WATER AND POWER EMPLOYEES’ RETIREMENT PLAN SUMMER 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 AUDIT The 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