Month: February 2015

As of June 30, 2014, the System’s assets grew to over $15.75 billion on a market basis, while serving over 25,600…

2014 ANNUAL REPORT

The 2014 Annual Report for Los Angeles Fire and Police Pensions is now available online! As of June 30, 2014, the System’s assets grew from $15.75 billion to over $18.27 billion on a market basis, while serving over 25,600 members including 13,097 active and DROP members and 12,502 retired members and beneficiaries. The System’s pension benefits are actuarially funded at 86.6 percent and the health subsidy benefits are funded at 43.2 percent.  Combined, the funded status of these benefits is 80.8 percent.  It is important to note that LAFPP has been pre-funding health subsidy benefits since 1989, and is one of the few public pension systems to do so.  

Our market rate of return of 17.86 percent marks the second year in a row that the System experienced double-digit returns. This increase from the previous year’s 13.01 percent return was primarily due to strong performance in the domestic fixed income and international equity markets.  As a result, LAFPP continues to remain amongst the highest funded public pension systems in the country.

This past fiscal year was also a year of great accomplishments at LAFPP. Our successes include the completion of security and network infrastructure upgrades to help ensure the protection of our membership information. In addition, the project to replace our pension administration system, one of the most significant projects undertaken by staff, is well underway.  A major goal of the new system is to provide additional functionality to members and staff.  We continue to refine and update our Strategic and Business Plan goals to build upon our prior achievements and meet new challenges. All achievements ultimately support our mission – to advance the health and retirement security of those who dedicate their careers and risk their lives to protect the people of Los Angeles.

In addition to this report, our historical annual reports, actuarial valuations and financial statements are available in the Financial Reports section.  

Anthem security breach Healthcare provider Anthem, Inc. announced on February 3, 2015, that they are investigating a major breach of their information systems. This breach may have resulted in the unauthorized access of current and former enrollee personal information, including member name, date of birth, Social Security number, member ID, address and email address. They do not believe that medical claims data was breached.   Certain Los Angeles Fire and Police Pensions (LAFPP) members are enrolled in group health plans provided by Anthem Blue Cross or plans that utilize Anthem’s provider network.

Anthem is working closely with federal law enforcement investigators as well as conducting an extensive investigation to determine which of its current and former members were included in the security breach.

Anthem has created a dedicated website (www.AnthemFacts.com) where members can access information, such as frequently asked questions and answers. They have also established a dedicated toll-free number that both current and former plan members can call if they have questions related to this incident. That number is: 1-877-263-7995.  On February 11, Anthem announced that all current and former Anthem customers (going back to 2004) will be offered free credit monitoring and identity protection services for two years. Anthem customers will be able to sign up for these services starting on Friday, February 13.  Instructions for signing up will be posted on the website www.AnthemFacts.com.

You may also call 1-877-263-7995 to sign up. LAFPP strongly encourages you to sign up for them.   Anthem will send offers of credit monitoring and identity protection services by mail only. They will NOT contact you regarding the cyber attack via e-mail or phone. Anthem has further advised its current and former members to be on alert for scam email campaigns or telephone calls designed to appear as if they are from Anthem and soliciting personal information. Anthem has stated that they are not issuing emails or calling members regarding the cyber-attack, nor are they asking for personal information (e.g. credit card numbers, social security numbers, etc.) via email or phone. In addition, if you receive a scam email in this regard, it is important that you do not click on links or attachments, provide information, or reply to the email.

Further information is available on the Los Angeles Firemen’s Relief Association (www.lafra.org) and Los Angeles Police Relief Association (www.lapra.org) websites.