b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024NOTE 6NET OTHER POST-EMPLOYMENT BENEFITS LIABILITY (Continued)Discount RateThe discount rate used to measure the TOL was 7.00% as of June 30, 2025 and June 30, 2024.The projection of cash flows used to determine the discount rate assumed employer contributions will be made at rates equal to the actuarially determined contribution rates for each tier. For this purpose, only employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future members and their beneficiaries are not included. Based on those assumptions, the Plan Fiduciary Net Position was projected to be available to make all projected future benefits payments for current plan members. Therefore, the long-term expected rateofreturnonOPEB planinvestmentswasappliedtoallperiodsofprojectedbenefitpaymentsto determine the TOL as of both June 30, 2025 and June 30, 2024. Sensitivity AnalysisThe following presents the NOL of the System as of June 30, 2025 and 2024, calculated using the discount rate of 7.00%, as well as what the Systems NOL would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:1% Decrease Current Discount 1% Increase(6.00%) Rate (7.00%) (8.00%)NOL as of June 30, 2025 $1,448,434,861 $ 782,977,967 $ 246,606,786NOL as of June 30, 2024 $1,422,652,887 $ 814,874,572 $ 324,035,596 Sensitivity Analysis to Changes in Trend RateThe following presents the NOL of the Health Subsidy Plan of the System as of June 30, 2025 and 2024, as well as what the Systems NOL would be if it were calculated using a trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: 1% Decrease Current Trend 1% IncreaseNOL as of June 30, 2025 $ 227,496,535 $ 782,977,967 $1,485,162,289NOL as of June 30, 2024 $ 305,891,045 $ 814,874,572 $1,456,287,98234SECTION 2FINANCIALS 49'