June 7, 2019
Los Angeles Fire & Police Pensions Update
On May 2nd at the Los Angeles Fire and Police Pensions (LAFPP) meeting, the Pension Commission Board voted to increase the medical health subsidy for non-Medicare retirees by 5.5%. This vote will raise the retiree subsidy from the current maximum of $1,725.39 per month to a maximum of $1,820.29 per month. The increase will become effective on July 1, 2019.
Los Angeles Administrative Code (LAAC) Section 4.1154(e) states in part:
“The Board is authorized to make discretionary changes, on an annual basis beginning in 2006, to the maximum monthly subsidy, so long as no increase exceeds the lesser of a 7% increase or the actuarial assumed rate for medical inflation for pre-65 health benefits established by the Board for the applicable fiscal year.
Per the City Charter, retiree subsidy increases were previously tied to increases for active sworn employees or retired civilians. Because of delays in contract negotiations for active employees, the retiree subsidy increases were often years late, causing a hardship to many retirees. This Charter amendment (passed in March 2005) gave authority to the City Council and Mayor, via ordinance, to determine a more efficient way to provide timely retiree subsidies.”
United Firefighters of Los Angeles City, Local #112