b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 1DESCRIPTION OF THE PLANS (Continued)Pension Plan (Continued)Tier 1 members hired prior to January 17, 1927, with 20 years of service are entitled to annual pension benefits equal to 50%, increasing for each year of service over 20 years, to a maximum of 66-2/3% of the average monthly rate of salary assigned to the ranks or positions held by the member during the three years immediately preceding the date of retirement.Tier 1 members hired on or after January 17, 1927, with 20 or more years of service are entitled to annual pension benefits equal to 40%, increasing for each year of service over 20 years, to a maximum of 66-2/3% of the average monthly rate of salary assigned to the ranks or positions held by the member during the three years immediately preceding the date of retirement.Tier 1 has no minimum age requirement and provides for unlimited post-employment cost-of-living adjustments (COLA) based on the Consumer Price Index (CPI). Tier 1 members who were active as of July 1, 1982, and who terminated their employment after July 1, 1982, were entitled to a refund of contributions plus Board-approved interest if they did not qualify for a pension or if they waived their pension entitlements.Tier 2 members with 20 or more years of service are entitled to annual pension benefits equal to 40% of their final compensation, increasing for each year of service over 20 years, to a maximum of 70% for 30 years.Tier 2 has no minimum age requirement and provides for unlimited post-employment COLAs based on the CPI.Tier 2 members who were active as of July 1, 1982, and who terminate their employment after July 1, 1982, are entitled to a refund of contributions plus Board-approved interest if they do not qualify for a pension or if they waive their pension entitlements. Tier 3 members must be at least age 50 with 10 or more years of service to be entitled to a service pension. Annual pension benefits are equal to 20% of the monthly average of a members salary during any 12 consecutive months of service as a Plan member (one-year average compensation), increasing for each year of service over 10 years, to a maximum of 70% for 30 years.Tier 3 provides for post-employment COLAs based on the CPI to a maximum of 3% per year.The Los Angeles City Council (City Council) may grant an ad-hoc COLA no more than every three years, subject to certain conditions.Members who terminate their employment are entitled to a refund of contributions plus Board-approved interest if they do not qualify for a pension or if they waive their pension entitlements. Tier 4 members must have at least 20 years of service to be entitled to a service pension.There is no minimumagerequirement.Annualpensionbenefitsareequalto40%oftheirone-yearaverage compensation, increasing for each year of service over 20 years, to a maximum of 70% for 30 years.Tier 4 provides for post-employment COLAs based on the CPI to a maximum of 3% per year.The City Council may grant an ad-hoc COLA no more than every three years, subject to certain conditions.Members who terminatetheiremploymentbeforetheyareeligibleforpensionbenefitsdonotreceivearefundof contributions.Tier 5 members must be at least age 50 with 20 or more years of service to be entitled to a service pension. Annual pension benefits are equal to 50% of their one-year average compensation, increasing for each year of service over 20 years, to a maximum of 90% for 33 years.Tier 5 provides for post-employment COLAs based on the CPI to a maximum of 3% per year.However, any increase in the CPI greater than 3% per year is placed into a COLA bank for use in years in which the increase in CPI is less than 3%.The City Council may also grant an ad-hoc COLA no more than every three years, subject to certain conditions.Members who terminate their employment are entitled to a refund of contributions plus Board-approved interest if they do not qualify for a pension or if they waive their pension entitlements. 17 34 LAFPP ANNUAL REPORT 2024'