AGENDA - LAFPP...Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee. G. CLOSED SESSION 1....

An opportunity for the public to address the Board or Committee about any item on today’s agenda for which there has been no previous opportunity for public comment will be provided before or during consideration of the item. Members of the public who wish to speak on any item on today’s agenda are requested to complete a speaker card for each item they wish to address, and present the completed card(s) to the commission executive assistant. Speaker cards are available at the commission executive assistant’s desk. In compliance with Government Code Section 54957.5, non-exempt writings that are distributed to a majority or all of the Board or applicable Committee of the Board in advance of their meetings may be viewed at the office of the Los Angeles Fire and Police Pension System (LAFPP), located at 701 East 3rd Street, 2nd Floor, Los Angeles, California 90013, or by clicking on LAFPP’s website at www.lafpp.com, or at the scheduled meeting. Non-exempt writings that are distributed to the Board or Committee at a scheduled meeting may be viewed at that meeting. In addition, if you would like a copy of any record related to an item on the agenda, please contact the commission executive assistant, at (213) 279-3038 or by e-mail at [email protected]. Sign language interpreters, communication access real-time transcription, assistive listening devices, or other auxiliary aids and/or services may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting you wish to attend. Due to difficulties in securing sign language interpreters, five or more business days notice is strongly recommended. For additional information, please contact the Department of Fire and Police Pensions, (213) 279-3000 voice or (213) 628-7713 TDD.

A. ITEMS FOR BOARD ACTION

1. DISCUSSION WITH TAX COUNSEL REGARDING THE BOARD'S AUTHORITY TO

MAKE ANNUAL DISCRETIONARY CHANGES TO THE MAXIMUM RETIRED

SWORN NON-MEDICARE HEALTH SUBSIDY AND POSSIBLE BOARD ACTION

2. APPROVAL OF THE LAPRA AND UFLAC HMO HEALTH PLANS ELIGIBLE FOR

SUBSIDY AND POSSIBLE BOARD ACTION

3. APPROVAL OF THE LAPRA AND LAFRA KAISER PERMANENTE HEALTH PLANS

ELIGIBLE FOR SUBSIDY AND POSSIBLE BOARD ACTION

AGENDA

BOARD OF FIRE AND POLICE PENSION COMMISSIONERS

May 16, 2019

8:30 a.m.

Sam Diannitto Boardroom Los Angeles Fire and Police Pensions Building

701 East 3rd Street, Suite 400 Los Angeles, CA 90013

http://www.lafpp.com/

mailto:[email protected]

May 16, 2019 2

4. APPROVAL OF LAPRA DENTAL PLANS AND POSSIBLE BOARD ACTION

5. APPROVAL OF THE LAPRA, LAFRA AND UFLAC PPO HEALTH PLANS ELIGIBLE

FOR SUBSIDY AND POSSIBLE BOARD ACTION

6. APPROVAL OF TRAVEL AUTHORITY (CIRANNA AND SALAZAR) – IFEBP,

65TH ANNUAL EMPLOYEE BENEFITS CONFERENCE AND POSSIBLE BOARD

ACTION

7. PRESENTATIONS BY FINALIST CANDIDATES FOR THE US SMALL CAP CORE

EQUITY SEARCH AND POSSIBLE BOARD ACTION

➢ Aristotle Capital Boston, LLC

➢ ClearBridge Investments, LLC

➢ J.P. Morgan Investment Management, Inc.

➢ Palisade Capital Management, LLC

➢ PanAgora Asset Management, Inc.

➢ Pacific Investment Management Company, LLC

8. HEALTH AND DENTAL PLAN ADMINISTRATOR CONTRACTUAL CLAIMS DATA

REQUIREMENTS AND POSSIBLE BOARD ACTION

B. REPORTS TO THE BOARD

1. Miscellaneous correspondence from money managers, consultants, etc. – Received

and Filed. 2. General Manager’s Report

a. Monthly Report b. Marketing Cessation Information c. Benefits Actions approved by General Manager on May 2, 2019 d. Other business relating to Department operations

C. CONSENT ITEMS

1. Finding of Fact – Brenda K. Wilson – Tier 5

D. CONSIDERATION OF FUTURE AGENDA ITEMS E. GENERAL PUBLIC COMMENT ON MATTERS WITHIN THE BOARD’S JURISDICTION

May 16, 2019 3

F. DISABILITY CASE Alternative 1

Retired Police Officer II +2 Hilton C. Henry. Mr. Henry will be represented by Thomas J.

Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee.

G. CLOSED SESSION

1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.81 TO

CONSIDER THE PURCHASE OF TWO (2) PARTICULAR, SPECIFIC INVESTMENTS AND POSSIBLE BOARD ACTION

2. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(A) TO

CONSULT WITH INTERNAL AUDITOR AND LEGAL COUNSEL REGARDING THREAT TO PUBLIC SERVICES OR FACILITIES AND POSSIBLE BOARD ACTION

3. CLOSED SESSION PURSUANT TO SUBDIVISIONS (a) AND (d)(1) OF

GOVERNMENT CODE SECTION 54956.9 TO CONFER WITH LEGAL COUNSEL

REGARDING PENDING LITIGATION, IN THE FOLLOWING CASES:

(a) Paul Mercado v. Board of Fire and Police Pension Commissioners, California

Superior Court, County of Los Angeles (Case No. BS174178)

(b) Sam et al. v. Kwan et al., California Superior Court, County of Los Angeles (Case

No. BS721121)

(c) The following related cases, which are consolidated in United States District Court

for the Southern District of New York:

(i) Deutsche Bank Trust Company Americas et al. v. First Republic Bank et al.

(Case No. 1:11:cv-09572-WHP)

(ii) William A. Niese, et al. v. Chandler Trust No. 1, et al. (Case No. 1:12- cv00554-

WHP)

(iii) The Official Committee of Unsecured Creditors v. Fitzsimmons, et al. (Case

No. 1:12:cv-02652-WHP)

(d) In Re PG&E Securities Litigation, United States District Court for the Northern

District of California (Case No. 3:18-cv-03509-RS)

(e) Official Committee of Unsecured Creditors of Motors Liquidation Company fka

General Motors Corporation v. JPMorgan Chase NA, Individually and as

Administrative Agent, et al., United States Bankruptcy Court, Southern District of

New York (Chapter 11 Case No. 09-50025 (reg), Adversary Case No. 09-00504

(Reg)

DEPARTMENT OF FIRE AND POLICE PENSIONS 701 E. 3rd Street, Suite 200

Los Angeles, CA 90013

(213) 279-3000

REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS

DATE: MAY 16, 2019 ITEM: A.2 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APPROVAL OF THE LAPRA AND UFLAC HMO HEALTH PLANS ELIGIBLE FOR

SUBSIDY AND POSSIBLE BOARD ACTION

RECOMMENDATION That the Board: 1) Adopt the attached resolution approving the Anthem Blue Cross CaliforniaCare Plus HMO health plan administered by Los Angeles Police Relief Association (LAPRA) as a suitable plan eligible for the subsidy program from July 1, 2019 through June 30, 2020; and, 2) Adopt the attached resolutions approving the Anthem Blue Cross Select HMO, Anthem Blue Cross VIVITY HMO, and Anthem Medicare Advantage HMO health plans administered by United Firefighters of Los Angeles City (UFLAC) as suitable plans eligible for the subsidy program from January 1, 2019 through December 31, 2019. BACKGROUND LAPRA and UFLAC have worked with LAFPP for many years to provide outstanding service and health benefits to retired firefighters, police officers and their families. On October 18 and November 1, 2018, the Board approved LAFPP contracts with UFLAC and LAPRA, respectively, to continue administering retiree health and dental plans on behalf of LAFPP pensioners. Under the terms of the contracts, per Article 3.2, LAPRA and UFLAC agreed to present annually to the Board at least sixty (60) days prior to the start of the Plan year the following:

i. An annual report to LAFPP regarding health plan provisions, member demographic data, cost trend information, and cost reimbursement.

ii. Plan design, premium and administrative fee changes regarding their plans. iii. Open enrollment materials for the upcoming plan year.

On April 18, 2019, LAPRA and UFLAC representatives provided an annual report to the Board which outlined their respective health and dental plans and highlighted changes for the coming plan year. Since a presentation by UFLAC was not feasible prior to their calendar year renewal in January, their presentation was included with the April 18th reports.

Board Report Page 2 May 16, 2019

DISCUSSION LAPRA LAPRA administers one Anthem Blue Cross HMO health plan, which utilizes the CaliforniaCare Plus network. This plan is available to all Active and Retired Los Angeles City police officers and is also available to retired sworn Airport and Port police officers. Notable changes for the HMO plan were made between 2016-2018 including increased out-of-pocket maximums and copays, as well as the implementation of the mandatory generic provision for pharmaceuticals where the member pays the cost difference between the brand and generic drug, if a generic equivalent is available. There were no changes to the HMO plan benefits for the 2019-2020 plan year. The premiums for this plan will decrease across all levels by an average of 10%, effective July 1, 2019. The chart below includes the five plan codes with the highest rates of enrollment. There are currently 714 members enrolled in LAPRA’s Anthem Blue Cross HMO health plan. The administrative fee is $7.00 per month, per member.

Anthem Blue Cross CaliforniaCare Plus HMO

7/1/18 Monthly Premium


Single (Non-Medicare) $949.89 $861.08

2-Party (Non-Medicare) $1,844.61 $1,667.07

Family (Non-Medicare) $2,160.59 $1,952.66

Member ABD, Spouse None (Medicare) $1,607.61 $1,453.57

Member & Spouse ABD (Medicare) $1,370.61 $1,240.07

UFLAC UFLAC offers three HMO plans through Anthem: Anthem Blue Cross Select HMO, Anthem Blue Cross VIVITY HMO, and Anthem Medicare Advantage HMO. Active and Retired Los Angeles City firefighters, as well as LAFPP members who have retired from the Harbor and Airport Departments have access to UFLAC health plans. UFLAC’s new Medicare Advantage HMO was approved by the Board as a suitable plan on October 18, 2018. UFLAC’s most notable changes for the 2019 plan year are the closing of the VIVITY HMO plan to new enrollees and the offering of the new Medicare Advantage HMO plan. The Medicare Advantage HMO plan offers Medicare-eligible members and their dependents a health plan option through UFLAC that is much less expensive than their other options. Although the VIVITY HMO plan is no longer available through open enrollment, LAFPP will work with UFLAC to migrate current enrollees (total of 3) to one of the other available plans. Overall, premiums for UFLAC’s Select HMO and VIVITY HMO plans have increased by approximately 6%, effective January 1, 2019. The charts below provide the 2018 and 2019 premiums for the most enrolled UFLAC HMO plans. The 2019 plan year is the first year UFLAC is offering the Medicare Advantage HMO, therefore, premium changes are not applicable. UFLAC currently has 53 members enrolled in its Blue Cross HMO, 3 members enrolled in the VIVITY HMO (which is now closed to new enrollees), and no members yet enrolled in the Medicare Advantage HMO. Administrative fees for UFLAC’s health plans are $22.00 per month, per member.


Anthem Blue Cross Select HMO 1/1/18

Monthly Premium


Single (Non-Medicare) $1,610.22 $1,707.88





Anthem Blue Cross VIVITY HMO 1/1/18

Monthly Premium







Anthem Medicare Advantage HMO 1/1/19

Monthly Premium

Member ABD (Medicare) $369.99

Member & Spouse ABD (Medicare) $715.29

Benefit Levels LAPRA’s HMO plan is structured with generally lower premiums, especially for the single-party Medicare population. This plan includes $20 copays for office visits and urgent care but covers several services at 100%, such as inpatient hospital stays, outpatient surgeries, and labs and x-rays. UFLAC’s HMO plans generally have higher premiums but have set copays for most services. Additionally, UFLAC’s Select HMO has lower copays of $10 for office visits and urgent care. Both LAPRA and UFLAC’s Anthem HMO plans include access to wellness programs that provide gym memberships and health reminders. The benefits provided by LAPRA and UFLAC are comparable and both provide members access to Anthem’s vast network of providers. A detailed benefits chart has been included for comparison. (Attachment 1) Plan Approval As Board-approved health plan administrators, both LAPRA and UFLAC provided the required plan information to LAFPP’s health consultant. Due to the size of UFLAC’s medical plan enrollment, no claims data was available for USI to review. Although complete claims information can provide for a more accurate analysis, USI was able to validate each Administrator’s premium rate renewal based on the information provided. On May 2, 2019, USI presented its rate renewal validation of LAPRA and UFLAC health plans to the Board. USI found that although UFLAC’s HMO plan premiums increased, the plan renewal at approximately 5% was still lower than USI’s HMO trend rate of 7.4%. LAPRA was also under USI’s projected decrease of -9% and implemented an overall average -9.95% decrease in their rates. Attachment 2 provides a comparison of LAFPP’s premium


cost share among the most common Board-approved HMO plans. LAPRA and UFLAC’s single- and two-party non-Medicare plans will be fully subsidized for the 2019-2020 plan year, as well as the UFLAC Select and VIVITY HMO non-Medicare family plans. Attachment 3 outlines the premium cost for each plan combination within the HMO health plans. It is noted that in response to the Board’s prior request, both UFLAC and LAPRA have offered new Medicare Advantage HMO plans as a less expensive option for members (LAPRA's new Medicare Advantage HMO plan was approved by the Board on April 4, 2019.). As such, staff recommends the following HMO health plans to be suitable and should be approved as indicated in the attached resolutions:

• LAPRA Anthem Blue Cross CaliforniaCare Plus HMO

• UFLAC Anthem Blue Cross Select HMO

• UFLAC Anthem Blue Cross VIVITY HMO

• UFLAC Anthem Medicare Advantage HMO

BUDGET No budget impact as written. POLICY No policy changes as recommended. CONTRACTOR DISCLOSURE INFORMATION There is no contractor disclosure information required with this report. This report was prepared by: Eunice Zordilla, Manager Medical and Dental Benefits Section RPC:JS:GM:EZ:DZ Attachments (7) Attachments:

1. Benefit comparison of HMO health plans 2. Cost-Share Analysis by Plan Type 3. HMO Premium Comparison with Single-Party Ratio 4. Resolution approving the LAPRA Anthem Blue Cross CaliforniaCare Plus

HMO health plan 5. Resolution approving the UFLAC Anthem Blue Cross Select HMO health plan 6. Resolution approving the UFLAC Anthem Blue Cross VIVITY HMO health

plan 7. Resolution approving the UFLAC Anthem Medicare Advantage HMO health

plan

HMO HEALTH PLANS Attachment 1

PLAN ANTHEM BLUE CROSS HMO

UNITEDHEALTHCARE

MEDICARE ADVANTAGE

HMO

ANTHEM BLUE CROSS

CALIFORNIACARE PLUS

HMO

ANTHEM BLUE CROSS HMO

MEDICARE ADVANTAGE

ANTHEM BLUE CROSS

SELECT HMO ANTHEM VIVITY HMO

ANTHEM MEDICARE

ADVANTAGE HMO

Member Only $952.46 N/A $861.08 N/A $1,707.88 $1,765.39 N/A

Two-Party $1,900.32 N/A $1,667.07 N/A $1,730.21 $1,769.40 N/A

Family $2,476.33 N/A $1,952.66 N/A $1,742.67 $1,777.79 N/A

Member w/AB&D N/A - $258.94 $647.58 $518.18 $649.56 $663.52 $369.99

Member + 1 both AB&DRetirees w/ Medicare Parts

A&B $513.28 $1,240.07 $1,005.07 $1,693.30 $1,778.29 $715.29

Family: Member + 1, both AB&D;

Dependent none

must enroll in a Supplemental

Plan N/A $1,525.66 N/A $1,855.48 $1,883.08 N/A

Deductible None None None Plan pays 100% None None None

Out-of-Pocket Maximum$500 Individual

$1,500 Family$6,700 Individual

$1,000 Individual

$3,000 FamilyPlan pays 100%

$500 Individual

$1,500 Family

$2,500 Individual $5,000

Family$3,400*

Physician Office Visits $20 copay $15 copay $20 copay Plan pays 100% $10 copay $20 copay$5 copay; ($25 copay,

specialist)

Urgent Care Centers $20 copay $15 copay $20 copay Plan pays 100% $10 copay $20 copay $25 copay

Emergency Care

(copay waived if admitted)

$100 copay (waived if

admitted)


admitted)$150 copay Plan pays 100%


admitted)


admitted)

$75 copay/visit (waived if

admitted)

Inpatient Hospital

Room and Board No charge No Charge Plan pays 100% Plan pays 100% $500 per admission

$250 copay per day (3-day

copay max)

$150 copay per admission

($450 annual hospital out-of-

pocket max combined

w/inpatient mental health)

Outpatient Surgery Center -

Facility No charge No Charge Plan pays 100% Plan pays 100% $200 per admission $125 copay per admission $100 copay

Lab/X-Ray No charge No Charge Plan pays 100% Plan pays 100% $10 copay No charge $25 copay

Physical and Occupational

Therapy$20 copay

No charge after $15 office

visit copay*

$20 copay

(limited to a 60-day period

of care after illness or injury)

Plan pays 100% (for Chiro,

only manipulation of the

spine is covered)

$10 copay$20-$40 copay (cost varies

by site)$25 copay

Mental Health / Substance

Abuse - I/PNo charge No Charge; unlimited Plan pays 100% Plan pays 100% $500 per admission

$250 copay per day (3-day

copay max)

$150 copay per admission

($450 annual hospital out-of-

pocket max combined

w/inpatient mental health)

Mental Health / Substance

Abuse - O/P $20 copay $15 copay, unlimited visits $20 copay Plan pays 100% $10 copay $20 copay $25 copay

Prescription DrugsFormulary Yes Yes Yes Yes Yes Yes Yes**

Generic Copay$10 copay Retail;

$20 copay Mail Order

Retail: Tier I generic

$10/unit** Mail Order: $15

Retail: $5 copay

Mail Order: $10 copay

$10 copay (both retail and

mail order)

$15 copay retail; $37.50 mail

order

$10 copay; ($0 copay,

Select Generics), Retail / $20

Brand Copay$30 copay Retail;

$60 copay Retail

Retail: Tier II brand

$20/unit** Mail Order: *$25

Retail: $20 copay


$30 copay retail; $60 copay

mail order

$30 copay retail; $90 mail-

order

$20 copay, Retail/ $40

copay, Mail

Non-Formulary$50 copay Retail;

$100 copay Mail Order

Retail: Tier III & IV $50/unit**

Mail Order: $100/unit$40

Retail: $40 copay


$45 copay retail; $90 copay

mail order

$50 copay retail; $150 mail-

order

Specialty20% coinsurance with

maximum copay of $100Contact Plan for details 20%, up to $150 max copay

20% copay;

Retail: max $150/rx

Mail Order: max $300/rx

20% coinsurance up to $150

for injectable (retail); up to

$300 copay for mail order

30% coinsurance up to $250

retail and mail order

Retail up to 30-day supply Up to 30-day supply30-day supply, 1 copay; 90-

day supply, 2 copaysUp to 30-day supply 30-day 30-day supply 30-day supply

Mail Up to 90-day supply Up to 90-day supply 90-day supply for 2 copays Up to 90-day supply 90-day supply 90-day supply Up to 90-day supply

Notes *Chiro: limit of 30 visits/yr -Plan is closed to new

enrollment -

*Out-of-pocket maximum does

not apply to Rx

** Tier I - Primarily Generics; Tier

II - Preferred Brand & Higher

Costs Generics; Tier III - Non-

preferred; Tier IV - Speciality -

Contact your medical plan for

details.

**Premier Formulary is used

Un

de

r 6

56

5+

Me

dic

are

Vivity Value

In-Network Provider

Select HMO

In-Network Provider

NETWORK →

BENEFIT HMO Providers OnlyAnthem Blue Cross HMO

Medicare Advantage

HMO

Medicare Advantage

HMO

$40 copay, Retail/$80 copay

Mail

UFLAC

Anthem Network Senior

Secure In-Network

Providers

For certain injectable drugs

(except insulin) a different

copayment may be required;

All Mail order prescriptions must

be ordered through your

medical plan's mail order

vendor or participating

pharmacy directory; $0 copay

for select generics

*Mandatory generic provision -

(member pays the difference in

cost between Brand and

Generic if member chooses a

Brand when a generic-

equivalent is available)

LAPRA

To be eligible, enrolees must be

enrolled in Medicare Parts A &

B and live in the defined

service area.

LACERS

Non-Medicare HMO Attachment 2

PLAN

LAFPP

Subsidy

Member's

Deduction Premium FPP % Mem %

LAFPP

Subsidy

Member's


LAPRA 949.89 0.00 949.89 100.0 0.0 861.08 0.00 861.08 100.0 0.0

UFLAC 1,610.22 0.00 1,610.22 100.0 0.0 1,707.88 0.00 1,707.88 100.0 0.0

UFLAC Vivity 1,667.73 0.00 1,667.73 100.0 0.0 1,765.39 0.00 1,765.39 100.0 0.0

LAFPP 1,054.33 0.00 1,054.33 100.0 0.0 n/a n/a n/a n/a n/a

Average 100.0% 0.0% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,725.39 (119.22) 1,844.61 93.5 6.5 1,667.07 0.00 1,667.07 100.0 0.0

UFLAC 1,632.55 0.00 1,632.55 100.0 0.0 1,730.21 0.00 1,730.21 100.0 0.0

UFLAC Vivity 1,671.74 0.00 1,671.74 100.0 0.0 1,769.40 0.00 1,769.40 100.0 0.0

LAFPP 1,725.39 (378.67) 2,104.06 82.0 18.0 n/a n/a n/a n/a n/a

Average 93.9% 6.1% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,725.39 (435.20) 2,160.59 79.9 20.1 1,820.29 (132.37) 1,952.66 93.2 6.8

UFLAC 1,645.01 0.00 1,645.01 100.0 0.0 1,742.67 0.00 1,742.67 100.0 0.0

UFLAC Vivity 1,670.13 0.00 1,670.13 100.0 0.0 1,777.79 0.00 1,777.79 100.0 0.0

LAFPP 1,725.39 (1,015.80) 2,741.19 62.9 37.1 n/a n/a n/a n/a n/a

Average 85.7% 14.3% Average 97.7% 2.3%

Family HMO

Effective 7/1/2018 Effective 7/1/2019

Single-Party HMO


Two-Party HMO


Eligible Members w/ 25 YOS

Medicare HMO Attachment 2

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 542.51 (170.38) 712.89 76.1 23.9 542.51 (105.07) 647.58 83.8 16.2

LAPRA Med A - - - - - 489.26 0.00 489.26 100.0 0.0

UFLAC 542.51 (79.92) 622.43 87.2 12.8 542.51 (107.05) 649.56 83.5 16.5

UFLAC Vivity 542.51 (93.88) 636.39 85.2 14.8 542.51 (121.01) 663.52 81.8 18.2

UFLAC Med A 369.99 0.00 369.99 100.0 0.0 369.99 0.00 369.99 100.0 0.0

LAFPP 273.69 0.00 273.69 100.0 0.0 258.94 0.00 258.94 100.0 0.0

Average 89.7% 10.3% Average 91.5% 8.5%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,425.01 (182.60) 1,607.61 88.6 11.4 1,348.50 (105.07) 1,453.57 92.8 7.2

UFLAC 1,557.80 (79.92) 1,637.72 95.1 4.9 1,586.25 (107.05) 1,693.30 93.7 6.3

UFLAC Vivity 1,583.47 (93.88) 1,677.35 94.4 5.6 1,657.28 (121.01) 1,778.29 93.2 6.8

LAFPP 944.75 (378.67) 1,323.42 71.4 28.6 n/a n/a n/a n/a n/a

Average 87.4% 12.6% Average 93.2% 6.8%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,200.23 (170.38) 1,370.61 87.6 12.4 1,135.00 (105.07) 1,240.07 91.5 8.5

LAPRA Med A - - - - - 947.23 0.00 947.23 100.0 0.0

UFLAC 1,557.80 (79.92) 1,637.72 95.1 4.9 1,586.25 (107.05) 1,693.30 93.7 6.3

UFLAC Vivity 1,583.47 (93.88) 1,677.35 94.4 5.6 1,657.28 (121.01) 1,778.29 93.2 6.8

UFLAC Med A 715.29 0.00 715.29 100.0 0.0 715.29 0.00 715.29 100.0 0.0

LAFPP 542.78 0.00 542.78 100.0 0.0 513.28 0.00 513.28 100.0 0.0

Average 95.4% 4.6% Average 96.4% 3.6%

Two-Party HMO: Member and Spouse, Both Medicare A&B&D


Single-Party HMO: Member Medicare A&B&D


Two-Party HMO: Member Medicare A&B&D, Spouse Non-Medicare



HMO PREMIUM RATIOS TO SINGLE-PARTY PLAN Attachment 3

PLAN DESCRIPTIONS Jul-18 Jul-19%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*

Member Only 949.89 861.08 -9.3% 1.00 1667.73 1765.39 5.9% 1.00 1610.22 1707.88 6.1% 1.00

Two Party 1844.61 1667.07 -9.6% 1.94 1671.74 1769.40 5.8% 1.00 1632.55 1730.21 6.0% 1.01

Family 2160.59 1952.66 -9.6% 2.27 1670.13 1777.79 6.4% 1.01 1645.01 1742.67 5.9% 1.02

Member B&D 842.89 765.58 -9.2% 1.00 645.36 669.20 3.7% 1.00 624.99 694.20 11.1% 1.00

Mem B Only 871.89 792.58 -9.1% 1.00

2 PTY: Mem B/D, Sps A/B/D 1500.61 1358.07 -9.5% 1.77 1671.74 1906.67 14.1% 2.85 1614.96 1711.74 6.0% 2.47

2 PTY: Mem B/D, Sps A/B 1529.61 1385.07 -9.4% 1.81

2 PTY: Mem B, Sps A/B/D 1529.61 1385.07 -9.4% 1.75

2 PTY: Mem B, Sps A/B 1558.61 1412.07 -9.4% 1.78

2 PTY: Mem None, Sps A/B/D 1607.61 1453.57 -9.6% 1.69 1670.13 1769.40 5.9% 1.00 1632.55 1730.21 6.0% 1.01

2 PTY: Mem None, Sps A/B 1636.61 1480.57 -9.5% 1.72

2 PTY: Mem B/D, Sps B/D 1630.61 1476.07 -9.5% 1.93 1671.74 1906.67 14.1% 2.85 1614.96 1711.74 6.0% 2.47

2 PTY: Mem B/D, Sps B 1659.61 1503.07 -9.4% 1.96

2 PTY: Mem B, Sps B/D 1659.61 1503.07 -9.4% 1.90

2 PTY: Mem B, Sps B Only 1688.61 1530.07 -9.4% 1.93

2 PTY: Mem None, Sps B/D 1737.61 1571.57 -9.6% 1.83 1671.74 1769.40 5.8% 1.00 1632.55 1730.21 6.0% 1.01

2 PTY: Mem None, Sps B Only 1766.61 1598.57 -9.5% 1.86

2 PTY: Mem B/D, Sps None 1737.61 1571.57 -9.6% 2.05 1809.01 1906.67 5.4% 2.85 1614.96 1711.74 6.0% 2.47

2 PTY: Mem B, Sps None 1766.61 1598.57 -9.5% 2.02

3 PTY: Mem B/D, Sps None, Dep None 2053.59 1857.16 -9.6% 2.43 1805.86 1918.52 6.2% 2.87 1759.37 1857.03 5.6% 2.68

3 PTY: Mem B, Sps None, Dep None 2082.59 1884.16 -9.5% 2.38

3 PTY: Mem B/D, Sps B/D, Dep None 1946.59 1761.66 -9.5% 2.30

3 PTY: Mem None, Sps A/B/D, Dep None 1923.59 1739.16 -9.6% 2.02 1670.13 1777.79 6.4% 1.01 1645.01 1742.67 5.9% 1.02

3 PTY: Mem None, Sps A/B, Dep None 1952.59 1766.16 -9.5% 2.05

2 PTY: Mem B/D, Sps A/D 1578.61 1426.57 -9.6% 1.86

3 PTY: Mem None, Sps None, Dep A/B/D 1923.59 1739.16 -9.6% 2.02

3 PTY: Mem None, Sps None, Dep A/B 1952.59 1766.16 -9.5% 2.05

Member Only A/B/D 712.89 647.58 -9.2% 1.00 n/a 489.26 0.0% 1.00 636.39 663.52 4.3% 1.00 622.43 649.56 4.4% 1.00 369.99 369.99 0.0% 1.00 273.69 258.94 -5.4% 1.00

Member Only A&B 741.89 674.58 -9.1% 1.00

2 PTY: Mem A/B/D, Sps None 1607.61 1453.57 -9.6% 2.24 1677.35 1778.29 6.0% 2.68 1637.72 1693.30 3.4% 2.61

2 PTY: Mem A/B, Sps None 1636.61 1480.57 -9.5% 2.19

2 PTY: Mem A/B/D, Sps A/D 1448.61 1308.57 -9.7% 2.02

2 PTY: Mem A/B/D, Sps A 1477.61 1335.57 -9.6% 2.06

2 PTY: Mem A/B, Sps A/D 1477.61 1335.57 -9.6% 1.98

2 PTY: Mem A/B, Sps A 1506.61 1362.57 -9.6% 2.02

2 PTY: Mem A/B/D, Sps B/D 1500.61 1358.07 -9.5% 2.10 1677.35 1778.29 6.0% 2.68 1637.72 1693.30 3.4% 2.61

2 PTY: Mem A/B/D, Sps B Only 1529.61 1385.07 -9.4% 2.14

2 PTY: Mem A/B, Sps B/D 1529.61 1385.07 -9.4% 2.05

2 PTY: Mem A/B, Sps B Only 1558.61 1412.07 -9.4% 2.09

2 PTY: Both A/B/D 1370.61 1240.07 -9.5% 1.91 n/a 947.23 0.0% 1.94 1677.35 1778.29 6.0% 2.68 1637.72 1693.30 3.4% 2.61 715.29 715.29 0.0% 1.93 542.78 513.28 -5.4% 1.98

2 PTY: Mem A/B, Sps A/B/D 1399.61 1267.07 -9.5% 1.88

2 PTY: Mem A/B/D, Sps A/B 1399.61 1267.07 -9.5% 1.96

2 PTY: Both A&B 1428.61 1294.07 -9.4% 1.92

2 PTY: Mem A/D, Sps A/B/D 1448.61 1308.57 -9.7% 1.83

LAPRA UFLAC VIVITY UFLAC SELECT LAFPP UFLAC Medicare AdvantageLAPRA Medicare Advantage



Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*


2 PTY: Mem A Only, Sps A/B/D 1477.61 1335.57 -9.6% 1.80

2 PTY: Mbr A/D , Sps A/B 1477.61 1335.57 -9.6% 1.87

3 PTY: Mem A/B/D, Sps None, Dep None 1923.59 1739.16 -9.6% 2.69 1782.14 1883.08 5.7% 2.84 1799.90 1855.48 3.1% 2.86

3 PTY: Mem A/B, Sps None, Dep None 1952.59 1766.16 -9.5% 2.62

3 PTY: Mem A/B/D, Sps A/B/D, Dep None 1686.59 1525.66 -9.5% 2.36 1782.14 1883.08 5.7% 2.84 1799.90 1855.48 3.1% 2.86

3 PTY: Mem A/B/D, Sps A/B, Dep None 1764.59 1594.16 -9.7% 2.46

3 PTY: Mem A/B, Sps A/B/D, Dep None 1715.59 1552.66 -9.5% 2.30

3 PTY: Mem A/B, Sps A/B, Dep None 1744.59 1579.66 -9.5% 2.34

3 PTY: Mem A/B/D, Sps A/B/D, Dep A/B/D 1449.59 1312.16 -9.5% 2.03 n/a 1412.79 0.0% 2.89 817.65 773.40 -5.4% 2.99

3 PTY: Mem A/B/D, Sps A/D, Dep None 1715.59 1552.66 -9.5% 2.40

3 PTY: Mem A/B/D, Sps A, Dep None 1793.59 1621.16 -9.6% 2.50

3 PTY: Mem A/B, Sps A/D, Dep None 1793.59 1621.16 -9.6% 2.40

3 PTY: Mem A/B/D, Sps A/B, Dep A/B/D 1478.59 1339.16 -9.4% 2.07

3 PTY: Mem A/B/D, Sps A/B/D, Deps A/B 1478.59 1339.16 -9.4% 2.07

3 PTY: Mem A/B/D, Sps A/B, Dep A/B 1507.59 1366.16 -9.4% 2.11

3 PTY: Mem None, Sps A/B/D, Dep A/B/D 1686.59 1525.66 -9.5% 1.77

3 PTY: Mem None, Sps A/B/D, Dep A/B 1715.59 1552.66 -9.5% 1.80

3 PTY: Mem None, Sps A/B, Dep A/B/D 1715.59 1552.66 -9.5% 1.80

3 PTY: Mem None, Sps A/B, Dep A/B 1744.59 1579.66 -9.5% 1.83

3 PTY: Mem None, Sps B/D, Dep None 2053.59 1857.16 -9.6% 2.16

Member A&D 790.89 716.08 -9.5% 1.00

Member A Only 819.89 743.08 -9.4% 1.00

2 PTY: Both A&D 1526.61 1692.61 10.9% 2.36

2 PTY: Mem A/D, Sps A Only 1555.61 1404.07 -9.7% 1.96

2 PTY: Mem A, Sps A/D 1555.61 1404.07 -9.7% 1.89

2 PTY: Both A Only 1584.61 1431.07 -9.7% 1.93

2 PTY: Mem None, Sps A Only 1714.61 1549.07 -9.7% 1.80

2 PTY: Mem None, Sps A/D 1685.61 1522.07 -9.7% 1.77

2 PTY: Mem A Only, Sps None 1714.61 1549.07 -9.7% 2.08

2 PTY: Mem A/D, Sps None 1685.61 1522.07 -9.7% 2.13

3 PTY: Mem A/D, Sps A/D, Dep A/D 1683.59 1517.66 -9.9% 2.12

3 PTY: Mem A/D, Sps None, Dep None 2001.59 1807.66 -9.7% 2.52

3 PTY: Mem A Only, Sps A Only, Dep None 1900.59 1658.33 -12.7% 2.23

3 PTY: Mem A/D, Sps A Only, Dep None 1871.59 1689.66 -9.7% 2.36

3 PTY: Mem A Only, Sps A/D, Dep None 1871.59 1689.66 -9.7% 2.27

3 PTY: Mem A/D, Sps A/D, Dep None 1842.59 1662.66 -9.8% 2.24

3 PTY: Mem A Only, Sps None, Dep A Only 1900.59 1716.66 -9.7% 2.31

3 PTY: Mem A/D, Sps None, Dep A Only 1871.59 1689.66 -9.7% 2.36

3 PTY: Mem A Only, Sps None, Dep A/D 1871.59 1689.66 -9.7% 2.27

3 PTY: Mem A/D, Sps None, Dep A/D 1842.59 1662.66 -9.8% 2.32

3 PTY: Mem None, Sps A Only, Dep None 2030.59 1834.66 -9.6% 2.13

3 PTY: Mem None, Sps A/D, Dep None 2001.59 1807.66 -9.7% 2.10



Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*Jul-18 Jul-19

%

Change

Ratio to

1 PTY*


3 PTY: Mem None, Sps A Only, Dep A Only 1900.59 1716.66 -9.7% 1.99

3 PTY: Mem None, Sps A/D, Dep A Only 1871.59 1689.66 -9.7% 1.96

3 PTY: Mem None, Sps A Only, Dep A/D 1871.59 1689.66 -9.7% 1.96

3 PTY: Mem None, Sps A/D, Dep A/D 1842.59 1662.66 -9.8% 1.93

3 PTY: Mem None, Sps None, Dep A Only 2030.59 1834.66 -9.6% 2.13

3 PTY: Mem None, Sps None, Dep A/D 2001.59 1807.66 -9.7% 2.10

3 PTY: Mem A Only, Sps None, Dep None 2030.59 1834.66 -9.6% 2.47

3 PTY: Mem None (>65), Sps B/D, Dep None 2053.59 1857.16 -9.6% 2.16

3 PTY: Mem A/B/D, Sps None, Dep A/B/D 1686.59 1525.66 -9.5% 2.36

3 PTY: Mem A/B/D, Sps None, Dep A/B 1715.59 1552.66 -9.5% 2.40

Surv. Sps/DP Under Age 65 1017.99 1069.19 5.0% 1.00 994.32 1045.52 5.1% 1.00

Surviving Sp/DP Only A/B/D 369.99 369.99 0% 1.00

Surviving Sp/DP A&B 636.39 663.52 4.3% 1.00 622.43 649.56 4.4% 1.00

Surviving Sp/DP Under Age 65 & Family 1591.00 1642.20 3.2% 1.54 1552.33 1603.53 3.3% 1.53

Surviving Sp/DP A&B 2-PTY & Family 1364.54 1391.67 2.0% 2.10 1331.47 1358.60 2.0% 2.09

Surviving children: family 1591.00 1338.96 -15.8% 1.00 1552.33 1305.39 -15.9% 1.00

Surviving Sp/DP B only 1017.99 1069.19 5.0% 1.00 994.32 1045.52 5.1% 1.00

Surviving Sp/DP B only & Family 1591.00 1642.20 3.2% 1.54 1552.33 1603.53 3.3% 1.53

Surviving child 1017.99 1338.96 31.5% 1.00 994.32 1305.39 31.3% 1.00

ATTACHMENT 4

APPROVAL OF THE LOS ANGELES POLICE RELIEF ASSOCIATION ANTHEM BLUE

CROSS CALIFORNIACARE PLUS HMO PLAN AS A SUITABLE PLAN ELIGIBLE FOR

SUBSIDIES

RESOLUTION ________________

WHEREAS, Under the Los Angeles City Charter and Administrative Code, the Board of

Fire and Police Pension Commissioners (Board) has the authority to administer a health

insurance program for retired members and eligible beneficiaries of the Los Angeles Fire and

Police Pension plan (LAFPP). See L.A. Charter §§1330(a), (d), 1428 (a), (d), 1518(a), (d),

1618(a), (d), 1718(a), (d); L.A. Admin. Code §§4.2018, 4.1150-4.1167; and

WHEREAS, consistent with these Charter and Administrative Code provisions, the Board

has the legal authority to: (1) contract with health insurers, health plans or third-party

administrators to make group health insurance plans available to LAFPP retirees and eligible

beneficiaries; (2) approve health insurance plans to be funded with LAFPP subsidy dollars; and

(3) set subsidy amounts annually; and

WHEREAS, the Board must exercise its authority over this health insurance program in a

manner consistent with its fiduciary duties, including its duties of prudence and impartiality; and

WHEREAS, on November 1, 2018, the Board and the Los Angeles Police Relief

Association (Association) entered into a contract for health and dental plan administration

services (Contract); and

WHEREAS, the Board and the Association agreed in Article 3.2(d) of the Contract that, at

least sixty (60) days prior to the beginning of each plan year, for each plan listed in Appendix C

of the Contract, and for any new plans proposed during the term of the Contract, the Association

shall present an annual report to the Board regarding health plan provisions, member

demographic data, cost trend information, Medicare plan pricing and cost reimbursement, and

general pharmaceutical benefit information, and any changes in plan design, premiums, or

administrative fees related to its health plans; and

WHEREAS, the Board and the Association agreed in Article 3.3(b) of the Contract that, in

conjunction with this annual report, the Board will consider each plan administered by the

Association for approval by Board Resolution as a suitable plan eligible for LAFPP subsidies for

the following plan year; and

WHEREAS, the health and dental plans administered by the Association are outlined in

Appendix C of the Contract and include the Police Relief Association Anthem Blue Cross

CaliforniaCare Plus HMO plan; and

WHEREAS, on April 18, 2019, the Association provided the Board the annual report

regarding the Los Angeles Police Relief Association Anthem Blue Cross CaliforniaCare Plus HMO

plan, as required by Article 3.2(d) of the Contract; and

WHEREAS, the Board has independently validated the material information contained in

the Association’s annual report.

ATTACHMENT 4

NOW THEREFORE, BE IT RESOLVED, that the Board has considered all material

information provided by the Association regarding the Los Angeles Police Relief Association

Anthem Blue Cross CaliforniaCare Plus HMO plan and, consistent with its legal authority under

the Charter and Administrative Code and its fiduciary duties, has determined that for the plan year

commencing on July 1, 2019 through June 30, 2020, the Los Angeles Police Relief Association

Anthem Blue Cross CaliforniaCare Plus HMO plan is approved as a suitable plan eligible to

receive LAFPP subsidies.

BE IT FURTHER RESOLVED, for the plan year commencing on July 1, 2019 through

June 30, 2020, the administration fee that will be charged by Los Angeles Police Relief

Association is $7.00 per member and will be included as part of the monthly premium.

BE IT FURTHER RESOLVED that subsidies will be paid on behalf of members, the

dependents of retired members, and qualified surviving spouses/domestic partners who are

eligible and enrolled in the Los Angeles Police Relief Association Anthem Blue Cross

CaliforniaCare Plus HMO plan, subject to the limits described in Board Operating Policy 8.2, and

consistent with the Charter and Administrative Code and other applicable laws.

I HEREBY CERTIFY that the foregoing Resolution was

adopted by the Board of Fire and Police Pension

Commissioners at its regular meeting held May 16, 2019.

Raymond P. Ciranna

General Manager

ATTACHMENT 5

APPROVAL OF THE UNITED FIREFIGHTERS OF LOS ANGELES CITY ANTHEM BLUE

CROSS SELECT HMO PLAN

AS A SUITABLE PLAN ELIGIBLE FOR SUBSIDIES

RESOLUTION ________________




Police Pension plan (LAFPP). See L.A. Charter §§1330(a), (d), 1428(a), (d), 1518(a), (d),









WHEREAS, on November 1, 2018, the Board and the United Firefighters of Los Angeles

City (Association) entered into a contract for health and dental plan administration services

(Contract); and




shall present an annual report to the Board regarding health plan provisions; any changes in plan

design, premiums, or administrative fee related to its health plans; and if reasonably available to

the Association, member demographic data, cost trend information, Medicare plan pricing and

cost reimbursement, and general pharmaceutical benefit information; and






Appendix C of the Contract and include the United Firefighters of Los Angeles City Anthem Blue

Cross Select HMO plan; and

WHEREAS, due to the execution date of the Contract on November 1, 2018, it was not

feasible, for the plan year that commenced on January 1, 2019 and ends on December 31, 2019

only, for the Association to present their annual report to the Board sixty (60) days prior to the

start of the plan year as required by Article 3.2(d) of the Contract; and

WHEREAS, these circumstances are unique to the plan year commencing January 1,

2019 and the Association and the Board agree that this resolution is not intended to waive, and

ATTACHMENT 5

shall not be deemed to waive, in whole or in part, the obligations undertaken by the Association

pursuant to Article 3.2(d) of the Contract to timely present the annual report to the Board at least

sixty (60) days prior to the start of each plan year for the remaining term of the Contract; and


regarding the United Firefighters of Los Angeles City Anthem Blue Cross Select HMO plan, as

required by Article 3.2(d) of the Contract; and




information provided by the Association regarding the United Firefighters of Los Angeles City

Anthem Blue Cross Select HMO plan and, consistent with its legal authority under the Charter

and Administrative Code and its fiduciary duties, has determined that for the plan year

commencing on January 1, 2019 through December 31, 2019, the United Firefighters of Los

Angeles City Anthem Blue Cross Select HMO plan is approved as a suitable plan eligible to


BE IT FURTHER RESOLVED, for the plan year commencing on January 1, 2019 through

December 31, 2019, the administration fee that will be charged by United Firefighters of Los

Angeles City is $22.00 per member and will be included as part of the monthly premium.



eligible and enrolled in the United Firefighters of Los Angeles City Anthem Blue Cross Select

HMO plan, subject to the limits described in Board Operating Policy 8.2, and consistent with the

Charter and Administrative Code and other applicable laws.




Raymond P. Ciranna

General Manager

ATTACHMENT 6


CROSS VIVITY HMO PLAN


RESOLUTION ________________















(Contract); and














Cross VIVITY HMO plan; and







ATTACHMENT 6





regarding the United Firefighters of Los Angeles City Anthem Blue Cross VIVITY HMO plan, as






Anthem Blue Cross VIVITY HMO plan and, consistent with its legal authority under the Charter



Angeles City Anthem Blue Cross VIVITY HMO plan is approved as a suitable plan eligible to







eligible and enrolled in the United Firefighters of Los Angeles City Anthem Blue Cross VIVITY






Raymond P. Ciranna

General Manager

ATTACHMENT 7

APPROVAL OF THE UNITED FIREFIGHTERS OF LOS ANGELES CITY ANTHEM MEDICARE

ADVANTAGE HMO PLAN


RESOLUTION ________________















(Contract); and













Appendix C of the Contract and include the United Firefighters of Los Angeles City Anthem

Medicare Advantage HMO plan; and







ATTACHMENT 7





regarding the United Firefighters of Los Angeles City Anthem Medicare Advantage HMO plan, as






Anthem Medicare Advantage HMO plan and, consistent with its legal authority under the Charter



Angeles City Anthem Medicare Advantage HMO plan is approved as a suitable plan eligible to







eligible and enrolled in the United Firefighters of Los Angeles City Anthem Medicare Advantage






Raymond P. Ciranna

General Manager



(213) 279-3000


DATE: MAY 16, 2019 ITEM: A.3 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APPROVAL OF THE LAPRA AND LAFRA KAISER PERMANENTE HEALTH

PLANS ELIGIBLE FOR SUBSIDY AND POSSIBLE BOARD ACTION

RECOMMENDATION That the Board: 1. Adopt the attached resolutions approving the Kaiser Permanente HMO and Kaiser Senior

Advantage health plans administered by Los Angeles Firemen’s Relief Association (LAFRA) as suitable plans eligible for the subsidy program from July 1, 2019 through June 30, 2020; and

2. Adopt the attached resolutions approving the Kaiser Permanente HMO and Kaiser Senior

Advantage health plans administered by Los Angeles Police Relief Association (LAPRA) as suitable plans eligible for the subsidy program from July 1, 2019 through June 30, 2020.

BACKGROUND LAPRA and LAFRA have worked with LAFPP for many years providing outstanding service and benefits to retired firefighters, police officers and their families. On October 18, 2018, LAFPP entered into a contract with LAFRA to continue providing health plan administration services. Then on November 1, 2018, LAFPP entered into a similar contract with LAPRA. Under the terms of the contracts, per Article 3.2, LAPRA and LAFRA agreed to present annually to the Board at least sixty (60) days prior to the start of the Plan year the following:



On April 18, 2019, LAFRA and LAPRA representatives provided an annual report to the Board which outlined their respective health plans and highlighted changes for the coming plan year. DISCUSSION Plan designs for the LAPRA and LAFRA Kaiser plans will remain the same for 2019-2020. Overall, premiums have increased at a combined rate of approximately 5% and will be effective July 1, 2019.


LAFRA LAFRA’s Kaiser premiums have increased at an overall average rate of 7%. (Attachment 1) The administrative fee will remain the same at $10.00 per member, per month, and is included in the premium. There are 361 pensioners enrolled in LAFRA’s Kaiser plans (as of the February 2019 pension roll). Currently, only Fire retirees and their survivors are eligible to enroll in this Kaiser plan. The chart below shows a comparison of premiums for the most commonly enrolled plans.

LAFRA Kaiser HMO 7/1/18

Monthly Premium





Member ABD, Spouse None (Medicare) $934.46 $1,019.55

Member & Spouse ABD (Medicare) $524.92 $551.21

LAPRA LAPRA’s new Kaiser rates have increased approximately 5% overall. (Attachment 1) The premiums also include an administrative fee (currently $5.00 per member, per month), which will increase to $7.00 per member, per month starting July 1, 2019. There are 1,440 pensioners enrolled in LAPRA’s Kaiser plans (as of the February 2019 pension roll). LAPRA’s Kaiser plans will continue to be open to all retired sworn Airport, Port, and Los Angeles City police officers. The chart below shows a comparison of premiums for the most commonly enrolled plans.

LAPRA Kaiser HMO 7/1/18

Monthly Premium





Member ABD, Spouse None (Medicare) $838.83 $887.35


Benefit Levels The LAPRA and LAFRA Kaiser plans provide similar benefits at varying levels. (Attachment 2) Both plans include 100% coverage for routine physicals, hospitalization, diagnostic x-rays and lab tests. Both Kaiser plans also waive the emergency room co-pay if the patient is admitted to the hospital. When comparing the two groups, the LAPRA Kaiser plan has lower premiums with higher copays ($15 for most services); whereas the LAFRA Kaiser plan has higher premiums and lower copays ($10 for most services). Additionally, LAPRA medical plan enrollees are able to participate in LAPRA’s wellness program. LAFRA will expand access to their wellness program to include Kaiser enrollees, effective July 1, 2019. (Previously, LAFRA’s wellness program was only available to retirees who were enrolled in their PPO health plan.)


Plan Approval On May 2, 2019, LAFPP’s health plan consultant, USI, presented their analyses of LAPRA and LAFRA’s Kaiser plans based on information provided by the Associations. According to USI, the overall increase in LAPRA premiums was expected to be higher than Kaiser’s annual trend of 5%, given the increased utilization for inpatient admissions, outpatient visits and emergency room claims. USI also acknowledged LAFRA’s Kaiser premium increases due to the increased cost of the pooled community. Overall, USI determined the LAPRA and LAFRA Kaiser renewals to be reasonable. LAFPP is able to fully subsidize almost all of the commonly enrolled Kaiser plans if a member has 25 years of service and a non-frozen subsidy. (Attachment 3) Of the LAFPP members enrolled in Board-approved health plans, 16.9% are currently participating in a Kaiser plan. Based on the information presented to the Board, staff recommends that both LAPRA and LAFRA Kaiser plans are suitable for the health subsidy program.

BUDGET No budget impact as written. POLICY No policy changes as recommended. CONTRACTOR DISCLOSURE INFORMATION

There is no contractor disclosure information required with this report. This report was prepared by: Eunice Zordilla, Manager Medical and Dental Benefits Section RPC:JS:GM:EZ:CT Attachments (7): 1. Kaiser Premium Comparison with Single-Party Ratio 2. Benefit Comparison of Kaiser Plans 3. Cost-Share Analysis by Plan Type 4. Resolution approving the LAFRA Kaiser Permanente HMO Health Plan 5. Resolution approving the LAFRA Kaiser Permanente Senior Advantage Health Plan 6. Resolution approving the LAPRA Kaiser Permanente HMO Health Plan 7. Resolution approving the LAPRA Kaiser Permanente Senior Advantage Health Plan

KAISER PREMIUM RATIOS TO SINGLE-PARTY PLAN Attachment 1

PLAN DESCRIPTIONS Jul-18 Jul-19 % ChangeRatio to

1 PTY*Jul-18 Jul-19 % Change

Ratio to


Ratio to

1 PTY*

Single 630.19 664.23 5.4% 1.00 677.00 757.87 11.9% 1.00 853.39 853.39 0.0% 1.00

Two Party 1231.45 1296.69 5.3% 1.95 1344.00 1487.89 10.7% 1.96 1706.78 1706.78 0.0% 2.00

Family 1444.01 1520.27 5.3% 2.29 1697.48 1874.79 10.4% 2.47 2218.82 2218.82 0.0% 2.60

Member B&D 549.57 566.89 3.2% 1.00 579.46 601.53 3.8% 1.00 257.25 262.47 2.0% 1.00

2 PTY: Mem B/D, Sps A/B/D 764.29 796.39 4.2% 1.40 836.90 863.21 3.1% 1.44 514.50 524.94 2.0% 2.00

2 PTY: Mem None, Sps A/B/D 844.87 893.71 5.8% 1.35 934.44 1019.55 9.1% 1.35 1110.64 1115.86 0.5% 1.31

2 PTY: Mem B/D, Sps B/D 1076.25 1108.37 3.0% 1.96 1148.90 1175.21 2.3% 1.95 514.50 524.94 2.0% 2.00

2 PTY: Mem None, Sps B/D 1156.87 1205.71 4.2% 1.82 1246.44 1331.55 6.8% 1.76 1110.64 1115.86 0.5% 1.31

2 PTY: Mem B/D, Sps None 1150.83 1199.35 4.2% 2.12 1246.46 1331.55 6.8% 2.21 1110.64 1115.86 0.5% 4.25

3 PTY: Mem B/D, Sps None, Dep None 1363.39 1422.91 4.4% 2.51 1599.94 1718.45 7.4% 2.86 1622.68 1627.9 0.3% 6.20

3 PTY: Mem None, Sps A/B/D, Dep None 1057.43 1117.29 5.7% 1.68 1287.92 1406.45 9.2% 1.86 1622.68 1627.9 0.3% 1.91

3 PTY:Mem B/D, Sps A/B/D, Dep None 1190.38 1250.11 5.0% 2.08

Member Only A/B/D 237.57 254.89 7.3% 1.00 267.46 289.53 8.3% 1.00 257.25 262.47 2.0% 1.00

2 PTY: Mem A/B/D, Sps None 838.83 887.35 5.8% 3.48 934.46 1019.55 9.1% 3.52 1110.64 1115.86 0.5% 4.25

2 PTY: Mem A/B/D, Sps B/D 764.29 796.37 4.2% 3.12 836.92 863.21 3.1% 2.98 514.50 524.94 2.0% 2.00

2 PTY: Both A/B/D 452.25 484.37 7.1% 1.90 524.92 551.21 5.0% 1.90 514.50 524.94 2.0% 2.00

3 PTY: Mem A/B/D, Sps None, Dep None 1051.39 1110.93 5.7% 4.36 1287.94 1406.45 9.2% 4.86 1622.68 1627.9 0.3% 6.20

3 PTY: Mem A/B/D, Sps A/B/D, Dep None 664.81 707.95 6.5% 2.78 878.40 938.11 6.8% 3.24 1026.54 1036.98 1.0% 3.95

3 PTY: Mem A/B/D, Sps A/B/D, Dep A/B/D 782.38 811.61 3.7% 2.80 771.14 786.81 2.0% 3.00

3 PTY: Mem None, Sps B/D, Deps None 1369.43 1429.29 4.4% 2.15

Member A Only 1060.83 1115.83 5.2% 1.00

Member (over 65) A&B Unassigned 1060.83 1115.83 5.2% 1.00

2 PTY: Mem A Only, Sps A/B/D 1275.51 1345.31 5.5% 1.21

2 PTY: Mem A/B Unassigned, Sps A/B/D 1275.51 1345.31 5.5% 1.21

2 PTY: Mem A Only, Sps B/D 1587.51 1657.31 4.4% 1.49

2 PTY: Mem A/B Unassigned, Sps B/D 1587.51 1657.31 4.4% 1.49

2 PTY: Mem A Only, Sps None 1662.09 1748.29 5.2% 1.57

2 PTY: Mem A/B Unassigned, Sps None 1662.09 1748.29 5.2% 1.57

2 PTY: Mem A Only, Sps A Only 2098.77 2206.25 5.1% 1.98

2 PTY: Mem A/B Unassigned, Sps A/B Unassigned 2098.77 2206.25 5.1% 1.98

2 PTY: Mem A Only, Sps B only 2411.77 2519.27 4.5% 2.26

2 PTY: Mem A/B Unassigned, Sps B only 2411.77 2519.27 4.5% 2.26

2 PTY: Mem A/B/D, Sps A Only 1275.51 1345.31 5.5% 5.28 1355.48 1437.71 6.1% 4.97

LAFPPLAFRALAPRA




Ratio to


Ratio to

1 PTY*

LAFPPLAFRALAPRA

2 PTY: Mem A/B/D, Sps A/B Unassigned 1275.51 1345.31 5.5% 5.28

2 PTY: Mem B/D, Sps A Only 1587.51 1657.31 4.4% 2.92

2 PTY: Mem B/D, Sps A/B Unassigned 1587.51 1657.31 4.4% 2.92

2 PTY: Mem None, Sps A Only 1668.13 1754.65 5.2% 2.64

2 PTY: Mem None, Sps A/B Unassigned 1668.13 1754.65 5.2% 2.64

3 PTY: Mem A Only, Sps Medicare A/B/D, Dep None 1488.07 1568.89 5.4% 1.41

3 PTY: Mem A/B Unassigned, Sps Medicare A/B/D, Dep None 1488.07 1568.89 5.4% 1.41

3 PTY: Mem A Only, Sps Medicare B/D, Dep None 1800.07 1880.89 4.5% 1.69

3 PTY: Mem A/B Unassigned, Sps Medicare B/D, Dep None 1800.07 1880.89 4.5% 1.69

3 PTY: Mem A Only, Sps None, Deps None 1874.65 1971.87 5.2% 1.77

3 PTY: Mem A/B Unassigned, Sps None, Dep None 1874.65 1971.87 5.2% 1.77

3 PTY: Mem A Only, Sps A Only, Dep None 2311.33 2429.83 5.1% 2.18

3 PTY: Mem A/B Unassigned, Sps A/B Unassigned, Dep None 2311.33 2429.83 5.1% 2.18

3 PTY: Mem A Only, Sps B only, Dep None 2624.33 2742.85 4.5% 2.46

3 PTY: Mem A/B Unassigned, Sps B only, Dep None 2624.33 2742.85 4.5% 2.46

3 PTY: Mem A/B/D, Sps A Only, Dep None 1488.07 1568.89 5.4% 6.16

3 PTY: Mem A/B/D, Sps A/B Unassigned, Dep None 1488.07 1568.87 5.4% 6.16

3 PTY: Mem B/D, Sps A Only, Dep None 1800.07 1880.89 4.5% 3.32

3 PTY: Mem B/D, Sps A/B Unassigned, Dep None 1800.07 1880.89 4.5% 3.32

3 PTY: Mem None, Sps A Only, Dep None 1880.69 1978.23 5.2% 2.98

3 PTY: Mem None, Sps A/B Unassigned, Dep None 1880.69 1978.23 5.2% 2.98

Member Unassigned Part B only 1373.83 1428.85 4.0% 1.00

2 PTY: Mem B only, Sps Medicare A/B/D 1588.51 1658.33 4.4% 1.16

2 PTY: Mem B only, Sps Medicare B/D 1900.51 1970.33 3.7% 1.38

2 PTY: Mem B only, Sps None 1975.09 2061.31 4.4% 1.44

2 PTY: Mem B only, Sps A only 2411.77 2519.27 4.5% 1.76

2 PTY: Mem A/B/D, Sps B only 1588.51 1658.33 4.4% 6.51

2 PTY: Mem B/D, Sps B only 1900.51 1970.33 3.7% 3.48

2 PTY: Mem None, Sps B only 1981.13 2067.67 4.4% 3.11

3 PTY: Mem B only, Sps A/B/D, Dep None 1801.07 1881.91 4.5% 1.32

3 PTY: Mem B only, Sps B/D, Dep None 2113.07 2193.91 3.8% 1.54

3 PTY: Mem B only, Sps None, Dep None 2187.65 2284.89 4.4% 1.60

3 PTY: Mem B only, Sps A only, Dep None 2624.33 2742.85 4.5% 1.92




Ratio to


Ratio to

1 PTY*

LAFPPLAFRALAPRA

3 PTY: Mem A/B/D, Sps B only, Dep None 1801.07 1881.91 4.5% 7.38

3 PTY: Mem B/D, Sps B only, Dep None 2113.07 2193.91 3.8% 3.87

3 PTY: Mem None, Sps B only, Dep None 2193.69 2291.25 4.4% 3.45

Member A&B Unknown with KP 1373.83 1428.85 4.0% 1.00

2 PTY: Mem A/B Unknown, Sps A/B/D 1588.51 1658.33 4.4% 1.16

2 PTY: Mem A/B Unknown, Sps B/D 1900.51 1970.33 3.7% 1.38

2 PTY: Mem A/B Unknown, Sps None 1975.09 2061.31 4.4% 1.44

2 PTY: Mem A/B Unknown, Sps A Only 2411.77 2519.27 4.5% 1.76

2 PTY: Mem A/B Unknown, Sps B only 2724.77 2832.29 3.9% 1.98

2 PTY: Mem A/B Unknown, Sps A/B Unknown 2724.77 2832.29 3.9% 1.98

2 PTY: Mem A/B/D, Sps A/B Unknown 1588.51 1658.33 4.4% 6.51

2 PTY: Mem B/D, Sps A/B Unknown 1900.51 1970.33 3.7% 3.48

2 PTY: Mem None, Sps A/B Unknown 1981.13 2067.67 4.4% 3.11

2 PTY: Mem A Only, Sps A/B Unknown 2411.77 2519.27 4.5% 2.26

3 PTY: Mem A/B Unknown, Sps A/B/D, Dep None 1801.07 1881.91 4.5% 1.32

3 PTY: Mem A/B Unknown, Sps B/D, Dep None 2113.07 2193.91 3.8% 1.54

3 PTY: Mem A/B Unknown, Sps None, Dep None 2187.65 2284.89 4.4% 1.60

3 PTY: Mem A/B Unknown, Sps A only, Dep None 2624.33 2742.85 4.5% 1.92

3 PTY: Mem A/B Unknown, Sps B only, Dep None 2937.33 3055.87 4.0% 2.14

3 PTY: Mem A/B/D, Sps A/B Unknown, Dep None 1801.07 1881.91 4.5% 3.32

3 PTY: Mem B/D, Sps A/B Unknown, Dep None 2113.07 2193.91 3.8% 3.87

3 PTY: Mem None, Sps A/B Unknown, Dep None 2193.69 2291.25 4.4% 1.60

3 PTY: Mem A only, Sps A/B Unknown, Dep None 2624.33 2742.85 4.5% 1.92

3 PTY: Mem B only, Sps A/B Unknown, Dep None 2937.33 3055.87 4.0% 2.14

3 PTY: Mem A/B Unknown, Sps A/B Unknown, Dep None 2937.33 3055.87 4.0% 2.14

3 PTY: Mem A/B Unknown, Sps A/B Unassigned, Dep None 2624.33 2742.85 4.5% 1.92

3 PTY: Mem A/B Unassigned, Sps A/B Unknown, Dep None 2624.33 2742.85 4.5% 2.46

2 PTY: Mem A/B Unknown, Sps A/B Unassigned 2411.77 2519.27 4.5% 1.76

2 PTY: Mem A/B Unassigned, Sps A/B Unknown 2411.77 2519.27 4.5% 2.26

KAISER HEALTH PLANS Attachment 2

LAFRA LAPRAPLAN KAISER HMO KAISER SENIOR ADVANTAGE KAISER HMO KAISER HMO

Member Only $853.39 N/A $757.87 $664.23

Two-Party $1,706.78 N/A $1,487.89 $1,296.69

Family $2,218.82 N/ $1,874.79 $1,520.27

Member w/AB&D $262.47 $262.47 $289.53 $254.89

Member + 1 both AB&D $524.94 $524.94 $551.21 $484.37Family: Member + 1, both AB&D; Dependent none $1,036.98 N/A $938.11 $707.95

Deductible None None None None

Out-of-Pocket Maximum $500 Individual $1,500 Family $500 Individual $1500 Individual

$3000 Family$1500 Individual

$3000 Family

Physician Office Visits $20 copay $15 copay $10 copay $15 copay

Urgent Care Centers $20 copay $15 copay; $50 copay Out-of-area $10 copay $15 copay

Emergency Care(copay waived if admitted) $100 copay $50 copay $75 copay $150 copay

Inpatient HospitalRoom & Board No charge No Charge No charge No chargeOutpatient Surgery Center -Facility $20 copay $15 copay $10 copay $15 copay

Lab/X-Ray No charge No Charge No charge No chargePhysical and OccupationalTherapy $20 copay $15 copay $10 copay $15 copayMental Health / SubstanceAbuse - I/P No charge No Charge No charge No charge

Mental Health / Substance Abuse - O/P $20 copay

$15 copay, individual therapy; (copay varies for group sessions) Unlimited

visits

No charge for patients aged 5 and over $15 copay

Prescription DrugsFormulary Yes Yes Yes Yes

Generic Copay $15 copay Retail; $30 copay Mail Order

$15 copay(Retail and Mail Order)

$5 copay, 30-day supply; $10 copay, 60-day supply; $15

copay 100-day supply$15 copay

Brand Copay $35 copay Retail; $70 copay Mail Order

$10 copay, 30-day supply; $20 copay, 60-day supply; $30 copay 100-day supply

$30 copay

Non-Formulary Not Covered Not Applicable Non-network benefit $30 copaySpecialty $100 copay Non-network benefit N/A

Retail 30-day supply Up to 100-day supply 30-day; 31-60 day; 61-100 day supply 30-day supply

Mail 100-day supply Up to 100-day supply 30-day -- 100-day supply 30-day -- 100-day supply

Notes Retirees w/Medicare Part B, or Parts A&B are enrolled in the

Kaiser Senior Advantage Health Plan

Kaiser and Kaiser Contracted Providers

NETWORK BENEFIT

LACERS


Kaiser and Kaiser-Contracted Providers

Und

er 6

565

+ M

edic

are


Non-Medicare Kaiser

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 630.19 0.00 630.19 100.0 0.0 664.23 0.00 664.23 100.0 0.0

LAFRA 677.00 0.00 677.00 100.0 0.0 757.87 0.00 757.87 100.0 0.0

LAFPP 853.39 0.00 853.39 100.0 0.0 853.39 0.00 853.39 100.0 0.0

Average 100.0% 0.0% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,231.45 0.00 1,231.45 100.0 0.0 1,296.69 0.00 1,296.69 100.0 0.0

LAFRA 1,344.00 0.00 1,344.00 100.0 0.0 1,487.89 0.00 1,487.89 100.0 0.0

LAFPP 1,706.78 0.00 1,706.78 100.0 0.0 1,706.78 0.00 1,706.78 100.0 0.0

Average 100.0% 0.0% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,444.01 0.00 1,444.01 100.0 0.0 1,520.27 0.00 1,520.27 100.0 0.0

LAFRA 1,697.48 0.00 1,697.48 100.0 0.0 1,820.29 (54.50) 1,874.79 97.1 2.9

LAFPP 1,725.39 (493.43) 2,218.82 77.8 22.2 1,820.29 (398.53) 2,218.82 82.0 18.0

Average 92.6% 7.4% Average 93.0% 7.0%

Family Kaiser


Single-Party Kaiser


Two-Party Kaiser



Attachment 3

Medicare Kaiser

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 237.57 0.00 237.57 100.0 0.0 254.89 0.00 254.89 100.0 0.0

LAFRA 267.46 0.00 267.46 100.0 0.0 289.53 0.00 289.53 100.0 0.0

LAFPP 257.25 0.00 257.25 100.0 0.0 262.47 0.00 262.47 100.0 0.0

Average 100.0% 0.0% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 838.83 0.00 838.83 100.0 0.0 887.35 0.00 887.35 100.0 0.0

LAFRA 934.46 0.00 934.46 100.0 0.0 1,019.55 0.00 1,019.55 100.0 0.0

LAFPP 1,110.64 0.00 1,110.64 100.0 0.0 1,115.86 0.00 1,115.86 100.0 0.0

Average 100.0% 0.0% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 452.25 0.00 452.25 100.0 0.0 484.37 0.00 484.37 100.0 0.0

LAFRA 524.92 0.00 524.92 100.0 0.0 551.21 0.00 551.21 100.0 0.0

LAFPP 514.50 0.00 514.50 100.0 0.0 524.94 0.00 524.94 100.0 0.0

Average 100.0% 0.0% Average 100.0% 0.0%

Two-Party Kaiser: Member and Spouse, Both Medicare A&B&D


Single-Party Kaiser: Member Medicare A&B&D


Two-Party Kaiser: Member Medicare A&B&D, Spouse Non-Medicare



Attachment 3

ATTACHMENT 4

APPROVAL OF THE LOS ANGELES FIREMEN’S RELIEF ASSOCIATION KAISER

PERMANENTE HMO PLAN


RESOLUTION ________________













WHEREAS, on October 18, 2018, the Board and the Los Angeles Firemen’s Relief

Association (Association) entered into a contract for health plan administration services

(Contract); and












WHEREAS, the health plans administered by the Association are outlined in Appendix C

of the Contract and include the Firemen’s Relief Association Kaiser Permanente HMO plan; and


regarding the Los Angeles Firemen’s Relief Association Kaiser Permanente HMO plan, as



the Association's annual report.

ATTACHMENT 4


information provided by the Association regarding the Los Angeles Firemen’s Relief Association

Kaiser Permanente HMO plan and, consistent with its legal authority under the Charter and

Administrative Code and its fiduciary duties, has determined that for the plan year commencing

on July 1, 2019 through June 30, 2020, the Los Angeles Firemen’s Relief Association Kaiser

Permanente HMO plan is approved as a suitable plan eligible to receive LAFPP subsidies.


June 30, 2020, the administration fee that will be charged by Los Angeles Firemen’s Relief




eligible and enrolled in the Los Angeles Firemen’s Relief Association Kaiser Permanente HMO

plan, subject to the limits described in Board Operating Policy 8.2, and consistent with the Charter

and Administrative Code and other applicable laws.




Raymond P. Ciranna

General Manager

ATTACHMENT 5

APPROVAL OF THE LOS ANGELES FIREMEN’S RELIEF ASSOCIATION KAISER SENIOR

ADVANTAGE PLAN


RESOLUTION ________________















(Contract); and













of the Contract and include the Firemen’s Relief Association Kaiser Senior Advantage plan; and


regarding the Los Angeles Firemen’s Relief Association Kaiser Senior Advantage plan, as




ATTACHMENT 5



Kaiser Senior Advantage plan and, consistent with its legal authority under the Charter and


on July 1, 2019 through June 30, 2020, the Los Angeles Firemen’s Relief Association Kaiser

Senior Advantage plan is approved as a suitable plan eligible to receive LAFPP subsidies.






eligible and enrolled in the Los Angeles Firemen’s Relief Association Kaiser Senior Advantage

plan, subject to the limits described in Board Operating Policy 8.2, and consistent with the Charter

and Administrative Code and other applicable laws.




Raymond P. Ciranna

General Manager

ATTACHMENT 6

APPROVAL OF THE LOS ANGELES POLICE RELIEF ASSOCIATION KAISER

PERMANENTE HMO PLAN


RESOLUTION ________________




























Appendix C of the Contract and include the Los Angeles Police Relief Association Kaiser

Permanente HMO plan; and


regarding the Los Angeles Police Relief Association Kaiser Permanente HMO plan, as required

by Article 3.2(d) of the Contract; and



ATTACHMENT 6



Kaiser Permanente HMO plan and, consistent with its legal authority under the Charter and


on July 1, 2019 through June 30, 2020, the Los Angeles Police Relief Association Kaiser

Permanente HMO plan is approved as a suitable plan eligible to receive LAFPP subsidies.






eligible and enrolled in the Los Angeles Police Relief Association Kaiser Permanente HMO plan,

subject to the limits described in Board Operating Policy 8.2, and consistent with the Charter and

Administrative Code and other applicable laws.




Raymond P. Ciranna

General Manager

ATTACHMENT 7

APPROVAL OF THE LOS ANGELES POLICE RELIEF ASSOCIATION KAISER SENIOR

ADVANTAGE PLAN


RESOLUTION ________________




























Appendix C of the Contract and include the Los Angeles Police Relief Association Kaiser Senior

Advantage plan; and


regarding the Los Angeles Police Relief Association Kaiser Senior Advantage plan, as required




ATTACHMENT 7



Kaiser Senior Advantage plan and, consistent with its legal authority under the Charter and


on July 1, 2019 through June 30, 2020, the Los Angeles Police Relief Association Kaiser Senior

Advantage plan is approved as a suitable plan eligible to receive LAFPP subsidies.






eligible and enrolled in the Los Angeles Police Relief Association Kaiser Senior Advantage plan,






Raymond P. Ciranna

General Manager



(213) 279-3000


DATE: MAY 16, 2019 ITEM: A.4 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APPROVAL OF LAPRA DENTAL PLANS AND POSSIBLE BOARD ACTION

RECOMMENDATION That the Board adopt the attached resolutions (Attachments 1-2) approving the Anthem Blue Cross DPPO and DHMO dental plans administered by Los Angeles Police Relief Association (LAPRA) as suitable plans eligible for the subsidy program effective July 1, 2019. BACKGROUND LAPRA and LAFPP have worked well together for many years to provide outstanding service and dental benefits to retired police officers and their families. On November 1, 2018, LAFPP entered into a contract with LAPRA to continue administering retiree dental (and health) plans on behalf of LAFPP pensioners. Under the terms of the contract, per Section 3.0, Article 3.2, LAPRA agreed to present annually to the Board at least sixty (60) days prior to the start of the Plan year the following: i. An annual report to LAFPP regarding dental plan provisions, member demographic data, cost trend information, and cost reimbursement. ii. Plan design, premium and administrative fee changes regarding its dental plans. iii. Open enrollment materials for the upcoming plan year. On April 18, 2019, LAPRA representatives provided an annual report to the Board which outlined their dental plans and highlighted changes for the coming plan year. DISCUSSION Two dental plans are administered by LAPRA through the Anthem Blue Cross network: Anthem Blue Cross DPPO and Anthem Blue Cross DHMO. Both plans are open to all retired Los Angeles City police officers, including sworn Airport and Port police officers. No changes to the dental plan designs were presented for the coming year, though there were modest changes to the premiums. The DPPO plan will increase by $0.88 per month for the single-party plan; $1.30 per month for the 2-party plan; and $1.40 per month for the family plan. The DHMO rates will decrease by $0.88 per month/single-party; $1.83 per month/2-party; and $2.83 per month/family. (See chart below for new rates.)


Anthem Blue Cross Dental DPPO



Single $74.80 $75.68

2-Party $109.80 $111.10

Family $118.80 $120.20

Anthem Blue Cross Dental DHMO



Single $30.66 $29.78

2-Party $62.49 $60.66

Family $95.39 $92.56

There are approximately 4,269 members enrolled in the DPPO dental plan and 222 enrolled in the DHMO plan. Administrative fees are $1.80 per month for each primary subscriber. Benefit Levels The dental benefits offered by LAPRA are comparable to those of the plans administered by the Los Angeles Police Protective League, providing a variety of options and plans from which to choose. A chart containing an overview of all retiree dental benefits has been included for comparison. (Attachment 3) Plan Approval On May 2, 2019, USI presented their analysis of the claims information provided by LAPRA as required by the current LAPRA contract. USI was able to validate the proposed dental plan renewals as appropriate. LAPRA provided USI with all the required claims data information as outlined in Appendix D of the contract. As such, staff recommends the following dental plans offered by LAPRA to be suitable and should be approved as indicated in the attached resolutions: • LAPRA Anthem Blue Cross DPPO Dental Plan • LAPRA Anthem Blue Cross DHMO Dental Plan BUDGET No budget impact as written. POLICY No policy changes as recommended.


CONTRACTOR DISCLOSURE INFORMATION There is no contractor disclosure information required with this report. This report was prepared by:

Eunice Zordilla, Manager Medical and Dental Benefits Section RPC:JS:GM:EZ:LM Attachments (3) Attachments: 1. Resolution approving the LAPRA Anthem Blue Cross DPPO dental plan 2. Resolution approving the LAPRA Anthem Blue Cross DHMO dental plan 3. Benefit comparison of all dental plans

ATTACHMENT 1


CROSS DPPO PLAN


RESOLUTION ________________


Fire and Police Pension Commissioners (Board) has the authority to administer a dental




WHEREAS, consistent with these Charter and Administrative Code provisions, the

Board has the legal authority to: (1) contract with dental insurers, dental plans or third-party

administrators to make group dental insurance plans available to LAFPP retirees and eligible

beneficiaries; (2) approve dental insurance plans to be funded with LAFPP subsidy dollars; and


WHEREAS, the Board must exercise its authority over this dental insurance program in

a manner consistent with its fiduciary duties, including its duties of prudence and impartiality;

and


Association (Association) entered into a contract for dental plan administration services

(Contract); and




shall present an annual report to the Board regarding dental plan provisions, member

demographic data, cost trend information, and any changes in plan design, premiums, or

administrative fees related to its dental plans; and





WHEREAS, the dental plans administered by the Association are outlined in Appendix C

of the Contract and include the Police Relief Association Anthem Blue Cross DPPO plan; and


regarding the Los Angeles Police Relief Association Anthem Blue Cross DPPO plan, as required




ATTACHMENT 1



Anthem Blue Cross DPPO plan and, consistent with its legal authority under the Charter and


on July 1, 2019 through June 30, 2020, the Los Angeles Police Relief Association Anthem Blue

Cross DPPO plan is approved as a suitable plan eligible to receive LAFPP subsidies.




BE IT FURTHER RESOLVED that subsidies will be paid on behalf of members who are

eligible and enrolled in the Los Angeles Police Relief Association Anthem Blue Cross DPPO plan,





Raymond P. Ciranna

General Manager

ATTACHMENT 2


CROSS DHMO PLAN


RESOLUTION ________________


Fire and Police Pension Commissioners (Board) has the authority to administer a dental





has the legal authority to: (1) contract with dental insurers, dental plans or third-party

administrators to make group dental insurance plans available to LAFPP retirees and eligible

beneficiaries; (2) approve dental insurance plans to be funded with LAFPP subsidy dollars; and


WHEREAS, the Board must exercise its authority over this dental insurance program in a



Association (Association) entered into a contract for dental plan administration services

(Contract); and




shall present an annual report to the Board regarding dental plan provisions, member

demographic data, cost trend information, and any changes in plan design, premiums, or

administrative fees related to its dental plans; and





WHEREAS, the dental plans administered by the Association are outlined in Appendix C

of the Contract and include the Police Relief Association Anthem Blue Cross DHMO plan; and


regarding the Los Angeles Police Relief Association Anthem Blue Cross DHMO plan, as required

by Article 3.2(d) of the Contract, and





ATTACHMENT 2

Anthem Blue Cross DHMO plan and, consistent with its legal authority under the Charter and



Cross DHMO plan is approved as a suitable plan eligible to receive LAFPP subsidies.




BE IT FURTHER RESOLVED that subsidies will be paid on behalf of members who are

eligible and enrolled in the Los Angeles Police Relief Association Anthem Blue Cross DHMO plan,





Raymond P. Ciranna

General Manager

DENTAL HMO PLANS Attachment 3

LACERS LAPPL LAPRA UFLAC

PLAN DeltaCare USA DHMO DeltaCare USA

DHMO

Anthem Blue Cross

HMO Dental PlanUFLAC Metlife DHMO

Member Only $13.57 $72.00 $29.78 $43.24

Two-Party $25.33 $101.00 $60.66 $82.27

Family $29.28 $101.00 $92.56 $82.27

Deductible $0 $0 $0 $0

Annual Maximum $0 N/A $0 $0

Preventative Services &

Diagnostic Care

2 cleanings/year, Bite-

wing X-rays, and Exam:

Plan pays 100%

$0 copay

No Charge for

cleanings, X-rays, or

Exams

$0 copay

Basic Services:

- Extractions No Charge

- Fillings No Charge

- Root Canals $0 - $180 copay/tooth

Major Services:

- Crowns $100 - $200

- Dentures $150 - $200

- Implants Not covered N/A

Orthodontia $1,000 copay$1,600 copay / child

$1,800 copay / adult

$1,750 copay

(adult/child)$0 copay

Orthodontia Lifetime

MaximumN/A N/A

24 months of standard

orthodontic careN/A

NotesOrthodontia copay

includes start-up fee

NETWORK →

BENEFIT DeltaCare USA HMO Dental Providers MetlifeDeltaCare USA

Orthodontia: $350 start-

up fee

Orthodontia: $250

copay for records; $265

copay for retention

Copays $0-

$20/procedure, then

Plan pays 100%

$40 - $75

copay/procedure

Copay varies

Copay varies

Copay varies

Copay varies

DENTAL PPO PLANS Attachment 3

PLAN Metlife Direct

Reimbursement

Member Only $72.00

Two-Party $104.00

Family $155.00

Deductible $0 $70 Individual /

$210 Family$0

$25/Individual;

$50/Family

(waived for

Preventative and

Diagnostics)

$0 $0 $0

Annual Maximum $2,000/Individual $1,250/Individual $2,000/Individual $1,200 $2,500 / Individual

Preventative

Services &

Diagnostic Care

2 cleanings/year

Bite-wing x-rays

and Exam: Plan

pays 100%

2 cleanings/year

Bite-wing x-rays

and Exam: Plan

pays 80%

3 cleanings/year:

Plan pays 100%

3 cleanings/year:

Plan pays 80%100% 60%

Charges are

reimbursable per

calendar year by

percentage:

Basic Services:

- Extractions $0 to $500 = 100%

- Fillings $500 to $900 = 80%

- Root Canals $900 to $4,260 = 50%

Major Services:

- Crowns 80% 70% 60% 50% 60% 60% of UCR $0 to $500 = 100%

- Dentures 50% 50% 50% 50% 60% 60% of UCR $500 to $900 = 80%

- Implants 50% 50% 60% 60% 60% 60% of UCR $900 to $4,260 = 50%

Orthodontia 50% 50% 50% 50% of UCR 50% 50% 50%

Orthodontia

Lifetime Maximum$2,250 $1,500 $2,000 / Individual

50%

60%

LAPRA

Anthem Blue Cross PPO Dental Plan

$1,500 / Individual

$3,000 / Individual

$1,750/Individual

$2,000/Individual

Metlife DPPO

Non-Network

$75.68

$111.10

$120.20

80%

3 cleanings/year; X-rays; Exams;

Sealants: Plan pays 100%

80% of UCR80% 70% 90% 80% 90%

Metlife PDP In-

Network and Out-

of-Network

$75.99

$121.09

$180.96

NETWORK →

BENEFIT

Delta Dental PPO

Network

Anthem Blue Cross

Dental Blue

Complete

Network

Non-NetworkDelta Dental PPO

NetworkNon-NetworkNon-Network

$51.16

$101.45

$146.56

Metlife PDP Plus

Network

LAPPLLACERS

Delta Dental PPO

$72.00

$101.00

$101.00

Delta Dental PPO

$25 Individual / $75 Family

UFLAC

50% (children only - Adults not

covered)

$1,500 / Child

100%



(213) 279-3000


DATE: MAY 16, 2019 ITEM: A.5 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APPROVAL OF THE LAPRA, LAFRA, AND UFLAC PPO HEALTH PLANS

ELIGIBLE FOR SUBSIDY AND POSSIBLE BOARD ACTION

RECOMMENDATION That the Board: 1. Adopt the attached resolution approving the Fire Medical PPO health plan, administered by Los

Angeles Firemen’s Relief Association (LAFRA) as a suitable plan eligible for the subsidy program from July 1, 2019 through June 30, 2020;

2. Adopt the attached resolution approving the Anthem Blue Cross PPO health plan, administered

by Los Angeles Police Relief Association (LAPRA) as a suitable plan eligible for the subsidy program from July 1, 2019 through June 30, 2020; and

3. Adopt the attached resolutions approving the Anthem Blue Cross PPO, High Deductible Health

Plan (HDHP) PPO, and Medicare Advantage PPO health plans, administered by United Firefighters of Los Angeles City (UFLAC) as suitable plans eligible for the subsidy program, from January 1, 2019 through December 31, 2019.

BACKGROUND LAFRA, LAPRA and UFLAC have worked with LAFPP for many years to provide outstanding service and health benefits to retired firefighters, police officers and their families. As of November 1, 2018, the Board approved LAFPP contracts with LAFRA, LAPRA and UFLAC to continue administering retiree health and/or dental plans on behalf of LAFPP pensioners. Under the terms of the contracts, per Article 3.2, each health plan administrator agreed to present annually to the Board at least sixty (60) days prior to the start of the Plan year the following:



On April 18, 2019, LAFRA, LAPRA and UFLAC representatives provided an annual report to the Board which outlined their respective health and dental plans and highlighted changes for the coming plan year. Since a presentation by UFLAC was not possible prior to their calendar year renewal in January, their presentation was included with the April 18th reports.


DISCUSSION There are currently five Board-approved PPO health plans. The following information will provide an overview of enrollment, premiums, benefit levels, and rate renewal findings for the Board’s determination of each plan’s suitability to be eligible for health subsidies. LAFRA LAFRA administers the self-funded Fire Medical PPO plan, to which all Fire retirees have access. This past year, the LAFRA Board of Trustees enacted a policy change that allows all retired Los Angeles City firefighters to enroll in the PPO plan regardless of membership status. There are approximately 2,689 LAFPP pensioners enrolled in the Fire Medical PPO plan. There are two benefit level changes for the plan year beginning on July 1, 2019. The prescription drug out-of-pocket maximum will increase from $5,350 individual/$10,700 family to $5,900 individual/$11,800 family. Additionally, the Vision Service Plan basic lens benefit has been expanded to include a standard progressive lens. The LAFRA Wellness Program was implemented on July 1, 2018. As a self-funded plan, LAFRA has more flexibility in terms of benefit levels and rate setting. Although, LAFRA has several cost containment measures in place, representatives reported an increase in combined medical and prescription claims this past year. Effective July 1, 2019, LAFRA’s negotiated rates are increasing at an overall rate of 6.9 %. (Attachment 1) Below is a chart that shows the current rates for the most commonly enrolled health plans.

Fire Medical PPO 7/1/18

Monthly Premium


Single (Non-Medicare) $958.12 $1,023.94





Per the current contract, LAFRA will assess an administrative fee that is based on a percentage of their health plan administration costs. It is anticipated that the administrative fee will be approximately $25.64 per member, per month, through July 1, 2020. LAPRA LAPRA administers the fully insured Anthem Blue Cross PPO plan, which is available to all Active and Retired Los Angeles City police officers and is also available to retired sworn Airport and Port police officers. There are approximately 5,278 LAFPP pensioners enrolled in the LAPRA PPO plan. In an effort to contain costs, several plan design changes were implemented between 2016 and 2018. There will be one additional change beginning July 1; the Body Scan benefit is increasing from $250 per year to $500 every other year. Overall, LAPRA’s negotiated PPO rates are


decreasing at an average rate of 1.7 %. (Attachment 1) The chart below illustrates the rates for the five most commonly enrolled coverage levels and the new rates effective July 1, 2019.

Anthem Blue Cross PPO 7/1/18

Monthly Premium







As stipulated in the contract, LAPRA premiums include a monthly administrative fee. Effective July 1, 2019, the administrative fee will increase by $2.00 for a total of $7.00 per member, per month. UFLAC UFLAC administers an Anthem Blue Cross PPO, HDHP PPO, and Medicare Advantage PPO plans, which are all fully insured. Sworn retirees of the Fire, Harbor, and Airport Departments are eligible to enroll in the health plans administered by UFLAC. There are approximately 86 members enrolled in the PPO plan, 6 members enrolled in the HDHP PPO plan, and 1 member enrolled in the Medicare Advantage PPO plan. As of January 1, 2019, the PPO plan is closed to new retirees and the HDHP PPO plan is no longer available to Medicare enrollees. UFLAC plans operate on a calendar year basis. As such, there are no plan design changes to report at this time. However, UFLAC representatives did report that premiums increased due to medical trend. Overall, UFLAC PPO premiums have increased at an average rate of 1.25%. (Attachment 1) The charts below provide the current and prior year premiums for each plan.

Anthem Blue Cross PPO 1/1/18

Monthly Premium







Anthem Blue Cross HDHP 1/1/18

Monthly Premium





Member ABD, Spouse None (Medicare) $633.89 $665.83



Anthem Medicare Advantage PPO 1/1/19

Monthly Premium

Member ABD (Medicare) $484.90

Member & Spouse ABD (Medicare) $943.96

ULAC’s administrative fee of $22 per member, per month, remains unchanged and per the current contract will be incorporated into the premiums for each plan. Benefit Levels The benefits provided in each plan are similar. LAFRA and UFLAC enrollees have access to the Anthem Prudent Buyer network, whereas the LAPRA plan provides access to the Anthem Blue Cross PPO network. Overall, the LAFRA PPO plan provides the richest benefit levels among most services, requiring a copay of $15 for most services that are not fully covered. LAPRA PPO and UFLAC PPO and HDHP PPO plans require similar coinsurance of 10% for most services. Whereas the UFLAC Medicare Advantage PPO requires a copay of $0 to $25 depending on the service after a $100 deductible is met. Each PPO plan provides in-network and out-of-network prescription benefits. A detailed benefits comparison is provided in Attachment 2 for the Board’s reference. Rate Analysis On May 2, 2019, LAFPP’s health consultant, USI, presented their analysis of the provided claims data and subsequent rate renewal validation of the plans to the Board. USI determined that the LAFRA rate renewal is favorable. Due to enrollment size, UFLAC financial information was not available, however, USI found that the UFLAC rate renewal was fair when compared to PPO medical trend. On the other hand, USI was not immediately able to validate the LAPRA rate renewal. With additional information provided by LAPRA, USI was able to reach a rate renewal decrease of 2.9 %, which was 1.25% lower than LAPRA’s premium decrease. Plan Approval As Board-approved health plan administrators, LAFRA, LAPRA, and UFLAC each provided the Board with a requisite annual report on their respective plan activities and renewals. USI has validated the rate renewals for LAFRA and UFLAC. USI was able to reconcile most of the difference in renewal calculations for the LAPRA PPO premiums. Each plan administrator has reported the implementation of various cost containment efforts, particularly the new LAPRA and UFLAC Medicare Advantage Plans which have lower premiums compared to other plan offerings. LAFPP is able to fully subsidize all single-party non-Medicare PPO plans, as well as some multi-party plans offered by LAFRA and UFLAC. (Attachment 3) Additionally, all members enrolled in a LAFRA, LAPRA, or UFLAC plan have access to a wellness program benefit. As such, staff recommends that the following PPO health plans are suitable for the health subsidy program:

• LAFRA Fire Medical PPO

• LAPRA Anthem Blue Cross PPO

• UFLAC Anthem Blue Cross PPO

• UFLAC Anthem Blue Cross HDHP PPO

• UFLAC Anthem Medicare Advantage PPO


BUDGET No budget impact as written. POLICY No policy changes as recommended. CONTRACTOR DISCLOSURE INFORMATION

There is no contractor disclosure information required with this report. This report was prepared by: Eunice Zordilla, Manager Medical and Dental Benefits Section RPC:JS:GM:EZ Attachments (8)

1. PPO premium comparison 2. PPO benefit comparison 3. PPO cost-share analysis 4. Resolution approving the LAFRA Fire Medical PPO health plan 5. Resolution approving the LAPRA Anthem Blue Cross PPO health plan 6. Resolution approving the UFLAC Anthem Blue Cross PPO health plan 7. Resolution approving the UFLAC Anthem Blue Cross HDHP PPO health plan 8. Resolution approving the UFLAC Anthem Medicare Advantage PPO health

plan

PPO PREMIUM RATIOS TO SINGLE-PARTY PLAN Attachment 1

UFLAC Medicare Advantage

PLAN DESCRIPTIONS Jul-18 Jul-19 % Change Ratio to 1 PTY*

Jul-18 Jul-19 % Change Ratio to 1 PTY*





Member Only 970.75 957.80 -1.3% 1.00 958.12 1023.94 6.9% 1.00 1061.23 1158.89 9.2% 1.00 1706.66 1804.32 5.7% 1.00 1270.81 1270.81 0.0% 1.00Two Party 2164.21 2131.61 -1.5% 2.23 1551.22 1658.56 6.9% 1.62 1653.20 1275.39 -22.9% 1.10 2082.16 2179.82 4.7% 1.21 2537.02 2537.02 0.0% 2.00Family 2535.44 2496.89 -1.5% 2.61 1963.93 2100.16 6.9% 2.05 1651.42 1325.39 -19.7% 1.14 2354.64 2452.30 4.1% 1.36 2988.44 2988.44 0.0% 2.35Member B&D 782.75 772.80 -1.3% 1.00 790.12 844.18 6.8% 1.00 594.96 630.06 5.9% 1.00 660.14 661.50 0.2% 1.00 1270.81 1270.81 0.0% 1.00Mem B Only 820.75 810.30 -1.3% 1.00 827.12 883.77 6.8% 1.002 PTY: Mem B/D, Sps A/B/D 1603.21 1579.61 -1.5% 2.04 1051.22 1123.56 6.9% 1.33 920.32 1017.98 10.6% 1.62 2082.16 2179.82 4.7% 3.30 1808.72 1808.72 0.0% 1.422 PTY: Mem B/D, Sps A/B 1641.21 1617.11 -1.5% 2.09 1088.22 1163.15 6.9% 1.382 PTY: Mem B, Sps A/B/D 1641.21 1617.11 -1.5% 2.00 1088.22 1163.15 6.9% 1.322 PTY: Mem B, Sps A/B 1679.21 1654.61 -1.5% 2.04 1125.22 1202.74 6.9% 1.362 PTY: Mem None (<65), Sps A/B/D 1791.21 1764.61 -1.5% 1.84 1219.22 1303.32 6.9% 1.27 1653.20 1275.39 -22.9% 1.10 2082.16 2179.82 4.7% 1.21 1808.72 1808.72 0.0% 1.422 PTY: Mem None (<65), Sps A/B 1829.21 1802.11 -1.5% 1.88 1256.22 1342.91 6.9% 1.312 PTY: Mem B/D, Sps B/D 1788.21 1761.61 -1.5% 2.28 1215.22 1299.04 6.9% 1.54 920.32 1017.98 10.6% 1.62 2082.16 2179.82 4.7% 3.30 2537.02 2537.02 0.0% 2.002 PTY: Mem B/D, Sps B Only 1826.21 1799.11 -1.5% 2.33 1252.22 1338.63 6.9% 1.592 PTY: Mem B, Sps B/D 1826.21 1799.11 -1.5% 2.22 1252.22 1338.63 6.9% 1.512 PTY: Mem B, Sps B Only 1864.21 1836.61 -1.5% 2.27 1289.22 1378.22 6.9% 1.562 PTY: Mem None, Sps B/D 1976.21 1946.61 -1.5% 2.03 1383.22 1478.80 6.9% 1.44 1653.20 1275.39 -22.9% 1.10 2082.16 2179.82 4.7% 1.21 2537.02 2537.02 0.0% 2.002 PTY: Mem None, Sps B Only 2014.21 1984.11 -1.5% 2.07 1420.22 1518.39 6.9% 1.482 PTY: Mem B/D, Sps None 1976.21 1946.61 -1.5% 2.52 1383.22 1478.80 6.9% 1.75 920.32 1017.98 10.6% 1.62 2082.16 2179.82 4.7% 3.30 2537.02 2537.02 0.0% 2.002 PTY: Mem B, Sps None 2014.21 1984.11 -1.5% 2.45 1420.22 1518.39 6.9% 1.723 PTY: Mem B/D, Sps None, Dep None 2347.44 2311.89 -1.5% 2.99 1795.93 1920.40 6.9% 2.27 921.35 1029.01 11.7% 1.63 2354.64 2452.30 4.1% 3.71 2988.44 2988.44 0.0% 2.353 PTY: Mem B, Sps None, Dep None 2385.44 2349.39 -1.5% 2.90 1832.93 1959.99 6.9% 2.223 PTY: Mem B/D, Sps A/B/D, Dep None n/a 1944.89 n/a 2.52 1463.93 1565.16 6.9% 1.853 PTY: Mem B/D, Sps B/D, Dep None 2159.44 2126.89 -1.5% 2.75 1627.93 1740.64 6.9% 2.063 PTY: Mem B/D, Sps A/D, Dep None 1594.93 1705.33 6.9% 2.023 PTY: Mem None, Sps B/D, Dep None 1795.93 1920.40 6.9% 1.88 920.32 1017.98 10.6% 0.88 2082.16 2179.82 4.7% 1.213 PTY: Mem None, Sps A/B/D, Dep None 2162.44 2129.89 -1.5% 2.22 1631.93 1744.92 6.9% 1.70 1651.42 1325.39 -19.7% 1.14 2354.64 2452.30 4.1% 1.36 2260.14 2260.14 0.0% 1.783 PTY: Mem None, Sps A/B, Dep None 2200.44 2167.39 -1.5% 2.26 1668.93 1784.51 6.9% 1.742 PTY: Mem B/D, Sps A/D 1753.21 1727.11 -1.5% 2.23 1182.22 1263.73 6.9% 1.503 PTY: Mem None (<65), Sps None (<65), Dep A/B/D 2162.44 2129.89 -1.5% 2.22 1631.93 1744.92 6.9% 1.703 PTY: Mem None (<65), Sps None (<65), Dep A/B 2200.44 2167.39 -1.5% 2.26 1668.93 1784.51 6.9% 1.74Member Only A/B/D 597.75 590.80 -1.2% 1.00 626.12 668.70 6.8% 1.00 412.73 421.98 2.2% 1.00 983.60 1010.73 2.8% 1.00 484.90 484.90 0.0% 542.51 542.51 0.0% 1.00Member Only A/B 635.75 628.30 -1.2% 1.00 663.12 708.29 6.8% 1.002 PTY: Mem A/B/D, Sps None 1791.21 1764.61 -1.5% 2.99 1219.22 1303.32 6.9% 1.95 633.89 665.83 5.0% 1.58 2007.43 2130.87 6.1% 2.11 1808.72 1808.72 0.0% 3.332 PTY: Mem A/B, Sps None 1829.21 1802.11 -1.5% 2.87 1256.22 1342.91 6.9% 1.902 PTY: Mem A/B/D, Sps A/D 1568.21 1545.11 -1.5% 2.62 1018.22 1088.25 6.9% 1.632 PTY: Mem A/B/D, Sps A 1606.21 1582.61 -1.5% 2.68 1055.22 1127.84 6.9% 1.692 PTY: Mem A/B/D, Dep None 1219.22 1303.32 6.9% 1.952 PTY: Mem A/B, Sps A/D 1606.21 1582.61 -1.5% 2.522 PTY: Mem A/B, Sps A 1644.21 1620.11 -1.5% 2.58 1092.22 1167.43 6.9% 1.652 PTY: Mem A/B/D, Sps B/D 1603.21 1579.61 -1.5% 2.67 1051.22 1123.56 6.9% 1.68 633.89 665.83 5.0% 1.58 2007.43 2130.87 6.1% 2.11 1808.72 1808.72 0.0% 3.332 PTY: Mem A/B/D, Sps B Only 1641.21 1617.11 -1.5% 2.74 1088.22 1163.15 6.9% 1.742 PTY: Mem A/B, Sps B/D 1641.21 1617.11 -1.5% 2.57 1088.22 1163.15 6.9% 1.642 PTY: Mem A/B, Sps B Only 1679.21 1654.61 -1.5% 2.63 1125.22 1202.74 6.9% 1.702 PTY: Mem A/B/D, Sps A/B/D 1418.21 1397.61 -1.5% 2.37 887.22 948.08 6.9% 1.42 633.89 665.83 5.0% 1.58 2007.43 2130.87 6.1% 2.11 943.96 943.96 0.0% 1080.42 1080.42 0.0% 1.992 PTY: Mem A/B, Sps A/B/D 1456.21 1435.11 -1.4% 2.28 924.22 987.67 6.9% 1.392 PTY: Mem A/B/D, Sps A/B 1456.21 1435.11 -1.4% 2.43 924.22 987.67 6.9% 1.482 PTY: Both A/B 1494.21 1472.61 -1.4% 2.34 961.22 1027.26 6.9% 1.452 PTY: Mem A/D, Sps A/B/D 1568.21 1545.11 -1.5% 2.09 1018.22 1088.25 6.9% 1.352 PTY: Mem A/B/D, Dep A/B/D 887.22 948.08 6.9% 1.422 PTY: Mem A Only, Sps A/B/D 1606.21 1582.61 -1.5% 2.042 PTY: Mem A/D, Sps A/B 1606.21 1582.61 -1.5% 2.14

LAPRA LAFRA UFLAC HDHP UFLAC LAFPP










3 PTY: Mem A/B/D, Sps None, Dep None 2162.44 2129.89 -1.5% 3.61 1631.93 1744.92 6.9% 2.61 636.02 675.83 6.3% 1.60 2235.44 2358.88 5.5% 2.33 2260.14 2260.14 0.0% 4.173 PTY: Mem A/B, Sps None, Dep None 2200.44 2167.39 -1.5% 3.45 1668.93 1784.51 6.9% 2.523 PTY: Mem A/B/D, Sps A/B/D, Dep None 1789.44 1762.89 -1.5% 2.98 1299.93 1389.68 6.9% 2.08 636.02 675.83 6.3% 1.60 2235.44 2358.88 5.5% 2.33 1531.84 1531.84 0.0% 2.823 PTY: Mem A/B/D, Sps A/B, Dep None 1827.44 1800.39 -1.5% 3.05 1336.93 1429.27 6.9% 2.143 PTY: Mem A/B, Sps A/B/D, Dep None 1827.44 1800.39 -1.5% 2.87 1336.93 1429.27 6.9% 2.023 PTY: Mem A/B, Sps A/B, Dep None 1865.44 1837.89 -1.5% 2.93 1373.93 1468.86 6.9% 2.073 PTY: Mem A/B/D, Sps A/B/D, Dep A/B/D 1416.44 1395.89 -1.5% 2.36 967.93 1034.44 6.9% 1.55 1624.11 1624.11 0.0% 2.993 PTY: Mem A/B/D, Sps A/D, Dep None 1939.44 1910.39 -1.5% 3.23 1430.93 1529.85 6.9% 2.293 PTY: Mem A/B/D, Sps A, Dep None 1977.44 1947.89 -1.5% 3.303 PTY: Mem A/B, Sps A/D, Dep None 1977.44 1947.89 -1.5% 3.103 PTY: Mem A/B/D, Sps A/B, Dep A/B/D 1454.44 1433.39 -1.4% 2.433 PTY: Mem A/B/D, Sps A/B/D, Dep A/B 1454.44 1433.39 -1.4% 2.43 1004.93 1074.03 6.9% 1.613 PTY: Mem A/B/D, Sps A/B, Dep A/B 1492.44 1470.89 -1.4% 2.493 PTY: Mem None, Sps A/B/D, Dep A/B/D 1789.44 1762.89 -1.5% 1.843 PTY: Mem None, Sps A/B/D, Dep A/B 1827.44 1800.39 -1.5% 1.883 PTY: Mem None, Sps A/B, Dep A/B/D 1827.44 1800.39 -1.5% 1.883 PTY: Mem None, Sps A/B, Dep A/B 1865.44 1837.89 -1.5% 1.92Member A&D 747.75 738.30 -1.3% 1.00 757.12 808.87 6.8% 1.00Member A Only 785.75 775.80 -1.3% 1.00Member (>65) None 958.12 1023.94 6.9% 1.002 PTY: Both A&D 1718.21 1692.61 -1.5% 2.292 PTY: Mem A/D, Sps A Only 1756.21 1730.11 -1.5% 2.342 PTY: Mem A, Sps A/D 1756.21 1730.11 -1.5% 2.232 PTY: Both A Only 1794.21 1767.61 -1.5% 2.282 PTY: Mem None (<65), Sps A Only 1979.21 1949.61 -1.5% 2.04 1387.22 1483.08 6.9% 1.452 PTY: Mem None (<65), Sps A/D 1941.21 1912.11 -1.5% 2.00 1350.22 1443.49 6.9% 1.412 PTY: Mem A Only, Sps None 1979.21 1949.61 -1.5% 2.512 PTY: Mem A/D, Sps None 1941.21 1912.11 -1.5% 2.593 PTY: Mem A/D, Sps A/D, Dep A/D 1866.44 1838.39 -1.5% 2.493 PTY: Mem A/D, Sps None, Dep None 2312.44 2277.39 -1.5% 3.083 PTY: Mem A Only, Sps A Only, Dep None 2165.44 2132.89 -1.5% 2.753 PTY: Mem A/D, Sps A Only, Dep None 2127.44 2095.39 -1.5% 2.843 PTY: Mem A Only, Sps A/D, Dep None 2127.44 2095.39 -1.5% 2.703 PTY: Mem A/D, Sps A/D, Dep None 2089.44 2057.89 -1.5% 2.793 PTY: Mem A Only, Sps None, Dep A Only 2165.44 2132.89 -1.5% 2.753 PTY: Mem A/D, Sps None, Dep A Only 2127.44 2095.39 -1.5% 2.843 PTY: Mem A Only, Sps None, Dep A/D 2127.44 2095.39 -1.5% 2.703 PTY: Mem A/D, Sps None, Dep A/D 2089.44 2057.89 -1.5% 2.793 PTY: Mem None, Sps A Only, Dep None 2350.44 2314.89 -1.5% 2.42 1799.93 1924.68 6.9% 1.883 PTY: Mem None, Sps A/D, Dep None 2312.44 2277.39 -1.5% 2.38 1762.93 1885.09 6.9% 1.843 PTY: Mem None, Sps A Only, Dep A Only 2165.44 2132.89 -1.5% 2.233 PTY: Mem None, Sps A/D, Dep A Only 2127.44 2095.39 -1.5% 2.193 PTY: Mem None, Sps A Only, Dep A/D 2127.44 2095.39 -1.5% 2.193 PTY: Mem None, Sps A/D, Dep A/D 2089.44 2057.89 -1.5% 2.153 PTY: Mem None, Sps None, Dep A Only 2350.44 2314.89 -1.5% 2.423 PTY: Mem None, Sps None, Dep A/D 2312.44 2277.39 -1.5% 2.383 PTY: Mem A Only, Sps None, Dep None 2350.44 2314.89 -1.5% 2.983 PTY: Mem None, Sps B, Dep None 1832.93 1959.99 6.9% 1.913 PTY: Mem None (>65), Sps B/D, Dep None 2347.44 2311.89 -1.5% 2.41 1795.93 1920.40 6.9% 1.883 PTY: Mem A/B/D, Sps None (<65), Dep A/B/D 1789.44 1762.89 -1.5% 2.98 1299.93 1389.68 6.9% 2.083 PTY: Mem A/B/D, Sps None (<65), Dep A/B 1827.44 1800.39 -1.5% 3.05 1336.93 1429.27 6.9% 2.14










Surviving Child 785.46 785.46 0.0% 1.00 761.90 823.29 8.1% 1.00 1409.73 1076.55 -23.6% 1.00Surviving Children Family 761.90 823.29 8.1% 1.00 2380.30 1076.55 -54.8% 1.00Widow - 2 PTY: Widow A/B/D, Sps A/B/D 1219.22 1303.32 6.9% 1.95Widow - 2 PTY: A/B 1256.22 1342.91 6.9% 1.90 1011.59 1038.72 2.7% 1.00 1866.58 1893.71 1.5% 1.87Widow - 2 PTY: A/D 757.12 808.87 6.8% 1.00Widow - 2 PTY: A Only 794.12 848.46 6.8% 1.00Widow - 2 PTY: Widow A/B/D, Dep A/B/D 887.22 948.08 6.9% 1.42Widow Family: Widow A/B/D, Deps None 1631.93 1744.92 6.9% 2.61Widow - 2 PTY: B/D Only 1383.22 1478.80 6.9% 1.75Widow - 2 PTY: B Only 1420.22 1518.39 6.9% 1.72Widow - 3 PTY: B Only 1459.40 1510.60 3.5% 1.53 2380.30 2431.50 2.2% 1.66Widow 958.12 1023.94 6.9% 1.00 935.11 986.31 5.5% 1.00 1409.73 1460.93 3.6% 1.00Widow - 2 PTY 1551.22 1658.56 6.9% 1.62Widow Family: Widow None (<65), Deps None 1963.93 2100.16 6.9% 2.05 1459.40 1510.60 3.5% 1.53 2380.30 2431.50 2.2% 1.66Widow - B/D 790.12 844.18 6.8% 1.00Widow - B Only 827.12 883.77 6.8% 1.00 935.11 986.31 5.5% 1.00 1409.73 1460.93 3.6% 1.00Widow - A/B/D 626.12 668.70 6.8% 1.00Widow - A&B 663.12 708.29 6.8% 1.00 650.21 677.34 4.2% 1.00 983.60 1010.73 2.8% 1.00Widow - None (>65) 958.12 1023.94 6.9% 1.00

PPO HEALTH PLANS Attachment 2

PLAN

ANTHEM BLUE

CROSS LIFE and

HEALTH MEDICARE

PLAN

ANTHEM MEDICARE

ADVANTAGE PPO

Member Only N/A N/A

Two-Party N/A N/A

Family N/A N/A

Member w/AB&D $542.51 $484.90

Member + 1, both AB&D $1,080.42 $943.96

Family: Member + 1, both

AB&D; Dependent NoneN/A N/A

NETWORK →

BENEFIT

Anthem Network

Benefits

Non-Network

Benefits

Medicare

Supplement Plan

Anthem Prudent

Buyer NetworkAll Other Providers PPO Network

Non-Network

Providers

Anthem Prudent

Buyer Network All Other Providers

Anthem Prudent

Buyer PPO

Non-Network

Providers

Anthem Network

National Access

Plus In and Out-of-

Network Providers

Deductible Medicare Part B

deductible

$350 Individual

$700 Family

$750 Individual

$1,500 Family

$300 Individual

$900 Family

$300 Individual $900

Family$100

Out-of-Pocket Maximum Not Applicable$2,000 Individual

$4,000 FamilyNone

$2,000 Individual

$6,000 Family

$4,000 Individual

$12,000 Family

$1,000 Individual

$3,000 Family

$6,000 Individual

$18,000 Family

$2,700 Individual

$5,000 Family

$5,000 Individual

$10,000 Family$3,400*

Physician Office Visits +$20 copayPlan pays 70% after

deductible

Plan pays 20% after

deductible $15 copay $30 copay Plan pays 90%

Plan pays 70% of

UCR$15 copay

$15 copay after

deductible

10% after

deductible

30% after

deductible

$10 copay after

deductible, ($25

copay, specialist)

Urgent Care CentersPlan pays 20% after

deductible$15 copay $30 copay Plan pays 90%

Plan pays 70% of

UCR$15 copay

$15 copay after

deductible

10% after

deductible

30% after

deductible$25 copay

Emergency Care

(Copay waived if

admitted)

Plan pays 20% after

deductible w/in US

or while traveling

$100 copay; then

100%

$100 copay; then

100%

$75 copay/visit

(waived if

admitted)

Inpatient Hospital

Room and Board

Plan pays 90% after

deductible

Plan pays 80% Usual

& Customary Rates

(UCR) after

deductible

Plan pays Medicare

part A deductible &

current per-day

deductible from

61st - 90th day

$250 deductible,

Plan pays 90% for 1st

$5,000, then 100%

$250 deductible

applies,

then Plan pays 70%

of UCR

Plan pays 90%Plan pays 70% of

UCR

Plan pays 90% after

deductible

Plan pays 60% after

deductible

10% after

deductible

30% after

deductible

$0 copay after

deductible

Outpatient Surgery

Center - Facility

+Plan pays 90%

after deductible

+Plan pays 70% UCR

after deductible

Plan pays 20% after

deductible

$15 copay; then

100%

$30 copay, then

80% of UCR, up to

$2,780

Plan pays 90%

Plan pays 70% of

UCR

($350 maximum)

Plan pays 90% after

deductible

Plan pays 60% after

deductible

10% after

deductible

30% after

deductible

$0 copay after

deductible

Lab/X-Ray

Plan pays 90% after

deductible; w/Part

B, Plan pays 100%

Plan pays 70% UCR

after deductible;

w/Part B, Plan pays

100%

Plan pays 20% after

deductible Plan pays 100%

Plan pays 100% of

UCRPlan pays 90%

Plan pays 70% of

UCRPlan pays 100%

Plan pays 60% after

deductible

10% after

deductible

30% after

deductible

$25 copay after

deductible

Plan pays 90%Plan pays 70% of

UCR

Mental Health /

Substance Abuse - I/P

Plan pays 90% after

deductible

Plan pays 80% Usual

& Customary Rates

after deductible

Plan pays Medicare

part A deductible &

current per-day

deductible from

61st - 90th day

$250 deductible,

Plan pays 90% for 1st

$5,000, then 100%

$250 deductible

applies,

then Plan pays 70%

of UCR

Plan pays 90% Plan pays 70%Plan pays 90% after

deductible

Plan pays 60% after

deductible

10% after

deductible

30% after

deductible

$0 copay after

deductible

Physical and

Occupational Therapy

Un

de

r 6

56

5+

Me

dic

are

$1,762.89

$957.80

$2,131.61

$2,496.89

$590.80

$1,397.61

$1,658.56

$2,100.16

$668.70

$948.08

$1,389.68

*$542.51

LAPRA

LAFRA PPO MEDICAL PLAN ANTHEM BLUE CROSS PRUDENT BUYER PPO

$1,023.94

24 visits per year max

$30 copay$15 copay

LAFRA

Plan pays 90% after a $150 copay

ANTHEM BLUE CROSS PPO

$1,270.81

$2,537.02

$2,988.44


$2,179.82

$2,452.30

$1,010.73

$2,130.87

$2,358.88

$1,804.32

$100 copay; plan pays 90% after 10%

coinsurance

Plan pays 90% after

deductible

Plan pays 60% after

deductible

Plan pays 90%;

w/Part B, Plan pays

20% after

deductible

Plan pays 70% UCR

after deductible;

w/Part B, Plan pays

20% after

deductible

$250 Individual

(applies to non-emergency inpatient

admissions)

N/A

N/A

+Plan pays 90% after deductible

+Plan pays 90% after deductible

*$1080.42

*$1531.84

+$750 Individual

$1500 Family

$5,000 Individual

N/A Family

Deductible excluded

LACERS

Plan pays 20% after

deductible

$25 copay after

deductible

UFLAC

$1,500 Individual/ $2,700 Individual on a

family plan/ $3,000 Family

10% after deductible

ANTHEM BLUE CROSS PPO HIGH-

DEDUCTIBLE HEALTH PLAN

$1,158.89

$1,275.39

$1,325.39

N/A

10% after

deductible

30% after

deductible

PPO HEALTH PLANS Attachment 2

PLAN

ANTHEM BLUE

CROSS LIFE and

HEALTH MEDICARE

PLAN

ANTHEM MEDICARE

ADVANTAGE PPO

Member Only N/A N/A

Two-Party N/A N/A

Family N/A N/A

Member w/AB&D $542.51 $484.90

Member + 1, both AB&D $1,080.42 $943.96

Family: Member + 1, both

AB&D; Dependent NoneN/A N/A

NETWORK →

BENEFIT

Anthem Network

Benefits

Non-Network

Benefits

Medicare

Supplement Plan

Anthem Prudent

Buyer NetworkAll Other Providers PPO Network

Non-Network

Providers

Anthem Prudent

Buyer Network All Other Providers

Anthem Prudent

Buyer PPO

Non-Network

Providers

Anthem Network

National Access

Plus In and Out-of-

Network Providers

Un

de

r 6

56

5+

Me

dic

are

$1,762.89

$957.80

$2,131.61

$2,496.89

$590.80

$1,397.61

$1,658.56

$2,100.16

$668.70

$948.08

$1,389.68

*$542.51

LAPRA

LAFRA PPO MEDICAL PLAN ANTHEM BLUE CROSS PRUDENT BUYER PPO

$1,023.94

LAFRA


$1,270.81

$2,537.02

$2,988.44


$2,179.82

$2,452.30

$1,010.73

$2,130.87

$2,358.88

$1,804.32

N/A

N/A

*$1080.42

*$1531.84

LACERS UFLAC

ANTHEM BLUE CROSS PPO HIGH-

DEDUCTIBLE HEALTH PLAN

$1,158.89

$1,275.39

$1,325.39

N/A

Mental Health /

Substance Abuse - O/P

$20 copay; w/Part

B, Plan pays 50%

after deductible

Plan pays 70% UCR

after deductible;

w/Part B, Plan pays

50% after

deductible

Plan pays 20% after

deductible$15 copay $30 copay Plan pays 90%

Plan pays 70% of

UCR$15 copay

$15 copay after

deductible

10% after

deductible

30% after

deductible

$25 copay after

deductible

Prescription Drugs

Formulary Yes Yes**

Generic Copay

$5 copay Retail/

$10 copay Mail

Order*

$10 copay after

deductible

$10 copay; ($0

copay, Select

Generics), Retail / $20

copay; ($0 copay,

Select Generics), Mail

Brand Copay

$25 copay Retail/

$50 copay Mail

Order

$30 copay after

deductible

$20 copay, Retail/

$40 copay, Mail

Non-Formulary$50 copay Retail/

$100 copay Mail

$50 copay after

deductible

SpecialtyContact Plan for

details

20% coinsurance up

to $150 maximum

50% coinsurance up

to $250 maximum

30% after

deductible, $150

maximum

Not covered

Retail Up to 30-day supply 30-day supply

MailUp to 90-day

supply**

90-day supply; $60

copay Brand; $100

Brand Non-Formulary;

30% up to $300

specialty

Not covered up to 90-day supply

Notes *Out-of-pocket

maximum does not

apply to Rx

**Premier Formulary is

used

Yes

20% copay; $150 maximum

Same as above; ($200 max copay for 30-

day supply; $600 max copay for 3-mos

supply)

The greater of 20% or $25 ($300 max

copay)$40

$10 copay 30-day retail; $20 copay 90-

day retail or mail$15

The greater of 20% or $10 ($300 max

copay)*$25

Yes

Prescription drug out-of-pocket max:

$4,850 individual / $7,700 family

Prescription drug out-of-pocket max:

$5,900 individual / $11,800 family

$45 (+50% coinsurance, non-network )

Yes

$30 (+ 50% coinsurance, non-network )

$10 (+ 50% coinsurance, non-network )

30-day supply

+Retirees w/Medicare Part B pay the

Medicare Part B deductible. Office visits

and physician services, Plan pays 20%

after deductible

$30 copay Retail; $60 copay Mail Order


20% coinsurance; maximum copay $100

30-day supply

90-day supply

Yes


30-day supply (up to 90-day supply for

maintenance medications)

30-day supply; (90-days for maintenance

drugs)

90-day supply 90-day supply

For certain injectable drugs (except

insulin) a different copayment may be

required.

* $0 copay for Select

Generics (Retail &

Mail Orders)

** All mail order

prescriptions must be

ordered through

medical plan's mail

order vendor or

participating

pharmacy directory.

Certain injectible

drugs (except insulin)

a different

copayment may be

required.

$40 copay,

Retail/$80 copay

Mail

*Mandatory generic provision - (member

pays the difference in cost between

Brand and Generic if member chooses a

Brand when a generic-equivalent is

available)

- Closed to new enrollment -

90-day supply; $60 copay for Brand; $90

copay for Brand, Non-Formulary; 20% up

to $300 specialty

30-day supply

Yes

30% after

deductible up to

$250 per

prescription

Non-Medicare PPO

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 970.75 0.00 970.75 100.0 0.0 957.80 0.00 957.80 100.0 0.0

LAFRA 958.12 0.00 958.12 100.0 0.0 1,023.94 0.00 1,023.94 100.0 0.0

UFLAC 1,706.66 0.00 1,706.66 100.0 0.0 1,804.32 0.00 1,804.32 100.0 0.0

UFLAC HDHP 1,061.23 0.00 1,061.23 100.0 0.0 1,158.89 0.00 1,158.89 100.0 0.0

LAFPP 1,270.81 0.00 1,270.81 100.0 0.0 1,270.81 0.00 1,270.81 100.0 0.0

Average 100.0% 0.0% Average 100.0% 0.0%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,725.39 (438.82) 2,164.21 79.7 20.3 1,820.29 (311.32) 2,131.61 85.4 14.6

LAFRA 1,551.22 0.00 1,551.22 100.0 0.0 1,658.56 0.00 1,658.56 100.0 0.0

UFLAC 1,725.39 (356.77) 2,082.16 82.9 17.1 1,820.29 (359.53) 2,179.82 83.5 16.5

UFLAC HDHP 1,653.20 0.00 1,653.20 100.0 0.0 1,275.39 0.00 1,275.39 100.0 0.0

LAFPP 1,725.39 (811.63) 2,537.02 68.0 32.0 1,820.29 (716.73) 2,537.02 71.7 28.3

Average 86.1% 13.9% Average 88.1% 11.9%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,725.39 (810.05) 2,535.44 68.1 31.9 1,820.29 (676.60) 2,496.89 72.9 27.1

LAFRA 1,725.39 (238.54) 1,963.93 87.9 12.1 1,820.29 (279.87) 2,100.16 86.7 13.3

UFLAC 1,725.39 (629.25) 2,354.64 73.3 26.7 1,820.29 (632.01) 2,452.30 74.2 25.8

UFLAC HDHP 1,651.42 0.00 1,651.42 100.0 0.0 1,325.39 0.00 1,325.39 100.0 0.0

LAFPP 1,725.39 (1,263.05) 2,988.44 57.7 42.3 1,820.29 (1,168.15) 2,988.44 60.9 39.1

Average 77.4% 22.6% Average 78.9% 21.1%

Family PPO


Single-Party PPO


Two-Party PPO



Attachment 3

Medicare PPO

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 542.51 (55.24) 597.75 90.8 9.2 542.51 (48.29) 590.80 91.8 8.2

LAFRA 542.51 (83.61) 626.12 86.6 13.4 542.51 (126.19) 668.70 81.1 18.9

UFLAC 542.51 (441.09) 983.60 55.2 44.8 542.51 (468.22) 1,010.73 53.7 46.3

UFLAC HDHP 412.73 0.00 412.73 100.0 0.0 421.98 0.00 421.98 100.0 0.0

UFLAC Med A 484.90 0.00 484.90 100.0 0.0 484.90 0.00 484.90 100.0 0.0

LAFPP 542.51 0.00 542.51 100.0 0.0 542.51 0.00 542.51 100.0 0.0

Average 88.8% 11.2% Average 87.8% 12.2%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,485.15 (306.06) 1,791.21 82.9 17.1 1,590.00 (174.61) 1,764.61 90.1 9.9

LAFRA 1,135.61 (83.61) 1,219.22 93.1 6.9 1,177.13 (126.19) 1,303.32 90.3 9.7

UFLAC 1,566.34 (441.09) 2,007.43 78.0 22.0 1,662.65 (468.22) 2,130.87 78.0 22.0

UFLAC HDHP 633.89 0.00 633.89 100.0 0.0 665.83 0.00 665.83 100.0 0.0

LAFPP 997.09 (811.63) 1,808.72 55.1 44.9 1,808.72 0.00 1,808.72 100.0 0.0

Average 81.8% 18.2% Average 91.7% 8.3%

PLAN

LAFPP

Subsidy

Member's


LAFPP

Subsidy

Member's


LAPRA 1,362.97 (55.24) 1,418.21 96.1 3.9 1,349.32 (48.29) 1,397.61 96.5 3.5

LAFRA 803.61 (83.61) 887.22 90.6 9.4 821.89 (126.19) 948.08 86.7 13.3

UFLAC 1,566.34 (441.09) 2,007.43 78.0 22.0 1,662.65 (468.22) 2,130.87 78.0 22.0

UFLAC HDHP 633.89 0.00 633.89 100.0 0.0 665.83 0.00 665.83 100.0 0.0

UFLAC Med A 943.96 0.00 943.96 100.0 0.0 943.96 0.00 943.96 100.0 0.0

LAFPP 997.09 (83.33) 1,080.42 92.3 7.7 1,080.42 0.00 1,080.42 100.0 0.0

Average 92.8% 7.2% Average 93.5% 6.5%

Two-Party PPO: Member and Spouse, Both Medicare A&B&D


Single-Party PPO: Member Medicare A&B&D


Two-Party PPO: Member Medicare A&B&D, Spouse Non-Medicare



Attachment 3

ATTACHMENT 4

APPROVAL OF THE LOS ANGELES FIREMEN’S RELIEF ASSOCIATION FIRE MEDICAL

PPO PLAN


RESOLUTION ________________















(Contract); and













of the Contract and include the Firemen’s Relief Association Fire Medical PPO plan; and


regarding the Los Angeles Firemen’s Relief Association Fire Medical PPO plan, as required by

Article 3.2(d) of the Contract; and



ATTACHMENT 4



Fire Medical PPO plan and, consistent with its legal authority under the Charter and Administrative

Code and its fiduciary duties, has determined that for the plan year commencing on July 1, 2019

through June 30, 2020, the Los Angeles Firemen’s Relief Association Fire Medical PPO plan is

approved as a suitable plan eligible to receive LAFPP subsidies.



Association will be a percentage of Los Angeles Firemen’s Relief Association Fire Medical PPO

plan expenses and will be included as part of the monthly premium.



eligible and enrolled in the Los Angeles Firemen’s Relief Association Fire Medical PPO plan,






Raymond P. Ciranna

General Manager

ATTACHMENT 5


CROSS PPO PLAN AS A SUITABLE PLAN ELIGIBLE FOR SUBSIDIES

RESOLUTION ________________




























Appendix C of the Contract and include the Police Relief Association Anthem Blue Cross PPO

plan; and


regarding the Los Angeles Police Relief Association Anthem Blue Cross PPO plan, as required


WHEREAS, although the Board was able to reconcile most of the difference in renewal

calculations for the Los Angeles Police Relief Association Anthem Blue Cross PPO plan

premiums, the Board concluded that additional premium decreases could have been achieved for

the upcoming plan year; and

ATTACHMENT 5

WHEREAS, the Board recognizes the plan design changes Los Angeles Police Relief

Association has made to achieve cost savings and more equitable cost-sharing in the Anthem

Blue Cross PPO plan; and

WHEREAS, the Board shall review the suitability of the Anthem Blue Cross PPO plan on

an annual basis.



Anthem Blue Cross PPO plan and, consistent with its legal authority under the Charter and



Cross PPO plan is approved as a suitable plan eligible to receive LAFPP subsidies.






eligible and enrolled in the Los Angeles Police Relief Association Anthem Blue Cross PPO plan,






Raymond P. Ciranna

General Manager

ATTACHMENT 6


CROSS PPO PLAN


RESOLUTION ________________















(Contract); and





design, premiums, or administrative fees related to its health plans; and if reasonably available to









Cross PPO plan; and







ATTACHMENT 6





regarding the United Firefighters of Los Angeles City Anthem Blue Cross PPO plan, as required






Anthem Blue Cross PPO plan and, consistent with its legal authority under the Charter and


on January 1, 2019 through December 31, 2019, the United Firefighters of Los Angeles City

Anthem Blue Cross PPO plan is approved as a suitable plan eligible to receive LAFPP subsidies.






eligible and enrolled in the United Firefighters of Los Angeles City Anthem Blue Cross PPO plan,






Raymond P. Ciranna

General Manager

ATTACHMENT 7

APPROVAL OF THE UNITED FIREFIGHTERS OF LOS ANGELES CITY ANTHEM HEALTH

SAVINGS ACCOUNT/HIGH DEDUCTIBLE HEALTH PLAN


RESOLUTION ________________















(Contract); and













Appendix C of the Contract and include the United Firefighters of Los Angeles City Anthem Health

Savings Account/High Deductible Health Plan; and







ATTACHMENT 7





regarding the United Firefighters of Los Angeles City Anthem Health Savings Account/High

Deductible Health Plan, as required by Article 3.2(d) of the Contract; and





Anthem Health Savings Account/High Deductible Health Plan and, consistent with its legal

authority under the Charter and Administrative Code and its fiduciary duties, has determined that

for the plan year commencing on January 1, 2019 through December 31, 2019, the United

Firefighters of Los Angeles City Anthem Health Savings Account/High Deductible Health Plan is

approved as a suitable plan eligible to receive LAFPP subsidies.






eligible and enrolled in the United Firefighters of Los Angeles City Anthem Health Savings

Account/High Deductible Health Plan, subject to the limits described in Board Operating Policy

8.2, and consistent with the Charter and Administrative Code and other applicable laws.




Raymond P. Ciranna

General Manager

ATTACHMENT 8

APPROVAL OF THE UNITED FIREFIGHTERS OF LOS ANGELES CITY ANTHEM MEDICARE

ADVANTAGE PPO PLAN


RESOLUTION ________________















(Contract); and













Appendix C of the Contract and include the United Firefighters of Los Angeles City Anthem

Medicare Advantage PPO plan; and


regarding the United Firefighters of Los Angeles City Anthem Medicare Advantage PPO plan, as




ATTACHMENT 8



Anthem Medicare Advantage PPO plan and, consistent with its legal authority under the Charter



Angeles City Anthem Medicare Advantage PPO plan is approved as a suitable plan eligible to







eligible and enrolled in the United Firefighters of Los Angeles City Anthem Medicare Advantage

PPO plan, subject to the limits described in Board Operating Policy 8.2, and consistent with the





Raymond P. Ciranna

General Manager



(213) 279-3000


DATE: MAY 16, 2019 ITEM: A.6 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APPROVAL OF TRAVEL AUTHORITY (CIRANNA AND SALAZAR) – IFEBP, 65TH

ANNUAL EMPLOYEE BENEFITS CONFERENCE

RECOMMENDATION That the Board approve: 1) Raymond Ciranna and Joseph Salazar to attend the International Foundation of Employee

Benefit Plans (IFEBP), 65th Annual Employee Benefits Conference on October 20-23, 2019 at San Diego, CA (October 20th is a travel day);

2) The use of current fiscal year funds (FY19) to pay the registration fee only, and acknowledge this is not consistent with the Controller’s Office Policy since the travel will occur next fiscal year (FY20); and,

3) The use of next fiscal year funds (FY20) to pay the balance of the travel, consistent with the

Controller’s Office Policy. DISCUSSION If approved, Raymond Ciranna and Joseph Salazar will attend the following conference: Conference: 65th Annual Employee Benefits Conference Sponsor: International Foundation of Employee Benefit Plans Dates: October 20-23, 2019 Mode of Transportation: Personal vehicle This conference is well attended and conference hotel accommodations generally sell out well in advance of the conference dates. As such, approving the use of current Fiscal Year 2018-19 (FY19) funds to pay for the registration fees would allow staff to reserve conference hotel accommodations before the next Fiscal Year 2019-20 (FY20) begins. (The registration fee includes a $400.00 deposit for the hotel accommodations.) In July 2014, the City Controller delegated almost all travel payment functions to City Departments, including LAFPP, which has reduced the processing time for travel reimbursements. With this delegation, however, it is incumbent upon staff to ensure the payments are processed pursuant to the LAFPP adopted travel policies and the Controller’s expenditures policies. Since using FY19 funds to pay for travel that will occur in FY20 is not consistent with the Controller’s expenditures


policy, staff is recommending the Board approve this action separately in the event the City Controller audits the administration of LAFPP’s travel expenditures in the future. This separate Board approval will ensure using funds in this manner does not result in a non-compliance Finding by the Controller’s Office during audit. The Board’s Travel Policy is silent on this funding issue, but staff believes using funds in this manner is appropriate in this situation. BUDGET Sufficient funds are available in the Fiscal Year 2018-19 Travel Account for the registration fee. Listed below is an estimated cost to travel: Estimated cost for Raymond Ciranna: Registration $1,595.00 Hotel 1,090.98 Per Diem 213.00 Incidentals (hotel parking) 105.00 TOTAL $3,003.98 Estimated cost for Joseph Salazar: Registration $1,595.00 Hotel 719.40 Per Diem 213.00 Incidentals (mileage, hotel parking) 204.10 TOTAL $2,731.50 POLICY If approved by the Board, the proposed expenditures would be within the Board’s Travel and Education Policy. The Board separately approving the use of funds that cross fiscal years will ensure this will not result in a non-compliance Finding in a City Controller audit. Information regarding the conference is contained in the attached 2019 agenda. This report was prepared by: Martha Martinez, Executive Administrative Assistant Executive Section RC:WSR:MM Attachment: 2019 Conference agenda

14935

Typewritten Text

Attachment

Dear Member,

As the 2019 President and Chair of the International

Foundation, I would like to personally invite you to

attend the 65th Annual Employee Benefits Conference

in San Diego, California.

This one-of-a-kind conference is the must-attend event for

anyone working with multiemployer and public employee

benefit plans. By attending, you will have the opportunity

to choose from over 100 relevant and thought-provoking

sessions presented by experts in the benefits field. Over the

course of the conference, you'll have opportunities to network

with more than 5,000 trustees, administrators and advisors.

I have attended this conference for years and consistently walk

away with thoughtful resources and the information I need to

address the critical issues and upcoming trends that impact my

funds. I encourage you to attend and experience this yourself

Make your reservations today to join me at the 65th Annual

Employee Benefits Conference October 20-23, 2019. I look

forward to seeing you there.

Sincerely,

Gene H. Price

President and Chair of the Board

International Foundation of

Employee Benefit Plans

ANNUAL EMPLOYEE BENEFITS CONFERENCE October 20-23, 2019 I San Diego, Ca lifornia San Diego Convention Center Preconference: October 19-20, 2019

The decisions you make as a fiduciary have a long-lasting impact on the lives of your plan participants. Making educated and forward-thinking decisions is key to the health of the funds you serve.

Be part of the nation's premier employee benefits conference by attending the 65th Annua l Employee Benefits Conference. Your source for objective, timely and relevant education, the Annual Conference provides proven solutions that address the critical issues and upcoming trends impacting your ro le today. Don't miss the largest event of its kind!

To enhance your educational experi.ence, sessions have been divided into 11 key topic areas.

• Administration

• Fiduciary Responsibil ity

• General Topics

• Health and Welfare

• Investments

• Pensions

• Public Plans

• Retirement Security/ Financ ial Education

• Fund Advisors-Atto rn eys

• Apprenticeship, Tra ining and Education

• Fund ProfessionalsAccountants

• Secure a solid understanding of pressing issues impacting today's multiemployer and public sector health and wellness and pension plans.

• Develop new ways of thinking and alternative solutions that could translate to hard-dollar cost savings.

• Find out how other funds are tackling issues similar to your own, and discuss what worked and what didn't.

• Uncover upcoming trends you need to prepare your funds for, and discover how and why!

HOTEL INFORMATION We want you to have the best experience possible while attending at the Annua l Conference. That's why we have negotiated special. discounted rates at a number of premier hotels for our attendees. Please see below for 2019 hotel choices.

Harbor Island

0 Andaz San Diego IF Block 1 DD I $269 sing le/double

0 Hard Rock Hotel San Diego IF Block 25D I $285 studio/$299 suite single/double

e Hilton San Diego AirporVHarbor Island* IF Block 1 DD I $239 sing le/double

G Hilton San Diego Bayfront* IF Block 10DD I $279 standard/$299 premium/bayview

0 Hilton San Diego Gaslamp Quarter IF Block 15D I $285 single/double

0 Hotel del Coronado* IF Block 35D I $319 plus $20 dai ly resort fee single/double

0 Hotel Indigo San Diego Gaslamp Quarter IF Block 100 I $259 sing le/double

0 Hotel Republic San Diego* IF Block 165 I $259 single/double

0 Kimpton Solamar Hotel IF Block 100 I $259 single/double

4D Loews Coronado Bay Resort* IF Block 125 I $254 single/double

4D Manchester Grand Hyatt San Diego IF Block 50 I $319 single/double

4D Marriott Marquis San Diego Marina IF Block 225 I $299 single/double

4D Omni San Diego Hotel IF Block 400 I $277 single/double

4D San Diego Marriott Gaslamp Quarter IF Block 20D I $275 single/double

e Sheraton San Diego Hotel & Marina IF Block 40D I $239 sing le/double

0 THE US GRANT IF Block 15D I $299 single/double

4D The Westin San Diego IF Block 30D I $258 single/double

'° The Westin San Diego Gaslamp Quarter* IF Block 30D I $262 single/double

G> Wyndham San Diego Bayside* IF Block 3DD I $199 single/double

San Diego Convention Center

* Union properties

Hotel rates include a $10 nightly per room transportation fee. Taxes and other fees are not included in room rate.

San Diego Bay

Embarcadero P1rkNorth

Coronado Island

, '~ 'CJ~~;( (]:

'•• t I

r""i~ .

( ~

Embarcadero Part South

New cancellation policies effective for 2019 education programs

Cancel and transfer fees are based on registration fee paid: 60+ days before meeting is 10%; 31-59 days before meeting is 25%; within

30 days of meeting is 50%. Hotel deposit is forfeited for cancellations/transfers rece ived within 3 days (5 days for Disney properties) of arrival. Registration fee is forfeited once program commences. For detail s, see www.ifebp.org/policies.

REGISTRATION/2019 65th Annual Employee Benefits Conference (01-1901)

International Foundation OF EMPLOYEE BENEFIT PLANS

Attendee lnfonnation (Please print clearly) Source code 1901 A

Individual ID# or CEBS® ID# ____________________________________________ _

Full first name ___________ __________ _ M.I. ____ Last name --------------------Employer _________________ _____ _

Title ---- ------------- -----------Address _______________ ____________________________ _ 0 Busin ess 0 Home Cify _______________________ _ State/Province ____ Country ____ ZIP/Postal code ______ _ Phone _____ ______ _____________________________ _ 0 Business 0 Hom e 0 Mobile E-mail ___ _______________ ___________________________________ _

Form completed by __________ _________ _

Not a Member? Join Now to Attend. Visit www. ifebp.org/join for current rates.

0 Individual $325 0 Organizational $1,050 Members-only conference

Regist ration lnfonnation

Bi ll to organization name ----------------------- Bill to organization ID # _______________ _

Badge name ----------- ---------- Badge title --------------------------

~ Specialas~~ance-specify ---------------------- -----------------------Special dietary requirements-specify __________________ ________________________ _

65th Annual Employee Benefits Conference I October 20-23, 2019 I San Diego Convention Center I San Diego, California (01 -1901)

Conference Registration Fee- Sunday-Wednesday, October 20-23 Until Sept. 8 Members-only conference . . . . ... .. ... ... .. . .... . ... .. .. .. . . .... . . . . ... . . . . .... 0 $1 ,595

Preconference Registration- One-Day Workshop- Saturday OR Sunday, October 19 or 20 Member Saturday Workshop Session # PC ___ . . .... . . . . . . . . . . . . . . . . ...... . . .. ..... . .......... . . . . .... .. . 0 $ 455 Sunday Workshop Session # PC ___ .. . .... . . . . . . . . . . . . . 0 $ 455 PC30 Sunday Lifetime Financial Planning (attendees under 50). . . . . . . . . . . . . . . . . . . . . . . 0 $ 455 PC36 Spouse Registration: Lifetime Financia l Planning (pe rsona l check/credit card) Name

Preconference Registration- Two-Day Workshops-Saturday AND Sunday, October 19 and 20 PC53/54 Lifetime Retirement Planning (attendees over 50) . . . . . . ........ .. ...... 0 $ 910 PC55/56 Spouse/Guest Lifetime Retirement Planning (personal check/credit card) Name

New Trustees Institutes-Saturday-Monday, October 19-21 New Trustees Institute-Level I: Core Concepts Saturday-Monday (0 1-19N8).. . . .. . . .. . . .o $1,515 New Trustees Institute- Level II : Concepts in Practice Saturday-Sunday (01 -19N9) . . .. .. . . ... 0 $1,515

Nonmember 0 $ 565 0 $ 565 0 $ 565 0 $ 30

0 $1 ,130 0 $ 60

0 $1 ,845 0 $1 ,845

Masters Programs-Saturday AND Sunday, October 19 and 20 Each class is limited to 75. Must meet eligibilify requirements. Administrators Masters Program (AMP') (01-19E2). . . . . . . . . . . . .. . . . 0 $1 ,515 0 $1,735 Administrators Masters Program (AMP) for Graduates (01-19E2G) .. . . . . . . . . • . • . . .. . 0 $1, 145 0 $1 ,365 Trustees Masters Program (TMP) (01-19D2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 $1 ,515 0 $1,735 TMPAdvancedleadershipSummit-SundayONLY (01-19D3). . . . . . .. .... .. .. .... . . . ....... .. . ..... 0 $ 760 D $ 870

Certificate of Achievement in Public Plan Policy (CAPPP®)-Saturday AND Sunday, October 19 and 20 D Employee Health Part II (01-1918H) D Employee Pensions Part II (01 -1918P) . . . ......... .. . . . 0 $1 ,150 0 $1 ,370

Hotel

Reservation deadline: September 9, 2019 Include $400 hotel deposit. Visit www.ifebp.org/sandiego for hotel options. Reservations confirmed on a first-come, first·served basis. Best available will be assigned.

#of Adults # of Ch ildren Arrival date _____ De parture date _____ 0 King bed 0 Two beds

1st choice ________ _ 2nd choice 3rd choice 4th choice

After Sept. 8 0 $1 ,895

Member 0 $ 605 0 $ 605 0 $ 605

0 $1 ,210

0 $1 ,815 0 $1 ,815

0 $1 ,815 0 $1 ,445 0 $1 ,815 D $ 910

0 $1 ,450

Nonmember 0 $ 715 0 $ 715 0 $ 715 0 $ 30

0 $1 ,430 0 $ 60

0 $2,145 0 $2,145

0 $2,035 0 $1 ,665 0 $2,035 D $1 ,020

0 $1,670

Special requests ------------- -------------------------------------

Continuing Education Credit

The International Foundation will apply for CE credit based on requests indicated below.

0 Actuary 0 Attorney 0 CFP 0 CIMA 0 CPA 0 HRCI 0 Insurance producer* 0 SHRM 0 Other, specify

Licensed in the state(s) of License/NPN/BAR/CPA # ________ ______ _

0 CEBS Compliance-Visit www.cebs.org/compliance for additional information.

"Preapproval of programs/seminars is required in ALL insurance states. This process can take up to 90 days. Late requests could preclude insurance producers from earning credit NOTE: Requests made for CE credit on this fonn do not guarantee administration of credit

Payment Must Accompany Order

NEW! Policies have changed. See www.ifebp.org/policies. Make check payable ro lnrernational Foundation.

0 Check # ----- ----------------- $ __________ _ Credit card # __________________________ Exp. date ___ _

Cardholder's name (print) -----------------------------

G www.ifebp.org

ED 181607

~ Secu re fax ~ (262)364·1 B1B e International Fou ndation

P.O. Box 6B9954, Chica go, IL 60695·9954

@ Questions, e·mail [email protected], or phone (BBB) 334-3327, opti on 2.

Registration/Order Summary

Membership fee $ ___ _

Confe rence fee $ ___ _

Pre conference/New Trustees fe e $ ___ _

AMP/TMP/CAPPP fee $ __ _

Hotel deposit ($400) $ ___ _

Total (U.S. funds) $ ___ _

(ITT~·) ~~I '· .. , ..... ··

42M· 119



(213) 279-3000

REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS DATE: May 16, 2019 ITEM: A.7 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: PRESENTATIONS BY FINALIST CANDIDATES FOR THE US SMALL CAP CORE

EQUITY SEARCH AND POSSIBLE BOARD ACTION

RECOMMENDATION That the Board:

1. Conduct interviews for the six finalist candidates for the US Small Cap Core equity search; and

2. Select one to two finalist candidates to manage the US Small Cap Core mandate, subject to fee negotiations by Staff.

BACKGROUND The Board approved a search for US Small Cap Core equity managers at the October 18, 2018 meeting with the intent to replace an underperforming manager. The proposed search was designed to split the approximately $400 million that the underperforming manager has under management between two (2) strategies and include a passive S&P 600 Index as an investment option. At the December 20, 2018 meeting the Board approved the minimum qualifications criteria, the qualitative evaluation characteristics and the search procedures. Based on the minimum qualification criteria, the universe of 694 managers was screened down to 109 managers. The group of 109 managers were evaluated for product, volatility and performance. Ten (10) semi-finalists passed the additional screens and were sent comprehensive questionnaires. After reviewing the questionnaires, Staff and RVK conducted phone interviews to better understand the semi-finalists’ firms, teams, strategy, product and fees. Staff and RVK chose six (6) out of the ten (10) firms that would provide a good fit to the LAFPP US Small Cap Core portfolio. At the April 4, 2019 meeting Staff and RVK recommended six (6) firms for interview and sought the Board’s direction on the inclusion of the S&P 600 Index. The Board approved all six (6) firms for interview and a partial allocation to the S&P 600 passive index. The Board has the option to hire more than one active manager.


DISCUSSION The six (6) firms presenting today are as follows:

• Aristotle Capital Boston, LLC (Aristotle)

• ClearBridge Investments, LLC (ClearBridge)

• J.P. Morgan Investment Management Inc. (J.P. Morgan)

• Palisade Capital Management, LLC (Palisade)

• PanAgora Asset Management, Inc. (PanAgora)

• Pacific Investment Management Company, LLC (PIMCO)

The firms will be presenting in alphabetical order. Each firm has been instructed to make a 20-minute presentation and allow time for the Board to ask questions, if so desired. RVK has prepared a memo detailing the manager evaluation process, a summary of each candidate firm, the product and fees each candidate firm is proposing, each firm’s performance and any issue or concerns to consider (Attachment I). BUDGET Approval of these recommendations are not anticipated to have an effect on LAFPP’s annual budget as costs associated with the search have already been projected and included in the budget. POLICY Approval of recommendations will have no policy impact. CONTRACTOR DISCLOSURE INFORMATION LAFPP received the required disclosure information regarding gifts, campaign contributions, charitable contributions, intermediaries and contacts. Internal Audit Section reviewed the provided information and determined there was nothing to report under the Contractor Disclosure Policy. This report was prepared by: Nathaniel Chang, Investment Officer Investments Division RPC:TL:PGP:NC Attachment I – RVK Memo, US Small Cap Core Finalists Recommendation Attachment II – Aristotle Presentation Materials Attachment III – ClearBridge Presentation Materials Attachment IV – J.P. Morgan Presentation Materials Attachment V – Palisade Presentation Materials Attachment VI – PanAgora Presentation Materials Attachment VII – PIMCO Presentation Materials



(213) 279-3000

REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS DATE: MAY 16, 2019 ITEM: B.2.a FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APRIL 2019 MONTHLY REPORT AND UPDATE

THIS REPORT IS PROVIDED FOR INFORMATIONAL PURPOSES

DISCUSSION The April 2019 Monthly Report includes the following notable items:

1) MyLAFPP Redesign – The member self-service web portal is being redesigned as part of the

implementation of the new pension administration system. The functionality of the site is being tested by staff and staff has committed to “Go-Live” by Spring 2019.

2) Pension Administration Benchmarking – CEM Benchmarking, Inc. (Cost Effectiveness

Measurement) was authorized by the Board to perform an objective benchmarking analysis of the performance and administrative cost of the Plan. Staff has been working with CEM to finalize the results by early May, and the presentation of the results to the Board has moved from May 16, 2019 to June 6, 2019.

3) 2019 Police Department Retired Member Board Election – On February 7, 2019 the Board approved an Election date of April 23, 2019. Ballot counting took place on April 25, 2019 and no candidate received a majority of the votes cast. As such, the Office of the City Clerk has scheduled a runoff election on Friday, May 31, 2019 between the two candidates receiving the highest number of votes cast. The candidates who received the highest number of votes are Garrett W. Zimmon (49.4% of votes cast) and Don Keith (21.9% of votes cast).

May 16, 2019 The Office of the City Clerk mails out ballots to eligible voters.

May 28, 2019 Deadline for candidates to submit an Observers List to the Office of the City Clerk by 5:00 p.m.

May 31, 2019 Runoff Election Day. All ballots must be received by the Office of the City Clerk – Election Division, by 5:00 p.m., in order to be counted.

June 3, 2019 Ballot counting will take place at the Office of the City Clerk – Election Division in the presence of observers designated by each candidate.

June 20, 2019 Date of Board Report – Runoff Election Results.

July 1, 2019 New Police Department Retired Member of the Board term begins.


4) Pension Administration System – PARIS went live in January and has successfully processed four monthly Pension Rolls. Staff continues to work with the vendor to address issues and needed enhancements, and on functionality that was intentionally deferred until after the Go-Live implementation. Additionally, staff continues to work on the next phases of the project which are:

• Phase 4C – Member Self-Service: Three builds for this phase have been received and staff continues to test this functionality, and to refine the security requirements for online self-service registration. Staff expects to implement the web-portal in Spring 2019 that will again allow for member self-service.

• Phase 4B – Document Imaging and Workflow Implementation: The General Manager has pushed back this final phase of the project from June 30, 2019 to December 31, 2019. This will allow the project team to focus on critical fixes and reporting needs in the core system that was delivered as part of Phase 4A, and to focus on timely deployment of Phase 4C.

The following searches and firms are within the Marketing Cessation Period Policy*:

Vendor / Contract

Contract Start Date

Contract Expiration

Date

Market Cessation Start Date

Small Cap Equity TBD TBD 12/20/2018

Brandes Investment Partners, LP (International Equity)

TBD 07/31/2019 02/15/2019

Fisher Asset Management, LLC (International Equity)

TBD 07/31/2019 02/15/2019

*Marketing Cessation: In accordance with Section 9.0 of the Investment Policy, from the time the search begins with the Board’s

approval of the minimum criteria for the search until the search ends with the selection of the firm(s) to receive contract(s), all direct marketing contact with firms that meet the search criteria will be limited to meetings with the Consultant, information sent to the Consultant or Department, questions about the search directed to the Staff or Consultant, one meeting at the Department’s office with Staff and any site visits. The Board members, Department Staff or Consultant will accept no entertainment or gifts of any kind from any firm qualifying for the search. This policy does not prohibit contact with potential interview candidates at group social events, educational seminars, conferences, or charitable events so long as there is no direct marketing. During the three months prior to the renewal of a contract with a firm currently under contract, the Board Members, Department Staff and Consultant will accept no entertainment or gifts from that firm until the contract has been renewed or terminated by the Board. Firms who currently have contracts with LAFPP are allowed to continue contact related to the existing contract with Staff and the Consultant.

Attachment

Item: B.2.a

MONTHLY REPORT

April 2019

STATUS REPORT OF BOARD ASSIGNMENTS TO STAFF

05/16/19

MEETING

DATE

ASSIGNMENT

STAFF

PERSON

DATE DUE

TO THE BOARD

STATUS

07/19/18

Requested an emerging managers review presentation by RVK.

Tom Lopez

June 2019

RVK presented an overview of the program on 4/4/19. The next presentation is scheduled for June.

10/18/18 Transactional Costs Tom

Lopez August 2019

Staff and RVK will provide a report by the end of August 2019.

11/01/18 Mental Health Issues Impacting Pensions

Greg Mack

TBD Staff researching possible presenters.

02/21/19

Summary of Workers Comp claim statuses and impacts on Disability Pensions

Kristen Rosauer

July 2019

Staff is discussing this issue with stakeholders and will provide an informational report to the Board at a future date.

05/02/19

Discussion of health plan premium levels (1-party, 2-party, family coverage)

Eunice Zordilla

June 2019

Staff and USI will provide an informational report in June 2019.

05/02/19 Criteria for Adopting Increases to non-Medicare Health Subsidy

Greg Mack

August 2019

This item was first considered in May 2013 and again in November 2018. Staff will prepare another report on this topic for consideration at an upcoming meeting.

1

A

EQUITIES STOCKS BONDS CASH TOTAL ALLOC. PRIVATE EQUITY BONDS CASH TOTAL ALLOC.

AllianceBernstein (S&P 500 Index) 1,810.4 - 3.3 1,813.7 Abbott Capital 22.9 - - 22.9

AllianceBernstein (Systematic Value) 539.4 - 2.1 541.6 Hamilton Lane 3.5 - - 3.5

AllianceBernstein (Russell 1000 Growth Index) 1,278.2 - 2.7 1,280.9 PCA 17.6 - - 17.6

LA Capital (Enhanced Index-Growth) 435.6 - 1.6 437.2 Fairview Capital 17.5 - - 17.5

NTI S&P 500 Equal Weight 820.0 - 6.4 826.4 Portfolio Advisors 1,902.9 - - 1,902.9

NTI Stoxx USA 900 472.1 - 4.2 476.3 Aldus Equity 148.4 - - 148.4

Boston Partners (Value) 371.9 - 5.1 377.0 TCP 16.6 - - 16.6

Redwood Investments (Large Cap-Core) 34.6 - 1.6 36.2 Stepstone Group 95.7 - - 95.7

Terminated Domestic Equity Managers - - 0.1 0.1 TOTAL PRIVATE EQUITY MGRS (12%) 2,225.1 - - 2,225.1 9.63%

Core Equity Managers (23%) 5,762.3 - 27.1 5,789.4 25.06% Target Differential (2.37)% (547.4)

Target Differential 2.06% 475.5

REAL ESTATEFrontier Capital Mgt. (Growth) 514.4 - 6.4 520.8 AllianceBernstein Global REIT 119.7 - 0.5 120.2

Daruma Capital Mgt. (Core) 373.7 - 33.1 406.8 Principal Global REIT 199.2 - 0.7 199.9

Channing Capital Mgt. (Core) 68.9 - 1.1 70.0 Principal U.S. REIT 183.4 - 1.7 185.0

Phocas Financial (Value) 65.8 - 1.7 67.5 Cohen & Steers U.S. REIT 191.8 - 3.2 195.0

Westwood Management (Value) 225.6 - 7.2 232.7 Terminated REIT Managers - - - -

AllianceBernstein (Value) 216.8 - 4.9 221.7 REIT Managers (3.0%) 694.0 - 6.1 700.0 3.03%

Terminated Small Cap Equity Managers - - - -

Small Cap. Equity Mgrs (6%) 1,465.1 - 54.4 1,519.5 6.58% Target Differential 0.03% 6.9

Target Differential 0.58% 133.2 REAL ESTATE COMMINGLED FUNDS SUMMARY

Total Pooled Funds 774.5 - - 774.5 3.35%

Brandes Investment Partners (Value) 944.4 - 72.2 1,016.7 REAL ESTATE SEPARATE ACCT. SUMMARY BY MANAGER

Fisher Asset Mgt. (Core) 512.0 - 10.7 522.7 AEW (Heitman, Sentinel) 419.9 - - 419.9

Blackrock (Core Passive) 832.9 - 5.4 838.2 Neptune Building 33.3 - - 33.3

Baille Gifford (Growth) 705.8 - 12.9 718.7 Real Estate Equity Mgrs 453.2 - - 453.2 1.96%

Boston Common (ESG) 31.8 - 0.4 32.2 TOTAL REAL ESTATE (10%) 1,921.7 - 6.1 1,927.8 8.34%Principal Global Int'l Small Cap 193.4 - 2.9 196.3 Target Differential (1.66)% (382.7)

Victory Capital Mgt. Small Cap 195.9 - 2.3 198.3 COMMODITIESFIS (Mgr of Emerging Mgrs) International 111.1 - 3.3 114.4 Alliance (Commodities, Public Equity) 662.5 - 9.1 671.6

Terminated Int'l Equity Managers 0.3 - - 0.3 Gresham Invest. Mgmt. (Commodities, Active) 99.8 - 5.1 105.0

Int'l Equity Mgrs (16%) 3,527.7 - 110.2 3,637.9 15.75% Goldman Sachs (Commodities, Enhanced Index) 104.8 - - 104.8

Target Differential (0.25)% (58.8) PA (Commodities, Private Equity) 134.2 - - 134.2

Harding Loevner 476.2 - 14.8 491.0 TOTAL COMMODITIES (5.0%) 1,001.4 - 14.3 1,015.7 4.40%

Dimensional Fund Advisors 558.5 - 3.1 561.6 Target Differential (0.60)% (153.8)

Terminated Int'l Emerg. Mkts. Mgrs. - - - -

Int'l Emerg. Mkts Mgrs (5.0%) 1,034.7 - 17.9 1,052.6 4.56% CASHTarget Differential (0.44)% (102.6) HOUSE ACCOUNTS

TOTAL EQUITIES MGRS (50.0%) 11,789.8 - 209.6 11,999.4 51.94% Tier 1 (Article 17) - - 28.5 28.5

Int'l Tax Reclaims - - 0.5 0.5 Tier 2 (Article 18) - - 836.8 836.8

FIXED INCOME Tier 3 (Article 35) - - 45.7 45.7

Northern Trust (Fixed Income Index) - 746.3 6.7 753.0 Tier 4 (New) - - 9.9 9.9

Reams Asset Mgmt. (Opportunistic) - 709.2 - 709.2 Tier 5 (New) - - 227.7 227.7

LM Capital (Opportunistic) - 321.5 4.3 325.8 Tier 6 (New) - - 24.3 24.3

GIA Partners (Opportunistic) - 49.1 0.4 49.6 CASH SUMMARY

Semper Capital Mgt. - 49.5 0.7 50.2 Unallocated Cash Reserve (1%) - - 1,172.9 1,172.9 5.08%

Loomis Sayles (Long Duration) - 650.7 3.0 653.7 Target Differential 4.08% 941.8

CA Comm. Mort. Fund - 0.4 - 0.4 Transition - - - -

Bridgewater (TIPS) - 388.2 - 388.2

Reams Asset Mgmt. (Passive TIPS) - 680.9 0.4 681.3 PRIVATE REAL

Bridgewater Pure Alpha - 71.4 - 71.4 EQUITY STOCKS BONDS ESTATE CASH TOTAL

Core Bond Mgrs (17.0%) - 3,667.2 15.5 3,682.7 15.94% ACTUAL ASSET MIX

Target Differential (1.06)% (245.0) Current Month 1,001.4 2,225.1 11,797.5 4,722.9 1,921.7 1,435.6 23,104.2

MacKay Shields 7.6 577.8 16.8 602.3 4.33% 9.63% 51.06% 20.44% 8.32% 6.21% 100.00%

High Yield Bond Mgrs (3.0%) 7.6 577.8 16.8 602.3 2.61% Last Month 998.8 2,217.0 11,446.1 4,713.5 1,929.8 1,431.2 22,736.5

Target Differential (0.39)% (90.9) % Change 0.26% 0.36% 3.07% 0.20% -0.42% 0.31% 1.62%

Reams Asset Mgmt. (Unconstrained) - 240.7 - 240.7

Payden & Rygel (Unconstrained) 237.2 - 237.2

Unconstrained Fixed Income (2.0%) 477.9 - 477.9 2.07%

Target Differential 0.07% 15.8

TOTAL FIXED INCOME MGRS (22.0%) 7.6 4,722.9 32.3 4,762.9 20.61%

Subtotals & totals may not sum up exactly due to rounding.

Note: Data is unaudited

Dollars expressed in Millions.

Note: City Pension Contribution received on 7/13/18

COMMODITIES

Portfolio as of April 30, 2019

TOTAL FUND

STOCKS / EQUITY / RE

2

######

Venture Capital Buy-out Special Situations Percentage

Total $1,069,711,794 24% $2,132,019,000 48% $1,211,067,000 27% 100.00%

Commitment Total $4,412,797,794

Total Commitment Contributions Remaining Commitment Percent Funded

Abbott $227,465,000 $219,503,000 $7,686,000 96.50%

Hamilton Lane $128,287,000 $124,605,000 $3,682,000 97.13%

Fairview Capital $30,000,000 $9,170,000 $22,843,000 30.57%

Portfolio Advisors Legacy $264,203,000 $255,038,000 $9,038,000 96.53%

Portfolio Advisors Current $2,910,828,000 $1,608,083,000 $1,206,159,000 55.24%

PCA $192,820,000 $181,190,000 $11,640,000 93.97%

Stepstone Group $193,949,000 $183,666,000 $14,306,000 94.70%

TCP $15,484,794 $15,484,794 $0 100.00%

Aldus Equity $449,761,000 $410,029,000 $39,933,000 91.17%

Total $4,412,797,794 $3,006,768,794 $1,406,029,000 68.14%

Unfunded Commitment $1,406,029,000

Source: BOARD OF FIRE AND POLICE PENSION COMMISSIONERS

Data is based only on current/active funds whaich are funds that have remailing commitment or residual value.

Private Equity Commitment Summary

Private Equity Funding Summary

Total Fund Portfolio Allocation

Data as of June 30, 2018

25.0

6%

6.5

8%

15.7

5%

4.5

6%

15.9

4%

2.6

1%

2.0

7%

5.0

8%

8.3

4%

9.6

3%

4.4

0%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Core Equity (23%) Small Cap. Equity (6%) Int'l Equity (16%) Int'l Emerg. Mkts (5.0%) Core Bonds Iincluding

TIPS) (17.0%)

High Yield Bonds (3%) Unconstrained Fixed

Income (2.0%)

Cash (1.0%) Total RE (Including REITS)

(10.0%)

Private Equity (12.0%) Commodities Energy

(5.0%)

Actual Allocation, Target Allocation in parenthesisOver-allocated (Blue), Under-allocated (Red)

6.2

3.8

*Board approved ranges on 6/16/16

1.8

*Board approved ranges on

7.3

4.73.6

6.4

18.0

16.0

2.6

1.0

4. 0

8.5

11.5

9.0

15.0

25.8

3.4

20.2

18.4

13.6

2.2

3

8/31/2018

COMMINGLED FUNDS EQUITY POOLED CASH TOTAL ALLOC.

ABR Chesapeake Fund III NA 0.6 - 0.6

AEW Partners V NA 0.1 - 0.1

AEW Value Investors II NA 0.0 - 0.0

Almanac Securities Realty VII NA 37.7 - 37.7

Almanac Securities Realty VIII NA 1.4 - 1.4

Asana Partners NA 27.9 - 27.9

Asana Partners II NA 0.2 - 0.2

Berkshire Multifamily Income Realty Fund NA 36.3 36.3

Buchanan Fund IV NA 4.1 - 4.1

Calif Smart Growth IV NA 3.4 - 3.4

Capri Urban Investors NA 8.5 - 8.5

CIM Real Estate Fund III NA 15.7 - 15.7

CIM Urban REIT, LLC NA 16.2 - 16.2

CityView LA Urban Land Fund NA 0.0 - 0.0

Clarion Lion NA 106.6 - 106.6

Colony VIII NA 0.6 - 0.6

CPI Capital Europe (A NA 0.7 - 0.7

Exeter Industrial NA 17.8 - 17.8

Forum Asian Realty II NA 0.0 - 0.0

Gerrity Retail Fund NA 30.3 - 30.3

Heitman Value Partners II NA 0.1 - 0.1

Heitman Asia Pacific Property Investors NA 24.7 - 24.7

Heitman American Realty Trust (HART) NA 74.7 - 74.7

Jamestown Premier NA 55.9 - 55.9

Kayne Anderson Core NA 3.0 - 3.0

LaSalle Asia Opp. II NA 0.1 - 0.1

Legg Mason II NA 0.0 - 0.0

Metlife Core Property NA 103.7 - 103.7

Noble Hospitality NA 0.2 - 0.2

Oaktree Capital RE Opp. III NA 0.0 - 0.0

Praedium Fund VII NA 0.0 - 0.0

Principal Green I NA 0.2 - 0.2

Prudential PRISA NA 80.6 - 80.6

Rothschild Five Arrows Realty V (Almanac) NA 1.0 - 1.0

Savanna Real Estate Fund III NA 45.3 - 45.3

Starwood Distressed Opp IX NA 9.8 - 9.8

Standard Life Investments NA 3.2 - 3.2

Standard Life Investments Euro RE Club II NA 15.0 - 15.0

Stockbridge RE Fund II NA 10.4 - 10.4

Unico Core Plus Partners NA 34.4 - 34.4

Unico Partners I NA 3.8 - 3.8

Value Enhancement V (Ares) NA 0.5 - 0.5

Total 774.5 - 774.5 3.35%

SEPARATE ACCOUNT PROPERTIES EQUITY POOLED CASH TOTAL ALLOC.

AEW (Heitman) - 121 W. Chestnut 74.2 NA - 74.2

AEW (Heitman) - Woodland Plaza 23.1 NA - 23.1

AEW (Heitman) - Twin Creeks Village 32.3 NA - 32.3

AEW (Heitman) - Sea Isle, Inc. 37.9 NA - 37.9

AEW (Sentinel) - Riverplace 29.3 NA - 29.3 AEW (Sentinel) - Walmart Building at Water Ridge 21.4 NA - 21.4

AEW (Sentinel) - Windward Place Apts. 30.8 NA - 30.8 AEW (Sentinel) - Jefferson Town Center Apts 55.3 NA - 55.3

AEW (Sentinel) - St. Louis Industrial 2.3 NA - 2.3

AEW (Sentinel) - NorthPointe Exec. Park 32.3 NA - 32.3

AEW (Sentinel) - Aerial Center Exec. Park 41.7 NA - 41.7

AEW (Sentinel (Urdang)) - Shadeland Station 19.8 NA - 19.8

AEW (Sentinel (Urdang)) - Exelon Building 0.4 NA - 0.4

AEW - Sycamore Hills Plaza 19.3 NA - 19.3

Neptune Building 33.3 NA 33.3

Real Estate Managers Total Committed

AEW (Heitman, Sentinel (Urdang)) 419.9

Total 453.2 1.96%

Real Estate Summary

4

Manager 1-month 3-month 1-year 3-years 5-years FYTD

Total Fund 2.02 % 4.64 % 5.65 % 9.51 % 7.28 % 4.40 %

S & P 500 Index 4.05 % 9.48 % 13.49 % 14.87 % 11.63 % 10.15 %

Total Equity 3.57 % 7.37 % 5.37 % 12.45 % 8.30 % 4.76 %

S & P 500 Index 4.05 % 9.48 % 13.49 % 14.87 % 11.63 % 10.15 %

Total Domestic Equity 3.85 % 8.55 % 11.49 % 14.61 % 10.75 % 7.34 %

Russell 3000 Index 3.99 % 9.22 % 12.68 % 14.74 % 11.20 % 8.88 %

Total Large Cap Equity 4.06 % 9.25 % 13.24 % 15.15 % 11.68 % 9.61 %

S & P 500 Index 4.05 % 9.48 % 13.49 % 14.87 % 11.63 % 10.15 %

Total Small Cap 3.05 % 6.01 % 5.23 % 12.93 % 7.40 % -0.55 %

Russell 2000 Index 3.40 % 6.50 % 4.61 % 13.60 % 8.63 % -2.08 %

Total International Equity 3.14 % 5.58 % -3.66 % 9.08 % 4.38 % 0.63 %

MSCI ACWI ex-US 2.72 % 5.45 % -2.75 % 8.61 % 3.31 % 1.30 %

Total International Developed Markets 3.35 % 5.91 % -3.37 % 8.59 % 4.23 % 0.20 %

MSCI ACWI ex-US 2.72 % 5.45 % -2.75 % 8.61 % 3.31 % 1.30 %

Total International Emerging Markets 2.49 % 4.49 % -4.92 % 11.27 % 5.03 % 2.04 %

MSCI Emerging Markets Index 2.12 % 3.24 % -4.68 % 11.66 % 4.42 % 3.01 %

Total Fixed Income 0.51 % 2.80 % 5.52 % 3.42 % 3.51 % 4.87 %

Bloomberg Barclays Universal 0.14 % 2.06 % 5.38 % 2.46 % 2.86 % 4.96 %

Total Core Fixed Income -0.12 % 2.28 % 5.70 % 2.71 % 3.42 % 5.02 %

Bloomberg Barclays Aggregate 0.03 % 1.89 % 5.29 % 1.90 % 2.57 % 4.67 %

Total High Yield 1.32 % 4.59 % 7.23 % 8.33 % 6.04 % 7.11 %

LAFPP HY Benchmark1

1.40 % 4.12 % 6.71 % 7.77 % 4.85 % 6.35 %

Total REITs -0.09 % 4.35 % 15.70 % 8.44 % 8.89 % 10.53 %

LAFPP REIT Benchmark2

-0.73 % 2.96 % 14.19 % 6.29 % 7.31 % 7.87 %

Total Commodities 0.89 % 2.12 % -2.86 % 6.60 % 0.42 % -2.07 %

Bloomberg Commodities Index TR -0.42 % 0.41 % -8.03 % -0.66 % -9.43 % -6.03 %

Footnote:1

LAFPP HY Benchmark: CS HY Index thru 12/31/11 & BofA ML US HY Master II Cnst Index thereafter.

2 LAFPP REIT Benchmark: Dow Jones US Select RE Securities Index thru 12/31/13, 50% FTSE EPRA/NAREIT Global RE Index & 50% Dow Jones

US Select RE Securities Index thereafter.

Preliminary Return Information as of April 30, 2019

5

PENSIONS DIVISION

(Data through April 30, 2019)

DISABILITY PENSIONS

*Claims filed include the following: Disability, Active Member Death, Dependent Child/Parent. Note: Received 1 additional application in February 2019.

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total

2017 1 5 4 3 3 1 6 2 1 0 4 2

2018 3 4 1 3 0 2 3 2 2 1 2 1

2019 3 3 4 5

0

1

2

3

4

5

6

7

8

9

10

Total Claims Filed*

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

2017 2 0 3 2 0 0 1 1 2 0 1 4

2018 2 1 1 1 3 3 1 1 2 0 0 0

2019 1 0 2 2

0

1

2

3

4

5

Withdrawn Claims

32

24

15

6

PENSIONS DIVISION

*Claims include Surviving Spouse/Domestic Partner, Minor Child, Dependent Child/Parent.


2017 69 74 75 75 71 70 75 75 71 71 70 65

2018 67 70 69 70 67 63 65 64 63 64 66 66

2019 67 68 70 72

60

65

70

75

80

Total Claims Pending - All


2017 56 57 58 58 57 56 60 59 54 53 52 49

2018 49 49 48 49 46 44 45 47 47 48 48 49

2019 51 53 56 56

40

45

50

55

60

65

70

Total Claims Pending - Disability PensionsNew Applications and Review


2017 13 17 17 17 14 14 15 16 17 18 18 16

2018 18 21 21 21 21 19 20 17 16 16 18 17

2019 16 15 14 16

0

5

10

15

20

25

30

Total Claims Pending - Active Member Deaths*

7

PENSIONS DIVISION

*Claims include the following: Disability, Active Member Death, Dependent Child/Parent.

*Claims include the following: Disability, Active Member Death, Dependent Child/Parent. Months with

zero (0) indicate no claims presented to the Board that month.

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total

2017 1 1 4 2 4 2 1 2 5 1 4 1

2018 1 2 1 1 1 3 0 3 1 0 0 3

2019 1 2 0 3

0

1

2

3

4

5

6

7

8

9

Total Claims Presented to the Board*


2017 38.3 0.1 0.1 14 4.4 3.5 1.6 8.9 7.6 12.8 15 0.5

2018 39.7 0.4 20.2 18.9 0.1 14.5 0 10.4 31.7 0 0 5.8

2019 13.4 13.7 0 6.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Mo

nth

s

Avg. Processing Time for Claims Presented to the Board*

6 11

28

166

8

PENSIONS DIVISION

DROP PROGRAM

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2017 4 86 26 22 29 17 65 38 16 11 11 3 328

2018 4 129 43 39 29 26 35 25 26 39 48 53 496

2019 248 5 13 12 278

0306090

120150180210240270

DROP Entries

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2017 40 30 29 23 19 19 15 16 16 4 4 11 226

2018 62 27 28 41 34 22 21 14 12 7 2 7 277

2019 73 38 46 37 194

Projected 2019 6 28 21 10 8 2

0

20

40

60

80

100DROP Exits

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 1,252 1,307 1,300 1,297 1,306 1,301 1,359 1,381 1,381 1,388 1,395 1,387

2018 1,329 1,431 1,447 1,445 1,439 1,443 1,455 1,466 1,482 1,513 1,558 1,604

2019 1,779 1,746 1,713 1,689

800

1,000

1,200

1,400

1,600

1,800

2,000

DROP Participants

9

PENSIONS DIVISION

SERVICE PENSIONS

Current Month

Fiscal Year To Date

12 Month Moving Avg.

Service Pensions by Approval Date 9 91 9

SURVIVORSHIP PENSIONS

Current Month

Fiscal Year To Date


Surviving Spouse/Domestic Partner Pension Applications Processed 22 193 19

Survivor Benefit Purchase Program 0 8 1

Total Surviving Spouse/DP Applications Processed and Survivor Benefit Purchase Program Granted 22 201

ACTIVE MEMBER SERVICES

Refund of Contributions (Number Leaving Without Vesting)

Current Month

Fiscal Year To Date


Fire 2 14 1

Police 8 65 6

Harbor 0 1 0

Airport 0 0 0

Completed Basic Training Purchases

Fire 7 156 18

Police 23 349 34

Harbor 0 0 0

Airport 0 0 0

Public Service Purchases (PSP) Completed Purchases

1

12*

1

Avg. Years of Service (YOS) Purchased 1.00 1.62 1.79

Avg. Cost per YOS Purchased $55,851 $55,959 $56,113 * Staff audit revealed 2 PSP’s not previously reported for FY.

10

PENSIONS DIVISION

OUTREACH ACTIVITIES

Date Type of Outreach Number of

Participants Tier

Apr. 3, 2019 Financial Planning Education Seminar: Early Career – Grace Simons Lodge

44 Multiple

Apr. 4, 2019 Recruit Talk: LAPD Graduates – Ahmanson Recruit Training Center

44 6

Apr. 17, 2019 Financial Planning Education Seminar: Late Career – Grace Simons Lodge

48 Multiple

Apr. 25, 2019 LAPPL Outreach – Northeast Division 25 Multiple

Upcoming Events

May 1, 2019 Financial Planning Education Seminar: All Career – Grace Simons Lodge

TBD Multiple

May 2, 2019 Recruit Talk: LAPD Graduates – Ahmanson Recruit Training Center

TBD 6

May 9, 2019 LAPPL Outreach – Van Nuys Division TBD Multiple

May 14, 2019 Financial Planning Education Seminar: Late Career – LAFD Station 89

TBD Multiple

May 15, 2019 Benefit Presentation: LAFD Station 88 TBD Multiple

May 23, 2019 LAPPL Outreach – Foothill Division TBD Multiple

May 29, 2019 Financial Planning Education Seminar: DROP Exit –

Grace Simons Lodge TBD Multiple

May 31, 2019 Recruit Talk: LAFD Graduates – Drill Tower 81 TBD Multiple

Outreach Activity Totals

Current Month Fiscal Year to Date

Members Reached 161 2,093

-# of Recruit Talks 1 10

-# of Financial Planning Education Seminars 2 17

-# of Other Outreach Events 1 33 Note: The number of participants for “Information Table” events is an estimate. Staff are available to answer questions, check

personal information and collect forms at these events.

11

PENSIONS DIVISION

NEW PROJECTS

None.

UPDATED PROJECTS

MyLAFPP REDESIGN As part of the implementation of our new pension administration system, PARIS, Staff is working with the consultant on the redesign of MyLAFPP, our member self-service web portal. The redesign will include enhanced features and more self-service options for members. The current MyLAFPP site was disabled beginning January 1, 2019. The anticipated go-live date for the new MyLAFPP is Spring 2019. This information has been communicated to all members through newsletters, social media, and the website. [UPDATE: Build 4 was delivered on April 29, 2019. Staff continues to test the functionality of the site and will test the registration process in the first week of May. Smaller builds will be delivered almost weekly as we get closer to the launch date.]

UNCHANGED PROJECTS ACTUARIAL AUDIT On May 3, 2018, the Board selected Segal Consulting to provide actuarial consulting services under a new three-year contract term. Segal has served as the Plan’s actuary since 2006 and Board policy requires that an actuarial audit be conducted every 5-7 years, unless the Plan has recently appointed, or is about to appoint, a new actuary around the time an actuarial audit is scheduled to be performed. The last actuarial audit was completed in November 2013. At the same May Board meeting, Milliman, Inc. was selected to conduct the next actuarial audit. Milliman will perform a full replication of the June 30, 2018 actuarial valuation performed by Segal to assure the actuarial condition of the Plan is accurately measured. They will also complete a thorough review of the assumptions to confirm that they are appropriate and reasonable, and will verify that the data and methods used are reasonable. As part of the audit, Staff has provided Milliman with the data files used by Segal for the June 30, 2018 valuation. The results of the actuarial audit are expected to be presented to the Board in June 2019.

12

ADMINISTRATIVE OPERATIONS DIVISION

NEW PROJECTS

None.

UPDATED PROJECTS

PENSION ADMINISTRATION BENCHMARKING

The Board authorized CEM Benchmarking, Inc. (Cost Effectiveness Measurement) to

perform an objective benchmarking analysis of the Plan’s performance and administrative

cost metrics, which is a project in support of Goal IV (Pursue Operational Efficiencies) of

the FY 2018-19 Business Plan. The purpose of benchmarking is to measure the Plan’s

service levels and practices against our peers to gain a better understanding of our

performance and administrative cost per member. This analysis will help the Board and

staff determine if there are opportunities to become more efficient in the organization.

Staff completed and submitted CEM’s pension administration survey in March.

[UPDATE: Staff continues to work with CEM to finalize the benchmarking study. The

results will be presented to the Board on June 6, 2019.]

WORKFORCE SUCCESSION PLANNING

The Succession Planning Team (SPT) has met in February and determined that a

department-wide survey would be distributed in mid-March 2019 to seek input on levels

of interest for different types of workforce development programs. The SPT has met in

late March to review the survey results which leaned toward a mentorship and cross-

training program. The current succession plans (for General Manager, Chief Investment

Officer, and Assistant General Manager positions) have been distributed to executive

management for final updates by June.

[UPDATE: The Succession Planning Team met in late April to discuss informal feedback

received since the survey and clarify the scope of each program under consideration.

The Team has made a more definitive recommendation to proceed with the cross-training

program on a limited basis. The pilot program which is intended for implementation in FY

19-20, will involve positions/employees from two sections receiving cross training from

two other sections, where the work learned will be sequential.]

2019 POLICE DEPARTMENT RETIRED MEMBER BOARD ELECTION

LAFPP provides for the election of employee and retired Board members in accordance

with the City Charter, Los Angeles Administrative Code (LAAC), Division 23, Chapter 5,

Articles 5 and 5.5, and Board rules. On February 7, 2019, the Board authorized staff to

administer the 2019 Police Department Retired Member Board Election scheduled for

April 23, 2019.

[UPDATE: The Office of the City Clerk conducted the election on April 23, 2019. Ballot

counting took place at the Office of the City Clerk – Election Division in the presence of

13


observers designated by each candidate on April 25, 2019. As no candidate received a

majority of the votes cast, the Office of the City Clerk, in accordance with the Los Angeles

Administrative Code, has scheduled to conduct a runoff election on Friday, May 31, 2019

between the two candidates receiving the highest number of votes cast. The candidates

who received the highest number of votes are Garrett W. Zimmon (49.4% of votes cast)

and Don Keith (21.9% of votes cast). Below are some key dates for the runoff election.]

May 16, 2019 The Office of the City Clerk mails out ballots to eligible voters.

May 28, 2019 Deadline for candidates to submit an Observers List to the Office of the City Clerk by 5:00 p.m.

May 31, 2019 Runoff Election Day. All ballots must be received by the Office of the City Clerk – Election Division, by 5:00 p.m., in order to be counted.

June 3, 2019 Ballot counting will take place at the Office of the City Clerk – Election Division in the presence of observers designated by each candidate.

June 20, 2019 Date of Board Report – Runoff Election Results.

July 1, 2019 New Police Department Retired Member of the Board term begins.

PENSION ADMINISTRATION SYSTEM REPLACEMENT

The Board awarded the contract to Conduent (formerly Xerox) on May 21, 2015 and implementation of the project began in July 2015. The new system that is being developed was later named PARIS (Pension and Retirement Information System). For the last couple of years, staff has worked with the Conduent team to setup the hosting environment, confirm and document the various specifications for PARIS, and deliver in phases, newly developed system functionality for testing and validation by LAFPP staff. The major system functionalities delivered include Core Calculations for Service Retirement, DROP, Disability, and Terminations as well as Secondary Calculations involving Service Purchases, Enrollment, Deaths, and QDROs. All discrepancies and defects were logged and addressed for resolution and re-testing.

[UPDATE: PARIS has successfully processed four monthly Pension Rolls since it went

Live in January. The latest one in April was more challenging than usual as staff had to

run an emergency Off-Cycle Pension Roll to correct a few disbursement issues caused

by a system error. A new Post Support build (Build 3) was recently delivered to address

additional functional issues and needed enhancements. In addition, the delivered build

was also released on a newer platform version, hence requiring Staff to perform parallel

testing between the current version and the newly released version for the May Pension

Roll. High priority reports for the Quarterly Tax as well as for Pension Reconciliation are

still being developed and refined by our vendor and are expected to be delivered in the

upcoming Post Support builds.

14


The Project Team continues to work on functionality that was intentionally deferred until

after the Phase 4A Go-Live implementation. These items are still planned to be completed

over the next few months. Additionally, staff continues to work on the next phases of the

project which are:

• Phase 4C – Member Self-Service: A new Phase 4C build (Build 4) was recently released

which included functionality for member Online Registration and staff continues to test

this functionality. Since the Project Team’s focus has been on ensuring the timely

deployment of Phase 4C, staff still expects to implement the member self-serve web

portal by Spring 2019.

• Phase 4B – Document Imaging Integration and Workflow Implementation: Since the

project team’s focus is on critical fixes and reporting needs for Phase 4A as well as the

timely deployment of Phase 4C, this phase of the project is still expected to be

implemented by December 31, 2019.]

UNCHANGED PROJECTS

CREATION OF TWO NEW CLASSIFICATIONS – BENEFITS ANALYST & SENIOR BENEFITS ANALYST LAFPP began the effort to create two new classifications to bridge the gap between the

existing classifications of Benefits Specialist and Chief Benefits Analyst. This effort is

consistent with Goal 5 of the 2019-21 Three-Year Strategic Plan, Build and Support A

Talented Workforce, by establishing a career ladder in the Benefits series that would

provide advancement opportunity and help retain our employees. On September 27,

2018, the Board of Civil Service Commissioners officially approved the creation of the

new classes and class specifications for Benefits Analyst (Class Code 9108) and Senior

Benefits Analyst (Class Code 9109). On December 6, 2018, the Personnel Department

notified the Office of the City Administrative Officer (CAO) of the creation and requested

that they establish a salary for the new classes. CAO Analyst is in the process of

reviewing requests from departments for salary setting for both classifications.

PERFORMANCE METRICS As part of the Mayor’s “Back to Basics” philosophy, the Mayor directed departments to submit performance metrics that will measure the effectiveness of the departments in key areas. Monthly, staff submits performance metrics and business plan project updates to Mayoral staff including data in following areas: payment of pension payments; disability applications; customer satisfaction; contractor disclosure; and investment benchmarks.

In addition, the General Manager has expanded the use of performance metrics to internally measure and track performance and assist management decision making, taking into consideration resource requirements needed to compile and analyze the data. These internal metrics are reviewed by management on a regular basis.

15


In 2017-18, Management reviewed its internal performance metrics and made some changes to its metrics for 2018-19 relating to Investments' due diligence reviews, DocuShare, and certain elements of Pension Administration operations. Staff will continue to meet regularly to review metrics performance and will continue to submit the Mayor’s performance metrics.

16

DEPARTMENT OF FIRE AND POLICE PENSIONS

BUDGET TO ACTUAL - RECEIPTS AND EXPENSESAs of April 30, 2019 (84% of year)

(A) (B) (C) (D) (E)

DIFFERENCE

(UNDER)/OVER VARIANCE

ACTUAL YEAR END PROJECTED %

BUDGET YEAR TO DATE PROJECTIONS (C - A = D) (D / A = E)

RECEIPTS

General Fund1 687,867,488$ 687,867,488$ 687,867,488$ -$ 0%

Less: Excess Benefit Plan1 (1,274,936) (1,274,936) (1,274,936) - 0%

Special Fund (Harbor) 4,967,756 4,967,756 4,967,756 - 0%

Special Fund (Airport) 1,337,008 1,337,008 1,337,008 - 0%

Member Contributions2,3 153,177,807 124,994,428 145,890,084 (7,287,723) -5%

Earnings on Investments 455,500,000 408,687,762 455,500,000 - 0%

Miscellaneous4 2,500,000 524,401 629,281 (1,870,719) -75%

Total Receipts 1,304,075,123$ 1,227,103,907$ 1,294,916,681$ (9,158,442)$ -1%

EXPENSES

Service Pensions 671,000,000$ 564,478,904$ 679,013,078$ 8,013,078$ 1%

Service Pensions - DROP payout 145,464,000 109,911,086 130,050,039 (15,413,961) -11%

Disability Pensions 115,000,000 93,381,675 111,832,607 (3,167,393) -3%

Surv. Spouse/Domestic Partner Pensions 127,000,000 108,269,262 130,188,983 3,188,983 3%

Minor/Dependent Pensions 3,000,000 3,647,680 4,173,216 1,173,216 39%

Refund of Contributions 4,500,000 3,162,299 3,794,759 (705,241) -16%

Subtotal Pension Benefits 1,065,964,000$ 882,850,906$ 1,059,052,682$ (6,911,318)$ -1%

Health Insurance Subsidy 122,000,000 101,376,235 121,819,577 (180,423) 0%

Dental Insurance Subsidy 4,500,000 3,575,809 4,301,673 (198,327) -4%

Medicare Reimbursement 13,500,000 9,347,940 11,215,859 (2,284,141) -17%

Health Insurance Reimbursement 1,500,000 889,518 1,186,025 (313,975) -21%

Subtotal Health Benefits 141,500,000$ 115,189,503$ 138,523,133$ (2,976,867)$ -2%

Total Benefits Expenses 1,207,464,000$ 998,040,409$ 1,197,575,815$ (9,888,185)$ -1%

Investment Management Expenses 103,621,611 36,735,774 99,843,301 (3,778,310) -4%

Administrative Expenses5 23,693,000 19,600,933 22,928,639 (764,361) -3%

Total Expenses 1,334,778,611$ 1,054,377,116$ 1,320,347,755$ (14,430,856)$ -1%

RECEIPTS OVER EXPENSES6 (30,703,488)$ 172,726,791$ (25,431,073)$ (5,272,415)$

YTD

CURRENT MOVING

MONTH AVERAGE

PENSION PAYROLL 105,544,089$ 99,487,811$

2 Includes 2017-18 Pay Period 26 and up to 2018-19 Pay Period 21.

3 Funds previously coded as Miscellaneous revenue for member buybacks have been reclassified as Member Contributions.

4 Reflects miscellaneous administrative fees.

5 Actual Year-to-Date reflects Year-to-Date commitments which include encumbrances and expenditures.

6 Figures may be rounded.

1Represents the City of Los Angeles General Fund Annual Required Contribution, including the amount earmarked to pay excess benefits and associated administrative costs in

compliance with IRC Section 415. On November 13, 2018, funds totaling $569,064.15 from the prior fiscal year were re-appropriated to the current year Excess Benefit Plan (EBP)

fund budgeted at $1,274,936. Since the EBP revenue is not transferred to LAFPP, it is excluded from the department's total revenue.

17

DEPARTMENT OF FIRE AND POLICE PENSIONSBUDGET TO ACTUAL - ADMINISTRATIVE AND INVESTMENT MANAGEMENT EXPENSES

As of April 30, 2019 (84% of year)

ADMINISTRATIVE EXPENSE (A) (B) (C) (D) (E) (F) (G) (H)

DIFFERENCE

ADJUSTED YEAR TO DATE REMAINING YR END (UNDER)/OVER VARIANCE

ADOPTED BUDGET BUDGET TOTAL BALANCE PROJECTED PROJECTED %1

ACCOUNT TITLE BUDGET CHANGES (A + B = C) COMMITTED (C - D = E) EXPENSES (F - C = G) (G / C = H)

Salaries-General2, 3 12,009,000 (94,224) 11,914,776 8,804,101 3,110,675 11,370,000 (544,776) -5%

Salaries-As-Needed2, 3 39,000 69,224 108,224 82,374 25,850 108,224 - 0%

Overtime2,3 87,000 25,000 112,000 96,811 15,189 112,000 - 0%

Printing & Binding 72,000 - 72,000 72,000 - 72,000 - 0%

Travel 147,000 - 147,000 115,434 31,566 139,000 (8,000) -5%

Contractual Services 5,534,000 - 5,534,000 4,928,779 605,221 5,534,000 - 0%

Transportation 6,000 - 6,000 4,750 1,250 6,000 - 0%

Medical Services 300,000 - 300,000 300,000 - 300,000 - 0%

Health Insurance 1,417,000 - 1,417,000 1,417,000 - 1,367,000 (50,000) -4%

Dental Insurance 60,000 - 60,000 60,000 - 60,000 - 0%

Other Employee Benefits 40,000 - 40,000 40,000 - 35,000 (5,000) -13%

Retirement Contribution 3,081,000 - 3,081,000 3,080,892 108 3,082,000 1,000 0%

Medicare Contribution 176,000 - 176,000 109,754 66,246 136,415 (39,585) -22%

Election3 25,000 18,000 43,000 17,757 25,243 63,000 20,000 47%

Office & Administrative3 659,000 (18,000) 641,000 456,981 184,019 526,000 (115,000) -18%

Furniture, Office & Tech. - - - - - - - 0%

Tuition Reimbursement 41,000 - 41,000 14,300 26,700 18,000 (23,000) -56%

Unappropriated Balance - - - - - - - 0%

TOTAL ADMINISTRATIVE

EXPENSES 23,693,000$ -$ 23,693,000$ 19,600,933$ 4,092,067$ 22,928,639$ (764,361)$ -3%

TOTAL INVESTMENT

MANAGEMENT EXPENSES 103,621,611$ -$ 103,621,611$ 36,735,774$ 66,885,837$ 99,843,301$ (3,778,310)$ -4%

1 Percentage difference between projected expenses and the adjusted budget.

2 Year-to-Date Committed includes FY 2018-19, Pay Period 1 (July 1-7) through Pay Period 21.

3 The following adjustments have been made after the 2018-19 Budget was approved by the Board on June 21, 2018:

a) Funds totaling $54,224 were transferred from Salaries-General to Salaries-As-Needed to offset Salaries-As-Needed related costs, based on the June 21, 2018 Board delegated authority for the

General Manager to approve intra-departmental transfers within the 2018-19 Administrative Expense Budget, commensurate with the limit released by the City Administrative Officer;

b) On February 21, 2019, the Board approved the General Manager to transfer funds totaling $18,000 from Office Office and Administrative Expense (Account 646010) to Election Expense (Account

645417), for expenses associated with the upcoming election of the Police Department Retired Member of the Board; and

c) On February 21, 2019, the Board approved the General Manager to transfer funds totaling $40,000 from General Salaries (Account 641010) and appropriate $15,000 to As-Needed Salaries

(Account 641070) and $25,000 to Overtime Salaries (Account 641090), for as-needed and overtime expenses attributable to PARIS implementation and increased counseling due to changes in the

DROP ordinance.

18


Active, Expired, and Upcoming Contracts

April 30, 2019

SEARCH Small Cap Equity TBD TBD 12/20/18 10/18/18

655PEN Brandes Investment Partners, LP

(International Equity)

08/01/16 07/31/19 02/15/19 Staff recommendation to the Board is scheduled for 06/06/19.

659PEN Daruma Asset Management, Inc.

(Domestic Equity)

08/01/16 07/31/19

656PEN Fisher Asset Management, LLC


08/01/16 07/31/19 02/15/19 Staff recommendation to the Board is scheduled for 06/06/19.

657PEN Scout Investments, Inc. - Reams Asset

Management Division (Fixed Income - TIPS)

09/01/16 08/31/19 Staff recommendation to the Board is scheduled for 07/03/19.

658PEN AllianceBernstein, L.P.

(Commodities)


651PEN Northern Trust Company

(Custodian Bank)


662PEN Portfolio Advisors, LLC

(Private Equity - Specialized Manager)

10/20/16 09/30/19 New Contract No. 726PEN is effective 10/01/19.

663PEN Fairview Capital Partners

(Private Equity - Specialized Manager)

11/01/16 09/30/19 New Contract No. 727PEN is effective 10/01/19.

664PEN Robeco Investment Management, Inc.

(Boston Partners) (Domestic Equity)

11/01/16 10/31/19 Staff recommendation to the Board is scheduled for 08/15/19

666PEN Principal Real Estate Investors, LLC

(Global REIT Manager)


665PEN Principal Real Estate Investors, LLC

(U.S. REIT Manager)



(Domestic Equity)


669PEN Harding Loevner

(International Emerging Markets)


671PEN Northern Trust Investments, Inc.

(Domestic Equity)


670PEN The Townsend Group

(Real Estate Consultant)


680PEN FIS Group, Inc.

(International Manager of Emerging Managers)

07/01/17 06/30/20

675PEN MacKay Shields, LLC

(Fixed Income - High Yield Bond)

07/01/17 06/30/20

679PEN Los Angeles Capital Management and Equity

Research, Inc. (Domestic Equity)

08/01/17 07/31/20

678PEN Payden & Rygel

(Unconstrained Fixed Income Manager)

08/01/17 07/31/20


Management Division (Unconstrained Fixed

Income Manager)

08/01/17 07/31/20


(Domestic Equity)

10/01/17 09/30/20

682PEN Westwood Management Corp.

(Domestic Equity)

10/01/17 09/30/20

690PEN AEW Capital Management, L.P.

(Real Estate Separate Account Manager)

01/01/18 12/31/20

689PEN Cohen & Steers Capital Management, Inc.

(Real Estate Investment Trust Manager

(Active))

01/01/18 12/31/20

688PEN Dimensional Fund Advisors, LP

(International Emerging Markets)

01/01/18 12/31/20

692PEN BlackRock Institutional Trust Company


02/01/18 01/31/21


(Global REIT)

03/02/18 02/28/21

694PEN Baillie Gifford Overseas Limited


03/01/18 02/28/21

698PEN Principal Global Investors, LLC


05/01/18 04/30/21

697PEN Victory Capital Management, Inc. (Trivalent

Investments a Victory Capital Investment

Franchise) (International Equity)

05/01/18 04/30/21

702PEN Frontier Capital Management Company, LLC

(Domestic Equity)

07/01/18 06/30/21

695PEN Gresham Investment Management

(Active Constrained Commodity Manager)

07/01/18 06/30/21

696PEN Goldman Sachs Asset Management

(Enhanced Index Commodity Manager)

07/16/18 07/15/21

706PEN LM Capital Group, LLC

(Fixed Income)

09/01/18 08/31/21

710PEN Channing Capital Management, LLC

(Domestic Equity)

10/01/18 09/30/21

711PEN Loomis, Sayles & Co., LP

(Fixed Income)

10/01/18 09/30/21

712PEN Boston Common Asset Management, LLC

(International Equity Emerging Manager)

10/01/18 09/30/21

713PEN Redwood Investments, LLC

(Domestic Equity)

10/01/18 09/30/21

716PEN Semper Capital Management, L.P.

(Fixed Income)

10/01/18 09/30/21

Start DateExpiration

Date

New

Search

Date

Vendor/

Candidate

Finalist

Date

Contract Vendor / Services

Contract Term

Marketing

Cessation

Start Date1

Board Authorization Date

Contract

Award /

Renewal

Date

INVESTMENTS

Comments

19



April 30, 2019


Date

New

Search

Date

Vendor/

Candidate

Finalist

Date


Contract Term

Marketing

Cessation

Start Date1


Contract

Award /

Renewal

Date

INVESTMENTS

Comments

717PEN GIA Partners, LLC

(Domestic Fixed Income)

10/01/18 09/30/21

719PEN PHOCAS Financial Corporation

(Domestic Equity)

10/01/18 09/30/21

718PEN Northern Trust Investments, Inc.

(Fixed Income)

12/01/18 11/30/21


Management Division (Fixed Income)

12/01/18 11/30/21

722PEN Glass, Lewis, & Co., LLC

(Proxy Voting Services)

01/01/19 12/31/21

725PEN Portfolio Advisors, LLC

(Private Equity)

04/01/19 03/31/22

721PEN RVK, Inc.

(General Investment Consultant)

03/01/19 02/29/24

714PEN CEM Benchmarking, Inc.

(Pension Administration Benchmarking)

01/01/19 06/30/19

641PEN Haworth, Inc.

(HQ Furniture)

08/01/15 12/31/20 The Board approved a two-year extension to the current

contract. Consistent with the U.S. Communities Government

Purchasing Alliance Contract No. 4400003402, LAFPP contract

extension will be through 12/31/20. The amendment was

executed on 01/03/19.

701PEN Total Commercial Real Estate, Inc.

(Property Management Services - Neptune)

07/01/18 06/30/21

715PEN Segal Select Insurance Services, Inc.

(Governmental Side-A D&O Insurance)

11/01/18 11/01/21

724PEN DePasquale, Kelley & Company

(Property Tax Consultant)

01/17/19 01/15/22

676PEN Iron Mountain Secure Shredding, Inc.

(Secure Document Shredding)

07/01/17 06/30/19

683PEN SkillPath

(Professional Development Training)

10/01/17 09/30/20

RFP Health Law and Data Privacy tbd tbd 12/06/18 The Board authorized an RFP to be published in January 2019.

The RFP was published on 01/07/19; 10 responses were

received 01/28/19. Interviews and selection are to be

determined.

C-128417 Nossaman, LLP

(Outside Real Estate and Investment Counsel)

09/17/16 09/16/19

C-128402 Kutak Rock, LLP

(Outside Real Estate and Investment Counsel)

10/17/16 10/16/19

C-128928 K&L Gates, LLP

(Fiduciary Counsel)

11/17/16 11/16/19

C-128926 Olson Hagel & Fishburn, LLP

(Fiduciary Counsel)

12/15/16 12/14/19

C-131108 Cohen Milstein Sellers & Toll, PLLC

(Securities Litigation Monitoring Services)

03/01/18 02/28/21

C-131109 Labaton Sucharow, LLP


03/01/18 02/28/21

C-131110 Robbins Geller Rudman & Dowd, LLP


03/01/18 02/28/21

C-131107 Nossaman, LLP

(Fiduciary Services)

03/19/18 03/18/21

C-132366 Ice Miller, LLP

(Outside Tax Counsel)

09/21/18 09/20/21

C-132426 Reed Smith, LLP

(Outside Tax Counsel)

09/21/18 09/20/21

C-132346 Cohen Milstein Sellers & Toll PLLC 08/02/18 until

completion

C-121678 Reed Smith, LLP

(Legal Representation)

08/02/12 until

completion

C-126107 Morgan Lewis & Bockius, LLP (Bingham)

(Tribune Shareholders Legal Representation)

03/01/12 until

completion

652PEN Firedrill

(Graphic Design Services)

05/19/16 05/18/19 05/02/19 The Board approved a new, three-year contract award to

Firedrill. Contract will be executed on 05/16/19. New contract

number will be assigned.

648PEN Four Square Financial Literacy Partners, Inc.

(Financial Planning Education)

12/03/18 12/04/19 The 1st amendment to contract 648PEN for a one-year

extension was executed on 12/06/18.

723PEN Cambridge Financial Partners, LLC

(Financial Counseling Services)

12/10/18 12/09/19 A new one-year contract 723PEN was executed on 12/20/18.

673PEN Something Special (Financial Planning

Education Seminar Program Catering Services)

03/16/17 03/15/20

685PEN Digital Deployment, Inc.

(Website Design and Support Services)

10/05/17 10/04/20

RFP Investigative Services Contractor tbd tbd 04/04/19 The Board authorized an RFP to be published.

707PEN U.S. Legal Support

(Court Reporting)

07/01/18 06/30/19

628PEN CoventBridge (USA), Inc.

(Investigative Services Contractor)

09/15/15 09/14/19 08/16/18 The Board approved a one-year extension of the contract.

704PEN ExamWorks, LLC

(Independent Medical Exam Services)

07/01/18 06/30/21

703PEN QTC Medical Group, Inc.

(Independent Medical Exam Services)

07/01/18 06/30/21

DISABILITY PENSIONS

ADMINISTRATIVE SERVICES

ADMINISTRATIVE OPERATIONS

COMMUNICATIONS & EDUCATION

CITY ATTORNEY'S OFFICE

20



April 30, 2019


Date

New

Search

Date

Vendor/

Candidate

Finalist

Date


Contract Term

Marketing

Cessation

Start Date1


Contract

Award /

Renewal

Date

INVESTMENTS

Comments

660PEN Simpson & Simpson Certified Public

Accountants

(Annual Financial Statements Audits)

07/19/16 07/18/19 The Board approved a one-year extension of the contract on

04/04/19

668PEN Keenan & Associates

(Health Consulting Services)

01/25/17 01/24/20

N/A Los Angeles City Employee Retirement System

(Health and Dental Plan Subgroups)

01/01/18 12/31/20

705PEN USI Insurance Services

(Health Consulting Services)

06/07/18 06/06/21

N/A Los Angeles Police Protective League

(Dental Insurance Administration)

07/01/18 06/30/23

N/A United Firefighters of Los Angeles City

(Medical and Dental Insurance Administration)

07/01/18 06/30/23

N/A Los Angeles Firemen's Relief Association

(Medical Insurance Administration)

07/01/18 06/30/23

N/A Los Angeles Police Relief Association

(Medical and Dental Insurance Administration)

07/01/18 06/30/23

709PEN Milliman, Inc.

(Actuarial Audit)

01/25/19 12/31/19

708PEN The Segal Company (Western States), Inc.

(Actuarial Consulting Services)

07/01/18 06/30/21

552PEN Conduent State and Local Solutions, Inc.

(OnPoint Software)

05/01/15 04/30/19


(Benefit Payment System)

05/20/13 05/19/19

575PEN LRWL, Inc. (Pension Administration System

Replacement Project Consulting Services)

06/01/13 06/30/19

611PEN International Business Machines Corporation

(Disaster Recovery Services)

12/04/14 12/03/19 The contract was formerly awarded to Verizon Terremark. The

acquisition by International Business Machines (IBM)

Corporation was effective on 09/01/17. IBM contract extension

through 12/03/19 was executed in December 2018.

616PEN AT&T

(CALNET3 Phone)

11/15/13 06/30/20 The contract has been extended to 06/30/20 by the State of

California.

617PEN AT&T

(CALNET3 Data)


California.

619PEN Verizon

(CALNET3 Phone)


California.


(Integrated Disbursement Services)

10/05/17 10/04/20

626PEN Conduent State and Local Solutions, Inc.

(Pension Administration System Replacement

Project)

07/02/15 07/01/23 The contract was formerly awarded to Xerox State and Local

Solutions, Inc. The name change to Conduent State and Local

Solutions, Inc. was effective 02/16/17.

Subscription

Agreements

Bridgewater Associates, Inc.

(TIPS and Pure Alpha)

07/31/08 until

completion

on-going

1Marketing Cessation: The purpose of this policy is to prevent, and avoid the appearance of, undue influence on the Board or any of its members in the award of all Investments contracts. In accordance

with Section 9.0 of the Investment Policy, from the time the search begins with the Board’s approval of the minimum criteria for the search until the search ends with the selection of the firm(s) to receive

the contract(s), all direct marketing contact with firms that meet the search criteria will be limited to meetings with the Consultant, information sent to the Consultant or Department, questions about the

search directed to the Staff or Consultant, one meeting at the Department’s office with Staff and any site visits. The Board members, Department Staff or Consultant will accept no entertainment or gifts

of any kind from any firm qualifying for the search. This policy does not prohibit contact with potential interview candidates at group social events, educational seminars, conferences, or charitable events

so long as there is no direct marketing.

During the three months prior to the renewal of a contract with a firm currently under contract, the Board Members, Department Staff and Consultant will accept no entertainment or gifts from that firm

until the contract has been renewed or terminated by the Board. Firms who currently have contracts with the Los Angeles Fire and Police Pension System are allowed to continue contact related to the

existing contract with Staff and Consultant.

2Hedge Funds do not have contracts like our other managers. They have limited partnership agreements that do not have a fixed expiration date. They are on this list to include them in our regular three-

year manager review process.

*Expired contracts are listed in red. Expired investments contracts will remain on the list if the marketing cessation period is active and until a new contract is awarded.

HEDGE FUND PARTNERSHIP AGREEMENTS2

INTERNAL AUDIT

MEDICAL & DENTAL BENEFITS

SYSTEMS

PENSIONS DIVISION

21

AGENDA - LAFPP...Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee. G. CLOSED SESSION 1....

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Transcript of AGENDA - LAFPP...Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee. G. CLOSED SESSION 1....