b'Mark Lassman PhotoHEALTH INSURANCEPREMIUM SUBSIDY VALUATIONThe health insurance premium subsidy valuation utilizes the same actuarial assumptions as the pension benefits valuation, with the addition of expected medical inflation and other health benefit-specific assumptions. Medical costs continue to increase at a faster pace than general inflation. Assumptions in the June 30, 2024 actuarial valuation included medical trend rate increases of 7.00% for non-Medicare premiums and 10.00% for Medicare premiums in Fiscal Year 2024-25. Using the same actuarial methods for pension benefits, the Actuarial Balance Sheet for health insur-ance premium subsidy benefits is shown on page 116. The contributions to fund the health insurance premium subsidy benefits are below.Unfunded Liability Pension ContributionRequirements 2025-26*Tier 1 N/A Health Insurance Premium SubsidyHealth Insurance PremiumContribution Requirements 2025-26* Cost Trend RatesTier 2 4.20% of total payroll of(as a percentage of Plan member salaries) (applied to calculate following years premiums)Tiers 26**Tier 1 N/A Fiscal Year Non-Medicare MedicareTier 3 4.20% of total payroll ofTier 2 8.38%Tiers 26**2024-2025 7.00% 10.00%Tier 4 4.20% of total payroll ofTier 3 10.02% 2025-2026 6.75% 6.50%Tiers 26**Tier 4 10.01% 2026-2027 6.50% 6.25%Tier 5 4.20% of Tier 5 payroll** Tier 5 9.74% 2027-2028 6.25% 6.00%Tier 6 4.20% of Tier 6 payroll** Tier 6 12.22% 2028-2029 6.00% 5.75%Harbor Port Police 4.99% 2029-2030 5.75% 5.50%Harbor Port Police 1.93% of Tier 5 payroll*** Tier 5Tier 5 Harbor Port Police 2030-20315.50% 5.25%Tier 6 5.74% 2031-20325.25% 5.00%Harbor Port Police 1.93% of Tier 6 payroll*** Airport PoliceTier 6 6.80% 2032-2033 5.00% 4.75%Tier 6* Contributions to be made on July 15, 2025. Rates do not20332034 4.75% 4.50%Airport Police-1.97% of payroll**** include amounts allocated for administrative expenses.Tier 6 2034 and4.50% 4.50%*Contributions to be made on July 15, 2025. later** Excluding the Harbor & Airport Departments.*** Excluding the City & Airport Department.**** Excluding the City & Harbor Department.SECTION 5 Actuarial 113'