b'JUNE 2025PENSIONPERSPECTIVESLos Angeles Fire & Police Pensions Retired/DROP Member NewsletterINSIDE 2025 COST OF LIVINGADJUSTMENT IS 3.1% Social SecurityTheCost-of-LivingAdjustment(COLA)is3.1%for2025andwas 06 Fairness Act approved by the Board of Fire and Police Pension Commissioners on April 3, 2025. The COLA will be effective July 1, 2025, and all eligible pensioners and Deferred Retirement Option Plan (DROP) participants will receive an increase beginning with the pension payment/DROP account deposit dated July 31, 2025. 07 Tax WithholdingTiers 1 & 2 retirees and beneficiaries will receive 3.1%. Tier 2 DROP ElectionsHowparticipants will receive 3.0%.To Make Updates Tiers 3 & 4 retirees, beneficiaries, and DROP participants will receive up to 3.0%. Tiers 5 & 6 retirees, beneficiaries, and DROP participants will receive up to 3.0%, and the remaining 0.1% will be stored in the COLA bank*, which can be applied in future years when the Consumer 08 Fraud Prevention:Price Index (CPI) is below 3%. How to Protect For new pensioners and DROP entrants in Tiers 3-6, the first years Your OnlineCOLA is prorated based on the number of complete months since the MyLAFPPpension effective date. Therefore, these members may not receive the Account full 3.0% increase.Continued on page 3JUNE 2025 JUNE 2025 1'