b'HEALTH INSURANCEPREMIUM SUBSIDY VALUATIONThe health insurance premium subsidy valuation utilizes the same actuarial assumptions as the pension benefits valuation, with the addition of expected medical infla-tionandotherhealthbenefit-specificassumptions. Medicalcostscontinuetoincreaseatafasterpace than general inflation. Assumptions in the June 30, 2025 actuarial valuation included medical trend rate increas-es of 7.00% for non-Medicare premiums and 6.75% for Medicare premiums in Fiscal Year 2025-26. Using the same actuarial methods for pension benefits, the Actuarial Balance Sheet for health insurance premi-um subsidy benefits is shown on page 116. The contri-butions to fund the health insurance premium subsidyMark Lassman Photobenefits are below. Health Insurance PremiumCost Trend Rates(applied to calculate following years premiums)Health Insurance Premium Subsidy Contribution Requirements 2026-27* Fiscal Year Non-Medicare Medicare(as a percentage of Plan member salaries)Tier 1 N/A 2025-2026 7.00% 6.75%Tier 2 8.72% 2026-2027 6.75% 6.50%Tier 3 10.41% 2027-2028 6.50% 6.25%Tier 4 10.47% 2028-2029 6.25% 6.00%Tier 5 10.15% 2029-2030 6.00% 5.75%Tier 6 12.66% 2030-20315.75% 5.50%Harbor Port Police 2031-20325.50% 5.25%Tier 5 5.25% 2032-2033 5.25% 5.00%Harbor Port Police 6.25% 20332034 5.00% 4.75%Tier 6 2034-20354.75% 4.50%Airport PoliceTier 6 6.79% 2035-2036 4.50% 4.50%* Contributions to be made on July 15, 2026. Rates do notinclude amounts allocated for administrative expenses. 2036-2037 4.50% 4.50%2037-2038 4.50% 4.50%2038-2039 4.50% 4.50%2039 and4.50% 4.50%laterSECTION 5ACTUARIAL 113'