The Pension Crisis Just Shattered 30-Years Of Cooperation Between LA City Agencies

antonio villaraigosa Los angeles

The most powerful agency in Los Angeles is the Department of Water and Power, and that dates back to very beginning (see: Chinatown).

Recently the DWP has been feuding with Mayor Villaraigosa over funding.

Now the DWP is rejecting a reciprocal pension agreement it signed with the city 30 years ago, reports the LA Times:

The city’s two civilian pension systems — the Water and Power Employees Retirement Plan and the City Employees’ Retirement System — reached a reciprocal agreement in 1980 that covers city workers who move between the two systems.

For example, a clerk who works 25 years in the Department of Transportation could move to the DWP and see all 25 of those service years covered by the DWP when he retires.

The DWP says it doesn’t have enough money to pay pensions for recent transfers from the city. Indeed, the city has forced the municipal utility to hire 1,600 workers in the past six years as part of a plan to avoid layoffs.

Layoffs, pension cuts, or insolvency are imminent in LA. The only question is: what intuition will break first.

Now check out the first 10 city pensions that will run out of money >

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