Category: Newsroom

The ordinance amending the DROP Program was approved at its second reading by the City Council on January 15, 2019.  The adopted changes to the Program will affect all members entering DROP on or after February 1, 2019. 

 New DROP Requirements for Members Entering on or After February 1, 2019:

• Any member who enters DROP on or after February 1, 2019, shall have his or her participation in DROP suspended for any calendar month in which he or she does not spend at least 112 hours on active duty status;
• For any participant who sustains a serious injury on duty and is admitted to the hospital for a minimum of 3 consecutive days as a direct result of that injury, participation shall not be suspended during the first 12 calendar months following the date of injury;
• Any member whose participation is suspended shall be eligible to participate in DROP for a maximum of 30 additional months beyond the original participation period. The participation period shall only be extended for as many months as the member’s participation was suspended;
• No interest accrues on the DROP account following the initial 5-year/60-month participation period, including any periods of participation suspension.

Frequently Asked Questions:

Q:        When are these changes effective?

A:         Changes are effective February 1, 2019.

Q:        What if I am already in DROP, do these changes affect me?

A:         No. The changes only affect members who enter DROP on or after February 1, 2019.

Q:        Is the 112 hours calendar or work hours?

A:         Work.

Q:        What time counts as a working hour?

A:         You can use Hours worked (HW), vacation (VC), preventative medicine (PM) and time off (TO) as part of the 112 hours.

Q:       What time does not count as a working hour?

A:         Sick time (SK), family illness (FI) and Injury on Duty/Workers’ Comp time will not count towards your 112 working hours.  There is an exception, however, if you are hospitalized for 3+ days as a direct result of an on-duty injury      (see above).

Q:        Does overtime count toward my working hours?

A:         You cannot use overtime toward your working hours, but if you bank your hours and take them as TO, those hours will count.

Q:        If I don’t work the 112 hours will I be immediately terminated from the DROP Program?

A:         No.  A participant can work up to the full 5 years of DROP.  Within the 5 years, any month with less than 112 active duty hours is not eligible for DROP pension accrual (i.e., your participation is suspended for that month).  The months ineligible for pension accrual can be made up at the end of the 5-year standard DROP period, for up to a maximum of 30 additional months beyond the original participation period.

Q:        Where does my money go if I fail to meet the 112-hour active duty requirement?

A:         While it is common to refer to DROP credit being earned in the form of a payment or check, it is not in fact a payment or a check. While in DROP, you get credit in your individual DROP account once you have earned the credit; but the actual money stays in the LAFPP trust fund. If you fail to meet the 112-hour requirement during a calendar month, your DROP account will not receive a pension credit for that month. However, the funds remain in the LAFPP trust fund.

Q:        Will the months I make up be subject to the 5% interest?

A:         No.  The 5% interest is only for the first five years in DROP. Any extension beyond the five-year DROP period would not earn the 5% interest.  Extensions beyond the five-year DROP period would receive cost of living adjustments to your pension.

Q:        Will my DROP account from the initial 5-year period continue to accrue interest while I’m making up any months?

A:         No. Your DROP balance from the initial 5-year period will be frozen and not collect interest during your extended make-up time.

Q:        What if I enter DROP in the middle of the month or exit DROP in the middle of a month?

A:         You must be on “active duty status” for a minimum of 112 hours in a calendar month to be credited with a DROP deposit for that month, regardless if it is at the beginning or end of your DROP period. 

Q:        Will the timing of DROP payouts be impacted by these new provisions?

A:         Yes, under the new provisions LAFPP must confirm with the City’s payroll system (PAYSR) that you met the 112-hour active duty threshold in your final pay period.  Depending upon your DROP exit date, this may delay the payout of your DROP lump sum for a minimum of 1 month.

Q:        Will I earn interest on my DROP balance while the final pay period is being verified?

A:         No. The terms for crediting interest remain unchanged.  No interest accrues after a member’s DROP exit effective date.

Q:        How will my accumulated time payouts be affected by the February 1, 2019 effective date?

A:         Accumulated time is paid out after you exit the DROP Program.  Your vacation time is earned retrospectively, and you will earn and be paid hours on the previous year of employment. Sick leave is paid out prospectively and the City will not pay the extra 96 hours of sick time for 2019.  For example, if you have 896 hours on the books, you will be paid out for 800 hours. 

Q:        If I do not agree with the changes to the DROP Program, can I appeal?

A:         No.  The DROP Program is an optional, voluntary program that provides LAFPP sworn members with an additional way to save for their retirement years.  No member is required to participate.

For more information, please click on the following links to the City Clerk’s Office files:

Amendment to DROP – Correspondence

Amendment to DROP – Council File

For a history of the developments regarding the DROP Program Review, please click on the link below:

DROP Program Review – History

IMPORTANT: Please note that LAFPP performed an Electronic Funds Transfer (EFT) prenotification test the week of December 3, 2018. The test was conducted to validate your routing and account numbers for our upcoming pension administration system (PARIS). You may have received notification from your bank that LAFPP was given authorization by you to Debit or Credit your account. Please note that neither a debit or credit was made to your account. The test was a validation to help ensure a seamless transition to PARIS. No further action is required on your part. If you still have questions, please contact LAFPP at (213) 279-3125 or pensions@lafpp.com.

The effective date of the ordinance amending the DROP Program has been changed to February 1, 2019.  If you enter the DROP Program by January 31, 2019, you will not be subject to the proposed amendments. 

To accommodate the increased interest from approximately 600 members currently eligible to enter the DROP Program, group counseling sessions will be held and the Steps to Enter DROP have been modified.  You must make a reservation to attend a group counseling session so that your  personalized paperwork can be prepared in advance.  Individual counseling sessions will resume in February 2019.

Step 1 – Choose a group counseling date:

• 11/28/18 – Full
• 12/4/18 – Full
• 12/11/18 – Full
• 12/19/18 – Full
• 12/27/18 – Full
• 1/9/19 – Full
• 1/16/19
• 1/23/19
• 1/30/19

All sessions will begin at 9:00 a.m. and last approximately 2 hours  at a location downtown.  All other details including parking will be provided upon confirmation date.

Step 2 – Call LAFPP DROP/Service Pensions at (213) 279-3100.

• Provide your preferred group counseling date
• Choose a DROP entry effective date.
• DROP will draft your Letter of Intent and email you the forms/information packet

Step 3 – Attend your confirmed Group Counseling Session.

• All forms will be filled out during the sessions.
• Any questions can be answered at that time.
• You will meet with a DROP Counselor to verify all forms were completed accurately.

Things to Consider

• Start the process immediately to ensure you can reserve a spot in an LAFPP DROP Group Counseling  session.
• You must be on active/duty working status on your DROP entry effective date.  In the event you are sick, on vacation or any other non-working status on that date, your DROP entry date will automatically advance to the next qualifying date.  This event could push you into the new DROP and you will be subject to the proposed DROP amendments, which have a pending effective date of February  1, 2019.
• To revoke your DROP entry, you will only have until 11:59 p.m. on the day before your DROP effective date.  You must submit a signed revocation form to LAFPP in person, by fax (213-628-7716) or email (DROPSP@lafpp.com) by 11:59 p.m. on that date prior to your effective date. Otherwise, your decision to participate in DROP becomes irrevocable on your entry date.

 Records You Will Need

• California Driver’s License
• Social Security numbers and birth certificates for your spouse/domestic partner and any minor/dependent children
• Marriage certificate or state-registered domestic partnership documents (LAFPP Domestic Partnership form should be on file)
• Dissolution of marriage documents for all prior marriages

Call and schedule an appointment directly with LAFPP to draft your Letter of Intent.  You no longer need to make an appointment with the LAPD Retirement Liaison.  When you call to make an appointment with LAFPP, your assigned counselor will assist you with:

• DROP entry effective date
• Letter of Intent
• Final Average Salary
• Beneficiary Information
• Other related retirement decisions

To make an appointment with an LAFPP counselor, please call (213) 279-3100.  If you currently have an appointment with the LAPD Retirement Office, cancel that appointment and schedule with LAFPP instead.

If you plan to enter a regular Service Retirement (not DROP) or are in DROP and are ready to exit, you are still required to meet with your LAPD Retirement Liaison.  Please call the LAPD Retirement Section at (213) 486-6610 to schedule an appointment.  You are encouraged to contact the LAPD Retirement Section within six months of your intended service retirement or DROP Exit date.

LAFPP welcomes Commissioner Paul M. Weber, the Police Department Employee Member of the Board of Fire and Police Pension Commissioners! On October 4th, Commissioner Weber will be sworn-in at the Board meeting and fulfill his fiduciary responsibilities as a Board member.

On August 28, 2018, a special election was held to fill the vacancy created by former Commissioner Robert von Voigt, who resigned from the Board effective September 30, 2018. Commissioner Weber won a plurality of the votes cast in the special election and will serve the remaining 21 months of a 5-year term ending June 30, 2020.

Commissioner Weber is a 34-year-veteran of the Los Angeles Police Department and currently serves as a Captain at the Devonshire Station.

Captain Weber has a strong background in public safety labor management issues. For 11 years, he was a Director with the Los Angeles Police Protective League, representing pension matters among many others, on behalf of over 9,900 dedicated and professional sworn members of the Los Angeles Police Department.  For several years, he also served as the Union President.
 

Welcome Commissioner Weber and congratulations on your election!