Category: Newsroom

On August 18, 2022, the results of the mandatory management audit of the Los Angeles Fire and Police Pension Plan were presented to the Board by Aon Investments USA Inc. (Aon). The audit is mandated by Section 1112 of the City Charter, which requires the Mayor, City Council, and City Controller to jointly conduct a management audit of the City’s three retirement systems every five years. The purpose of the audit is to examine whether each retirement system is operating in the most efficient and economical manner, and to evaluate each system’s asset allocation.

This is the third management audit that has been conducted of LAFPP and the number of recommendations has significantly decreased over time, from 168 recommendations in 2007 to the current report with 25 recommendations. The recommendations contained in the audit are intended to further enhance and improve operations, and ensure the Board is presented with pertinent data when making investment decisions. LAFPP staff will further research each recommendation and develop implementation plans for the Board’s consideration.

The Management Audit noted that LAFPP had a thoughtful investment strategy and well-structured investment policy and has recognized the need to prudently manage cybersecurity risks. Some of the noteworthy audit results included the following:

Innovative Investment Funding Strategies

• “The success of LAFPP’s funding progress is due to a myriad of reasons, but one key reason is the commitment to the actuarial funding policy that was originally put in place, and not deviating from it.“

Cybersecurity

• “…it is clear the LAFPP has recognized the need to prudently manage cybersecurity risks…LAFPP has begun work that reflects many of the DOL’s best practice tips including conducting vulnerability assessments of the network, ensuring adoption of practices designed to protect member data, and engaging in Board and staff training. “

Administration/Management of the System

• “In reviewing the administrative and investment management expenses over the Scope period, we observed that these two expenses make up a small portion of overall expenditures. The majority of expenditures are for pension and health benefit related expenses.”

Governance

• “…LAFPP exhibits best practices through the adoption of a Board Governance Policies Manual and Board Operating Policies and Procedures Manual, and transparency by posting these governance documents on its public website.”

Aon consultants concluded the presentation by stating that LAFPP is a well-run, effective pension system. We invite you to review the entire audit report posted on the LAFPP website.

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

You may now view and/or print your DROP Semi-Annual Statement for the period ending June 30, 2022 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 registered for or have questions regarding MyLAFPP, please visit the MyLAFPP Help Desk.

If you have any questions regarding your DROP account or Semi-Annual Statement, please email the DROP/Service Pensions Section at dropsp@lafpp.com or call (213) 279-3100.

Ray Ciranna, General Manager of Los Angeles Fire and Police Pensions (LAFPP), announced his intent to retire in September 2022 to the Board of Commissioners and staff. He has served as General Manager of LAFPP since May 2013.

During his tenure at LAFPP, many milestones were achieved including the implementation of a new pension administration system, the purchase of a dedicated LAFPP administration building in the Los Angeles Arts District, ten-year average returns of 9.95%, total fund asset growth from $18 billion to $30 billion, and a funding status increase from 83% to 96%. The continued progress of the department’s business continuity plan was the key to continuing essential services to our members without interruption during the COVID-19 restrictions.

During his closed session retirement announcement, Ciranna expressed it was his great honor to serve those who protect the City of Los Angeles and thanked the Board and staff for their incredible dedication to LAFPP members. Ray said, “Out of my 32 years of service with the City, the last nine as GM of LAFPP have been the most rewarding because of the staff, the Board, and our members.”

LAFPP Board President Brian Pendleton said, “Ray’s extraordinary impact on LAFPP will be felt for years to come. The staff he assembled, trained, and supported are the best in the business and despite Ray’s departure his legacy will live on.”

Ray Ciranna will depart his position at the end of September. The nine-member Board of Commissioners will begin its meticulous process to select a new GM immediately.

We invite you to read our newsletter filled with announcements and benefit topics including your 2021 Active Member Statements, December 2021 DROP Semi-Annual Statements and Virtual Webinars.

Click below to access the electronic copy of the newsletter.

https://www.lafpp.com/article/july-2022-activedrop-newsletter

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

You may now view and/or print your DROP Semi-Annual Statement for the period ending December 31, 2021 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 registered for or have questions regarding MyLAFPP, please visit the MyLAFPP Help Desk.

*Note for members who entered DROP on or after February 1, 2019: If you missed any DROP account deposits for failing to meet the monthly requirement of at least 112 hours of active duty status, your DROP Semi-Annual Statement may not accurately reflect your account balance. An email notification will be sent to those participants who have missed one or more monthly deposit(s).

If you have any questions regarding your DROP account or Semi-Annual Statement, please email the DROP/Service Pensions Section at dropsp@lafpp.com or call (213) 279-3100.

Los Angeles Fire and Police Pensions (LAFPP) Chief Investment Officer (CIO) Mr. Ray Joseph has resigned for personal reasons, effective immediately. General Manager Raymond Ciranna stated that plans to fill the CIO are currently being developed.

In the meantime, Mr. Ciranna will fulfill the day-to-day responsibilities of the position until a replacement is appointed.

About LAFPP

LAFPP oversees the pension fund for the sworn members of City of Los Angeles Fire, Police, Airport and Port departments. The fund is currently valued at over $29 billion in assets and serves nearly 27,000 members and beneficiaries.

Available in MyLAFPP!

Active members! View your 2021 Annual Member Statement in MyLAFPP.

View and/or print your 2021 Annual Statement online. This statement summarizes your individual pension-related information as of December 31, 2021, 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.

The new approved amount for the non-Medicare health subsidy maximum is $2,046.97 per month, effective July 1, 2022.

On April 21, 2022, the Board of Fire and Police Pension Commissioners approved a 4.5% 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 or LAPRA 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 for fiscal year 2022-2023 is 7.50%, therefore the Board had the authority to increase the subsidy by up to 7% this year. The approved 4.5% 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.