"This is the best deal we're going to get for both sides, and I think everybody knows that," said Bob Schoonover, president of Service Employees International Union Local 721, which belongs to the coalition.
For months, the city's financial analysts have warned that retirement costs could swamp the two main pension systems -- the Los Angeles City Employees' Retirement System and the L.A. Fire and Police Pensions -- starting in fiscal year 2010-2011.
With both funds experiencing large financial losses last year, the city's required contribution is expected to increase annually from approximately $660 million next year to more than $1.6 billion by 2013-2014 -- or more than a third of the city's discretionary budget, according to a May 12 analysis by Acting City Administrative Officer Ray Ciranna. That increase "far exceeds any projected revenue growth" and is not sustainable, Ciranna wrote.
Sally Choi, who heads the City Employees' Retirement System, said the city is required by law to complete an actuarial analysis of the early retirement plan. Choi said she has not seen such an analysis. "I've only seen what's been reported through the unions and in the papers," she said
Once the council votes on the agreement, it would need to be approved by the labor coalition's 22,000 members. Changes to the city's pension benefits also require a vote from active members of the City Employees' Retirement System.
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david.zahniser@latimes.com
phil.willon@latimes.com
