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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2016 NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued Pension Plan - Continued The deferred outflows of resources related to the pension plan totaling $2,443,713 resulting from County contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ending September 30: 2017. 2018 2019 2020 2021. Thereafter Total Amount Recognized $ 4,675,583 4,675,583 13,518,534 9,215,642 1,355,241 440,454 33,881,037 Actuarial Assumptions: The total pension liability in the July 1, 2016.actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Valuation date: Measurement date: Discount rate: Long-term expected rate of return: Inflation: Salary increase: Mortality: Actuarial cost method: July 1, 2016 June 30, 2016 7.60% 7.60%, net of pension plan investment expense 2.60% 3.25%, including inflation Generational RP -2000 with Projections Scale BB Individual Entry Age The actuarial assumptions that determined the total pension liability used in the July 1, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, 2013. The actuarial assumptions for demographic and economic assumptions were adjusted to those used in the previous valuation. Assumptions in the FRS actuarial study for funding purposes were also adjusted. These changes were approved by the 2016 FRS Actuarial Assumptions Conferences. The changes are explained as follows: • The discount rate and long-term expected rate of return, net of investment expense were both reduced since the prior actuarial valuation by 0.05 percent from 7.65 percent to 7.60 percent to increase the likelihood that FRS will meet or exceed its assumed investment return in future years. 87