December 2021 DROP Semi-Annual Statements – Now Available in MyLAFPP!

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.

LAFPP Investments Update – CIO Ray Joseph Resigns

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.

Election Results – Fire Department Employee Member Board of Fire and Police Pension Commissioners

LAFPP welcomes Rigo Arellano, the Fire Department Employee Member-elect, to the Board of Fire and Police Pension Commissioners! Mr. Arellano will be sworn-in during June 2022 to fulfill his fiduciary responsibilities as a Board member beginning July 1, 2022.

Commissioner Ruben Navarro’s term on the Board of Fire and Police Pension Commissioners (Board) as the Fire Department Employee Member will end on June 30, 2022. In accordance with Section 23.102.2(b) of the Los Angeles Administrative Code, the Board authorized the Office of the City Clerk to conduct an election on Tuesday, April 19, 2022. The candidate receiving a majority of all votes cast (at least 50% plus one vote) is then declared elected as the Fire Department Employee Member of the Board.

Mr. Arellano received 54.31% of the vote, a majority, and as such is elected to serve the term of the Fire Department Employee Member of the Board beginning July 1, 2022 through June 30, 2027. Congratulations Mr. Arellano!

For a current list of Commissioners, please view the Board Directory. If you have any questions concerning the election results, please contact the Administrative Services Section of the Department of Fire and Police Pensions at (213) 279-3080.

2021 Active Member Annual Statements

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.

2022 Non-Medicare Subsidy Increase

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.

Ballot Mailing – Election – Fire Department Employee Member Board of Fire and Police Pension Commissioners

All active, sworn Los Angeles Fire Department (LAFD) members of the Fire and Police Pensions System are eligible to vote in the Election for the Fire Department Employee Member of the Board of Fire and Police Pension Commissioners to be held on Tuesday, April 19, 2022.

On March 31, 2022, eligible voters were mailed an official ballot, voting instructions, the candidates’ statements of qualifications, an identification envelope, and a paid-postage return envelope addressed to the Office of the City Clerk – Election Division. Voters may submit their ballot via U.S. Postal Service or, starting at 8:00 a.m. (PT) on Friday, April 8, 2022, may hand-deliver their ballot using the contactless mail slot located at the Office of the City Clerk – Election Division, Piper Technical Center, 555 Ramirez Street, Suite 300, Los Angeles, CA 90012. Ballots received any other way will NOT be accepted.

In order to be counted, ballots must be received by the Office of the City Clerk – Election Division by 5:00 p.m. (PT) on Tuesday, April 19, 2022. The candidate who receives a majority (at least 50% plus one) of all votes cast shall be elected to the position of employee member. The candidate elected will serve the term that begins July 1, 2022 and ends June 30, 2027.

Voters who damage, spoil, lose, or do not receive their ballots may obtain a replacement upon filing an Affidavit of Loss/Non-Receipt (Affidavit) form. Voters may request an Affidavit form by calling (213) 978-0444 or via email at Clerk.ElectionAdmin@lacity.org.

Sworn Employee members of LAFD who become eligible within 30 days prior to the Election and wish to vote should obtain a Certificate of Eligibility (Certificate) from the Personnel Department. Newly eligible members may request an appointment with the Personnel Department to obtain the Certificate by emailing Per.PersonnelServices@lacity.org with the subject line “Request for COE 2022”. The Certificate for the newly eligible member will be provided by the Personnel Department to the Office of the City Clerk – Election Division via secure email. After securing a Certificate, beginning at 8:00 a.m. (PT) on Friday, April 8, 2022, the newly eligible voter may contact the Office of the City Clerk – Election Division at (213) 978-0444 or by email at Clerk.ElectionAdmin@lacity.org to schedule an appointment to present themselves and receive a ballot.

Candidates may designate up to two (2) individuals to observe the ballot tally. Candidates may also participate in addition to the two (2) observers. Names of observers designated by the candidates must be submitted to the Office of the City Clerk – Election Division by 5:00 p.m. (PT) on Friday, April 15, 2022 via email at Clerk.ElectionAdmin@lacity.org. Ballots will be opened and tallied on Thursday, April 21, 2022 at 9:00 a.m. (PT), and will be available to designated observers via livestream.

The Office of the City Clerk – Election Division’s Notice of Election is the source of and supersedes this web posting. Questions related to the Election conduct may be addressed to the Office of the City Clerk – Election Division at (213) 978-0444.

COLA 2022

The Cost of Living Adjustment (COLA) is 7.4% for 2022 and was approved by the Board of Fire and Police Pension Commissioners on April 7, 2022. The COLA will be effective July 1, 2022, and all eligible pensioners and Deferred Retirement Option Plan (DROP) participants will receive an increase accordingly, beginning with the pension payment/DROP account deposit dated July 31, 2022. 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 7.4%. 
  • Tiers 3 & 4 retirees, beneficiaries, and DROP participants in Tiers 2, 3, and 4 will  receive up to 3.0%. 
  • Tiers 5 & 6 retirees, beneficiaries, and DROP participants will receive up to 3.0% and the remaining 4.4% 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, 2022, in order to have an available COLA bank balance.

Consumer Price Index/Bureau of Labor Statistics

The COLA is based on the annual change in the Consumer Price Index (CPI) as published by the U.S. Bureau of Labor Statistics (BLS). Pursuant to the City of Los Angeles Charter/Administrative Code, the 2022 COLA was calculated based on the Los Angeles-Long Beach-Anaheim area using a 12-month period from March 2021 through February 2022.

How does this affect LAFPP Pensioners?

This is an example of how a monthly pension benefit of $6,386 would be affected by this year’s COLA of 7.4%:  

For Tiers 1 – 2 

If 7.4% of $6,386 = $472.56 

($6,386 x 0.074) 

Then the monthly pension benefit increases to $6,858.56 

($6,386 + $472.56) 

For Tiers 3 – 6 

If 3.0% of $6,386 = $191.58 

($6,386 x 0.030) 

Then the monthly pension benefit increases to $6,577.58 

($6,386 + $191.58) 

Questions?

For questions regarding the COLA, please contact the Retirement Services Section at (213) 279-3125, (844) 88-LAFPP, ext. 3125, or via email at rs@lafpp.com.

For detailed information on the calculation of the CPI, please visit the BLS website or call (202) 691-7000.

Election – Board of Fire and Police Pension Commissioners Fire Department Employee Member

An Election to select the Fire Department Employee Member of the Board of Fire and Police Pension Commissioners (Board) is scheduled on April 19, 2022. The candidate elected will serve the term beginning July 1, 2022 and ending June 30, 2027.

BOARD MEMBER DUTIES – The Board exercises the prudent person standard in the discharge of its duties. It has sole and exclusive fiduciary responsibility to administer the Fire and Police Pension System (System) and its assets; has the authority to set and adopt investment policies for over $31 billion in fund assets; and has the duty to establish actuarial assumptions and adopt rules and regulations necessary to administer the System.

Preparation for regular and special meetings requires an individual to commit hours of advanced reading of Board Reports and disability cases. The Board normally meets on the first and third Thursdays of each month at 8:30 a.m. (PT). Most meetings are from three to four hours.

ELECTION PROCESS – Only active, sworn Los Angeles Fire Department (LAFD) members of the System are eligible to run and vote for this Board seat. Members who are interested in becoming a candidate are required to complete and submit the Notice of Intent form which was mailed with the Election Notification. Signature gathering by eligible members is not required to run as a candidate.

Along with the Notice of Intent, the candidate has the option to submit an Occupational Ballot Designation and a typewritten Statement of Qualifications for Office. The Occupational Ballot Designation will be printed under the candidate’s name and shall consist of three words to describe the following: (A) the current principal profession, vocation, or occupation of the candidate, or (B) the principal profession, vocation, or occupation of the candidate during the last calendar year immediately before the filing of the Notice of Intent to become a candidate. The Statement of Qualifications for Office may include information on education, work experience, years of service, and other relevant qualifications and shall not exceed 300 words in length. Any words beyond the 300 word limit will not be printed.

Starting at 8:00 a.m. (PT) on February 23, 2022, candidates who wish to qualify for the ballot are required to provide the following documents: 1) Notice of Intent to run for Office; 2) Occupational Ballot Designation (Optional); and 3) Statement of Qualifications for Office (Optional). The three (3) approved methods of submittal are detailed below. Documents received any other way will NOT be accepted.

  1. Hand-Delivery (Appointment Only): Candidates may hand deliver the completed forms by scheduling an appointment with the Office of the City Clerk – Election Division by emailing Clerk.ElectionAdmin@lacity.org. Candidates will be provided with an appointment between the hours of 8:00 a.m. – 5:00 p.m. (PT). The Office of the City Clerk – Election Division is located at Piper Technical Center, 555 Ramirez Street, Space 300, Los Angeles, CA 90012.
  2. Mail: Candidates may submit the completed forms via U.S. Postal Service using the paid-postage envelope provided along with this Election Notification.
  3. Email: Candidates may submit the completed forms via email to Clerk.ElectionAdmin@lacity.org.

The completed Notice of Intent must be received by the Office of the City Clerk – Election Division by the deadline of 5:00 p.m. (PT) on March 4, 2022.

Eligible voters will receive a ballot in the mail. Voters may choose to return their ballot via mail or may deposit it at the drop box located at the Office of the City Clerk – Election Division. Ballots received any other way will NOT be accepted. All completed ballots must be received by the Office of the City Clerk – Election Division by 5:00 p.m. (PT) on April 19, 2022 to be counted.

Sworn Employee Members of LAFD who become eligible within 30 days prior to the Election and wish to vote in the Election should obtain a Certificate of Eligibility (Certificate) from the Personnel Department. Beginning at 8:00 a.m. (PT) on April 8, 2022, after securing a Certificate, the newly eligible voter may contact the Office of the City Clerk – Election Division at (213) 978-0444 or by email at Clerk.ElectionAdmin@lacity.org to schedule an appointment to present themselves and receive a ballot.

The ballots will be tallied on April 21, 2022, in the presence of the observers designated by each candidate via livestream. Candidates may also participate in addition to the two observers. The Office of the City Clerk – Election Division will furnish to the Board the official certified results of the election within 14 days after the date of election.

QUESTIONS – Inquiries regarding the election process may be directed to the Office of the City Clerk – Election Division at (213) 978-0444 or by email at Clerk.ElectionAdmin@lacity.org. Inquiries may also be directed to the Administrative Services Section of the Department of Fire and Police Pensions at (213) 279-3080.

LAFPP’S 2021 ANNUAL REPORT IS NOW AVAILABLE!

LAFPP is pleased to present our 2021 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, 2021.

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

  • The System serves approximately 26,983 members, including active, DROP, deferred vested, and retired members and beneficiaries.
  • Pension benefits were actuarially funded at 96.8% (change of +3.6%) and health subsidy benefits were funded at 64.7% (change of +5%). The combined funded status for pension and health benefits is 92.5% (change of +3.9%).
  • System assets totaled over $30 billion on a market value basis.
  • The investment rate of return for Fiscal Year 2020-21 was 32.56%.

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 our website under Financial Reports.