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Paul Koretz
L.A. pension agency decision deepens city's budget hole
L.A. pension agency decision deepens city's budget hole

A Los Angeles city pension agency voted Tuesday to rein in its long-range earnings forecast, putting in place changes that could throw the city's budget $50 million deeper into the hole next year. The City Employees' Retirement System board responded to financial consultants who said the agency should no longer assume that its investment portfolio — money that helps cover the cost of employee pensions — will deliver an average yearly return of 7.75%. That decision could make it harder for Mayor Eric Garcetti and the City Council to restore services trimmed during the recession, since it forces them to set aside more money in the short term for retirement benefits....

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