Los Angeles Council Seeks Probe of Pension Program

Feb. 8, 2018
Los Angeles city officials want to weed out fraud in the DROP firefighter and police pension program.

Feb. 08--Five Los Angeles city council members have called for investigation and reform of a program that pays aging cops and firefighters almost double at the end of their careers while allowing them to take lengthy injury leaves, costing taxpayers hundreds of millions of dollars.

The council members are responding to a Los Angeles Times investigation published Sunday, which showed that nearly half of the participants in the city's Deferred Retirement Option Plan-- better known as DROP-- had taken such leaves in the last decade, for injuries ranging from cumulative ailments like carpal tunnel syndrome and high blood pressure, to a fall from a defective office chair.

In a motion filed Wednesday, Councilmember Mitchell Englander referred to The Times' investigation, which he said presented "several egregious examples of abuse, and likely fraud."

The motion, seconded by four of Englander's colleagues, called it "critical that [the] City investigate these allegations and take steps to prevent abuses in order to protect both taxpayer funds and the integrity of the program."

Specifically, Englander's motion called for the city administrative officer to report on worker's compensation issues within DROP, and "the current status of the DROP program" in general.

In a statement to The Times, Englander said that the city needed to not only "be more aggressive in investigating cases of fraud and abuse, but we must revisit the fact that the DROP program was billed as being revenue neutral when it was presented to and passed by the voters. A thorough review of the program is needed to determine if that is actually the case."

The motion was seconded by City Council President Herb Wesson, and Councilmembers Paul Krekorian, Paul Koretz, and David Ryu.

In his own statement, Councilmember Ryu said "we cannot defend the indefensible," and that The Times' investigation made it clear "that abuses of disability leave must be eliminated."

"What concerns me most is that some employees may be using this program to commit fraud against taxpayers and the city," said Krekorian, who is chair of the Budget and Finance Committee.

In a Wednesday letter to Mayor Eric Garcetti and the city council, the Los Angeles Police Protective League pledged to work with the city "by increasing transparency and accountability to this important crime-fighting program" and stated that any DROP participant "found to have defrauded or abused the program should be prosecuted to the fullest extent of the law."

The Times reported that no member of DROP--which, according to its supporters, is valuable because it keeps seasoned veterans on staff for up to five more years--has ever been charged with workers' compensation fraud.

Garcetti's spokesman said that the mayor "believes Councilmember Englander is asking the right questions, and they ought to be answered. He will work with the Council to review the program."

___ (c)2018 the Los Angeles Times Visit the Los Angeles Times at www.latimes.com Distributed by Tribune Content Agency, LLC.

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