
151,855,394 165,000,000 145,843,000 Subtotal Health Benefits...................................... 164,800,000
1,338,818,015 1,394,800,000 1,334,186,000 Total Benefit Expenses........................................ 1,504,940,500

136,064,510 126,402,428 142,819,000 Investment Management Expense....................... 150,221,861
23,513,284 25,538,810 24,836,000 Administrative Expense........................................ 26,892,550
$ 1,498,395,809 $ 1,546,741,238 $ 1,501,841,000 Total Expenditures............................................... $ 1,682,054,911

$ 2,291,268,390 $ (146,693,778) $ (117,005,000) Increase (Decrease) in Fund Balance.................. $ (333,902,654)
Total Expenditures and Increase/(Decrease) in
$ 3,789,664,199 $ 1,400,047,460 $ 1,384,836,000 Fund Balance $ 1,348,152,257

1) 2020-21 Actual Receipts and Expenditures are derived from LAFPP's Audited Financial Statements using the modified accrual basis.
2021-22 Estimated Receipts and Expenditures and 2022-23 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 2022-23 these amounts total $667,422,703. 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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