Administration
Overview
Membership
Contributions
Retirement
Disability
Death Benefits
Health Plans
Mission Statement
This Page Describes
- The "Plan"
- Funding the Plan
- Financing
- Investments
- Interest
- Actuarial Surveys
- Annual Report
- Reciprocal Agreement Between the Plan and LACERS
Over sixty-five years ago the Los Angeles Department of Water and Power recognized the difficulty of saving enough money to provide an income after retirement, to cover living costs if you are not able to work, or to provide protection for survivors if you die.
As a consequence, on October 1, 1938 the Department established the Water and Power Employees' Retirement, Disability and Death Benefit Insurance Plan (The "Plan"). The Plan is designed to provide financial security and help you prepare for your future through comprehensive programs for pension income at retirement, payments during disability, death benefits for beneficiaries, and continuance of benefits for eligible survivors.
The Plan is operated on an actuarially-funded basis. In addition, money is set aside in reserves for every claim against, and every obligation assumed by the Temporary Disability Fund, the Permanent Total Disability Fund and the Death Benefit Fund. Separate valuation methods and separate accounting are established for each reserve within the respective Funds.
Financing of the Plan is provided by earnings on the investment of Plan funds, and by Department and member contributions; with the Department contributing $1.10 for each $1 contributed by the members, plus any additional amounts necessary to fully fund the Plan Benefits as determined by the Actuary. No tax monies are available or utilized for support.
The investment of Plan assets is governed by provisions of the City Charter. The Board of Administration must manage Plan assets with the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with their matters would use in the conduct of a similar enterprise.
The Board contracts with investment management firms which assist the Board in investing Plan funds.
Currently, interest is credited to contribution accounts and reserves at the rate of 8 % compounded annually. Interest rates may be changed from time to time based upon the earnings and other experience of the Retirement Fund. Any change must be approved by the Board of Water and Power Commissioners.
Under the provisions of the City Charter, a general survey and actuarial report is required at least once every five years.
The Board contracts with consulting actuaries who conduct an annual valuation of the Plan. Department contribution rates and reserves are adjusted periodically to reflect changes in actuarial valuations resulting from actual Plan experience.
For each fiscal year, the Board publishes a summary annual report of its activities, investment experience, actuarial survey and audited financial statements. You may call 213-367-1712 to request a copy of the most recent summary annual report.
Reciprocal Agreement Between the Plan and LACERS
There is a Reciprocal
Agreement which became effective on February 1, 1980 between the Plan and the Los Angeles
City Employees' Retirement System (LACERS) which:
- Allows your funds to be automatically transferred to DWP from LACERS
- Automatically credits you for the service you acquired while you were a member of LACERS
- Determines your membership date
- Determines the rate at which you contribute to the DWP Plan
- Transfers to DWP any contracts you may
have had at LACERS for the purchase of retirement service credit.
(See "Membership - Transfers From Other City Departments", "Contribution Rates - Transfers From Other City Departments", and "Contracts Transferred from LACERS".)
The situations described below should help you determine whether you are eligible to participate in the Reciprocal Agreement:
- You automatically participate
in the Reciprocal Agreement if you entered DWP service directly from another City
department after February 1, 1980, and were a contributing member of LACERS for at
least 26 consecutive weeks before entering DWP service, and did not withdraw your
retirement contributions from LACERS.
- You are not eligible to
participate in the Reciprocal Agreement if you entered DWP service after February 1, 1980
and you either had a break in service of more than seven calendar days since termination
of employment at another City Department, or requested not to participate in the
Reciprocal Agreement, or withdrew your retirement contributions from LACERS.
- You are eligible to
participate in the Reciprocal Agreement if you were already a member of the DWP Plan on
February 1, 1980, and as of that date had re-deposited at DWP at least some of the
contributions required to purchase previous City service credit, and you did not have a
break in service of six or more months between your employment at another City Department
and your employment at DWP.
- You are eligible to participate in the Reciprocal Agreement if you were already a member of the DWP Plan on February 1, 1980, and left your retirement contributions on deposit at LACERS, and did not have a break in service of six or more months between your employment at another City Department and your employment at DWP.
If your funds are still on deposit at LACERS, you should call 213-367-1695 to have your funds transferred.