Month: December 2020

Longstanding Chief Investment Officer (CIO), Tom Lopez of Los Angeles Fire and Police Pensions (LAFPP), is set to retire after more than 40 years of service to the fund. Mr. Lopez has been a stalwart in the CIO role since 1993 and has led the Investment Team in building a strong portfolio, successfully achieving returns above the benchmark for over 25 years.

“The LAFPP Commissioners wholeheartedly thank Tom Lopez for his years of service. His steady hand and wise advice are a pillar to the success of this fund,” said Board President Brian Pendleton.

Mr. Lopez began his career with LAFPP in 1980 and has worked with multiple boards over the years, guiding them in building the portfolio to where it stands today. His calm demeanor and methodical approach have helped navigate the fund through several market downturns and various financial crises, while maintaining an average pension funding status of over 90% since the late 1990’s.

During Mr. Lopez’s tenure, the Fund expanded from utilizing four money managers invested in a few stocks and bonds to approximately forty money managers invested in over a dozen different asset classes. Pension fund assets under management grew from approximately $400 million in 1980 to approximately $27 billion today.

LAFPP recognizes the dedication and wisdom of Mr. Lopez and wishes him the best in retirement.

LAFPP has engaged Korn Ferry to assist in finding a new CIO for the Plan. Selection of a new CIO is anticipated to occur in late March or early April 2021. Inquiries can be directed to Michael Kennedy of Korn Ferry.

About LAFPP

LAFPP oversees the pension fund for sworn members of City of Los Angeles Fire, Police, Airport and Port departments. The fund is currently valued at over $27 billion in assets and serves over 26,500 members and beneficiaries.

About Korn Ferry

Korn Ferry is a global organizational consulting firm that specializes in executive management searches, bringing people and organizations together to exceed their potential.

Total fund assets have once again reached an all new high! As of December 8, 2020, your Fund reached an unaudited market value in excess of $27.5 billion dollars. This greatly exceeds the $25 billion total as of January 2020, just before the stock market declined due to the COVID-19 pandemic. The rebound in the Plan’s market value is due to the strong recovery in the equity markets and the City’s annual contribution payment received in July 2020.

On another positive note, for the actuarial valuation period ending June 30, 2020, the combined funded ratio for pension and health benefits is 88.6%, up slightly from 88.5% the previous year. This marks the third consecutive year that the combined funded ratio has increased. Even though the pension benefit funded ratio is now 93.2%, down from 93.6%, the health benefit funded ratio increased from 56.2% to 59.7%. The favorable results indicate that the Plan remains strong despite a volatile year marked by the COVID-19 pandemic.

We want to remind you that any proposals to modify LAPD’s budget would not impact the substance of your LAFPP pension benefits, or the general obligation under the City Charter to contribute annually to the LAFPP Fund in the amount determined by an independent actuary hired by this Board. Your vested pension benefits, the City’s obligation to fund those benefits, and the independent authority of this Board to protect and invest the trust funds that will be used to pay those benefits, are protected by the California Constitution and the City Charter.

The LAFPP Board and staff continue our commitment to administer your pension benefits during these challenging times. We have implemented changes to our operations, which have enabled us to continue serving you without interruption during the COVID-19 crisis.

Thank you for your dedication and service as first responders to the residents of Los Angeles. For any questions or concerns, please contact us at (213) 279-3000, (844) 88-LAFPP, or at Pensions@lafpp.com.

LAFPP continues to be one of the largest public safety pension funds in the U.S. The Plan administers retirement and health subsidy benefits for over 26,000 current and retired public safety employees and their beneficiaries for the City of Los Angeles.