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<br />-40- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />The following changes in actuarial assumptions and plan provisions occurred in 2020: <br /> <br />GERF – CHANGES IN ACTUARIAL ASSUMPTIONS <br /> <br />• The price inflation assumption was decreased from 2.50 percent to 2.25 percent. <br /> <br />• The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. <br /> <br />• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience <br />study. The net effect is assumed rates that average 0.25 percent less than previous rates. <br /> <br />• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience <br />study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 <br />and early retirements. <br /> <br />• Assumed rates of termination were changed as recommended in the June 30, 2019 experience <br />study. The new rates are based on service and are generally lower than the previous rates for <br />years two through five, and slightly higher thereafter. <br /> <br />• Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. <br />The change results in fewer predicted disability retirements for males and females. <br /> <br />• The base mortality table for healthy annuitants and employees was changed from the <br />RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality <br />table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table <br />to the PUB-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. <br /> <br />• The mortality improvement scale was changed from MP-2018 to MP-2019. <br /> <br />• The assumed spouse age difference was changed from two years older for females to one year <br />older. <br /> <br />• The assumed number of married male new retirees electing the 100.00 percent joint and survivor <br />option changed from 35.00 percent to 45.00 percent. The assumed number of married female new <br />retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to <br />30.00 percent. The corresponding number of married new retirees electing the life annuity option <br />was adjusted accordingly. <br /> <br />GERF – CHANGES IN PLAN PROVISIONS <br /> <br />• Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, <br />2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for <br />privatizations occurring after June 30, 2020.