Date of Conferral

2020

Degree

Ph.D.

School

Public Policy and Administration

Advisor

Tamara A. Mouras

Abstract

Pension benefits are important incentives to attract public sector workforces. Los Angeles County cities have faced budgetary pressures due to increases in unfunded accrued pension liabilities (UAPL) linked to improved salaries and benefits without budget considerations. Los Angeles County cities contract with California Public Employees’ Retirement System (CalPERS) to provide retirement benefits under city-specific employee retirement contracts. Complex decision-making processes to improve benefits and salaries require interaction between city councils, management, unions, and CalPERS. The purpose of this quantitative study was to determine the relationship between the ability to raise revenues and to pay for annual required contribution of cities in Los Angeles County, controlling for household income, general fund per capita revenue, and general fund per capita expenditures. Ostrom’s institutional analysis development theory guided this study. Data were collected from 34 Los Angeles County cities that are CalPERS members and participate in the California employers’ benefit retirement trust. A factorial analysis was conducted to test for significance of variance. Findings illustrate that salary increases had a direct effect on UAPL increases. Regardless of the cities’ ability to raise revenues, general fund revenues did not play a significant role in UAPL variation; however, increases in covered payroll had a greater role increasing UAPL effects. Study findings may be used by public leaders specific to improve needed structural changes in retirement benefits, thus improving a city’s fiscal sustainability and creating a sustainable approach to UAPL deficit reduction.

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