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<br />-41- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />Deferred outflows of resources reported $54,523 related to pensions resulting from city contributions <br />subsequent to the measurement date that will be recognized as a reduction of the net pension liability <br />in the year ending December 31, 2018. Other amounts reported as deferred outflows and deferred <br />inflows of resources related to pensions will be recognized in pension expense as follows: <br /> <br />Pension <br />Year Ending Expense <br />December 31,Amount <br />2018 (46,712)$ <br />2019 20,213$ <br />2020 (92,059)$ <br />2021 (62,328)$ <br /> <br />E. Actuarial Assumptions <br /> <br />The total pension liability in the June 30, 2017 actuarial valuation was determined using the following <br />actuarial assumptions: <br /> <br />Inflation 2.50% per year <br />Active member payroll growth 3.25% per year <br />Investment rate of return 7.50% <br /> <br />Salary increases were based on a service-related table. Mortality rates for active members, retirees, <br />survivors, and disabilitants were based on RP-2014 tables for all plans for males or females, as <br />appropriate, with slight adjustments to fit the PERA’s experience. Cost of living benefit increases for <br />retirees are assumed to be 1.0 percent per year for the GERF through 2044, and then 2.5 percent <br />thereafter. <br /> <br />Actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial <br />experience studies. The most recent four-year experience study in the GERF was completed in 2015. <br /> <br />The following changes in actuarial assumptions occurred in 2017: <br /> <br />GERF <br /> <br />• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members <br />and 60.0 percent for vested and nonvested deferred members. The revised CSA loads are now <br />zero percent for active member liability, 15.0 percent for vested deferred member liability, and <br />3.0 percent for nonvested deferred member liability. <br /> <br />• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all <br />years, to 1.0 percent per year through 2044, and 2.5 percent per year thereafter.