b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 6NET OTHER POST-EMPLOYMENT BENEFITS LIABILITY (Continued)Actuarial Assumptions (Continued) Cost of Living Adjustments2.75% of Tiers 1-6 retirement income.(COLAs) MortalityHealthy:Pub-2010SafetyHealthyRetireeHeadcount-Weighted Above-Median Mortality Table increased by 5% for males and unadjusted for females, projected generationally with thetwo-dimensionalmortalityimprovementscaleMP-2021.Disabled:Pub-2010SafetyDisabledRetireeHeadcount-Weighted MortalityTableprojectedgenerationallywiththetwo-dimensional mortality improvement scale MP-2021.Beneficiary:NotinPayStatusasofValuation:Pub-2010General HealthyRetireeHeadcount-WeightedAbove-Median Mortality Table increased by 5% for males and females, projectedgenerationallywiththetwo-dimensional mortality improvement scale MP-2021.In Pay Status as of Valuation: Pub-2010 General Healthy RetireeHeadcount-WeightedAbove-MedianMortality Table increased by 5% for males and 10% for females, projectedgenerationallywiththetwo-dimensional mortality improvement scale MP-2021.Investment Return RateThe long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of inflation and, beginning with June 30, 2023, any applicable investment management expenses) are developed for each major asset class. These returns are combined to produce the long-term expected arithmetic rate of return for the portfolio by weighting the expected arithmetic real rates of return by the target asset allocation percentage, adding expected inflation, and subtracting the expected investment expenses (beginning with June 30, 2023, only investment consulting fees, custodian fees and other miscellaneous investment expenses) and a risk margin. Beginning with June 30, 2023, this portfolio return is fully adjusted to an expected geometric real rate of return for the portfolio.The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation, are shown in the following table. These values were used in the derivation of the long-term expected investment rate of return assumption in the actuarial valuations as of June 30, 2024 and 2023. This information may change every three years based on the results of an actuarial experience study.31 48 LAFPP ANNUAL REPORT 2024'