---

 ![](https://www.citywatchla.com/images/stories/Mar-2020/026i.png)

 [ LOS ANGELES ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=312)

#  The Truth About LACERS – The LACERS’ Board, What Happened?

March 26 2020

Written by Tom Moutes.

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

**CITYWATCH SPECIAL REPORT**--*In 2001, the Los Angeles City Employees’ Retirement System or LACERS\* was 100.4% funded, it had a surplus of $557.7 million (no unfunded liability), and its annual contribution from the City was approximately $70 million.*

 *In 2019 LACERS is 73.1% funded, its unfunded liability is $6.5 **billion** and its most recent annual contribution from the City was $676.7 million. (**The Truth about LACERS** is a series and will run weekly on Thursdays.)

*LACERS should propose to the City Council that the City Charter be amended to stipulate that an appointed board member may be removed prior to the end of his or her term, but only for cause relating to the board member’s fiduciary or statutory duties, and that if an appointed board member is removed from office prior to the expiry of his or her term, that the reason(s) for such removal be publicly disclosed.*

This recommendation is from 2013 Management Audit of LACERS conducted on behalf of the City Controller, City Council, and Mayor (not LACERS). It is not a coincidence that this recommendation was made after two perfectly good LACERS board members, Roberta Conroy and Jerry Bardwell, were dismissed from the board (their pre-signed letters of resignation were accepted) by then Mayor Antonio Villaraigosa.

So, what is wrong with the Mayor removing board members? For most City boards, the Mayor probably should have the authority to dismiss board members without specific cause, but pension systems are different. By law, the primary duty of California public pension board members is to the members of their pension plan – not to the Mayor or anyone else. The California Constitution indicates that, “A retirement board’s duty to its participants and their beneficiaries shall take precedence over any other duty.” This helps protect the pension systems from political influence, especially in a situation like LACERS where the Mayor appoints a majority of the board members -- four of the seven members.

When LACERS board members need to discuss items that may impact the City budget, it can be difficult for them to have that discussion free of political influence – explicit or perceived – if the Mayor’s representative is pacing in the back of the board room, having a conversation with them in the hallway just before their vote (real life examples), or if they believe the Mayor may dismiss them from the Board if they vote in a way he may not like (as Ms. Conroy appeared to be in 2011).

Appointed LACERS Board Members with real or perceived axes over their heads are more likely to act in the same short-sighted manner as term-limited politicians. Short-sighted decisions by the LACERS Board will not be beneficial to the long-term interests of LACERS members or City taxpayers.

So, what happened to the common-sense audit recommendation from 2013 from the audit conducted on behalf of the Mayor and other City leaders? Mayor Garcetti’s staff was not surprisingly uninterested in moving forward with the suggested Charter change, so the recommendation died, but the issue remains.

*(Tom Moutes has served at LACERS for approximately sixteen years, the last seven of those years as the General Manager of the pension system. He retired in 2018. Tom can be reached at* [*necessarypensionconversations@gmail.com*](mailto:necessarypensionconversations@gmail.com)*.) **THE TRUTH ABOUT LACERS is a series and will be posted weekly on Thursdays, in CityWatch.***

-cw

 [ ![benzinga ad](https://www.citywatchla.com/images/ADS%20FOR%202026/benzinga%20headlines%20350.png) ](https://www.citywatchla.com/component/banners/click/106 "benzinga ad")

 [ ![save up to 4000 on used evs](https://www.citywatchla.com/images/LADWP/dwp%20ev%20ad2.png) ](https://www.citywatchla.com/component/banners/click/107 "LA DWP | Save $4K, Green | Priority Ad")

 [ ![Donna Tryfman](https://www.citywatchla.com/images/ADS%20FOR%202026/Donna-Tryfman-Ad-Final-Complete-Border-White-Margin.png) ](https://www.citywatchla.com/component/banners/click/98 "Donna Tryfman - HS1-1")

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 [ ![David DeJute Campaign](https://www.citywatchla.com/images/ADS%20FOR%202026/DejuteAd.png) ](https://www.citywatchla.com/component/banners/click/111 "David DeJute Campaign")

 [ ![Pay Water Bill Help](https://www.citywatchla.com/images/LADWP/dwp%20-%20cares-ad.jpg) ](https://www.citywatchla.com/component/banners/click/97 "Home - LA DWP #2 (Pay Water Bill Help)")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Email

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/1c/072d-1c016ddf.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33319:when-the-last-minute-power-play-failed-sacramento-finally-ran-out-of-time&catid=375)

### [When the Last-Minute Power Play Failed: Sacramento Finally Ran Out of Time](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33319:when-the-last-minute-power-play-failed-sacramento-finally-ran-out-of-time&catid=375)

MY THOUGHTS - Gavin Newsom came to the final days of his final regular legislative session with one more major problem…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/88/071n-88bb0b90.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=378)

### [Follow the Money: How Does a $3,662 Apartment Become “Affordable Housing”?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=378)

INVESTIGATIVE ANALYSIS - ED 1 Is Redeveloping Los Angeles—One Neighborhood at a Time You know that persistent, annoyin…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/4b/070i-4ba64015.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

### [Newsom’s Next Immigration Gamble: Defy Federal Law And Dare Washington To Fight Back](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

MY THOUGHTS - Gov. Gavin Newsom is about to decide whether California should take another extraordinary gamble with fed…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/44/071d-441a7ed2.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

### [As California Debated Sharing Data On Drivers, Homeland Security Subpoenaed 17 Million Records](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

TECHNOLOGY - California lawmakers wrestled with a difficult question earlier this summer: Could the state safely share…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/63/071g-63b8cac9.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33307:california-apartment-association-gears-up-for-rent-control-battle-in-redwood-city&catid=429)

### [California Apartment Association Gears Up for Rent Control Battle in Redwood City](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33307:california-apartment-association-gears-up-for-rent-control-battle-in-redwood-city&catid=429)

HOUSING IS A HUMAN RIGHT - The California Apartment Association and many of the largest corporate landlords in the Unit…

---

##  [ LOS ANGELES ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=312)

 [ ![](https://www.citywatchla.com/images/stories/Sept-2026/071a5.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33295:7-ways-to-turn-la28-hype-into-lasting-youth-sports-growth&catid=312)### [7 Ways to Turn LA28 Hype Into Lasting Youth Sports Growth](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33295:7-ways-to-turn-la28-hype-into-lasting-youth-sports-growth&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Sept-2026/071a4.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33294:7-simple-ways-to-keep-pets-safe-this-halloween&catid=312)### [7 Simple Ways To Keep Pets Safe This Halloween](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33294:7-simple-ways-to-keep-pets-safe-this-halloween&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Sept-2026/071a.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33291:6-secrets-keeping-la-worksites-safe&catid=312)### [6 Secrets Keeping LA Worksites Safe](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33291:6-secrets-keeping-la-worksites-safe&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/070d.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33281:designed-to-fail&catid=312)### [Designed to Fail](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33281:designed-to-fail&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/070m.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33287:la-mayor-in-flip-flops&catid=312)### [LA Mayor in Flip Flops](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33287:la-mayor-in-flip-flops&catid=312)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>