b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 4FUNDING POLICY AND CONTRIBUTION INFORMATIONAs a condition of participation, members are required to contribute a percentage of their salaries to the System.Tier 1 members were required by the City Charter to contribute 6% of salary.The Systems actuary recommended that Tier 2 members contribute 1% in addition to the 6% rate provided in the City Charter, for a total of 7% of salary.Tiers 3 and 4 members are required to contribute 8% of salary.Tier 5 members are required to contribute 9% of salary.However, the City shall pay 1% of the Tier 5 required contribution rate contingent on the System remaining at least 100% actuarially funded for pension benefits.Since July 1, 2006, Tier 5 members have been required to contribute 9% of salary because the System has remained less than 100% actuarially funded for pension benefits as determined by the Systems actuary.Tier 6 members are required to contribute 9% of salary for regular pension contributions.Tier 6 members are also required to make an additional pension contribution of 2% of salary to support the Citys ability tofund retiree health benefits. Airport police officers and municipal police officers who transferred to Tier 6 from LACERS are required to contribute to the System at their same LACERS contribution rates until they retire.The City Charter specifies that the City will make the following contributions each year: A.An amount equal to the Citys share of defined entry age normal costs. B.For members of Tiers 1 and 2, a dollar amount or percentage necessary to amortize the unfunded liability of the System over a 70-year period, beginning with the fiscal year commencing July 1, 1967. Under Tiers 3, 4, and 5, any unfunded liability resulting from plan amendments shall be amortized over a 25-year period, and actuarial experience gains and losses shall be amortized over a 20-year period.For Tier 6, the unfunded liabilities shall be funded in accordance with the actuarial funding method adopted by the Board upon the advice of the consulting actuary.Charter Amendment G, effective April 8, 2011, now provides that with the advice of the consulting actuary, the Board shall establish amortization policies for unfunded actuarial accrued liabilities and surpluses for all Tiers.C.An amount to provide for the Health Subsidy Plan. Accordingly, the Citys contributions as determined by the Systems actuary for items A, B, and C above, net of early payment discount, for the fiscal years ended June 30, 2024 and 2023, were as follows ($ in thousands): 25 42 LAFPP ANNUAL REPORT 2024'