Category: Newsroom

Good news! Based on the actuarial report for the period ending June 30, 2020, the combined funded ratio for pension and health benefits is 88.6%, up slightly from 88.5% the previous year. This marks the third consecutive year that the combined funded ratio has increased for the System. Even though the pension benefit funded ratio is now 93.2%, down from 93.6%, the health benefit funded ratio increased from 56.2% to 59.7%. The favorable results indicate that the Plan remains strong despite a volatile year marked by the COVID-19 pandemic.

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, 2021 will decrease by 0.91% of sworn payroll, from 46.60% to 45.69%. The contribution rate decrease is due to loss layers from the June 30, 1990 and June 30, 2005 valuations being fully amortized, amortizing the prior year’s unfunded actuarial accrued liability over a larger than expected projected total payroll, a higher than expected return on the valuation value of assets (after smoothing), and health premiums and subsidies being lower than projected in the prior valuation. The overall unfunded liabilities have increased from $3.0 billion to $3.1 billion.

The results of the valuation reflect the changes in actuarial assumptions adopted by the Board on May 21, 2020. The assumption changes include, but are not limited to, a 7% annual investment rate of return, inflation of 2.75%, and adjustments to expected active member salary increases, retirement, termination, and disability incidence rates.

The approved 2020 actuarial reports can be found on the Financial Reports page of our website.

Help us shape the future of LAFPP services by filling out our survey!

In response to the COVID-19 pandemic, the offices of Los Angeles Fire & Police Pensions ceased in-person visits in March 2020 and most staff began working remotely. LAFPP services have continued without interruption and we are continually evaluating how we can successfully provide our Active and Retired members with customer service in the most efficient, cost-effective manner.

This survey is designed to address three areas: ”Telephone Service”, “Virtual Counseling” and “Webinars/Benefits Education”. The survey takes less than 10 minutes and will be used to evaluate our current services and how we conduct future business to provide flexibility to our members.

If you participated in any of our services in the past year – we would especially like to hear from you! Please take a few moments to complete our survey and provide your feedback:

We appreciate your time and will use the results to strengthen our commitment to serving you. 

DROP Participants! View your DROP Semi-Annual Statements in MyLAFPP. 

You may now view and/or print your 2020 DROP Semi-Annual Statement for the period ending December 31, 2020, in MyLAFPP. This statement summarizes your individual DROP account balance, monthly pension deposits, ITD (inception-to-date) interest, and mandatory exit date.  

To view your statement, take the following steps: 

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. 

If you have questions concerning your statement, contact the DROP/Service Pensions Section at dropsp@lafpp.com or call (213) 279-3100.

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 decreased the standard Medicare Part B monthly premium to $164.90 effective January 1, 2023; however, you may pay a different amount determined by CMS.

• If you are a new Medicare Part B enrollee in 2023, you will be reimbursed the standard monthly premium of $164.90 and will only need to provide a copy of your Medicare card.  
• If you received a Medicare Reimbursement less than $164.90 on your pension check in 2022, you will need to provide documentation to update your Part B reimbursement for 2023. 
• If you received a Medicare Reimbursement of $164.90 or more on your pension check in 2022, your reimbursement amount will be automatically adjusted on your December 31, 2022 pension check.

To update your Part B reimbursement for the 2023 calendar year: 

Please submit a copy of:

• The first page of your Social Security New Benefit Amount statement for 2023; 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 2022 calendar year: 

Please submit a copy of your:

• Social Security Form 1099 for 2022; or
• Your first Medicare monthly or quarterly billing statement for 2022

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 2023 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 2023 monthly Medicare Part B premium deduction.  LAFPP does not reimburse IRMAA fees, so your Part B reimbursement will not exceed the 2023 standard monthly premium of $164.90.  

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 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. 

You may now submit or update your beneficiary designation(s) electronically by logging into MyLAFPP, your member self-service portal. Updating your beneficiary designation through MyLAFPP is the fastest, easiest, and secure way to make beneficiary changes. Your changes will immediately update your pension record without any delays!

As an active member, it is very important to maintain a current beneficiary designation with LAFPP. Doing so ensures that your pension contributions and accrued interest will be paid to the person(s) of your choice and the refund will not be delayed by probate, regardless of your estate’s value.

Click here to learn more on why it is important to designate a beneficiary and how to submit/update your beneficiary designation online.

A life changing event may have an impact on your pension and on the eligibility of your survivor(s) upon your death as an active or retired member.

It is important that you update your information with LAFPP when a major life event occurs, such as a marriage, the birth of a child, or a divorce. Updating your information may require official documentation, which may include:

• Certified copies of marriage certificates
• Birth certificates
• Divorce decrees

Please review the Qualified Survivor Handbook for more information on survivor benefits.

Submit your documentation to LAFPP via email at pensions@lafpp.com. For questions regarding dissolution of marriage or beneficiary designations, please contact the Active Member Services Section at (213) 279-3140 or via email at amssection@lafpp.com. For questions regarding survivor benefit eligibility, please contact the Disability Pensions Section at (213) 279-3165 or via email at disability@lafpp.com.

The Cost of Living Adjustment (COLA) is 1.0% for 2021 and was approved by the Board of Fire and Police Pension Commissioners on March 18, 2021. The COLA will be effective July 1, 2021, and all eligible pensioners and Deferred Retirement Option Plan (DROP) participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2021. For new pensioners or 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 1.0%.

• Tiers 1 & 2 retirees, beneficiaries, and DROP participants will receive 1.0%.
• Tiers 3 & 4 retirees, beneficiaries, and DROP participants will receive up to 1.0%.
• Tiers 5 & 6 retirees, beneficiaries, and DROP participants will receive up to 1.0%, and those with an available COLA bank balance will withdraw up to 0.5% from their COLA bank*, for a total COLA of up to 1.5%. (NOTE: This leaves the COLA bank with a zero balance.)

*Must have retired or entered DROP with a pension effective date prior to June 2, 2020, in order to have an available COLA bank balance.

LAFPP has amended the Domestic Partnership filing requirements to recognize filings with other departments or agencies. If you are considering filing a domestic partnership or already have an established filing, please review the new updates.

Your Qualified Domestic Partner may receive a lifelong survivor’s pension benefit, provided all eligibility and notification requirements are met or submitted upon your death. Qualified Domestic Partners receive the same survivorship benefits available under the Plan as a Qualified Surviving Spouse. You can read about survivor benefits in the Summary Plan Description for your Tier.

Click here to learn more on Domestic Partnership filing updates.

Los Angles Fire and Police Pensions (LAFPP) reports a strong internal rate of return of 11.2% for its Specialized Manager Program through June 30, 2020. The semi-annual review of LAFPP’s Specialized Private Equity Program was presented to the Board of Fire and Police Pension Commissioners on February 18, 2021 and highlighted the success of the Program since its inception.

LAFPP’s Private Equity Portfolio is comprised of the Core and Specialized Manager Programs. The Specialized Private Equity portfolio was established in 1996 and includes first-, second-, and third-time funds that range in size from approximately $100 million to $500 million. Through this program, LAFPP has made commitments to Specialized private equity emerging managers that have included firms with minority-, women- and Lesbian, Gay, Bisexual, Transgender and Queer- (LGBTQ+) ownership. Additionally, LAFPP has made fund commitments to emerging managers that are based in the City of Los Angeles or California, or targeted investments in economically disadvantaged markets. Since inception, the Specialized Manager Program has generated a net Internal Rate of Return (IRR) of 11.2% and a 1.57x net return multiple.

The Specialized Manager Program has achieved results similar to the Core Portfolio, which had a net IRR since inception of 11.5% and a 1.61x net return multiple. Currently, both Portfolio Advisors and Fairview Capital manage the Specialized Private Equity portfolio for LAFPP.

Both the Specialized Manager Program and the Core Portfolio have performed well and are fulfilling the role they play in LAFPP’s asset allocation plan. Brian Pendleton, President of the Board commented, “The effort and the little extra risk to invest in these specialized managers have given us incredible returns!”

Together, Fairview and Portfolio Advisors have reviewed over a thousand funds since the start of the program, with the focus on selecting high quality investments. So far, the Board has approved 81 funds as part of the Specialized Manager Program.

For more information on the LAFPP Private Equity Specialized Manager Program, please visit www.lafpp.com/private-equity-specialized-manager-program.

ABOUT LAFPP

LAFPP oversees the pension fund for sworn members of City of Los Angeles Fire, Police, Airport and Port departments. The fund is currently valued at over $28 billion in assets and serves over 27,000 members and beneficiaries.

Police officers and other law enforcement professionals are integral within our societal framework and must be protected. The Board of Los Angeles Fire and Police Pensions (Board) strongly urge you as Director of Los Angeles County’s Public Health Department to immediately prioritize police officers and other law enforcement professionals by authorizing the immediate availability of vaccinations for these professionals.