Month: June 2020

As a member of LAFPP, it is important that you understand the impact a dissolution of marriage may have on one of your largest assets – your pension. In California, any asset acquired, or income earned while married is considered community property. As part of this, pension benefits and contributions are subject to community property laws and, as assets, may be subject to division upon dissolution of marriage. If the court awards part of your pension to an ex-spouse, LAFPP must adhere to state law in the disposition (settlement) of your pension. This brochure provides an overview of how your pension benefits can be affected by a dissolution of marriage and what actions you need to take as the LAFPP Plan member.

In the Dissolution of Marriage Guide you will find important information on:

• What to consider in the event of Dissolution of Marriage
• What documents must be submitted to LAFPP
• How community property is calculated
• Frequently asked questions

If you would like more information or have questions, please contact the appropriate section listed below.

Active Members — Active Member Services Section at (213) 279-3140 or (844) 88-LAFPP. Email: amssection@lafpp.com

DROP Members — DROP/Service Pensions Section at (213) 279-3100 or (844) 88-LAFPP. Email: dropsp@lafpp.com

Retired Members — Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP. Email: rs@lafpp.com

Other informational handbooks and guides may be found under the Forms and Publications.

We have heard from Members who are concerned regarding the financial strength of the LAFPP fund in light of the COVID-19 pandemic and the resulting downturn in the stock market that has harmed other pension systems throughout the country. Although the LAFPP fund has been affected by the recent market fluctuations, your fund remains strong with over $23 billion in assets as of June 19, 2020. Due to the prudent stewardship of this Board and the expertise of our investment staff and advisors, we were in a good financial position prior to the recent market downturn and therefore in a strong position to weather this storm. The fund has plenty of cash on hand to meet pension and DROP payment obligations in this volatile market. We will continue to evaluate and monitor our long-term investment strategies to ensure the health and sustainability of your fund.

We have also heard from Members asking whether the calls across the nation to “defund the police” could potentially affect the LAFPP fund or the benefits you have earned. The answer is no. With regard to local proposals to modify LAPD’s budget, these proposals focus on the budget for the ongoing operations and services provided by LAPD and its dedicated employees. If any budget reduction proposal for LAPD were to be adopted by the Mayor and City Council, it would not impact the substance of your LAFPP pension benefits, or the general obligation of the City under the Charter to contribute annually to the LAFPP in the amount determined by an independent actuary hired by this Board.

Your vested pension benefits, the City’s obligation to actuarially fund those benefits, and the independent authority of this Board to protect and invest the trust funds that will be used to pay those benefits, are protected by the California Constitution and the City Charter.

We trust that this message provides you with confidence that from a financial and legal perspective, your LAFPP benefits and the LAFPP fund you rely on to pay for those benefits remain safe and secure under the independent leadership of this Board. Thank you for your continued dedication and service to the residents of Los Angeles.

For any questions or concerns, please contact us at (213) 279-3000, (844) 88-LAFPP, or at Pensions@lafpp.com.

Daily, the news is focused on the COVID-19 pandemic, stock market volatility, the nation’s recession, and the protests for social justice changes. These issues are at the forefront of our lives and given the importance of each of these issues, we know that resolution will take time. However, we want to remind you that LAFPP continues our commitment to administer your pension benefits during these challenging times. Although we have implemented changes to our service delivery due to the COVID-19 crisis, we are still available to serve your pension-related needs.

You should also be assured that the Board and staff continually monitor your pension fund, which is invested for the long term. No matter the short-term market volatility, which is expected, there is a strategic asset allocation plan in place with ongoing adjustments to cope with these periodic fluctuations. This has proven to be the best safeguard to ensure the continued strength of LAFPP to pay retirement benefits since 1899.