Recommended Budget Volume One.book - Chief Executive Office ...

Employee Benefits
Employee Benefits Budget Summary
EMPLOYEE BENEFITS BUDGET SUMMARY
Mission Statement
The County of Los Angeles provides its employees with a wide
range of fringe benefits. The appropriation for certain
non-payroll related employee benefits are centrally reflected in
this budget with expenditures distributed to County
departments or other agencies.
2011-12 Budget Message
The 2011-12 Recommended Budget reflects:
■ The retirement of Pension Obligation Bonds issued in 1994 to
eliminate the unfunded liability in the retirement system. This
results in costs savings of $372.1 million to the County.
■ An increase in employer retirement contributions primarily
due to the investment loss in the Los Angeles County
Employees Retirement Association (LACERA) portfolio in fiscal
year (FY) 2008-09. Since then LACERA investment earnings
have exceeded the actuarial assumed rate of return and are
EMPLOYEE BENEFITS
Budget Summaries
FY 2009-10 FY 2010-11 FY 2010-11 FY 2011-12 FY 2011-12 CHANGE FROM
CLASSIFICATION ACTUAL ESTIMATED BUDGET REQUESTED RECOMMENDED BUDGET
FINANCING USES
SALARIES & EMPLOYEE BENEFITS $2,601,528,621.15 $ 701,733,000 $ 734,880,000 $ 374,519,000 $ 374,519,000 $ (360,361,000)
S & EB EXPENDITURE DISTRIBUTION (2,607,724,385.62) (694,233,000) (733,880,000) (362,770,000) (362,770,000) 371,110,000
TOTAL S & E B (6,195,764.47) 7,500,000 1,000,000 11,749,000 11,749,000 10,749,000
GROSS TOTAL $ (6,195,764.47) $ 7,500,000 $ 1,000,000 $ 11,749,000 $ 11,749,000 $ 10,749,000
NET TOTAL $ (6,195,764.47) $ 7,500,000 $ 1,000,000 $ 11,749,000 $ 11,749,000 $ 10,749,000
REVENUE 414,829.69 400,000 1,000,000 300,000 300,000 (700,000)
NET COUNTY COST $ (6,610,594.16) $ 7,100,000 $ 0 $ 11,449,000 $ 11,449,000 $ 11,449,000
FUND FUNCTION ACTIVITY
GENERAL FUND GENERAL OTHER GENERAL
currently on track to do so for FY 2010-11. LACERA’s funding
policy calls for asset gains and losses to be smoothed over a
five-year period. Due to delays in obtaining the FY 2011-12
employer retirement contribution rates, the entire net County
cost portion of the increase is being budgeted in the
Employee Benefits budget unit at this time. During the Final
Changes Budget phase, increases in employer
■
retirement contributions will be distributed to various County
departments.
A $36.1 million health premium reserve used as a budget
shortfall solution. The reserve will be allocated to the
appropriate operating department budgets during the Final
Changes Budget phase.
■ An increase in Unemployment Insurance (UI) due to
anticipated increase in UI cost claims.
FY 2011-12 Recommended Budget Volume One 21.1 County of Los Angeles