Below find answers to frequent questions asked by our members. Complete a comments form to submit a new question of your own.

• Active Member Services
• Domestic Partnerships
• Public Service Purchase (PSP) Program
• DROP
• Service Pensions
• Retired Member Services
• Disability
• Medical & Dental Benefits
• Social Security and Your LAFPP Pension

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Active Member Services

1. I am resigning from the department in the near future. How long does the processing time take for my refund of contributions?

   It takes eight to ten weeks upon termination of your employment to process a refund of contributions. During that time, Active Member Services (AMS) receives a Payroll Change Document (Form 41) from your employing department. Your payroll status must be changed (active to terminated) by your department before AMS can begin to process your request for a refund. It can take four to six weeks to see the change reflected on the payroll system. You will know your status has been changed when you receive a paycheck for vacation and/or overtime. AMS will complete your application as long as there is not a previously unidentified factor affecting the distribution of funds such as a court ordered community property division or back pay of child support payments.

2. Is my refund of contributions taxable?

   Yes, the taxable portion of your refund is taxable as ordinary income. Upon receipt and verification of your Form 41, AMS will send you a Refund Packet consisting of the following:

   • Letter 0304 – estimate of your refund providing the taxable and non-taxable portions
   • “Refund of Pension Contributions / Tax Information Summary” – summarizes tax information and options available to you; walks you through the process of applying for your refund
   • Distribution Election and Rollover Forms – forms you must complete and sign, one for the taxable portion, and another for any non-taxable portion.
   • Refund of Contributions Questionnaire – basic questions answerable with “yes” or “no” 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 member of the Los Angeles Fire and Police Pensions staff
     
   
   
3. Is there a penalty for early withdrawal?

   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 can 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)

4. How do I go about purchasing my training time?

   You can complete and fax the the Request to Purchase Service Credit to (213) 978-4450, or you may contact Active Member Services at (213) 978-4522 or (800) 787-2489, ext. 84552, and a staff member will take your request over the phone. A cost estimate will be mailed to your home in approximately four to six months.

5. Why does it take 4-6 months to process a quote to purchase training time?

   Active Member Services receives purchase service requests daily and processes them in the order they are received. The number of requests received is approximately 100 to 200 per month. Depending on the type of purchase service you are requesting and the number of requests in process before yours is received, a cost estimate can be mailed either earlier or within the 4-6 months turnaround time.

6. Can I establish reciprocity with an agency I worked for previously?

   No. Currently, there are no reciprocity agreements between outside agencies and the City of Los Angeles Fire & Police Pension System.

7. Can I buy back my military time?

   No. Currently, there are no provisions for service members to buy back military time. However, MOU 24 Police Officers, Lieutenant and Below, includes a Letter of Intent between the Police Protective League and the City supporting Charter/Administrative Code changes, to be established by ordinance, that would permit the purchase of military service and prior full-time service with another public agency. Subsequently, MOU's 22, 23,25 27 and 38 concurred similarly in their support of the Public Service Purchase Program (PSP).

8. Which bonuses are pensionable?

   Fire department bonuses are all pensionable except for the Incidental Management Team (IMT) bonus. Most of Police department bonuses are pensionable except for the Field Assignment and Detective Incentive bonuses. The uniform allowance and overtime are not pensionable.

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DOMESTIC PARTNERSHIP

1. What is a domestic partner?
   
   Domestic partners are two adults in a committed relationship who share a common residence and meet the eligibility requirements where their domestic partnership is filed.
   
   
2. What benefits can a qualified domestic partner get?
   
   Domestic partners may qualify for the same survivor benefits available under the Plan to a surviving spouse if the partners have filed a Declaration of Domestic Partnership with either the Fire and Police Pension Plan (Plan) or the State of California (the State). Same sex couples whose legal union was formed outside of California should check with the Plan to find out if the qualify to be treated the same as a State filed partnership based on Family Code Section 299.2
   
   
3. Should I file with the State or the Plan?
   
   The Plan and the State have separate programs for establishing domestic partnerships with different requirements, rights and responsibilities. Filing with either the Plan or the State makes your domestic partner eligible to qualify for benefits provided to a qualified surviving spouse by the Plan. The eligibility requirements for a qualified domestic partner are essentially the same as for a qualified surviving spouse.
   
   a. Filing with the State (effective January 1, 2005)
   
   The State domestic partner filing provisions are set forth in the California Family Code. State filing is available to same sex couples. Opposite sex couples are not eligible to file unless one or both of the persons meet specified eligibility criteria and are over the age of 62. State filing gives registered couples rights, protections, benefits and responsibilities similar in most aspects to those of married couples. The partner will be treated the same as a spouse for purposes of qualifying for survivorship benefits or receiving contributions from the Plan, if a member dies.
   
   Further information and the State filing form can be obtained from any county clerk or at the office of the Secretary of State. Learn more about filing with the State.
   
   b. Filing with the Plan
   
   Same sex couples and opposite sex couples meeting the Plan's domestic partnership requirements are eligible to file with the Board of Fire & Police Pension Commissioners. Registration with the Plan only relates to benefits payable by the Plan (survivor pension and health subsidy after a member dies.)
   
   You must file a Declaration of Domestic Partnership with the Board of Fire & Police Pension Commissioners along with a copy of a valid driver's license of each partner or other proof of a common residence. Registering your domestic partnership with your employing department or the City's Personnel Department does not qualify a domestic partner for survivorship benefits from the Plan.
   
   
4. What are the domestic partner eligibility requirements for receiving a survivor pension?
   
   The requirements for qualified domestic partner pension benefits are the same as for a qualified surviving spouse. Following are the requirements to receive a surviving spouse/domestic partner pension:
   
   Service Pension - if your spouse/domestic partner retires on a service pension, to qualify for a survivor pension you must be married to or be a state-registered or Plan-registered domestic partner of the member for at least one year prior to the effective date of the pension and on the date of death.
   
   Service-Connected Disability Pension -you must be married to or be a state-registered or Plan-registered domestic partner of the member on the effective date of the pension and on the date of death.
   
   Service-Connected Death - you must be married to or be a state-registered or Plan-registered domestic partner of the member on the date of death. (If your spouse/partner were to die on active duty as a result of their duties as a police officer or firefighter, the City's Personnel Department will administer your health plan and subsidy. Additional information on this program can be obtained by calling Personnel's Employee Benefits Section at (213) 485-2440.)
   
   Non-Service Connected Death and Non-Service Connected Disability Pension -you must be married to or be a state-registered or Plan-registered domestic partner of the member at least one year prior to the effective date of the pension and on the date of death. The member must also have had at least 5 years of service. (Note that the member must have had at least 10 years of service for the member or the surviving spouse/domestic partner to qualify for a health subsidy.)
   
   
5. What are the domestic partner eligibility requirements for receiving a surviving spouse/domestic partner health subsidy?
   
   If you receive a surviving spouse/domestic partner pension, you qualify for a health subsidy if the following conditions are met:
   
   * You are in a City approved (one offered by Fire Relief, Police Relief, UFLAC or the Personnel Department) health plan.
   * The member had at least 10 years of service.
   * The member would have been at least 55 years old.
   
   Learn more about surviving spouse/domestic partner health benefits.
   
   
6. When are qualified domestic partners eligible to begin receiving the pension and health subsidy benefits?
   
   The effective date of this benefit is January 17, 2000. However, you must meet the eligibility requirements for the various types of pensions. Those requirements are covered above in Question #4.
   
   
7. I am already retired. Can I file a domestic partner declaration and qualify my domestic partner for a pension?
   
   If you retired prior to the effective date of January 17, 200, you cannot qualify a domestic partner to receive survivor pension or health subsidy benefits.
   
   
8. If I filed a domestic partner affidavit with the City's Personnel Department, do I still have to file one with LAFPP?
   
   If the affidavit filed with the Personnel Department is verified and you filed a Declaration of Domestic Partnership form prior to March 31, 2000, the effective date of your domestic partnership will be the date you filed with the Personnel Department.
   
   If you file a Declaration of Domestic Partnership with the Department of Fire & Police Pensions after March 31, 2000, the effective date of your domestic partnership is the date the Department of Fire & Police Pensions receives your application.
   
   
9. If I file a domestic partner declaration with LAFPP, should I still file one with the Personnel Department?
   
   The form you file with the Fire & Police Pension System is for pension benefits and retiree health subsidy. If you are an active employee and want to cover your domestic partner on your health insurance, you must file a form with the City's Personnel Department. Call the Employee Benefits Section at (213) 485-2440 to get a form.
   
   
10. How are my benefits affected if I terminate a domestic partnership?
    
    Under state law, your Plan benefits become subject to community property law if your domestic partnership is state-registered. Court proceedings are normally required to terminate these domestic partnerships, just as with marriages and the community property interest in your benefits is subject to division by the court in the same manner as when a marriage is terminated.
    
    For information about terminating a state-registered domestic partnership, you should contact any county clerk or the office of the Secretary of State.
    
    
11. How do I terminate a domestic partnership?
    
    Filing solely with the Plan will not create community property rights in your pension benefits or inheritance rights to your contributions. Termination of these partnerships is governed by the Plan provisions and does not require court action.
    
    A Plan-registered domestic partnership terminates when any of the following occurs:
    
    * One partner gives or sends by certified mail, to the other partner a written notice that he or she is terminating the partnership.
    * One of the domestic partners dies.
    * One of the domestic partners marries.
    * The domestic partners no longer share a common residence.
    
    Whenever one of these events ends the partnership, one of the domestic partners must file a Notice of Termination of Domestic Partnership Form with the Department of Fire & Police Pensions.
    
    A new Declaration of Domestic Partnership cannot be filed until at least six months after the filing of a Notice of Termination of Domestic Partnership. The six-month waiting period does not apply where the domestic partnership was terminated because of death or marriage.
    
    
12. Whom should I contact if I have other questions about domestic partners?

    If you have more questions, please contact the Active Member Services Section at (213) 978-4522 or (800) 787-2489 ext.84522 or pen.pensions@lacity.org.

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PUBLIC SERVICE PURCHASE

1. What is the Public Service Purchase (PSP) Program?

PSP is a voluntary program that allows members of the Los Angeles Fire and Police Pension (LAFPP) Plan who served in the military or were employed by other public agencies to purchase service credit in the pension plan, subject to requirements and limitations established by ordinance.

2. What is the advantage of purchasing service credit?

The service credit you purchase will add to your total years of service credit and therefore, increase the monthly pension allowance that you and your qualified survivors would receive from LAFPP.

3. Will the time I purchase count toward DROP or health subsidy eligibility requirements or other plan benefits?

No. Purchased service credit will not count toward years of service credit for health subsidy credit, eligibility for service retirement or eligibility to enter DROP. It also does not count toward years of service for ceasing pension contributions. It will only count toward increasing your monthly pension allowance and any survivorship benefits.

4. What types of service can I purchase?

Eligible types of service that can be purchased include service with:

• a branch of the United States military, but only if the member was honorably discharged;
• a bonafide police agency or fire suppression agency, but only if the member was not terminated for cause; and
• any agency of the United States Government: Federal, State or local or Postal Service.

The eligible service must be a minimum of six months of full-time, uninterrupted service with an eligible public entity.

5. How many years can I purchase?

If you purchase PSP time, you must purchase a minimum of six months and may purchase up to a maximum of four years of service.

6. How much will it cost?

You will pay the full actuarial cost determined by an actuary. Factors that will be considered in the actuarial assumptions include:

• member’s age;
• date benefits will first become payable;
• number of possible beneficiaries;
• ages of survivors;
• member’s pension base;
• investment earnings rate assumed by the plan; and
• any other factors that are relevant to cost neutrality.

The PSP ordinance requires that the program be cost neutral. Therefore, the member will be required to pay the full cost of the benefit. The purchased service includes your contribution plus the City’s cost.

The following is an example of a comparison of pension benefits for a Tier 5 member with a final average salary of $8,000 per month and 25 years of service, who purchases four years under the PSP program:

In the above example, under the PSP Program the member is responsible for paying the full cost of the increased pension and survivor benefits gained from the additional years of service purchased.

A PSP calculator is available to provide an estimate of the cost of the additional service credit based on the above factors.

7. What does it mean that PSP must be cost neutral?

One of the key provisions is that the PSP program must be cost neutral. This means that in addition to the normal member pension contribution rate of 7, 8 or 9%, the member is responsible for paying the full cost of each additional year of service that is purchased.

For example, Tier 5 members currently pay 9% of salary in pension contributions, while the City contributes approximately 19% of sworn payroll toward the pension system. Combined they represent approximately 30% per year to fund the pension system. However, the individual cost factors used to determine your cost for each year of service purchased may increase the combined cost.

The cost factors used to establish the actuarial cost for PSP include:

• member’s age;
• date benefits will first become payable;
• number of survivors;
• ages of survivors;
• member’s pension base;
• investment earnings rate assumed by the plan; and
• any other factors that are relevant to cost neutrality for the pension plan.
  

8. Why is it so much more costly than purchasing my training time?

There is no cost neutrality provision for purchasing City of Los Angeles training time which is provided for under a different section of the Charter. Therefore, you only pay your pension contribution plus any applicable interest.

9. Is there a way to determine if this purchase will benefit me?

A PSP calculator is available to provide an estimate of the cost of the additional service credit and the additional monthly amount it would provide. We strongly recommend that you discuss this option with your financial adviser to determine if this purchase would be beneficial for you. Consider your overall financial situation and retirement needs very carefully before making this decision.

10. What payment options are available?

You have a choice of the following payment options (may combine):

• Lump sum payment – a single payment for the total projected cost;
• Payroll deduction – automatic monthly deductions from your paycheck (to be available by December 1, 2008); and
• Deferred Compensation – a trustee to trustee transfer, no fees, taxes or penalties.
  

11. Can I use my DROP money to purchase service credit?

No, you cannot use your DROP money to purchase service credit. Service credit must be purchased prior to DROP entry or service retirement.

12. What types of funds can I use? I have funds in another employer account?

A rollover from Deferred Compensation is the only transfer allowed. However, you may be able to transfer other types of retirement funds, such as those on account with a prior employer, into your Deferred Compensation account, then use these funds to purchase PSP time.

13. How do I apply for PSP?
    
    
    1. Obtain a cost estimate using the PSP calculator.
       
       
    2. 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 a “Form DD-214, Report of Separation”.
       
       
    3. Once the service is verified, 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. Members will select their method(s) of payment and staff will process the purchase accordingly.

    Lump sum payments and/or transfers from Deferred Compensation can currently be processed on a manual basis. Contracts for payroll deduction cannot be processed at this time.

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

4. 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 and under the following circumstances:
   
   
   • 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 the date specified at the time of purchase; or,
   • If there is a change in the number of known eligible survivors; or,
   • If 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 or be used to purchase additional eligible service, not to exceed the maximum of four years.

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 to complete the purchase or receive pro-rated service based on the amount already paid.

In the event the pension base should change after a purchase has been finalized, the years of service purchased will be adjusted, not the monthly benefit.

5. Service time will be added to the member's record only upon completing payment.
   

14. Who do I contact to apply for PSP?

Contact the Active Member Services Section at (213) 978-4522 or (800) 787-CITY ext. 84522.

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DROP

1. How much interest will my DROP account earn?

   Your DROP account will earn interest in the amount of 5% annually. Interest payments will be credited to your DROP account on June 30th and December 31st. No interest shall accrue after a member terminates DROP participation.

2. Can I get an estimate of how much money my DROP account will accumulate?

   Members are provided with a 5-year projection (estimate) during their DROp enrollment appointment.

   Additional estimates may be requested in writing. You must submit your written request to the DROP Administrator located at 360 E. 2nd Street, Suite 400, Los Angeles, CA 90012 or via fax at (213) 978-4504. It takes approximately 30 days to process your request.
   
   
3. Are there any income tax consequences to my entering DROP?

   The distribution of your DROP account is subject to federal and state taxes in effect at the time you receive it. You may defer income taxes by rolling your distribution into a tax-qualified plan or to an IRA. We have prepared a tax notice which discusses in a general manner some of the relevant tax rules now in effect. We encourage you to consult with your personal tax advisor both before you enter DROP and before you leave DROP.

4. Can I participate in both DROP and the City’s Deferred Compensation program?

   Yes. As long as you are an active employee receiving a salary you can contribute to deferred compensation. Deferred compensation money comes out of your active salary while DROP money is a “retirement benefit”.

5. Why do I have to sign the various releases, waivers and covenants that are contained in the DROP election application? What happens if I refuse to sign them?

   The various releases, waivers, and covenants are designed to protect you, the Fire & Police Pension Plan and the City. We have coordinated the DROP design phase with each employee organization. We have done our best to disclose to you all of the advantages, as well as, disadvantages of DROP. In order to participate in DROP, you must sign all required forms or you will not be allowed to enter the program.

6. What if I want to take back my DROP election?

   The only way you can do so is in person within seven calendar days after the date you sign the DROP Application Form. You must submit a DROP Revocation Notice to the DROP Administrator located at 360 E. 2nd Street, Suite 400, Los Angeles, CA 90012. If you do not revoke your election in person and within the seven calendar days, you are bound by that election. Your decision to enter DROP and to terminate sworn employment at the end of the DROP period is irrevocable. (Note that members who participate in DROP are not eligible for reactivation.) We encourage you to consult with outside advisors prior to making your decision to enter DROP.

7. What happens if I marry while I’m in DROP?

   Your marriage will be deemed to be a marriage occurring post retirement, and therefore your spouse will not be eligible for survivor benefits. You must be married or be in a recognized domestic partnership for one year prior to entering DROP in order for your surviving spouse/domestic partner to be eligible as a qualified surviving spouse or qualified domestic partner for pension benefits. If you are in a domestic partnership, your Declaration of Domestic Partnership must be on file with the Fire & Police Pension Department one year prior to entering DROP. Note: You must file a specific Fire & Police Declaration of Domestic Partnership with the Fire & Police Pension Department or with the State of California to establish a domestic partnership.

8. What happens if my marriage gets dissolved prior to or while I’m in DROP?

   Some or all of the amount in your DROP account may be community property depending on your dissolution (formerly divorce) judgment or order. Therefore, your ex-spouse may have a claim to a portion of the DROP account and may be entitled to a share when you exit DROP and the DROP account is distributed. Whether this applies in your case depends on the court’s orders and judgments. You may wish to check with your own lawyer regarding this issue. Note: Until a member actually terminates sworn employment with the City of Los Angeles and becomes eligible to receive a monthly pension benefit, no monies shall be paid to any persons from the DROP account. There are no provisions within the Fire & Police Pension Plan to permit payment of any retirement benefit until the Member terminates sworn City employment.

9. What happens if I’m promoted while in DROP?

   The amount of your retirement benefit, both the amount credited to your DROP account and the amount you eventually receive as a monthly retirement allowance when you actually terminate employment and retire, will not reflect the additional pay from your promotion. So, if you think a promotion for you is likely, you may want to consider the financial impact of delaying your entry into DROP until after your promotion. You may wish to also consider that your monthly pension entitlement, if in Tiers 3, 4, or 5, is based upon the calculation of a twelve month final average salary.

10. What happens if I’m demoted while in DROP?

    The amount of your retirement benefit, both the amount credited to your DROP account and the amount you eventually receive as a monthly retirement allowance, will not be reduced by any reduction in your salary that accompanies the demotion.

11. What happens if I resign while in DROP?

    Resigning from sworn employment with the City will automatically terminate your participation in DROP. You will be deemed to have retired. You will begin receiving your monthly retirement benefit and will have to decide what to do with your DROP account. (See question 26 – options when you leave DROP.)

12. What happens if I am terminated while in DROP?

    Being fired automatically terminates your participation in DROP. At the Member’s request, distribution of the DROP account will be withheld while the appeal of the Member’s discharge is pending. Should the Member be reinstated, the Member may continue to participate in DROP if the account was withheld and the original period of DROP participation would continue. Interest will be applied as if it were never suspended. If the DROP funds have been distributed, the Member cannot return to sworn employment or continue in DROP even if his/her termination is overturned.

13. What happens if I join DROP and then become disabled?

    If you apply for and receive a disability pension, your length of service and pay adjustments, etc., are restored as if you never entered DROP. However, you must forfeit your entire DROP account should you receive the disability pension. Once you have received your DROP account funds, you are no longer eligible to apply for or receive a disability pension.

14. What happens if I die while I’m in DROP?

    Service-connected Death: The member’s qualified surviving spouse or qualified domestic partner shall have the option of forfeiting the DROP money and acting as if the member never entered DROP, or taking the DROP money along with the survivor pension benefits he/she would be entitled to. If a member was not married one year prior to entering DROP, the surviving spouse/domestic partner shall have the option of forfeiting the DROP money and acting as if the member never entered DROP in order to become a qualified surviving spouse/domestic partner eligible for survivor pension benefits.

    Non-service Connected Death: The normal post-retirement continuance benefits of the tier in which the member belongs will be available, plus the proceeds of the member’s DROP account.

15. When do I choose a beneficiary for my DROP account?

    This is very important. We encourage you to choose a beneficiary for your DROP account when you enter the DROP program. You may change the beneficiary at any time prior to exiting DROP. Please remember that circumstances change. You may get a divorce, marry or a loved one may pass away. From time to time make sure that the person named as your DROP beneficiary is the person you want named. This is a frequently overlooked issue, and overlooking it may have some very unfortunate consequences for you and yours. Your choice of a beneficiary cannot defeat any community property interest awarded an ex-spouse in a dissolution.

16. Will I pay contributions into the retirement system while I’m in DROP?

    Yes. To maintain the requirement in the Los Angeles City Charter that DROP be cost neutral, both your contributions and City contributions will continue while you’re in DROP at the rate and for the duration of time specified for your tier, as shown in the chart below. These contributions go into the Pension System general fund. They are not applied to your DROP account.

    If you are …	You contribute …	Your contributions stop after you complete …
    Tier 2	7%	30 years of service
    Tier 3 or Tier 4	8%	30 years of service
    Tier 5	8% or 9%*	33 years of service

    Members contribute 8% and the City contributes 1% as long as the Pension Plan is fully funded. If the plan’s funding drops below 100%, Tier 5 members may contribute 9%.

17. After I’m in DROP, will my pension contributions cease when I reach the maximum years of service (YOS) for my tier?

    Yes. Although YOS while you are in DROP do not count toward your service pension benefits, they do count toward the maximum number of years in which you must make pension contributions. For example, a Tier 3 member entering DROP upon completing 28 YOS, would cease making contributions after two years of participation in DROP.

18. Can I receive a refund of my pension contributions?

    No. Once you have enrolled in DROP, you are no longer eligible for a refund of pension contributions.

19. What happens to my sick, vacation and overtime accruals when I enter DROP?

    While you are in DROP, you are still considered active for purposes of sick, vacation, and overtime accrual. Your operating Department will make payouts of unused sick, vacation, and overtime when you terminate employment with your Department. Sick, vacation, and overtime cannot be used beyond the end of the DROP participation period.

20. When will I receive written notice from you as to the balance in my DROP account?

    You will receive a DROP account statement for the periods ending June 30th and December 31st.

21. Will I be able to take a loan from my DROP account?

    No. The provisions of DROP do not allow you to take a loan from your DROP account.

22. When I terminate participation in DROP, do I have to retire at that time?

    Yes. DROP requires that when you terminate participation from the DROP program, you also terminate sworn City employment. You must schedule an appointment with your Department’s Retirement Counselor to complete the service pension process. You must also schedule an “Exit Consultation” with the Fire & Police Pension Department to complete a Distribution Election Form in order to receive distribution of your DROP account and your monthly service retirement allowance. It is suggested that you schedule your exit consultation at least 30-45 days prior to your intended exit date for processing.

23. Will I still receive cost-of-living adjustments to my pension payments?

    Yes. Cost-of-living adjustments (COLAs) under your tier will be applied to your monthly service pension while you are in DROP; however, the amount of the COLA is capped at 3% for all tiers, as shown below. Note that for Tier 5, the COLA bank can be used.

    If you are in …	Your maximum COLA percentage while you are in DROP is …
    Tier 2*, Tier 3 or Tier 4	3%
    Tier 5	3% with a COLA bank**

    * COLA is uncapped for retired Tier 2 members after they officially retire (no longer participate in DROP).

    ** Any increase in the CPI above 3% is put in the “COLA bank”. The COLA bank is drawn from in future years, whenever the local Consumer Price Index (CPI) doesn't’t increase by at least 3%. In such years, some or all of the COLA bank balance is added to the change in the CPI to increase the COLA. The year’s CPI percentage plus the amount taken from the COLA bank cannot exceed 3%.

24. What is the effective date of my DROP participation?

    The same date you elect to make your service pension effective.

25. While I’m in DROP, will I receive any credit for retirement benefit calculation purposes for the time I am in DROP?

    No. Service credits are determined as of the time you enter DROP and no additional credit will be given for any time while you are in DROP. Prior Service Time, Lost Service Time (Tier 2) and Workers’ Compensation State Rate Time or Recruit Training Time (Tiers 3, 4 or 5) must be purchased prior to enrollment in DROP in order for that time to be counted toward your length of service. Also consider working to the end of the payroll period immediately prior to your date of retirement if you wish to receive credit toward your length of service for that pay period.

26. What are my options when I leave DROP?

    At the time you leave DROP, you will have to choose between (1) a lump sum payment of the balance in your DROP account, (2) a rollover of the balance in your DROP account to an IRA or to another tax-qualified retirement plan, or (3) a partial rollover to an IRA or tax-qualified retirement plan and a lump sum distribution of the balance of your DROP account. When you are nearing the end of your DROP participation period, you will need to contact Fire & Police Pension Department administrative staff for further information and to select your distribution option. There may be significant income tax ramifications to your choice, so you may wish to take this information to your personal financial advisor. It is important to make your choice with care.

27. Can the provisions of DROP be changed?

    Yes, but members already in DROP will not be affected by any changes to the DROP ordinance.

    Until any new changes are approved, the provisions of DROP are carried over to the new DROP enrollment window period.

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Service Pensions

1. How do I get a letter for Social Security or for pension verification for a loan?

   The members are advised to submit a written request (fax or U.S. Mail). The request must be signed by the member and include the last four digits of your Social Security number. The response is completed and mailed within two business days.

2. What will be my wife's pension if I die?

   A calculation is performed to determine the actual amount of the survivor benefit, to date.

   To request verification that your spouse is eligible for benefits, the member must submit a signed written request, including the last four digits of your Social Security number and the name of your spouse. The member's records are reviewed to verify that the spousal information remains the same and that your spouse is qualified for benefits. The response is completed and mailed within five business days.

3. What Tier am I in?

   The information in HOW TO: Determine Your Plan Tier will help you identify your tier using your pension check.

   You can also contact the Service Pensions Section at (213) 978-4575 or (800) 787-2489, ext. 84575 and a staff member can provide that information to you.

4. What pension amount will I receive when I retire?

   A signed written request is required providing the projected date of retirement. Upon receipt, the member's service records are reviewed and a pension estimate is prepared based upon the date provided and current salary information. Responses are completed and mailed within 10 business days.

5. How soon should I submit my pension application in order to receive a pension at the end of the month of my retirement?

   Members are advised submit their applications at least four to six weeks in advance.

6. How much money will my former spouse receive when I retire?

   A signed written request is required providing the projected date of retirement and marital period information if the Department does not have QDRO documents on file. A calculation of the member's benefit is prepared first.

   The community property portion is determined based upon the marital period and the member's pension amount. Responses are completed and mailed within 10 business days.

7. How do I change my address?

   Members are advised to submit a signed written notification of the address change (fax or U.S. Mail). You can download a Change of Address – Pensioners form. You can also write a letter stating the current address, the new address, member's signature and the last four digits of the Social Security number.

8. I am divorced from a LAFFP pensioner and receiving a community property share of this member’s pension. Will my portion continue when if the member dies?

   Your monthly benefit will not continue if the member died and there is no other qualified survivor receiving a survivor’s benefit, since the community property portion is deducted from the member's benefit. If payments are not being made to the member or other qualified survivor, you will no longer receive a pension. You will only receive a benefit as long as there is member or qualified survivor receiving a monthly pension check.

9. Why does it take so long to process final checks due to the estates of deceased members?

   Final payments due to the estates of deceased members cannot be processed until:

   • a death certificate is received;
   • the pension discontinuance is approved by the Board of Fire & Police Pension Commissioners;
   • the direct deposit reversal is completed and a cashier's check is received from the bank, if applicable; and
   • a status 9 document (Form 43P) has been processed.

   If the death is reported in a timely manner, this process can still take up to 30 to 60 days to complete, because our benefits are processed once a month, at the end of the month.

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Retired Member Services

1. When is my money deposited in my bank account?

   Your direct deposit funds are available to you on the first WORKING day of the month.

2. How do I change my direct deposit or tax withholding?

   Download and complete a Direct Deposit form or Tax Withholding form and mail it to us at: 360 E. Second Street, Suite 400, Los Angeles, CA 90012. In addition, forms can be mailed to you by calling the DROP/Retired Member Services Section at (213) 978-4495 or (800) 787-2489, ext. 84495.

3. How do I cancel/change my voluntary payroll deductions?

   To change a voluntary deduction, you must directly call the agency where the deduction was made.

4. How do I update my address?

   Mail or fax a Change of Address – Pensioners form to our Service Pensions Section at: 360 E. Second St., Suite 400, Los Angeles, CA 90012 or you may fax it to (213) 978-4504. You can also send a signed written request including your current address, your new address, and the last 4 digits of your social security number.

5. How do I get an awards/verification letter?

   Please call the Service Pensions Section at (213) 978-4575 or (800) 787-2489 ext. 84575.

6. Can I get a copy of my direct deposit statement?

   An exact copy of your direct deposit statement is not available; however a screen print providing the majority of information can be printed for you by calling the DROP/Retired Member Services Section at (213) 978-4495 or (800) 787-2489 ext. 84495.

7. Can you give me tax advice?

   No. You will need to speak with your tax advisor or the taxing agency.

8. Do you deduct non-California state taxes?

   No. We only withhold state taxes for the State of California.

9. Can you help me with questions regarding my medical/dental subsidy?

   Our Medical and Dental Benefits Section can assist you at (213) 978-4560 or (800) 787-2489 ext. 84560.

10. When will the new cost-of-living adjustment (COLA) information be available?

    In late March of each year, the Bureau of Labor Statistics will establish the Consumer Price Index percentage, which we will apply effective July 1, and will be reflected on your pension payment dated July 31. Be sure to read through the information available in Cost of Living Adjustments (COLA).

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Disability

1. Can I work when I'm on a disability pension?

   Members of the pension system are allowed to work if they are on a disability pension. However, they should be aware of any work restrictions that the pension doctors assigned to them when the pension was granted. If they are working in a capacity that exceeds the work restrictions of the pension doctors, the Board of Fire and Police Pension Commissioners has the authority to review the pension and adjust it accordingly if it is determined that the disability status has changed.

2. Can my disability pension be reviewed even though a scheduled or periodic review was not assigned?

   Yes. Some disability pensions are granted with a scheduled review. These are typically cases where the disability is determined to have a potential to change in the near future and the Board reviews the granted disability to make any adjustments to the pension that may be warranted. However, the City Charter and Administrative Code grants the Board of Fire and Police Pension Commissioners the authority to review all disability pensions.

3. Do I need an attorney if I request a disability pension?

   The choice to retain representation is entirely up to you. The only exception is if your application involves psychiatric injury. Due to the nature of psychiatric injuries, the Board of Fire and Police Pension Commissioners has adopted rules requiring cases involving a psychiatric condition to have representation. This is based on requests by treating physicians and physicians on the panel of examiners for the Department of Fire and Police Pensions.

   Applicants who seek representation must be represented by either legal counsel or by a representative of an organization registered with the City Clerk's Office (e.g. LAPPL, UFLAC, etc.).

   Applicants with cases that do not have a psychiatric component may choose to represent themselves.

   Disability Pension cases are presented to the Board of Fire and Police Pension in one of two manners. The first is when the applicant agrees with all of the elements of the recommendation that staff gives to the Board regarding the pension application. In this situation, when the case is at the Board, the Board votes on the case and reads the file into the record with the understanding that all interested parties agree with the recommendation. It typically takes less than 5 minutes for the Board to complete their necessary administrative actions. All other cases are scheduled on the Board's agenda with the understanding that there is disagreement with some or all of staff's recommendation on the disability application. In these scenarios, the applicant is given the opportunity to present his or her case to the Board and explain any disagreements with staff's recommendation. Not all of the cases that go to the Board have representation. Again, it is an individual decision that needs to be made by you, as you know the complexity of your case. Some of these cases have taken up to an hour to present to the Board, depending on the complexities of the case. The Hearing is not adversarial, just an opportunity for the applicant to explain any disagreements with the recommendation.

   An applicant who represents him or herself at a concluded hearing may request a rehearing within 90 days after the Board has adopted the Findings of Fact for the purpose of being represented by legal counsel.

4. What is recaptured by Workers' Compensation if I get a disability/surviving spouse pension?

   If a Disability Pension is granted, service connected or non-service connected, regardless of the disability involved, the following will be recaptured by Workers' Compensation:

   • All permanent disability cash awards, including attorneys fees
   • Temporary Disability paid at State Rate
   • Advances from permanent disability
   • Vocational Rehabilitation Maintenance Allowance

   Surviving Spouses are not required to pay back Workers' Compensation awards of a member's prior injuries. Surviving Spouses pay back the State Death Benefit when a surviving spouse pension is granted, service connected or non-service connected.

   Arrangements for the recapture of funds are made with the Accounting Section of the Department of Fire and Police Pensions and the City's third-party Workers' Compensation administrator.

5. I'm getting things organized and I'd like to give you records for my Dependent Child so that he/she is on file with your office if I die before him/her. Who receives those records in your office?

   A Dependent Child is a child of a member who became mentally or physically disabled before age 21 and is not capable of earning a living. Dependent Children become eligible for benefits upon the death of their parent who is a member of the pension system. Since processing of the Dependent Child benefits do not start until the death of the pension member, it would be prudent to keep essential documents available for others to provide the Fire and Police Pensions Department upon your death. We currently do not have a system to archive records for potential dependent children to be retrieved when they are needed in the future. Please arrange to have information documenting the disabling condition of your child (e.g. medical records, school records, and assisted living or institutionalization records) sent to our offices upon your death. In addition, we will also need the birth certificate for your child, marriage certificate for you and your spouse, any previous dissolution decrees for previous marriages, guardianship/conservatorship papers, and a written request for the child to be granted dependent child status.

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Medical & Dental Benefits

Health Subsidies & Medicare Requirements

1. I live outside the State of California and have medical insurance coverage with premiums partially paid by my current employer. Is there a way to utilize my LAFPP medical subsidy allowance towards the premium payments made by me?
   
   For those pensioners and qualified surviving spouses/domestic partners who live outside of California (or within the state but not within a City-approved medical plan service area), they may receive reimbursement, up to the maximum monthly health insurance subsidy allowed. Reimbursement will be made for health insurance premiums paid to a non-City approved, state-regulated health plan.
   
   Dental plan premiums do not qualify for reimbursement under this plan.
   
   Learn more about the Health Insurance Premium Reimbursement Program.
   
   
   
2. I have heard that I need to sign up for Medicare by age 65. What are LAFPP's requirements regarding the Medicare program?
   
   All members, qualified surviving spouses and qualified surviving domestic partners receiving health insurance subsidies are required to enroll in Medicare ar age 65. Some pensioners become eligible for premium-free Medicate Part A at age 65. All pensioner become eligible for Medicare Part B at age 65.
   
   At age 65 all pensioners must do the following to remain eligible for a health insurance subsidy or health insurance premium reimbursement:
   
   
   • Provide the Department of Fire & Police Pensions with a copy of your Medicare card.
   • Sign and return a Fire & Police Pensions Medicare Information Card.
   • Enroll in a Department-approved health plan or participate in the Health Insurance Premium Reimbursement Program.
   • Enroll in Medicare Part A if eligible for this at no cost.
   • Enroll in Medicare Part B and maintain your Medicare Part B enrollment by paying the required monthly premiums directly to Medicare.
     
     For more detailed information regarding Medicare requirements and Medicare Part B monthly premium rates, please see pages 4 and 5 of the January 2008 Pension Perspectives newsletter.
     
     
     
3. Am I eligible for a LAFPP medical subsidy?
   
   You are eligible for the subsidy if you:
   
   
   • Have 10 complete years of service; AND
   • Are at least age 55 with a retirement date after June 30, 1998; or are at least age 60 with a retirement date before July 1, 1998.
   • Members who are between ages 55 and 60 and who retired after June 30, 1988 but before July 1, 1998 may be eligible for a special flat-rate Memorandum of Understanding subsidy.
   • Enroll in Medicare to the full extent of eligibility (usually at age 65).
     
     
     
4. Am I eligible for a LAFPP dental subsidy?
   
   You are eligible for the subsidy if you:
   
   
• Are enrolled in a City-approved dental plan,
• Have 10 complete years of service; AND
• Are at least 55 years of age.
  
  
5. I am not currently enrolled in a City-approved medical/dental plan and am experiencing a major change in my life (i.e. move, retirement from a post-LAPD/LAFD job, divorce, etc.). May I immediately enroll in a City-approved medical/dental plan or must I wait until open enrollment?
   
   The Associations which administer the City-approved medical and dental plans have different rules involving qualifying events for immediate health plan coverage eligibility. Contact the appropriate associations (s) about whether your life change is a qualifying event for immediate enrollment in their plans or whether you need to wait for their open enrollment periods.
   
   Los Angeles Firemen’s Relief Association (LAFRA) or call (800) 244-3439 or (213) 380-2900
   Los Angeles Police Relief Association (LAPRA) or call (888) 252-7721
   United Firefighters of Los Angeles City (UFLAC) or call (213) 977-9014
   
   

For Qualified Surviving Spouses/Qualified Domestic Partners:

1. How do I qualify for a subsidy if I am a surviving spouse/domestic partner?

   If you are currently receiving a surviving spouse/domestic partner pension payment from us, you are eligible for a health subsidy if you meet the following qualifications:

   • You must be in a City-approved health plan (one offered by Fire Relief, Police Relief, UFLAC or Fire & Police Pensions).
   • Your spouse/domestic partner must have had at least 10 years of service.
   • Your spouse/domestic partner must have been receiving, or been eligible to receive, a health subsidy at the time of death; or, you will be eligible when your spouse/domestic partner would have been 55 years old.
   
   
2. Does it matter what type of pension my spouse/domestic partner had?

   The type of pension does not matter. As long as the above requirements are met, you would be eligible for a health benefit. However, if your spouse/domestic partner died on active duty as a result of their duties as a police officer or firefighter, the City’s Personnel Department will administer your health subsidy/plan. Additional information on this program can be obtained by calling the Personnel Department’s Employee Benefits Section at (213) 978-1655.

3. I started receiving a surviving spouse pension many years ago. Do I qualify for a health subsidy?

   You qualify for this benefit if you meet the conditions specified above under the question "How do I qualify?"

4. Do I have to apply for a surviving spouse/domestic partner benefit?

   You do not have to apply for this benefit. Our computer system is programmed to provide it to any qualified surviving spouse/qualified domestic partner.

5. My spouse/domestic partner is currently getting a pension. If my spouse/domestic partner predeceases me, will I be eligible for a health subsidy?

   If you qualify for a survivor pension upon your spouse/domestic partner’s death, you may also qualify for a health subsidy. Here are the qualifications for survivor pensions for spouses/domestic partners:

   • Service Pension – if your spouse/domestic partner is on a service pension, to qualify for a survivor pension you must be married to or be the qualified domestic partner of the member for at least one year prior to the date of the pension and on the date of death.
   • Service-connected disability pension – you must be married to or be the qualified domestic partner of the member on the date of the pension and on the date of death.
   • Service-connected death – you must be married to or be the qualified domestic partner of the member on the date of death. (If your spouse/domestic partner were to die on active duty as a result of their duties as a police officer or firefighter, the City’s Personnel Department will administer your health subsidy/plan. Additional information on this program can be obtained by calling the Personnel Department’s Employee Benefits Section at (213) 978-1655.)
   • Non-service connected death and non-service connected disability pension – you must be married to or be the qualified domestic partner of the member at least one year prior to the date of the pension and on the date of death. The member must also have had at least 5 years of service. (Note that the member must have at least 10 years of service for the member or the survivor to qualify for a health subsidy.)
     
     
6. Where can I get information about the plans available to me?

   Information can be obtained from the following associations:

   • Fire & Police Pensions, Medical and Dental Section: (800) 787-2489 ext.84560 or pen.pensions@lacity.org
   • Los Angeles Firemen’s Relief Association (LAFRA): (800) 244-3439 (toll-free)
   • Los Angeles Police Relief Association (LAPRA): (888) 252-7721 (toll-free)
   • United Firefighters of Los Angeles City (UFLAC): (800) 252-8352 (toll-free)
   
   
7. What is the amount of my health subsidy?

   If you are not in a Medicare plan, or are in Medicare Part B only, your subsidy is based on your spouse/domestic partner’s years of service. You will be entitled to 4% per year of service (up to a maximum of 25 years of service) of the current City maximum subsidy of $511.76. However, the subsidy cannot be more than the single-party cost of your health plan.

   If you are in a Medicare A & B plan, you will be entitled to a percentage of the single-party cost of the plan you are in, based on your spouse/domestic partner’s years of service. For 10-14 years of service, 75%; for 15-19 years of service, 90%; and for 20 and over years of service, 100% of the single-party cost of the plan you are in. However, the subsidy cannot be more than the current single-party civilian Medicare premium of $406.44.

8. Do I have to do anything when I reach age 65?

   In order to continue receiving your subsidy, you are required to enroll in Medicare to the full extent you are entitled. Three months before you reach age 65, we will send you information on signing up for Medicare. You may also receive information from your plan administrator, health plan and/or the Department of Health and Human Services/Social Security.

   If you are entitled to sign up for Parts A & B of Medicare, then you are required to do that. If you are only entitled to sign up for Part B, then you must sign up for that to receive a health subsidy. If you do not sign up for Medicare to the extent of your eligibility by your 65th birthday, you will not receive a City health subsidy. If you become eligible for Medicare before turning age 65, you must notify this Department at (800) 787-2489 ext.84560.

   Note that if you are late signing up for Medicare Part B there are significant and long-lasting penalties. For additional information on Medicare, go to their Web site at www.medicare.gov or contact Social Security at (800) 772-1213.

9. Is the Medicare Part B reimbursement available as well?

   If you qualify for the health subsidy and are in a Medicare A & B plan, you will also receive a reimbursement for the Part B premium. This reimbursement will be included in your pension payment.

10. Am I required to enroll in Medicare Part D?

    Please contact your health plan sponsor to find out if you are required to enroll in Medicare Part D:

    • Fire & Police Pensions, Medical and Dental Section: (800) 787-2489 ext.84560, or pen.pensions@lacity.org
    • Los Angeles Firemen’s Relief Association (LAFRA): (800) 244-3439 (toll-free)
    • Los Angeles Police Relief Association (LAPRA): (888) 252-7721 (toll-free)
    • United Firefighters of Los Angeles City (UFLAC): (800) 252-8352 (toll-free)
    
    
11. What happens if I am not in a City-approved plan?

    To receive the health subsidy, you must be in a City-approved plan. If you are not, you will not receive a subsidy. However, you may qualify to participate in the Health Insurance Premium Reimbursement Program if you are unable to enroll in a City-approved HMO.

12. Will the subsidy cover my dental plan?

    The subsidy cannot be used to cover your dental plan.It can only be used to cover the single-party cost of the surviving spouse/domestic partner’s medical plan premium.

13. Are my dependents entitled to a subsidy?

    The dependents of a surviving spouse/domestic partner are not entitled to a health subsidy. The health subsidy for a surviving spouse/domestic partner may only be used to pay for the single-party health premium cost of the surviving spouse/domestic partner.

14. Whom should I contact if I have other questions about my survivor’s health subsidy?

    If you have more questions, please contact the Medical and Dental Section at (800) 787-2489 ext.84560 or pen.pensions@lacity.org.

    
    

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Social Security and Your LAFPP Pension

1. As a City employee do I contribute to Social Security
   
   No.  You do not contribute to Social Security and therefore you do not receive credit towards Social Security for your City employment.
   
   
   
2. I worked in outside employment where I paid Social Security taxes.  How do I find out how many credits I have?
   
   The Social Security Administration (SSA) is required by law to send a Statement (about 3 months before your birthday) if you are a worker or former worker, age 25 or older and not currently receiving benefits.  Your Statement is a record of earnings on which you paid Social Security taxes and the estimated benefits that can be paid to you and your family in the event of retirement, disability or death.  You should check the information carefully and report any incorrect information as soon as possible.  You can contact SSA at (800) 772-1213 or visit www.socialsecurity.gov.
   
   Note: If you will get a pension based on non-covered employment, you may receive an overstated benefit estimate from Social Security because the pension is not considered for the estimate.
   
   
   
3. I have worked in jobs where I paid into Social Security. How many credits do I need to qualify for Social Security?
   
   People born after January 1, 1929, need 40 credits or about ten years of work.
   
   
   
4. I have a deduction on my paycheck for FICA (Federal Insurance Contribution Act) tax; does this qualify me for a Social Security pension?
   
   City employees hired after March 1986 pay the Medicare portion of the FICA tax, or 1.45% which applies to all wages.  This does not qualify you for a Social Security Pension but it may qualify you for Medicare.
   
   
   
5. Will my City pension impact my Social Security retirement benefit?
   
   Yes.  If you receive a pension from employment in which you did not pay Social Security taxes and you also qualify for your own Social Security retirement or disability benefit, your Social Security benefit may be reduced, but not eliminated, by the Windfall Elimination Provision.  The amount of the reduction, if any, depends on your earnings and number of years in jobs in which you paid Social Security taxes, and the year you are age 62 or become disabled.
   
   
   
6. I understand there may be different rules if I was eligible to receive a City pension before 1986.  Are there any exceptions to the Windfall Elimination Provision (WEP)?
   
   Yes.  Exceptions to the WEP apply to:
   • People age 62 before 1986.
   • People eligible for a City pension before 1986.
   • Disabled-worker beneficiaries disabled before 1986.
   • People with at least 30 years of “substantial” Social Security coverage.
   • Federal employees who were mandatorily covered by Social Security on January 1, 1984.
   • People employed on December 31, 1983, by nonprofit organizations that were not covered by Social Security at any time before 1984.
   • Ministerial pensions under denominational plans for services not covered by Social Security.
   • Military reservist pensions.
     
     
     
7. Why am I subject to the WEP?
   
   Before 1983, people who worked mainly in a job not covered by Social Security had their Social Security benefits calculated as if they were long-term, low-wage workers.  The way Social Security benefit amounts are figured, lower-paid workers get a higher return than highly paid workers.  This created the advantage of receiving a higher Social Security benefit, plus a pension from a job where they did not pay Social Security taxes.  Congress passed the WEP to remove that advantage.
   
   
   
8. What is the Government Pension Offset (GPO)?
   
   If you receive a pension based on federal, state or local government work in which you did not pay Social Security taxes and you qualify, now or in the future, for Social Security benefits as a current or former spouse, widow or widower, you are likely to be affected by GPO.  If GPO applies, your Social Security benefit will be reduced by an amount equal to two-thirds of your government pension, and could be reduced to zero.  Even if your benefit is reduced to zero, you will be eligible for Medicare at age 65 on your spouse’s record.
   
   Example:  If you are eligible to receive a pension through the City of Los Angeles in the amount of $4,500.  As a spouse, you are eligible for a Social Security benefit in the amount of $900 a month.  Two-thirds of $4,500 is $3,000. The $3,000 is more than the $900 survivor benefit; therefore, the Social Security benefit is reduced to $0.
   
   
   
9. Are there any exceptions to the Government Pension Offset (GPO)?
   
   Yes.  GPO does not apply to people who:
   • Are receiving a government pension that is not based on your earnings;
   • Are a state or local employee whose government pension is based on a job where you are paying Social Security taxes
   • on the last day of employment and your last day was before  July 1, 2004;
   • during the last five years of employment and your last day of employment was July 1, 2004, or later.  (Under certain conditions, fewer than five years may be required for people whose last day of employment falls between July 1, 2004, and March 2, 2009.)
   • Are a federal employee, including Civil Service Offset employee, who pays Social Security taxes on your earnings. (A Civil Service Offset employee is a federal employee who was rehired after December 31, 1983, following a break in service of more than 365 days and had five years of prior civil service retirement system coverage.);
   • Are a federal employee who elected to switch from the Civil Service Retirement System to the Federal Employees’ Retirement System (FERS) on or before June 30, 1988.  If you switched after that date, including during the open season from July 1, 1998, through December 31, 1998, you need five years under FERS to be exempt from the Government Pension Offset;
   • Received or were eligible to receive a government pension before December 1982 and meet all the requirements for Social Security spouse’s benefits in effect in January 1977; or
   • Received or were eligible to receive a federal, state or local government pension before July 1, 1983, and were receiving one-half support from your spouse.
     
     
     
10. Why am I subject to the GPO?
    
    If a government employee’s work had been subject to Social Security taxes, any Social Security benefit payable as a spouse, widow or widower would have been reduced by the person’s own Social Security retirement benefit.   Therefore, the GPO was enacted to treat retired government employees similarly to other retirees who worked in Social Security covered employment. 
    
    
    
11. How do I contact Social Security?
    
    You can call, visit your local Social Security office or check their Web site.
    
    Call (800)772-1213 – Representatives are available from 7:00 a.m. to 7:00 p.m. on business days.  If you have a touch-tone phone, recorded information and services are available 24 hours a day, including weekends and holidays.
    Check the Web site at www.socialsecurity.gov.
    Visit your local office – you can find your local office at www.socialsecurity.gov/locator or in the front pages of your local telephone book.
    
    
    
    

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