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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2020 <br />NOTE 13 - RETIREMENT PLAN - Continued <br />Pension Plan - Continued <br />Actuarial Assumptions: The total pension liability in the July 1, 2020 actuarial valuation <br />was determined using the following actuarial assumptions, applied to all periods included in <br />the measurement: <br />Valuation date: <br />Measurement date: <br />Discount rate: <br />Long-term expected rate of return: <br />Inflation: <br />Salary increase: <br />Mortality: <br />Actuarial cost method: <br />July 1, 2020 <br />June 30, 2020 <br />6.80% <br />6.80%, net of pension plan investment <br />expense, including inflation <br />2.40% <br />3.25%, including inflation <br />PUB -2010 base table, projected <br />generationally with Scale MP -2018 <br />Individual Entry Age <br />The actuarial assumptions that determined the total pension liability used in the July <br />1,2020 valuation were based on the results of an actuarial experience study for the period <br />July 1, 2013 through June 30, 2018. <br />The following changes in actuarial assumptions occurred in 2020: <br />• The long-term expected rate of return was decreased from 6.90% to 6.80%. <br />Long -Term Expected Rate of Return: The long-term expected rate of return on pension <br />plan investments are not based on historical returns, but instead are based on a <br />forward-looking capital market economic model. The allocation policy's description of each <br />class was used to map the target allocation to the asset classes shown below. Each asset <br />class assumption is based upon a consistent set of underlying assumptions and includes an <br />adjustment for the inflation assumption. The target allocation and best estimates of <br />arithmetic and geometric real rates of return for each major asset class are summarized in <br />the following table: <br />88 <br />