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Indian River County, Florida <br /> Notes To Financial Statements <br /> Year Ended September 30, 2015 <br /> NOTE 15 -RETIREMENT PLAN - Florida Retirement System (FRS) - Continued <br /> Pension Plan- Continued <br /> The deferred outflows of resources related to the pension plan totaling $1,966,730 resulting from <br /> County contributions subsequent to the measurement date, will be recognized as a reduction of the net <br /> pension liability in the year ended September 30, 2016. Other amounts reported as deferred outflows of <br /> resources and deferred inflows of resources related to pensions will be recognized in pension expense <br /> as follows: <br /> Amount <br /> Fiscal Year Ending September 30: Recognized <br /> 2016. $ (5,737,628) <br /> 2017 (5,737,628) <br /> 2018 (5,737,628) <br /> 2019 8,573,467 <br /> 2020 1,648,744 <br /> Thereafter 395,698 <br /> Total X6,594,975)_ <br /> Actuarial Assumptions: The total pension liability in the July 1, 2015. actuarial valuation was <br /> determined using the following actuarial assumption, applied to all periods included in the <br /> measurement: <br /> Valuation date: July 1, 2015 <br /> Measurement date: June 30, 2015 <br /> Discount rate: 7.65% <br /> Long-term expected rate of return: 7.65%, net of pension plan investment expense <br /> Inflation: 2.60% <br /> Salary increase; 3.25%, including inflation <br /> Mortality Generational RP-2000 with Projections Scale BB <br /> Actuarial cost method Individual Entry Age <br /> The actuarial assumptions that determined the total pension liability used in the July 1, 2015 valuation <br /> were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, <br /> 2013. <br /> The changes in actuarial assumptions for demographic and economic assumptions (all of the above <br /> assumptions except actuarial cost method) correspond to changes in the same assumptions in the FRS <br /> actuarial study for funding purposes. These changes were approved by the 2014 and 2015 FRS <br /> Actuarial Assumptions Conferences. The changes are explained as follows: <br /> • The discount rate and long-term expected rate of return, net of investment expense were both <br /> reduced since the prior actuarial valuation by 0.10 percent from 7.75 percent to 7.65 percent to <br /> increase the likelihood that FRS will meet or exceed its assumed investment return in future <br /> years. <br /> 95 <br />