Month: December 2025

SPECIAL NOTICE: This article only applies to eligible retired members of Los Angeles Fire and Police Pensions and respective Qualified Surviving Spouses/Domestic Partners.

The Centers for Medicare and Medicaid Services (CMS) has announced the new standard Medicare Part B monthly premium for 2026 is $202.90. However, some pensioners may pay less than this amount, as CMS does not increase a Medicare Part B participant’s premium by more than the dollar increase of their Social Security cost of living adjustment.  This is known as the “Hold Harmless Rule” and applies to all participants who have their Medicare Part B premium deducted directly from their Social Security check and who do not pay Income Related Monthly Adjustment Amounts, or IRMAAs.

• If you are a new Medicare Part B enrollee in 2026, you will be reimbursed the standard monthly premium of $202.90 and do not need to provide additional documentation to LAFPP.     
• If you began receiving the Medicare Part B premium reimbursement prior to 2026, LAFPP will notify you by email or mail with instructions on how to update your Part B premium amount on record.  

To update your Part B reimbursement for the 2026 calendar year: 

Please submit a copy of:

• The first page of your Social Security New Benefit Amount statement for 2026; or
• Your next Medicare monthly or quarterly billing statement (if you do not receive Social Security benefits)

To update your Part B reimbursement for premiums paid during the 2025 calendar year: 

Please submit a copy of your:

• Social Security Form 1099 for 2025; or
• Your first Medicare monthly or quarterly billing statement for 2025

Please redact any birthdate or SSN information and send all documents to LAFPP’s Medical and Dental Benefits Section via:

• MyLAFPP Member Portal;
• Email to: mdb@lafpp.com;
• Fax to: (213) 628-7782; or
• Mail to: Department of Fire and Police Pensions, Attn: Medical & Dental Benefits, 701 E. 3rd Street, Suite 200, Los Angeles, CA 90013

Due to the anticipated high volume of submissions, it may take approximately three months to process your Part B documentation and update your reimbursement amount on your LAFPP pension payment.

As a reminder, Part B reimbursement only applies to Retired Members or Qualified Survivors who are eligible for an LAFPP health subsidy and are enrolled in both Medicare Parts A and B. Any additional Part B penalties or fees charged by CMS are not eligible for reimbursement.

Frequently Asked Questions

1. How do I know if I am eligible for Part B reimbursement?

You must be a retired member or qualified survivor who is receiving a pension, is eligible for a health subsidy, and enrolled in both Medicare Parts A and B.

2. What document do I need to submit to receive my correct Part B reimbursement amount?

You must submit a copy of your Social Security benefits verification statement (your “New Benefit Amount”) or a copy of a 2026 Centers for Medicare and Medicaid Services (CMS) billing statement.        

3. My spouse (non-LAFPP member) is currently enrolled in Medicare Parts A and B.  Does he/she need to submit Medicare Part B premium documentation?

No.  Only the retired member or Qualified Survivor enrolled in Parts A and B is eligible for Medicare Part B premium reimbursement.

4. I received a letter stating that I pay a higher Part B premium based on my income level (Income-Related Monthly Adjustment Amount – “IRMAA”). May I submit this letter as proof of my Part B premium?

Yes.  You may submit a copy of the first page of your IRMAA letter if it contains your name, address and 2026 monthly Medicare Part B premium deduction.  LAFPP does not reimburse IRMAA fees, so your Medicare Part B reimbursement will not exceed the 2026 standard monthly premium of $202.90.

5. I receive a monthly Social Security payment, but I did not receive/cannot locate my “New Benefit Amount” Statement from Social Security.  What should I do?

You may call or visit your local Social Security Administration (SSA) office. You may also access proof of your 2026 Medicare Part B basic premium online at the SSA website: www.ssa.gov/myaccount. You may be required to create or register your SSA account. Please note that once you have an online account, your SSA notifications will be emailed to you.

6. When do I need to provide LAFPP documentation of my Part B Premium?

You may submit your documentation as soon as it is available and receive a retroactive reimbursement for up to twelve (12) pension roll months from the date your submission is received.

If you have additional questions about your Medicare Part B reimbursement, please contact the Medical and Dental Benefits Section at (213) 279-3115, toll free at (844) 88-LAFPP ext. 3115, or via email to mdb@lafpp.com.

On December 4, 2025, the Board of Fire and Police Pension Commissioners approved new maximums for the Medicare health subsidy, the non-Medicare health subsidy for Qualified Surviving Spouses/Domestic Partners, as well as the dental subsidy. These new maximum amounts will be effective January 1, 2026.

Medicare Health Subsidy Benefit

The maximum Medicare Health Subsidy increased to $633.08, effective January 1, 2026. The maximum Medicare Health Subsidy is set at the highest monthly premium of an approved plan supplemental to Part A of Medicare available to retired members of the Los Angeles City Employees’ Retirement System (LACERS), pursuant to the City of Los Angeles Administrative Code Section 4.1154(c).

A Medicare Health Subsidy is provided to eligible retired members or Qualified Surviving Spouses/Domestic Partners who are enrolled in both Medicare Parts A and B. The monthly subsidy that you may receive is based on the number of whole years of service at the time of retirement (or DROP entry) as shown in the chart below.  

Member’s Whole Years of Service	Maximum Medicare Health Subsidy*
20 or more	The lesser of: $633.08 or 100% of the single-party premium of the participant’s health plan.
15 – 19	The lesser of: $569.77 or 90% of the single-party premium of the participant’s health plan.
10 – 14	The lesser of: $474.81 or 75% of the single-party premium of the participant’s health plan.
Less than 10	No subsidy; Tier 6 retirees see below.**

Qualified Survivors Non-Medicare Health Subsidy Benefit

The non-Medicare health subsidy maximum for Qualified Surviving Spouses/Domestic Partners (Qualified Survivors) will increase from $1,117.28 to $1,161.91 per month, effective January 1, 2026.

If you currently receive a survivorship pension from LAFPP, you may also be eligible for a health subsidy if the following qualifications are met:  

• You must be enrolled in a Board-approved health plan (one offered by Los Angeles Firemen’s Relief Association (LAFRA), Los Angeles Police Relief Association (LAPRA), UFLAC or Fire & Police Pensions) or participate in the Health Insurance Premium Reimbursement Program.
• The sworn member had at least 10 years of service.
• The sworn member received, or was eligible to receive, a health subsidy at the time of death; otherwise, you will be eligible when the sworn member would have been 55 years old.
• If you receive a survivorship benefit pursuant to a purchase made by the retired member under the Survivor Benefit Purchase Program for Retirees, you are not eligible for a health subsidy. 

Retired Member Dental Subsidy Benefit

The maximum retiree dental subsidy will remain the same at $42.93 per month, effective January 1, 2026. Per City of Los Angeles Administrative Code Section 4.1164(b), the maximum dental subsidy for retirees shall be the lower of LACERS’ maximum dental subsidy or any amount allowed active members of any LAFPP Tier.

You are eligible for a dental subsidy if you are retired with at least 10 years of service, are at least 55 years old, and are enrolled in a Board-approved dental plan. If you retire with more than 25 years of service, your eligibility is capped at 100% of the maximum subsidy. If you retire with 10 to 24 years of service, your subsidy is calculated at 4% of the current maximum for each whole year of service.

Note: Qualified Survivors are not eligible to receive a dental subsidy from LAFPP but are allowed to enroll in a Board-approved dental plan.

Questions

If you would like more information about LAFPP’s Health and Dental Subsidy program eligibility requirements, please contact the Medical and Dental Benefits Section at (213) 279-3115. Information is also available in the Retired Members section of the website.

We invite you to read our newsletter filled with announcements and benefit topics including 2026 Health and Dental Subsidy updates, Tax Season 1099-R Form information and more.

Los Angeles Fire and Police Pensions (LAFPP) is pleased to announce the results of the System’s annual actuarial valuation, conducted by the Board’s independent actuary. This yearly review evaluates the System’s assets and liabilities and determines the contribution required from the City, including the Harbor and Airports departments, for the upcoming fiscal year.

Continued Strength and Stability

The actuarial report confirms LAFPP’s strong financial position, with the combined funded ratio for pension and health benefits increasing to 97.6%, up from 97% last year. This marks the eighth consecutive year of improvement for the System.

Key results include:

• Pension benefits: 100.5% funded (up from 99.8%)
• Retiree health benefits: 78.1% funded (slightly down from 78.2%)
• Total unfunded liabilities: Reduced from $955 million to $803 million

These favorable results reflect LAFPP’s long-term stability, disciplined funding practices, and strong investment performance.

Tier 5 Member Contribution Rate Reduction

Because the pension funded ratio now exceeds 100%, active Tier 5 members will receive a reduction in their regular pension contribution rate from 9% to 8%, effective July 1, 2026. The City will pay the additional 1% on behalf of Tier 5 members. The reduced contribution rate will appear beginning with the July 22, 2026 paycheck.

This change applies only to active Tier 5 members—those hired between January 1, 2002, and June 30, 2011, and members of Tiers 2, 3, and 4 who elected to transfer to Tier 5 during the 2002 enrollment period.

City Contribution Rate Adjustment

The City’s combined contribution rate, payable July 15, 2026, will increase slightly from 35.64% to 35.71% of sworn payroll. The increase is driven primarily by updated healthcare trend assumptions—including anticipated rises in Medicare Part B premium reimbursements—and higher-than-expected salary growth among active members. These impacts were partially offset by stronger-than-expected investment returns and lower starting premium and maximum health subsidy amounts.

Explore the Full Report

The full actuarial valuation reports are available on the Financial Reports page of the LAFPP website.