Category: Newsroom

In accordance with Governor Newsom’s Executive Order N-33-20 (Stay at Home Order) and Mayor Garcetti’s “Safer At Home” Emergency Order, our offices will be closed to all visitors until further notice and only essential services will continue as follows:

Pension checks will continue to be paid each month as scheduled. Now may be the opportune time to sign up for direct deposit if you haven’t already. Numerous financial institutions have provided updates on how to best utilize their electronic services. Retired members and beneficiaries can sign up for direct deposit and make changes to their monthly pension payments/view summary statements through MyLAFPP.

Active members who have an upcoming mandatory DROP exit date or an urgent request to exit DROP soon can arrange a remote counseling appointment that will be conducted over the phone and completed electronically via email/fax. Appointments already scheduled will take priority. Please be patient as staff will schedule appointments in priority order.

LAFPP is prepared to continue serving our members while adhering to the recommended precautionary measures for the Coronavirus (COVID-19). By activating our Business Continuity Plan at this time, staff will continue to work in staggered shifts or from remote locations to ensure that essential services continue without interruption. Our website and MyLAFPP self-services are excellent resources:

MyLAFPP Services – Click here to log on. For log-in instructions click here.

Active/DROP Members

• Run Pension and DROP Estimates
• View Annual Statements
• View Semi-Annual DROP Statements
• Recruit time purchase
• View beneficiaries

Retired Members

• Address Changes
• Direct Deposit – start or change
• Tax Withholding Changes
• View 1099-R tax form

LAFPP.com – View benefit information and download forms from our website.

• Current news and events, and MyLAFPP Login on the homepage
• View Services by Active or Retired membership
• Download forms – can be submitted by email or fax

View a list of LAFPP services and contacts

OFFICE CONTACT INFORMATION:

Phone: (213) 279-3000
Toll-Free: 844-885-2377
TTY: (213) 628-7713

When you call our main office number, please select a section and leave a message. Your call will be returned as soon as possible, usually within the hour during our regular business hours. You may also send an email to Pensions@lafpp.com.

We truly appreciate your patience and understanding during these unprecedented times. We will continue to closely monitor the situation and provide you with any new developments on any changes in our services. If you have not done so already, please provide us with your email address through MyLAFPP to also send you updates as soon as possible. We thank you for your understanding.

Financial markets across the world have been hit hard by the coronavirus outbreak, with stocks suffering the largest losses. Your pension fund invests in a variety of other assets besides stocks that help cushion the fund against fluctuations in stock prices. The fund has plenty of cash on hand to meet pension and DROP payments without the need to sell any securities in this down market.

The Fund invests for the long term with a strategic asset allocation plan and makes adjustments on an ongoing basis. This strategic approach has been proven to be the best safeguard to ensure the continued strength of LAFPP to pay your retirement benefits.

The Cost of Living Adjustment (COLA) is 3.4% for 2020 and was approved by the Board of Fire and Police Pension Commissioners on March 19, 2020. The COLA will be effective July 1, 2020, and all eligible pensioners and DROP participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2020. 

• Tiers 1 and 2 will receive 3.4%. 
• Tiers 3 through 6 and DROP participants will receive up to 3.0%*; and 
• Tiers 5 and 6 will have 0.4% added to their COLA bank balance. The new COLA bank balance will be 0.5%.** 
  
  *For new pensioners or DROP entrants in Tiers 3-6, the first year’s COLA is prorated based on the number of completed months since the pension effective date, therefore these members may not receive the full 3%. 
  
  **Must have retired or entered DROP with a pension effective date prior to June 2, 2019, in order to have available COLA bank balance. 

The 2019 Annual Report for Los Angeles Fire and Police Pensions is available online!

LAFPP is pleased to present the 2019 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, 2019.

Some of the highlights in this report are:

• The System serves approximately 27,155 members, including active, DROP, deferred vested, and retired members and beneficiaries.
• Pension benefits were actuarially funded at 93.6% and health subsidy benefits were funded at 56.2%, an increase of 0.7% and 4.9%, respectively over the prior year. The combined funding status is 88.5%.
• System assets totaled $23.3 billion on a market basis, up from $22.3 billion the prior year.
• The investment rate of return for Fiscal Year 2018-19 was 6.21%.

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 continue to utilize 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 from the Financial Reports in the Inside LAFPP section of our website.

All 1099-R tax forms have been posted to MyLAFPP for viewing and downloading. To view your 1099-R form on MyLAFPP, review the MyLAFPP Services in the Frequently Asked Questions below.

February 6, 2020

We used our newly implemented Pension Administration System to generate 1099-R tax forms for our pensioners. By January 31, 2020, over 15,600 1099-R forms were timely mailed to LAFPP pensioners. After the forms were mailed, we were informed that some tax preparers and tax software do not accept the 1099-R tax forms with blank boxes (specifically, Box 2a and Box 4), which report the federal taxable amount and federal taxes withheld. Staff has conferred with our tax counsel and have concluded that corrected 1099-R forms should be issued to the affected members, which will now reflect $0.00 instead of blank boxes.

Notification letters and corrected 1099-R tax forms will be sent to all affected members with forms that have blank boxes 2a and/or 4. We anticipate all 1099-R tax forms to be posted in MyLAFPP for viewing and downloading by February 29, 2020. Please continue to check our website for further updates.

PLEASE REVIEW THE FREQUENTLY ASKED QUESTIONS BELOW FOR MORE INFORMATION ON THIS AND OTHER TAX FORM INQUIRIES.

As you prepare to file your taxes, here’s how to obtain your 2019 Tax Form 1099-R information:

To be mailed on January 31, 2020

A hard copy of your 1099-R tax form will be mailed to your address on file via US mail on January 31, 2020.  If you have questions regarding Form 1099-R, please review the Frequently Asked Questions on our website or contact the Accounting Section at (213) 279-3040 or (844) 88-LAFPP ext. 93040.

Some members may receive more than one 1099-R tax form in a year. Here are some of the possible reasons: 

1. You exited DROP and received at least one monthly pension payment in the same year (one 1099-R for DROP, one 1099-R for monthly pension payments)
2. You have a non-tax dependent covered on your LAFPP-subsidized health insurance plan (e.g., domestic partner or child of a domestic partner)
3. Your IRS tax distribution code changed during the year (e.g., when member attains 59 ½ years old by June of the same year)
4. You moved to a different state during the year
5. You received pension payments based on your City service and from a qualified domestic relations order (QDRO) or as a beneficiary

Need to make changes to your income tax withholdings?

Make them electronically through the MyLAFPP Portal! You can make your changes in 5 easy steps:

1. Access MyLAFPP
2. Click Retiree Benefits 
3. Click Tax Withholding 
4. Click Update Pension Tax Withholding Instructions
5. Fill in all the information. Please fill in all the information even if you are only changing either Federal or State of California withholdings. 
6. Click Submit

IMPORTANT NOTE: In addition to Federal taxes, LAFPP is responsible for tax withholding only in the state of California. Since LAFPP does not have an operating business presence in other states, we do not offer tax withholding for states other than California.

For questions, please contact the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP, ext. 93125.

Federal and CA state income tax withholding tables were updated for the 2020 tax year. Starting with the January 31, 2020 pension payment, you may see a change in your taxes withheld. You may change your withholding by logging into MyLAFPP or downloading the Income Tax Withholding Form.

You may also contact Retirement Services to make changes or for any questions by calling (213) 279-3125 or (844) 88-LAFPP, ext. 93125.

SPECIAL NOTICE: This article only applies to retired members of the Los Angeles Fire & Police Pension Plan

The Centers for Medicare and Medicaid Services (CMS) has increased the standard Medicare Part B monthly premium to $148.50 effective January 1, 2021; however, you may pay a different amount determined by CMS.

• If you are a new Medicare Part B enrollee in 2021, you will be reimbursed the standard monthly premium of $148.50 and do not need to provide additional documentation.  
• If you received a Medicare Part B reimbursement of $144.60 on your pension check in 2020, you do not need to provide documentation and your Part B reimbursement will automatically increase to $148.50 for 2021. 
• If you received less than a $144.60 Medicare Part B reimbursement on your pension check in 2020, LAFPP will notify you by email or mail with instructions on how to update your Part B premium amount on record.
   

To update your Part B reimbursement for the 2021 calendar year, please submit a copy of your:

• Social Security New Benefit Amount statement for 2021; or
• 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 2020 calendar year, please submit a copy of your:

• Social Security Form 1099 for 2020; or
• First Medicare monthly or quarterly billing statement for 2020

Please 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 at least 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 Retirees 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.

January 2021 begins with more good news for LAFPP! As of January 12, 2021, the Fund reached an unaudited market value in excess of $28.3 billion dollars. This greatly exceeds the $25 billion total as of January 2020, just before the stock market declined due to the COVID-19 pandemic. The rebound in the Plan’s market value is due to the strong recovery in the equity markets and the City’s annual contribution payment received in July 2020.

You should also be assured that the Board and staff continually monitor your pension fund, which is invested for the long term. There is a strategic asset allocation plan in place with ongoing adjustments to manage periodic fluctuations.

Thank you for your dedication and service as first responders to the residents of Los Angeles. For any questions or concerns, please contact us at (213) 279-3000, (844) 88-LAFPP, or at Pensions@lafpp.com.

LAFPP continues to be one of the largest public safety pension funds in the U.S. The Plan administers retirement and health subsidy benefits for over 26,000 current and retired public safety employees and their beneficiaries for the City of Los Angeles.