Los Angeles Fire and Police Pensions (LAFPP) is pleased to announce the results of the System’s annual actuarial valuation, conducted by the Board’s independent actuary. This yearly review evaluates the System’s assets and liabilities and determines the contribution required from the City, including the Harbor and Airports departments, for the upcoming fiscal year.
Continued Strength and Stability
The actuarial report confirms LAFPP’s strong financial position, with the combined funded ratio for pension and health benefits increasing to 97.6%, up from 97% last year. This marks the eighth consecutive year of improvement for the System.
Key results include:
- Pension benefits: 100.5% funded (up from 99.8%)
- Retiree health benefits: 78.1% funded (slightly down from 78.2%)
- Total unfunded liabilities: Reduced from $955 million to $803 million
These favorable results reflect LAFPP’s long-term stability, disciplined funding practices, and strong investment performance.
Tier 5 Member Contribution Rate Reduction
Because the pension funded ratio now exceeds 100%, active Tier 5 members will receive a reduction in their regular pension contribution rate from 9% to 8%, effective July 1, 2026. The City will pay the additional 1% on behalf of Tier 5 members. The reduced contribution rate will appear beginning with the July 22, 2026 paycheck.
This change applies only to active Tier 5 members—those hired between January 1, 2002, and June 30, 2011, and members of Tiers 2, 3, and 4 who elected to transfer to Tier 5 during the 2002 enrollment period.
City Contribution Rate Adjustment
The City’s combined contribution rate, payable July 15, 2026, will increase slightly from 35.64% to 35.71% of sworn payroll. The increase is driven primarily by updated healthcare trend assumptions—including anticipated rises in Medicare Part B premium reimbursements—and higher-than-expected salary growth among active members. These impacts were partially offset by stronger-than-expected investment returns and lower starting premium and maximum health subsidy amounts.
Explore the Full Report
The full actuarial valuation reports are available on the Financial Reports page of the LAFPP website.