Author: Elizabeth Trevizo

The City of Los Angeles’ Human Resources and Payroll (HRP) project is currently in Phase 2 of implementing “Workday“. The Phase 2 go-live date is scheduled for June 16, 2024, and will impact how you view your paystubs and deductions.

We invite you to read our newsletter filled with announcements and benefit topics including Active member annual statements, the City of Los Angeles’ new Human Resources and Payroll (HRP) project, and more.

Click Here to view Newsletter!

On November 2, 2023, the Board of Fire and Police Pension Commissioners approved new maximums for the Medicare health subsidy, the health subsidy for Qualified Surviving Spouses/Domestic Partners, as well as the dental subsidy. These new maximum amounts will be effective January 1, 2024 through December 31, 2024.

Medicare Health Subsidy Benefit

The maximum Medicare Health Subsidy increased to $549.16, effective January 1, 2024. 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: $549.16 or 100% of the single-party premium of the participant’s health plan.
15 – 19	The lesser of: $494.24 or 90% of the single-party premium of the participant’s health plan.
10 – 14	The lesser of: $411.87 or 75% of the single-party premium of the participant’s health plan.
Less than 10	No subsidy; Tier 6 retirees see below.**
*For members who: (1) entered DROP or retired after July 14, 2011, and (2) did not opt-in during the designated period to make the additional 2% pension contributions, the Maximum Medicare Health Subsidy is equal to the July 1, 2011 amount of $480.41.
** Tier 6 members who retire on a service-connected disability pension with less than 10 years of service may qualify for a minimum health subsidy at age 55 if

Qualified Survivors Non-Medicare Health Subsidy Benefit

The non-Medicare health subsidy maximum for Qualified Surviving Spouses/Domestic Partners (Qualified Survivors) will increase from $939.09 to $1,051.78 per month, effective January 1, 2024.

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.
• The sworn member was a Tier 6 retiree with a service-connected disability.
• 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 decrease from $43.81 to $42.93 per month, effective January 1, 2024. 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 www.lafpp.com.

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 2024 is $174.70. 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 2024, you will be reimbursed the standard monthly premium of $174.70 and do not need to provide additional documentation to LAFPP.   
• If you began receiving the Medicare Part B premium reimbursement prior to 2024, 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 2024 calendar year: 

Please submit a copy of:

• The first page of your Social Security New Benefit Amount statement for 2024; 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 2023 calendar year: 

Please submit a copy of your:

• Social Security Form 1099 for 2023; or
• Your first Medicare monthly or quarterly billing statement for 2023

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

• 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 and 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 2024 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 2024 monthly Medicare Part B premium deduction.  LAFPP does not reimburse IRMAA fees, so your Part B reimbursement will not exceed the 2024 standard monthly premium of $174.70.  

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 2023 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. 

We invite you to read our newsletter filled with announcements and benefit topics including 2024 Cost Of Living Adjustment & 2024 non-Medicare Health Subsidy Increase.

The Cost-of-Living Adjustment (COLA) is 3.4% for 2024 and was approved by the Board of Fire and Police Pension Commissioners on April 18, 2024. The COLA will be effective July 1, 2024, and all eligible pensioners and Deferred Retirement Option Plan (DROP) participants will receive an increase beginning with the pension payment/DROP account deposit dated July 31, 2024. For new pensioners and DROP entrants in Tiers 3-6, the first year’s COLA is prorated based on the number of complete months since the pension effective date, therefore these members may not receive the full 3.0%.

• Tiers 1 & 2 retirees and beneficiaries will receive 3.4%.  Tier 2 DROP participants will receive 3.0%.
• Tiers 3 & 4 retirees, beneficiaries, and DROP participants will receive up to 3.0%. 
• Tiers 5 & 6 retirees, beneficiaries, and DROP participants will receive up to 3.0% and the remaining 0.4% will be stored in the COLA bank*, which can be applied in future years when the CPI is below 3%. 

*Must have retired or entered DROP with a pension effective date prior to June 2, 2024, in order to have an available COLA bank balance.

Available in MyLAFPP!

Active members (excluding DROP participants)! View your 2023 Annual Member Statement in MyLAFPP.

View and/or print your 2023 Annual Statement online. This statement summarizes your individual pension-related information as of December 31, 2023, including service credit, pension estimates (if eligible to retire), contributions and interest, spouse or domestic partner information, and beneficiary designation.

Follow these steps to access your statement:

1. Log in to MyLAFPP. 
2. Click on Forms & Correspondence.
3. Click on Statements.
4. Click on the word “Document” next to the paperclip symbol. Your statement is provided in a PDF format.

If you have not signed up or have questions regarding MyLAFPP, please visit our MyLAFPP Help Desk.

For questions concerning your statement or copies of your Annual Statements for years prior to 2018, please contact the Active Member Services Section at (213) 279-3140 or by email at amssection@lafpp.com.

LAFPP is pleased to present our 2023 Annual Report. This report provides financial information, such as the department’s budget summary, investment performance, asset allocation data, plan actuarial data, statistical information, and a summary of plan provisions for the fiscal year ending June 30, 2023.

Some of the highlights in this year’s report include:

• The System serves approximately 27,478 members, including active, DROP, deferred vested, and retired members and beneficiaries.
• Pension benefits were actuarially funded at 99.5% (change of +1.5%) and health subsidy benefits were funded at 77.7% (change of +3.4%). The combined funded status for pension and health benefits is 96.8% (change of +1.8%).
• System assets totaled $29.39 billion on a market value basis.

LAFPP continues to grow as an organization as we strive to be a leader and innovator in the public pension industry. The Board and staff are committed to prudent and sound investment strategies to grow and protect Plan assets over the long-term to secure the retirement benefits of our members.

In addition to this report, our historical annual reports, actuarial valuations, and financial statements are available on the Financial Reports page of our website.

Based on the actuarial report for the period ending June 30, 2023, the combined funded ratio for pension and health benefits is 96.8%, up from 95.0% the previous year. This marks the sixth consecutive year that the combined funded ratio has increased for the System. The pension benefit funded ratio is now 99.5%, up from 98.0%, and the retiree health benefit funded ratio increased from 74.3% to 77.7%. The favorable results indicate that the Plan remains strong despite another volatile year marked by the continuing high inflation and financial market volatility.

Every year a valuation of the LAFPP fund is performed by the Board’s actuary. The valuation reviews the System’s assets and liabilities and establishes the City’s (including the Harbor and Airport Departments) contribution to the fund for each fiscal year. The City’s combined contribution rate for July 15, 2024, will decrease by 1.90% of sworn payroll, from 40.41% to 38.51%. The contribution rate decrease is due to a higher than expected return on the valuation value of assets (after smoothing) and changes in assumptions, partially offset by higher than expected COLA increases for retirees and beneficiaries and higher than expected salary increases for active members. The overall unfunded liabilities have decreased from $1.5 billion to $975 million.

The actuarial valuation reports can be found on the Financial Reports page of our website.

The Social Security Administration has designated March 7, 2024, as national “Slam the Scam” day to raise awareness of imposter scams. An imposter scam is when criminals claim to be representatives from well-known government agencies to deceive people into providing personal information or money. There are ways to protect yourself and prevent you from falling victim to these types of predators.  

Here are some tips on how to protect yourself from scammers:

• Don’t answer your phone if you receive a call from a phone number you do not recognize.
• Don’t give out personal or pension related information when you receive a call, email, text message or direct message on social media by someone saying they work for a government agency. If you do receive a call, hang up and call the official number found on the agency’s website. If you get an email or text from a government agency, you know and do business with, contact them using a website you know is real. Look up their real email address or phone number — but don’t call the number they give you or the number from your caller ID.
• LAFPP staff will occasionally call our members and beneficiaries. If you receive a call and you are not sure it is LAFPP staff, get their name, hang up and call our toll-free number found on our website to continue the conversation.
• A government agency will not threaten or pressure you to take immediate action. Nor will a government agency ask you to pay with gift cards, prepaid debit cards, wire transfers, cryptocurrency or by mailing cash.
• Don’t include any personally identifiable information (PII) in your email messages, such as Social Security numbers, dates of birth, driver’s license numbers, or addresses. 
• Do periodically update your security software and passwords. This will protect your computer and cell phone from security threats, which could expose your personal or financial information to scammers.
• Exercise caution when you receive solicitations for financial services from unaffiliated third parties. LAFPP is not affiliated with, nor do we endorse any financial planning services for retirees.  

For additional information on LAFPP’s ongoing commitment to keeping member data/information safe and secure please visit lafpp.com/cybersecurity.