Retired Members FAQs

General Information

1. 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 to submit their applications at least four to six weeks in  advance. Your pension will be payable approximately one to two months after your employment termination date.

2. Can you give me tax advice?

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

   If you wish to calculate an estimate of your Federal and State taxes based on various tax withholding scenarios, you may do so utilizing Paycheck City Calculator.

3. 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 Qualified Domestic Relations Order (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 7-10 business days.

4. Do you deduct non-California state taxes?

   No. If you complete an Income Tax Withholding Form, you will only be able to withhold for the federal government and the State of California.  Effective January 1, 2018, for members who reside outside of California, their State tax withholding will be changed automatically to “Do Not Withhold.”

   Income Tax Withholding Form

5. How do I change my address?

   Members are advised to submit a signed written notification of the address change (fax, email or U.S. Mail). You can update your address using MyLAFPP or download and submit a Change of Address Form. You can also write a letter stating the current address, the new address, phone number, email address, member’s signature and the last four digits of the Social Security number.

   Change of Address Form

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

   Our Medical and Dental Benefits Section can assist you at (213) 279-3115 or (844) 88-LAFPP.

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

   In the event of a member’s death, payment of your community property portion will terminate if there is no qualified survivor. If the member has a qualified survivor, you may be entitled to the community property portion of the survivor benefit. Please refer to your marriage dissolution documents.

8. 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).

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;
   • an affidavit, mailed to the survivor, is completed in the presence of a notary and returned to the Department; and
   • the direct deposit reversal is completed and funds are received from the bank, if applicable.

   If the death is reported in a timely manner, the final check can still take up to 30 to 90 days to complete due to circumstances where death and marriage certificates are not readily available; established payment transaction cut off dates; and the benefit payment cycle on a monthly basis.

10. 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 also encourage you to submit copies of any documentation you may have in person or by mail to: Los Angeles Fire and Police Pensions Disability Pension Section 701 East Third Street, Suite 200 Los Angeles, CA 90013. The information you collect to document the disabling condition may include medical records, school records, social security benefits, assisted living or institutionalization records, etc. 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. A letter confirming our receipt of your documentation is usually mailed within 10 business days.

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

    It is directly deposited on the last working day of the month. Availability of funds may vary according to your financial institution.

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

    You can make these changes online using MyLAFPP or you may download and complete a Direct Deposit Form or Income Tax Withholding Form and email it to rs@lafpp.com or mail it to us at: Los Angeles Fire and Police Pensions, Retirements Services Section, 701 E. Third Street, Suite 200, Los Angeles, CA 90013. In addition, forms can be mailed to you by calling the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP.

    Direct Deposit Form

    Income Tax Withholding Form

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

    The members must 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 three business days. For questions, please contact pensions@lafpp.com. 
    
    Pension Verification Letter

14. How do I cancel/change/or add a voluntary payroll deduction?

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

15. What will be my survivor’s pension if I die?

    The benefit paid to a qualified surviving spouse/domestic partner varies according to the member’s tier and his/her status at the time of death – active or retired. More information is available in the Survivor Benefits Handbook. You can also contact the Retirement Services Section by email at rs@lafpp.com or by phone at (213) 279-3125 or (844) 88-LAFPP for more information.

16. How do I update my address?

    You can update your address online using MyLAFPP or you may email (rs@lafpp.com), mail or fax a Change of Address Form to our Retirement Services Section at: Los Angeles Fire and Police Pensions, Retirements Services Section701 E. Third St., Suite 200, Los Angeles, CA 90013 or you may fax it to (213) 628-7716. 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. For questions, please contact rs@lafpp.com.

    Change of Address Form

17. 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 Retirement Services Section by email at rs@lafpp.com or by phone at (213) 279-3125 or (844) 88-LAFPP and a staff member can provide that information to you.

18. How do I get a pension verification letter?

    You can request a Pension Verification Letter online using MyLAFPP, or you may download and complete a Pension Verification Letter Form and email it to rs@lafpp.com or mail it to us at: Los Angeles Fire and Police Pensions, Retirements Services Section, 701 E. Third Street, Suite 200, Los Angeles, CA 90013. In addition, forms can be mailed to you by calling the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP, or by email at rs@lafpp.com.
    
    Pension Verification Letter

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

    Members with internet access are encouraged to utilize MyLAFPP. You will be able to run various estimates at your convenience. If you do not have internet access, 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 7-10 business days.

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

    You can download a copy of your direct deposit statement online using MyLAFPP, or a duplicate copy can be printed for you by calling or emailing (rs@lafpp.com) the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP.

Disability Pensions

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 issued 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. 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 attorney’s 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.

Health Subsidies and Medicare Requirements

1. Am I eligible for a LAFPP medical subsidy?

   You are eligible for the subsidy if you have:
   
       At least 10 complete years of service and are:       

   • At least age 55 with a retirement date after June 30, 1998; OR
   • At least age 60 with a retirement date before July 1, 1998.

       At least 20 years of service and are:

   • Between ages 55 and 60 AND
   • 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 three months before age 65).

2. Am I eligible for a LAFPP dental subsidy?

   You are eligible for the subsidy if you are:

   • Enrolled in a Board-approved dental plan (Los Angeles Police Relief Association (LAPRA), Los Angeles Police Protective League (LAPPL) for Police members, or United Firefighters of Los Angeles City (UFLAC) for Fire members)
   • At least 10 complete years of service; AND
   • At least 55 years of age
3. I 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?

   Eligible pensioners and qualified surviving spouses/domestic partners may access their subsidy benefit through the Health Insurance Premium Reimbursement (HIPR) Program. HIPR Participants can be reimbursed for health insurance premiums paid to a non-Board approved, state-regulated health plan. Dental plan premiums are not eligible for reimbursement. Learn more about the Health Insurance Premium Reimbursement Program here.

4. Do 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 to the fullest extent of their entitlement three months before turning 65. (Part B only, or Parts A and B, if eligible for both). Covered dependents (e.g. spouse/domestic partner, dependent child) must also enroll in Medicare to the full extent of their eligibility at age 65.

   To remain eligible for a health insurance subsidy or Health Insurance Premium Reimbursement, you must:

   • Provide LAFPP with a copy of your Medicare card or Medicare enrollment confirmation.
   • Enroll in a Board-approved health plan or participate in the Health Insurance Premium Reimbursement Program.
   • Enroll in Medicare Part A if eligible at no cost (if you have 40 credits or will be receiving a Social Security benefit).
   • Must enroll in Medicare Part B and maintain your Part B coverage by paying the required monthly premiums directly to Medicare or Social Security.

   Members or Qualified Surviving Spouses/Domestic Partners who are enrolled in both a Board-approved health plan and Medicare Parts A and B may receive a reimbursement of their monthly Medicare Part B premium at the standard amount.  Those who qualify for only Part B of Medicare do not receive Medicare Part B premium reimbursement.

   If early Medicare coverage is granted due to disability before the age of 65, LAFPP and your Board-approved health plan administrator should be notified.

5. Do my covered dependents need to enroll in Medicare?

   Covered dependents (e.g. Qualified Surviving Spouse/Domestic Partner, Dependent child) must also enroll in Medicare to the full extent of their eligibility three months before turning 65. Also, since qualified survivors must meet the same eligibility requirements as you, LAFPP highly recommends that covered dependents enroll in Medicare when first eligible in order to receive a health subsidy as part of their survivor benefits. Additionally, the following may impact your health insurance premium if your covered dependent(s):

   • Fails to enroll in Medicare Part B at age 65.
   • Enrolls in Medicare Part D (prescription drug coverage) outside of your health plan.
   • Enrolls in Medicare, but does not include his/her Part A, B and/or D benefit in your health plan.
   • Does not disclose his/her Medicare status to your health plan and is age 65 or older.

   If any of the above applies, your out-of-pocket premium costs could increase without additional subsidy provided by LAFPP. For example, if your dependent qualified for Medicare Part B, but chose not to enroll, you may experience a higher premium and the subsidy applied to your premium may be less because they did not meet LAFPP’s Medicare enrollment requirements.

6. What is the Pension Protection Act (PPA)?

   Under the Pension Protection Act of 2006, Section 845, retired public safety officers with a taxable pension who meet eligibility requirements may have a tax exclusion from gross income for up to $3,000 per year for health and dental insurance premiums deducted directly from their pension checks and paid directly to their health and/or dental plans by LAFPP.  This exclusion from gross income will have a positive tax advantage.  Members can locate the end-of-year deduction totals for their medical and/or dental premium payments on their December 31 payroll stub. 

Social Security and Your LAFPP Pension

1. 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.

2. 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.

3. 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.

4. 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.

5. 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; or 

   • 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.

6. 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. Visit here to learn more about GPO.

7. How do I contact Social Security?

   You can visit your local Social Security office, call (800)772-1213, or visit their Web site at www.ssa.gov.

 

2023 Medicare Part B Premium Reimbursement

1. How do I know if I am eligible for Part B reimbursement?​

   You must be a retired member or qualified survivor who is receiving a pension and is eligible for a health subsidy, and enrolled in both Medicare Parts A and B.

2. What document do I need to submit to receive my correct Part B reimbursement amount?​

   You must submit a copy of your Social Security benefits verification statement (your “New Benefit Amount”) or a copy of a 2023 Centers for Medicare and Medicaid Services (CMS) billing statement.     

3. My spouse (non-LAFPP member) is currently enrolled in Medicare Parts A and B. Does he/she need to submit Medicare Part B premium documentation?​

   No. Only the retired member or Qualified Survivor enrolled in Parts A and B is eligible for Medicare Part B premium reimbursement.

4. I received a letter stating that I pay a higher Part B premium based on my income level (Income-Related Monthly Adjustment Amount – “IRMAA”). May I submit this letter as proof of my Part B premium?​

   Yes. You may submit a copy of the first page of your IRMAA letter if it contains your name, address and 2023 monthly Medicare Part B premium deduction. LAFPP does not reimburse IRMAA fees, so your Part B reimbursement will not exceed the 2023 standard monthly premium of $164.90.

5. I receive a monthly Social Security payment, but I did not receive / cannot locate my “New Benefit Amount” Statement from Social Security. What should I do?

   You may call or visit your local Social Security Administration (SSA) office. You may also access proof of your 2023 Medicare Part B basic premium online at the SSA website: www.ssa.gov/myaccount. You may be required to create or register your SSA account. Please note that once you have an online account, your future SSA notifications will be emailed to you.

6. When do I need to provide LAFPP documentation of my Part B Premium?​

   You may submit your documentation as soon as it is available and receive a retroactive reimbursement for up to twelve (12) pension roll months from the date your submission is received. 

7. How can I provide LAFPP documentation of my Part B Premium for reimbursement?

   Please submit your documentation via the following options:

   1. Email to: mdb@lafpp.com

   2. Fax to: 213-628-7782

   3. Regular mail to:
      Los Angeles Fire and Police Pensions
      Attn: Medical and Dental Benefits
      701 E Third St. Ste. 200
      Los Angeles CA 90013

If you have additional questions about your Medicare Part B reimbursement, please contact the Medical and Dental Benefits Section at (213) 279-3115 or toll free at (844) 88-LAFPP.

 

Tax Form 1099-R

1. Why did I receive more than one 1099 Form?

   Some members may receive more than one 1099-R tax form in a year. Here are some of the possible reasons:

   • You exited DROP and received the proceeds of your DROP account via a rollover, a lump-sum cash distribution, and received at least one monthly pension check in the same year. In this case you would receive a total of three 1099-Rs. One 1099-R for the DROP rollover (Distribution Code G), one 1099-R for the DROP lump-sum (Distribution Code 2), and one 1099-R for monthly pension payments (also Distribution Code 2).
   • You have a non-tax dependent covered on your LAFPP-subsidized health insurance plan (e.g., domestic partner or child of a domestic partner). This 1099-R would have a Distribution Code 9.
   • Your IRS tax distribution code changed during the year (i.e., when member attains age 59 ½ by June of the same year). You would receive two 1099-Rs, one for when you were under 59.5 years old (Distribution Code 2) and another for when you were over 59.5 years old (Distribution Code 7).
   • You received pension payments based on your City service and from a qualified domestic relations order (QDRO) (Distribution Code 2) or as a beneficiary (Distribution Code 4).
2. What does each box represent in the 1099-R?

   

3. Why does my 1099-R Taxable Amount (Box 2a) not equal the total amount on my pension statement?

   You should be comparing the total in your pension statement to box 1 of your 1099-R. Box 1 reflects the income received in tax year 2022. Box 2a is the taxable portion of your income received. Some or all of your income may not have been taxable, which is why box 1 and box 2a may be different.

   Box 2a may not be equal to the total amount in your pension statement, because you may have:

   • Received more than one 1099-R form (to cover various benefits)
   • Made post-tax contributions as an Active employee and therefore a portion of your pension is non-taxable (“basis recovery”)
   • Had a Workers’ Compensation deduction (which reduces your taxable amount)
   • A non-taxable pension
4. What if I did not receive my 1099-R or would like a copy?

   Your form was mailed to the address on file with LAFPP. Please allow time for mailing before requesting a duplicate. Requests for duplicate forms will be processed and mailed after February 15.
   
   If you would like a replacement copy, please call the Accounting Section at (213) 279-3040 or (844) 88-LAFPP ext. 3040.

   To update your mailing address on file with LAFPP you must change in two places:

   1. Access MyLAFPP
   2. Click Personal Information
   3. Click Address & Contact Information (to confirm information)
   4. Click Update Address (to change mailing address)
   5. Click Submit
   6. Return to MyLAFPP homepage (by clicking on LAFPP logo) and click Retiree Benefits
   7. Click Pension Payment
   8. Click Pension Payment Information (to confirm payment confirmation address is your updated mailing address).
   9. If necessary, click Update Pension Payment (to change payment confirmation address) and
   10. Click Submit

   For those who would prefer not to make changes online, please complete a Change of Address Form and fax or email, as instructed. This form can also be mailed to you upon request.

5. How do I make changes to my tax withholding elections?

   You may complete an Income Tax Withholding Form and fax or email as instructed on the form.

   You may make your changes using MyLAFPP in 6 easy steps:

   1. Access MyLAFPP
   2. Click Retiree Benefits
   3. Click Tax Withholding
   4. Click Update Pension Tax Withholding Instructions
   5. Fill in all the information. Please fill in all the information even if you are only changing either federal or State of California withholdings
   6. Click Submit
     IMPORTANT NOTE: In addition to Federal taxes, LAFPP is responsible for tax withholding only in the state of California. Since LAFPP does not have an operating business presence in other states, we do not offer tax withholding for states other than California.
    
6. I have more questions… who do I contact?

Please contact the Retirement Services Section at (213) 279-3125 or email rs@lafpp.com, if you have questions regarding:

• Taxability of your LAFPP pension
• State and Federal Withholding Elections and Changes
• Address Changes
• 1099-R – General Information

Please contact the Communications & Education Section at (213) 279-3155 or email cspsection@lafpp.com, if you have questions regarding:

• MyLAFPP

Please contact the Accounting Section at (213) 279-3040 or email accounting@lafpp.com, if you have questions regarding:

• Request for Duplicate Copies (After February 15)

Please contact the Medical & Dental Benefits Section at (213) 279-3115 or email mdb@lafpp.com, if you have questions regarding:

• Taxable Health Subsidy

 

Form W-4P for Federal Tax Withholding

GENERAL

1. Why did the IRS change the Form W-4P?

   Prior to the updates, the old Form W-4P was used to withhold federal tax from both periodic payments (e.g., monthly pension payments) and nonperiodic payments (e.g., DROP lump sum payments). The IRS redesigned the Form W-4P and created a new Form W-4R to simplify withholding, make tax withholding more accurate, and to be consistent with the recent federal tax law changes.

2. ​Why can’t I enter the number of allowances on the Form W-4P?

   The IRS removed the option to enter allowances to be consistent with current tax law.  Instead, Form W-4P considers information that affects your taxable income.  Note however that the form to elect California state tax withholding has not changed and still allows you to enter a number of allowances.

3. ​I am satisfied with my current tax withholdings. Do I have to submit a new form?

   If you do not wish to change your federal and/or California state tax withholding, LAFPP will continue to withhold taxes according to the elections we have on file for you until you submit new elections.

4. ​What happens if I do not submit my tax withholding elections?

   Beginning January 1, 2023, if there are no tax withholding instructions on file for you, LAFPP is required to withhold federal tax from your taxable monthly pension payment based on a filing status of Single with no adjustments.

   In addition, if you are a resident of California, LAFPP is required to withhold California state tax from your taxable monthly pension payment based on a filing status of Married and three allowances.

5. ​What if I do not want taxes withheld from my pension payment?

   If you are receiving a taxable pension payment and do not want federal tax withheld, you can write “No Withholding” in the space below Step 4© and complete Steps 1(a), 1(b), and 5 only on the IRS Form W-4P.  For MyLAFPP submissions, you can check the “No Withholding” box below Step 4© and complete Step 5 only in the “Federal Tax Instructions” section.

   If you are a California resident receiving a taxable pension payment and do not want California state tax withheld, you can select Option 1 on the LAFPP California Income Tax Withholding Form. Be sure to complete the personal information section and sign and date the form. For MyLAFPP submissions, you can select the “No Withholding” option from the “Tax Calculation Method” drop down menu in the “State Tax Instructions” section.

6. ​How can I update my tax withholding elections?

   You may submit your tax withholding elections electronically by logging into MyLAFPP or you can submit the appropriate tax withholding paper form(s) to LAFPP:

   • Federal Tax Withholding: Please submit a completed and signed Form W-4P. The form is available for download from the IRS website at www.irs.gov/pub/irs-pdf/fw4p.pdf.

   • California State Tax Withholding: Please submit a completed and signed LAFPP California State Income Tax Withholding Form.  The form is available for download from the LAFPP website at www.lafpp.com/sites/main/files/file-attachments/income-tax-withholding-form_0.pdf.

   Submissions received after the 15th of the month will become effective the following month.

7. ​How do I complete the new Form W-4P?

   Please see the “General Instructions” section of Form W-4P for information on how to complete the form.

8. ​I’m not sure how much should be withheld for taxes each month. Can you assist me with filling out the Form W-4P?

   LAFPP cannot offer tax or legal advice. The Form W-4P contains a “General Instructions” section to assist you with completing the form. For further assistance, we encourage you to contact the taxing agency or your tax advisor.
    

MEMBERS RETIRING OR EXITING DROP

1. ​I am retiring on a Service Pension or exiting DROP on or before January 31, 2023.  What form should I complete to have federal taxes withheld from my monthly pension payment?

   Complete and submit the tax withholding forms provided to you by the DROP/Service Pensions Section. Please contact the DROP/Service Pensions Section for more details by email at dropsp@lafpp.com, or by phone at (213) 279-3100 or toll-free at (844) 88-LAFPP (52377).

2. ​If I do not submit a tax withholding form, how will my federal tax withholding be calculated for my monthly pension payment? How will my DROP payment be taxed?

   If you do not submit the required tax withholding form(s), LAFPP is required to withhold federal tax from your taxable monthly pension payment based on a filing status of Single with no adjustments.  Your entire DROP account balance will also be subject to a mandatory 20% federal tax withholding.

   In addition, if you are a resident of California, LAFPP is required to withhold California state tax from your monthly pension payment based on a filing status of Married with three allowances. There is no requirement to withhold California state tax from your DROP account balance.