Once LOPFI coverage is adopted by an employer, LOPFI must receive all Member information in the form of an electronic application submitted through the Employer Reporting Portal. Each month a Payroll Report, based on the information contained on the Membership Application, is established for each covered department. The report is made available to each employer group on the 25th of the month for that month. All Payroll Reports and corresponding payments are due by the 10th of the following month. (This is for both paid and volunteer departments.)
- If a Member earns a minimum of $1,307 per month in calendar year 2012, that service is considered to be paid service with LOPFI. The minimum salary amount increases each year in accordance with the change in the Consumer Price Index (CPI).
- If a Member earns less than the minimum of $1,307 per month in calendar year 2012, that service is considered volunteer service with LOPFI.
Employer Contributions
Paid Service: For the 2012-year, the uniform employer contribution rate for paid departments will be 17.03% of reported pay. If the department was certified to participate in the State Insurance Premium Tax Turnback funding (Premium Tax) for the 2012-year, the department will be responsible for paying 60% of the cost from their local budget. The remaining 40% will be funded by Premium Tax funds. If the department was not certified for the 2012-year to participate in the Premium Tax funding, the entire first year’s cost will be funded by the local budget. (Adoption of LOPFI coverage for a paid department must be completed before December 15th to be eligible to receive Premium Tax funding for the next year. Premium Tax is funding that is allocated to each LOPFI-covered department to help cover a portion of their LOPFI employer contribution costs.)
Volunteer Service: For the 2012-year, the uniform employer contribution rate for volunteer departments is $5.00 per Member per month.
Effective January 1, 2012, Members no longer receive credit for prior service when a location first adopts coverage for their department. Service Credit begins to accrue on the first day that LOPFI coverage is effective for the department. After a Member becomes vested (5-years of service credit) they have the option to recognize prior volunteer service and/or purchase prior paid service credit that was earned before the department adopted LOPFI coverage. (Please refer to the
Member Handbook and
Miscellaneous Request form for additional details.)
Member Contributions
Paid Service: Member contribution rates depend on whether or not that service is also covered by social security through the Member’s LOPFI-covered employer. All Member contributions are remitted by the employer on a pre-tax basis. Member contribution rates are as follows:
- Paid service not covered by social security with their LOPFI-covered employer: 8.5% of gross wages
- Paid service covered by social security with their LOPFI-covered employer: 2.5% of gross wages
- Volunteer Service: No Member contributions.
Please refer to the
Member Handbook to determine how monthly retirement benefits are calculated.