b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 1DESCRIPTION OF THE PLANS (Continued)Health Subsidy Plan (Continued)The LAFPP Health Care Fund is intended to qualify for federal tax exemption under Section 115 of the Internal Revenue Code.Effective July 1, 2022, the LAFPP Health Care Fund began receiving contributions from the City designated for retiree health benefits. The existing 401(h) account continues to operate, disbursing funds for health insurance and other benefits provided under Chapter 11.5 of Division 4 of the Los Angeles Administrative Code, until it is fully depleted. On May 2, 2024, the Board adopted a new policy to determine future increases to the maximum non-Medicare Health Subsidy as the lesser of: 1)The average of the annual increase in the Los Angeles Medical Care Index published by the U.S. Bureau of Labor Statistics as of the previous December and 7%; or 2) Themaximumallowableincreasetothenon-MedicareHealthSubsidypursuanttoLosAngeles Administrative Code Section 4.1154 (e).Health Insurance Premium Reimbursement (HIPR) ProgramEffectiveJanuary1,2001,membersoftheSystemareentitledtopost-employmenthealthinsurance premium reimbursements under Section 4.1163 of the Administrative Code. Eligibility requirements for pensioners and qualified surviving spouses/domestic partners are as follows:The pensioner (whether living or deceased) must meet minimum age and service requirements for a health subsidy and may not be enrolled in a Board-approved HMO health plan.Prior to April 6, 2017, the pensioner or qualified surviving spouse/domestic partner were required to reside either outside California or in the State of California but not within a Board-approved health plan zip code service area to participate in the HIPR program. Effective April 6, 2017, this residency restriction was removed allowing eligible pensioners and qualified surviving spouses/domestic partners to reside anywhere and still be eligible to participate in this program.The reimbursement paid is a percentage of the maximum health subsidy. The System also reimburses the basic Medicare Part B premium for any pensioner or qualified surviving spouse/domestic partner eligible to receive a subsidy and enrolled in Medicare Parts A and B.Dental Subsidy PlanMembers who retire from the System with at least 10 years of service, are age 55 years or older, and are enrolledinaBoard-approveddentalplan,areeligiblefordentalsubsidybenefits.Surviving spouses/domestic partners and dependents are not covered by this subsidy.The benefit paid is a percentage of a maximum subsidy for dental insurance based on the lower of the dental subsidy in effect for LACERS or active Safety Members. The maximum monthly subsidy was $42.93 and $43.81 for calendar years 2024 and 2023, respectively.In determining the dental subsidy, members receive 4% for each whole year of service, up to 100% of the maximum.Deferred Retirement Option PlanEffective May 1, 2002, members of the System have the option to enroll in the Deferred Retirement Option Plan (DROP) under Section 4.2100 of the Administrative Code. Members of Tiers 2 and 4 who have at least 25 years of service, and members of Tiers 3, 5, and 6 who have at least 25 years of service and who are at least age 50 are eligible for DROP.19 36 LAFPP ANNUAL REPORT 2024'