b'19671974 Tier 1 (formerly Article XVII) was extensively amended,Tier 1 and 2 amendments enabled the City Council to and a new Tier 2 pension plan (formerly Article XVIII)adopt ordinances providing health insurance premi-was adopted effective January 29, 1967, providing: um subsidy benefits and other programs for eligible 1.A pension equal to 55% of the final monthly salarypensioners.rate at retirement with 25 years of service, plus anadditional3%foreachyearofserviceover1975 25, up to a maximum pension of 70% of salary at retirement with 30 years of service; Amendments to Tiers 1 and 2 allowed cost of living 2.A 2% cap on the annual cost of living adjustmentadjustmentsforService-ConnectedDisability to all member and surviving spouse pensions thatPensions on the July 1 following the date of retirement. were based on length of service; and Certain waiting periods for those eligible to receive this adjustment were eliminated.3.Aminimumpensionof$250permonthtobeThehealthinsurancesubsidyforretiredmembers adjusted each year by the cost of living formula. was paid for the first time this year beginning with the Other changes included the extension of the amorti- April 30, 1975 pension roll. Approximately $61,000 was zation period for the unfunded liabilities to 70 yearsexpended for this purpose.and changes to the investment authority to provide formortgageinvestmentsandpublicimprovement1976 financing.LAFPPbeganprovidinghealthinsurancepremium 1968subsidies to eligible retired members for their depen-dents health insurance coverage.Overtimecompensationwasexcludedfromthe computation of contributions and benefits under Tiers1977 1 and 2.The mandatory retirement age provision of Tier 1 was 1969eliminated effective April 15, 1977.Amendments to Tiers 1 and 2 effective May 2, 1969,1980 appliedcostoflivingadjustmentstoDisabilityand Survivor Pensions. Service Pensioners were allowed toA new Tier 3 Safety Members pension plan, (formerly apply for return-to-active duty under certain condi- Article XXXV, Plan 1) was created effective December tions and restrictions. 8, 1980. The authorized limit for common stock investments was raised to 50% of fund assets.1971 Tiers 1 and 2 were amended effective July 1, 1971 to remove the 2% per year cost of living ceiling from all eligible pensions and pegged increases to the Consum-er Price Index; to increase the minimum pension to $350 per month; to grant pension credit for partial yearsofservice;andtoaddtwoelectedemployee members to the Board of Pension Commissioners.Adam VanGerpen Photo168 LAFPP ANNUAL REPORT 2025'