Audit of Valuation Results for 2004

LOS ANGELES COUNTY EMPLOYEES RETIREMENT ASSOCIATION Audit of Valuation Results for 2004 Submitted by The Segal Company April 2005 THE SEGAL COMPANY 120 Montgomery Street, Suite 500 San Francisco, CA 94104-4308 T 415.263.8200 F 415.263.8290 www.segalco.com April 5, 2005 Mr. Richard P. Bendall Chief, Internal Audit Los Angeles County Employees Retirement Association 300 North Lake Avenue, Suite 840 Pasadena, California 91101 Re: Audit of Valuation Results for 2004 Dear Mr. Bendall: We are pleased to present the results of this audit of the valuation results for 2004 for the Los Angeles County Employees Retirement Association (LACERA). The purpose of this audit was to verify the calculations done by Milliman and to offer comments on the methodology and the results. This review was conducted by Paul Angelo, a Fellow of the Society of Actuaries, Member of the American Academy of Actuaries, and an Enrolled Actuary under ERISA, and Amy S. Timmons, a Fellow of the Society of Actuaries, Member of the American Academy of Actuaries, and an Enrolled Actuary under ERISA. This review was conducted in accordance with the standards of practice prescribed by the Actuarial Standards Board. The assistance of Milliman and LACERA is gratefully acknowledged. We appreciate the opportunity to be of service to the Board of Investments and we are available ...