b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024NOTE 5NET PENSION LIABILITY (Continued)Actuarial AssumptionsThe TPL as of June 30, 2025 and June 30, 2024 that were measured by the actuarial valuations as of June 30, 2024 and June 30, 2023, respectively, used the following actuarial assumptions, which were based on the July 1, 2019 through June 30, 2022 Experience Study Report dated May 10, 2023, and were applied to all periods included in the measurement as of June 30, 2025 and 2024:Inflation Rate2.50% Projected Salary IncreaseRangesfrom3.90%to12.00%basedonyearsof service, including inflation. Investment Return Rate7.00%,includinginflationbutnetofpensionplan investment expenses. Real Across-the-Board Salary Increase0.50% Cost of Living Adjustments (COLAs)2.75% of Tiers 1 - 6 retirement income. MortalityHealthy:Pub-2010 Safety Healthy Retiree Amount-Weighted Above-Median Mortality Table increased by 5% for malesandunadjustedforfemales,projected generationallywiththetwo-dimensionalmortality improvement scale MP-2021.Disabled:Pub-2010 Safety Disabled Retiree Amount-Weighted Mortality Table projected generationally with the two-dimensional mortality improvement scale MP-2021.Beneficiary:Not in Pay Status as of Valuation: Pub-2010 General HealthyRetireeAmount-WeightedAbove-Median MortalityTableincreasedby5%formalesand females,projectedgenerationallywiththetwo-dimensional mortality improvement scale MP-2021.InPayStatusasofValuation:Pub-2010General HealthyRetireeAmount-WeightedAbove-Median Mortality Table increased by 5% for males and 10% forfemales,projectedgenerationallywiththetwo-dimensional mortality improvement scale MP-2021. Investment Return RateThe long-term expected rate of return on Pension Plan investments was determined using a building-block method in which expected arithmetic real rates of return (expected returns, net of inflation and, beginning with June 30, 2023, any applicable investment management expenses) are developed for each major asset class. These returns are combined to produce the long-term expected arithmetic rate of return by weighting the expected arithmetic real rates of return by the target asset allocation percentage, adding expected 44 LAFPP ANNUAL REPORT 2025 29'