Category: Newsroom

Los Angeles Fire and Police Pensions (LAFPP) is honored to receive the Rich Chicotel Award from the Pension Real Estate Association (PREA) this year.  The award is named in honor of the late Rich Chicotel, who was the chief financial officer of Shorenstein Properties, one of the country’s oldest real estate organizations, and an LGBT philanthropist active in various LGBT causes and fundraising activities.  In 2007, he was named by the San Francisco Business Times as the San Francisco Bay Area CFO of the Year for privately-owned companies. In addition to being a successful CFO, Mr. Chicotel mentored many Stanford students as they began their real estate careers. He received his MBA degree from Stanford, graduated from Harvard College with a B.A., and from the University of Otago, Dunedin, New Zealand with a Postgraduate Diploma in International Economics.

In 2016, LAFPP expanded its emerging manager program to include funds owned and managed by lesbian, gay, bisexual and transgender (LGBT) investment professionals.  The PREA nominating committee unanimously voted in favor of granting the 2016 award to LAFPP due to its support for the LGBT Community and for being leaders in the field.

“We have witnessed first-hand how inclusiveness in our thinking and actions can drive good outcomes for our pension.  LAFPP is honored to receive the Rich Chicotel Award and we hope that it serves as a green light for more funds around the country to follow our lead.  Diversity and inclusiveness do drive returns.” – Brian Pendleton, LAFPP Commissioner

“We represent one of the most diverse cities in the world.  The Los Angeles Fire and Police Pensions Commission through this unanimous action of our Commissioners has recognized that diversity as a core strength.  And we believe that the diversity of perspective borne of this action will drive better financial returns for our investors, the men and women of our membership.” – Dr. Pedram Salimpour, LAFPP Commission President 

The award will be presented at the Pension Real Estate Association Fall Conference in Washington DC on Thursday, September 29th.

The Pension Real Estate Association (PREA) is a non-profit trade association for the global institutional real estate investment industry.  PREA serves to educate members in the global institutional real estate community regarding real estate investments.

The maximum retiree health subsidy for Fiscal Year 2015-2016 has been retroactively increased from $1,435.13 to $1,438.49. On May 5, 2016, the Board of Fire and Police Pension Commissioners approved the additional 0.25% increase to take effect July 1, 2015. This increase will result in an additional subsidy of up to $3.36 per month.

Approximately 2,400 retired members will be entitled to a retroactive increase depending on their health plan coverage and years of service. The increase will affect the 2,400 members who:

• Paid out of pocket for a portion of their retiree health insurance during the period from June 30, 2015 — May 31, 2016. The out of pocket cost was paid via a deduction from the retiree’s monthly pension check or premiums paid through the Health Insurance Premium Reimbursement program.

Retired Members who qualify for the retroactive health subsidy will receive an informational letter and their reimbursement checks/direct deposits during the week of August 15, 2016. Eligibility for the reimbursement has been determined by Los Angeles Fire and Police Pension staff and there is no need to request a reimbursement.

This reimbursement will be paid separately from your regular August 31, 2016 pension payment. If you have any questions regarding this information, please call (844) 88-LAFPP ext. 93115 toll free, or contact the Medical & Dental Benefits Section directly at (213) 279-3115.

On July 21, 2016, the Board elected Commissioners Pedram Salimpour, MD and Ruben Navarro as the new President and Vice President, respectively. 

Each year, the Board of Fire and Police Pension Commissioners elect its Officers of the Board during the last meeting in July. On July 21, 2016, the Board elected Commissioners Pedram Salimpour, MD and Ruben Navarro as the new President and Vice President, respectively. 

Commissioner Salimpour was originally appointed to the Board by Mayor Antonio Villaraigosa in May 2013 and re-appointed in November 2013 by Mayor Eric Garcetti. He succeeds Robert von Voigt, active Police member, who served as Board President since July 2015. As President, he will preside over the Board’s primary responsibility to oversee the administration of the pension system; its assets, investments, actuarial services, rules and regulations. Additionally, the Board President provides leadership in furthering the mission of LAFPP “to advance the health and retirement security of those who dedicate their careers and risk their lives to protect the people of Los Angeles,” and the delivery of professional and prompt services to over 25,000 active and retired members. The Board President also exercises the following duties:

• Approves the Board agenda; presides at all Board meetings, ensuring that such meetings are conducted in an efficient manner and in accordance with the City Charter and Administrative Code, applicable public meeting laws, and relevant Board policies;
• Determines who shall act as spokesperson for the System should the need arise; and,
• Approves the travel expenses incurred by the General Manager and the Board, as appropriate.

As Vice President, Commissioner Ruben Navarro will assume the duties of the Board President when the President is absent or if the President should delegate the Vice President to act.  He will also assume the duties of the President if the President becomes unable to carry out his duties. Commissioner Navarro was first elected to the Board by active Fire members in November 2009. Commissioner Navarro succeeds Commissioner Salimpour, who served as the Board’s Vice President since July 2015.

The Board consists of nine members, of which Commissioner Salimpour is one of the five members appointed by the Mayor. Commissioner Navarro is one of the four members elected by active and retired Plan members.

 DROP Semi-Annual Statements as of June 30, 2016 are available online! 

To view your DROP Semi-Annual Statement for the period ending June 30, 2016, log in to MyLAFPP and click on the “DROP Statements” tab on the left.
This statement provides your date of entry, mandatory date of exit and your account balance with interest credited on December 31 and June 30.
For questions regarding your DROP Semi-Annual Statement, please contact the DROP/Service Pensions Section at (213) 279-3100.

For members conducting business at the LAFPP offices, validated parking is available in our adjacent lot. (Click here for more information.)

Due to space issues, you should be prepared to leave the keys to your vehicle with the parking attendant. If leaving your keys is not an option for you, metered street parking is an alternative.  The map above also provides information on other lots in the vicinity.  LAFPP will NOT validate for these lots.  For questions, please call (213) 279-3000.

LAFPP now offers on-site parking with validation for our LAFPP members (active/retired members, spouses, domestic partners, children, etc.) conducting business with staff at our offices located at 701 E. 3rd Street.  LAFPP members visiting our offices will be validated at the following two parking lots:

Lot 1: Adjacent to the LAFPP building – entrance is on 3rd St.

Lot 2: 300 Central Street – If there is no available parking in Lot 1, members will be directed here. This lot is not owned by LAFPP but will accept our validation. Members directed to this lot will have to pay $5 upfront that will be returned with a validated ticket.

Validation is only available for these two lots.  When parking in either lot, please inform the attendant that you will be visiting the LAFPP offices.

All visitors should be prepared to leave the keys to their vehicle with the parking attendant, due to space issues. If this is not an option for you, metered street parking is an alternative.  Click this link for a map of other lots in the vicinity (no validation).

After you have finished conducting your LAFPP business, parking validation to cover the duration of your visit will be provided at the 2nd floor reception desk. For any questions, please contact us at (213) 279-3000.

The California Franchise Tax Board (CFTB) is now re-validating the tax returns affected by the delayed reporting of 2015 quarterly tax information by Northern Trust, our pension benefit payment vendor.  If you have previously received a Notice of Tax Return Change from the CFTB, you may receive a Second Notice of Tax Return Change, to allow your California withholding credits as claimed.  This means no further action on your part should be required based on your pension tax withholdings.

We apologize for any inconvenience this issue may have caused.  Northern Trust will be accountable and has implemented a secondary audit as part of its quality control measure to ensure future accurate state tax posting and oversight by its management.  Northern Trust will also incur related penalties, should any be assessed by the California Franchise Tax Board.

If you have questions regarding these notices, please contact the California Franchise Tax Board at (800) 852-5711.  We understand that callers may leave a call back number for the California Franchise Tax Board in order to avoid the long call wait time.

Please contact the LAFPP Retirement Services Section at (213) 279-3125 or toll free at (844) 88-LAFPP extension 93125, if you have related concerns and questions.

The following are the two distinct issues that affected our members:

ISSUE 1: Northern Trust’s submittal of the 2015 Quarter 1 and Quarter 2 tax information at the individual payee level was delayed.  As of April 4, 2016, the California Franchise Tax Board has confirmed the proper posting of these quarterly taxes. 

ISSUE 2: The California Franchise Tax Board is experiencing a technology issue which may have created discrepancies in tax withholding information for Quarter 2 and Quarter 4 of 2015.  We were informed this issue affects many California taxpayers, regardless of the employer.  Therefore, for pensioners who have other sources of income in addition to their LAFPP pension, further efforts may be necessary to resolve this issue.  These efforts include providing copies of W-2s and year-end earnings statements, to substantiate the California state tax amounts withheld from all sources of income.

On May 19, 2016, the Board of Fire and Police Pension Commissioners (Board) formally dedicated the Boardroom in the new LAFPP office building to Sam Diannitto.

On May 19, 2016, the Board of Fire and Police Pension Commissioners (Board) formally dedicated the Boardroom in the new LAFPP office building to Sam Diannitto.  Commissioner Diannitto is the current Retired Fire Board Representative and has served on the Board for over 40 years.  He was honored by his fellow Board members, family, LAFPP staff, and other stakeholders from the affiliated unions and associations of both LAPD and LAFD.

General Manager Ray Ciranna presented a timeline of noteworthy achievements.

• In 1972, Commissioner Diannitto was elected to the Board to serve as the active Fire Department representative. He was re-elected and served an additional four terms.
• In 1997, he retired after 43 years of dedicated service as an Assistant Fire Chief of the Los Angeles Fire Department.
• In June 2000, Commissioner Diannitto was elected to serve as the retired Fire member representative and has held this position since that time.  His current term ends on June 30, 2020.

His other distinguished service includes:

• Vice President of the National Conference on Public Employee Retirement Systems (NCPERS)
• President of the United Firefighters of Los Angeles City
• Chairperson and member of the Public Employees Committee of the International Foundation of Employee Benefit Plans
• Membership in various associations, including USC Alumni, Fire Chief Officers, NCPERS, International Foundation of Employee Benefit Plans, and Government Finance Officers.

Commissioner Diannitto has always been a strong advocate for the members of the LAFPP system and we are proud to recognize his long history of commitment and dedication.  Congratulations to Commissioner Diannitto!

Click here to view the video commemorating Sam Diannitto at the May 19th Board meeting.

The Cost of Living Adjustment (COLA) effective July 1, 2016 is +2.4% and all eligible pensions will be adjusted accordingly beginning with the pension payment dated July 29, 2016.

The 2016 COLA of 2.4% was presented and approved by the LAFPP Board at its regular meeting on April 7, 2016. The COLA will be effective July 1, 2016, and eligible pensioners and DROP participants will receive an increase of up to 2.4% beginning with their July 29, 2016 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 2016, the change in the CPI is +2.4%.

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 $5,309 would be affected by a 2.4% COLA:

If 2.4% of $5,309 = $127.42

($5,309 x 0.024)

Then the monthly pension benefit would be increased to $5,436.42.

($5,309 + $127.42)

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

Active members in Tiers 2 – 6 can now log in to MyLAFPP to view and/or print their 2015 Annual Active Member Statement. 

Once logged in, simply click on the link in the Online Paper Statement box and then select the year of your choice. This statement summarizes a member’s individual pension-related information by providing employee information, pension estimates (if eligible to retire), contributions and interest, domestic partner information and beneficiary designation as of December 31, 2015.

For questions concerning your statement, contact the Active Member Services Section at (213) 978-4522.

Please Note: Our offices will be moving. Beginning March 21, 2016, please contact the Active Member Services Section’s new number at (213) 279-3140.