Obtain a Cost Estimate.

Log in to MyLAFPP and click on the ”+” symbol next to Benefits & Calculators. Click on Get a PSP/Buyback Estimate/Application, then click on Public Service Purchase Estimate. Enter the information in the required fields and click Submit to generate a cost estimate.

Submit an Application to Purchase the Service.

If service with a public employer is being purchased, an Application to Purchase Public Service is required to verify service with the prior public employer. If military time is being purchased, an Application to Purchase Military Service must be submitted along with the original copy of your ”Form DD-214, Report of Separation”. Your original DD-214 will be returned to you upon staff’s verification. Submit your application and any required documents to LAFPP Active Member Services.

Select Payment Method(s).

After verifying the service, LAFPP staff will calculate the cost of the certified service time based on information obtained from the member, such as expected retirement date, number of survivors, etc. LAFPP will process the purchase according to the member’s method(s) of payment. Members may select from the following payment options, subject to applicable IRS provisions:

• Lump-sum
• Payroll Deduction
• Trustee-to-Trustee Transfer from the City’s Deferred Compensation Plan or another eligible retirement plan within the state of California

Please note: The time required to verify service is ideally 30 – 90 days. However, it may take longer depending on how quickly the public agency responds to LAFPP’s request for information.

True-up the Cost.

Under the following circumstances, a “true-up” or recalculation of the cost for the purchased service will be made prior to the date of retirement on a service pension or date of DROP entry:

• An advance purchase was made 180 days or more prior to the actual date of retirement on a service pension or DROP entry; or,
• If the retirement or DROP entry date differs from that specified at the time of purchase; or,
• If there is a change in the number of known eligible survivors from that specified at the time of purchase; or,
• In the event the pension base differs from that estimated at the time of purchase.

If the trued-up cost is less than the amount the member has paid, including assumed investment earnings, the difference can be refunded upon member’s separation from City service or used to purchase additional eligible service.

If the trued-up cost exceeds what the member has paid, including assumed investment earnings, it will be possible to make a lump-sum payment prior to retirement/DROP entry to complete the purchase or receive pro-rated service based on the amount already paid.

Credit of Service Purchased.

Time will be added to the member’s record upon receipt of a lump sum payment or rollover transfer. If the member elected payroll deductions, service will be added incrementally as payments are received.

Things to Consider:

• If you select the option to transfer funds from your Deferred Compensation account or another eligible retirement plan, you will receive a Trustee-to-Trustee Transfer/Direct Rollover Form.  You must complete the “Member” section and then request the plan’s administrator to complete the “Plan Sponsor” section of the form. Please note that for transfers from the City’s Deferred Compensation Plan, Voya Financial is the plan administrator and they will return your form to Active Member Services along with the payment check to complete the transfer.
• Purchasing your service under the PSP program can be a fairly lengthy process.

Please submit your request at least six months before your anticipated retirement or DROP entry date.