b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 NOTE 4FUNDING POLICY AND CONTRIBUTION INFORMATION As a condition of participation, members are required to contribute a percentage of their salaries to the System.Tier 1 members were required by the City Charter to contribute 6% of salary.The Systems actuary recommended that Tier 2 members contribute 1% in addition to the 6% rate provided in the City Charter, for a total of 7% of salary.Tiers 3 and 4 members are required to contribute 8% of salary.Tier 5 members are required to contribute 9% of salary.However, the City shall pay 1% of the Tier 5 required contribution rate contingent on the System remaining at least 100% actuarially funded for pension benefits. Since July 1, 2006, Tier 5 members have been required to contribute 9% of salary because the System has remained less than 100% actuarially funded for pension benefits as determined by the Systems actuary. As of the June 30, 2025 valuation, the System was again more than 100% actuarially funded for pension benefits. Accordingly, the City will be required to pay 1% of the Tier 5 member required contribution rate beginning on July 1, 2026. Tier 6 members are required to contribute 9% of salary for regular pension contributions.Tier 6 members are also required to make an additional pension contribution of 2% of salary to support the Citys ability to fund retiree health benefits. Airport police officers and municipal police officers who transferred to Tier 6 from LACERS, as well as eligible sworn officers and Park Rangers electing to transfer under Measure FF, continue contributing at their applicable LACERS contribution rates until retirement.The City Charter specifies that the City will make the following contributions each year:A. An amount equal to the Citys share of defined entry age normal costs.B. For members of Tiers 1 and 2, a dollar amount or percentage necessary to amortize the unfundedliability of the System over a 70-year period, beginning with the fiscal year commencing July 1, 1967.Under Tiers 3, 4, and 5, any unfunded liability resulting from plan amendments shall be amortizedover a 25-year period, and actuarial experience gains and losses shall be amortized over a 20-yearperiod.For Tier 6, the unfunded liabilities shall be funded in accordance with the actuarial fundingmethod adopted by the Board upon the advice of the consulting actuary.Charter Amendment G,effective April 8, 2011, now provides that with the advice of the consulting actuary, the Board shallestablish amortization policies for unfunded actuarial accrued liabilities and surpluses for all Tiers.C. An amount to provide for the Health Subsidy Plan.Accordingly, the Citys contributions as determined by the Systems actuary for items A, B, and C above, net of early payment discount, for the fiscal years ended June 30, 2025 and 2024, were as follows ($ in thousands):26SECTION 2FINANCIALS 41'