Pension goodies to cost LA workers jobs

A new round of layoffs could be required at Los Angeles City Hall next year if estimates of future returns on pension fund investments are reduced, Mayor Antonio Villaraigosa warned Tuesday.

The City Employees’ Retirement System pension board met Tuesday to consider decreasing the assumed annual rate of return for its $11-billion investment portfolio from 8% to 7.75%. The decision was postponed, however, after Villaraigosa and four City Council members sent a last-minute letter warning that such a move could cost the city budget $50 million next year. LA Times