Category: Newsroom

2021 Non-Medicare Subsidy Increase

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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 new approved amount for the non-Medicare health subsidy maximum is $1,958.82 per month, effective July 1, 2021.

On April 1, 2021, the Board of Fire and Police Pension Commissioners approved a two percent increase to the non-Medicare health subsidy. With the increase to the non-Medicare health subsidy, the vast majority of pre-65 members will see a reduction in premiums and potentially 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 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 2021-2022 is 4.75%, therefore the Board had the authority to increase the subsidy by up to 4.75% this year. The approved 2% 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.

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

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A Special Election to select the Police Department Employee Member of the Board of Fire and Police Pension Commissioners (Board) is scheduled on November 16, 2021. The candidate elected will serve the unexpired term beginning February 1, 2022 and ending June 30, 2025.

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 Police Department (LAPD) 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 September 22, 2021, 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 the 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 5:00 p.m. (PT) on October 1, 2021.

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 November 16, 2021 to be counted.

Sworn Employee Members of LAPD who become eligible within 30 days prior to the Special Election and wish to vote in the Special Election should obtain a Certificate of Eligibility (Certificate) from the Personnel Department. Beginning at 8:00 a.m. (PT) on November 5, 2021, 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 November 18, 2021 in the presence of the observers designated by each candidate via livestream. 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.

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

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The term of the Board’s Police Department Employee Member, Commissioner Paul M. Weber, ends on June 30, 2020. An election was held on March 17, 2020 for this position. A candidate must have received the majority of all votes cast in order to have won the election. Commissioner Weber received 74.26% of the vote and will serve the term of office from July 1, 2020 until June 30, 2025.

Congratulations Commissioner Weber!

The Board normally meets on the first and third Thursdays of the month at 8:30 a.m. at the Los Angeles Fire and Police Pensions building at 701 E. Third Street, Suite 200, Los Angeles, CA 90013. Most meetings, including special and committee meetings, are from three to four hours in duration.

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.

Retired Fire Board Member Election Results

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LAFPP welcomes Commissioner Kenneth Buzzell, the newly-elected Fire Department Retired Employee Member of the Board of Fire and Police Pension Commissioners! On October 5th, Commissioner Buzzell will be sworn-in at the Board meeting and fulfill his fiduciary responsibilities as a Board member.  

In September 2017, a special election was held to fill the vacancy created by former Commissioner Sam Diannitto, who retired from the Board after 42 years of unwavering service to System members. Commissioner Buzzell will serve the remaining 27 months of a 5-year term ending June 30, 2020.

Commissioner Buzzell retired from the Los Angeles Fire Department as a Fire Captain II, after 32 years of service. He served on the boards of the United Firefighters of Los Angeles City (UFLAC), Local 112; the International Association of Fire Fighters (IAFF); the Los Angeles Retired Fire and Police Association (LARFPA); and the National Conference on Public Employee Retirement Systems (NCPERS). 

Welcome Commissioner Buzzell and congratulations on your election!

Results of the Active Fire Board Member Election

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Commissioner Ruben Navarro will serve the term of office from July 1, 2017 until June 30, 2022. Congratulations Commissioner Navarro!

The term of the Board’s Fire Department Employee Member, Commissioner Ruben Navarro, ends on June 30, 2017. An election was held on April 25, 2017 for this position. A candidate must receive a majority of all votes cast in order to win the election. Commissioner Navarro received 82.49% of the vote and will serve the term of office from July 1, 2017 until June 30, 2022.

Congratulations Commissioner Navarro!

The Board normally meets on the first and third Thursdays of the month at 8:30 a.m. at the Sam Diannitto Boardroom located at the Los Angeles Fire and Police Pensions building, 701 East 3rd Street, Suite 400, Los Angeles, CA 90013. Most meetings, including special meetings, are from one to four hours in duration.

The following is the current list of Board members:

NameAppointed / ElectedTerm Expires
Pedram Salimpour, MD, PresidentAppointed by the Mayor6/30/2017
Ruben Navarro, Vice PresidentElected by Active Fire Members6/30/2017
George V. AlianoElected by Retired Police Members6/30/2019
Corinne T. BabcockAppointed by the Mayor
 		6/30/2020
Sam DiannittoElected by Retired Fire Members6/30/2020
Adam NathansonAppointed by the Mayor
 		6/30/2020
Brian PendletonAppointed by the Mayor
 		6/30/2018
Belinda M. VegaAppointed by the Mayor
 		6/30/2021
Robert von VoigtElected by Active Fire Members6/30/2020

If you have questions concerning the election results, please call Wendy Kamayatsu, Administrative Services Section, at (213) 279-3080 or (844) 885-2377, ext. 93080#.

Verify the Status of Your Pension Savings Plan Contributions

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If you were in the Drill Tower or Police Academy training in 1994 to the present, you made mandatory contributions to the City’s Pension Savings Plan for part-time, seasonal and temporary employees. The Pension Savings Plan is a 457 Plan administered by the City’s Personnel Department, which is separate from the LAFPP System.

Participation in this Plan is mandatory for those employees who are not eligible to participate in one of the City’s three retirement/pension programs.  Upon your graduation, you became a member of the LAFPP System.

Most members are unaware that they may have a balance in the Pension Savings Plan after graduating and becoming full-time employees. Once you convert to full-time status, the contributions (made by both the employee and the City) to the Pension Savings Plan cease. Thereafter, you may elect one of two options regarding the balance:

  1. Enroll in the City’s Deferred Compensation Plan (457 plan) to continue contributing to a tax-deferred plan and transfer all the money from your Pension Savings Plan account to the Deferred Compensation Plan, or
  2. Leave the funds in your Pension Savings Plan account until you separate from City service. The funds earn an interest-bearing rate at about 2% per year.

Participants who have account balances in the Pension Savings Plan but have terminated City employment may take distribution of their account at any time.

For additional information on the Pension Savings Plan, please contact the Personnel Department, Deferred Compensation at (213) 978-1601.

Personnel Department – Pension Savings Plan

2017 COLA

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The Cost of Living Adjustment (COLA) effective July 1, 2017 is +2.7% and all eligible pensions will be adjusted accordingly beginning with the pension payment dated July 31, 2017.

The 2017 COLA of 2.7% was presented and approved by the LAFPP Board at its regular meeting on April 6, 2017. The COLA will be effective July 1, 2017, and eligible pensioners and DROP participants will receive an increase of up to 2.7% beginning with their July 31, 2017 monthly pension payment.

COLAs are made to eligible pension benefits effective July 1 of every year. Pursuant to the City Charter and the Administrative Code, the COLA is based on the annual change in the Consumer Price Index (CPI) as published by the Bureau of Labor Statistics.  Specifically, we look at the change in the CPI for All Urban Consumers in the Los Angeles-Riverside-Orange County Area for the prior 12-month period ending February.  As of February 2017, the change in the CPI is +2.7%.

How does this affect LAFPP Pensioners?

COLAs can increase or decrease one’s pension benefit, or have no effect. For example, in 2009 the 12-month CPI change yielded a flat COLA (0.00%) for pensioners for the first time in LAFPP history.  Also, please note that your monthly pension can never be reduced to less than your original pension amount as a result of a negative COLA.

For illustrative purposes, the following is an example of how an average monthly LAFPP pension benefit of $5,326 would be affected by a 2.7% COLA:

If 2.7% of $5,326 = $143.80

($5,326 x 0.027)

Then the monthly pension benefit would be increased to $5,469.80.

($5,326 + $143.80)

For more detailed information on the calculation of the CPI, please visit the Bureau of Labor Statistics website at http://www.bls.gov/cpi/.

Member Alert Regarding Alleged Predatory Pension Loan Businesses

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Persons receiving monthly pensions, including LAFPP retired members, may be targeted by salespersons offering immediate cash in exchange for rights to future retirement or disability retirement payments. These pension loans, or “advances,” may be offered with unlawful or unfair terms, including exceedingly high interest rates and fees.  Some pension loan agreements may also require borrowers to purchase life insurance with the lender named as the beneficiary.

On February 16, 2017, Los Angeles City Attorney Mike Feuer filed a lawsuit against an individual and multiple companies allegedly involved in a predatory lending scheme targeting vulnerable California pensioners.

The City Attorney’s lawsuit alleges that Scott Kohn, the owner and manager of a complex web of companies in California and across the country, including Cash Flow Investment Partners, LLC, Future Income Payments, LLC, London Square Specialty Services, LLC, Buysell Annuity, Inc., Pension Advance, LLC, and PAS California, LLC,  marketed and issued predatory loans to retirees in need of money to pay for unexpected expenses, securing the loans with those individuals’ pensions.  Among other things, Kohn allegedly charged interest rates as high as 96%, far above California’s 10% usury limit, and allegedly threatened borrowers (falsely) that defaulting on the loans could subject them to criminal liability.  According to the lawsuit’s allegations, Kohn also subjects pensioners in default to illegal and harassing debt collection practices, such as repeated telephone calls starting as early as 5:30 a.m.   

City Attorney Feuer seeks, among other things, an injunction prohibiting Kohn from collecting on the predatory loans issued to California pensioners, as well as selling unlawful and fraudulent loans to California investors.  In addition, the lawsuit seeks restitution for pensioners, as well as civil penalties. 

If you or someone you know has been targeted by Scott Kohn or the companies listed above, or by companies who may be engaged in similar predatory pension loan businesses, please contact the Office of the Los Angeles City Attorney at ATTpensions@lacity.org or call (213) 978-3347.

New Mural Proposed for the Neptune Building

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A new mural titled, “Bloom” will be painted by the artist Hueman on Neptune Building’s east-facing wall. The mural will commemorate Joel Bloom, a pioneering community activist who dedicated his personal time and energy over twenty years into creating the Arts District.

Before moving to the area in 1986, Bloom, originally from Chicago, graduated from the Pasadena Playhouse’s School of Theater Arts and served in the Air Force during the Vietnam War, where he documented the soldiers’ daily life on film. While living in the Arts District, Bloom fought to bring light-rail projects to downtown neighborhoods, advocated for affordable housing, organized a neighborhood watch program, led downtown neighborhood councils, and fought to prevent the Los Angeles Unified School District from building a massive distribution warehouse in the area. Ever the playwright and actor, Bloom also wrote and staged productions to entertain those seeking a more unique experience, like live theater that could be enjoyed from the comfort of an automobile – laughs and boos would be signaled by honking the car’s horn.

The corner of Hewitt Street and Traction Avenue, where Bloom founded Bloom’s General Store in 1994, came to be known as the heart of the community. This humble storefront provided basic everyday necessities and classic video rentals to neighborhood artists, in addition to being a local hangout.  Joel Bloom passed away on July 13, 2007 at the age of 59. “He gave the Arts District its personality, and he was unabashed in his great love for it,” said Councilwoman Jan Perry when describing Bloom as the neighborhood’s unofficial mayor. 

To celebrate the “Father of the Arts District,” the proposed mural will depict a bouquet of flowers blooming and breathing with movement, and creates a living wall symbolizing the vibrant arts community that continues to grow.

The artist bringing the mural to life is Hueman. In 2013, Hueman was one of the first artists commissioned to paint a mural after Los Angeles lifted its street art ban, and was named one of LA Weekly’s People of the Year in 2014. Her most recent mural projects include: “Mermaid on Main” located on Main and 9th in Downtown Los Angeles, California; “Inner Child” created during the RFK Mural Festival curated by Branded Arts in Los Angeles, California; “Red String of Fate” created during the Murals in the Market festival in Detroit, Michigan; and “Haiti Walls” created at the Academy for Peace and Justice in Port-Au-Prince, Haiti of the two valedictorians from the school’s very first graduating class, Class of 2016.

Painting of the mural is projected to begin in early May 2017.

Your 2016 Benefit Statement is Now Available!

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Active members, log in to MyLAFPP to view and/or print your 2016 Annual Benefit Statement. 

Once logged in, simply click on the Online Paper Statement icon and then select the year of your choice. This statement summarizes your individual pension-related information and provides personal information, pension estimates (if eligible to retire), contributions and interest, domestic partner information and beneficiary designation as of December 31, 2016.

For questions concerning your statement, contact the Active Member Services Section at (213) 279-3140.