It is understandable that there is confusion over how the Controller is listing the various components of each member's LACERS contribution. All LACERS-enrolled City employees were required to contribute an additional 1% ("ERIP Recovery") beginning 07/01/11.
Effective 07/01/12, all EAA-represented City employees enrolled in LACERS are required to contribute an additional 4% ("Retirement Health Defrayal") to LACERS. The additional 4% contribution buys a vested right to the maximum retiree medical plan subsidy and to the annual increase in that maximum medical subsidy approved by the LACERS Board.
That is codified in LA Admin Code Section 4.1103.4. While the Controller lists the ERIP and "Retirement Health Defrayal" as separate contributions, in point of fact all of these contributions go to the individual employee's LACERS account. LA Admin Code Section 4.1031.2(d) states "All contributions paid pursuant to this Section [which specifies the standard 6% + the ERIP 1% + the retirement health 4%] shall be deposited in each member's individual account as provided in Charter Section 1162".
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