Category: Newsroom

We invite you to read our newsletter filled with announcements and benefit topics including the City of Los Angeles’ Retirement Incentive Pay (RIP) bonus, Active member and DROP participant statements available online, and the new rollover-via-wire-transfer option for DROP participants.

Click below to access the electronic copy of the newsletter.

Your health is important to us and we want to continue to help stop the spread of COVID-19. LAFPP offers virtual counseling sessions for members who are preparing to enter Service Retirement/DROP or exit DROP. Here are several key benefits as to why you should choose a virtual counseling session. Click here to view the document.

DROP Participants who are exiting, there is now a new feature available to you!

You now have the option to have your DROP funds rollover via wire transfer, for a minimal fee (currently $35 per wire transfer). Your rollover funds will reach your financial institution at a much faster rate. Please consult with the financial institution where you plan to rollover your DROP funds for details. They can advise you whether they can accept wire transfers.

If you are also taking a lump sum payment, that amount will be direct deposited into your account.

If you have questions, please contact the DROP/Service Pensions Section by phone at (213) 279-3100 or by email at dropsp@lafpp.com.

Available in MyLAFPP!

Active members! View your 2020 Annual Member Statement in MyLAFPP.

View and/or print your 2020 Annual Statement online. This statement summarizes your individual pension-related information as of December 31, 2020, 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.

Terminating employment with the City does not always mean a total loss of your contributions. Read below to learn about your options. 

ACTIVE MEMBERS

If you choose to resign from sworn service with the City of Los Angeles for any reason, or if you are involuntarily terminated, you have options available to you and may involve one of the following – depending on the provisions of your plan tier:

• Apply for a service pension (if eligible)
• A refund of all pension contributions, plus interest gained (except for Tier 4 members)
• Deferred service pension upon reaching age 50, if you meet eligibility requirements
• File a timely application for a disability pension.

APPLY FOR A SERVICE PENSION – Eligibility

You may apply for a Service Pension once you meet the following minimum requirements:

TIER 3 Age 50 and at least 10 Years of Service

TIERS 2 & 4 Any age with at least 20 Years of Service

TIERS 5 & 6 Age 50 and at least ​20 Years of Service

For more information about applying for a Service Pension, please contact the DROP/Service Pensions Section at (213) 279-3100 or email at DROPSP@lafpp.com.

REFUND OF PENSION CONTRIBUTIONS – Tiers 2, 3, 5 and 6 Members

Upon termination/resignation, you may elect to receive a full refund of your contributions, plus accrued interest, while you were employed by the City. LAFPP will receive a Form 41 as formal notice of your termination of employment from your department within four to six weeks after termination.

You may then opt to receive a lump-sum payment, which can be rolled over to an individual retirement account (IRA) or other qualified plan, or received as a cash payment less mandatory federal taxes.

Important factors to consider:

• If you receive a refund of contributions, you forfeit all rights to any pension benefits as described in the City Charter and Los Angeles Administrative Code, including the right to receive a disability pension.
• A refund of contributions may be subject to federal income tax withholding on the taxable portion (state tax withholding may also apply) and an early-withdrawal penalty. Please note that some members have both pre-tax and post-tax contributions.
• A direct rollover is a direct payment to a traditional IRA or eligible employer plan that will accept it. You are not taxed on these funds until you take distribution of them. An early withdrawal penalty does not apply unless you take early distribution from the tax qualified plan to which the funds were transferred. Specific rules apply.
• If your pension contributions are subject to a court order that awards a former spouse his/her community property share or are subject to a wage assignment for child/spousal support, the amount refundable to you will be affected.
• Your contributions do not earn interest from LAFPP after you terminate active service. The rules that apply to your refund of contributions can be complex. You may wish to consult with a professional tax advisor who can assist you in determining how to take a distribution that is in your best interest. If you would like to receive a summary of the rules contained in our Special Tax Notice Regarding Plan Payments and the Distribution Election and Rollover Form in advance, please contact the Active Member Services Section at (213) 279-3140 or by email at AMSsection@lafpp.com

TIER 4 MEMBERS: If you terminate employment for any reason other than disability, you are not eligible for a refund of contributions.

For more information about the refund process, please visit the FAQ section of our website or call the Active Member Services Section at (213) 279-3140 or by email at AMSSection@lafpp.com. You may also view your pension contributions and interest balance by logging into your MyLAFPP account.

DEFERRED PENSION OPTION – Tiers 3, 5 and 6 only

If you have the required minimum years of service but are not yet age 50, a deferred service pension allows you to terminate active service and collect a pension when you turn age 50. You may elect a deferred pension if you are a:

• Tier 3 member with at least 10 years of service
• Tier 5 member with at least 20 years of service
• Tier 6 member with at least 20 years of service

To receive this benefit, you must leave your contributions in the system and file a written, irrevocable election with LAFPP within three years of your termination date or lose the right to receive a deferred service pension.

If you elect to receive the deferred service pension, we will contact you approximately six weeks before your 50th birthday to begin the pension application process in order to have your pension approved by the Board of Fire and Police Pension Commissioners immediately following your birthday. Please keep your address current in our records so that we may contact you and begin the process without delay.

Important factors to consider:

• Tiers 5 and 6 Members – If you elect a deferred service pension, your pension is calculated using Tier 3 pension percentages, which are lower. However, you remain a Tier 5 or 6 member and will retain the Cost of Living Adjustment Bank.
• If you die after you terminate active service and before you turn age 50, your qualified survivors do not receive a survivor’s pension. Instead, there will be a refund of contributions, plus interest, to your designated beneficiary.

TIER 4 MEMBERS: If you terminate employment for any reason other than disability, you are not eligible for a deferred pension.

For more information about Deferred Pensions, please contact the Active Member Services Section at (213) 279-3140 or by email at AMSSection@lafpp.com.

APPLY FOR A DISABILITY PENSION – All tiers

Prior to receiving a refund of contributions, you also have the right to file an application for a disability pension. However, you must file your application within one year of your termination date (this deadline may be extended if you have a pending case with Workers’ Compensation). It is important to remember that the acceptance of a claim by Workers’ Compensation does not guarantee a disability pension.

In the event you are not granted a disability pension, your options remain to elect a deferred service pension (assuming you meet the eligibility requirements) or to receive a refund of pension contributions.

For more information about filing for a disability pension, please contact the Disability Pensions Section at (213) 279-3165 or Disability@lafpp.com.

DROP MEMBERS

WHAT HAPPENS IF I RESIGN WHILE IN DROP?

Resigning from sworn employment with the City will automatically terminate your participation in DROP and you will be deemed to have retired. You will begin receiving your monthly retirement benefit and will have to decide how you wish to have your DROP account distributed.

WHAT HAPPENS IF I AM TERMINATED WHILE IN DROP?

Being terminated automatically ends your participation in DROP. Upon completion of the required DROP exit/account distribution documents, and subject to the monthly pension payroll processing deadlines, you will receive your accumulated DROP funds up to your employment termination/exit date. Your monthly service pension payments will usually begin the month following your DROP exit date.

If you are appealing your discharge, at your request, distribution of your DROP account will be withheld while the appeal of your discharge is pending.

Should you be reinstated, you may continue to participate in DROP if the account has been withheld, and the original period of DROP participation will continue but cannot exceed the original 5-year/60-month limit (plus any additional months where your DROP participation was suspended, applicable to members who enter DROP on or after February 1, 2019 – up to 30 additional months).

If the DROP funds have been distributed, you cannot return to sworn employment or continue in DROP even if your termination is overturned.

For more information about separation from DROP, please contact the DROP/Service Pensions Section at (213) 279-3100 or via email at DROPSP@lafpp.com. You may also visit the How to Exit DROP page on our website.

For the safety of our members and staff, LAFPP’s offices will be closed to visitors until further notice. We recommend that you continue to check our website for the latest updates on the status of our in-person operations.

All confirmed in-person appointments previously scheduled will be honored or changed to a virtual session upon request. Virtual appointments, which provide flexibility and convenience, can be scheduled at any time during LAFPP’s normal business hours. MyLAFPP is available to members 24/7. You can visit our MyLAFPP Helpdesk for more information on self-services.

We value the health and safety of all. We will continue to monitor the situation and provide updates on any future changes, as necessary. Thank you for your understanding and patience.

VIRTUAL MEMBER COUNSELING 

Member counseling appointments will continue to be provided in group sessions via Zoom. Zoom has proven to be popular with members as a convenient, efficient, and effective format. This format also allows spouses, domestic partners, or other guests the opportunity to participate in the session either together or from different physical locations. Here are 6 Benefits of Virtual Counseling Sessions.

DROP BOX

There will continue to be a Drop Box available in the first-floor lobby if you need to deliver any forms or documents. The Drop Box is secure and emptied throughout the day and at the close of business each day (4:30 PM). 

BOARD MEETINGS

We highly encourage you to continue to participate virtually by:

• Phone Dial-in via Zoom: Listen to the Board meeting with the ability to provide public comments via telephone.
• Council Phone System: Meeting is broadcast for live audio.
• Livestream: Web Stream for live audio only.

You can find more details on the Board of Commissioners Meetings Page.

SAFETY GUIDELINES

For those admitted into LAFPP offices, there are safety measures in place for all members and staff.

Automatic temperature monitoring – your temperature will be monitored upon entrance to the lobby. Any person who registers a temperature above 100.4 degrees (based on CDC guidance) will not be allowed to enter and will need to reschedule their appointment.

• Anyone who has COVID-19 symptoms should not enter the building.
• Masks must be worn for the entire visit, regardless of vaccination status.
• Members with appointments for in-person counseling cannot bring spouses or guests to the session.
• Walk-in members and visitors (i.e., those without appointments) will not be allowed to enter the building at this time.

We will continue to monitor suggested practices and safety guidelines and will implement changes accordingly. While we have adjusted our business practices, we continue to strive to provide the best service possible to our members and their families. Please periodically visit our website to stay informed of any updates to LAFPP’s Safety Guidelines and office visitations.

The new approved amount for the non-Medicare health subsidy maximum is $2,169.79 per month, effective July 1, 2023.

On April 6, 2023, the Board of Fire and Police Pension Commissioners approved a 6.0% increase to the non-Medicare health subsidy. With the increase to the non-Medicare health subsidy, many retired members under age 65 will experience lower out-of-pocket costs. In fact, the maximum subsidy will fully subsidize all LAFRA, LAPRA, or UFLAC single-party and two-party non-Medicare plan premiums, as well as some family plan coverage levels for members with a non-frozen subsidy and at least 25 years of service.

Each year, the Board has the authority to increase the non-Medicare subsidy by up to the lesser of 7% or the actuarial medical trend rate for the upcoming fiscal year. The non-Medicare actuarial medical trend rate applicable to fiscal year 2023-2024 is 7.25%, therefore the Board had the authority to increase the subsidy by up to 7% this year. The approved 6.0% increase is consistent with the Board’s fiduciary duty to all members. The Board considered the following information that would potentially affect members:

• Impact to out-of-pocket premium costs for non-Medicare subsidy eligible retirees;
• Impact to retirees in multi-party Medicare plans; and
• Average premium changes among most eligible plans.

Do I qualify to receive the non-Medicare subsidy?

The actual increase in subsidy benefit per member is dependent upon eligibility and the retiree’s respective health plan premium. The approved increase to the maximum non-Medicare subsidy provides fully subsidized single- and two-party coverage for all eligible pensioners with 25+ years of service. Qualified survivors who are under the age of 65 and pensioners who are enrolled in a Board-approved HMO or PPO single-party Medicare health plan are not impacted by the maximum non-Medicare subsidy increase.

If you have questions or need more information regarding the non-Medicare Health Subsidy increase, please contact Medical & Dental Benefits at (213) 279-3115 or via email at mdb@lafpp.com.

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.