Category: Newsroom

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.

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

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.

LAFPP is reporting a return of 13.27% for the fiscal year ending June 30, 2017. LAFPP assets totaled $20.64 billion at the end of the fiscal year.

The double-digit return earned during this fiscal year was led by LAFPP’s strong performance in the domestic and international equity markets, which generated returns of 19.30% and 22.90% respectively.

The 13.27% return is well above the Fund’s actuarial assumed rate of return of 7.25%, which is the long-term return required to meet current and future obligations for members. Our 10-year investment return is 5.55%, and the 20-year return is 7.28%. We have a long-term investment horizon and use an asset allocation which encompasses a strategic long-term perspective of the capital markets.

LAFPP is one of the largest fire and police pension funds in the U.S. This retirement system administers retirement and health subsidy benefits for nearly 26,000 current and retired public safety employees and their beneficiaries for the City of Los Angeles. More information is available at About LAFPP.

The 2017 Annual Member Survey was conducted in May and over 1,500 members participated. The survey covered a variety of services to evaluate and provided the opportunity to enter suggestions for the website, newsletters, MyLAFPP and most importantly, how to provide better service to our members. Click on the link below for survey highlights.

The Los Angeles City Council (City Council) and the Los Angeles Fire and Police Pensions Board of Commissioners (Board) have approved changes to the Health Insurance Premium Reimbursement (HIPR) program which may impact your eligibility for participation, and subsidy reimbursement for expenses incurred, as of April 1, 2017. 

Participation Requirement Updates:  If you are a California resident, you may now be eligible to participate in the HIPR program and receive reimbursements for their health insurance coverage costs.  HIPR participants are no longer required to reside more than three months outside of a LAFPP-approved HMO authorized service area. 

Additionally, if you are the eligible dependent enrolled in another subscriber’s health plan, you may be eligible for reimbursements through the HIPR program.  Members are no longer required to be the primary subscriber of their health insurance plan. 

Subsidy Eligibility Update:  Retired members who are participating in the HIPR program and are enrolled in Medicare Parts A & B are now eligible to receive additional subsidies for their eligible dependents (spouse or domestic partner and/or children under the age of 26).  Reimbursement for dependent coverage may be requested if the eligible dependent is   enrolled in:

• The retiree’s own Medicare health plan, or
• A health insurance plan that is issued by the same provider as the member’s plan (e.g., Anthem Blue Cross, Kaiser, AARP, etc.).

Members who are currently enrolled in a non-Medicare health insurance plan or a health plan sponsored by Los Angeles Police Relief Association (LAPRA), Los Angeles Firemen’s Relief Association (LAFRA), United Firefighters of Los Angeles City (UFLAC), or LAFPP, are already eligible for subsidy benefits towards their eligible dependent coverage and are not affected by this change.

LAFPP continues to seek opportunities to enhance the health plan options available to you as an LAFPP member. If you have any questions, please contact the Medical & Dental Benefits Section at (844) 88-LAFPP (52377), or (213) 279-3115.

To view your DROP Semi-Annual Statement for the period ending June 30, 2018, 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 June 30.

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

Each year, the Board of Fire and Police Pension Commissioners elects its Officers of the Board during the second meeting in July. On July 19, 2018, the Board elected Commissioners Corinne T. Babcock and Adam Nathanson as the new President and Vice President, respectively.

Prior to the election of officers, the Board discussed a revised election policy to ensure all members had an opportunity to serve as an Officer of the Board by granting seniority ranking to nominees.  The previous Board policy emphasized that the Board President position shall rotate each year between appointed and elected commissioners.

On September 6, 2018, after receiving public comment and further discussion in closed session, the Board unanimously approved a motion to change the Board Governance Policy as follows:

• Board members shall not serve more than one term consecutively as President or Vice President;
• The President is prohibited from being elected to the Office of Vice President immediately upon completion of their term as President; and,
• Board members shall have an open election system for officers.

The Policy language for these changes were subsequently approved by the Board on September 20, 2018.

In November 2013, Commissioner Babcock was appointed to the Board by Mayor Eric Garcetti and is currently serving her second term, which ends in June 2019. She served as Vice President for Fiscal Year 2017-18 and succeeds Commissioner Ruben Navarro, who served as Board President since July 2017.

The Board President provides leadership to the Board in overseeing the administration of the pension system; its assets, investments, actuarial services, rules and regulations. The primary responsibilities of the Board President are the following:

• 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 Adam Nathanson 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 is unable to carry out her duties. Commissioner Nathanson was appointed to the Board by Mayor Eric Garcetti in April 2015. He is currently serving his second term, which ends in June 2020.

Congratulations to Commissioners Babcock and Nathanson as they begin their new roles on the Board!