2014 Annual Report

Terry Agoto2014 Annual ReportOn behalf of the LAPP Board, I am pleased to share LAPP's 2014 Annual Report.

When you take a few minutes to read through the report you will see LAPP had a very successful year with Fund assets growing to $30.8 Billion, a 16.2% increase over the previous year. Based on audited financial statements, the Plan's funded position improved considerably in 2014, ending the year at 93% funded up from 85% when the year began.

Our investment returns for the year were 11.4%, after expenses, making it the third year in a row LAPP has experienced double-digit returns. Though pension liabilities continue to grow, the rate of growth slowed in 2014, putting us in a stronger position to manage risk facing the Plan as we recover from the losses experienced in the wake of the 2008 global recession.

While optimistic for continued growth, the LAPP Board continues to take a prudent approach to managing risk with a strategy focused on holding our gains and providing a cushion against future risks. As we go through our annual valuation process with our actuary this month we will get a better picture of the Plan's liabilities, and thus our "true" funded position, once we see the actual demographic and economic experiences of 2014.

You can read more about the Board's strategies for funding, investments and risk management in the Board Discussion and Analysis section of the report.