Timeline
Related documents
What is Being Proposed?
The Personnel and Hiring Committee is recommending that the City Council note and file (formally acknowledge and record) the August 7, 2025 review of the LAwell Program Employee Benefits Trust Fund for fiscal year 2024-25. This is a routine administrative action to document the fund's status rather than a new policy or funding decision.
Why?
The LAwell Program Employee Benefits Trust Fund operates as the central account managing health insurance and benefits contributions for city employees. Annual reviews ensure the fund is operating properly and efficiently in serving approximately 27,000 city employees and 33,000 dependents. The fund was formally established in 1997 under Los Angeles Administrative Code to receive and distribute employer and employee contributions to benefit service providers.
Key Details
Coverage: ~27,000 employees and 33,000 dependents Governance: Managed by the Joint Labor-Management Benefits Committee (JLMBC), established in 1990, comprising five management and five labor representatives Fund Purpose: Serves as a pass-through account for premium payments to benefit providers, funded by General Fund transfers, proprietary transfers, employee contributions, and interest earnings Committee Vote: Passed 2-0 (McOsker and Rodriguez voted YES; Soto-Martinez was absent) on October 24, 2025
Impact
This action has no fiscal impact on the city budget and is primarily an informational filing. It maintains transparency about how the city manages employee benefits funding and ensures the JLMBC's administration of the program continues to align with the stated mission of providing competitive benefits at reasonable cost.
What is Being Proposed?
The Personnel Department is asking the City Council to note and file a financial review of the LAwell Program Employee Benefits Trust Fund for fiscal year 2024-25. This is a routine annual reporting requirement mandated by Los Angeles Administrative Code to document all money flowing into and out of the employee benefits fund.
Why?
The Trust Fund, established in 1997, serves as the central account managing health and benefit premiums for approximately 27,000 City employees and 33,000 dependents. By law, the Joint Labor-Management Benefits Committee (JLMBC)—composed of five management and five labor representatives—must report annually to the City Council on all receipts, expenditures, and the purposes of spending to ensure transparency and proper fund management.
Key Details
For FY 2024-25, the Trust Fund received approximately $491.4 million in revenues (primarily from employer and employee contributions) and paid out $493.9 million to benefit service providers and administrative costs. As of June 30, 2025, the fund had $1.7 million in available balance after accounting for liabilities and maintaining a required 12.5% reserve (approximately $5.4 million). The LAwell Program covers medical, dental, vision, life insurance, disability, and wellness services through multiple providers including Kaiser Permanente, Blue Shield, and others.
Impact
This report affects all City employees enrolled in the LAwell Program by documenting how their benefit contributions are managed and spent. The healthy fund balance and adequate reserves indicate the benefits program is financially stable and able to continue providing competitive health coverage to the City's workforce.