For the second time in the last year, Mayor Antonio Villaraigosa has said no to the manager selected to run a $15.8 billion pension fund. Twice, the board has selected William Raggio as its next manager, and twice their decision was vetoed.
The Mayor gave no reason in his short letter rejecting Raggio, and his spokesman offered just a short statement on the matter, saying the Mayor preferred someone with fresh leadership “focused on controlling costs to the City while providing sustainable benefits.” The 9-member board oversees a pension fund that provides benefits to roughly 25,000 current and retired employees.
The fund is backed by the general fund, and in poorly performing years, the City’s funds are redirected to backfill shortfalls. Pension costs have been one of the major drivers of budget deficits in recent years.
The nine members on the panel are divided between the five picks made by the Mayor and four whom are elected by public safety employees. According to anonymous reports, the vote for Raggio was 5-4.
Read the full story at the Los Angeles Times.