b'ACTUARIAL The purpose of an actuarial valuation is to determine the funding progress and the contribution require-ments of a retirement plan at a specific point in time. The System conducts two studies annually for the fiscal year ending June 30: one study evaluates the ratio of assets to liabilities for pension benefits for members and their beneficiaries; the other study evaluates the same ratio for health insurance premi-um subsidy benefits. The studies establish the funding status of the System and determine the annual contribution requirements to fund the benefits.FUNDING STATUSThe funded status of the System is examined over a span of several years to determine if progress is made. When the assets equal or exceed the liabilities, the Plan is funded at 100% or more and is consid-ered fully funded; otherwise, it is underfunded. PENSION BENEFITSA 10-year history of the Systems funded status for pension benefits is provided below. Although the funding ratios decreased for several years following the investment losses sustained in the 2008-2009 Great Recession, the results of the actuarial studies since that period reflect improved, stable funding progress overall.As of June 30, 2024, the funded status for pension benefits is 99.8%, an increase of 0.3% from the prior year. The increase in the funded ratio was primarily due to scheduled contributions to pay down the unfunded actuarial accrued liability (UAAL) and an investment return on the valuation value (i.e., after asset smooth-ing) greater than the assumed rate of 7.00% used in the June 30, 2023, valuation, offset somewhat by individual salary increases for actives and cost-of-living adjustments (COLAs) for retirees and beneficiaries greater than expected. Details on the determination of the actuarial value of assets for the year are avail-able in Section 2 of the June 30, 2024 Actuarial Valuation and Review of Retirement Benefits. HEALTH INSURANCE PREMIUM SUBSIDY BENEFITSThe System began pre-funding health insurance premium subsidy benefits in 1989. A 10-year history of the Systems funded status for health benefits is included in the chart below. As of June 30, 2024, the funding status of health subsidy benefits increased from 77.7% to 78.2%, an increase of 0.5%, primarily due to a higher than expected return on the valuation value of assets (after smoothing). Details on the factors which contributed to the increased funding status are available in Section 2 of the June 30, 2024 Actuarial Valuation and Review of Other Postemployment Benefits. Funded Status Pension and Health BenefitsFunded StatusPension and Health Benets120.0%90.0%91.5% 93.9% 91.5% 92.9% 93.6% 93.2% 96.8% 98.0% 99.5% 99.8%74.3% 77.7% 78.2%60.0%48.1% 49.3% 51.3% 56.2% 59.7% 64.7%45.4%30.0%0.0%14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24Pension Health108 LAFPP ANNUAL REPORT 2024'