Mayor Richard Riordan has made headlines with his proposal to reform Los Angeles pensions, but according to reports, he hasn’t studied the proposal’s cost savings. The actuarial analysis is currently underway.
In Los Angeles, the charter requires that any alterations to pension be accompanied by an actuarial analysis. But because Riodran’s plan is a ballot initiative, the restrictions and requirements are more lax.
That point has not been lost on the Los Angeles Police Protection League, which has already begun to campaign against the March ballot initiative. They say it is telling and irresponsible to put forward a major plan without knowing the details. Pointing at other large cities that have approached a similar plan to Riordan’s, they say ultimately the switch to a 401(k) or Social Security plan was abandoned when found to be too expensive.
But Riordan says his plan is based upon city studies that are already in existence and detail the need for pension overhaul. He also claims that his plan is based upon reforms that have been implemented, and not abandoned, in other cities.
Read the full story at the Los Angeles Daily News.