The 2023 LACERS Symposium occurred on February 22, 2023, and
featured a range of speakers who educated all of our
stakeholders regarding the national perspective of public
pensions, risks to public pension funds, aspects of investments,
retirement, and what’s happening at LACERS.
Agenda
Board Agenda & Symposium Presentations
9:00 AM Welcome & Opening Remarks
9:15 AM Pensions Administration
10:30 AM Investments
11:45 AM Lunch Break
12:15 PM Future of Medicare/Controlling Health
Care Cost
1:20 PM LACERS Wellness Program
1:35 PM My LACERS Retirement Experience
Member Roundtable
2:05 PM LACERS Focus on the Member
Experience
2:35 PM LACERS Vision
2:50 PM Closing Remarks
Guest Speakers
Alex Brown, NASRA
Alex Brown is the Research Manager with the National Association
of State Retirement Administrators. In this role he collects and
distributes data and information covering a wide range of topics
pertinent to public retirement system administration and policy.
He has co-authored briefs and papers on topics such as employer
and employee pension contributions, hybrid retirement plans, and
pension reform. He has also discussed pension issues in front of
state legislatures, public pension boards of trustees,
professional associations, and other stakeholders. Prior to
joining NASRA, Alex worked at the Center for State & Local
Government Excellence and the International City/County
Management Association, focusing on pension and retiree health
care issues. He holds a B.S. from James Madison University and an
M.P.P. from George Mason University.
Todd Tauzer, Segal
Todd Tauzer is a Vice President and Actuary, and Segal’s National
Public Sector Retirement Practice Leader, specializing in public
pension funding and risk management for public pension plans
across the United States. He came to Segal as Director of
Municipal Pensions from S&P Global Ratings, where he
developed a detailed framework to evaluate the health and
sustainability of public pension and OPEB plans across all 50
states. Prior to S&P he was a senior pension actuary at
CalPERS, where he worked for almost ten years and led work in
asset liability management and risk mitigation. Mr. Tauzer sits
on both the Board of the California Society of Municipal Analysts
and the University of the Pacific’s Actuarial Science program. He
is also active in leadership within the State of California,
serving on both the California Actuarial Advisory Panel and for
the California State Auditor’s High Risk Advisory Team for Local
Governments. He has been quoted by The Wall Street Journal,
Bloomberg, The Economist, Pensions & Investments, Investments &
Pensions Europe, Chief Investment Officer, Plan Sponsor, and The
Bond Buyer, among others.
Andy Yeung, Segal
Andy Yeung is a Vice President and Actuary in Segal’s San
Francisco office with over 25 years of actuarial experience. He
currently serves as supervising and co-consulting actuary for
LACERS, LAFPP, LADWP and twelve 1937 Act county and chartered
city retirement systems. He has also served as a member of the
State Association of County Retirement Systems (SACRS)
Legislative Committee since 2009. He is an Associate of the
Society of Actuaries, a Member of the American Academy of
Actuaries, a Fellow of the Conference of Consulting Actuaries and
an Enrolled Actuary.
Carolyn Smith, NEPC
Carolyn’s career in investment consulting began in 1987, and she
joined NEPC in 2006. Carolyn has extensive experience
working with large institutional clients. She has a
specialty in defined benefit and defined contribution plans
working with them on plan design, investment and governance
issues. She is a member of the Diverse Manager Committee
and Women’s Leadership Forum.
Carolyn’s experience includes twelve years as a director and
senior consultant with Watson Wyatt Investment Consulting working
with a broad array of clients. She also had management
responsibilities for the U.S. Western Region. Prior to
Watson Wyatt, Carolyn was a senior consultant at Callan
Associates, Inc. working with the firm’s foundation, endowment,
corporate and public fund clients.
Carolyn received a B.S. degree in Finance from the University of
Utah. She currently chairs the investment committee for a
San Francisco Bay Area not-for-profit overseeing multiple
operating reserve accounts, a foundation and 403(b) plan.
Mark Green, PRI
Mark Green serves as a Senior Specialist and Relationship Manager
with the Principles for Responsible Investment (PRI). In this
capacity, Mark works with a variety of Asset Owners, Investment
Managers and Service providers in the Western Region of the US,
promoting Responsible Investment among PRI signatories and
recruiting new members for the organization.
Prior to PRI, Mark spent a 30-year career in the investment
management industry serving in various roles as analyst,
portfolio manager and Chief Investment Officer. He has been
involved in responsible investment since the 1990s, helping asset
owners express their values though capital allocation in the
financial markets. Mark is a CFA Charterholder.
Peter
Cassidy, Anthem
As a Group Retiree Solutions Sales Executive, Peter partners with
commercial sales teams, brokers, consultants and clients as the
Medicare Advantage and Medicare Part D subject matter expert for
strategic new sales. He has experience managing large, complex
accounts and excels at developing strong client relationships.
Peter joined the Anthem team in 2018 with over 20 years of
experience in the healthcare industry, including network
management, small and large group sales, account management, and
labor and trust. Peter has extensive experience consulting with
large group clients, especially in public entity and labor and
trust sectors, to develop and implement Medicare Advantage goals
and objectives. He also oversees the implementation process for
new clients. Peter has in-depth knowledge of CMS regulation, plan
administration and benefit design, and retiree benefit
management.
Dr. Alana Thompson-Byrd, Anthem
Dr. Alana Thompson-Byrd is the Managing Medical Director for
Group Retiree Services in Medicare Advantage. Dr. Thompson joined
Anthem in 2017 as an Operational Medical Director in the
Integrated Health, and Total Health Total You model for Anthem
National Accounts. Dr. Thompson lead both utilization and case
management teams that were responsible for jumbo commercial and
specialty business accounts. Dr. Thompson regularly interacts
with her plan providers to guide adherence to medical policy and
clinical guidelines as well as with her clients to optimize plan
design. Dr Thompson is one of the physician leads for the
Inclusive Care Initiative and the Anthem Physician and Clinician
(APC) for Health Equity Workgroup.
Dr. Thompson brings experience in large commercial business from
her time as St. Louis’s Area Medical Director for Concentra
occupational and health services. In this role she regularly met
with local and national clients to review and address their
utilization metrics, while providing insight to any outliers. She
managed seven clinics, was responsible for medical personnel
development and training, performed regular audits of each
clinic, and worked directly with the Account Executives to
support client-specific needs. Dr. Thompson was responsible for
improving the NPER scores of one of St. Louis’s flagship centers.
Previously Dr. Thompson practiced full scope family medicine
including pediatrics and obstetrics in the metropolitan area
surrounding St. Louis.
Dr. Thompson is a graduate of the University of Illinois College
Of Medicine at Peoria and a residency graduate of the Saint Louis
University Family Medicine program. She is board certified in
Family Medicine and lives in Illinois.
Ramiro Salas, Kaiser Permanente
Ramiro Salas is the Director of Group Medicare at Kaiser
Permanente. He has over 29 years of experience in the healthcare
industry – 16 of those in Medicare.
Ramiro works closely with Kaiser Permanente’s leadership team to
develop sustainable Medicare Advantage products for employer
group customers in the States of California and Hawaii.
He leads the team of Retiree Solutions Managers who are
responsible for ensuring City of LA’s Group Medicare contracts
are compliant with CMS regulations and to support City of LA with
all Medicare administrative needs.
Ju Anderson, Keenan
Ju Anderson is the Practice Leader of the Employee Benefits
HealthCare Division at Keenan. Ju has over 25 years of consulting
experience with 15 of those years at Keenan. Previous positions
were with Deloitte, Time Warner, Gallagher, Verisign and Deutsche
Bank. Ju holds a Bachelor of Arts in Psychology from Wellesley
College in Massachusetts.
As Practice Leader of the HealthCare Benefits Division for
Keenan, Ju consults clients with solutions that address their
specific needs and future organizational goals. Ju’s
expertise is in health and welfare benefits consulting that
involves team building and facilitating a collaborative
environment to deliver on high-value consultative services that
include benefits analysis, strategy, mergers and acquisition
support for clients, benefits program alternatives, vendor
management and solutions, retirement benefits, self-insured
opportunities, HR and other strategic solutions.
Laurie LoFranco, Keenan
Laurie LoFranco has more than 30 years of experience in
human resources and employee benefits. Laurie joined Keenan &
Associates in 2008 after spending the previous 12 years at the
City of Corona, most recently serving as their Human Resources
Director. Laurie has been with Keenan & Associates for 14 years
and currently runs the Municipal Practice for Keenan covering the
State of California. Laurie served on the Board of
Directors for the California Personnel Employee Labor Relations
Association (CALPELRA) and is currently serving on the Board of
Directors for the Inland Empire Chapter of IPMA-HR. Laurie holds
an Executive Level Human Resources Certification from IPMA and
holds a California State Insurance License in Accident, Health
and Life Insurance. Laurie graduated from the College of Notre
Dame with a Degree in Human Services and holds a Master’s Degree
in Public Administration from California State University, San
Bernardino.
Robin Rager, Keenan
Robin Rager, Vice President of Health Management at Keenan, has
been involved in the health and wellness field for over three
decades, as a consultant, college professor, and researcher, and
has been leading the Keenan employee health management consulting
team since 2010. His professional activities have focused on
individual and population health management, and the design and
evaluation of effective health and wellness programs in a variety
of populations and settings. He holds M.S. and Ph.D. degrees in
Health Education from Penn State University, has served as
the Director of Penn State’s Center for Worksite Health
Enhancement, and has authored numerous articles and presentations
on health management. He has been honored as a Fellow of
the Association for Worksite Health Promotion, served as chair of
the American Public Health Association’s Worksite Health
Promotion Committee, and participated in the development of the
Healthy People Objectives for the Nation.
Questions & Answers
I missed the Symposium, where can I watch it?
The Symposium recording is available on LACERS YouTube
Channel.
Can we get a hard copy of the slide presentation for
the Pension Symposium in its entirety mailed to us?
The
Board Agenda includes all presentations.
This Symposium is very long. Is there an abbreviated
version of the information somewhere?
The Symposium recording is available on LACERS YouTube
Channel and is indexed so you can skip to the
sections you would like to review. Similarly, The
Board Agenda includes all presentations and the Pension Symposium webpage includes the
Questions & Answers from the event.
Is the intent of the Symposium to educate us or to
condition pensioners and retirees to expect a new reality in
future years?
The purpose of this and previous/future LACERS Symposiums is to
educate and inform our Members and other attendees regarding the
national perspective of public pensions, risks to public pension
funds, aspects of investments, retirement, and what’s
happening at LACERS.
Can you discuss investment plans for employees nearing
retirement? I am very near retirement!
LACERS is not able to advise Members on private investments.
However, for more information regarding LACERS’ Investments,
please visit our Investments
webpage.
I may have missed this – Will larger annuity initiation
and/or changes be discussed?
LACERS has worked with our Plan Actuary, Segal, to review the
program and conformance to the City’s Administrative Code.
Changes to the Larger Annuity Program are being explored and
recommendations will be made to the Board of LACERS
Commissioners.
I have not begun to assign a contribution through the
Larger Annuity Program (LAP). Will LAP recommended contribution
percentages and expectations be discussed?
The Larger Annuity Program is not a specific item of discussion
in today’s Symposium. For more information on the program, please
visit the Larger Annuity
Program webpage.
What is a statewide hybrid plan?
The NASRA Website
includes this information.
How strong is the asset-liability funding for the LACERS
Health coverage?
As of June 30, 2022, the pension was funded at 70.7%. As of June
30, 2022, the health benefit plan is 93.5% funded. The aggregate
weighted funded level for the pension and health plans is 73.6%.
Where can I find rankings of pension plans by funding
level/ratio or ability to pay out to Members?
Pension Plan Funding Levels
Is the great recession being referred to as the one in
2008?
Yes.
If we go into a recession, would that affect our
pension?
LACERS pension benefits are funded through employee
contributions, employer (City) contributions, and returns on
investments. They are funded on a long-term basis, based on
the expert advice of LACERS’ actuary and investment
professionals, to ensure that LACERS continues to be able to
deliver the benefits that retirees have been promised, even in
challenging years for the economy and investment markets. LACERS
pension benefits are a general obligation of the City of Los
Angeles under the City Charter, which means that ultimately, the
City is financially responsible for making sure the benefits that
have been promised to retirees are paid.
Will there be a discussion on providing a discretionary
COLA for retirees since inflation over the past few years has
exceeded the 3% maximum COLA for Tier 1 Members?
LACERS years ago did provide this to retirees who retired a
number of years ago and the Board approved this COLA.
Cost of Living Adjustments under the authority of the LACERS
Board are prescriptive and additional details are available on
the COLA webpage. The
City Administrative Code does have a provision for the City
Council to find and determine that annual cost of living
adjustments are inadequate in light of the movement of the
Consumer Price Index, and thereby City Council may grant
additional but discretionary cost of living adjustments. This
consideration and decision is outside of the control of LACERS
and is at the discretion of the City employer and at the
recommendation of the City Administrative Officer.
With retirees getting some social security and pension, I
didn’t understand how it is different with those only getting a
pension. Please give more clarification.
Households that receive both a public pension and social security
benefits may be affected by the ‘Windfall Elimination Provision’
and ‘Government Pension Offset.’ For more information, please see
this post on our website.
What is LACERS’ investment return assumption level and
how is it determined? How often is it determined?
LACERS’ current investment rate of return is 7.00% and investment
return assumptions are reviewed and evaluated once every three
years as part of LACERS Experience Study. LACERS next Experience
Study will be conducted later this year. For further discussion
of this and other important assumptions, please refer to the
Actuarial Experience Study.
If I die suddenly, and I accrued less than 30 years
of service and I was not 55 years old. What will my spouse
get?
For information on Active Death Benefits please refer to the
Summary of Plan Benefits for your Tier. You may also call
(800)779-8328 and ask to speak to a survivor benefit counselor
for more information.
Summary
Plan Description for Tier 1 Members
Summary Plan Description for Tier 3 Members
You can also view our Survivor Benefits
webpage or watch this video on our YouTube Channel.
Are there talks of changing the existing Tier 1
Plan?
No, Segal’s presentation was demonstrating that Tier 1 employees
are slowly being replaced by those in Tier 3.
Did Segal recommend ERIP and SIP?
LACERS and the City of Los Angeles sought and received Segal’s
analysis of ERIP and SIP. Segal does not make a recommendation
for or against, they perform analysis and address LACERS and/or
City’s questions in conformance with the City’s Administrative
Code and Charter.
Is the ERIP and health defrayal contributions on track to
sunset at a certain year or it is a possibility those
contributions will be extended?
Employee contributions of 1% of salary toward the ERIP Cost
Obligation began on July 1, 2011, and will end on June 30, 2026
(a 15-year period), or until the full actuarial cost of the
program is paid, whichever comes first. Tier 3 Members joined the
City after the implementation of ERIP and do not contribute to
this cost.
I am a retiree receiving benefits. Please correct
me if wrong. It sounds like newer hires are paying a larger
percentage into the retirement plan and receive less
benefits. If this is so, then current retirees are
benefitting from paying in less and receiving more
benefits. This seems unfair to me. Unfairness can result in
problems later. I wonder if current employees are aware of
this situation and suggest offering a tape of the first part of
the symposium when they can hear it, i.e. off work hours. I
would suggest that current retirees bear a portion of the burden
to keep the plan sustainable but perhaps that is not possible
because there is a contractual requirement to pay the
benefits.
The City of Los Angeles as the Employer and Plan Sponsor
determines the benefits and LACERS administers the benefits. It
is up to the City when new pension tiers are created, for
example.
The pandemic seemed to slow the hiring of new employees
and the number of unfilled positions seemed to increase each
year, will this negatively affect our pension fund?
LACERS has three sources of income to Plan, including investment
returns, employee contributions, and Plan Sponsor (City of LA)
contributions. When investment returns and/or employee
contributions are impacted, the Plan Sponsor’s contribution is
increased. Additionally, gains and losses are amortized over a
seven-year period, referred to as smoothing. The seven-year
smoothing period serves to reduce volatility within the
contribution requirements.
Are the ERIP and health defrayal contributions projected
to end by June 30, 2026? If not, when are we projected to
end it as of now?
For the quarter ending December 31, 2022, Tier 1 Members have
contributed just over $257M toward the cost of this liability,
estimated at $355M. Employee contributions of 1% of salary go
towards the ERIP Cost Obligation, which began on July 1, 2011,
and will end on June 30, 2026 (a 15-year period), or until the
full actuarial cost of the program is paid, whichever comes
first.
Can you discuss possible investments in Bitcoin?
LACERS does not have investments in Bitcoin.
Central Bank Digital Currency (CBDC) is in the trial
phase in the northeast US. Is LACERS looking at CDBC as a payout
method to retirees in the future?
Not currently, but LACERS works with our Custodial Bank and does
review different methods of payments to Members on an ongoing
basis. Security of compensation for our Members and beneficiaries
is paramount.
ESG doesn’t seem to be effective. Why is LACERS pursuing
this type of investment?
Please review Section XIV of the
LACERS Investment Policy for further information about LACERS
ESG Program.
Does LACERS have its ESG investment policies posted on
its website?
Yes, please review Section XIV of the
LACERS Investment Policy.
Will LACER incorporate ESG into our pensions?
Please review Section XIV of the
LACERS Investment Policy for information on how ESG is
incorporated in the LACERS investment portfolio.
Should this be in the voting process if employees want
ESG or not?
The Board has plenary authority and fiduciary responsibility to
invest LACERS funds pursuant to Los Angeles City Charter Section
1106. Investment decisions are not made by individual Members (in
contrast to the deferred compensation plan or a 401(k) plan for
example). Members may express their views on ESG matters during
the public comment period of LACERS Board and Investment
Committee meetings and/or email or provide written letters
expressing their concerns on these matters.
Can I opt out of ESG investing if I fundamentally
disagree with its claims on what “responsibility” and “ethical”
means? This is a politicization of my public pension investment
that I simply cannot endorse.
The Board has plenary authority and fiduciary responsibility to
invest LACERS funds pursuant to Los Angeles City Charter Section
1106. Investment decisions are not made by individual Members (in
contrast to the deferred compensation plan or a 401(k) plan for
example). Members may express their views on ESG matters during
the public comment period of LACERS Board and Investment
Committee meetings and/or email or provide written letters
expressing their concerns on these matters.
When was PRI hired? Were LACERS Members given an
opportunity to approve of this? The LACERS Board
approved becoming a signatory to PRI on April 9, 2019, after
receiving education from several ESG experts and practitioners in
the prior year; LACERS became an official signatory to PRI on
September 3, 2019.
The Board has plenary authority and fiduciary responsibility to
invest LACERS funds pursuant to Los Angeles City Charter Section
1106. Investment decisions are not made by individual Members (in
contrast to the deferred compensation plan or a 401(k) plan for
example). Members may express their views on ESG matters during
the public comment period of LACERS Board and Investment
Committee meetings and/or email or provide written letter
expressing their concerns on these matters.
How much does LACERS pay PRI?
The UK-based PRI organization’s annual signatory fee for a public
pension plan of LACERS’ size is approximately $12,000 per year,
depending on USD currency fluctuations with the British pound.
Does PRI’s investment principles result in a lower rate
of return?
A primary goal of LACERS’ ESG Program, which incorporates the six
Principles of Responsible Investment (PRI), is to consider
material ESG risk and return factors as part of the investment
process in order to achieve superior risk-adjusted returns and in
a manner consistent with LACERS’ fiduciary responsibilities to
its Members and beneficiaries. For further information,
please review Section XIV of the
LACERS Investment Policy.
Where are LACERS’ Emerging Managers listed, their
investments, and their performance under LACERS?
Please review
LACERS 2022 Annual Emerging Investment Manager Report.
I don’t understand the policy of setting a goal for
Emerging Investment Manager exposure at no less than 10%. Does
that mean the goal is to make LACERS portfolio a minimum of 10%
invested through the EM program? If so, what is the maximum
portfolio exposure through the EM program?
The policy goal is to have at least 10% of LACERS capital
invested with emerging managers. The policy does not define a
maximum portfolio exposure to emerging managers. For more
information, please review Section IX of the
LACERS Investment Policy.
Pension maturity carries risks that should be addressed
more clearly and not portrayed so positively. The paper “Pension
Plan Maturity: Why Big Plans Mean Big Risk” from the American
Academy of Actuaries makes points about mature plans having
greater sensitivity to gains and losses, negative shocks, and
underfunding. Mature plans may have difficulty reducing their
current level of investment risk and if the risks become
unaffordable, the plan may not be able to pay the promised
benefits.
LACERS agrees this is a worthwhile topic for discussion and while
the maturation of the System may be an expected progression,
LACERS does regularly evaluate maturation and other risk factors
including in annual Actuarial Valuations and Risk Reports. In
terms of ability to pay benefits, LACERS pension benefits are
funded through employee contributions, employer (City)
contributions, and returns on investments. They are funded on a
long-term basis, based on the expert advice of LACERS’ actuary
and investment professionals, to ensure that LACERS continues to
be able to deliver the benefits that retirees have been promised.
LACERS pension benefits are a general obligation of the City of
Los Angeles under the City Charter, which means that ultimately,
the City is financially responsible for making sure the benefits
that have been promised to retirees are paid.
Do you need to be retired to become a LACERS Well
Champion and help increase athletic activities?
Our Champion Program comprises retirees with shared interests,
therefore the program is designed to provide an opportunity for
retirees to share their hobbies and interests, such as athletic
activities. For more information or to discuss your interest in
the program, send an email to
lacerswell@lacers.org.
How do I enroll in a gym if I am with Anthem?
Silver&Fit information is available on our website.
How do I apply for a SilverSneaker Membership with LA
Fitness for an aquatic/exercise class? I am with Anthem Medicare
Preferred PPO. Currently using this establishment for therapy
that my doctor referred me to.
Silver&Fit information is available on our website.
What an awesome retiree panel! If a retiree is interested
in volunteering as a LACERS Well Champion, to whom at LACERS
should they reach out with those ideas?
You can contact us regarding becoming a LACERS Well Champion to
lead or assist with wellness program activities in your home area
or other locations. To inquire, please complete the
Request to Become
a Champion form. You may also send an email to lacerswell@lacers.org to let us know
your interest.
I understand that everyone’s retirement scenario is
unique. Is there a cheat sheet or checklist for the
common/general points?
Yes, we have a Retiree Decision
Sheet and a Frequently Asked Questions
webpage.
Does LACERS offer a program that lets Active employees
who are close to retirement get with LACERS Counselors to verify
that required documents are valid before 90 days prior to our
retirement date?
LACERS has Counselors of the Day who are ready to assist with
questions prior to retirement. Although you may submit your
documents ahead of time, there will be a complete review of all
required documents at the time of retirement. You may reach
out to LACERS at (800) 779-8328 and ask to speak to the Counselor
of the Day.
If I retire at age 55 with 30 years of service, but
my wife is younger by 15 years, does she have medical
coverage even though she is 40, and I’m 55?
Yes, A retired City employee enrolled in a LACERS health plan may
enroll their eligible dependent(s) which includes a spouse, into
their health plan as long as they remain eligible.
If I retire on my wife’s Health insurance, can I
reinstate LACERS health insurance once she retires?
If you retire and choose not to enroll in a LACERS medical/dental
plan, you may choose to enroll during our annual open enrollment
or if you experience a qualifying event.
Why is Kaiser’s vision plan allowance every 24 months
whereas other plans are every 12 months? Why can’t they be the
same, and have vision plan allowance for every 12
months?
The Kaiser and non-Kaiser vision plans both have frame allowances
every 24 months. As for the other vision benefits, every year
LACERS evaluates the health plan benefits for our Members and
this is certainly something to look into.
I am 62 with over 30 years of service.
After I retire, can my wife stay on my Anthem Blue Cross Health
Benefits? What will my health benefits be after I retire?
How much will they cost for my wife and me?
A retired City employee enrolled in a LACERS health plan may
enroll their eligible dependent(s) which includes a spouse, into
their health plan as long as they remain eligible. LACERS
requires all retired Members, eligible surviving spouses/domestic
partners and dependents must, upon turning 65 or becoming
eligible due to a disability, enroll in Medicare. Please visit
our website or contact LACERS for
more information. LACERS offers several medical plan options
depending on your Medicare status and where you live. LACERS
offers two dental plan options. Please review our Health Benefits Guide.
I am 62 years old and have been working with the City of
L.A. for a little over 30 years. My wife, who will be 61 years
old this June, has been on my health benefits. For the last 5
years, she has been receiving a monthly check from Social
Security Disability AND Long-Term Disability with New York
Life. For the last few years, she has been Eligible for
Health Benefits with Medicare Social Security Disability but has
been on my health benefits instead. After I retire, can she
continue to stay on my health benefits or does she have to take
Medicare Social Security Disability Health Benefits? She would
prefer to stay on my health benefits.
A retired City employee enrolled in a LACERS health plan may
enroll their eligible dependent(s) which includes a spouse, into
their health plan as long as they remain eligible. LACERS
requires all retired Members, eligible surviving spouses/domestic
partners and dependents must, upon turning 65 or becoming
eligible due to a disability, enroll in Medicare. Please visit
our website or contact LACERS for more
information. For questions specific to your individual situation,
please contact LACERS by email at lacers.health@lacers.org.
Are the benefits such as medical being reduced in the
next few years, or sooner?
LACERS has expanded and enhanced medical benefits for our
Members. There are no plans to reduce medical benefits to our
Members.
What is CMS?
CMS is the Centers for Medicare and Medicaid Services.
Do you think Medicare paying 80% of our health is in
danger or will decrease?
If Medicare is no longer available, then LACERS will administer
the health benefits according to the applicable rules at that
time. The benefits may be similar to those provided to Members
who are not yet eligible for Medicare. LACERS monitors all
legislative changes and will provide information when available.
Can you briefly explain if retirees would pay more in the
absence of Medicare benefits?
If Medicare benefits dissolves or are no longer offered to
retirees, the premiums or cost of healthcare would be expected to
be much higher than non-retirees due to the higher utilization of
healthcare benefits by retirees and our aged population.
I think the maximum health plan subsidy equals Kaiser
coverage only in the CA market. Is there any plan to widen the
benefit to all Kaiser market plans, regardless of
state/territory, and not require us to make up the difference in
cost between CA Kaiser and non-CA Kaiser, if there is
one?
Currently, LACERS only offers the Kaiser HMO plan for residents
of California. Members living outside of a LACERS HMO plan zip
code or outside of California but within the United States may be
interested in the Medical Premium Reimbursement Program (MPRP)
which could help you pay the premium of your chosen plan with
your LACERS medical subsidy if you live outside of a LACERS
California HMO service area, or outside of California and within
the U.S. and its territories. Please visit our MPRP
webpage or contact LACERS for more information.
