Category: Newsroom

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!

We are saddened to report that former Commissioner Sam Diannitto passed away last week.  We honor and recognize his long history of service to the City of Los Angeles and the Fire and Police Pension System.  

Commissioner Diannitto started with the Fire Department in 1954 and after serving 43 years, he retired in 1997 as an Assistant Fire Chief.

He served on the Los Angeles Fire and Police Pension Board for 42 years as both an active and retired Fire Department member commissioner.  Commissioner Diannitto was first elected to the Board in 1972 by members of the Fire Department as the Active Fire Commissioner and served for 25 years (five terms).  When the City Charter was changed to allow two retired members to serve on the Board, Commissioner Diannitto was easily elected and on July 1, 2000, he began his first term as the Retired Fire Commissioner. He was re-elected to serve three more terms but announced his early retirement from the Board in October 2017.

Prior to his retirement, the Board formally dedicated the Fire & Police Pensions’ Boardroom to Commissioner Diannitto in October 2016. He was honored by his family, fellow members, LAFPP staff and other stakeholders from the affiliated unions and associations of both LAPD and LAFD.

Sam Diannitto leaves behind a legacy of leadership and dedication to the sworn members of LAFPP. We send our deepest condolences to his family and friends.

You don’t have to wait to collect your DROP funds from Deferred Compensation.  If you rolled over, or plan to roll over, your DROP funds into the City’s Deferred Compensation Plan, you are eligible to take distribution of those funds without tax penalty, if you are at least age 50. This also applies to distributions taken directly from LAFPP.

The tax code was changed in 2016 to eliminate the 10% tax penalty on funds withdrawn before age 59½. You should keep in mind that you may incur a tax liability upon distribution.

We recommend that you consult with your tax and/or financial advisor if you have any questions regarding your personal situation.

LAFPP is reporting a return of 9.91% for the fiscal year ending June 30, 2018. LAFPP assets totaled $22.32 billion at the end of the fiscal year.  Investment returns were led by LAFPP’s strong performance in the domestic and international equity markets, which generated returns of 16.38% and 8.11% respectively.

The 9.91% return is 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 7.06%, and the 20-year return is 6.92%.  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 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.  More information is available at About LAFPP.