WATER AND POWER EMPLOYEES’ RETIREMENT PLANSUMMER 2017

Will you be financially prepared for a long retirement? Arthur’s story is a reminder that our retired members are enjoying long and active lives. According to financial advisors, the goal is to have 70-90% of your current salary in retirement. We encourage you to develop an action plan early in your career and to take advantage of the ways to supplement your retirement income, including Additional Annuity program, the Deferred Compensation Plan, and other financial tools, or attend an Early/Mid-Career Seminar.

Our member, Arthur DeWalt, retired as a Power Switchboard Operator on April 1, 1968, with over 29 years of service. He became a member of the Water and Power Employees’ Retirement Plan on October 1, 1938, which is the date the Plan became effective. At 104 years of age, Arthur is currently the longest living retiree and has been receiving a retirement allowance for the past 49 years!

Arthur was born in Derry, Pennsylvania, in 1913. At the age of 20, he, along with two of his five older sisters and his parents, moved to the Los Angeles area. He worked at a newspaper and various other jobs before he came to LADWP. An interesting fact Arthur recalls was being told he would need to have his teeth fixed before being hired. After retiring from LADWP in 1968, he and his late wife, Hazel, moved to Oroville, California, where he worked briefly at the now famous Oroville Dam.

Arthur remains active and recently renewed his driver’s license for another five years! He is alert, maintains a great sense of humor, and enjoys his life at the Pacifica Retirement Home. We are thankful to Arthur and Grace Vogel (Niece) for taking the time to speak with us. It is great to know that our retired members are living active lives and enjoying a long retirement.

HOW DOES SUSPENSION OF RECIPROCITY AFFECT YOU?Are you considering a career change? Whether it is a transfer to another City department or outside the City, both Tier 1 and Tier 2 members could be affected by the suspension of reciprocity, which began on January 1, 2014. Retirement contributions can no longer be moved to and from systems as you transfer between LADWP and the City. Your contributions will stay on deposit with the respective retirement system, until you separate from service due to retirement, resignation, or termination. The combined years of department service from both systems will be used to qualify you for retirement at LADWP.

If you are considering a transfer to the City, please contact the Retirement Plan Office to schedule a specialized one-on-one counseling to discuss how this may affect your retirement benefits, or keep an eye out for our upcoming Brown Bag Lunch Q&A.

2017 MANAGEMENT AUDITThe Retirement Board and staff participated in a management audit of the Plan by Aon Hewitt Investment Consulting, Inc. The auditors concluded that the Plan is “generally operating in an efficient and economical manner.” There were many positive highlights in the administration of the Plan:

• Proper controls over payments and disbursements,

• Timely payments to members and beneficiaries,

• Significantly lower administrative costs compared to local peer funds and groups nationwide,

• Strong investment results relative to the benchmark,

• Appropriate actuarial methodology and assumptions, and

• Appreciation of fiduciary responsibility and continuing education.

To see the final report of the “2017 Management Audit of the Los Angeles Water and Power Employees’ Retirement Plan” visit our website under Publications.

RETIREE PROFILE

Specialized one-on-one counseling is available by appointment for:

• Transfers to/from LADWP and the City • Members facing life-threatening

conditions • Supplemental Family Death Benefit

(SFDB)/adult disabled children• Pre-payment for death and disability

coverage• Divorce• Power of Attorney

Retirement Plan Office, JFB Room 357Monday through Friday7:00 a.m. to 4:00 p.m.

Toll Free Number (800) 367-7164Reception (213) 367-1712Retirement (213) 367-1715

Death Benefit (213) 367-1721 Disability (213) 367-1680Membership (213) 367-1695

CONTACT INFORMATION

RETIREMENT SEMINAR UPDATEYou may have noticed Retirement Seminars are filling up faster than usual. Due to limited conference room availability, we have had to temporarily reduce our class size, until approximately January 2018. Please be patient and continue to contact your Division’s Training Coordinator to enroll. If you have questions about your retirement benefits, come see us in our office or check out the following resources:

• Informational Table 1st & 3rd Tuesdays 9:00 – 11:00 a.m., JFB A-level• Retirement Information System (RIS) and updated Tier 1 &Tier 2 Publications

available on our website.

You qualify for Disability and Death benefits after becoming a Full Member of the Plan, which is on the first day of the payroll period following completion of 26 weeks of continuous service with LADWP, or if transferring from the City, the first day of the payroll period following your change in employment after completing 26 weeks of continuous membership with LACERS and/or LADWP combined. Deductions are made from your paycheck for Temporary Disability, Permanent Total Disability, and Death Benefits.

If you are on leave of absence without pay, your coverage will NOT continue automatically, unless you pay for coverage in advance. You may continue benefit coverage for up 13 payroll periods while on leave without pay, provided premiums are paid in advance. Please contact the Disability Section to make arrangements and plan for your benefits coverage while on an unpaid leave of absence.

DISABILITY AND DEATH BENEFITS COVERAGE WHILE ON LEAVE OF ABSENCE

FUN FACTS The current number of Tier 2

members is 2,446 of 9,880 Active Members or 25% of the total workforce.

The current largest single Additional Annuity balance is approximately $320K.

Prior to November 1, 1980, the maximum death benefit for retired members was $10,000. Now, it’s $20,000.

Prior to December 23, 1974, female employees paid a retirement contribution rate of 114.84% of the male rate. Now, the rates are equal for male and female members.

Prior to July 7, 1977, the mandatory retirement age for employees was the first day of the calendar month which next follows the person’s sixty-fifth birthday. Now, there is no mandatory retirement age. You can work as long as you want.

Website: http://retirement.ladwp.com Email: retire@ladwp.com