b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 15RISKS AND UNCERTAINTIES (Continued)As of the date of this report, investment markets continue to experience increased volatility due to high inflation rates globally, actions by central banks to control inflation via higher interest rates, geopolitical tensions, and investor concerns over a looming recession in the U.S. As a result, the Plans investment portfoliohasexperiencedvolatilityinfairmarketvalue.However,becausethevaluesofthePlans investments have and will fluctuate in response to changing market conditions, the amount of gains or losses that will be recognized in subsequent periods, if any, cannot be determined. The value of the Plans investments has a direct impact on its funded status. As a result of any declines in market value the Plan Sponsor may need to make greater cash contributions to fund the Plan in the future. However, the actual impact, if any, on future required contributions or Plan liquidity cannot be determined at this time. NOTE 16SUBSEQUENT EVENTSSubsequenteventshavebeenevaluatedthroughNovember27,2024,whichisthedatethefinancial statements were available to be issued. Besides those mentioned below, there were no further subsequent events to disclose.Surplus Management PolicyOn August 1, 2024, the Board approved a surplus management policy to take effect once the Retirement or OPEBPlanbecomesfullyfunded.ThispolicyallowsfortheUnfundedActuarialAccruedLiability (UAAL) contribution rate, as determined in the prior valuation, to phase out linearly to 0.00% over a designated glide path period, as recommended by the actuary and adopted by the Board.The glide path is designed to maintain stable contribution rates unless the Plans funded status falls below 100%. In such cases, adjustments would be made to ensure adequate funding. The policy also details specific criteria for contribution adjustments and credits based on actuarial projections, including provisions for maintaining smooth contribution levels during the glide path phase-out period.Measure FFLos Angeles Fire and Police Pensions; Peace Officers Pension ChangesOn November 5, 2024, Measure FF was included on the ballot. If the measure passes, it will amend the City Charter to allow all sworn peace officers (Los Angeles Police Department, Airport Police, Harbor Police and Recreation and Parks Departments peace officers) who are currently part of the Los Angeles City Employees Retirement System (LACERS) to transfer into Tier 6 of LAFPP. Tier 6 serves as the pension plan for LAFPP members. 54 SECTION 2 Financials 71'