Yes on Charter Amendment 3

Charter Amendment 3 involves equitable changes in pension plans for Los Angeles police officers and firefighters. The amendment would shift the funding of millions of dollars of pension administrative and investment management costs from the city’s general fund to pension fund assets.

The changes are arcane and technical. They are designed to equalize pension plans for police and firefighters hired prior to Dec. 8, 1980, and those hired after that date. Members on the payroll before 1980 are eligible to retire after 20 years of service regardless of age. Those hired after 1980 cannot draw on their pension regardless of time of service until age 50. However, if they leave city service before becoming eligible for a pension, they are entitled to withdraw their pension contributions.

Amendment 3 would give pension members hired between Dec. 8, 1980, and June 30, 1997, the option to choose a plan to retire without penalty after 20 years of service regardless of age. In exchange, they would not be eligible for a refund of any pension contribution if they left city employment with less than 20 years of service. Those hired on or after July 1, 1997, would participate in the new plan.

Shifting the costs of pension administrative and investment management to pension assets would result in a near-term budgetary savings of $25 million for the city. Vote yes on Charter Amendment 3.