Yes. A Form 1099-R will be mailed to the address on your refund form by January 31st of the following calendar year for your tax filing purposes. Please keep your mailing address current with LAFPP.

No, once you withdraw your contributions, your membership with LAFPP is terminated and you are no longer entitled to retirement, health/dental subsidy, death, or survivorship benefits.

Please contact the Active Member Services Section at (213) 279-3140 or by email at [email protected] to obtain the status.

If you contact us at least 2 weeks prior to the issue date of your refund, you can request to cancel the refund in writing. Otherwise, we will be unable to accommodate your request. However, if you return to the City and resume LAFPP membership, you may restore your service credit by purchasing prior service.

It generally takes 12 to 16 weeks upon termination of your employment to process a refund of contributions. It may take longer if there is a divorce claim or garnishment court order on file.

Active Member Services receives notification from your employing department 6 to 8 weeks after your resignation/termination. Your payroll status must be changed (active to terminated) by your department before the refund process can begin. You will know your status has been changed when you receive payment for your remaining vacation and/or overtime balances. (Sick time is not eligible for separation payout).

Upon notification of your termination, a refund packet consisting of the following will be sent to you:

• Letter – estimate of your refund providing the taxable and non-taxable portions
• Refund of Contributions Questionnaire – form you must complete and sign. It consists of basic questions with “yes” or “no” answers to help us in the timely processing of your refund
• Request for Refund of Contributions – form you must complete and sign with a Notary Acknowledgement, unless your signature is witnessed by a Los Angeles Fire and Police Pensions staff member.
• Distribution Election and Rollover Forms – forms you must complete and sign; one for the taxable portion, and another for any non-taxable portion
• Authorization for Wire Transfer – form you must complete if you want your rollover distribution to be wire transferred directly to your financial institution for a fee. This is for rollovers only, NOT for cash payments.
• Direct Deposit Authorization Form – form you must complete if you want your refund direct deposited to your checking or savings account. This is for lump sum cash payments only, NOT for rollovers.
• Special Tax Notice Regarding Your Rollover Options under a Governmental 401(a) Plan – summarizes tax information and options available to you.

If you designated a beneficiary before you terminated, we will issue the refund to your designated beneficiary.

If you do not have a beneficiary designation on file, the refund will be paid based on the Plan’s order of succession as stated in applicable City Charter and Administrative Code provisions: 1) Spouse or State-Registered Domestic Partner; 2) Children; 3) Parents; 4) Executor or Administrator of your estate, or to any other person legally authorized to collect money due to you. If the Plan’s order of succession is insufficient to pay a beneficiary, then the California Intestate Succession laws will be applied. See California Intestate Section 6402 for more information.

Additionally, if your total estate (including the refund) is greater than the prescribed limit found in California Probation Code Section 13100, the probate proceedings will need to be initiated.

It is very important to maintain a current beneficiary designation with LAFPP. Doing so ensures that your refund of pension contributions and accrued interest will be paid to the person(s) of your choice and the refund will not be delayed by probate, regardless of your estate’s value.

Note: Should you pass away and leave someone eligible for survivor pension benefits (i.e., spouse/domestic partner, minor/dependent children, dependent parent), your contributions and accrued interest will not be refunded, although your eligible survivor(s) may receive your contribution as part of the Basic Death Benefit, if applicable.

Please visit www.lafpp.com/retirees-beneficiaries/qualified-survivors for more information on survivor benefits.

You may download the refund forms from our website or call Active Member Services to have the forms mailed or emailed to you. There are three (3) choices to receive your refund:

• 100% lump sum cash payment: a check will be issued to you by mail or will be directly deposited to your bank. If you do not elect a direct rollover to an IRA or qualified retirement plan, LAFPP is required to withhold 20% of the payment for federal income tax and, if you choose, we will withhold 10% of your federal income tax withholding amount for California state income tax. You may elect to opt out of the California state income tax withholding only. A 1099-R Tax Form will be mailed to you for your tax filing purposes the following January 31st. Please keep your mailing address current with LAFPP.
• 100% rollover: a check will be issued by mail or via wire transfer to an IRA or a qualified retirement plan if you have an open account. There will be no taxes withheld or penalties applied under this method. Example: Voya Financial Deferred Compensation Plan.
• Combination: You may elect a combination of a lump sum cash payment and a rollover. Please apportion the amount you want as a cash payment and the amount you want as a rollover when filling out your refund forms.

Once your completed forms are signed and notarized, please submit them to:

Los Angeles Fire & Police Pensions
Attn: Active Member Services
701 E. Third Street, Suite 200
Los Angeles, CA 90013
Fax: (213) 628-7716
Email: [email protected]

Note: Forms require notarization, unless your signature is witnessed by a Los Angeles Fire and Police Pensions staff member. If you come to our offices to sign the forms, you do not have to pay for notary service. If you require assistance in completing refund forms or to make an appointment to visit our offices, please call Active Member Services at (213) 279-3140.

Once your refund packet is received and, barring any unforeseen circumstances, it will be processed on the next available payroll. Refunds are issued only once a month, at the end of each month. Your forms must be received by the 10th of the month for your refund to be issued at the end of the month, provided all forms are completed correctly.

Your refund may take longer if there is a court-ordered community property division or back pay of child/spousal support payments.

Yes, the taxable portion of your refund (i.e., contributions made on a pre-tax basis) is taxable as ordinary income. 

Yes, if you are under age 50 (for public safety employees), you will be subject to a 10% Federal and 2½% California state tax penalty for early distribution on your taxable portion. You may defer taxes if you rollover the taxable portion of your refund into another tax qualified account within 60 days. (As amended by the Pension Protection Act of 2006)

Yes. If we issued your refund prior to the calendar year you attained age 72 (age 70 ½ for those individuals who attain age 70 ½ before December 31, 2019), the entire taxable portion of your refund is eligible to be rolled into an IRA or a qualified retirement plan. If the refund is paid in the calendar year you turned 72 (70 ½ for those individuals who attain age 70 ½ before December 31, 2019) or later, a portion of the refund will not be eligible for rollover due to the IRS’ required minimum distribution regulations. Please seek professional tax advice for additional information.

Yes. If your refund is issued before you turn age 72 (age 70 ½ for those individuals who attain age 70 ½ before December 31, 2019), it is subject to a mandatory 20% federal income tax withholding.

Regardless of your age when the refund is paid, California state income tax withholding is optional. However, when you file your taxes during tax season, you will be liable for the state income tax on the taxable amount.

No, LAFPP is prepared to refund any terminated employees their member contributions and accrued interest if they are in a Tier where they are entitled to a refund upon termination. Even if a large number of members were to terminate employment in any given year, LAFPP is prepared to refund member contributions upon request.