b"LOS ANGELES FIRE AND POLICE PENSION SYSTEM MANAGEMENTS DISCUSSION AND ANALYSIS (Unaudited) Health Subsidy Plan (Continued)Changes in Fiduciary Net Position (Continued)Restatement of Beginning of Net PositionEffective July 1, 2024, the System adopted GASB Statement No. 101, Compensated Absences. This new accounting standard requires the recognition of compensated absences liabilities, such as vacation and sick leave, when the leave is earned and expected to be used. Implementation of the new standard resulted in a restatement of $0.46 million of the beginning net position of the Health Subsidy Plan .The System applied the standard prospectively, as historical payroll and personal data were not readily available due to the City'stransitionfromthelegacyPAYSRsystemtotheWorkdayplatform.(SeeNote14forfurther disclosure.)Condensed Statement of Changes in Fiduciary Net Position($ in Thousands)2024 2023 Change % ChangeAdditionsContributions $164,560 $186,418 $ (21,858) -11.7%Net Investment Income 287,438 214,718 72,720 33.9%Other 7046 24 52.2%Total Additions 452,068 401,182 50,886 12.7%DeductionsBenefits Payment 164,341 153,91810,423 6.8%Administrative Expenses2,7012,572 129 5.0%Total Deductions 167,042 156,490 10,552 6.7%Net Increase285,026 244,692 40,334 16.5%Net Position, Beginning of Year2,966,8152,722,123 244,692 9.0%Net Position, End of Year $ 3,251,841 $ 2,966,815 $285,026 9.6%Additions to Fiduciary Net PositionTotal additions to net position increased by $50.89 million compared to fiscal year 2023. This is due primarily to the net appreciation in the fair value of investments which increased by $72.72 million or 33.9% over fiscal year 2023. For fiscal year 2024, net investment income was $287.44 million compared to $214.72 million in fiscal year 2023. 1328 LAFPP ANNUAL REPORT 2025"