More than one hundred members in Los Angeles, Riverside and Ventura counties converged in November to hear from experts on the current financial crisis and from retirement officials on the status of investments.
Members heard from John Marshall, the Research Director for SEIU's Capital Stewardship Program, about the financial crisis and SEIU’s plans to protect working American families. Members then broke into regional groups to talk about the effects current federal and state budgets will have on public services, financial survival for working families and retirement.
 “Even when we’re not in tough economic times, people should know about and plan their retirement and their financial well being, but being that we’re in such a crisis that may be the worst we’ve faced in 80 years it’s paramount in everyone’s minds", said Bob Schoonover, SEIU 721 Vice-President. "We have a great opportunity to help our members learn what to do in these difficult times and prepare for their future and their retirement.”
 “Why is this happening?" John Marshall questioned."There are two answers to that question: First the tremendous housing bubble, which was fueled by cheap debt, inadequate regulation and lots of speculative buying, is now unraveling. The effects of that housing bubble are clear, but there’s also a second answer to this question: In the U.S. we have tried to be a consumer based economy built on low wages and that fundamentally can’t be sustained.
“Middle class families have been borrowing and taking on debt for a number of years and that has ceased to work.”
Worried about your Retirement?
Your Pension in the Time of Economic Crisis
It’s perfectly normal to feel concern about the economic future, but if you are a member of SEIU 721 your retirement benefits through work are guaranteed by state statute and local ordinance and cannot be unilaterally reduced or altered. Generally, public pension funds invest prudently, meaning their investments are highly diversified and focused on the long term rather than reacting to short-term market volatility. The funds also have the liquidity needed to pay promised benefits.
While the current market fluctuations may impact investment returns, or in the current case even though retirement systems’ assets market values have dropped, accumulated assets and annual funding including investment returns, employer and employee contributions, ensure retirement benefits are secured for the long term.
For example: Los Angeles County’s retirement system is fiscally sound with approximately $40.9 billion in assets and with a funding ratio of almost 94% based on the most recent actuarial valuation (June 30, 2007). LACERA has a 3-year asset smoothing method that dampens the impact of any one year’s loss or gain.
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Resources for You:
Financial Resources.
Websites, terminology and more.
Is my pension safe?
Important information on retirement savings.
Economic Crisis primer.
Background on the financial crisis we’re facing.
Get involved. Worried about the future? Do something about it, sign up for the SEIU 721 Capital Stewardship Committee.
More Questions?
Useful Contacts
Los Angeles County LACERA
Phone: (800) 786-6464 or (626) 564-6132
City of Los Angeles LACERS
Phone: (800) 779-8328 or (213) 473-7200
Los Angeles Dept. of Water and Power Retired Employees Association
Phone: (800) 367-7164 or (213) 367-1712
Ventura County VCERA
Phone: (805)339-4250
Santa Barbara County SBCERS
Phone: (805) 568-2940
Riverside County CalPERS*
NOTE: There are numerous numbers for CalPERS. Phone numbers listed here.
*CalPERS covers all Riverside County members of SEIU 721 and all municipal workers in the Local except Los Angeles City workers, who are covered by LACERS.
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