Category: Newsroom

The Cost of Living Adjustment (COLA) is 3.6% for 2018 and was approved by the Board of Fire and Police Pension Commissioners on April 19, 2018.  The COLA will be effective July 1, 2018, and all eligible pensioners and DROP participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2018.  

• Tiers 1 and 2 will receive 3.6%.
• Tiers 3 through 6 and DROP will receive 3.0%*; and
• Tiers 5 and 6 will have the additional 0.6% stored in a COLA bank.

*For new pensioners or DROP entrants (excluding Tier 2 DROP entrants), the first year’s COLA is prorated based on the number of completed months since the effective pension date, and may not receive the full 3.0%.

How does this affect LAFPP Pensioners?

This is an example of how a monthly pension benefit of $5,686 would be affected by this year’s COLA of 3.6%:

For Tiers 1 and 2

If 3.6% of $5,686 = $204.70

($5,686 x 0.036)

Then the monthly pension benefit would be increased to $5,890.70.

($5,686 + $204.70)

For Tiers 3 through 6 and DROP

If 3.0% of $5,686 = $170.58

($5,686 x 0.030)

Then the monthly pension benefit would be increased to $5,856.58.

($5,686 + $170.80)

Tiers 5 and 6 will receive a 0.6% in their COLA bank.

New Geographic Area

The COLA is based on the annual change in the Consumer Price Index (CPI), as published by the Bureau of Labor Statistics (BLS).  In January 2018, the BLS introduced new geographic area samples for the CPI. The 2018 COLA was calculated using a 12-month period from March 2017 through February 2018, based on the new Los Angeles-Long Beach-Anaheim area sample.

For questions regarding the COLA, please contact the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP, ext. 93125.  For detailed information on the calculation of the CPI, please visit the BLS website at http://www.bls.gov/cpi/ or call (202) 691-7000.

Active members! Your 2017 Annual Active Member Statements are available in MyLAFPP. Members in Tiers 2 – 6 can now log in to MyLAFPP to review and/or print your statements. MyLAFPP can be accessed on the homepage of www.lafpp.com.

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 your individual pension-related information, pension estimates (if eligible to retire), contributions and interest, domestic partner information and beneficiary designation as of December 31, 2017.

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

REMINDERS WHILE VISITING LAFPP OFFICES

It is LAFPP’s goal to provide a secure environment for all LAFPP employees and visitors and to make our offices accessible to you.  If you have an upcoming appointment or need to stop by, please note the following to plan your visit.

Identification Required to Enter Building

Any person entering the LAFPP offices must present a driver’s license or other form of government-issued picture ID. Anyone without a valid form of identification will not be allowed to enter into the LAFPP offices.  This includes any guests you may bring with you.

Parking Available for LAFPP Business

On-site parking with validation is available to 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.  If there is no parking available, you will be directed to Lot 2

Lot 2: 300 Central Street (when Lot 1 is full). This lot is not owned by LAFPP but will accept our validation. At this lot you will have to pay $5 upfront that will be returned with a validated ticket.

• 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. Validation is only available for Lots 1 and 2 specified above. For any questions, please contact us at (213) 279-3000.

The federal income tax withholding tables have been updated for the 2018 tax year, starting with the February 28, 2018 payment.  You may see a change in the amount of federal taxes withheld to reflect the new tax laws.  Please consult your tax adviser to ensure your federal tax withholding is sufficient or visit www.irs.gov for more information. 

To change your federal tax withholding, call Retirement Services Section at (844) 885-2377 Ext 93125 or (213) 279-3125 and request a Tax Withholding form or download a copy.

To view your DROP Semi-Annual Statement for the period ending December 31, 2017, 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.

For questions regarding your DROP Semi-Annual Statement, please contact the DROP/Service Pensions Section at (213) 279-3100.

All new Airport Peace Officers hired on or after January 7, 2018 will become LAFPP Tier 6 members, in accordance with a City Charter amendment approved by the voters in November 2016.  Prior to that date, Airport Peace Officers were members of the City’s civilian retirement plan known as the Los Angeles City Employees’ Retirement System or LACERS.  The Charter amendment also allowed Airport Peace Officers hired prior to January 7, the opportunity to transfer from LACERS to LAFPP by purchasing all of their prior City service.

We look forward to serving our new members in the years to come!

The 2017 Annual Report for Los Angeles Fire and Police Pensions is available online!

LAFPP is pleased to present the 2017 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, 2017.

Some of the highlights in this report are:

• The System serves approximately 26,537 members, including active, DROP, and retired members and beneficiaries.
• Pension benefits were actuarially funded at 91.5 percent and health subsidy benefits were funded at 49.3 percent, a decrease of 2.4 percent and increase of 1.2 percent respectively over the prior year. The combined funding status is 85.6 percent.
• System assets totaled over $20.6 billion on a market basis, up from $18.5 billion the prior year.
• The investment rate of return for Fiscal Year 2016-17 was 13.27 percent, which exceeded our actuarial assumed rate of return of 7.25 percent.

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 link in the About LAFPP section of our website.

On December 7, 2017, the Board of Fire and Police Pension Commissioners approved new maximums for the Medicare health subsidy, the health subsidy for Qualified Surviving Spouses/Domestic Partners, as well as the dental subsidy.  These new maximum amounts will be effective January 1, 2018 through December 31, 2018.

Medicare Health Subsidy Benefit – A Medicare Health Subsidy is provided to all eligible retired members or respective Qualified Surviving Spouses/Domestic Partners who are enrolled in Medicare Parts A and B.  The new Medicare Health Subsidy maximum is $542.51.  Your maximum monthly subsidy is based on the number of whole years of service at retirement, as shown in the chart below.

Member’s Whole Years of Service	Maximum Medicare Health Subsidy*
20 or more	The lesser of: $542.51 or 100% of the single-party premium of the participant’s health plan.
15 – 19	The lesser of: $488.26 or 90% of the single-party premium of the participant’s health plan.
10 – 14	The lesser of: $406.88 or 75% of the single-party premium of the participant’s health plan.
Less than 10	No subsidy; Tier 6 retirees see below.**
*If the member: (1) entered DROP or retired after July 14, 2011, and (2) did not opt in during the designated period to make the additional 2% pension contribution, the Maximum Medical Health Subsidy is equal to the July 1, 2011 amount of $480.41.
** Retired Tier 6 members with a service-connected disability pension, with less than 10 years of service, age 55 and over, enrolled in a Board approved health plan, and enrolled in Parts A and B of Medicare, may be eligible for 75% of the maximum Medicare subsidy or 75% of the single-party cost of the retiree’s plan, whichever is lower.

Qualified Survivors Health Benefit – The new Qualified Surviving Spouse/Domestic Partner (QSS/DP) health subsidy is $853.39.   If you currently receive a QSS/DP pension payment from LAFPP, you are also eligible for a health subsidy if the following qualifications are met:

• You must be enrolled in a Board-approved health plan (one offered by Los Angeles Firemen’s Relief Association (LAFRA), Los Angeles Police Relief Association (LAPRA), UFLAC or Fire & Police Pensions) or participate in the Health Insurance Premium Reimbursement Program.
• The sworn member had at least 10 years of service.
• The sworn member received, or was eligible to receive, a health subsidy at the time of death; otherwise, you will be eligible when the sworn member would have been 55 years old.
• The sworn member was a Tier 6 retiree with a service-connected disability.

If you receive a survivor benefit due to a purchase made by the member under the Survivor Benefit Purchase Program for Retirees, you are not eligible for a health subsidy.

Member Dental Subsidy Benefit – The member dental subsidy will remain at $44.60 per month.  Members may receive up to $44.60 towards their Board approved dental insurance premiums. 

Eligibility to receive a dental subsidy is also based on age and years of service.  Members must be at least 55 years of age and have a minimum of 10 whole years of service to qualify for this subsidy.  If you have retired with 25 or more years of service, you may be eligible for the maximum dental subsidy amount. Eligible retired members with less than 25 years of service may receive 4% of the maximum dental subsidy for each whole year of service, not to exceed their single-party dental plan premium.

Dependents and Qualified Survivors are not eligible to receive a dental subsidy.

Questions

If you would like more information about LAFPP’s Health and Dental Subsidy program eligibility requirements, please contact the Medical and Dental Benefits Section at (213) 279-3115 or (844) 88-LAFPP ext. 93115.  Information is also available in the Retired Members section of www.lafpp.com.

The Centers for Medicare and Medicaid Services (CMS) has announced the maximum standard Medicare Part B (Part B) premium for the 2018 calendar year.  The standard Part B premium will remain at $134.00 and will be effective January 1, 2018.  Action may be required of members whose current Part B reimbursement is less than $134.00.

The Centers for Medicare and Medicaid Services (CMS) has announced the maximum standard Medicare Part B (Part B) premium for the 2018 calendar year.  The standard Part B premium will remain at $134.00 and will be effective January 1, 2018.  Action may be required of members whose current Part B reimbursement is less than $134.00.

By the end of 2017, Social Security Administration (SSA) will send you a benefits verification statement for 2018.  That SSA statement will list your initial benefit amount and detail your Medicare enrollment.  For each part of Medicare in which you are enrolled, there is a corresponding amount that is deducted on a monthly basis, including your basic 2018 Part B premium. If you are not eligible to receive SSA benefits, CMS will send you a billing statement with your new Part B premium.  Part B premiums may range from $105.00 to $134.00.  Pensioners who have recently enrolled in Medicare Part B will be charged the standard 2018 monthly premium and will be reimbursed at the maximum amount of $134.00.  As a reminder, retired members and qualified survivors can receive reimbursement for their Part B premiums if they are eligible for a health subsidy and are enrolled in both Medicare Parts A and B. 

Reimbursements for your Part B premiums can be found on your pension check stub. If your current Part B reimbursement amount is different from your 2018 Part B premium, please submit a copy of your Social Security benefits verification statement, or CMS billing statement, as soon as it is available to LAFPP.  

Once your correct Part B reimbursement amount has been confirmed, changes will be reflected on the next available pension roll. If eligible, you may also be reimbursed retroactively up to 12 pension roll months from the date your documentation is received.  If you have specific questions about your current Part B reimbursement amount, please contact the Medical and Dental Benefits Section at (213) 279-3115 or toll free at (844) 88-LAFPP ext. 93115.

Frequently Asked Questions (FAQs)

1. What document do I need to submit to receive my correct Part B reimbursement amount?

You may submit a copy of your SSA benefits verification statement (Form SSA-4926) or a copy of a current CMS billing statement (CMA 500).   

2.  My spouse (non-LAFPP member) is currently enrolled in Medicare Parts A and B.  Does he/she need to submit Medicare Part B premium documentation?

No, only the pensioner who is currently receiving a Medicare Part B premium reimbursement needs to submit documentation to LAFPP.

3.  I received a letter stating that I pay a higher Part B premium based on my income level (Income-Related Monthly Adjustment Amount, i.e. IRMAA). May I submit this letter as proof of my Part B premium?

Yes, you may submit a copy of the first page of the letter that contains your name, address and 2018 monthly Medicare Part B premium deduction to LAFPP Medical & Dental Benefits, however the maximum Part B reimbursement amount cannot exceed $134.00 per month.

4.   I receive a monthly Social Security payment, but I did not receive / cannot locate my “New Benefit Amount” Statement. What can I do?

You can access proof of your 2018 Medicare Part B basic premium online at the SSA website: https://www.ssa.gov/myaccount/. You may be required to create or register your SSA account.

5.   How do I submit proof of my Part B premium?

Please make a copy of your statement and send it attention to Medical and Dental Benefits Section via (1) Email to: mdbsection@lafpp.com; (2) Fax to (213) 628-7782 or (3) Mail to Department of Fire and Police Pensions, Attn: Medical & Dental Benefits, 701 E. 3rd Street, Suite 200, Los Angeles, CA 90013.

6.   When do I need to provide LAFPP documentation of my Part B Premium?

You may submit your documentation at any time during 2018 and receive a retroactive reimbursement of the balance of your 2018 basic Part B premiums for up to 12 pension roll months from the date your submission is received.

The Centers for Medicare and Medicaid Services (CMS) has announced the maximum standard Medicare Part B (Part B) premium for the 2018 calendar year.  The standard Part B premium will remain at $134.00 and will be effective January 1, 2018.  Action may be required of members whose current Part B reimbursement is less than $134.00.

By the end of 2017, Social Security Administration (SSA) will send you a benefits verification statement for 2018.  That SSA statement will list your initial benefit amount and detail your Medicare enrollment.  For each part of Medicare in which you are enrolled, there is a corresponding amount that is deducted on a monthly basis, including your basic 2018 Part B premium. If you are not eligible to receive SSA benefits, CMS will send you a billing statement with your new Part B premium.  Part B premiums may range from $105.00 to $134.00.  Pensioners who have recently enrolled in Medicare Part B will be charged the standard 2018 monthly premium and will be reimbursed at the maximum amount of $134.00.  As a reminder, retired members and qualified survivors can receive reimbursement for their Part B premiums if they are eligible for a health subsidy and are enrolled in both Medicare Parts A and B. 

Reimbursements for your Part B premiums can be found on your pension check stub. If your current Part B reimbursement amount is different from your 2018 Part B premium, please submit a copy of your Social Security benefits verification statement, or CMS billing statement, as soon as it is available to LAFPP.  

Once your correct Part B reimbursement amount has been confirmed, changes will be reflected on the next available pension roll. If eligible, you may also be reimbursed retroactively up to 12 pension roll months from the date your documentation is received.  If you have specific questions about your current Part B reimbursement amount, please contact the Medical and Dental Benefits Section at (213) 279-3115 or toll free at (844) 88-LAFPP ext. 93115.

Frequently Asked Questions (FAQs)

1. What document do I need to submit to receive my correct Part B reimbursement amount?

You may submit a copy of your SSA benefits verification statement (Form SSA-4926) or a copy of a current CMS billing statement (CMA 500).   

2.  My spouse (non-LAFPP member) is currently enrolled in Medicare Parts A and B.  Does he/she need to submit Medicare Part B premium documentation?

No, only the pensioner who is currently receiving a Medicare Part B premium reimbursement needs to submit documentation to LAFPP.

3.  I received a letter stating that I pay a higher Part B premium based on my income level (Income-Related Monthly Adjustment Amount, i.e. IRMAA). May I submit this letter as proof of my Part B premium?

Yes, you may submit a copy of the first page of the letter that contains your name, address and 2018 monthly Medicare Part B premium deduction to LAFPP Medical & Dental Benefits, however the maximum Part B reimbursement amount cannot exceed $134.00 per month.

4.   I receive a monthly Social Security payment, but I did not receive / cannot locate my “New Benefit Amount” Statement. What can I do?

You can access proof of your 2018 Medicare Part B basic premium online at the SSA website: https://www.ssa.gov/myaccount/. You may be required to create or register your SSA account.

5.   How do I submit proof of my Part B premium?

Please make a copy of your statement and send it attention to Medical and Dental Benefits Section via (1) Email to: mdbsection@lafpp.com; (2) Fax to (213) 628-7782 or (3) Mail to Department of Fire and Police Pensions, Attn: Medical & Dental Benefits, 701 E. 3rd Street, Suite 200, Los Angeles, CA 90013.

6.   When do I need to provide LAFPP documentation of my Part B Premium?

You may submit your documentation at any time during 2018 and receive a retroactive reimbursement of the balance of your 2018 basic Part B premiums for up to 12 pension roll months from the date your submission is received.

REFERENCED DOCUMENTS: 

Sample Medicare Part B Premium Documentation