b'ACTUARIAL The purpose of an actuarial valuation is to determine the funding progress and the contribution requirements of a retirement plan at a specific point in time. The System conducts two studies annually for the fiscal year ending June 30: one study evaluates the ratio of assets to liabilities for pension benefits for members and their beneficiaries; the other study evaluates the same ratio for health insurance premium subsidy benefits. The studies establish the funding status of the System and determine the annual contribution requirements to fund the benefits.FUNDING STATUSThe funded status of the System is examined over aindividualsalaryincreasesforactivemembersthat span of several years to determine if progress is made.were greater than expected. When the assets equal or exceed the liabilities, theDetails on the determination of the actuarial value of Plan is funded at 100% or more and is considered fullyassets for the year are available in Section 2 of the June funded; otherwise, it is underfunded.30, 2025 Actuarial Valuation and Review of Retirement PENSION BENEFITS Benefits.A 10-year history of the Systems funded status forHEALTHINSURANCEPREMIUMSUBSIDY pensionbenefitsisprovidedbelow.AlthoughtheBENEFITSfunding ratios decreased for several years followingTheSystembeganpre-fundinghealthinsurance the investment losses sustained in the 2008-2009premium subsidy benefits in 1989. A 10-year history Great Recession, the results of the actuarial studiesof the Systems funded status for health benefits is sincethatperiodreflectimproved,stablefundingincluded in the chart below. As of June 30, 2025, the progress. funding status of health subsidy benefits decreased As of June 30, 2025, the funded status for pensionfrom 78.2% to 78.1%, a decrease of 0.1%, primarily due benefits is 100.5%, an increase of 0.7% from the priorto an update to medical trend assumptions, slightly year. The increase in the funded ratio was primarilyoffset by a higher than expected return on the valua-duetoaninvestmentreturnonthevaluationvaluetion value of assets (after smoothing). Details on the (i.e., after asset smoothing) greater than the assumedfactors which contributed to the decreased funding rate of 7.00% used in the June 30, 2024 valuation andstatus are available in Section 2 of the June 30, 2025 scheduled contributions to pay down the unfundedActuarial Valuation and Review of Other Postemploy-actuarialaccruedliability(UAAL),partiallyoffsetbyment Benefits. Funded Status Pension and Health BenefitsFunded StatusPension and Health Benets120.0%90.0%93.9% 91.5% 92.9% 93.6% 93.2% 96.8% 98.0% 99.5% 99.8% 100.5%74.3% 77.7% 78.2% 78.1%60.0%48.1% 49.3% 51.3% 56.2% 59.7% 64.7%30.0%0.0%15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25Pension Health108 LAFPP ANNUAL REPORT 2025'