b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 1DESCRIPTION OF THE PLANS (Continued)Deferred Retirement Option Plan (Continued)Members who enroll continue to work and receive their active salary for up to five years.Enrolled members continue to contribute to the System until they have completed the maximum number of years required for their tier but cease to earn additional retirement service and salary credits.Monthly pension benefits that would have been paid to enrolled members are credited to their DROP accounts.DROP account balances earn interest at an annual rate of 5%. EffectiveFebruary1,2019,formemberswhoenrollonorafterthisdate,participationinDROPis suspended for any calendar month in which a participant does not spend at least 112 hours on active duty status.However, if a participant sustains a serious injury on duty and is admitted to the hospital for at least three consecutive days as a result of the injury, their participation will not be suspended during the first 12 calendar months following the date of injury. If a members DROP participation is suspended, he/she is eligible to participate in DROP for a maximum of 30 additional months beyond his/her original five-year participation period.The participation period can only be extended for as many months as the members participation was suspended, and no interest is credited to the members DROP account following the initial five-year participation period.Once the DROP participation period ends, enrolled members must terminate active employment.They then receive the proceeds from their DROP account and a monthly benefit based on their service and salary at the beginning date of their DROP participation, plus applicable COLAs.At June 30, 2024 and 2023, 1,300 and 1,496 pensioners, respectively, were enrolled in the DROP program, with total estimated values of the DROP accounts of approximately $283,070,509 and $361,085,473, respectively.Two Percent Opt-InOn July 15, 2011, the City Council adopted an ordinance to permanently freeze the retiree health subsidies and reimbursements for members of the System who retired or entered DROP on or after July 15, 2011.This ordinance added language to the Los Angeles Administrative Code to freeze the maximum monthly non-Medicare subsidy at the July 1, 2011 rate of $1,097.41 per month, and freeze the maximum monthly Medicare subsidy at the January 1, 2011 rate of $480.41 per month.However, the ordinance also provided that members may make an irrevocable election to contribute towards vesting increases in the maximum health subsidy, as allowed by an applicable Memorandum of Understanding.Members who opted-in to make the additional two-percent pension contributions are entitled to the current maximum health subsidy benefit and all future subsidy increases once they retire and become eligible to receive a subsidy.The opt-in period for the majority of the members began August 15, 2011, and closed September 29, 2011.SINCETHEPENSIONANDHEALTHSUBSIDYPLANSINCLUDEDETAILEDPROVISIONS, MEMBERS SHOULD REFER TO THE LEGAL TEXT OF THE CITY CHARTER AND LOS ANGELES CITY ADMINISTRATIVE CODE FOR MORE COMPLETE INFORMATION. 20 SECTION 2 Financials 37'