Month: March 2021

A life changing event may have an impact on your pension and on the eligibility of your survivor(s) upon your death as an active or retired member.

It is important that you update your information with LAFPP when a major life event occurs, such as a marriage, the birth of a child, or a divorce. Updating your information may require official documentation, which may include:

• Certified copies of marriage certificates
• Birth certificates
• Divorce decrees

Please review the Qualified Survivor Handbook for more information on survivor benefits.

Submit your documentation to LAFPP via email at pensions@lafpp.com. For questions regarding dissolution of marriage or beneficiary designations, please contact the Active Member Services Section at (213) 279-3140 or via email at amssection@lafpp.com. For questions regarding survivor benefit eligibility, please contact the Disability Pensions Section at (213) 279-3165 or via email at disability@lafpp.com.

The Cost of Living Adjustment (COLA) is 1.0% for 2021 and was approved by the Board of Fire and Police Pension Commissioners on March 18, 2021. The COLA will be effective July 1, 2021, and all eligible pensioners and Deferred Retirement Option Plan (DROP) participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2021. For new pensioners or DROP entrants in Tiers 3-6, the first year’s COLA is prorated based on the number of complete months since the pension effective date, therefore these members may not receive the full 1.0%.

• Tiers 1 & 2 retirees, beneficiaries, and DROP participants will receive 1.0%.
• Tiers 3 & 4 retirees, beneficiaries, and DROP participants will receive up to 1.0%.
• Tiers 5 & 6 retirees, beneficiaries, and DROP participants will receive up to 1.0%, and those with an available COLA bank balance will withdraw up to 0.5% from their COLA bank*, for a total COLA of up to 1.5%. (NOTE: This leaves the COLA bank with a zero balance.)

*Must have retired or entered DROP with a pension effective date prior to June 2, 2020, in order to have an available COLA bank balance.

LAFPP has amended the Domestic Partnership filing requirements to recognize filings with other departments or agencies. If you are considering filing a domestic partnership or already have an established filing, please review the new updates.

Your Qualified Domestic Partner may receive a lifelong survivor’s pension benefit, provided all eligibility and notification requirements are met or submitted upon your death. Qualified Domestic Partners receive the same survivorship benefits available under the Plan as a Qualified Surviving Spouse. You can read about survivor benefits in the Summary Plan Description for your Tier.

Click here to learn more on Domestic Partnership filing updates.

Los Angles Fire and Police Pensions (LAFPP) reports a strong internal rate of return of 11.2% for its Specialized Manager Program through June 30, 2020. The semi-annual review of LAFPP’s Specialized Private Equity Program was presented to the Board of Fire and Police Pension Commissioners on February 18, 2021 and highlighted the success of the Program since its inception.

LAFPP’s Private Equity Portfolio is comprised of the Core and Specialized Manager Programs. The Specialized Private Equity portfolio was established in 1996 and includes first-, second-, and third-time funds that range in size from approximately $100 million to $500 million. Through this program, LAFPP has made commitments to Specialized private equity emerging managers that have included firms with minority-, women- and Lesbian, Gay, Bisexual, Transgender and Queer- (LGBTQ+) ownership. Additionally, LAFPP has made fund commitments to emerging managers that are based in the City of Los Angeles or California, or targeted investments in economically disadvantaged markets. Since inception, the Specialized Manager Program has generated a net Internal Rate of Return (IRR) of 11.2% and a 1.57x net return multiple.

The Specialized Manager Program has achieved results similar to the Core Portfolio, which had a net IRR since inception of 11.5% and a 1.61x net return multiple. Currently, both Portfolio Advisors and Fairview Capital manage the Specialized Private Equity portfolio for LAFPP.

Both the Specialized Manager Program and the Core Portfolio have performed well and are fulfilling the role they play in LAFPP’s asset allocation plan. Brian Pendleton, President of the Board commented, “The effort and the little extra risk to invest in these specialized managers have given us incredible returns!”

Together, Fairview and Portfolio Advisors have reviewed over a thousand funds since the start of the program, with the focus on selecting high quality investments. So far, the Board has approved 81 funds as part of the Specialized Manager Program.

For more information on the LAFPP Private Equity Specialized Manager Program, please visit www.lafpp.com/private-equity-specialized-manager-program.

ABOUT LAFPP

LAFPP oversees the pension fund for sworn members of City of Los Angeles Fire, Police, Airport and Port departments. The fund is currently valued at over $28 billion in assets and serves over 27,000 members and beneficiaries.