Hermosa Beach has $14 million in unfunded pension liabilities
The City of Hermosa Beach, with $14 million in unfunded pension liabilities, was one of five municipalities in Los Angeles County singled out by a civil grand jury for a cautionary analysis of high pension costs. Hermosa was singled out for an in-depth analysis of its pension obligations, after a countywide look at cities’ pension funds, according to a grand jury report released late last week. The grand jury has authority under state law to investigate wide ranging matters of “civil concern,” including the management of entities within the county. “The City of Hermosa Beach pays among the highest retirement system employer contribution rates in the county and pays the highest employer contribution rate for its CalPERS [California Public Employee Retirement System] police safety plan,” the report stated. “In addition, the city picks up the full amount of the employees’ contribution at 7 percent of salaries for miscellaneous employees and 9 percent for uniformed fire and police employees,” it stated. The amount of the employees’ contribution to a pension fund that is “picked up” by the city is set in labor negotiations. The report noted that the city has taken some cost-cutting…
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