LOS ANGELES VOTERS APPROVE CHARTER AMENDMENT G

A New Tier 6 for Los Angeles Fire and Police Pensions

On March 8, 2011, Los Angeles City voters approved Charter Amendment G.  While the measure provides for some technical modifications to the Fire and Police Pension Plan, it is most known for the establishment of a new Tier 6 within the Plan.  All new members of Los Angeles Fire and Police Pensions hired on or after July 1, 2011 will be subject to the retirement benefits provided under Tier 6.  A summary of key provisions is listed in the table below.

TIER 6 - KEY PROVISIONS
Employee Contributions
% of Salary Contributed

11%

(2% of contribution will support funding of retiree health benefits.  This portion will cease once the member attains 25 years of service.)
Contributions End 33 years of service
Refundable Yes
Service Pension Requirements
Eligibility
Age 50 with 20 years
Final Average Compensation 24-month Final Average Salary (FAS)
Pension %

20 yrs = 40%               25 yrs = 55%               30 yrs = 75%

21 yrs = 43%               26 yrs = 59%               31 yrs = 80%

22 yrs = 46%               27 yrs = 63%               32 yrs = 85%

23 yrs = 49%               28 yrs = 67%               33 yrs = 90% max

24 yrs = 52%               29 yrs = 71%

Cost-of-Living Adjustment (COLA) 3% max, with a COLA Bank
Disability Pensions
Service-Connected

30-90% of FAS

(Minimum pension no less than the greater of 30% or 2% per year of service.)
Nonservice-Connected 30-50% of FAS
Survivor Pensions
Service-Connected Death

Before Retirement:  80% of Member's FAS

After Retirement:  80% of Member's Service-Connected Disability Pension 
(If death occurs within three years and is related to the service-connected disability, survivor receives the "Before Retirement" survivor benefit.)

Nonservice-Connected Death

Before Retirement:  50% of Member's FAS
(with at least 5 years of service)

After Retirement:  70% of Member's Service Pension or Nonservice-Connected Disability Pension

Attention:  Active Members of Tiers 2, 3, 4 and 5

Upon its effective date of July 1, 2011, Tier 6 will only be open to new hires of the Fire, Police and Harbor Departments.  The decision to allow active members of Tiers 2 through 5 to transfer to Tier 6 will be determined by City Council by ordinance.  An actuarial study must be conducted and the transfer must be cost neutral to the Plan.  Details of the transfer provisions will be negotiated by the labor organizations and the City.  LAFPP will continue to monitor the status and report any updates. 

For questions, you may contact the Communications & Special Projects Section at (213) 978-4530, or (800) 787-2489, ext. 84530.