b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024NOTE 14RESTATEMENT OF PRIOR PERIOD FIDUCIARY NET POSITIONEffective July1, 2024, the System adopted GASB Statement No.101, Compensated Absences, which requires the recognition of compensated absences liabilities, such as vacation and sick leave, when earned and expected to be used. As a result, the beginning net position as of June 30, 2024, was restated as follows:June 30, 2024 Change in As PreviouslyAccountingJune 30. 2024PlanReportedPrincipalAs Restated Pension$ 28,148,045,889$(4,129,849)$28,143,916,040 Health Subsidy3,251,841,341(463,455)3,251,377,886 Total$31,399,887,230$(4,593,304)$31,395,293,926These amounts were recorded as Compensated Absences Liability in the Statement of Fiduciary Net Position as of June30, 2024. The System applied the standard prospectively, as historical payroll and leave records prior to the transition from the legacy PAYSR employee payroll system to the Workday platform were not readily available. NOTE 15COMMITMENTS AND CONTINGENCIESTermination RightsAll members who were active on or after July 1, 1982, have a vested right to their past contributions and accrued interest in the event of their termination prior to retirement, except Tier 4 members. The dollar amount of contributions and interest subject to this right were $2,193,601,255 and $2,095,693,051as of June 30, 2025 and 2024, respectively. The City Charter and the Administrative Code provide that member contributions as of June 30 and December 31 of each year earn interest at a rate based on investment earnings, exclusive of gains and losses on principal resulting from sales of securities.Investment CommitmentTheSystemhascommitmentstocontributecapitalforrealestateandalternativeinvestmentsinthe aggregateamountofapproximately$3,621,397,000and$3,599,794,000atJune30,2025and2024, respectively.Retiree Health Subsidy LitigationIn fiscal year 2024-2025, there were two cases before the courts that involved the retiree health insurance premium subsidy program that LAFPP administers (retiree medical subsidy).Both pending actions were brought by the Los Angeles Police Protective League against the Board and the City.The two cases (the LAPPL I Action and the LAPPL II Action) both seek to determine what retiree medical subsidy benefit the additional 2% salary contribution provides members who make the contribution under the unions and Citys 2011 Letter of Agreement (LOA).The union argues that the 2% contribution grants members the ceiling amount under Los Angeles Administrative Code (LAAC)4.1167, meaning either 7% or the medical trend rate for that year, whichever of the two is lower, with no discretion reservedto the LAFPP Board.The City argues that the 2% contribution gives members only the right to get out from under the 2011 Freeze Ordinance and participate in the process that existed under LAAC4.1154(e) 5469SECTION 2FINANCIALS'