Survivor Benefit Purchase Program

Survivor Benefit Purchase Program for Retirees - Charter Amendment D

SURVIVOR BENEFIT PURCHASE PROGRAM FOR RETIREES - Charter Amendment D

Charter Amendment D was passed by the voters of the City of Los Angeles on March 3, 2009 to allow retired members of the Los Angeles Fire and Police Pension System the option to provide a survivor benefit to a spouse married in retirement or a domestic partner declared in retirement.

Plan provisions allowed a benefit continuance only if the member married or filed a domestic partnership declaration one year prior to retirement. This benefit has been amended as follows:

General Provisions

Member to Pay Full Cost - The Retired Member shall pay the full actuarial cost of the survivor benefit through a reduction in his or her monthly benefit.
Vesting Requirement - The right to survivor benefits are not vested until the Retired Member survives at least one year from the date that he or she elects to provide this benefit, unless the Board of Fire and Police Pension Commissioners (Board) determines the death was accidental. If the right to the benefits has not vested before the retiree dies, the payments would be refunded as a lump sum to the spouse or domestic partner.
Only One Election Allowed - A Retired Member may only exercise this election once.
Irrevocable Election - Once an election is made, it is irrevocable. The Retired Member's monthly pension benefits will be permanently reduced and will not increase if the spouse or domestic partner predeceases the member or if the marriage or domestic partnership is terminated.
Survivor Benefit - The benefit allowed by this amendment includes a percentage continuation of the Retired Plan Member's monthly benefit payable to the surviving spouse or domestic partner for the survivor's lifetime. To be eligible, the survivor must be either the spouse or domestic partner of the Retired Plan Member at the time he or she elected the benefit and at the time of his or her death. The survivor is not eligible for health subsidy benefits. The payment of this survivor benefit does not impact the payment of other survivor benefits from the Plan.
Payment Options - The Retired Plan Member shall select the percentage of continuance to be purchased from options provided by LAFPP.
Right to Review, Modify and Terminate the Program -The City has the right to review, modify and terminate the program to maintain cost neutrality. This right cannot be exercised until the program has been operative for at least five years and no more than every five years. If the program is modified or terminated, it will not affect members who had elected the continuance prior to the modification or termination effective date.
Board's Authority to Adopt Rules and Administer the Program - The Board shall administer the Program and adopt rules necessary to implement these changes.

Implementation

Staff is currently accepting applications to purchase a survivor's benefit. For more information, please contact the Retirement Services Section at (213) 978-4495 or (800) 787-2489 ext. 84495#.