b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM REQUIRED SUPPLMENTARY INFORMATION PENSION PLAN NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTIONS (Unaudited)Methods and assumptions used to establish actuarially determined contribution (ADC) rates:The assumptions used in establishing the ADC for the year ended June 30, 2024 were based on the June 30, 2022 funding valuation. Valuation DateActuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.Actuarial Cost MethodEntry Age Actuarial Cost Method.Amortization MethodFor Tier 1, level dollar amortization is used with last period ending on June 30, 2037. For Tiers 2, 3 and 4, level percent of payroll amortization with multiple layersisusedasapercentoftotalvaluationpayrollfromtherespective employer (i.e., City). For Tiers 5 and 6, level percent of payroll with multiple layersisusedasapercentofcombinedpayrollforthesetiersfromthe respective employer (i.e., City, Harbor Department, or Airport Department). Remaining Amortization PeriodAnySurplusisamortizedoveranopen(non-decreasing)30-yearperiod. Actuarial gains/losses are amortized over 20 years. Assumption changes are amortized over 20 years. Plan changes are amortized over 15 years. Asset Valuation MethodThe market value of assets less unrecognized returns. Unrecognized return is equal to the difference between the actual and the expected return on a market value basis and is recognized over a seven-year period. The actuarial value of assets is further adjusted, if necessary, to be within 40% of the market value of assets. Actuarial Assumptions: June 30, 2022 Valuation Investment Rate of Return7.00%, net of investment expenses Inflation Rate2.75%Administrative Expenses:Out of the total 1.40% of payroll in administrative expense, 1.29% of payroll payable biweekly is allocated to the Pension Plan. This is equal to 1.25% of payroll payable at beginning of the year. Real Across-the-Board Salary0.50% Projected Salary IncreasesRanges from 4.15% to 12.25% based on years of service Cost of Living Adjustments2.75% of retirement income for all Tiers. For Tier 5 and Tier 6 members who have COLA banks, we assume they receive 3.0% COLA increases until their COLA banks are exhausted and 2.75% thereafter. See accompanying notes to required schedule and accompanying independent auditors report.60 SECTION 2 Financials 77'