Financing of L.A. County Pension Shortfall Delayed

The Los Angeles County Board of Investments on Wednesday postponed a decision on how to finance a $265-million liability created by controversial pension rules until the Board of Supervisors studies the problem.

The investment board was set to act on a staff proposal to seek an additional $18 million a year for the next 30 years to pay for the pension increases. But board members agreed to postpone a decision at the request of supervisors.

Supervisors Mike Antonovich and Ed Edelman said they want to see the results of two studies on the pension rules before making a decision on how to fund the deficit.

But the two commissions conducting studies--the Productivity and Economy Efficiency commissions--are months away from completing their work, officials said.

A spokesman for Supervisor Deane Dana said Dana wants an explanation from Chief Administrative Officer Richard B. Dixon, whose interpretation of an obscure state law led to the rule changes last year. An actuarial study released Tuesday revealed for the first time the cost of the pension rules.

The Times reported in February that county officials adopted the rules with little public debate and no study of the financial impact. The rules provide that fringe benefits such as car and medical allowances be counted with salaries in calculating retirement pay.

Although some changes implemented by Dixon eventually will benefit most county employees, the largest gains in retirement income will accrue to members of the Board of Supervisors and top county managers. The Times found that few other counties have such programs and none have similar rules.