BY PRESIDENT JIM MATEER
There have been several changes affecting the Los Angeles Fire and Police Pension (LAFPP). These changes affect the composition of the board of commissioners and the executive leadership of the pension system. All these changes are important and require our attention.
First, Ray Ciranna, General Manager of LAFPP, announced his intent to retire in August 2022. He has served as General Manager of LAFPP since May 2013. He has a total of 32 years of city service. During his tenure at LAFPP, many milestones were achieved, including a ten-year average return of 9.95%, total fund asset growth from $18 billion to $30 billion, and a funding status increase from 83% to 96%. The search for his successor will be a thorough and meticulous process. Once a selection is made, the approval process may get bogged down in politics. The mayor must approve the selection of the new general manager and recommend the appointment be approved by the city council. As we all know, we are in the middle of an election cycle, and a new mayor will be elected by year’s end. The current mayor is essentially a lame duck. It is anyone’s guess as to how long this process will take. We are fortunate to have two highly skilled assistant managers to run the day-to-day operations in the interim.
Since the beginning of the year, we have seen a major turnover in the composition of the Board of Pension Commissioners. The board has five commissioners appointed by the mayor. In the last year, there have been three appointed commissioners to leave the board. Two of the vacant positions have been filled. The mayor has selected a candidate to fill the third spot; his appointment is awaiting city council approval. Furthermore, it is our understanding a fourth commissioner has asked not to be reappointed to another term. The net result of this will be one veteran appointed commissioner, three in their “sophomore year.” The fifth will be a “freshman” commissioner.
The board also has four elected commissioners. Brian Churchill was elected to be the “elected active police” commissioner in June. On July first, Rigo Arellano will be sworn in as the “elected active fire” commissioner. I have met with both Brian and Rigo. We are fortunate to have these members as representatives on the board. Both retired elected commissioners have several years left on their terms.
There may be additional turnover in the composition of the appointed commissioners come the first of the year. We will have a newly elected mayor, and he or she will most likely nominate a new slate of appointed commissioners.
The months ahead will be interesting. Rest assured, LARFPA will keep the members informed of current events. If you have questions, do not hesitate to contact our office at info@larfpa.org.