Month: October 2013

LAFPP REPORTS REVISED PRELIMINARY RETURN OF 13.01 PERCENT FOR 2012-13

Los Angeles Fire and Police Pensions (LAFPP) is reporting a revised preliminary return of 13.01 percent for the fiscal year ending June 30, 2013 (updated from the preliminary return of 12.67 percent reported on July 17, 2013).
The gain was led by LAFPP’s strong performance in the domestic and international equity markets including the developed and emerging markets, demonstrating returns over their benchmarks. LAFPP’s real estate investments also showed strong performance for the year.
LAFPP’s 13.01 percent return is well above the Fund’s discount rate of 7.75 percent, which is the long-term return required to meet current and future obligations for members. LAFPP’s 10-year investment return is 7.66 percent, while its 20-year return is 8.01 percent.
LAFPP has a long-term investment horizon and uses an asset allocation which encompasses a strategic long-term perspective of the capital markets.
Returns for real estate, private equity and some components of the inflation assets reflect market values through March 31, 2013 (not June 30, 2013). Final performance including the last quarter of the fiscal year will be available after asset valuations are completed.
LAFPP is one of the largest fire and police pension funds in the U.S. The retirement system administers retirement benefits for more than 25,000 current and retired safety employees for the City of Los Angeles. More information is available at About LAFPP.

ATTENTION ACTIVE FIRE MEMBERS: UNDER-COLLECTION OF PENSION CONTRIBUTIONS FOR PAY PERIODS 1, 2 & 3

LAFPP staff has been advised by the Controller’s Office that pension contributions were under–collected for members of MOU 23 – Firefighters and Fire Captains.
The problem affected approximately 900 Fire members who were receiving a longevity bonus. This bonus is pensionable and therefore, is subject to pension deduction. However, during system programming for the July 1, 2013 pay increase, the longevity bonus was mistakenly coded as “not pensionable”, resulting in an under–collection of pension contributions for Pay Periods 1, 2 and 3.
While the error was corrected in Pay Period 4 by the Controller’s Office, in accordance with LAFPP Board Rule 5.3, the under–collected amount will be deducted on the October 16, 2013 pay check for those affected. Note that the average under–collected amount is approximately $60 for all three pay periods combined.
For questions or concerns, please contact LAFPP Active Member Services at (213) 978-4522.