b'LETTER OF TRANSMITTALTO THE BOARD OFFIRE AND POLICE PENSION COMMISSIONERSJune 30, 2025Fiscal Year 202425 was another year of significant achievement and strategic advancement for Los Angeles Fire and Police Pensions (LAFPP). Amid an evolving economic environment, we remained focused on our core mission: safeguarding the long-term financial security of our members while managing assets with prudence, transparency, and integrity. This years results reflect the strength of our investment strategy, the dedication of our staff, and the sound governance provided by the Board.FINANCIAL PERFORMANCE AND FUNDING STATUSThe Plan achieved a historic milestone by becoming fully funded for pension benefits at 100.5%, the first time since 2004. Health benefits funding also remains strong at 78.1%, underscoring our commitment to comprehensive member security. Total Plan assets grew to $34 billion, an increase of nearly $3 billion over the prior fiscal year. This growth was drivenbydisciplinedinvestmentmanagementandfavorablemarketconditions.Ourinvestmentprogram delivered an exceptional 11.26% return, surpassing the actuarial assumed rate of 7.00%.Over the past five years, the System has achieved an annualized return of 10.15%, outperforming both our actuarial assumption and the RVK Public Funds median of 8.99%. These results validate the effectiveness of our long-term strategy and reinforce confidence in our ability to meet future obligations.STRATEGIC INITIATIVES AND ACCOMPLISHMENTSEach year, staff develops an Annual Plan aligned with the Three-Year Strategic Plan (20252027) to ensure resources remain focused on priority objectives. Key initiatives for FY 202425 included:Member Engagement and Service ImprovementTo better understand member needs, we conducted comprehensive surveys targeting active members, DROP participants, retirees, and beneficiaries. Feedback focused on MyLAFPP functionality, retirement and DROP processing, communication effectiveness, and overall service quality. Analysis of these responses is guiding process improvements that will enhance the member experience in the years ahead.Emerging Manager OutreachWe advanced our commitment to diversity, equity, and inclusion by expanding engagement with emerging investment managers. Efforts included participation in 15 industry events, 129 meetings, and the launch of a redesigned webpage offering resources across multiple asset classes. A dedicated email channel received 70 inquiries, reflecting strong interest and positioning LAFPP as a leader in inclusive investment practices.SECTION 1INTRODUCTION 5'