CITY BEHIND IN PENSION FUNDS.Byline: James Nash Staff Writer The city of Los Angeles
v. Past tense and past participle of underpay. underpaid Adjective not paid as much as the job deserves underpaid adj → its employees' pension fund by more than $40 million in the past two years - money that taxpayers will have to reimburse, officials said Wednesday. Officials blamed the underpayment on a pension actuary and said they might need to pay $3 million a year for the next 15 years to compensate for shortchanging the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. City Employees Retirement System. Employee pensions will not be affected, officials said. City Administrative Officer William Fujioka told City Council members that the city would absorb the additional cost from its general fund, which is also used to pay for police and other services. ``We're not trying to minimize that because $3 million - we know what that would buy in terms of supporting programs and city services The examples and perspective in this article or section may represent an unduly geographically limited view of the subject. Please [ improve this article] or discuss the issue on the talk page. ,'' Fujioka said. Officials in the city's retirement system discovered that an error by the fund's actuary had caused the city to underpay the retirement fund by $30.2 million in fiscal 2003-04 and $13.4 million during the current fiscal year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report by Robert Aguallo Jr., the pension system's general manager. The actuary - Gabriel, Roeder, Smith & Co. - no longer works for the city retirement system, Aguallo said. The City Attorney's Office is looking into whether to take action against the actuary. Councilwoman Cindy Miscikowski Cindy Miscikowski represented the 11th District on the Los Angeles City Council for two full terms from 1997 through 2005. Previously, she was an aide to Councilman Marvin Braude and the Executive Director of the Skitball Cultural Center in its beginning stages. said it was ``rather horrible'' to learn that the city faced a deficit of millions of dollars to its pension system, but she said she was relieved that the burden could be spread out over 15 years. ``The first implication was that our general fund might be the first source to plug it,'' Miscikowski said. The city's general fund has suffered from cuts in state funding and stagnation Stagnation A period of little or no growth in the economy. Economic growth of less than 2-3% is considered stagnation. Sometimes used to describe low trading volume or inactive trading in securities. Notes: A good example of stagnation was the U.S. economy in the 1970s. in local revenues. The 2004-05 budget was rescued by a $60 million ``one-time'' transfer to the fund from the Department of Water and Power. James Nash, (213) 978-0390 james.nash(at)dailynews.com |
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