Upload
dangdien
View
222
Download
4
Embed Size (px)
Citation preview
DEPARTMENT OF FIRE AND POLICE PENSIONS 701 E. 3rd Street, Suite 200
Los Angeles, CA 90013
(213) 279-3000
REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
DATE: MARCH 16, 2017 ITEM: B.6.a FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: FEBRUARY 2017 MONTHLY REPORT AND UPDATE
THIS REPORT IS PROVIDED FOR INFORMATIONAL PURPOSES
DISCUSSION The February 2017 Monthly Report includes the following notable items:
1) Airport Police Transfer to Tier 6 and Technical Amendments to Administrative Code – In
anticipation that the Airport Safety Officers may transfer to our Plan as early as April, staff met with the Controller’s Office and the Information Technology Agency staff on February 16, 2017 to discuss the requirements needed in the City’s payroll system (PaySR). On February 22, 2017, the ordinance was approved by the City Council at its first reading and the second reading is scheduled for March 24, 2017. LACERS and LAFPP staff are preparing for a counseling session scheduled for March 29, 2017 for the Airport Safety Officers. There is currently one Airport Safety Officer participating in the Fire Department’s Drill Tower.
2) Proposed Financial Counseling Program – On April 6, 2017, staff will present to the Board the additional information that was requested on Four Square Financial Literacy Partners.
3) Pension Administration System Replacement – The issues and discrepancies found during the
prior build testing are being corrected. Staff will continue to test and validate these fixes. The issue concerning the method of calculating service credit in a leap year has been resolved. However, the initial “Go Live” date of the project has been pushed back from January 2018 to April 2018. To prevent similar issues from negatively impacting the project, Xerox and LAFPP staff will closely monitor the project requirements.
4) 2017 Fire Department Employee Member Board Election – The Notice of Intent packets have
been mailed by the Office of the City Clerk to eligible active Fire Department employee members to qualify as candidates for the ballot. The deadline for candidates to submit the Notice of Intent packets is March 17, 2017. Thereafter, the Office of the City Clerk will begin preparations to mail ballots to eligible voters.
5) Private Equity - The following private equity investments have closed since the last meeting
announcement:
On October 20, 2016, the Board, in closed session pursuant to Government Code Section 54956.81, approved a commitment of up to $25 million in the following alternative investment:
Board Report Page 2 March 16, 2017
Resource Capital Fund VII, L.P. and the investment closed on February 10, 2017. Board vote: Ayes 7, Nays 0
The following searches and firms are within the Marketing Cessation Period Policy*:
Vendor / Contract
Contract Start Date
Contract Expiration Date
Market Cessation Start Date
Domestic Equity (New search) TBD TBD 12/15/16 Real Estate Investment Trust Manager (Active) (New search) TBD TBD 12/01/16 FIS Group, Inc. (International Manager of Emerging Managers) 07/01/14 06/30/17 04/01/17 MacKay Shields, LLC (Fixed Income – High Yield Bond) 07/01/14 06/30/17 04/01/17
*Marketing Cessation: In accordance with Section 9.0 of the Investment Policy, from the time the search begins with the Board’s approval of the minimum criteria for the search until the search ends with the selection of the firm(s) to receive contract(s), all direct marketing contact with firms that meet the search criteria will be limited to meetings with the Consultant, information sent to the Consultant or Department, questions about the search directed to the Staff or Consultant, one meeting at the Department’s office with Staff and any site visits. The Board members, Department Staff or Consultant will accept no entertainment or gifts of any kind from any firm qualifying for the search. This policy does not prohibit contact with potential interview candidates at group social events, educational seminars, conferences, or charitable events so long as there is no direct marketing. During the three months prior to the renewal of a contract with a firm currently under contract, the Board Members, Department Staff and Consultant will accept no entertainment or gifts from that firm until the contract has been renewed or terminated by the Board. Firms who currently have contracts with LAFPP are allowed to continue contact related to the existing contract with Staff and the Consultant. Attachment
STATUS REPORT OF BOARD ASSIGNMENTS TO STAFF
03/16/17
I:Executive/Board Assignments/Board Assign to Staff 03/16/17
MEETING
DATE
ASSIGNMENT
STAFF PERSON
DATE DUE
TO THE BOARD
STATUS
04/03/14
FORMERLY GOVERNANCE COMMITTEE
HEK Audit recommendations: 2 recommendations assigned to the
Governance Committee.
William
Raggio (1)
TBD
The Board approved the status of the two recommendations on October 2, 2014, leaving one in Progress. The one remaining active recommendation marked “In Progress” concerns the process that will be invoked when a potential conflict of interest arises with the City Attorney. This is being discussed by the Ad Hoc Committee – City Attorney on Engagement of Outside Counsel. The date this is expected to be completed and presented to the Board is contingent upon the work of the Ad Hoc Committee on Outside Counsel.
A
EQUITIES STOCKS BONDS CASH TOTAL ALLOC. PRIVATE EQUITY BONDS CASH TOTAL ALLOC.
Alliance Capital (S&P 500 Index) 1,724.5 - 3.6 1,728.2 Abbott Capital 45.6 - - 45.6
Alliance Capital (Russell 1000 Value Index) 0.0 - 0.2 0.2 Hamilton Lane 9.1 - - 9.1
AllianceBernstein Systematic Value 441.2 - 0.9 442.1 PCA 36.7 - - 36.7
Alliance Capital (Russell 1000 Growth Index) 1,077.3 - 5.1 1,082.3 Fairview Capital 1.2 - - 1.2
Chicago Equity (Enh. Index-Core) 0.4 - 0.0 0.4 Portfolio Advisors 1,293.4 - - 1,293.4
LA Capital (Enh. Index-Growth) 324.8 - 1.0 325.8 Aldus Equity 232.9 - - 232.9
NTI S&P 500 Equal Weight 753.1 0.3 753.4 Stepstone Group 135.7 - - 135.7
NTI Stoxx USA 900 451.5 0.3 451.8 TOTAL PRIVATE EQUITY MGRS (12%) 1,754.6 - - 1,754.6 8.76%
PIMCO (Enh. Index-Value) 2.8 - 0.0 2.8 Target Differential (3.24)% (648.9)
Robeco (Value) 321.3 - 6.4 327.7
OakBrook Investments (Large Cap-Core) 30.7 - 0.4 31.1 REAL ESTATERedwood Investments (Large Cap-Core) 28.0 - 1.3 29.3 Alliance Capital Global REIT 111.3 - 0.4 111.7
Terminated Domestic Equity Managers 15.2 - 0.1 15.3 Principal Global REIT 170.6 - 1.1 171.7
Core Equity Managers (23%) 5,170.8 - 19.7 5,190.6 25.92% Principal U.S. REIT 340.0 - 3.7 343.7
Target Differential 2.92% 584.0 Terminated REIT Managers 0.0 - - 0.0
REIT Managers (3.0%) 622.0 - 5.2 627.2 3.13%
Frontier Capital Mgt (Growth) 624.8 - 17.7 642.5 Target Differential 0.13% 26.3
Daruma (Value) 553.8 - 30.9 584.7 REAL ESTATE COMMINGLED FUNDS SUMMARY
Channing Capital Mgt. (Small Cap.) 64.3 - 1.7 66.0 Total Pooled Funds 819.0 - - 819.0 4.09%
Phocas Financial (Small Cap.) 61.3 - 2.5 63.7 REAL ESTATE SEPARATE ACCT. SUMMARY BY MANAGER
Granite Investment Partners (Micro Cap) 26.5 - 0.4 26.9 Heitman 218.5 - - 218.5
Attucks (Mgr of Emerging Mgrs) / New Accts. - - - - Sentinel 305.8 - - 305.8
Small Cap. Equity Mgrs (6%) 1,330.7 - 53.2 1,383.9 6.91% Real Estate Equity Mgrs 524.4 - - 524.4 2.62%
Target Differential 0.91% 182.2 TOTAL REAL ESTATE (10%) 1,965.3 - 5.2 1,970.5 9.84%
Target Differential (0.16)% (32.3)
Brandes (Value) 881.4 - 69.8 951.2 COMMODITIESFisher (Core) 437.6 - 6.2 443.7 Alliance (Commodities, Public Equity) 324.6 - 0.4 325.1
Blackrock (Core Passive) 685.5 - 1.1 686.6 Gresham Invest. Mgmt. (Commodities, Active) 87.8 - 7.3 95.2
Baille Gifford (Growth) 554.8 - 7.5 562.4 Goldman Sachs (Commodities, Enhanced Index) 100.6 - - 100.6
Boston Common (ESG) 27.4 - 0.5 27.9 Kleinwort Benson (Commodities, Public Equity) 93.4 - 2.8 96.1
Northern Trust (Int'l Small Cap Index) 351.7 - 2.5 354.1 Mellon Capital (Commodities, Public Equity) 88.7 - 0.8 89.5
FIS (Mgr of Emerging Mgrs) International 81.0 - 2.2 83.2 PA (Commodities, Private Equity) 91.7 - - 91.7
Terminated Int'l Equity Managers 0.0 - 0.0 0.0 TOTAL COMMODITIES (5.0%) 786.9 - 11.3 798.2 3.99%
Int'l Equity Mgrs (16%) 3,019.4 - 89.8 3,109.2 15.52% Target Differential (1.01)% (214.6)
Target Differential (0.48)% (95.4)
Harding Loevner 357.2 - 7.9 365.1 CASHDimensional Fund Advisors 455.3 - 1.7 457.1 HOUSE ACCOUNTS
Terminated Int'l Emerg. Mkts. Mgrs. 0.0 - 0.0 0.0 Tier 1 (Article 17) - - 2.3 2.3
Int'l Emerg. Mkts Mgrs (5.0%) 812.5 - 9.7 822.2 4.11% Tier 2 (Article 18) - - 577.4 577.4
Target Differential (0.89)% (179.3) Tier 3 (Article 35) - - 28.8 28.8
TOTAL EQUITIES MGRS (50.0%) 10,333.5 - 172.4 10,505.9 52.45% Tier 4 (New) - - 12.9 12.9
Int'l Tax Reclaims - - 0.3 0.3 Tier 5 (New) - - 163.7 163.7
FIXED INCOME Tier 6 (New) - - 12.4 12.4
Northern Trust (Fixed Income Index) - 667.8 0.9 668.7 CASH SUMMARY
Reams Asset Mgmt. (Opportunistic) - 689.7 - 689.7 Unallocated Cash Reserve (1%) - - 797.5 797.5 3.98%
LM Capital (Opportunistic) - 323.1 9.9 333.0 Target Differential 2.98% 597.2
GIA Partners (Opportunistic) - 26.2 0.5 26.7 Transition - - 0.0 0.0
SemperCapital Mgt. - 26.4 0.6 27.0
Loomis Sayles (Long Duration) - 624.0 23.5 647.6 PRIVATE REAL
CA Comm. Mort. Fund - 0.7 - 0.7 EQUITY STOCKS BONDS ESTATE CASH TOTAL
Bridgewater (TIPS) - 353.7 - 353.7 ACTUAL ASSET MIX
Reams Asset Mgmt. (Passive TIPS) - 473.4 0.4 473.9 Current Month 786.9 1,754.6 10,335.2 4,144.3 1,965.3 1,042.4 20,028.6
Bridgewater Pure Alpha - 71.3 - 71.3 3.93% 8.76% 51.60% 20.69% 9.81% 5.20% 100.00%
Core Bond Mgrs (17.0%) - 3,256.4 35.9 3,292.3 16.44% Last Month 792.7 1,756.8 10,234.8 4,126.1 1,936.8 883.6 19,730.8
Target Differential (0.56)% (112.6) % Change -0.74% -0.13% 0.98% 0.44% 1.47% 17.98% 1.51%
MacKay Shields 1.7 509.3 19.7 530.7
High Yield Bond Mgrs (3.0%) 1.7 509.3 19.7 530.7 2.65%
Target Differential (0.35)% (70.2)
Reams Asset Mgmt. (Unconstrained) - 189.9 - 189.9
Payden & Rygel (Unconstrained) 188.7 - 188.7
Unconstrained Fixed Income (2.0%) 378.6 - 378.6 1.89%Target Differential (0.11)% (22.0)
TOTAL FIXED INCOME MGRS (22.0%) 1.7 4,144.3 55.6 4,201.6 20.98%
Subtotals & totals may not sum up exactly due to rounding. Note: City Pension Contribution received on 7/15/16Note: Data is unauditedDollars expressed in Millions.
COMMODITIES
Portfolio as of February 28, 2017
TOTAL FUND
STOCKS / EQUITY / RE
Portfolio as of January 29, 2016
Venture Capital Buy-out Special Situations Percentage
Total $848,202,000 23% $1,787,218,000 49% $987,536,000 27% 100.00%
Commitment Total $3,622,956,000
Total Commitment Contributions Remaining Commitment Percent Funded
Abbott $282,351,000 $272,553,000 $9,798,000 96.53%
Hamilton Lane $200,852,000 $193,398,000 $7,454,000 96.29%
Portfolio Advisors Legacy $265,205,000 $254,458,000 $10,747,000 95.95%
Portfolio Advisors Current $1,999,276,000 $997,681,000 $1,001,595,000 49.90%
PCA $193,197,000 $180,919,000 $12,278,000 93.64%
Stepstone Group $197,451,000 $178,051,000 $19,400,000 90.17%
Aldus Equity $484,625,000 $438,657,000 $45,968,000 90.51%
Total $3,622,957,000 $2,515,717,000 $1,107,240,000 69.44%
Unfunded Commitment $1,107,240,000
Source: BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
Data as of June 30, 2016
Data is based only on current/active funds whaich are funds that have remailing commitment or residual value.
Private Equity Commitment Summary
Private Equity Funding Summary
Total Fund Portfolio Allocation
25.9
2%
6.9
1%
15.5
2%
4.1
1%
16.4
4%
2.6
5%
1.8
9% 3
.98%
9.8
4%
8.7
6%
3.9
9%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Core Equity (23%) Small Cap. Equity (6%) Int'l Equity (16%) Int'l Emerg. Mkts (5.0%) Core Bonds Iincluding
TIPS) (17.0%)
High Yield Bonds (3%) Unconstrained Fixed
Income (2.0%)
Cash (1.0%) Total RE (Including REITS)
(10.0%)
Private Equity (12.0%) Commodities Energy
(5.0%)
Actual Allocation, Target Allocation in parenthesisOver-allocated (Blue), Under-allocated (Red)
6.23.8
*Board approved ranges on 6/16/16
1.8
*Board approved ranges on
7.3
4.73.6
6.4
18.0
16.0
2.61.0
4.0
8.5
11.5
9.0
15.0
25.8
3.4
20.2
18.4
13.6
2.2
Portfolio as of January 29, 2016
COMMINGLED FUNDS EQUITY POOLED CASH TOTAL ALLOC.
ABR Chesapeake Fund III NA 9.4 - 9.4
AEW Partners V NA 0.2 - 0.2
AEW Value Investors II NA 1.4 - 1.4
Almanac Securities Realty VII NA 20.9 - 20.9
Asana Partners NA 4.3 - 4.3
Berkshire Multifamily Income Realty Fund NA 35.2 - 35.2
Buchanan Fund IV NA 11.6 - 11.6
Calif Smart Growth IV NA 12.6 - 12.6
Capri Urban Investors NA 13.9 - 13.9
CIM Real Estate Fund III NA 27.0 - 27.0
CIM Urban REIT, LLC NA 32.1 - 32.1
CityView LA Urban Land Fund NA 3.2 - 3.2
Clarion Lion NA 94.1 - 94.1
Colony VIII NA 3.0 - 3.0
CPI Capital Europe (A NA 1.4 - 1.4
Forum Asian Realty II NA 1.1 - 1.1
Gerrity Retail Fund NA 23.2 - 23.2
Genesis Workforce Fund II NA 0.1 - 0.1
Hampshire Partners VI NA 0.4 - 0.4
Heitman Value Partners II NA 1.1 - 1.1
Heitman American Realty Trust (HART) NA 75.1 - 75.1
Jamestown Premier NA 85.6 - 85.6
LaSalle Asia Opp. II NA 0.1 - 0.1
Legg Mason Chesapeake RE NA 0.1 - 0.1
Legg Mason II NA 5.5 - 5.5
Metlife Core Property NA 88.5 - 88.5
Noble Hospitality NA 5.6 - 5.6
Oaktree Capital RE Opp. III NA 0.8 - 0.8
Praedium Fund VII NA 0.3 - 0.3
Principal Green I NA 0.3 - 0.3
Prudential PRISA NA 83.1 - 83.1
Prudential RE Fund II NA 0.1 - 0.1
Rothschild Five Arrows Realty V (Almanac) NA 5.9 - 5.9
Savanna Real Estate Fund III NA 41.6 - 41.6
Starwood Distressed Opp IX NA 21.6 - 21.6
Standard Life Investments NA 18.9 - 18.9
Standard Life Investments Euro RE Club II NA 33.4 - 33.4
Stockbridge RE Fund II NA 8.3 - 8.3
Unico Partners I NA 39.9 - 39.9
Urdang Value-Added Fund II (CenterSquare) NA 3.9 - 3.9
Value Enhancement IV (Ares) NA 0.0 - 0.0
Value Enhancement V (Ares) NA 4.3 - 4.3
Total 819.0 - 819.0 4.09%
SEPARATE ACCOUNT PROPERTIES EQUITY POOLED CASH TOTAL ALLOC.
Heitman - Galleria Palms Apts. 39.3 NA - 39.3
Heitman - 121 W. Chestnut 69.8 NA - 69.8
Heitman - Palm Valley 0.0 NA - 0.0
Heitman - Woodland Plaza 35.8 NA - 35.8
Heitman - Twin Creeks Village 32.5 NA - 32.5
Heitman - Sea Isle, Inc. 41.1 NA - 41.1
Sentinel - Corridor Park Pointe 6.8 NA - 6.8
Sentinel - Riverplace 28.3 NA - 28.3
Sentinel - Walmart Building at Water Ridge 17.4 NA - 17.4
Sentinel - Windward Place Apts. 23.4 NA - 23.4
Sentinel - Jefferson Town Center Apts 44.7 NA - 44.7
Sentinel - Shoppes @ Broad Street 0.0 NA - 0.0
Sentinel - St. Louis Industrial 45.9 NA - 45.9
Sentinel - NorthPointe Exec. Park 37.3 NA - 37.3
Sentinel - Aerial Center Exec. Park 29.6 NA - 29.6
Sentinel (Urdang) - Shadeland Station 48.5 NA - 48.5
Sentinel (Urdang) - Exelon Building 23.9 NA - 23.9
Neptune Building 0.0 NA 0.0
Real Estate Managers Total Committed
Heitman 218.5
Sentinel 233.4
Sentinel (Urdang) 72.4
Total 524.4 2.62%
Real Estate Summary
Manager 1-month 3-month 1-year 3-years 5-years FYTDTotal Fund 1.87 % 4.81 % 16.09 % 6.24 % 8.67 % 8.20 %S & P 500 Index 3.97 % 8.04 % 24.98 % 10.63 % 14.01 % 14.23 %
Total Equity 2.88 % 7.37 % 23.60 % 6.15 % 10.38 % 14.24 %S & P 500 Index 3.97 % 8.04 % 24.98 % 10.63 % 14.01 % 14.23 %
Total Domestic Equity 3.63 % 6.99 % 25.30 % 8.77 % 13.47 % 15.45 %Russell 3000 Index 3.72 % 7.73 % 26.29 % 9.92 % 13.85 % 14.96 %
Total Large Cap Equity 3.90 % 7.64 % 24.34 % 10.13 % 13.97 % 14.28 %S & P 500 Index 3.97 % 8.04 % 24.98 % 10.63 % 14.01 % 14.23 %
Total Small Cap 2.69 % 4.72 % 29.56 % 3.59 % 11.64 % 20.59 %Russell 2000 Index 1.93 % 5.20 % 36.11 % 6.93 % 12.89 % 21.45 %
Total International Equity 1.63 % 8.04 % 20.80 % 1.88 % 5.25 % 12.24 %MSCI ACWI ex-US 1.61 % 7.95 % 19.88 % 0.27 % 4.02 % 11.24 %
Total International Developed Markets 1.17 % 7.53 % 18.41 % 1.48 % 6.24 % 12.07 %MSCI ACWI ex-US 1.61 % 7.95 % 19.88 % 0.27 % 4.02 % 11.24 %
Total International Emerging Markets 3.27 % 9.95 % 30.91 % 3.43 % 1.35 % 13.32 %MSCI Emerging Markets Index 3.07 % 9.03 % 29.94 % 1.73 % -0.02 % 13.82 %
Total Fixed Income 0.88 % 1.90 % 6.42 % 3.75 % 3.48 % 0.75 %Barclays Universal 0.77 % 1.43 % 3.20 % 2.97 % 2.74 % -0.57 %
Total Core Fixed Income 1.00 % 1.67 % 4.33 % 3.77 % 3.54 % -1.32 %Barclays Aggregate 0.67 % 1.01 % 1.42 % 2.64 % 2.24 % -1.68 %
Total High Yield 1.15 % 4.23 % 21.56 % 6.30 % 7.54 % 10.46 %LAFPP HY Benchmark1 1.56 % 4.95 % 22.30 % 4.79 % 6.87 % 10.61 %
Total REITs 3.90 % 7.97 % 14.34 % 9.57 % 10.17 % -0.70 %LAFPP REIT Benchmark2 3.34 % 7.19 % 14.18 % 9.04 % 9.23 % -0.80 %
Total Commodities 0.04 % 4.03 % 24.83 % -1.98 % N/A 7.34 %Bloomberg Commodities Index TR 0.21 % 2.15 % 15.95 % -13.02 % N/A -0.97 %
Footnote:1 LAFPP HY Benchmark: CS HY Index thru 12/31/11 & BofA ML US HY Master II Cnst Index thereafter.
2 LAFPP REIT Benchmark: Dow Jones US Select RE Securities Index thru 12/31/13, 50% FTSE EPRA/NAREIT Global RE Index & 50% Dow Jones US Select RE Securities Index thereafter.
Preliminary Return Information as of February 28, 2017
PENSIONS DIVISION
(Data through February 28, 2017)
DISABILITY PENSIONS
*Claims filed include the following: Disability, Active Member Death, Dependent Child/Parent.
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2015 8 3 5 4 3 3 6 2 3 3 5 1
2016 0 1 5 4 1 3 3 4 1 7 2 2
2017 1 5
0
1
2
3
4
5
6
7
8
9
10
Total Claims Filed*
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2015 3 2 0 1 0 1 1 2 0 2 4 6
2016 1 0 4 2 2 2 1 1 0 4 0 0
2017 2 0
0
1
2
3
4
5
6
7
Withdrawn Claims
46 33 6
PENSIONS DIVISION
*Claims include Surviving Spouse/Domestic Partner, Minor Child, Dependent Child/Parent.
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2015 79 78 81 82 85 86 90 89 87 85 85 79
2016 75 72 73 69 68 66 65 67 67 69 69 71
2017 69 74
6065707580859095
Total Claims Pending - All
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2015 72 71 73 73 75 76 79 77 75 74 74 68
2016 62 59 60 60 59 57 55 56 56 54 54 56
2017 56 57
5257626772778287
Total Claims Pending - Disability PensionsNew Applications and Review
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2015 7 7 8 9 10 10 11 12 12 11 11 11
2016 13 13 13 9 9 9 10 11 11 15 15 15
2017 13 17
579
1113151719
Total Claims Pending - Active Member Deaths*
PENSIONS DIVISION
*Claims include the following: Disability, Active Member Death, Dependent Child/Parent.
*Claims include the following: Disability, Active Member Death, Dependent Child/Parent. Months with zero (0) indicate no claims presented to the Board that month.
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2015 4 2 2 3 0 2 1 3 6 3 5 4
2016 3 4 1 8 0 4 3 3 3 1 3 0
2017 1 1
0
1
2
3
4
5
6
7
8
9
Total Claims Presented to the Board*
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2015 6 9.4 12 11.5 0 12.6 13 8.8 17.3 12.9 14.5 19.9
2016 26.1 16 1.4 8.8 0 17.4 13 7 6 17.9 15.6 0
2017 38.3 0
0
5
10
15
20
25
30
35
40
Avg. Processing Time for Claims Presented to the Board*
35 33 2
PENSIONS DIVISION
DROP ENTRIES/EXITS
DROP PARTICIPATION
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD2015 16 43 46 55 37 34 48 12 19 18 7 9 3442016 19 69 23 24 30 23 26 16 19 12 6 5 2722017 3 85 88
0102030405060708090
DROP Entries
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD2015 42 53 31 29 31 24 18 24 16 8 2 17 2952016 46 41 27 39 46 98 65 3 13 6 2 2 3882017 40 30 70Projected
2017 7 15 10 1 16 9
0
20
40
60
80
100DROP Exits
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2015 1,285 1,275 1,292 1,322 1,332 1,342 1,378 1,369 1,375 1,398 1,404 1,3972016 1,370 1,403 1,399 1,384 1,370 1,294 1,255 1,268 1,278 1,284 1,287 1,2892017 1,252 1,307
1,1501,2001,2501,3001,3501,4001,450
DROP Participants
PENSIONS DIVISION
SERVICE PENSIONS
Current Month
Fiscal Year To Date
12 Month Moving Avg.
Service Pensions by Effective Date 7 33 4
SURVIVORSHIP PENSIONS Current
Month Fiscal Year
To Date 12 Month
Moving Avg. Surviving Spouse/Domestic Partner Pension Applications Processed 17 117 15 Survivor Benefit Purchase Program 1 3 1 Total Surviving Spouse/DP Applications Processed and Survivor Benefit Purchase Program Granted 18 120
ACTIVE MEMBER SERVICES
Refund of Contributions (Number Leaving Without Vesting)
Current Month
Fiscal Year To Date
12 Month Moving Avg.
Fire 0 3 1 Police 2 42 6 Harbor 0 0 0 Completed Basic Training Purchases Fire 15 51 7 Police 46 229 32 Harbor 0 0 0 Public Service Purchases (PSP) Completed Purchases
0
2
1
Avg. Years of Service (YOS) Purchased N/A 2.25 2 Avg. Cost per YOS Purchased N/A $47,157 $50,430
MEDICAL & DENTAL TRANSACTIONS February 2017 (PPE February 28, 2017)
Current Month* Fiscal YTD* Last 12 Mos* Total Subsidies Paid $9,625,579 $75,401,753 $111,223,149 Total Medicare Part B Reimbursements Paid $904,108 $6,506,648 $9,702,852 *Includes Quarterly HIPR Payment(s)
PENSIONS DIVISION
OUTREACH ACTIVITIES
Date Type of Outreach Number of Participants Tier
February 8, 2017 Financial Planning Education Seminar: Late Career – Grace Simons Lodge 51 5
February 9, 2017 Information Table: LAPPL Outreach –Newton Division 24 Multiple
February 10, 2017 Recruit Talk: LAPD Graduates – Westchester ARTC 33 6
February 23, 2017 Information Table: LAPPL Outreach –Metro Division 64 Multiple
February 24, 2017 Recruit Talk: LAFD Graduates – Drill Tower 81 44 6
Upcoming Events
March 1, 2017 Financial Planning Education Seminar: DROP Exit – Grace Simons Lodge TBD Multiple
March 8, 2017 Financial Planning Education Seminar: Late Career – Grace Simons Lodge TBD 5
March 9, 2017 Information Table: LAPPL Outreach – 77th St. Division TBD Multiple
March 13, 2017 Benefits Presentation: Fire Station 88 TBD Multiple March 15, 2017 Information Table: Fire Station 5 TBD Multiple
March 16, 2017 Deferred Compensation / DROP Meeting TBD Multiple
March 22, 2017 Financial Planning Education Seminar: DROP Exit – Grace Simons Lodge TBD Multiple
March 30, 2017 Information Table: LAPPL Outreach – Valley Traffic Division TBD Multiple
Outreach Activity Totals Current Month Fiscal Year to Date
Members Reached 216 1,637 -# of Recruit Talks 2 11 -# of Financial Planning Education Seminars 1 10 -# of Other Outreach Events 2 21
Note: The number of participants for “Information Table” events is an estimate. Staff is available to answer questions, check personal information and collect forms at these events.
NEW PROJECTS
PENSION PERSPECTIVES – RETIRED/DROP MEMBERS
Staff has begun drafting the spring issue of the newsletter. All LAFPP staff have been asked to submit proposed topics and draft articles. The target distribution date is June 2017.
PENSIONS DIVISION
UPDATED PROJECTS
TECHNICAL AMENDMENTS TO ADMINISTRATIVE CODE In conjunction with the draft ordinance that will establish the dates and procedures for the transfer of Airport Police employees from LACERS to LAFPP, staff and the City Attorney have also worked together to prepare some technical amendments to the Administrative Code to clarify plan language/provisions and provide greater flexibility for members. The amendments will pertain to the following:
• Ensure that the inclusion of Airport Police in Tier 6 will not trigger the elimination of the 1% payment by the City of Tier 5 employee contributions as provided in Charter Section 1222.
• Late Tier 5 transfer election forms shall not be accepted. • Inclusion of Airport Police in the DROP plan provisions. • Clarify that the Board may contract with third-party administrators that provide or
contract for suitable health plans, including health care exchanges. • Remove references to special MOU health subsidies (this language is no longer
relevant as any impacted members are now eligible for a regular subsidy). • Clarify that retired members are eligible to be reimbursed for the basic/standard
Medicare Part B premium only (in accordance with current LAFPP practices). • Provide additional flexibility for pensioners who participate in the Health Insurance
Premium Reimbursement Program (i.e., retired members can be either the primary subscriber or a dependent on the plan for which they seek reimbursement; removed the requirement that members must live outside an HMO service area to provide more options for members who do not have access to an affordable PPO plan or those currently enrolled in LACERS’ plans).
It is also noted that LACERS has requested an amendment to their health plan provisions to state that effective December 31, 2017, any former employee retired from LAFPP shall be ineligible for enrollment in any LACERS health plans unless such former employee was enrolled in a plan administered by the Personnel Department on December 31, 1999. [UPDATE: The City Council approved the ordinance at its first reading on February 22. The second reading of the ordinance is scheduled for March 24.]
PENSION PERSPECTIVES – ACTIVE/DROP MEMBERS Staff has begun drafting the spring issue of the newsletter. All LAFPP staff have been asked to submit proposed topics and draft articles. The target distribution date is late March 2017. The proposed topics include:
• Pension benefit information in MyLAFPP • Requests for Contribution Letters or Divorce Calculation Letters • Pension contributions while at the Fire Drill Tower or Police Academy • DROP Program - Entering and Exiting • LAFPP’s funding status and other 2016 valuation results
[UPDATE: Section Managers and Executive staff have reviewed the newsletter. The newsletter is currently being reviewed by the General Manager. Thereafter, the newsletter will be forwarded to the graphics designer. The target distribution is scheduled in mid-March.]
PENSIONS DIVISION
AIRPORT POLICE TRANSFER TO TIER 6 Currently, sworn personnel of the Airport Department (“Airport Police”) are members of the Los Angeles City Employees’ Retirement System (LACERS). During labor negotiations with the Airport Police bargaining units, the City agreed to place on the November 8, 2016 State General Election ballot a Charter amendment that proposes certain retirement benefit enhancements for this group. Staff has worked with the City Attorney’s Office, outside tax counsel, CAO, and LACERS in reviewing the draft Charter amendment which would: 1) Enroll new Airport Police into Tier 6; 2) Allow current Airport Police to transfer into Tier 6 from LACERS at their own expense; and 3) Permit new Airport Police Chiefs to transfer into LACERS rather than participate in Tier 6. Additionally, staff worked with the Plan actuary to commission a study demonstrating the impact of allowing Airport Police to participate in Tier 6. On June 16, 2016, the Plan actuary completed the cost study showing the increases in normal cost rates for Airport Police Officers to enter Tier 6, utilizing a simplified method to estimate the cost differences. A follow-up study using a detailed methodology was completed on July 7. The proposed ballot measure was approved by City Council on July 1. On October 4, 2016, Staff met with representatives from the CAO’s office, Airports, LACERS, and City Attorney’s office to discuss the possible need to move up the transfer counseling for Airport Safety Officers currently assigned to Ontario International Airport. This group of approximately 30 employees is expected to attend the Fire Drill Tower in groups of 10 and their transfer counseling would need to occur in March 2017. The remaining 500 Airport Police would be counseled in groups later in 2017. The November 2016 ballot measure was approved by voters. On December 2, 2016, the County certified the election results and on December 13, 2016, the City Council adopted the results. On January 12 and 31, 2017, LAFPP Staff met to discuss the payroll and pension administration system changes needed for Airport Police transferring to our plan. On January 31, 2017, the City Council instructed the City Attorney to prepare and present all ordinances necessary to implement the measure. [UPDATE: LAFPP staff met with the Controller’s Office and Information Technology Agency (ITA) staff on February 16, 2017 and discussed the requirements needed in PaySR (the City’s payroll system) in anticipation of Airport Safety Officers that may transfer to our Plan as early as April. The City Council approved the first reading of the ordinance on February 22, 2017 and the second reading is scheduled for March 24, 2017. LACERS and LAFPP staff are preparing for the Airport Safety Officers counseling session currently scheduled for March 29, 2017.]
PENSIONS DIVISION
RFP FOR FINANCIAL PLANNING EDUCATION SEMINAR CATERING SERVICES At the December 15, 2016 Board meeting, staff requested authority to release a Request for Proposal (RFP) for catering services for the Financial Planning Education Seminars. The proposed contract would be for a three-year term. If approved, the RFP is scheduled to be released in mid-December, and the proposed deadline for responses from potential contractors would be early February 2017. On December 16, 2016, the RFP was posted on the LAFPP website and the City's contracting opportunities website (Business Assistance Virtual Network - BAVN). Emails were also sent to notify companies who had previously provided bids or services for the prior one-year contract. Responses to the RFP were due on February 1, 2017. Staff anticipates the evaluation of responses, cost information and a contract award recommendation will be presented to the Board in March 2017. [UPDATE: Staff received a total of 4 proposals and is evaluating the services and fees of each. Staff will present a recommendation to the Board at the March 16, 2017 meeting.] PROPOSED FINANCIAL COUNSELING PROGRAM Staff is conducting research to determine the scope and feasibility of offering individual financial counseling sessions to members. Members who attend one of the Financial Planning Education (FPE) seminars (for education only) would be given the opportunity to schedule a follow-up session with a financial planner for a personalized review of their financial situation. This would allow members to apply the education provided in the FPE seminar to take the next step and develop a comprehensive financial plan. Staff previously met with representatives of United Firefighters of Los Angeles City, Los Angeles Police Protective League, Los Angeles Firemen’s Relief Association, Los Angeles Police Relief Association, and Los Angeles Retired Fire and Police Association, to request their input on the individual financial counseling services. The representatives were supportive of the proposed services. The individual counseling sessions would be conducted through our current financial education consultant. The FPE seminar contract was awarded as a result of an RFP released in July 2015. At that time, staff requested to make a recommendation to award a financial counseling contract at a later date. The financial education and planning consultants would not be allowed to provide, sell or derive any income from the sale of any investment products to members. In addition, any advice to the member for certain investment choices should not affect or provide compensation to the advisor. Staff met with the City Attorney on May 27, 2016, to discuss the parameters of the proposed financial counseling program. Staff proceeded with the plan for a pilot study of the financial counseling program and to conduct focus group sessions with members to gather feedback that will assist staff and the contractor in the development of the program.
PENSIONS DIVISION
On September 6, 2016, eleven members participated in a focus group session and provided valuable feedback. The purpose of the focus group was to determine if the proposed program would be beneficial to members by addressing the questions and decisions they face as they transition into retirement. Information was presented on how the program would work and each participant was provided a personalized report similar to what will be provided as part of the final program. After reviewing their personal reports and providing suggestions, the participants agreed that the proposed program will be of great value to LAFPP members, even with the members picking up the full cost of the individual counseling session. On December 15, 2016, the Board awarded a contract for financial counseling services to Four Square Financial Literacy Partners. Staff is working with the City Attorney to draft a contract and liability waiver to proceed with the Financial Counseling Program. [UPDATE: At the February 22, 2017 meeting, the Board requested further information on Four Square Financial Literacy Partners. Staff will present the information to the Board on April 6, 2017.]
UNCHANGED PROJECTS MULTIMEDIA EFFORTS As part of the prior fiscal year Business Plan (FY 2015-16), staff began developing a library of informational videos that are now posted on the LAFPP website. These videos cover topics regarding pension benefits and other plan information. In April 2016, a new "Multimedia" page was developed on our website to present these videos along with future multimedia postings. The 2016-17 Business Plan includes a project to expand our multimedia efforts and the range of communications methods used to reach members and other stakeholders (Project #12). As part of this effort, staff is working with our website consultant to update the user’s experience by adding a filter to the Multimedia page. This filter, which will be applied to the video library in October 2016, will sort videos as they apply to Active, Retired, and General membership topics. Staff is working to livestream Board meetings internally to Department employees. Thereafter, staff will work with the Board to determine whether we post audio or video to the website, and whether it will be livestreamed or archived.
ADMINISTRATIVE OPERATIONS DIVISION
UPDATED PROJECTS
PENSION ADMINISTRATION SYSTEM REPLACEMENT The monthly requirements gathering sessions with Xerox and staff Subject Matter Experts from impacted business units continue in order to develop the specifications for the configuration and customization of the CPAS system. Weekly meetings with the project management team (LAFPP, Xerox, and LRWL consultant) are also being conducted to review and check on the progress of various deliverables, including planning documents, data mapping and conversion, hosting services, as well as the implementation of the new imaging solution to replace Documentum.
[UPDATE: The Defect-Repair build/rollout to fix the issues and discrepancies found during prior build testing was completed as scheduled. Staff will be testing and validating the fixes made as well as verifying the refreshed data in the system resulted from a recent data conversion. The issue regarding the method of calculating service credit in a leap year has been addressed. Xerox and LAFPP has agreed to share the cost of fixing the calculation methodology and closely monitor project requirements to prevent similar issues from negatively impacting the project. This issue has pushed back the initial “Go Live” date of the project from January 2018 to April 2018, which will result in additional costs to the Department due to the dedicated LAFPP staff assigned to the project.] 2017 FIRE DEPARTMENT EMPLOYEE MEMBER BOARD ELECTION LAFPP provides for the election of employee and retired Board members in accordance with the City Charter, Los Angeles Administrative Code (LAAC), Division 23, Chapter 5, Articles 5 and 5.5, and Board rules. On September 1, 2016, the Board approved changes to the LAAC election procedures, which then required City Council to adopt an ordinance reflecting the changes. The City Attorney’s Office prepared the ordinance and on December 9, 2016, the City Council approved the ordinance with Mayoral concurrence. Some of the key changes include no longer requiring signatures for the nominating petition and making the employee member election process more consistent with the retired member election process. On December 15, 2016, the Board authorized staff to administer the 2017 Fire Department Employee Member Board Election. Below are some key dates for the election: February 24, 2017 Latest date the Office of the City Clerk shall notify by mail all
employee members of the Fire Department of the impending Board seat vacancy and that candidates are being sought to run for election.
March 9, 2017 First day for candidates to file the Notice of Intent (to run for office)
packet at the Office of the City Clerk – Election Division.
ADMINISTRATIVE OPERATIONS DIVISION
March 17, 2017 Last day for candidates to submit the Notice of Intent packet to the Office of the City Clerk – Election Division, by 5:00 p.m., to qualify for the ballot.
April 21, 2017 Deadline for candidates to submit an Observers List to the Office
of the City Clerk – Elections Division, by 5:00 p.m. April 25, 2017 Election Day, 8:00 a.m. to 5:00 p.m. All ballots must be received by
the Office of the City Clerk – Elections Division by 5:00 p.m. to be counted.
May 18, 2017 Board Meeting – Elections Results July 1, 2017 New five-year term begins for the Fire Department Employee
Member of the Board. [UPDATE: The Office of the City Clerk has mailed the Notice of Intent packets to eligible active Fire Department employee members to qualify as candidates for the ballot. After the March 17, 2017 deadline for candidates to submit the Notice of Intent packets to qualify for the ballot, the Office of the City Clerk will begin preparations to mail ballots to eligible voters.]
UNCHANGED PROJECTS PERFORMANCE METRICS As part of the Mayor’s “Back to Basics” philosophy, the Mayor has directed departments to submit performance metrics that will measure the effectiveness of the departments in key areas. Monthly, staff submits performance metrics and business plan project updates to Mayoral staff including data in following areas: payment of pension payments; disability applications; customer satisfaction; contractor disclosure; and investment benchmarks.
In addition, the General Manager has expanded the use of performance metrics to internally measure and track performance and assist management decision making, taking into consideration resource requirements needed to compile and analyze the data. These internal metrics are reviewed by management on a regular basis.
As part of the 2017-18 budget process, management has been asked to review all metrics to determine if they need to be changed or refined in any way for the Fiscal Year 2017-18. ‘SIDE A’ DIRECTOR’S AND OFFICER’S (D&O) LIABILITY INSURANCE \ While the City is statutorily required to indemnify Board members and staff acting in a fiduciary capacity, there are instances where the City can choose to not indemnify thereby obliging Board members or staff to defend themselves at their own expense. The City is not required to provide a legal defense to Board members or staff if:
ADMINISTRATIVE OPERATIONS DIVISION
• The defense would create a conflict of interest with the City; or • The act or omission involved is not within their scope of duties; or • The Board member or staff acted or failed to act because of actual fraud,
corruption, or malice; or • Criminal actions have been brought against the Board member of staff. (Note: The
City has the discretion to indemnify criminal actions, thereby potentially obliging Board members or staff to defend themselves at their own expense.
The California Government Code allows for pension boards to purchase liability insurance to bridge the risk exposure gap in cases where the City does not indemnify. In 2015, the Board authorized the General Manager to purchase an annual ‘Side A’ Director’s and Officer’s (D&O) liability insurance policy to cover only Board members and key executive staff. The LAFPP Side A D&O insurance policy is liability insurance payable to the Board members and key staff to cover defense costs and losses up to $10 million, in circumstances when the City chooses to not indemnify. The current policy covers the term 12/23/15 to 12/22/16 and was purchased for $33,500, a significant savings compared to a traditional fiduciary insurance policy which normally covers Board members, all staff, and Plan assets. Staff are currently working to secure quotes for a new policy with a new term starting 12/23/16. In the 2016-17 LAFPP Budget, the Board authorized up to $50,000 for this insurance policy and staff expects the policy cost to remain fairly flat. Staff will report to the Board when the policy has been executed and what the final cost was. As part of this insurance policy, a Waiver of Recourse endorsement is required that protects the insured against recourse by the insurer. Without this endorsement, those insured are not protected from personal liability. Staff expect the required endorsement fee to total $25 per insured, which would have to be paid by the insured individuals and not by System assets. Staff will collect this fee from the insured once the policy invoice has been delivered to LAFPP. A new policy effective 12/23/16 is now in place. Staff is working with the Board of Commissioners to collect fees associated with the Waiver of Recourse as addressed above.
DEPARTMENT OF FIRE AND POLICE PENSIONSBUDGET TO ACTUAL - RECEIPTS AND EXPENSESAs of February 28, 2017 (67% of year)
VARIANCEACTUAL PROJECTED %
YEAR YEAR END SURPLUS/ (UNDER)/OVER
BUDGET TO DATE PROJECTIONS DEFICIT PROJECTED
A B C C-ARECEIPTS General Fund (1) 616,234,998$ 616,234,998$ 616,234,998$ -$ 0%Less: Excess Benefit Plan (1) (1,303,600) (1,303,600) (1,303,600) - 0%Special Fund (Harbor) 4,547,876 4,547,876 4,547,876 - 0%Member Contributions (2) 142,160,559 91,718,442 137,506,908 (4,653,651) -3%Earnings on Investments 325,000,000 234,154,974 351,232,461 26,232,461 8%Miscellaneous (3) 2,000,000 2,029,290 3,043,935 1,043,935 52% Total Receipts 1,088,639,833$ 947,381,980$ 1,111,262,577$ 22,622,745$ 2%
EXPENSESService Pensions 590,000,000$ 406,470,350$ 610,194,042$ 20,194,042$ 3%Service Pensions - DROP payout 105,000,000 65,376,001 110,376,001 5,376,001 5%Disability Pensions 120,000,000 74,659,632 111,679,236 (8,320,764) -7%Surviving Spouse Pensions 121,000,000 80,929,349 121,599,813 599,813 0%Minor/Dependent Pensions 2,500,000 1,712,060 2,467,740 (32,260) -1%Refund of Contributions 3,500,000 1,779,085 2,668,628 (831,373) -24%Health Insurance Subsidy 113,000,000 71,852,902 107,922,258 (5,077,742) -4%Dental Insurance Subsidy 4,100,000 2,699,986 4,071,046 (28,954) -1%Medicare Reimbursement 11,500,000 6,505,677 10,119,553 (1,380,447) -12%Health Insurance Reimbursement 1,300,000 763,130 1,271,883 (28,117) -2%Investment Management Expenses 91,152,419 23,868,082 87,179,078 (3,973,341) -4%Administrative Expenses (4) 23,270,652 16,153,641 22,552,053 (718,599) -3%
Total Expenses 1,186,323,071$ 752,769,895$ 1,192,101,330$ 5,778,259$ 0%
RECEIPTS OVER EXPENSES (5) (97,683,238)$ 194,612,085$ (80,838,753)$ (16,844,485)$
YTDCURRENT MOVING
MONTH AVERAGE
PENSION PAYROLL 92,079,740$ 88,949,942$
(1) Represents the City of Los Angeles General Fund Annual Required Contribution, including the amount earmarked to pay excess benefits and associated administrative costs
in compliance with IRC Section 415. The 2016-17 Excess Benefit Plan (EBP) estimated cost is $1,506,055. The EBP is funded by a City contribution of $1,303,600 and
$202,455 in available funds from prior years. On December 9, 2016, the prior years' funds totaling $202,455 were re-appropriated to the current year EBP fund. Since the EBP
revenue is not transferred to LAFPP, it is excluded from the department's total revenue.
(2) Includes 2015-16 Pay Period 26 and up to 2016-17 Pay Period 17.
(3) Represents receipts from prior years' pension buybacks/overpayments.
(4) Actual Year-to-Date reflects Year-to-Date commitments (encumbrances) and expenditures.
(5) Figures may be rounded.
DEPARTMENT OF FIRE AND POLICE PENSIONSBUDGET TO ACTUAL - ADMINISTRATIVE AND INVESTMENT MANAGEMENT EXPENSESAs of February 28, 2017 (67% of year)
ADMINISTRATIVE EXPENSE (A) (B) (C) (D) (E) (F) (G) (H)DIFFERENCE
ADOPTED BUDGET ADJUSTED YEAR TO DATE REMAINING YR END (UNDER)/OVER VARIANCEACCOUNT TITLE BUDGET CHANGES2 BUDGET TOTAL BALANCE PROJECTED PROJECTED %1
(A + B = C) COMMITTED (C - D = E) EXPENSES (F - C = G) (G / C = H)
Salaries-General3 11,800,000 - 11,800,000 6,993,696 4,806,304 11,701,000 (99,000) -1%
Salaries-As-Needed3 107,000 - 107,000 71,973 35,027 107,000 - 0%
Overtime3 69,715 - 69,715 17,217 52,498 48,000 (21,715) -31%
Printing & Binding 36,654 - 36,654 36,654 - 36,654 - 0%
Travel 159,443 - 159,443 63,261 96,182 130,000 (29,443) -18%
Transportation3 6,000 - 6,000 4,000 2,000 6,000 - 0%
Contractual Services 4,932,150 (5,210) 4,926,940 4,293,162 633,778 4,600,000 (326,940) -7%
Medical Services 330,000 - 330,000 330,000 - 330,000 - 0%
Health Insurance 1,300,000 - 1,300,000 559,324 740,676 1,259,000 (41,000) -3%
Dental Insurance 55,000 - 55,000 23,880 31,120 54,000 (1,000) -2%
Other Employee Benefits 40,000 - 40,000 19,781 20,219 40,000 - 0%
Retirement Contribution 3,175,000 - 3,175,000 3,172,189 2,811 3,172,189 (2,811) 0%
Medicare Contribution 173,000 - 173,000 70,459 102,541 173,000 - 0%
Office & Administrative 728,690 - 728,690 427,297 301,393 600,000 (128,690) -18%
Tuition Reimbursement 20,000 - 20,000 8,631 11,369 15,000 (5,000) -25%
Election 25,000 - 25,000 - 25,000 25,000 - 0%
Furniture, Office & Tech. 60,000 45,210 105,210 62,117 43,093 105,210 - 0%
Unappropriated Balance 253,000 (40,000) 213,000 - 213,000 150,000 (63,000) -30%
TOTAL ADMINISTRATIVE EXPENSES 23,270,652$ -$ 23,270,652$ 16,153,641$ 7,117,011$ 22,552,053$ (718,599)$ -3%
TOTAL INVESTMENT MANAGEMENT EXPENSES 91,152,419$ -$ 91,152,419$ 23,868,082$ $67,284,337 87,179,078$ (3,973,341)$ -4%
1 Percentage difference between projected expenses and the adjusted budget.
3 Year-to-Date Committed based on Pay Period 17 ending February 18, 2017.
2 A couple adjustments were made to the following accounts as authorized by the Board after the 2016-17 Adopted Budget was approved: a) On January 9, 2017, funds totaling $40,000 were transferred to Furniture, Office & Tech. to purchase a department vehicle. The transfer was processed based on the January 5, 2017 Board authority to move funds from Unappropriated Balance (Account 649500) to Furniture, Office & Tech. (Account 647300) for this purchase.b) On September 15, 2016, funds totaling $5,210 were transferred to Furniture, Office & Tech. to offset HQ related costs. The transfer was processed based on the July 16, 2015 Board authority to move funds between line items as needed for the HQ Project. Also on July 21, 2016, the Board approved a contract extension for Haworth to December 31, 2017 and authority to expend funds on furniture or services with identifiable savings within existing budgetary accounts.
DEPARTMENT OF FIRE AND POLICE PENSIONS
Active, Expired, and Upcoming Contracts
February 28, 2017
SEARCH Domestic Equity tbd tbd 12/15/16 12/15/16 The Board approved a new search.
SEARCH Real Estate Investment Trust Manager (Active) tbd tbd 12/01/16 12/01/16 The Board approved a new search.
595PEN FIS Group, Inc. (International Manager of Emerging
Managers)
07/01/14 06/30/17 04/01/17
596PEN MacKay Shields, LLC (Fixed Income - High Yield
Bond)
07/01/14 06/30/17 04/01/17
598PEN Chicago Equity Partners LLC (Domestic Equity) 08/01/14 07/31/17
599PEN Los Angeles Capital Management and Equity
Research, Inc. (Domestic Equity)
08/01/14 07/31/17
602PEN Payden & Rygel (Unconstrained Fixed Income
Manager)
08/01/14 07/31/17
600PEN PIMCO (Pacific Investment Management Company
LLC) (Domestic Equity)
08/01/14 07/31/17 The Board approved the Consent to Assignment of Research Affiliates
LLC to PIMCO on 01/21/16.
601PEN Scout Investments, Inc. - Reams Asset Management
Division (Unconstrained Fixed Income Manager)
08/01/14 07/31/17
604PEN Kleinwort Benson Investors (Commodities Active
Equity Manager)
10/01/14 09/30/17
605PEN Mellon Capital (Commodities Active Equity Manager) 10/01/14 09/30/17
613PEN Dimensional Fund Advisors LP (International
Emerging Markets)
01/01/15 12/31/17
614PEN BlackRock Institutional Trust Company (International
Equity)
02/01/16 01/31/18
615PEN Baillie Gifford Overseas Limited (International Equity) 03/01/15 02/28/18
618PEN AllianceBernstein, L.P. (Global REIT) 03/02/15 02/28/18
624PEN Frontier Capital Management Company, LLC
(Domestic Equity)
07/01/15 06/30/18
621PEN Gresham Investment Management (Active
Constrained Commodity Manager)
07/28/15 06/30/18
622PEN Goldman Sachs Asset Management (Enhanced Index
Commodity Manager)
07/16/15 07/15/18
629PEN LM Capital Group, LLC (Fixed Income) 09/01/15 08/31/18
638PEN Boston Common Asset Management, LLC
(International Equity Emerging Manager)
10/01/15 09/30/18
639PEN Loomis, Sayles & Co. LP (Fixed Income) 10/01/15 09/30/18
633PEN Channing Capital Management, LLC (Domestic
Equity)
10/01/15 09/30/18
636PEN GIA Partners, LLC (Domestic Fixed Income) 10/01/15 09/30/18
635PEN Granite Investment Partners (Domestic Equity) 10/01/15 09/30/18
631PEN OakBrook Investments, Inc. (Domestic Equity) 10/01/15 09/30/18
634PEN PHOCAS Financial Corporation (Domestic Equity) 10/01/15 09/30/18
632PEN Redwood Investments, LLC (Domestic Equity) 10/01/15 09/30/18
637PEN Semper Capital Management, L.P. (Fixed Income) 10/01/15 09/30/18
643PEN Northern Trust Investments, Inc. (Fixed Income) 12/01/15 11/30/18
642PEN Scout Investments, Inc. - Reams Asset Management
Division (Fixed Income)
12/01/15 11/30/18
647PEN Glass, Lewis, & Co., LLC (Proxy Voting Services) 01/01/16 12/31/18
646PEN Northern Trust Investments, Inc. (International
Equity)
01/01/16 12/31/18
644PEN Heitman Capital Management, LLC (Real Estate
Separate Account)
01/01/16 12/31/18
645PEN Sentinel Trust Company (Real Estate Separate
Account)
01/01/16 12/31/18
649PEN R.V. Kuhns & Associates, Inc. (General Consultant) 03/01/16 02/28/19
650PEN Portfolio Advisors, LLC (Private Equity) 04/01/16 03/31/19
655PEN Brandes Investment Partners, LP (International
Equity)
08/01/16 07/31/19
659PEN Daruma Asset Management, Inc. (Domestic Equity) 08/01/16 07/31/19
656PEN Fisher Asset Management, LLC (International Equity) 08/01/16 07/31/19
657PEN Scout Investments, Inc. - Reams Asset Management
Division (Fixed Income - TIPS)
09/01/16 08/31/19
Contract
Award /
Renewal
Date
INVESTMENTS
Contract Vendor / Services
Contract Term
Market
Cessation
Start Date1
Board Authorization Date
CommentsStart Date
Expiration
Date
New
Search
Date
Vendor/
Candidate
Finalist Date
Page 1
DEPARTMENT OF FIRE AND POLICE PENSIONS
Active, Expired, and Upcoming Contracts
February 28, 2017
Contract
Award /
Renewal
Date
INVESTMENTS
Contract Vendor / Services
Contract Term
Market
Cessation
Start Date1
Board Authorization Date
CommentsStart Date
Expiration
Date
New
Search
Date
Vendor/
Candidate
Finalist Date
658PEN AllianceBernstein, LP (Commodities) 10/01/16 09/30/19
651PEN Northern Trust Company (Custodian Bank) 10/01/16 09/30/19
662PEN Portfolio Advisors, LLC (Private Equity - Specialized
Manager)
10/20/16 09/30/19
663PEN Fairview Capital Partners (Private Equity - Specialized
Manager)
11/01/16 09/30/19
664PEN Robeco Investment Management, Inc. (Boston
Partners) (Domestic Equity)
11/01/16 10/31/19
666PEN Principal Real Estate Investors, LLC (Global REIT
Manager)
12/01/16 11/30/19
665PEN Principal Real Estate Investors, LLC (U.S. REIT
Manager)
12/01/16 11/30/19
667PEN AllianceBernstein, LP (Domestic Equity) 01/01/17 12/31/19
669PEN Harding Loevner (International Emerging Markets) 02/01/17 01/31/20
671PEN Northern Trust Investments, Inc. (Domestic Equity) 02/01/17 01/31/20
670PEN The Townsend Group (Real Estate Consultant) 02/01/17 01/31/20
653PEN InnerVision Technology Relocation Company
(Technology Relocation Services)
03/01/16 02/28/17
641PEN Haworth, Inc. (HQ Furniture) 08/01/15 12/31/17
608PEN Iron Mountain Secure Shredding, Inc. (Secure
Document Shredding)
07/01/16 06/30/17
RFP Financial Counseling Services tbd tbd 12/15/16 The Board awarded the contract to Four Square Financial Literacy
Partners, Inc. The contract is pending negotiation and execution.
RFP Financial Planning Education Seminar Program
Catering Services
tbd tbd 12/15/16 Staff evaluations of reponses and recommendations to the Board is
scheduled for 03/16/17.
661PEN Something Special (Catering) 08/01/16 07/31/17
607PEN The Cherry Hill Company (Website Design and
Support)
10/01/14 09/30/17
648PEN Four Square Financial Literacy Partners, Inc.
(Financial Planning Education)
12/03/15 12/02/18
652PEN Firedrill (Graphic Design Services) 05/19/16 05/18/19
654PEN U.S. Legal Support (Court Reporting) 07/01/16 06/30/17
627PEN Alpha-One Investigations, Inc. (Investigative
Services Contractor)
09/15/15 09/14/18
628PEN CoventBridge (USA) Inc. (Investigative Services
Contractor)
09/15/15 09/14/18 The contract was formerly awarded to "Examination Management
Services, Inc. dba ICS Merrill". The name change to CoventBridge
(USA) was effective 07/07/16.
660PEN Simpson & Simpson Certified Public Accountants
(Annual Financial Statements Audits)
07/19/16 07/18/19
C-113244 Berstein Liebhard & Lefshitz (Securities
Litigation/Monitoring Services)
03/15/08 03/14/11
C-113252 Kaplan Fox & Kilsheimer, LLP (Securities
Litigation/Monitoring Services)
03/15/08 03/14/11
- Kessler Topaz Meltzer & Check (Securities
Litigation/Monitoring Services)
03/15/08 03/14/11
- Robbins Geller Rudman & Dowd (Securities
Litigation/Monitoring Services)
03/15/08 03/14/11
RFP Fiduciary Counsel tbd tbd 03/17/16 09/15/16 The Board awarded three contracts, but Nossaman LLP's contract is
pending negotiation and execution. The other two contracts for K & L
Gates, LLP and Olson Hagel & Fishburn, LLP have been executed.
RFP Jackson Walker (Outside Real Estate and Investment
Counsel)
tbd tbd 03/17/16 07/07/16 On 09/15/16, the Board approved the annual contract limits for
Jackson Walker LLP. The contract for Jackson Walker LLP is pending
negotiation and execution.
C-125199 Nossaman, LLP (Fiduciary Services) 11/10/14 11/09/17
C-126341 Ice Miller, LLP (Tax Services) 06/16/15 06/15/18
C-126452 Steptoe & Johnson LLP (Tax Services) 09/21/15 09/20/18
C-128417 Nossaman, LLP (Outside Real Estate and Investment
Counsel)
09/17/16 09/16/19
C-128402 Kutak Rock LLP (Outside Real Estate and Investment
Counsel)
10/17/16 10/16/19
C-128928 K&L Gates, LLP (Fiduciary Counsel) 11/17/16 11/16/19
INTERNAL AUDIT
LEGAL SERVICES
DISABILITY PENSION
ADMINISTRATIVE OPERATIONS
ADMINISTRATIVE SERVICES
COMMUNICATIONS & EDUCATION
Page 2
DEPARTMENT OF FIRE AND POLICE PENSIONS
Active, Expired, and Upcoming Contracts
February 28, 2017
Contract
Award /
Renewal
Date
INVESTMENTS
Contract Vendor / Services
Contract Term
Market
Cessation
Start Date1
Board Authorization Date
CommentsStart Date
Expiration
Date
New
Search
Date
Vendor/
Candidate
Finalist Date
C-128926 Olson Hagel & Fishburn, LLP (Fiduciary Counsel) 12/15/16 12/14/19
C-123569 Nossaman, LLP (Legal Representation) 09/15/13 until
completion
C-121678 Reed Smith, LLP (Legal Representation) 08/02/12 until
completion
On 09/15/16, the Board approved an increase in hourly rates.
C-126107 Morgan Lewis & Bockius LLP (Bingham)
(Tribune Shareholders Legal Representation)
03/01/12 until
completion
Los Angeles City Employee Retirement System
(Health and Dental Plan Subgroups)
08/22/11 07/31/14 The contract is currently under negotiation.
Los Angeles Firemen's Relief Association
(Medical Insurance Administration)
07/01/14 06/30/17
Los Angeles Police Relief Association
(Medical and Dental Insurance Administration)
07/01/14 06/30/17
Los Angeles Police Protective League
(Dental Insurance Administration)
08/01/14 07/31/17
United Firefighters of Los Angeles City
(Medical and Dental Insurance Administration)
09/01/14 08/31/17
RFP Group Medical, Dental and Vision Plans tbd tbd 11/17/16
574PEN Keenan & Associates (Health Consulting Services) 03/01/13 02/28/17
668PEN Keenan & Associates (Health Consulting Services) 01/25/17 01/24/20
625PEN The Segal Company (Western States), Inc. (Actuarial
Consulting Services)
07/01/15 06/30/18
603PEN Center for Internet Security, Inc. (Network Security
Monitoring)
03/01/14 02/28/17 An amendment for a one-year contract extension is pending
execution.
610PEN EMC Corporation (Documentum) 10/01/14 09/30/17
611PEN Verizon Terremark (Disaster Recovery Services) 12/04/14 12/03/17
552PEN Buck Consultants, LLC (OnPoint Software) 05/01/15 04/30/18
616PEN AT&T (CALNET3 Phone) 11/15/13 06/30/18
617PEN AT&T (CALNET3 Data) 11/15/13 06/30/18
619PEN Verizon (CALNET3 Phone) 11/15/13 06/30/18
620PEN Verizon (CALNET3 Data) 03/26/14 06/30/18
575PEN LRWL, Inc. (Pension Administration System
Replacement Project Consulting Services)
06/01/13 12/31/18
521PEN Northern Trust Company (Benefit Payment System) 05/20/13 05/19/19
626PEN Xerox State and Local Solutions, Inc. (Pension
Administration System Replacement Project)
07/02/15 07/01/23
Subscription
Agreements
Bridgewater Associates, Inc. (TIPS and Pure Alpha) 07/31/08 n/a on-going Staff recommendation to the Board is scheduled for 03/02/17.
HEDGE FUND OF FUNDS PARTNERSHIP AGREEMENTS2
1Marketing Cessation: The purpose of this policy is to prevent, and avoid the appearance of, undue influence on the Board or any of its members in the award of all contracts. In accordance with Section 9.0 of the
Investment Policy, from the time the search begins with the Board’s approval of the minimum criteria for the search until the search ends with the selection of the firm(s) to receive the contract(s), all direct marketing
contact with firms that meet the search criteria will be limited to meetings with the Consultant, information sent to the Consultant or Department, questions about the search directed to the Staff or Consultant, one meeting
at the Department’s office with Staff and any site visits. The Board members, Department Staff or Consultant will accept no entertainment or gifts of any kind from any firm qualifying for the search. This policy does not
prohibit contact with potential interview candidates at group social events, educational seminars, conferences, or charitable events so long as there is no direct marketing.
During the three months prior to the renewal of a contract with a firm currently under contract, the Board Members, Department Staff and Consultant will accept no entertainment or gifts from that firm until the contract
has been renewed or terminated by the Board. Firms who currently have contracts with the Los Angeles Fire and Police Pension System are allowed to continue contact related to the existing contract with Staff and
Consultant.
2Hedge Fund of Funds do not have contracts like our other managers. They have limited partnership agreements that do not have a fixed expiration date. They are on this list to include them in our regular three-year
manager review process.
*Expired contracts are listed in red. Expired investments contracts will remain on the list if the market cessation period is active and until a new contract is awarded.
MEDICAL AND DENTAL BENEFITS
N/A
PENSIONS DIVISION (EXECUTIVE)
SYSTEMS
Page 3